HOUSE JOURNAL for May 29, 1996 - South Carolina Legislature Online

South Carolina General Assembly
111th Session, 1995-1996
Journal of the House of Representatives

WEDNESDAY, MAY 29, 1996

Wednesday, May 29, 1996
(Statewide Session)

~~Indicates Matter Stricken~~
Indicates New Matter

The House assembled at 10:00 A.M.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

Almighty God, always near to all as a Presence to give us courage, a Light to lead us, and a Teacher to transform us, keep us sensitive and responsive to Your promptings, changing us from what we are to what we ought to be. Make us always ready to yield ourselves to Your way for our littleness needs Your greatness, our weakness needs Your strength. Grant that nothing may eclipse our faith or obscure our hope as we pray "Your will be done on earth as it is in Heaven."

God bless us and use us this day and every day. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. S. WHIPPER moved that when the House adjourns, it adjourn in memory of Ardenia Gamble and Lykes Gamble, Sr. of Liberty Hill, N. Charleston, which was agreed to.

REGULATIONS RECEIVED

The following were received and referred to the appropriate committees for consideration.

Document No. 2043
Promulgated By Department of Health and Environmental Control
61.92. Underground Storage Tank Control Regulations
Received By Speaker May 29, 1996
Referred to House Committee on Agriculture, Natural Resources and Environmental Affairs
120 Day Review Expiration Date September 26, 1996
(Subject to Sine Die Revision)

Document No. 2047
Promulgated By Department of Consumer Affairs
28-62. Adjustment of Dollar Amounts
Received By Speaker May 28, 1996
Referred to House Committee on Labor, Commerce and Industry
120 Day Review Expiration Date September 25, 1996
(Subject to Sine Die Revision)

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 28, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 62:
S. 62 -- Senators McConnell, Rose, Ryberg, Rankin, Elliott, Courson, Wilson and O'Dell: A BILL TO AMEND SECTION 24-3-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONFINEMENT OF PRISONERS, SO AS TO PROVIDE THAT A PRISONER WHO ESCAPES OR ATTEMPTS TO ESCAPE FROM CUSTODY MAY NOT SERVE HIS SENTENCE FOR THE ORIGINAL CONVICTION OR AN ADDITIONAL SENTENCE FOR THE ESCAPE OR ATTEMPTED ESCAPE IN A MINIMUM SECURITY FACILITY AND TO DELETE AN OBSOLETE REFERENCE.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 28, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 1102:
S. 1102 -- Senator Holland: A BILL TO AMEND SECTION 7-15-380, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OATH OF AN ABSENTEE BALLOT APPLICANT, SO AS TO DELETE THE REQUIREMENT THAT THE ADDRESS OF THE WITNESS APPEAR ON THE OATH; TO AMEND SECTION 7-15-385, RELATING TO THE MARKING OF ABSENTEE BALLOTS, SO AS TO PROVIDE THAT AN APPLICANT WHO CANNOT SIGN HIS NAME BECAUSE OF ILLITERACY OR A HANDICAP MAY INSTEAD MAKE HIS MARK; AND TO AMEND SECTION 7-15-420, RELATING TO RECEIPT, TABULATION, AND REPORTING OF ABSENTEE BALLOTS, SO AS TO DELETE THE REQUIREMENT THAT THE ADDRESS OF THE WITNESS APPEAR ON THE RETURN-ADDRESSED ENVELOPE.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 23, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has reconsidered the appointment of Senators McConnell, Moore and Courson of the Committee of Free Conference on the part of the Senate on H. 3961:
H. 3961 -- Reps. Wilkins, Harrison, D. Smith, Huff, Cromer, Fulmer, Wells, Meacham, Cotty, Witherspoon, Wright, Tripp, H. Brown, Sharpe, Sandifer, Cain, Fair, Rice, Fleming, Mason, A. Young, Kelley, Herdklotz, Seithel, Riser, Haskins, Simrill, Keegan, Trotter, Hutson, R. Smith, Marchbanks, Harrell, Stuart, Klauber, Waldrop and Davenport: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 TO TITLE 14 SO AS TO CREATE THE JUDICIAL MERIT SELECTION COMMISSION AND TO ESTABLISH ITS POWERS, DUTIES, AND FUNCTIONS; TO AMEND SECTIONS 1-23-510, 1-23-520, 1-23-525, 1-23-530, AND 1-23-550, RELATING TO JUDGES OF THE ADMINISTRATIVE LAW JUDGE DIVISION, SO AS TO PROVIDE THAT THESE JUDGES MUST BE APPOINTED BY THE GOVERNOR FROM A LIST OF NOMINEES SUBMITTED BY THE JUDICIAL MERIT SELECTION COMMISSION; 2-19-10, RELATING TO THE JOINT LEGISLATIVE COMMITTEE TO REVIEW CANDIDATES, SO AS TO DELETE PROVISIONS ON ELECTING THE MEMBERS OF THE JUDICIARY; 14-1-215, AS AMENDED, RELATING TO RETIRED JUDGES OR JUSTICES PRESIDING IN CERTAIN COURTS, SO AS TO FURTHER PROVIDE FOR THE MANNER AND CONDITIONS OF THIS SERVICE; 14-3-10, RELATING TO THE COMPOSITION OF THE SUPREME COURT, SO AS TO PROVIDE THAT THE JUSTICES THEREOF SHALL BE APPOINTED BY THE GOVERNOR IN THE MANNER PROVIDED ABOVE INSTEAD OF ELECTED BY THE GENERAL ASSEMBLY; 14-3-20, RELATING TO THE QUALIFICATIONS OF JUSTICES TO THE SUPREME COURT, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR INSTEAD OF ELECTION BY THE GENERAL ASSEMBLY; 14-3-40, RELATING TO THE VACANCIES IN THE SUPREME COURT, SO AS TO PROVIDE FOR APPOINTMENTS TO FILL A VACANCY; 14-5 110, RELATING TO THE QUALIFICATIONS OF CIRCUIT COURT JUDGES, SO AS TO REFER TO THEIR APPOINTMENT RATHER THAN THEIR ELECTION; 14-5-160, RELATING TO THE ASSIGNMENT OF A JUDGE TO FILL A VACANCY, SO AS TO PROVIDE THE PROCEDURE TO FILL A VACANCY; 14-5-610, AS AMENDED, RELATING TO JUDICIAL CIRCUITS AND ELECTION OF JUDGES, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR; 14-8-20, RELATING TO THE ELECTION OF JUDGES OF THE COURT OF APPEALS, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR; 14-8-30, RELATING TO THE QUALIFICATIONS OF JUDGES OF THE COURT OF APPEALS, SO AS TO PROVIDE FOR APPOINTMENT BY THE GOVERNOR; 14-8-40, RELATING TO THE OATH OF OFFICE OF JUDGES OF THE COURT OF APPEALS, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR; 14-8-60, RELATING TO THE VACANCIES ON THE COURT OF APPEALS, SO AS TO PROVIDE FOR THE PROCEDURE TO FILL A VACANCY; 20-7-1370, AS AMENDED, RELATING TO THE QUALIFICATIONS AND TERMS OF FAMILY COURT JUDGES, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR; 20-7-1410, RELATING TO THE INITIAL ELECTION OF FAMILY COURT JUDGES, SO AS TO PROVIDE FOR THEIR APPOINTMENT BY THE GOVERNOR; TO REPEAL SECTIONS 2-19-70 AND 2-19-80, RELATING TO THE PROHIBITION AGAINST PLEDGING AND REOPENING OF FILING WHERE INCUMBENT JUDGES WITHDRAW, DIE, OR ARE FOUND NOT QUALIFIED, RESPECTIVELY; AND TO PROVIDE THAT THE ABOVE PROVISIONS TAKE EFFECT UPON RATIFICATION OF AN AMENDMENT TO ARTICLE V OF THE CONSTITUTION OF THIS STATE ESTABLISHING THE JUDICIAL MERIT SELECTION COMMISSION TO ASSIST THE GOVERNOR IN APPOINTING JUDGES FOR THE ABOVE-REFERENCED COURTS.
Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 23, 1996
Mr. Speaker and Members of the House:

Received as information.

H. 3845--COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., May 28, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it nonconcurs in the amendments proposed by the House to H. 3845:
H. 3845 -- Rep. Cromer: A BILL TO AMEND SECTION 14-7-130, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PREPARATION OF THE JURY LIST FOR EACH COUNTY FROM A TAPE OF PERSONS HOLDING A VALID SOUTH CAROLINA DRIVER'S LICENSE, SO AS TO PROVIDE THAT THIS JURY LIST SHALL BE FURNISHED IN 1995 AND EVERY THIRD YEAR THEREAFTER RATHER THAN EACH YEAR, AND TO REVISE THE MONTHS IN WHICH THE LIST IS COMPILED AND FURNISHED.
Very respectfully,
President

On motion of Rep. CROMER, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. CROMER, KLAUBER and TUCKER to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

CONCURRENT RESOLUTION

The following was introduced:

H. 5074 -- Rep. Wilkins: A CONCURRENT RESOLUTION EXTENDING CONGRATULATIONS AND APPRECIATION TO THE HONORABLE HEYWARD GROVERMAN HUTSON A DEDICATED, CONSCIENTIOUS, AND COMMITTED MEMBER OF THE HOUSE OF REPRESENTATIVES SINCE 1993, AND WISHING HIM THE BEST ON THE OCCASION OF HIS RETIREMENT FROM THE HOUSE OF REPRESENTATIVES.

Whereas, the Honorable Heyward Groverman Hutson has represented the citizens of House District 94 since 1993; and

Whereas, he was born in Summerville, the son of Heyward Groverman Hutson and Annie Christabel Limehouse Hutson; and

Whereas, Representative Hutson earned a Bachelor of Science degree in 1958 from the United States Military Academy, West Point and a master's degree from Syracuse University in 1971; and

Whereas, he is devotedly married to the former Evelyn Carroll Harnett and has four children, Ellyn Carroll, Madilyn Anne, Heyward Groverman III, and Robert Waddington; and

Whereas, Representative Hutson has served faithfully as a public servant, not only in his capacity as a member of the House of Representatives, but also as a member of the Dorchester County Council and a Dorchester Representative for the Council of Governments; and

Whereas, he served in many other leadership roles including president of the Summerville Preservation Society in 1988, and president of the West Point Society of Charleston from 1991 to 1993; and

Whereas, Representative Hutson loyally served this country as a Colonel in the United States Army from 1958 to 1985; he served two tours in Vietnam, two tours in Europe, and two tours in the Pentagon spanning nine years; and

Whereas, during his distinguished career in the House of Representatives, he has served on the Medical, Military, Public and Municipal Affairs Committee and the Judiciary Committee; and

Whereas, Representative Hutson is known by his colleagues in the House of Representatives as a determined, disciplined, and focused public servant committed to enacting legislation which will best serve the citizens of South Carolina; and

Whereas, he is well-respected and admired by his colleagues and friends in the General Assembly. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly extend congratulations and best wishes to the Honorable Heyward Groverman Hutson for dedicated service to the House of Representatives since 1993 and to wish him well on the occasion of his retirement.

Be it further resolved that a copy of this resolution be forwarded to the Honorable Heyward Groverman Hutson.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5075 -- Reps. Baxley, Kinon and M. Hines: A CONCURRENT RESOLUTION COMMENDING THE HONORABLE LARRY L. ELLIOTT OF MARION COUNTY, OUR GOOD FRIEND AND DISTINGUISHED COLLEAGUE IN THE GENERAL ASSEMBLY, FOR HIS OUTSTANDING PUBLIC SERVICE.

Whereas, since 1991 the Honorable Larry L. Elliott of Marion County has diligently represented the citizens of District Number 57 in the House of Representatives; and

Whereas, Representative Elliott also served on the Mullins City Council from 1982 until 1985 and, again, from 1988 until 1990, and he was a member of the South Carolina Highway Commission from 1985 until 1986 and, again in 1990; and

Whereas, he has been an outstanding and greatly-admired public servant, and we have come to appreciate his friendship and dedication as a member of the General Assembly; and

Whereas, he has chosen not to seek re-election to the House of Representatives in 1996; and

Whereas, he greatly deserves special recognition for his faithful and valuable public service. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly of the State of South Carolina, by this resolution, commend the Honorable Larry L. Elliott of Marion County, our good friend and distinguished colleague in the General Assembly, for his outstanding public service.

Be it further resolved that a copy of this resolution be forwarded to Representative Elliott.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5076 -- Reps. Tucker and P. Harris: A CONCURRENT RESOLUTION CONGRATULATING T. L. HANNA HIGH SCHOOL OF ANDERSON ON WINNING THE CLASS AAA STATE CHAMPIONSHIP IN BOYS SOCCER FOR 1996.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5077 -- Reps. H. Brown and Law: A CONCURRENT RESOLUTION TO COMMEND THE HONORABLE SANDRA S. "SANDI" WOFFORD OF BERKELEY COUNTY FOR HER OUTSTANDING SERVICE IN THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES AND WISH HER WELL IN ALL HER FUTURE ENDEAVORS.

Whereas, The Honorable Sandra S. "Sandi" Wofford, our good friend and esteemed colleague, is not seeking re-election to the South Carolina House of Representatives; and

Whereas, since 1989, Sandi has represented the people of District 92 with great distinction and dedicated service; and

Whereas, while serving in the General Assembly, Representative Wofford was a member of the Medical, Military, Municipal and Public Affairs Committee from 1989 to 1994 and served as secretary in 1991 and 1992; she also has served on the Rules Committee since 1993 and currently is also serving on the Judiciary Committee; and

Whereas, she has been an outstanding, very able, and effective advocate for many causes and most especially victims' rights; and

Whereas, Representative Wofford has not only been an exceptional advocate for her constituents during her tenure in the General Assembly, but she has also been an exemplary volunteer for many causes in her community; and

Whereas, her caring, commitment, and sense of duty is a superb example that public service and volunteerism makes a difference; and

Whereas, her hard work, diligence, and tenacity as well as her leadership qualities are greatly admired by her colleagues in the General Assembly; and

Whereas, she has been a loyal and devoted friend, and she will be greatly missed. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly, by this resolution, commend The Honorable Sandra S. "Sandi" Wofford of Berkeley County for her outstanding service in the South Carolina House of Representatives and wish her well in all her future endeavors.

Be it further resolved that a copy of this resolution be presented to The Honorable Sandra S. "Sandi" Wofford.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5078 -- Reps. Tucker and P. Harris: A CONCURRENT RESOLUTION WISHING GOOD HEALTH AND A SPEEDY RECOVERY TO THE HONORABLE DARWIN WRIGHT, MAYOR OF ANDERSON, FOLLOWING HIS RECENT SURGERY IN ATLANTA.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5079 -- Reps. Tucker and P. Harris: A CONCURRENT RESOLUTION COMMENDING RICHARD SHIRLEY OF ANDERSON FOR A JOB WELL DONE AS VICE PRESIDENT AND CITY EXECUTIVE FOR BB&T, AND WISHING HIM SUCCESS AND HAPPINESS IN HIS FUTURE ENDEAVORS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 1432 -- Senators Holland, Cork, Ford, McConnell, Jackson, Courtney, Bryan, Russell, Mescher, Moore, Martin, Saleeby, Lander, Wilson and Rankin: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO FORMULATE RECOMMENDATIONS FOR THE GENERAL ASSEMBLY TO CONSIDER IN EVALUATING THE LAWS CONCERNING THE JURISDICTION, NUMBER OF AVAILABLE POSITIONS, LOCATION, QUALIFICATIONS, CONTINUING EDUCATION AND CERTIFICATION REQUIREMENTS, AND COMPENSATION AND OTHER BENEFITS OF MAGISTRATES IN EACH COUNTY AND THROUGHOUT THE STATE AND THE MAGISTRATES COURTS' ROLE IN THE UNIFORM JUDICIAL SYSTEM.

