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Printed Page 180, Jan. 11
| Printed Page 200, Jan. 16
| Referred to Dorchester Delegation.
On motion of Rep. QUINN, with unanimous consent, the following was taken up for immediate consideration.
H. 4446 -- Invitations and Memorial Resolutions Committee: A CONCURRENT RESOLUTION INVITING THE HONORABLE DANIEL A. LUDWIG OF MINNESOTA, NATIONAL COMMANDER OF THE AMERICAN LEGION, TO ADDRESS THE GENERAL ASSEMBLY IN JOINT SESSION AT 12:00 NOON ON WEDNESDAY, MARCH 20, 1996.
Be it resolved by the House of Representatives, the Senate concurring:
That the Honorable Daniel A. Ludwig of the great state of Minnesota, National Commander of the American Legion, is invited to address the General Assembly in joint session at 12:00 Noon on Wednesday, March 20, 1996.
The question then recurred to the adoption of the Concurrent Resolution.
Rep. SHEHEEN demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Allison Anderson Askins Bailey Baxley Brown, H. Brown, J. Byrd Canty Carnell Cato Cave Chamblee Clyburn Cotty
Cromer Dantzler Davenport Delleney Easterday Elliott Felder Fleming Gamble Harrell Harris, J. Harris, P. Harrison Haskins Hines, J. Hines, M. Hodges Howard Huff Hutson Inabinett Jennings Keegan Kelley Kinon Kirsh Klauber Knotts Koon Law Lee Limehouse Lloyd Marchbanks Mason McAbee McKay McMahand Meacham Neilson Quinn Rhoad Rice Riser Robinson Sandifer Scott Seithel Simrill Smith, R. Spearman Stille Stoddard Stuart Thomas Tripp Tucker Vaughn Waldrop Wells Wilder Wilkes Wilkins Williams Wofford Worley Young Young-Brickell
Those who voted in the negative are:
Herdklotz Jaskwhich Keyserling Sharpe Sheheen
So, the Concurrent Resolution was adopted and ordered sent to the Senate.
The roll call of the House of Representatives was taken resulting as follows.
Allison Anderson Askins Bailey Baxley Breeland Brown, H. Brown, J. Brown, T.
Byrd Canty Carnell Cato Cave Chamblee Clyburn Cobb-Hunter Cooper Cotty Cromer Dantzler Davenport Delleney Easterday Elliott Felder Fleming Fulmer Gamble Govan Harrell Harris, J. Harris, P. Harrison Haskins Herdklotz Hines, J. Hines, M. Hodges Howard Huff Hutson Inabinett Jaskwhich Jennings Keegan Kelley Kennedy Keyserling Kinon Kirsh Klauber Knotts Koon Lanford Law Lee Limehouse Littlejohn Lloyd Marchbanks Martin Mason McAbee McCraw McKay McMahand McTeer Meacham Neal Neilson Quinn Rice Riser Robinson Sandifer Scott Seithel Sheheen Shissias Simrill Smith, D. Smith, R. Spearman Stille Stoddard Stuart Thomas Tripp Trotter Tucker Vaughn Waldrop Wells Whatley Whipper, L. Whipper, S. White Wilder Wilkes Wilkins Williams Witherspoon Wofford Worley Wright Young Young-BrickellSTATEMENT OF ATTENDANCE I came in after the roll call and was present for the Session on Tuesday, January 16. Robert E. Walker Bessie Moody-Lawrence Olin R. Phillips Timothy F. Rogers
Ronald P. Townsend Grady A. Brown C. Alex Harvin III William D. Boan Joseph T. McElveen, Jr.
The SPEAKER granted Reps. LIMBAUGH and CAIN a leave of absence for the day.
Announcement was made that Dr. Gerald Harmon of Georgetown is the Doctor of the Day for the General Assembly.
The following Bill was read the third time, passed and, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.
S. 906 -- Senator Land: A BILL TO PROVIDE THAT THE SUPERINTENDENT OF ANY SCHOOL DISTRICT LOCATED IN CLARENDON COUNTY SERVING AS AN EX OFFICIO MEMBER OF A VOCATIONAL SCHOOL BOARD SHALL SERVE AS A VOTING MEMBER OF SUCH BOARD.
The following Bill was taken up.