The Concurrent Resolution was ordered referred to the Committee on Judiciary.

CONCURRENT RESOLUTION

The following was introduced:

H. 5080 -- Reps. Cromer, Scott, J. Brown, Byrd, Rogers, Howard, Cotty, Harrison, Quinn and Sheheen: A CONCURRENT RESOLUTION TO COMMEND THE HONORABLE JUNE STROTHER SHISSIAS OF RICHLAND COUNTY FOR HER OUTSTANDING LEGISLATIVE SERVICE TO THE PEOPLE OF SOUTH CAROLINA.

Whereas, the Honorable June Strother Shissias of Richland County, our good friend and esteemed colleague, has represented the citizens of House District Number 78 since 1992 and is not seeking re-election to the House of Representatives; and

Whereas, Representative Shissias has served with distinction on the Medical, Military, Public and Municipal Affairs Committee and is currently serving on the Judiciary Committee; she also was a subcommittee chairman on the South Carolina Welfare Reform Task Force, and she served on the Joint Health Care Planning and Oversight Committee and the Compliance Review Committee on Elderly Long Term Care; and

Whereas, during her tenure in the House of Representatives she has demonstrated outstanding abilities as a leader and advocate working for better health care in South Carolina and championing the causes of women, children, and the elderly; and

Whereas, in 1992 and 1993, Representative Shissias received the Department of Health and Environmental Control Maternal and Child Health Legislator Award, was named Advocate of the Year in 1993 by the Central South Carolina Planned Parenthood, and received the South Carolina Taxpayers Association Legislative Award; and

Whereas, Representative Shissias has been an outstanding leader and a very effective consensus builder, admired for her commitment to excellence, her tenacity, and her gentle but deliberate and persuasive advocacy skills; and

Whereas, her leadership also extends to many facets of her local community and the example of volunteerism and public service set by this exceptional woman is a credit not only to herself and her family but also to the community, the State, and this General Assembly; and

Whereas, Representative Shissias has been a valuable member of the South Carolina House of Representatives, and she will be missed by her friends and colleagues. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly commend the Honorable June Strother Shissias of Richland County for her outstanding legislative service and wish her well upon her departure from the South Carolina House of Representatives.

Be it further resolved that a copy of this resolution be forwarded to Representative Shissias.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5081 -- Reps. Allison, Littlejohn, Walker, Wilder, D. Smith, Davenport, Lee, Vaughn and Lanford: A CONCURRENT RESOLUTION TO COMMEND THE HONORABLE CAROLE C. WELLS OF SPARTANBURG COUNTY FOR HER OUTSTANDING SERVICE IN THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES AND TO WISH HER WELL AS SHE BEGINS HER SERVICE ON THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION.

Whereas, our good friend and respected colleague, the Honorable Carole C. Wells, has been a member of the South Carolina House of Representatives since 1987; and

Whereas, since her election to the House of Representatives, she has served the people of District 34 with great distinction and dedicated service; and

Whereas, she has made significant contributions through her work in the General Assembly while serving on the Agriculture and Natural Resources Committee from 1987-1990 and on the Labor, Commerce and Industry Committee in 1991 and 1992, and most especially on the Ways and Means Committee from 1993 through this session; and

Whereas, during her tenure, Representative Wells was appointed Ways and Means K-12 subcommittee chairman and was elected House Assistant Minority Leader for 1993-94 and co-chair of the Women's Caucus for 1992-93; and

Whereas, her outstanding leadership extends beyond the State House to her local community where she has served in many capacities and has been recognized for her many contributions; and

Whereas, she also has demonstrated her leadership and continued her public service on the national level where she served as Vice President of the National Order of Women Legislators for 1994-95; and

Whereas, Representative Wells has long been admired for her commitment to excellence, her dedication and hard work, and her effective and progressive leadership; and

Whereas, on January 31, 1996, the Honorable Carole C. Wells was elected to the South Carolina Employment Security Commission, her term to begin on July 1, 1996; and

Whereas, the members of the General Assembly know that their esteemed colleague, Representative Carole C. Wells, will be a valuable member of the South Carolina Employment Security Commission, but that she will be greatly missed. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That, by this resolution, the members of the General Assembly commend the Honorable Carole C. Wells for her outstanding service in the South Carolina House of Representatives and wish her well as she begins her service on the South Carolina Employment Security Commission.

Be it further resolved that a copy of this resolution be presented to The Honorable Carole C. Wells.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 5082 -- Reps. Jennings, Baxley and Kinon: A CONCURRENT RESOLUTION COMMENDING THE HONORABLE L. MORGAN MARTIN OF HORRY COUNTY, OUR DISTINGUISHED COLLEAGUE AND FRIEND, FOR HIS SIX YEARS OF OUTSTANDING LEGISLATIVE SERVICE TO THE PEOPLE OF SOUTH CAROLINA AND WISHING HIM CONTINUED SUCCESS IN HIS CAREER.

Whereas, The Honorable L. Morgan Martin of Horry County has represented the citizens of House District 58 in the General Assembly for the past six years and has chosen not to seek reelection to the House of Representatives in 1996; and

Whereas, L. Morgan Martin was born January 28, 1953, and is the son of Lonnie H. and Edna J. Martin; and

Whereas, Representative Martin is a graduate of Francis Marion College earning a B.S. Degree in 1975 and attended the University of South Carolina Law School where he graduated with a J.D. degree in 1978; and

Whereas, he resides in Conway with his wife, the former Sonya Joy Hardee, and they have three lovely children, Mary Ashley, Morgan O'Bryan, and Hayley Elizabeth; and

Whereas, Representative Martin received the Outstanding Political Science Student Award in 1974; served as the Chairman of the Horry County Democratic Party from 1984 to 1986 and on the Advisory Board of First Citizens Bank; member of Wildlife Action and Aynor Area Chamber of Commerce; and is currently a member of the First United Methodist of Conway; and

Whereas, Morgan was Assistant Solicitor of the Fifteenth Judicial Circuit from 1980 to 1984; and

Whereas, by serving in the House of Representatives, Morgan is known for his knowledge and understanding of the House Rules, always being guided by the utmost consideration for his fellow colleagues, and the desire to do the right thing; and

Whereas, Representative Martin has established a truly outstanding record for himself, his family, and his constituents; and

Whereas, it is appropriate, by this resolution, to recognize the contributions that Morgan Martin has made to the House of Representatives, to his community, and to the Palmetto State. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly of the State of South Carolina commend The Honorable L. Morgan Martin of Horry County, our distinguished colleague and friend, for his six years of outstanding legislative service to the people of South Carolina.

Be it further resolved that a copy of this resolution be presented to The Honorable L. Morgan Martin.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows.

Allison                Anderson               Askins
Bailey                 Baxley                 Beck
Boan                   Breeland               Brown, G.
Brown, H.              Brown, J.              Cain
Carnell                Cato                   Cave
Chamblee               Clyburn                Cobb-Hunter
Cooper                 Cromer                 Dantzler
Davenport              Delleney               Easterday
Felder                 Fleming                Fulmer
Gamble                 Govan                  Hallman
Harrell                Harris, J.             Harris, P.
Hines, J.              Hines, M.              Hodges
Howard                 Hutson                 Kelley
Keyserling             Kinon                  Kirsh
Klauber                Knotts                 Lanford
Law                    Lee                    Limbaugh
Limehouse              Littlejohn             Lloyd
Loftis                 Marchbanks             Martin
Mason                  McAbee                 McCraw
McKay                  McMahand               Meacham
Moody-Lawrence         Phillips               Quinn
Rhoad                  Rice                   Richardson
Riser                  Robinson               Rogers
Sandifer               Scott                  Sharpe
Sheheen                Shissias               Simrill
Smith, D.              Smith, R.              Spearman
Stille                 Stuart                 Tripp
Trotter                Tucker                 Vaughn
Waldrop                Walker                 Whatley
Whipper, L.            Whipper, S.            White
Wilder                 Wilkins                Williams
Witherspoon            Wofford                Young
Young-Brickell

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Wednesday, May 29.

Curtis B. Inabinett               William F. Cotty
David A. Wright                   Douglas Jennings, Jr.
Carole C. Wells                   Lynn Seithel
Eugene C. Stoddard                Thomas G. Keegan
Denny W. Neilson                  Douglas E. McTeer, Jr.
Timothy C. Wilkes                 Alma W. Byrd
Michael F. Jaskwhich              Joseph H. Neal
Ralph W. Canty                    Ronald P. Townsend
Larry L. Koon                     Joseph T. McElveen, Jr.
Theodore A. Brown                 C. Alex Harvin III

Total Present--117

LEAVES OF ABSENCE

The SPEAKER granted Rep. HASKINS a leave of absence for the day.

The SPEAKER granted Rep. HERDKLOTZ a leave of absence for the day.

The SPEAKER granted Rep. INABINETT a temporary leave of absence.

The SPEAKER granted Rep. KEEGAN a leave of absence for yesterday due to medical reasons.

DOCTOR OF THE DAY

Announcement was made that Dr. J. Stephen Jones of Greer is the Doctor of the Day for the General Assembly.

ACTING SPEAKER CATO IN CHAIR
S. 507---CONFERENCE REPORT ADOPTED
CONFERENCE REPORT
The General Assembly, Columbia, S.C., May 28, 1996

The COMMITTEE OF CONFERENCE, to whom was referred:
S. 507 -- Senator Wilson: A BILL TO AMEND SECTION 40-17-55, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGISTRATION OF A PRIVATE DETECTIVE BUSINESS, SO AS TO REVISE THE QUALIFICATIONS AN APPLICANT WHO DESIRES TO OPERATE A PRIVATE DETECTIVE BUSINESS MUST POSSESS, AND TO ESTABLISH THE QUALIFICATIONS A PRIVATE DETECTIVE EMPLOYED BY A PRIVATE DETECTIVE BUSINESS MUST POSSESS.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:

/SECTION 1. Section 40-17-55, as added by Section 1, Act 78 of 1991, is amended to read:

"Section 40-17-55. (A) A person or corporation desiring to ~~carry on~~ operate a private detective business in this State ~~shall register with the division. The division may register a person who has not:~~

~~(1) been convicted of a felony or crime involving moral turpitude.~~

~~(2) committed an act constituting dishonesty or fraud~~ must obtain a Private Detective Business License from the State Law Enforcement Division (SLED). SLED may grant a license to a person or head of a corporation who files a verified application and who:

(1) has obtained a high school diploma or its equivalent;

(2) is at least twenty-one years of age;

(3) is a citizen of the United States;

(4) has not been convicted of a felony or a crime involving moral turpitude, even if pardoned for the disqualifying offense;

(5) is not a person with a record of mental illness that has not been restored to legal capacity;

(6) is not a veteran who has received less than an honorable discharge from military service; and

(7) is a person having had at least three years experience:

(a) as a private investigator;

(b) with a licensed private investigative agency;

(d) as an investigator with a federal, state, county, or municipal law enforcement agency.

(B) The application for ~~registration~~ licensure must be made in writing, under oath, on a form furnished by the division. The application must state the applicant's full name, age, date and place of birth, residences and employment within the past five years, and present occupation with the names and addresses of employers, the date and place of conviction of a crime, and additional information the division requires to investigate the integrity of the applicant. The applicant shall submit with the application one set of fingerprints on forms specified and furnished by the division and a photograph in color, two inches wide by three inches high, taken within six months before the application. The application must contain additional information and documentation the division may require by regulation.

(1) have a high school diploma or its equivalent;

(2) be at least eighteen years of age;

(3) be a citizen of the United States;

(4) not have been convicted of a felony or crime involving moral turpitude, even if pardoned for the disqualifying offense;

(5) not be a person with a record of mental illness that has not been restored to legal capacity; and

(6) not be a veteran who has received less than an honorable discharge from military service.

(D) A person registered as a private detective before this act becomes effective, who applies for a Private Detective Business License, is not required to meet the conditions contained in subsection (A)(1), (7), and that part of (4) which does allow a pardon."

SECTION 2. Section 16-23-20(1) of the 1976 Code, as last amended by Section 3, Act 85 of 1995, is further amended to read:

"(1) Regular, salaried law enforcement officers and reserve police officers of a municipality or county of the State, uncompensated Governor's constables, law enforcement officers of the federal government or other states when they are carrying out official duties while in this State, ~~and~~ deputy enforcement officers of the Natural Resources Enforcement Division of the Department of Natural Resources, and retired commissioned law enforcement officers employed as private detectives or private investigators."

SECTION 3. This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Addison G. "Joe" Wilson        /s/Herbert Kirsh
/s/William H. O'Dell              /s/Annette Young-Brickell
/s/Robert W. Hayes                /s/Michael Stewart "Mickey" Whatley
On Part of the Senate.                 On Part of the House.

Rep. KIRSH explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

SPEAKER IN CHAIR
ORDERED ENROLLED FOR RATIFICATION

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. 941 -- Senators Wilson, Lander, Leventis and Reese: A BILL TO PROMOTE MAJOR GENERAL T. ESTON MARCHANT TO THE RANK OF LIEUTENANT GENERAL OF THE SOUTH CAROLINA ARMY NATIONAL GUARD EFFECTIVE JANUARY 10, 1995.

S. 913--ORDERED TO THIRD READING

The following Bill was taken up.

S. 913 -- Senators Passailaigue, Ford, McConnell, Reese, Washington and Rose: A BILL TO AMEND SECTION 12-7-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

Rep. SHARPE proposed the following Amendment No. 2 (Doc Name P:\amend\GJK\22905SD.96), which was ruled out of order.

Amend the bill, as and if amended, by adding new SECTIONS appropriately numbered to read:

\SECTION ____. Section 12-36-910(B)(1) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(1) gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry-cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin-operated laundromats and dry-cleaning machines; provided, that beginning June 30, 1997, the sales tax shall not apply to these services in the manner provided in Section 12-36-2120;"

SECTION ____. Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item to read:

"( ) laundry, dry-cleaning, dyeing, and pressing services according to the following schedule:

(a) two percent of the gross proceeds of such sales are exempt beginning June 30, 1997;

(b) four percent of the gross proceeds of such sales are exempt beginning June 30, 1998; and

The term 'laundry, dry-cleaning, dyeing, and pressing services' as used in this item does not include coin-operated laundromats and dry-cleaning machines which are exempt from the sales tax as provided in Section 12-36-910 and shall continue to be so exempt after the effective date of this item."

SECTION ____. Section 12-36-2120(24) of the 1976 Code, as last amended by Act 506 of 1994, is further amended to read:

"(24) ~~supplies and~~ machinery used by laundries, cleaning, dyeing, or pressing~~, or~~ establishments and supplies and machinery used by garment or other textile rental establishments in the direct performance of their primary function, but not sales of supplies and machinery used by coin-operated laundromats;"/

Amend further, as and if amended, by striking SECTION 2 and inserting:

/SECTION 2. This act takes effect upon approval by the Governor, except that the amendments to Section 12-36-2120(24) of the 1976 Code as contained herein take effect July 1, 1998./

Renumber sections to conform.

Amend totals and title to conform.

Rep. SHARPE explained the amendment.

POINT OF ORDER

Rep. ROBINSON raised the Point of Order that Amendment No. 2 was out of order as it was not germane in that it related to sales tax and not income tax.

Rep. SCOTT stated that it dealt with taxes within the Department of Revenue.

Rep. SHEHEEN inquired about Amendment No. 1.

The SPEAKER stated that Amendment No. 1 had been withdrawn. He further stated that it was not germane and he sustained the Point of Order and ruled the amendment out of order.

Reps. HARRELL and JENNINGS proposed the following Amendment No. 3 (Doc Name P:\amend\JIC\6100HTC.96), which was ruled out of order.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/ PART I

SECTION 1. Section 12-6-40(A) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(A) 'Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, ~~1994~~ 1995, except as provided in Section 12-6-50."

PART II

SECTION 1. This Part may be cited as the "South Carolina Rural Development Act of 1996".

SECTION 2. The General Assembly finds that:

(1) The state's economy is centrally connected. As we increase the wealth-generating capacity of South Carolina's businesses, the state's per capita income will also increase. Success breeds success, and rural locations in the State which promote positive economic development momentum will tend to multiply their successes;

(2) Rural economies, left to themselves, with little incentives for positive investment will remain with little economic development momentum. On the other hand, rural economies with significant incentives to induce capital investment and job creation will strengthen the state's economy and well-being;

(3) The inducement provided in this Part will encourage the creation of jobs which would not otherwise exist and will create sources of tax revenues for the State and its political subdivisions.

SECTION 3. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3490. (A) Any company subject to a license tax under Section 12-20-100 may apply for a credit against its tax liability for amounts paid in cash to provide infrastructure for a project qualifying for income tax credits under Chapter 6 of Title 12, withholding tax credits under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, and fees in lieu of property taxes under Chapter 12 of Title 4.

(B) For the purpose of this section 'infrastructure' means improvements to a building or the land for water, sewer, gas, steam, electric energy, and communication services which are considered necessary, suitable, or useful to a project qualifying for income tax credits under Chapter 6 of Title 12, withholding tax credits under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, and fees in lieu of property taxes under Chapter 12 of Title 4. These improvements include, but are not limited to:

(1) improvements to both public or private water and sewer systems;

(2) improvements to both public or private electric, natural gas, and telecommunication systems including, but not limited to, ones owned or leased by an electric cooperative, electrical utility, or electric supplier as defined by Chapter 27, Title 58;

(3) fixed transportation facilities including highway, rail, water, and air.

(C) A company is not allowed the credit provided by this section for actual expenses it incurs in the construction and operation of electric system improvements or building electric facilities it owns, leases, manages, or operates.

(D) The maximum aggregate credit that may be claimed in any tax year by a single company is three hundred thousand dollars.

(E) The credits allowed by this section may not reduce the license tax liability of the company below zero. If the applicable credit exceeds the liability and is otherwise deductible under subsection (D) the amount of the excess may be carried forward and deducted in the succeeding taxable year."

SECTION 4. Chapter 10, Title 12 of the 1976 Code is amended by adding:

"Section 12-10-85. (A) Funds received by the department for the State Rural Infrastructure Fund must be deposited in the State Rural Infrastructure Fund of the Council. The fund must be administered by the council for the purpose of providing financial assistance to local governments for:

(1) training costs and facilities;

(2) improvements to regionally-planned public and private water and sewer systems;

(3) improvements to both public and private electricity, natural gas, and telecommunications systems including, but not limited to, an electric cooperative, electrical utility, or electric supplier described in Chapter 27 of Title 58; or

(4) fixed transportation facilities including highway, rail, water, and air.

(B) Rural Infrastructure Fund grants must be available to benefit counties designated as 'least developed' or 'under developed' as defined in Section 12-6-3360 according to guidelines established by the council. However, up to twenty-five percent of the funds annually available in excess of five million dollars must be set aside for grants to areas of moderately developed and developed counties. County governing bodies must apply to the council for these set aside grants stating the reasons that certain areas of their county qualify for these grants because they are comparable to those conditions qualifying a county as 'least developed' or 'under developed'.

(C) For the purposes of this section, 'local government' means a municipality organized pursuant to Chapters 7, 9, 11, and 13 of Title 5 or a county organized pursuant to Section 4-9-20(a), (b), (c), or (d).

(D) The council shall submit a report to the Governor and General Assembly by March fifteenth covering activities for the prior calendar year."

SECTION 5. A. Chapter 10, Title 12 of the 1976 Code is amended by adding:

"Section 12-10-88. (A) Subject to the conditions provided in subsection (B), South Carolina individual income tax withholding equal to five percent of all South Carolina wages paid with respect to employees that are employed by a federal employer at a closed or realigned military installation must be remitted by the department to the redevelopment authority vested with authority under Section 31-12-40(A) to oversee the closed or realigned military installation. The amounts of withholding collected and remitted to the applicable redevelopment authority are referred to as 'redevelopment fees'.

(B) The department shall remit the redevelopment fees during the period described in subsection (C) for each calendar quarter for which the redevelopment authority provides the department with a timely statement from the federal employer that employs the employees working at the closed or realigned military installation setting forth the number of employees employed at the installation, the total wages paid to these employees, and the total amount of South Carolina withholding withheld from the employees for each quarter. In order to receive the redevelopment fees for the applicable quarter, the redevelopment authority shall submit the statement within thirty days of the later of the date that the federal employer's South Carolina withholding tax return is due or the date the federal employer files the withholding tax return.

(C) Redevelopment fees may be remitted to the applicable redevelopment authority for a period beginning with the date that the applicable redevelopment authority first submits the information described in subsection (B) to the department and ending on the earlier of fifteen years later or January 1, 2015. If the redevelopment authority fails to provide the department with the required statement within the requisite time limits, no redevelopment fees must be remitted for that quarter.

(D) Neither the federal employer nor the applicable redevelopment authority is required to meet the requirements of Section 12-10-50 for subsection (A) to apply and the restrictions contained in Section 12-10-80(C) do not apply to redevelopment fees.

(E) For purposes of this section 'closed or realigned military installation' means a federal military base or installation in which permanent employment was reduced by three thousand or more jobs after December 31, 1990, and which is closed or realigned under:

(1) the Defense Base Closure and Realignment Act of 1990;

(2) Title 11 of the Defense Authorization Amendments and Base Closure and Realignment Act; or

(3) Section 2687 of Title 10, United States Code."

B. This section is effective for tax years beginning after 1996.

SECTION 6. Chapter 27, Title 58 of the 1976 Code is amended by adding:

"Section 58-27-240. No provision of the South Carolina Rural Development Act of 1996 may be construed to alter, modify, amend, or repeal, directly or by implication, any provision of Chapter 27 of Title 58, Chapter 31 of Title 58, Chapter 33 of Title 58, Chapter 23 of Title 6, Chapter 7 of Title 5, and Chapter 31 of Title 5, governing, among other things, the retail and wholesale distribution and sale of electric energy in this State."

SECTION 7. A. Section 4-12-30(B)(4)(b)(iv) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(iv) for purposes of this section, 'controlled group' or 'controlled group of corporations' has the meaning provided under Section 1563(a) of the Internal Revenue Code as defined in Chapter 7 6 of Title 12 as of the date of the execution of the inducement agreement without regard to amendments or replacements thereof, and without regard to ~~subsection~~ subsections (a)(4) and (b) of Section 1563."

B. Section 4-12-30(B)(5)(b) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(b) The Board of Economic Advisors shall determine that the purposes to be accomplished by the project are proper governmental and public purposes and that the inducement of the location or expansion of projects within the State is of paramount importance and that the benefits of the project are greater than the costs. In addition to the findings required in subsection (B)(5)(a) above, the county council or county councils, with assistance and advice from the Department or the Board of Economic Advisors shall determine that the purposes to be accomplished by the project are proper governmental and public purposes and that the inducement of the location or expansion of the projects within the State is of paramount importance and that the benefits of the project are greater than the cost."

C. Section 4-12-30(C) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(C)(1) From the end of the property tax year in which the investor and the county execute an inducement agreement, the investor has five years in which to enter into an initial lease agreement with the county.

(2) From the end of the property tax year in which the investor and the county execute the initial lease agreement, the investor has five years in which to complete its investment for purposes of qualifying for this section. If the investor does not anticipate completing the project within five years, the investor may apply to the county before the end of the five-year period for an extension of time to complete the project. If the county agrees to grant the extension, the county must do so in writing and a copy must be delivered to the department within thirty days of the date the extension was granted. The extension may not exceed two years in which to complete the project. There is no extension allowed for the five-year period in which to meet the minimum level of investment. If the minimum level of investment is not met within five years, all property under the lease agreement or agreements, reverts retroactively to the payments required by Section 4-12-20. The difference between the fee actually paid by the investor and the payment which is due under Section 4-12-20 is subject to interest as provided in Section ~~12-43-305~~ 12-54-25(D). Any property placed in service after the five-year period, or seven years in the case of a project which has received an extension, is not part of the fee agreement under subsection (D)(2) and is subject to the payments required by Section 4-12-20 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property.

For purposes of those businesses qualifying under subsection (D)(4), the five-year period referred to in this subsection is eight years and the seven year period is ten years.

(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the annual fee is available for no more than thirty years and for those projects placed in service in more than one year the annual fee is available for a maximum of thirty-seven years.

(4) Annually, during the time period allowed to meet the minimum investment level, the investor shall provide the total amount invested to the appropriate county official."

D. Section 4-12-30(D) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(D) The inducement agreement must provide for fee payments, to the extent applicable, as follows:

(1)(a) Any property, title to which is transferred to the county before being placed in service, is subject to an annual fee payment as provided in Section 4-12-20.

(b) Any undeveloped land, title to which is transferred to the county, before being developed and placed in service, is subject to an annual fee payment as provided in Section 4-12-20. The time during which fee payments are made under Section 4-12-20 is not considered part of the maximum periods provided in subsections (C)(2) and (C)(3), and no lease is considered an 'initial lease agreement' for purposes of this section until the first day of the calendar year for which a fee payment is due under subsection (D)(2) in connection with the lease.

(2) After property qualifying under subsection (B) is placed in service, an annual fee payment determined in accordance with one of the following is due:

(a) an annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using an assessment ratio of not less than six percent, except as provided in item (4) of this subsection, and a fixed millage rate as provided in subsection (G), and a fair market value estimate determined by the department as follows:

(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, but if real property is constructed for the fee or is purchased in an arm's length transaction, fair market value is deemed to equal the original income tax basis; otherwise, the department shall determine fair market value by appraisal; and

(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the investor is not entitled to any extraordinary obsolescence.

(b) an annual payment as provided in subsection (D)(2)(a), except that every fifth year the applicable millage rate is allowed to increase or decrease in step with the average actual millage rate applicable in the district where the project is located based on the preceding five-year period.

(3) At the conclusion of the payments determined pursuant to items (1) and (2) of this subsection, an annual payment equal to the taxes due on the project as if it were taxable. When the property is no longer subject to the fee under subsection (D)(2), the fee or property taxes must be assessed:

(a) with respect to real property, based on the fair market value as of the latest reassessment date for similar taxable property; and

(b) with respect to personal property, based on the then depreciated value applicable to such property under the fee, and thereafter continuing with the South Carolina property tax depreciation schedule.

(4) (a) The assessment ratio may not be lower than four percent:

(i) in the case of a business which is investing at least two hundred million dollars, which when added to the previous investments, results in a total investment of at least four hundred million dollars, and which is creating at least two hundred new full-time jobs at the site qualifying for the fee;

(ii) in the case of a business which is investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a site qualifying for the fee; or

(iii) in the case of investments totalling at least four hundred million dollars, in a county classified as either least developed or underdeveloped, by a limited liability company and/or one or more of the members or equity holders where a member or equity holder is creating, at a site qualifying for the fee, at least one hundred new full-time jobs with an average annual salary of at least forty thousand dollars within four years of the date of execution of the millage rate agreement.

(b) The new full-time jobs requirement of this item does not apply in the case of a taxpayer which for more than the twenty-five years ending on the date of the agreement paid more than fifty percent of all property taxes actually collected in the county.

(c) In an instance in which the governing body of a county has by contractual agreement provided for a change in fee-in-lieu of taxes arrangements conditioned on a future legislative enactment, any new enactment shall not bind the original parties to the agreement unless the change is ratified by the governing body of the county.

(5) Notwithstanding the use of the term 'assessment ratio', a business qualifying under items (2) or (4) of this subsection may negotiate an inducement agreement with a county using differing assessment ratios for different assessment years covered by the agreement. However, the lowest assessment ratio allowed is the lowest ratio for which the business may qualify under this section."

E. Section 4-12-30(F) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(F) ~~(1)~~ ~~If an investor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property.~~

~~(2) Property is disposed of only when it is scrapped or sold in accordance with the lease agreement.~~
With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:

(1)(a) If an investor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property.

(b) Property is disposed of only when it is scrapped or sold in accordance with the lease agreement.

(c) If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property.

(2) Any property which is placed in service as a replacement for property which is subject to the fee payment may become part of the fee payment as provided in this item:

(a) Replacement property does not have to serve the same function as the property it is replacing. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property which is being disposed of in the same property tax year. More than one piece of property can replace a single piece of property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-12-20. Replacement property is entitled to the fee payment for the period of time remaining on the fee period for the property which it is replacing; provided, however, that where a single piece of property replaces two or more pieces of property, the fee period must be measured from the earliest of the dates on which the replaced pieces of property were placed in service.

(b) The new replacement property which qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis and the fee is calculated using the millage rate and assessment ratio provided for the original fee property. The fee payment for replacement property must be based on subsection (D)(2)(a) or (D)(2)(b), if the investor originally used this method.

(d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the time period allowed for investments as provided by subsection (C)(2), is subject to the payments required by Section 4-12-20 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property."

F. Items (1) and (2) of Section 4-12-30(H) of the 1976 Code, as added by Act 125 of 1995, are further amended to read:

"(1) Upon agreement of the parties, and except as provided in ~~subsection (H)~~ item (2) of this subsection, an inducement agreement, a millage rate agreement, or both, may be amended or terminated and replaced with regard to all matters including, but not limited to, the addition or removal of controlled group members~~; but no such amendment or termination and replacement may take place after the initial lease agreement date~~.

(2) No amendment or replacement of an inducement agreement or millage rate agreement may be used to change the millage rate, assessment ratio, or length of the agreement under any such agreement. However, existing inducement agreements which have not yet been implemented by the execution and delivery of a millage rate agreement or a lease purchase agreement, may be amended up to the date of execution and delivery of a millage rate agreement or a lease purchase agreement in the discretion of the governing body."

G. Section 4-12-30(J) of the 1976 Code, as added by Act 125 of 1995, is amended by adding at the end:

"(3) Project investment expenditures which are incurred within the applicable time period provided in subsection (I) by an entity whose investments are not being computed in the level of investment for purposes of subsection (B) or (C) qualify as investment expenditures subject to the fee in subsection (D)(2) where:

(a) the expenditures are part of the original cost of the property which is transferred, within the applicable time period provided in subsection (I), to one or more other entities which are members of the same controlled group as the transferor entity and whose investments are being computed in the level of investment for purposes of subsections (B) or (C); and

(b) the property would have qualified for the fee in subsection (D)(2) if it had been initially acquired by the transferee entity rather than the transferor entity.