H. 4397 -- Reps. Wilkins, Huff, Sharpe, H. Brown, D. Smith, Cato, Townsend, Haskins, J. Brown, Littlejohn, Herdklotz, Hutson, J. Young, Jennings, Simrill, Bailey, Harrell, Allison, Law, Walker, Gamble and Richardson: A BILL ENACTING THE ECONOMIC DEVELOPMENT INDUSTRIAL CLUSTER ACT OF 1996, BY AMENDING THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-6-3480, 38-7-190, AND 12-10-45 SO AS TO ALLOW CERTAIN INCOME TAX CREDITS TO BE APPLIED AGAINST INSURANCE PREMIUM TAX LIABILITIES AND VICE VERSA AND TO PROVIDE FOR THE DESIGNATION OF ADDITIONAL ENTERPRISE ZONES IN THE CASE OF PROJECTS OF QUALIFYING TIRE MANUFACTURERS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT,
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name P:\amend\GJK\22199HTC.96).
Amend the bill, as and if amended, by striking Sections 3 and 4 and inserting:
/SECTION 3. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3480. (A) Notwithstanding any other provision of law:
(1) Any credits under Title 38 may be applied against any taxes imposed under this chapter or license fees imposed under Chapter 20 of this title.
(3) Any limitations upon the total amount of liability for taxes or license fees that can be reduced by the use of a credit must be computed before any other credit is used to reduce any tax or license fee liability under this chapter or Chapter 20 of this title. Subject to item (4), the taxpayer may apply any credits arising under this chapter in any order the taxpayer elects.
(4) No credit may be sued more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them.
(5) As used in this section:
(a) the term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A), only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) the term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.
B. This section is effective for tax years beginning after 1995."
SECTION 4. A. Chapter 20, Title 12 of the 1976 Code, as added by Act 76 of 1995, is amended by adding:
"Section 12-20-105. License fees may be reduced by credits as provided in Section 12-6-3410 or Section 12-6-3480, or both of these sections.
B. This section is effective for tax year beginning after 1995."
SECTION 5. A. Chapter 7, Title 38 of the 1976 Code is amended by adding:
"Section 38-7-190. (A) Notwithstanding any other provision of law:
(1) Any credits under Chapter 6 of Title 12 may be applied against any taxes, license fees, and other assessments imposed under this title.
(2) Any credits under this title which are earned by one member of a controlled group of corporations may be used and applied by that member and any other members of the controlled group of corporations.
(3) Any limitations upon the total amount of liability for taxes that can be reduced by the use of a credit must be computed before any credit is used to reduce any tax liability under this title. Subject to item (4), the
(4) No credit can be used more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them.
(5) As used in this section:
(a) The term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A) only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) The term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.
B. This section is effective for tax years beginning after 1995."/
Amend further, by striking Section 12-10-70(1)(b), as contained in Section 7, page 5, and inserting:
/(b) If the business is a tire manufacturer that has a capital investment in this State which exceeds one billion dollars and employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed, the qualifying business is entitled to the jobs tax credit for the period and in the amount provided in Section 12-7-1220(B) 12-6-3360(C)(1); in addition, a qualifying business is entitled to an additional five hundred dollars a year tax credit in the third, fourth, and fifth year of any AFDC recipient's continued employment with the qualifying business, based on the status of the employee at the time of beginning employment. Except as stated below, a new job is not considered a new job for the purpose of this credit if it replaces the same job that was part of a reduction in force in the preceding twelve months. A tire manufacturer may qualify as new jobs up to ninety percent of the employees transferred from an existing project in the State to one of up to three new projects approved by the council if:
(i) the tire manufacturer has a capital investment in this State which exceeds one billion dollars, as defined in Section 12-10-45;
(ii) the tire manufacturer employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed;
(iii) the tire manufacturer makes a capital investment in excess of five hundred million dollars in this State over the five-year period beginning on the stipulated date; and
(A) clearly defines the three new projects,
(B) limits the credit for transferred jobs to jobs that were either backfilled by other new hires in the State or the transfer was needed to retain an employee's employment in the State,
(C) includes a provision for an audit by the Department of Revenue and Taxation to ensure that the credit for transferred employees is only allowed for employees transferred for valid business reasons from projects in operation in the State on the stipulated date to one of the three defined new projects, and
(D) no credit will be allowed for employees transferred solely to obtain the credit./