(4) The income tax basis of the property immediately before the transfer must equal the income tax basis of the property immediately after the transfer. However, to the extent income tax basis of the property immediately after the transfer unintentionally exceeds the income tax basis of the property immediately before the transfer, the excess shall be subject to payments under Section 4-12-20.

(5) The county shall agree to any inclusion in the fee of the property described in subsection (J)(1)."

H. Section 4-12-30(K) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(K)(1) For a project not located in an industrial development park as defined in Section 4-1-170, distribution of the fee-in-lieu of taxes on the project must be made in the same manner and proportion that the millage levied for school and other purposes would be distributed if the property were taxable. For this purpose, the relative proportions must be calculated based on the following procedure: holding constant the millage rate set in subsection (G) and using all tax abatements automatically granted for taxable property, a full schedule of the property taxes that would otherwise have been distributed to each millage levying entity in the county must be prepared for the life of the agreement, up to twenty years maximum. The ~~total~~ property taxes which would have been paid on the property if it was owned by the investor to ~~for~~ each millage levying entity as a percentage of the total of such property taxes for all such entities determines each entity's relative shares of each year's fee payment for all subsequent years of the agreement.

(2) For a project located in an industrial development park as defined in Section 4-1-170, distribution of the fee-in-lieu of taxes on the project must be made in the manner provided for by the agreement establishing the industrial development park.

(3) A county or municipality or special purpose district that receives and retains revenues from a payment in lieu of taxes may use a portion of this revenue for the purposes outlined in Section 4-29-68 without the requirement of issuing special source revenue bonds or the requirements of Section 4-29-68(A)(4)."

I. Section 4-12-30(M) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(M) An entity subject to the fee may enter into any lending, financing, security or similar arrangement, with any financing entity, concerning all or part of a project, provided that the income tax ownership of the property which is subject to the fee payment under subsection (D)(2) is held, by the time the fee payments relating to such property begin under subsection (D)(2), by the entity subject to the fee.

(1) Any interest in an inducement agreement, millage rate agreement, lease agreement, and property to which the agreement relates may be transferred to any other entity at any time. Notwithstanding any other provision of this chapter, any equity interest in any entity with an interest in any inducement agreement, millage rate agreement, or lease agreement may be transferred to any other entity or person at any time.

(2) A single entity, or two or more entities which are members of a controlled group, may enter into any lending, financing, security, or similar arrangement, or succession of such arrangements, with any financing entity, concerning all or part of a project and may enter into any sale-leaseback arrangement including, without limitation, an assignment, a sublease, or similar arrangement, or succession of such arrangements, with one or more financing entities, concerning all or part of a project, regardless of the identity of the income tax owner of the property which is subject to the fee payment under subsection (D)(2). Even though income tax basis is changed for income tax purposes, neither the original transfer to the financing entity nor the later transfer from the financing entity back to the original transferor or members of its controlled group, pursuant to terms in the sale-leaseback agreement, shall affect the amount of the fee due.

(3) All transfers undertaken with respect to other projects to effect a financing authorized under subsection (M) must meet the following requirements:

(a) The Department of Revenue and Taxation must receive notification in writing within sixty days after the transfer of the identity of each transferee and other information required by the department with the appropriate returns. Failure to meet this notice requirement shall not adversely affect the fee, but a penalty may be assessed by the department for late notification for up to ten thousand dollars a year or portion of a year up to a maximum penalty of fifty thousand dollars.

(b) If the financing entity is the income tax owner of property, either the financing entity is primarily liable for the fee as to that portion of the project to which the transfer relates with the original transferor remaining secondarily liable for the payment of the fee or the original transferor must agree to continue to be primarily liable for the payment of the fee as to that portion of the project to which the transfer relates.

(4) Before an investor may transfer an inducement agreement, millage rate agreement, lease agreement, or the assets subject to the lease agreement, it shall obtain the approval of the county with whom it entered into the original inducement agreement, millage rate agreement, or lease agreement. However, no such approval is required in connection with financing-related transfers."

J. Section 4-12-30(N) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(N) Reserved An entire fee interest may be transferred to another entity which is qualified to enter into a fee agreement under subsection (B)(4)(a). A fee interest is an inducement agreement, millage rate agreement, lease agreement, and the entity's entire property interest in the project subject to the fee. Equity interests in a partnership, corporation, association, or limited liability company which properly files its South Carolina income tax returns as a partnership or corporation and which has an interest in an inducement agreement, millage rate agreement, and lease agreement, such equity interests collectively and individually referred to as an 'entity interest' may be transferred by any entity to any entity, if the entity whose entity interest is being transferred holds at least a five million dollar investment based on income tax basis without regard to depreciation in the project as of the time of the transfer.

~~(2) All transfers of fee interests or entity interests authorized under subsection (N) must meet the following requirements:~~

~~(a) The county must approve the transfer within six months before the transfer.~~

(b) The department must receive notification in writing of the identity of each transferee and other information required by the department within thirty days after the transfer becomes effective. The department may extend the thirty-day period upon written request. Failure to meet this notice requirement does not adversely affect the fee, but a penalty may be assessed by the department for late notification for up to ten thousand dollars a month or portion of a month, with the total penalty not to exceed fifty thousand dollars.

~~(c) No election under Internal Revenue Code of 1986, as amended, Sections 338 or 754 may be made with respect to the transfer.~~

~~(d) Each transferee must agree to be bound by the applicable agreements constituting the fee arrangement.~~

(e) Any transfer must be for fair market value or result in a carryover basis for income tax purposes. If for income tax purposes, the property begins a new depreciable life for the asset, the property also begins a new depreciable life for purposes of computing the fee. In no event is the time period for receiving the fee extended."

K. Section 4-12-40 of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"Section 4-12-40. Projects with ~~respect to which~~ a lease agreement ~~has been~~ entered into before January 1, 1996, ~~the effective date of this chapter~~ are required to use the provisions of Section 4-29-67. Projects with ~~respect to which a~~ lease ~~agreement~~ agreements is entered into after December 31, 1995, are required to use the provisions contained in this chapter. However, those projects with lease agreements entered into after December 31, 1995, in which the total investment exceeds forty-five million dollars within the time provided in subsection (C)(2), ~~have the option of using~~ may elect to use the provisions ~~contained in~~ of Section 4-29-67 or 4-12-30, but not both."

L. Section 4-12-30(B)(4)(a) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(a) Except as provided in ~~subsection~~ subsections (B)(4)(b) and (D)(4)(a), the investment must be made by a single entity. For purposes of this section:

(i) any partnership or other association which properly files its South Carolina income tax returns as a partnership for South Carolina income tax purposes must be treated as a single entity and as a partnership,

(ii) any corporation or other association which properly files its South Carolina income tax returns as a corporation for South Carolina tax purposes must be treated as a single entity and as a corporation, and

(iii) any limited liability companies must be treated as a single entity.

M. Section 4-12-30(I) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(I) Investment expenditures ~~made or~~ incurred by any investor in connection with a project, or relevant phase of a project in connection with a project completed and placed in service in more than one year, ~~qualifies~~ qualify as expenditures subject to the fee in subsection (D)(2), so long as ~~these~~ those expenditures are ~~made~~ incurred:

(1) after, or within sixty days before, the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; and

(2) before the end of the applicable five- or seven-year period referenced in subsection (C)(2) and (C)(3). An inducement agreement must be executed within two years after the date on which the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; otherwise, only investment expenditures made or incurred by any investor after the date of the inducement agreement in connection with a project qualifies as expenditures subject to the fee in subsection (D)(2)."

N. The amendments made in this section to Chapter 12, Title 4 of the 1976 Code are effective upon signature by the Governor. These amendments may be applied to inducement resolutions, inducement agreements, millage rate agreements, and lease agreements with regard to projects for which lease agreements have been entered into prior to the effective date of this act, if the parties to each such agreement agree to modify such agreement to provide for the application of the appropriate provisions. However, except as provided in Section 4-12-30(H) of the 1976 Code, no amendment to such agreements may reduce the millage rate or assessment ratio under such agreements."

SECTION 8. A. Subsections (A) through (U) of Section 4-29-67 of the 1976 Code, as last amended by Act 32 of 1995, are amended to read:

"(A) Notwithstanding the provisions of Section 4-29-60, in the case of a financing agreement in the form of one or more lease agreements for a project qualifying under subsection (B), the county and the investor may enter into an inducement agreement which provides for payment in lieu of taxes (fee) as provided in this section. All references in this section to a lease agreement shall be deemed also to refer to a lease purchase agreement.

(B) In order for property to qualify for the fee as provided in subsection (D)(2):

(1) Title to the property must be held by the county or in the case of a project located in an industrial development park as defined in Section 4-1-170, title may be held by more than one county, provided each county is a member of the industrial development park. Any real property transferred to the county must include a legal description and plat of the property.

(2) The investment must be a project which is located in a single county or an industrial park as defined in Section 4-1-170. A project located on a contiguous tract of land in more than one county, but not in such an industrial development park, may qualify for the fee provided (a) the counties agree on the terms of the fee and the distribution of the fee payment; (b) the minimum millage rate cannot be lower than the millage rate applicable to the county in which the greatest amount of investment occurs; and (c) all such counties must be parties to all agreements establishing the terms of the fee.

(3) The minimum level of investment must be at least ~~eighty-five~~ forty-five million dollars and must be invested within the time period provided in subsection (C).

(4)(a) Except as provided in ~~subsection~~ subsections (B)(4)(b) and (D)(4)(a), the investment must be made by a single entity. For purposes of this section, (i) any partnership or other association which properly files its South Carolina income tax returns as a partnership for South Carolina income tax purposes will be treated as a single entity and as a partnership, and (ii) any corporation or other association which properly files its South Carolina income tax returns as a corporation for South Carolina income tax purposes will be treated as a single entity and as a corporation.

(b)(i) The members of the same controlled group of corporations can qualify for the fee if the combined investment in the county by the members meets the minimum investment requirements. The county and the members who are part of the inducement agreement may agree that any investments by other members of the controlled group within the time periods provided in subsections (C)(1) and (C)(2) shall qualify for the payment regardless of whether the member was part of the inducement agreement; provided, however, in order to qualify for the fee, such other members of the controlled group must be specifically approved by the county and must agree to be bound by agreements with the county relating to the fee; provided, however, such controlled group members need not be bound by agreements, or portions of agreements, to the extent such agreements do not affect the county; provided, further, that with the consent of the county, such members will not be bound by agreements or portions of agreements which do affect the county. Except as otherwise provided in subsection (B)(2), the investments under this subsection (B)(4)(b) must be within the same county or industrial park. Any controlled group member which is claiming the fee must invest at least ten million dollars in the county or industrial park.

(ii) The Department of Revenue and Taxation must be notified in writing of all members which have investments subject to the fee before or within thirty days after the execution of the lease agreement covering the investment by the member. The Department of Revenue and Taxation may extend the thirty-day period upon written request. Failure to meet this notice requirement will not adversely affect the fee, but a penalty may be assessed by the Department of Revenue and Taxation for late notification for up to ten thousand dollars a month or portion of a month with the total penalty not to exceed one hundred twenty thousand dollars. Members of the controlled group must provide the information considered necessary by the Department of Revenue and Taxation to ensure that the investors are part of a controlled group.

(iii) If at any time the controlled group or any former member (who has left the controlled group) no longer has the minimum ~~eighty-five~~ forty-five million dollars of investment (without regard to depreciation), that group or former member no longer holding the minimum amount of investment as provided in subsection (B)(3) (without regard to depreciation) will no longer qualify for the fee.

(iv) For purposes of this section, 'controlled group' or 'controlled group of corporations' shall have the meaning provided under Section 1563(a) of the Internal Revenue Code as defined in Chapter 7 6 of Title 12 as of the date of the execution of the inducement agreement (without regard to amendments or replacements thereof), without regard to ~~subsection~~ subsections (a)(4) and (b) of ~~such~~ Section 1563.

(C)(1) From the end of the property tax year in which the investor and the county execute an inducement agreement, the investor has seven years in which to enter into an initial lease agreement with the county.

There is no extension allowed for the five-year period in which to meet the minimum level of investment. If the minimum level of investment is not met within five years, all property under the lease agreement or agreements reverts retroactively to the payments required by Section 4-29-60. The difference between the fee actually paid by the investor and the payment which is due under Section 4-29-60 is subject to interest as provided in Section ~~12-43-305~~ 12-54-25(D).

Unless property qualifies as replacement property under a contract provision enacted pursuant to subsection (F)(2), any property placed in service after the five-year period, or seven years in the case of a project which has received an extension, is not part of the fee agreement under subsection (D)(2) and is subject to the payments required by Section 4-29-60 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property.

For purposes of those businesses qualifying under Section 4-29-67(D)(4), the five-year period referred to in this subsection is eight years and the seven-year period is ten years.

(4) Annually, during the time period allowed to meet the minimum investment level, the investor must provide the total amount invested to the appropriate county official.

(D) The inducement agreement must provide for fee payments, to the extent applicable, as follows:

(1)(a) Any property, title to which is transferred to the county, will be subject, before being placed in service, to an annual fee payment as provided in Section 4-29-60.

(b) Any undeveloped land, title to which is transferred to the county, will be subject, before being developed and placed in service, to an annual fee payment as provided in Section 4-29-60. The time during which fee payments are made under Section 4-29-60 will not be considered part of the maximum periods provided in subsections (C)(2) and (C)(3), and no lease shall be considered an 'initial lease agreement' for purposes of this section unless and until the first day of the calendar year for which a fee payment is due under subsection (D)(2) in connection with such lease.

(2) After property qualifying under subsection (B) is placed in service, an annual fee payment determined in accordance with one of the following is due:

(a) an annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using an assessment ratio of not less than six percent, except as provided in subsection (D)(4), and a fixed millage rate as provided in subsection (G), and a fair market value estimate determined by the South Carolina Department of Revenue and Taxation as follows:

(i) for real property using the original income tax basis for South Carolina income tax purposes without regard to depreciation. ~~(provided,~~ However, if real property is constructed for the fee or is purchased in an arm's length transaction, fair market value ~~will be~~ is deemed to equal the original income tax basis, otherwise the Department of Revenue and Taxation will determine fair market value by appraisal); and

(ii) for personal property using the original income tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the investor is not entitled to any extraordinary obsolescence.

(b) an annual payment based on any alternative arrangement yielding a net present value of the sum of the fees for the life of the agreement not less than the net present value of the fee schedule as calculated under subsection (D)(2)(a). Net present value calculations performed under this subsection must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published during the month in which the inducement agreement is executed. If no yield is available for the month in which the inducement agreement is executed, the last published yield for the appropriate maturity must be used. If there are no bonds of appropriate maturity available, bonds of different maturities may be averaged to obtain the appropriate maturity.

(c) an annual payment using a formula that results in a fee not less than the amount required pursuant to subsection (D)(2)(a), except that every fifth year the applicable millage rate is allowed to increase or decrease in step with the average actual millage rate applicable in the district where the project is located based on the preceding five-year period.

(a) with respect to real property, based on the fair market value as of the latest reassessment date for similar taxable property; and

(4)(a) The assessment ratio may not be lower than four percent:

(i) in the case of a business which is investing at least two hundred million dollars which, when added to the previous investments, results in a total investment of at least four hundred million dollars, and which is creating at least two hundred new full-time jobs at the site qualifying for the fee;

(ii) in the case of a business which is investing at least four hundred million dollars and which is creating at least two hundred new full-time jobs at a site qualifying for the fee; or

(iii) in the case of investments totalling at least four hundred million dollars, in a county classified as either least developed or underdeveloped, by a limited liability company and/or one or more of its members or equity holders where the member or equity holder is creating, at the site qualifying for the fee, at least one hundred new full-time jobs with an annual average salary of at least forty thousand dollars within four years of the date of execution of a millage rate agreement.

(E) Calculations pursuant to subsection (D)(2) must be made on the basis that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220B(32) and (34).

(F) With regard to calculation of the fee provided in subsection (D)(2), the inducement agreement may provide for the disposal of property and the replacement of property subject to the fee as follows:

(1)(a) If an investor disposes of property subject to the fee, the fee must be reduced by the amount of the fee applicable to that property.

(b) Property is disposed of only when it is scrapped or sold in accordance with the lease agreement.

(c) If the investor used any method to compute the fee other than that provided in subsection (D)(2)(a), the fee on the property which was disposed of must be recomputed in accordance with subsection (D)(2)(a) and to the extent that the amount which would have been paid under subsection (D)(2)(a) exceeds the fee actually paid by the investor, the investor must pay the difference with the next fee payment due after the property is disposed of. If the investor used the method provided in subsection (D)(2)(c), the millage rate provided in subsection (D)(2)(c) must be used to calculate the amount which would have been paid under subsection (D)(2)(a).

(d) If there is no provision in the agreement dealing with the disposal of property in accordance with this subsection, the fee remains fixed and no adjustment to the fee is allowed for disposed property.

(2) Any property which is placed in service as a replacement for property which is subject to the fee payment may become part of the fee payment as provided in this item:

(a) Replacement property does not have to serve the same function as the property it is replacing. Replacement property qualifies for fee treatment provided in subsection (D)(2) only up to the original income tax basis of fee property which is being disposed of in the same property tax year. More than one piece of property can replace a single piece of property. To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the property which it is replacing, the excess amount is subject to payments as provided in Section 4-29-60. Replacement property is entitled to the fee payment for the period of time remaining on the twenty-year fee period for the property which it is replacing; provided, however, that where a single piece of property replaces two or more pieces of property, such fee period shall be measured from the earliest of the dates on which the replaced pieces of property were placed in service.

(b) The new replacement property which qualifies for the fee provided in subsection (D)(2) is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original fee property. The fee payment for replacement property must be based on subsection (D)(2)(a) or (D)(2)(c), if the investor originally used this method, without regard to present value.

(d) If there is no provision in the inducement agreement dealing with replacement property, any property placed in service after the ~~five-year period, or seven years in the case of a project which has received an extension~~ time period allowed for investments as provided by subsection (C)(2), is subject to the payments required by Section 4-29-60 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property.

(G)(1) The county and the investor may enter into an agreement to establish the millage rate (millage rate agreement) for purposes of calculating payments under subsection (D)(2)(a) and the first five years under subsection (D)(2)(c). This millage rate agreement must be executed on the date of the inducement agreement or anytime thereafter up to and including the date of the initial lease agreement. This millage rate agreement may be a separate agreement or may be made a part of either the inducement agreement or the initial lease agreement.

(2) The millage rate cannot be lower than the cumulative property tax millage rate legally levied by or on behalf of all taxing entities within which the subject property is to be located which is the cumulative rate applicable on the thirtieth day of June preceding the calendar year in which the millage rate agreement is executed. If no millage rate agreement is executed before the date of the initial lease agreement, the millage rate is deemed to be the cumulative property tax millage rate applicable on the thirtieth day of June preceding the calendar year in which the initial lease agreement is executed by the parties.

(H)(1) Upon agreement of the parties, and except as provided in subsection (H)(2), an inducement agreement, a millage rate agreement, or both, may be amended or terminated and replaced with regard to all matters including, but not limited to, the addition or removal of controlled group members~~; provided, however, that no such amendment or termination and replacement may take place after the initial lease agreement date~~.

(2) No amendment or replacement of an inducement agreement or millage rate agreement may be used to change the millage rate, or discount rate, assessment ratio, or length of the agreement under any such agreement. However, existing inducement agreements which have not yet been implemented by the execution and delivery of a millage rate agreement or a lease purchase agreement, may be amended up to the date of execution and delivery of a millage rate agreement or a lease purchase agreement in the discretion of the governing body.

(I) ~~Any and all~~ Investment expenditures ~~made or~~ incurred by any investor in connection with a project, (or relevant phase ~~thereof in connection with a~~ of a project for those ~~project~~ projects completed and placed in service in more than one year), ~~shall~~ qualify as expenditures subject to the fee in subsection (D)(2), so long as ~~such~~ these expenditures are ~~made~~ incurred:

(2) before the end of the applicable ~~five or seven-year period~~ time period for investments referenced in subsection (C)(2) and (C)(3).

An inducement agreement must be executed within two years after the date on which the county takes action reflecting or identifying the project or proposed project or investment including, but not limited to, the adoption of an inducement or similar resolution by county council; otherwise, only investment expenditures made or incurred by any investor after the date of such inducement agreement in connection with a project shall qualify as expenditures subject to the fee in subsection (D)(2).

(J)(1) Subject to subsection (K), project investment expenditures which are incurred within the applicable time period provided in subsection (I) by an entity whose investments are not being computed in the level of investment for purposes of subsections (B) or (C) shall qualify as investment expenditures subject to the fee in subsection (D)(2) where:

(a) such expenditures are part of the original cost of the property which is transferred, within the applicable time period provided in subsection (I), to one or more other entities which are members of the same controlled group as the transferor entity and whose investments are being computed in the level of investment for purposes of subsections (B) or (C); and

(b) such property would have qualified for the fee in subsection (D)(2) if it had been initially acquired by the transferee entity rather than the transferor entity.

(2) The income tax basis of such property immediately before such transfer must equal the income tax basis of such property immediately after such transfer; provided, however, that to the extent income tax basis of such property immediately after such transfer unintentionally exceeds the income tax basis of such property immediately before such transfer, such excess shall be subject to payments under Section 4-29-60.

(3) The county must agree to any inclusion in the fee of the property described in subsection (J)(1).

(K)(1) Property which has been previously subject to property taxes in South Carolina will not qualify for the fee except as provided in this subsection:

(a) Land, excluding improvements thereon, on which a new project will be located may qualify for the fee even if it has previously been subject to South Carolina property taxes;

(b) Property which has been subject to South Carolina property taxes, but which has never been placed in service in South Carolina, may qualify for the fee; and

(c) Property which has been placed in service in South Carolina and subject to South Carolina property taxes which is purchased in a transaction other than between any of the entities specified in Section 267(b) of the Internal Revenue Code, as defined under Chapter 7 6 of Title 12 as of the time of the transfer, may qualify for the fee provided the fee-paying entity invests at least an additional ~~eighty-five~~ forty-five million dollars in the project.

(2) Repairs, alterations, or modifications to real or personal property which are not subject to a fee will not be eligible for a fee, even if they are capitalized expenditures, except for modifications to existing real property improvements which constitute an expansion of such improvements.

(L)(1) For a project not located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the same manner and proportion that the millage levied for school and other purposes would be distributed if the property were taxable. For this purpose, the relative proportions must be calculated based on the following procedure: holding constant the millage rate set in subsection (G) and using all tax abatements automatically granted for taxable property, a full schedule of the property taxes that would otherwise have been distributed to each millage-levying entity in the county must be prepared for the life of the agreement, ~~up to twenty years maximum~~ for the maximum time period allowed under (C)(3). These separate schedules must then be reduced to present value using the discount rate provided under subsection (D)(2)(b). The resulting values for each millage-levying entity as a percentage of the present value total for all such entities The property taxes which would have been paid on the property if it was owned by the investor to each millage-levying entity as a percentage of the total of such property taxes for all such entities determines each entity's relative shares of each year's fee payment for all subsequent years of the agreement.

(2) For a project located in an industrial development park as defined in Section 4-1-170, distribution of the fee in lieu of taxes on the project must be made in the manner provided for by the agreement establishing the industrial development park.

(M) As a directly foreseeable result of negotiating the fee, gross revenue of a school district in which a project is located in any year a fee negotiated pursuant to this section is paid, may not be less than gross revenues of the district in the year before the first year for which a fee in lieu of taxes is paid. In negotiating the fee, the parties shall assume that the formulas for the distribution of state aid at the time of the execution of the inducement agreement must remain unchanged for the duration of the lease agreement.

(N) Projects on which a fee in lieu of taxes is paid pursuant to this section are considered taxable property at the level of the negotiated payments for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). However, for a project located in an industrial development park as defined in Section 4-1-170, projects are considered taxable property in the manner provided in Section 4-1-170 for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). Provided, however, that the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E).

(O)(1)~~(a)~~ Any ~~corresponding~~ interest in ~~each of~~ an inducement agreement, millage rate agreement, and lease agreement, and property to which the agreement relates, (collectively referred to as a 'fee interest'), representing an investment of at least eighty-five million dollars (based on income tax basis without regard to depreciation, and regardless of whether such investment comprises all or part of a project), may be transferred to any other entity at any time. Notwithstanding any other provision of this chapter, any equity interest in any entity with an interest in any inducement agreement, millage rate agreement, or lease agreement may be transferred to any other entity or person at any time. by an entity to any entity, whether or not such transferee entity is a member of the same controlled group of which the transferor entity is a members, and (b) any or all equity interests, in any partnership, corporation, or other association which properly files its South Carolina income tax returns as partnership or corporation and which has an interest in an inducement agreement, millage rate agreement, and lease agreement (such equity interest collectively and individually referred to as an 'entity interest') may be transferred by any entity to any entity, whether or not such transferee entity is a member of the same controlled group of which the entity in which one or more interests is being transferred is a member, provided that the entity or entities whose entity interest is or are being transferred hold at least an eighty-five million dollar investment (based on income tax basis without regard to depreciation) in the project as of the time of the transfer.

(2) ~~Except for transfers pursuant to subsections (P) or (Q), no transfer of a fee interest or entity interest may be undertaken:~~

~~(a) until twenty-four months after the project has been placed in service, or relevant portion thereof in the case of a project placed in service in more than one year; or~~

~~(b) within twenty-four months after a prior transfer of the fee interest or entity interest to be transferred.~~

Provided, however, the running of such applicable twenty-four month period shall be suspended for any period during which a transferor's (under subsection (O)(2)(a)) or transferee's (under subsection (O)(2)(b)) risk of loss with respect to the fee interest or entity interest to be transferred is in fact substantially diminished by:

(i) the holding by any entity of a contractual right to require any transfer of such interest by an entity which is not a member of the transferor's (under subsection (O)(2)(a)) or transferee's (under subsection (O)(2)(b)) controlled group;

(ii) the holding by any entity which is not a member of the transferor's (under subsection (O)(2)(a)) or transferee's (under subsection (O)(2)(b)) controlled group of a right to acquire the interest; or

(iii) a short sale or any similar transaction with respect to the interest which is undertaken by the transferor (under subsection (O)(2)(a)) or transferee (under subsection (O)(2)(b)) which is not a member of any such transferee's or transferor's controlled group.

A single entity, or two or more entities which are members of a controlled group, may enter into any lending, financing, security or similar arrangement, or succession of such arrangements, with any financing entity, concerning all or part of a project and may enter into any sale-leaseback arrangement, including without limitation, an assignment, a sublease, or similar arrangement, or succession of such arrangements, with one or more financing entities, concerning all or part of a project, regardless of the identity of the income tax owner of the property which is subject to the fee payment under subsection (D)(2). Even though income tax basis is changed for income tax purposes, neither the original transfer to the financing entity nor the later transfer from the financing entity back to the original transferor or members of its controlled group, pursuant to terms in the sale-leaseback agreement, affects the amount of the fee due.

(3) All transfers undertaken with respect to the project to effect a financing ~~of fee interests or entity~~ ~~interests~~ authorized under subsection (O)~~(1)~~ must meet the following requirements:

(a) ~~The county must approve such transfer within six months prior to the transfer.~~ The Department of Revenue and Taxation must receive notification in writing within sixty days after the transfer of the identity of each transferee and other information required by the department with the appropriate returns. Failure to meet this notice requirement will not adversely affect the fee, but a penalty may be assessed by the department for late notification for up to ten thousand dollars a year or portion of a year up to a maximum penalty of one hundred twenty thousand dollars.

(b) The Department of Revenue and Taxation must receive notification in writing of the identity of each transferee and other information required by the Department of Revenue and Taxation within thirty days after the transfer becomes effective. The Department of Revenue and Taxation may extend the thirty-day period upon written request. Failure to meet this notice requirement will not adversely the fee, but a penalty may be assessed by the Department of Revenue and Taxation for late notification for up to ten thousand dollars a month or portion of a month, with the total penalty not to exceed one hundred twenty thousand dollars. If the financing entity is the income tax owner of property, either the financing entity is primarily liable for the fee as to that portion of the project to which the transfer relates with the original transferor remaining secondarily liable for the payment of the fee or the original transferor must agree to continue to be primarily liable for the payment of the fee as to that portion of the project to which the transfer relates.

~~(c) No election under Internal Revenue Code of 1986, as amended, Sections 338 or 754 may be made with respect to the transfer.~~

(4) ~~All transfers of fee interests authorized under subsection (O)(1) must meet the following additional requirements:~~

(a) The transferor must pay the county any present value fee differential (as defined under subsection (O)(5) within ninety days after the transfer. Failure to make this payment will result in interest and penalties computed in the same manner and amounts applicable to property tax.

~~(b) Each transferee must agree to be bound by the applicable agreements constituting the fee arrangement as to that portion of the project to which the transfer relates.~~

(c) The income tax basis of property interests which are subject to the fee in the hands of the transferee immediately after such transfer (i) cannot exceed the original income tax basis of such property without regard to depreciation) in the hands of the transferor and (ii) cannot be less than the income tax bases of such property (taking depreciation into account) in the hands of the transferor immediately before transfer. The fee to be paid under subsection (D) with respect to such transferred property interests for the remaining term of the fee shall be recomputed using the transferee's income tax basis immediately after the transfer; the same millage rate and discount rate used by the transferor; and the fee payment method provided under subsection (D)(2)(a); provided, however, that if the pre-transfer fee payments were made under subsection (D)(2)(c), then post-transfer fee payments must be made under subsection (D)(2)(c), but without any present value method applicable to such payments. Before an investor may transfer an inducement agreement, millage rate agreement, lease agreement or the assets subject to the lease agreement, it must obtain the approval of the county with which it entered into the original inducement agreement, millage rate agreement, or lease agreement. However, no such approval is required in connection with financing-related transfers.

~~(5)~~ The present value fee differential shall mean the amount by which the fee that would have been paid under subsection (D)(2)(a) with respect to the transferred fee interest until the time of the transfer exceeds the amount which was paid under subsection (D)(2)(b) or (D)(2)(c) until such time with respect to such fee interest. If the investor used the method provided in subsection (D)(2)(c), the millage rate provided in subsection (D)(2)(c) must be used to calculate the amount which would have been paid under subsection (D)(2)(a). If subsection (D)(2)(b) is not applicable to such fee interest, or if no present value fee computation was used under subsection (D)(2)(c), no present value fee differential shall be required to be paid on a transfer thereof.