Amend further, Section 12-10-80(A), as contained in Section 8A, page 6, line 17, by striking /April fifteenth/ and inserting /June thirtieth/ so that when amended Section 12-10-80(A) reads:
"(A) Upon certification by the council to the department of the council's determination that a business is a qualifying business, a qualifying business may collect a job development fee by retaining an amount of employee withholding permitted by subsection (C) or (D), or both but not both, for the purposes permitted by subsection (B) or (D), respectively. The amount retained is the property of the business, subject to all of the conditions in this section including the later possible requirement that the funds be transferred to this State as withholding and the possible forfeiture of the funds to this State as misappropriated withholding. The retained withholding withheld must be maintained in an escrow account with a bank which is insured by the Federal Deposit Insurance Corporation. To the extent the money is not used as permitted by subsection (B) or (D), it must be treated as misappropriated employee withholding. Employee withholding may not be retained from an employee whose job was created in this State before the entry of the qualifying business into a revitalization agreement. If a qualifying business retains employee withholding under this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business retaining employee withholding under this section shall file with the council and the department the information and documentation respecting the retention and use of the employee withholding according to the revitalization agreement. Each qualifying business which retains in excess of ten thousand dollars in any calendar year shall furnish an audited report prepared by an independent certified
Amend further, by inserting an appropriately numbered penultimate section to read:
/SECTION . As used in the amendments to Section 12-10-70(1)(b) contained in this act, the phrase "stipulated date" means the general effective date of this act and the Code Commissioner in the preparation of the cumulative supplement to the Code of Laws of South Carolina, 1976, is directed to delete the phrase "stipulated date" and insert the calendar date that is the general effective date of this act./
Renumber sections to conform.
Amend title to conform.
Rep. HARRELL explained the amendment.
Rep. SHEHEEN raised the Point of Order that the Bill was out of order in compliance with Rule 5.13 which states that each Bill effecting the expenditures of money by the State shall, prior to receiving second reading, have attached to it in writing such comment of the State Auditor as may appear appropriate regarding its effect on the finances of the State.
The SPEAKER stated that the Bill had an impact statement from Bernie Maybank.
Rep. SHEHEEN stated that the House had adopted an additional requirement for Bills under Rule 5.13 requiring a statement from the State Auditor about the finances that are to be effected. He further argued that the statement of fiscal impact was under the Appropriations Bill of 1983, and applied to both the House and the Senate. He stated that Rule 5.13 simply required a statement from the State Auditor and was a further requirement in addition to the fiscal impact requirement. Rep. SHEHEEN further stated that the fiscal impact statement requirement was passed by
Rep. FELDER said that Rule 5.13 stated "as may appear appropriate" and it did not state "shall" and he further said that the Committee Chairman could satisfy the requirement.
Rep. HASKINS stated that Rule 5.13 applied only to Bills effecting the expenditure of money by the State and that this Bill did not effect the expenditure of money by the State and it merely granted certain tax credits and that Rule 5.13 did not apply.
Rep. SHEHEEN stated that under that theory it would only apply to Appropriations Bills and that this effected the expenditure of money because it decreased the amount of money.
Rep. HASKINS stated that he agreed that it would only apply to Appropriations Bills because it said Bills effecting expenditures of money by the State, but it did not say Bills granting tax credits or requiring companies to pay the state less.
Rep. HARRELL stated that the Rule did not apply because it said each Bill effecting the expenditures of money and that this Bill did not expend money. It dealt with tax credits granted to business and industry and the admissions tax in terms of dates, not in terms of expenditures.
Rep. SHEHEEN stated that the summary on Section 10 of the Bill stated that it provided changes relating to the admissions tax used for infrastructure improvements.
The SPEAKER stated that it was not new state expenditures and that it just provided for the allocation of the money.
Rep. SHEHEEN stated that the Rule did not state new, it said effect.
The SPEAKER stated that effect meant to cause or to bring about and that the bill under consideration did not effect state expenditures. He further stated that Rule 5.13 stated each Bill effecting the expenditure of money by the State and therefore did not apply due to the fact that this Bill did not appropriate or cause expenditures of state funds and he overruled the Point of Order.
Rep. HARRELL continued speaking.
Rep. HARRELL spoke in favor of the amendment.
Rep. HASKINS moved to waive Rule 6.1, which was agreed to.
Rep. HARRELL continued speaking.
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