(P) Reserved.

~~(1) Any interests in an inducement agreement, millage rate agreement, or lease agreement (collectively and individually referred to as a "group fee interest") may be transferred by any entity to:~~

~~(a) any corporation which is a member of the same controlled group as the transferring corporation;~~

~~(b) any corporation which is a member of the same controlled group as all of the partners comprising the transferring partnership;~~

~~(c) any partnership all of the partners of which are members of the same controlled group of which the transferring corporation is a member; and~~

~~(d) any partnership all of the partners of which are members of the same controlled group as all of the partners comprising the transferring partnership.~~

(2) Transfers of group fee interests authorized under subsection (P)(1) must meet the requirements set forth in subsection (O)(3) and (O)(4); provided, however, in connection with subsection (O)(4)(c), to the extent a present value fee payment computation was used by the transferor, the transferee may, if the county agrees, use a fee payment method based on any present value fee payment method provided under subsection (D)(2). In addition, such transfers must involve at least a ten million dollar portion of the project investment or proposed investment (based on income tax basis without regard to depreciation).

(3) Any transfer of an interest in an inducement agreement must include a transfer of a corresponding interest in a millage rate agreement, if any, and lease agreement, if any; any transfer of an interest in a millage rate agreement must include a transfer of a corresponding interest in an inducement agreement, and lease agreement, if any; and any transfer of an interest in a lease agreement must include a transfer of a corresponding interest in an inducement agreement and millage rate agreement.

(4) One or more members of a controlled group, or a partnership all of the partners of which are members of the same controlled group, having an interest in a fee may enter into a sublease, concerning some or all of the project, with any other member of such controlled group, or with any partnership all the partners of which are members of such controlled group, without adversely affecting the fee and without regard to the other provisions of this subsection (P); provided, however, that such sublease may not transfer income tax ownership (as defined under subsection (S)) to the portion of the project which is the subject of the sublease, unless the applicable provisions of subsection (P) have been met.

(Q) Reserved.

(1) Any or all equity interests in any partnership, corporation, or other association which properly files its South Carolina income tax returns as a partnership or corporation and which has an interest in an inducement agreement, millage rate agreement, lease agreement, or any or all of the foregoing (such equity interests collectively and individually referred to as a "group entity interest") may be transferred to:

~~(a) any corporation which is a member of the same controlled group as the corporation in which an interest is being transferred;~~

~~(b) any corporation which is a member of the same controlled group as all of the partners comprising the partnership in which an interest is being transferred;~~

~~(c) any partnership in which all of the partners are members of the same controlled group as the corporation in which an interest is being transferred; and~~

~~(d) any partnership in which all of the partners are members of the same controlled group as all of the partners comprising the partnership in which an interest is being transferred.~~

~~(2) Transfers of group entity interests authorized under subsection (Q)(1) must meet the requirements set forth in subsection (O)(3).~~

(R) For purposes of subsections (O)(1)(a) and (P), and subject to subsection (U), each transferee ~~shall~~, with respect to a project which is the subject of a transfer, shall be considered to have made amounts of qualified investments represented by the property interest which is subject to the fee and which is transferred, without regard to depreciation.

(S) Reserved.

(1) Notwithstanding anything in subsections (O), (P), and (Q), a single entity, or two or more entities which are members of a controlled group, may enter into any lending, financing, security or similar arrangement, or succession of such arrangements, with any financing entity, concerning all or part of a project, provided that the income tax ownership of the property which is subject to the fee payment under subsection (D)(2) is held, by the time the fee payments relating to such property begin under subsection (D)(2), by:

~~(a) the entity, or one or more members of the controlled group, which entered into the inducement agreement with the county;~~

~~(b) one or more transferees permitted under subsection (O)(1)(a) or (P); or~~

~~(c) one or more of the entities referenced in items (a) and (b).~~

Without limiting the foregoing, pursuant to any such arrangement or arrangements, the inducement agreement may permit one or more financing entities: (i) to make investments on behalf of such income tax owner or owners which will qualify for the fee once the property acquired by such investment is transferred to the county and leased or subleased pursuant to the requirements of this section; (ii) to transfer title to property to the county; and (iii) to enter into a lease agreement with the county for the project or portion of the project, provided the property which is subject to the fee is leased or subleased, by the time the fee payments relating to such property begin under subsection (D)(2), to the entity or entities which will be treated as the income tax owners of the project. After the transfer of title to the county and before subsection (D)(2) fee payments begin, subsection (D)(1) fee payments must be made.

(2) Notwithstanding anything in subsections (B), (O), (P), (Q), (S)(1), and (U), a single entity, or two or more entities which are members of a controlled group (the "original transferor"), may enter into any sale-leaseback arrangement (including, without limitation, an assignment, a sublease, or similar arrangement), or succession of such arrangements, with one or more financing entities, concerning all or part of a project, regardless of the identity of the income tax owner of the property which is subject to the fee payment under subsection (D)(2), provided that such sale-leaseback is executed prior to or contemporaneously with the time that fee payments under subsection (D)(2) begin with respect to property which is the subject of a sale-leaseback. Even though income tax basis is changed for income tax purposes, neither the original transfer to the financing entity nor the later transfer from the financing entity back to the original transferor or members of its controlled group, pursuant to terms in the sale-leaseback agreement, will affect the amount of the fee due. Nothing in this subsection (S)(2) shall prohibit a sale-leaseback where income tax ownership of the property which is subject to the fee payment under subsection (D)(2) is held only by the entities identified in subsection (S)(1).

~~(3) All transfers undertaken with respect to the project to effect a financing authorized under subsection (S)(2) must meet the following requirements:~~

~~(a) The county must approve such transfer in advance.~~

(c) If the financing entity is the income tax owner of property, the financing entity will be primarily liable for the fee as to that portion of the project to which the transfer relates. The original transferor must also agree to continue to be secondarily liable for the payment of the fee as to that portion of the project to which the transfer relates.

~~(d) Subsections (O) and (U) will apply to the extent:~~

~~(i) the financing entity transfers a fee interest to anyone other than the original transferor or one or more members of its controlled group, or~~

~~(ii) the lease to the original transferor is terminated and the fee interest is not transferred back to the original transferor or one or more members of its controlled group.~~

In addition, within ninety days of the occurrence of items (i) and (ii) in the immediate preceding sentence, the original transferor must pay the county any present value differential as defined in subsection (O)(5).

~~(4) For purposes of this subsection (S):~~

~~(a) The income tax owner of property shall mean the entity or entities which are entitled to depreciation deductions for such property for South Carolina income tax purposes.~~

~~(b) Financing entity shall include any entity or entities.~~

~~(c) Fee interest shall include any fee interest as defined in subsection (O) and any group fee interest as defined in subsection (P).~~

~~(5) The manner in which an arrangement is reported under generally accepted accounting principles shall not adversely affect the authorization of such an arrangement under this section.~~

(T) No inducement agreement, millage rate agreement, or lease agreement, nor the rights of any entity pursuant to any such agreement, including without limitation the availability of the subsection (D)(2) fee, shall be adversely affected if the bonds issued pursuant to any such agreement are purchased by one or more of the entities which are or become parties to any such agreement.

(U) Notwithstanding any other provision of this section to the contrary, if at any time following the period provided in subsection (C)(2), the investment based on income tax basis without regard to depreciation falls below the eighty-five million dollar minimum investment to which the fee relates and is held by an entity or controlled group of entities, the fee provided in subsection (D)(2) is no longer available and the investor is required to make the payments which are due under Section 4-29-60 for the remainder of the lease period.

(1) Notwithstanding any other provision of this section, if an investor fails to make the minimum investment required under subsection (D)(2) within the time provided in subsection (C)(2), then if and to the extent allowed pursuant to an applicable agreement between the investor and the county, the investor is entitled to the benefits of Chapter 12 of this title. Otherwise, the fee provided in subsection (D)(2) is no longer available and the investor is required to make the payments which are due under Section 4-29-60 for the remainder of the lease period.

(2) Notwithstanding any other provision of this section, if at any time following the period provided in subsection (C)(2), the investment based income tax basis without regard to depreciation falls below the forty-five million dollar minimum investment to which the fee relates and is held by an entity or controlled group of entities, then if and to the extent allowed pursuant to any applicable agreement between the investor and the county, the investor is entitled to the benefits provided under Chapter 12 of this title. Otherwise, the fee provided in subsection (D)(2) is no longer available and the investor is required to make the payments which are due under Section 4-29-60 for the remainder of the lease period.

B.(1) Section 4-29-67(Z) of the 1976 Code, as added by Act 497 of 1994, is amended to read:

"(Z) Reserved. ~~Notwithstanding any provision of Section 4-29-60 or this section:~~

(1) If at least two hundred new full-time jobs are created within the time period for qualifying expenditures set forth in subsection (I), the minimum level of investment required in order for property to qualify for the payment in lieu of taxes (fee) as provided in this section is sixty million dollars.

(2) If at least three hundred new full-time jobs are created within the time period for qualifying expenditures set forth in subsection (I), the minimum level of investment required in order for property to qualify for the payment in lieu of taxes (fee) as provided in this section is forty million dollars.

(3) If at least four hundred new full-time jobs are created within the time period for qualifying expenditures set forth in subsection (I), the minimum level of investment required in order for property to qualify for the payment in lieu of taxes (fee) as provided in this section is twenty million dollars.

~~(4) If the dollar amount in item (1), (2), or (3) applies, the applicable amount is substituted for each reference in this section to eighty-five million dollars.~~

~~(5) For purposes of this subsection, the terms 'full-time' and 'new job' are defined as provided in Section 12-7-1220.~~"

(2) This item is effective January 1, 1996.

C. The amendments to Section 4-29-67 of the 1976 Code contained in this section are effective for inducement resolutions, inducement agreements, millage rate agreements, and lease agreements with regard to projects for which lease agreements are entered into after December 31, 1995. However, the provisions affecting Section 4-29-67(B)(3), (B)(4)(b)(iii), (H), (K)(1)(c), (O), and (U) of the 1976 Code are effective for inducement resolutions, inducement agreements, millage rate agreements, and lease agreements with regard to projects for which lease agreements have been entered into on or before December 31, 1995, if the investor and the county agree to modify the agreement to allow these provisions to apply to their agreement. However, except as provided in Section 4-29-67(H) of the 1976 Code, no amendment to an inducement agreement or millage rate agreement may reduce the millage rate, discount rate, or assessment ratio under such agreements.

SECTION 9. A. Section 12-6-2320(B) of the 1976 Code, as last amended by Act 32 of 1995, is further amended to read:

"(B) (1) For the purposes of this chapter, the department may enter into an agreement with the taxpayer establishing the allocation and apportionment of the taxpayer's income for a period not to exceed five years, if the following conditions are met:

~~(1)~~ (a) the taxpayer is planning a new facility in this State or an expansion of an existing facility;

~~(2)~~(b) the taxpayer asks the department to enter into a contract under this subsection reciting an allocation and apportionment method; and

~~(3)~~(c) after reviewing the taxpayer's proposal and planned new facility or expansion, the Advisory Coordinating Council for Economic Development certifies that the new facility or expansion will have a significant beneficial economic effect on the region for which it is planned and that its benefits to the public exceed its costs to the public. It is within the Advisory Coordinating Council for Economic Development's sole discretion to determine whether a new facility or expansion has a significant economic effect on the region for which it is planned.

(2) For the purposes of this subsection the word 'taxpayer' includes any one or more of the members of a controlled group of corporations authorized to file a consolidated return under Section 12-6-5020."

B. This section is effective April 4, 1995.

SECTION 10. A. Section 12-6-3360 of the 1976 Code, as last amended by an act of 1996 bearing ratification number 234, is further amended to read:

"Section 12-6-3360. (A) Taxpayers that operate manufacturing, tourism, processing, warehousing, distribution, research and development, ~~and~~ corporate office, and qualifying service-related facilities are allowed an annual job tax credit as provided in this section. Credits under this section ~~can~~ may be claimed against income taxes imposed by Sections 12-6-510 or ~~Section~~ 12-6-530, and insurance premium taxes imposed pursuant to Chapter 7 of Title 38, and are limited in use to fifty percent of the taxpayer's South Carolina ~~corporate~~ income tax, or insurance premium tax liability. In computing any tax payable by a taxpayer under Section 38-7-90, the credit allowable under this section must be treated as a premium tax paid under Section 38-7-20.

(B) The department shall rank and designate the state's counties by December thirty-first each year using data from the South Carolina Employment Security Commission and the United States Department of Commerce. The counties are ranked using data from the most recent thirty-six month period with equal weight given to unemployment rate and per capita income as follows:

(1) The ~~sixteen~~ twelve counties with a combination of the highest unemployment rate and lowest per capita income are designated ~~less~~ least developed counties.

(2) The ~~fifteen~~ twelve counties with a combination of the next highest unemployment rate and next lowest per capita income are designated ~~moderately~~ under developed counties.

(3) The ~~fifteen~~ eleven counties with a combination of the ~~lowest~~ next highest unemployment rate and the ~~highest~~ next lowest per capita income are designated moderately developed counties.

(4) The eleven counties with a combination of the lowest unemployment rate and the highest per capita income are designated developed counties. The designation by the department is effective for corporate taxable years which begin after the date of designation.

(5)(a) A county, any portion of which is located within twenty miles of the boundaries of an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), shall receive the benefits of the next increased credit designation for five years beginning with the year in which the military installation or federal facility became an applicable military installation or applicable federal facility as defined in Section 12-6-3450(1), with the additional requirement that the military installation must have reduced employment on the installation of at least three thousand employees.

(b) For a county in which is located an applicable military installation or applicable federal facility meeting the requirements for the increased credit provided in subitem (a) of this item, the credit allowed is two tiers higher than the credit for which the county would otherwise qualify for five years beginning with the year the installation or facility meets the requirements.

(C) Subject to the conditions provided in subsection (N) of this section, a job tax credit is allowed for five years beginning in year two after the creation of the job for each new full-time job created if the minimum level of new jobs is maintained. The credit is only available to taxpayers that increase employment by ten or more full-time jobs, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ten. The amount of the initial job credit ~~and the minimum level of new jobs required~~ is as follows:

(1) ~~One~~ Four thousand five hundred dollars for each new full-time job created in ~~less~~ least developed counties. The credit is only available to taxpayers that increase employment by ten or more, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ten.

(2) ~~Six~~ Three thousand five hundred dollars for each new full-time job created in ~~moderately~~ under developed counties. The credit is only available to taxpayers that increase employment by eighteen or more, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of eighteen.

(3) ~~Three~~ Two thousand five hundred dollars for each new full-time job created in moderately developed counties. The credit is only available to taxpayers that increase employment by fifty or more, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of fifty.

(4) One thousand five hundred dollars for each new full-time job created in developed counties.

(D) If the taxpayer qualifying for the new jobs credit under subsection (C) creates additional new full-time jobs in years two through six, the taxpayer may obtain a credit for those new jobs for five years following the year in which the job is created. The amount of the credit for each new full-time job is the same as provided in subsection (C).

(E) Taxpayers which qualify for the job tax credit provided in subsection (C) and which are located in a business or industrial park jointly established and developed by a group of counties pursuant to Section 13 of Article VIII of the Constitution of this State are allowed:

(1) the credit in subsections (B) and (C) based on the location of any county in the group which qualifies for the largest credit regardless of whether the corporation is actually located in another of the participating counties; and

~~(2)~~ an additional ~~five hundred~~ one thousand dollar credit for each new full-time job created. This additional credit is permitted for five years beginning in the taxable year following the creation of the job.

(F) The number of new and additional new full-time jobs is determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding in the applicable county for the taxable year with the monthly average in the prior taxable year. For purposes of calculating the monthly average number of full-time employees in the first year of operation in this State, a taxpayer may use the actual months in operation or a full twelve-month period. If a taxpayer's business is only in operation for less than twelve months a year, the number of new and additional new full-time jobs is determined using the monthly average for the months the business is in operation.

(G) Except for credits carried forward under subsection (H), the credits available under this section are only allowed for the job level that is maintained in the taxable year that the credit is claimed. If the job level for which a credit was claimed decreases, the five-year period for eligibility for the credit continues to run.

(H) A credit claimed under this section but not used in a taxable year may be carried forward fifteen years from the taxable year in which the credit is earned by the taxpayer. Credits which are carried forward must be used in the order earned and before jobs credits claimed in the current year.

(I) The merger, consolidation, or reorganization of a taxpayer where tax attributes survive does not create new eligibility in a succeeding taxpayer, but unused job tax credits may be transferred and continued by the succeeding taxpayer subject to the limitations of Section 12-6-3320. In addition, a taxpayer may assign its rights to its jobs tax credit to another taxpayer if it transfers all, or substantially all, of the assets of the taxpayer or all, or substantially all, of the assets of a trade or business or operating division of a taxpayer related to the generation of the jobs tax credits to that taxpayer if the required number of new jobs is maintained for that amount of credit. No taxpayer is allowed a jobs tax credit if the net employment increase for that taxpayer falls below ten ~~for a less developed county, eighteen for a moderately developed county, or fifty for a developed county~~. The appropriate agency shall determine whether or not qualifying net increases or decreases have occurred and may require reports, promulgate rules or regulations, and hold hearings needed for substantiation and qualification.

(J) For a taxpayer which plans a significant expansion in its labor forces at a location in this State, the appropriate agency shall prescribe certification procedures to ensure that the taxpayer can claim credits in future years even if a particular county is removed from the list of ~~less~~ least developed, under developed or moderately developed counties.

(K) (1) In addition to those credits allowed under subsection (C) of this section a corporation, partnership, or limited liability company that qualifies for a credit under this section as an S corporation, partnership, or limited liability company, entitles each shareholder of the S corporation, partner of the partnership, or member of the limited liability company to a nonrefundable credit against taxes imposed pursuant to Section 12-6-510.

(2) The amount of the credit allowed a shareholder, partner, or owner of a limited liability company by this subsection is equal to the shareholder's percentage of stock ownership, partner's interest in the partnership, or member's interest in the limited liability company for the taxable year multiplied by the amount of the credit the taxpayer would have been entitled to if it were taxed as a corporation.

(3) A credit claimed under this subsection but not used in a taxable year may be carried forward for ~~ten~~ fifteen years from the close of the tax year in which the credit is earned by the S corporation, partnership, or limited liability company. However, the credit established by this section taken in one tax year may not exceed fifty percent of the taxpayer's tax liability under Section 12-6-510.

(L) Notwithstanding any other provision of this section, a county with a population under twenty thousand as determined by the ~~1990~~ most recent United States Census shall receive the next increased credit designation ~~is considered a less developed county~~ for purposes of the credit allowed by this section.

(M) As used in this section:

(1) 'Taxpayer' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity which is subject to South Carolina taxes as contained in Sections 12-6-510 and 12-6-530 and Chapter 7 of Title 38.

(2) 'Appropriate agency' means the Department of Revenue and Taxation for corporations subject to tax under Section 12-6-530 and the Department of Insurance for corporations subject to the premium tax under Chapter 7 of Title 38.

(3) 'New job' means a job created in this State at the time a new facility or an expansion is initially staffed. The term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility. The term 'new job' also includes existing jobs at a facility of an employer which are reinstated after the employer has rebuilt the facility due to its destruction by accidental fire, natural disaster, or act of God. Destruction for purposes of this provision means that more than fifty percent of the facility was destroyed. The year of reinstatement is considered to be the year of creation of the job. All such jobs so reinstated qualify for the credit under this section, and no comparison is required to be made between the number of full-time jobs of the employer in the taxable year and the number of full-time jobs of the employer with the corresponding period of the prior taxable year.

(4) 'Full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was hired initially for or transferred to the South Carolina facility. For the purposes of this section, two half-time jobs are considered one full-time job. A 'half-time job' is a job requiring a minimum of twenty hours of an employee's time a week for the entire normal year of the company's operations or a job requiring a minimum of twenty hours of an employee's time a week for a year in which the employee was hired initially for or transferred to the South Carolina facility.

(5) 'Manufacturing facility' means an establishment where tangible personal property is produced or assembled.

(6) 'Processing facility' means an establishment engaged in services such as manufacturing-related, computer-related, communication-related, energy-related, or transportation-related services, but the term 'processing facility' does not include an establishment where retail sales of tangible personal property or services are made to retail customers. The term also includes a business entity engaged in processing agricultural, aquacultural, or maricultural products.

(7) 'Warehousing facility' means an establishment where tangible personal property is stored but does not include any establishment where retail sales of tangible personal property are made to retail customers.

(8) 'Distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers. The term does not include an establishment where retail sales of tangible personal property are made to retail customers on more than twelve days a year except for a facility which processes customer sales orders by mail, telephone, or electronic means, if the facility also processes shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside of South Carolina.

(9) 'Research and development facility' means an establishment engaged in laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improving existing products. The term does not include an establishment engaged in efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.

(10) 'Corporate office facility' means the location where corporate managerial, professional, technical, and administrative personnel are domiciled, and employed, and where corporate financial, personnel, legal, technical, support services, and other business functions are handled. Support services include, but are not limited to, claims processing, data entry, word processing, sales order processing, and telemarketing. The term does not include an establishment where retail sales of tangible personal property or retail services are made to retail customers except for a facility which processes customer sales orders by mail, telephone, or electronic means, if the facility also processes shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside of this State.

(11) The terms 'retail sales' and 'tangible personal property' for purposes of this section are defined in Chapter 36 of this title.

(12) 'Tourism facility' means an establishment used for a theme park; amusement park; historical, educational, or trade museum; botanical garden; cultural center; theater; motion picture production studio; convention center; arena; auditorium; or a spectator or participatory sports facility; and similar establishments where entertainment, education, or recreation is provided to the general public. Tourism facility also includes new hotel and motel construction, except that to qualify for the credits allowed by this section and regardless of the county in which the facility is located, the number of new jobs that must be created by the new hotel or motel is twenty or more. It does not include that portion of an establishment where retail merchandise or retail services are sold directly to retail customers.

(13) 'Qualifying service-related facility' means (a) an establishment engaged in an activity or activities listed under the Standard Industrial Classification (SIC) Code 80 according to the Federal Office of Management and Budget Standard Industrial Classification Manual, 1987 edition; or, (b) a business for which over fifty percent of the gross receipts are from providing services, as opposed to manufacturing or selling or dealing in tangible personal property and which creates at least two hundred fifty jobs at a single location.

(N) The maximum aggregate credit that may be claimed in any tax year for a single employee under this section and Section 12-6-3470(A)(1) is five thousand five hundred dollars."

B. The amendments to Section 12-6-3360 of the 1976 Code as amended by this section are effective for taxable years beginning after 1995, and in the case of qualifying jobs created after 1995, these jobs are not subject to a pre-existing revitalization agreement. For the purposes of Section 12-6-3360(B)(5) of the 1976 Code as amended by this section, the five-year period begins at the later of the date specified in Section 12-6-3360(B)(5) or the general effective date of this act. The provisions of Section 12-10-70(1)(b) of the 1976 Code, as amended by Act 231 of 1996, relating to the transferring of jobs, continue to apply for an affected project notwithstanding the repeal of Section 12-10-70 of the 1976 Code contained in this act.

SECTION 11. A. Section 12-6-3440 of the 1976 Code, as last amended by Act 40 of 1995, is further amended to read:

"Section 12-6-3440. (A) A taxpayer who employs persons who are residents of this State in any capacity may claim as a credit against his state income tax, bank tax, or premium tax liability an amount equal to fifty percent of his capital expenditures in this State but no more than one hundred thousand dollars for costs incurred in establishing a child care program for his employees. A credit claimed under this section, but not used or available for use in a taxable year, may be carried forward for the next ten taxable years from the close of the tax year in which the expenditures are made until the amount of the credit is taken.

(B) For purposes of this section, 'expenditures for costs incurred in establishing a child care program' includes, but is not limited to, expenditures, including mortgage or lease payments, for playground and classroom equipment, kitchen appliances, cooking equipment, real property, including improvements in this State, and donations to a nonprofit corporation as defined in Internal Revenue Code Section 501(c)(3) for purposes of establishing a child care program. If credit is taken for donations by a corporation, a deduction to arrive at the net income of the corporation is not allowed. The program and operation of the program must meet the licensing, registration, or certification standards prescribed by law.

(C) The taxpayer under subsection (A) also is allowed as a credit against his state income tax, bank tax, or premium tax liability an amount not exceeding fifty percent of the child care payments incurred by the taxpayer to operate a child care program for his employees in this State, or made directly to licensed or registered independent child care facilities in the name of and for the benefit of an employee in this State of the taxpayer, which employee's children are kept at the facility during the employee's working hours. The payment may not exceed the amount charged to other children of like age and abilities of individuals not employed by the taxpayer. The credits allowed by this subsection may not exceed a maximum of three thousand dollars for each employee.

Where an employee in this State chooses to utilize the provisions of this subsection which authorize direct payments to licensed child care facilities not operated by the employer, expenses attendant to the organization and administration of such a direct payment program incurred in the first year are also considered start-up expenses or expenditures for establishing a child care program for purposes of the fifty percent tax credit for start-up expenses authorized by subsection (A).

(D) For purposes of the credits allowed by subsection (B), the taxpayer is required to retain information concerning the child care facility's federal identification number, license or registration number, payment amount, and in whose name and for whose benefit the payments were made. In addition, a taxpayer is allowed to include in the amount of the payment for calculation of the credit any administrative cost associated with payment to licensed or registered independent child care facilities not to exceed two percent.

(E) The credits established by this section taken in any one tax year are also limited to an amount not greater than fifty percent of a taxpayer's state income tax, bank tax, or premium tax liability for that year.

(A)(1) A taxpayer located in this State may claim a credit against state income tax, bank tax, or premium tax liability for all expenditures incurred, acting independently or jointly with others, in establishing a child care program in this State for children of employees in this State.

(2) The amount of the credit is equal to fifty percent of all the expenditures incurred, but may not exceed a maximum of one hundred thousand dollars in total. Any unused credit may be carried forward for ten years.

(B) For purposes of this section, 'expenditures incurred in establishing a child care program', include:

(1) payments of mortgage and lease expenses for child care facilities;

(2) payments for playground and classroom equipment;

(3) payments for kitchen appliances and cooking equipment;

(4) payments for real property located in this State, including any improvements thereto that are used to provide child care facilities; and,

(5) donations to a nonprofit corporation as defined in Internal Revenue Code Section 501(c)(3) for purposes of establishing a child care program in this State.

If the credit allowed under subsection (A) is claimed for donations made to a nonprofit corporation, a taxpayer may not also claim a charitable deduction for the amounts donated.

(C)(1) Taxpayers who pay for child care for their employees in this State are also entitled to an additional credit for any of the following:

(a) Expenses incurred by the taxpayer to operate a child care program for taxpayers' employees' children;

(b) Payments made directly to a licensed or registered independent child care facility pursuant to a written plan in the name of, and for the benefit of, taxpayers' employees' children; or

(c) Payments made by a taxpayer directly to an employee pursuant to a written plan to reimburse employees for payments made to a licensed or registered independent child care facility for child care provided to taxpayers' employees' children.

(2) In order to qualify for the credit, the employee must work in this State.

(3) The payments made under (1)(b) and (1)(c) above must be for the care of children during the employee's working hours and may not exceed the amount charged to other children of individuals not employed by the taxpayer.

(4) A taxpayer is allowed to include in the amount of payment for calculation of the credit, any administrative costs associated with the payments made under subsections (1)(b) and (1)(c) above, however, these administrative expenses may not exceed two percent of the total amount paid under (1)(b) and (1)(c) above.

(5) The credit allowed by this subsection is equal to fifty percent of the expenses incurred or payments made during the tax year, but may not exceed a maximum of three thousand dollars for each employee.

(D) The credits established by this section taken in any one tax year are also limited to an amount not greater than fifty percent of a taxpayer's state income tax, bank tax, or premium tax liability for that year.

(E) For purposes of the credit allowed by items(C)(1) above, the taxpayer is required to retain information concerning the child care facility's federal identification number, license or registration number, payment amount, and in whose name and for whose benefit the payments were made or reimbursed."

B. This section is effective for tax years beginning after 1995.

SECTION 12. A. Items (1) and (2) of Section 12-6-3450(A) of the 1976 Code, as added by Act 76 of 1995, are amended to read:

"(1)(a) 'Applicable federal military installation' means a federal military installation or other facility which is closed or realigned under:

~~(a)~~(i) The Defense Base Closure and Realignment Act of 1990;

~~(b)~~(ii) Title II of the Defense Authorization Amendments and Base Closure and Realignment Act; or

~~(c)~~(iii) Section 2687 of Title 10, United States Code.

(b) 'Applicable federal facility' means a federal facility that has reduced its permanent employment by three thousand or more jobs after December 31, 1990.

(2) 'Economic impact region' means a county or municipality, any portion of which is located within twenty-five miles of the boundaries of an applicable federal military installation or applicable federal facility, and any area not otherwise included as part of the economic impact region if the ~~Division of State Development of the~~ Department of Commerce determines the area to be adversely impacted by the closing or realignment of an applicable federal military installation or applicable federal facility."

B. This section is effective for taxable years beginning after 1995.

SECTION 13. A. Section 12-6-3470 of the 1976 Code, as added by Act 102 of 1995, is amended to read:

"Section 12-6-3470. (A) A taxpayer, who employs a person who ~~within twelve months of becoming employed~~ received Aid to Families with Dependent Children ~~and who continuously has remained employed for twelve months is allowed a credit against taxes due under this chapter for wages paid to the employee in an amount equal to~~ payments within this State for three months before becoming employed is eligible for an income tax credit of:

(1) twenty percent of the wages ~~up to five thousand dollars~~ paid ~~for the first year~~ to the employee for each full month of employment for the first twelve months of employment;

(2) fifteen percent of the wages ~~up to five thousand dollars~~ paid ~~for the second year~~ to the employee for each full month of employment during the second twelve months of employment;

(3) ten percent of the wages ~~up to five thousand dollars~~ paid ~~for the third year~~ to the employee for each full month during the third twelve months of employment.

The maximum aggregate credit that may be claimed in a tax year for a single employee under this subsection and Section 12-6-3360 is five thousand five hundred dollars.

(B) In addition to the credits provided for in subsection (A) and Section 12-6-3360, a taxpayer who employs a person who received AFDC payments within this State for three months before becoming employed and employs that person to work full time in a least developed county, as defined in Section 12-6-3360, is allowed a credit in an amount equal to one hundred seventy-five dollars for each full month during the first thirty-six months of employment.

(C) The income tax credit provided by subsection (A) ~~shall~~ is not be allowed unless the taxpayer also makes available full individual or participating family health care coverage for the benefit of each qualified employee for which the credit is ~~claimed~~ earned.

~~(C)~~ (D) The Department of Social Services and the South Carolina Employment Security Commission must make information available to employers interested in hiring AFDC recipients and must provide documentation to employers verifying a person's status as an AFDC recipient.

~~(D) This section applies to tax years beginning after 1994.~~

(E) No income tax credit provided for in subsection (A) may be taken under this section if the position filled by the former AFDC recipient was made available due to the termination or forced resignation of an employee for the purpose of obtaining the tax credit. Nothing in this section creates a private cause of action which does not otherwise exist at law.

(F) A credit claimed under this section but not used in a taxable year may be carried forward fifteen years from the taxable year in which the credit is earned."

B. This section is effective for taxable years beginning after 1995.

SECTION 14. Section 12-10-20 of the 1976 Code, as added by Act 25 of 1995, is amended by adding at the end:

"(4) The state's per capita income has not reached the United States average and certain rural, less developed counties have not experienced capital investment, per capita income, and job growth at a level equal to the state's average. The economic well-being of these areas will not be sustained without significant incentive to induce capital investment and job creation."

SECTION 15. Section 12-10-30(7) of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"(7) Reserved.'Services' means engagement primarily in an activity or activities listed under the Standard Industrial Classification (SIC) Code 80 according to the Federal Office of Management and Budget Standard Industrial Classification Manual 1987 edition."

SECTION 16. Section 12-10-40 of the 1976 Code, as last amended by Act 145 of 1995, is further amended to read:

"Section 12-10-40. Annually, by December thirty-first, using the most current data available, the State Budget and Control Board shall designate the enterprise zones within this State as provided in this section. Each enterprise zone must be located in this State and meet one of the following criteria:

(1) consist of a census tract in which either the median household income is eighty percent or less of the state average, or at least twenty percent of households are below the poverty level according to the most recent United States census;

~~(2) consist of a county classified as less developed pursuant to Section 12-7-1220;~~

(3) be located in a federal military base or installation which was closed, or designated to be closed, or in a federal facility in which the permanent employment was reduced by three thousand or more jobs after December 31, 1990;

~~(4) consist of a census tract with at least one hundred manufacturing jobs, at least fifty percent of which are textile and apparel jobs;~~

(5) consist of a census tract where a manufacturing facility has closed or experienced permanent layoffs and notified the Employment Security Commission under the federal Worker Adjustment and Retaining Notification (WARN) Act of 1988. The enterprise zone designation applies only for five years after the date of closure or layoff, and the number of jobs permanently lost must equal twenty-five percent or more of the total manufacturing workforce in the tract at the time the layoff occurred. The job loss shall have occurred no more than five years prior to the effective date of this chapter, except in any census tract where a catastrophic loss of one thousand or more jobs from a single employer has occurred since 1980 and fewer than half the job losses have been replaced. Any such tract will remain an enterprise zone until at least half the catastrophic job losses have been replaced. Where a municipality in which the catastrophic job loss occurred is split by census tracts, each tract containing any part of the municipality meets the catastrophic job loss criteria;

(6) consist of a census tract, any part of which is within twenty miles of a federal facility that has reduced its permanent civilian employment by three thousand or more jobs after December 31, 1990, for ten years after the effective date of this chapter;

~~(7) consist of a census tract in which a penal institution operated by the South Carolina Department of Corrections has closed; or~~

~~(8) consist of a research park established pursuant to Section 13-17-30 while the park is operated or controlled by the South Carolina Research Authority.~~ The amount of benefits available to qualified businesses is determined by the county designation as defined in Section 12-6-3360(B), in which the business is located."

SECTION 17. Section 12-10-50 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-50. To qualify for the benefits provided in this chapter, a business must be located within ~~an enterprise zone~~ this State and satisfy the following criteria:

(1) it must be primarily engaged in a business of the type identified in Section ~~12-7-1220,~~ 12-6-3360 ~~or in the alternative it must be primarily engaged in a business providing services as defined in Section 12-10-30~~;

(2) the business ~~in the enterprise zone~~ shall provide a benefits package to full-time employees which includes health care;

(3) the ~~qualifying~~ business shall enter into a revitalization agreement which is approved by the council, except that no revitalization agreement is required for a qualifying business with respect to ~~Sections 12-10-70(2), 12-10-70(3), and~~ Section 12-10-80(D); and

(4) the council shall determine that the available incentives are appropriate for the project, and the council shall certify ~~to the department~~ that the total benefits of the project exceed the costs to the public, and that the ~~qualifying~~ business otherwise fulfills the requirements of this chapter. No provision of this chapter must be construed to allow the council to negotiate a fee-in-lieu of property taxes agreement or approve job training or retraining."

SECTION 18. A. Subsections (A) through (D) of Section 12-10-80 of the 1976 Code, as amended by an act of 1996 bearing ratification number 234, are further amended to read:

"(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)~~ (B) or (D), or both, for the purposes permitted by subsection ~~(B)~~ (C) or (D), respectively. To qualify for a job development fee, a qualifying business shall create at least ten new, full-time jobs at the South Carolina facility described in the revitalization agreement. A qualifying business may collect a job development fee under the revitalization agreement for not more than fifteen years. 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 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)~~ (C) or (D), it must be treated as misappropriated employee withholding. Employee withholding may not be retained ~~from~~ for purposes of (B) and (C) with regard to an any employee whose job was created in this State before the ~~entry~~ taxable year of the qualifying business in which it enters 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 public accountant which itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year of the retention. Each qualifying business retaining employee withholding under this section is allowed a credit against the withholding tax liability provided in Chapter 9 8 of this title otherwise owed to the State, the credit not to exceed the lesser of the amount of such tax or the aggregate amount of employee withholding retained. No employer may withhold an amount that results in any employee ever receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would otherwise receive in the absence of this chapter.

~~(B)~~ A qualifying business may collect a job development fee under the revitalization agreement for a period not to exceed fifteen years. A qualifying business must create at least ten new, full-time jobs at the South Carolina facility described in the revitalization agreement. Capital expenditures from the escrow account must be expended at the above-described facility or for utility or transportation improvements that serve this facility. The qualifying business may expend funds from the escrow account if (a) the expenditures are incurred during the term of the revitalization agreement, or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement, (b) the expenditures from the escrow account are authorized by the revitalization agreement, (c) the expenditures are approved in writing by the council and the department prior to expenditure, and (d) the expenditures are for any of the following purposes:

~~(1) training costs and facilities;~~

(2) acquiring and improving real estate whether acquired by lease, purchase, installment payment, or otherwise, the escrow account can be spent only for capital improvements made after entering a revitalization agreement;

~~(3) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;~~

~~(4) fixed transportation facilities including highway, rail, water, and air; and~~

~~(5) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations.~~

~~(C) The total amount retained from employee withholding by the qualifying business may not exceed the sum of the following amounts:~~

~~(1) two percent of the gross wages of each new employee who earns six dollars or more an hour but less than eight dollars an hour;~~

~~(2) three percent of the gross wages of each new employee who earns eight dollars or more an hour but less than ten dollars an hour;~~

~~(3) four percent of the gross wages of each new employee who earns ten dollars or more an hour but less than fifteen dollars an hour; and~~

~~(4) five percent of the gross wages of each new employee who earns fifteen dollars or more an hour.~~

~~The hourly gross wage figures set forth in this section must be adjusted annually by an inflation factor determined by the State Budget and Control Board.~~

(B) The total amount retained from employee withholding by the qualifying business may not exceed the sum of the following amounts:

(1) two percent of the gross wages of each new employee who earns six dollars or more an hour but less than eight dollars an hour;

(2) three percent of the gross wages of each new employee who earns eight dollars or more an hour but less than ten dollars an hour;

(3) four percent of the gross wages of each new employee who earns ten dollars or more an hour but less than fifteen dollars an hour; and

(4) five percent of the gross wages of each new employee who earns fifteen dollars or more an hour.

The hourly gross wage figures set forth in this section must be adjusted annually by an inflation factor determined by the State Budget and Control Board. The amount which may be retained by a qualifying business is limited by subsection (C)(6) and the revitalization agreement. The council may approve a waiver of the limits under subsection (C)(6) for qualifying businesses making a significant capital investment as defined in Section 4-12-30(D)(4) or Section 4-29-67(D)(4), except that five percent of the fees must be set aside for the Rural Infrastructure Fund.

(C) Capital expenditures from the escrow account must be expended at the above-described facility or for utility or transportation improvements that serve this facility. The qualifying business may expend funds from the escrow account if (a) the expenditures are incurred during the term of the revitalization agreement or within sixty days before the execution of a revitalization agreement, including a preliminary revitalization agreement, (b) the expenditures from the escrow account are authorized by the revitalization agreement, and (c) the expenditures are for any of the following purposes:

(1) training costs and facilities;

(2) acquiring and improving real estate whether constructed or acquired by purchase, or in cases approved by the council, acquired by lease or otherwise;

(3) improvements to both public and private utility systems including water, sewer, electricity, natural gas, and telecommunications;

(4) fixed transportation facilities including highway, rail, water, and air;

(5) construction or improvements of any real property and fixtures constructed or improved primarily for the purpose of complying with local, state, or federal environmental laws or regulations;

(6) the amount of job development fees a qualifying business may retain for its use for qualifying expenditures is limited according to the designation of the county as defined in Section 12-6-3360 as follows:

(a) one hundred percent of the maximum job development fees may be retained by businesses located in counties designated as 'least developed';

(b) eighty-five percent of the maximum job development fees may be retained by businesses located in counties designated as 'under developed';

(c) seventy percent of the maximum job development fees may be retained by businesses located in counties designated as 'moderately developed'; or

(d) fifty-five percent of the maximum job development fees may be retained by businesses located in counties designated as 'developed'.

The council shall certify to the department the maximum job development fee for each qualifying business. After receiving certification, the department shall remit an amount equal to the difference between the maximum job development fee and the job development fee actually retained to the State Rural Infrastructure Fund as defined and provided in Section 12-10-85.

(D) Subject to the conditions in this section, any qualifying business in ~~an enterprise zone~~ this State may negotiate with the council to retain from employee withholding an amount equal to five hundred dollars a year for each production employee being retrained, where this retraining is necessary for the qualifying business to remain competitive or to introduce new technologies. This retraining must be approved by and performed by the technical college under the jurisdiction of the State Board for Technical and Comprehensive Education serving the designated enterprise zone. The technical college may provide the retraining program delivery directly or contract with other training entities to accomplish the required training outcomes. In addition to the yearly limits, the amount retained from employee withholding may not exceed two thousand dollars over five years for each production employee being retrained. Additionally, the qualifying business must match on a dollar-for-dollar basis the amount retained from employee withholding. The total amount retained from withholding and all of the qualifying business' matching funds must be paid to the technical college that provides the training to defray the cost of the training program. Any training cost in excess of the job development fees and matching funds is the responsibility of the qualifying business based on negotiations with the technical college."

B. Section 12-10-80 of the 1976 Code, as last amended by an act of 1996 bearing ratification number 234, is further amended by adding at the end:

"(H) Job development fees may not be retained by a governmental employer who employs persons at a closed or realigned military installation as defined in Section 12-10-85(E)."

SECTION 19. Section 12-10-90 of the 1976 Code, as added by Act 25 of 1995, is amended to read:

"Section 12-10-90. If a qualifying business fails to achieve the level of capital investment or employment set forth in the revitalization agreement, the ~~department~~ council may terminate the revitalization agreement and reduce or suspend all or any part of the incentives until the time the anticipated capital investment and employment levels are met. However, these incentives must not be suspended retroactively. The council shall provide in the revitalization agreement entered into in connection with a project for the levels of capital investment and employment which must be achieved and for the time period in which the levels must be achieved."

SECTION 20. Section 12-14-30(3)(b) of the 1976 Code, as amended by an act of 1996 bearing ratification number 234, is further amended to read:

"(b) Reserved. a manufacturing facility that has closed or experienced permanent layoffs and notified the Employment Security Commission under the federal Worker Adjustment and Retraining Notification (WARN) Act of 1988. The number of jobs lost must equal twenty-five percent or more of the total workforce in the census tract in which the facility is located at the time the layoff occurred. The job loss must have occurred no more than five years before April 4, 1995, except in any census tract where a catastrophic loss of one thousand or more jobs from a single employer has occurred since 1980 and fewer than half the jobs have been replaced."

SECTION 21. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3490. (A) Any taxpayer claiming one or more credits under this chapter in connection with the construction, establishment, or operation of a distribution facility as defined under Section 12-6-3360(M) that invests at least fifty million dollars beginning January 1, 1996, and ending December 31, 1998, and that, within one year after the end of the year in which the facility is placed in service, creates at least two hundred new jobs and that within five years after the end of the year in which the facility is placed in service creates a total of at least four hundred new jobs, may apply any and all such credits against any state taxes, license fees, and other assessments imposed under this title. These credits may be carried forward for no more than fifteen years from the taxable year in which the credit is earned by the taxpayer. Each dollar of credit may be used only once.

(B) Subject to the limitations in this subsection, the credits earned in subsection (A) are refundable. This credit is refundable only to the extent it cannot be used against the taxpayer's tax liabilities in any given year. The total amount the taxpayer can receive during its existence as a refund under this subsection is the amount the taxpayer actually paid to the State in sales and use taxes after March 1, 1996, and on or before the tenth anniversary of the date on which the facility described in subsection (A) was placed in service.

(C) Each user of one or more of the provisions of subsection (A) or (B) may apply for and receive a sales and use tax exemption certificate and, for purposes of this section, is deemed to be the taxpayer under Chapter 36 of this title. This exemption certificate has the same effects as a resale certificate has under Section 12-36-950.

(D) Each taxpayer may utilize this section on or before meeting the minimum investment and job requirements of subsection (A) so long as the taxpayer notifies the department of its intent to do so on or before the time the taxpayer files a return utilizing this section. If the minimum investment and job requirements are not met within the time specified in subsection (A), the taxpayer is liable to the department in an amount equal to the total taxes that would have been due to the department in the absence of this section. Any such amount is subject to interest as provided in this title.

(E) For a taxpayer who meets the requirements of subsection (A), the running of the statute of limitations provided by subsections (A) through (F) of Section 12-54-85 is suspended from January 1, 1996, until ten years after the facility described in subsection (A) was placed in service."

SECTION 22. Section 4-29-68(A)(2) of the 1976 Code, as last amended by Act 125 of 1995, is further amended to read:

"(2) The bonds are issued solely for the purpose of paying the cost of designing, acquiring, constructing, improving, or expanding the infrastructure serving the issuer and for improved or unimproved real estate used in the operation of a manufacturing or commercial enterprise in order to enhance the economic development of the issuer and costs of issuance of the bonds. ~~For purposes of this section, infrastructure includes improved and unimproved real property.~~ Bonds issued pursuant to this section to finance the acquisition of real or personal property may be additionally secured by a mortgage of that real or personal property."

SECTION 23. A. Section 12-36-2120 of the 1976 Code, as amended, is further amended by adding the following new items to be appropriately numbered to read:

"( ) Material handling systems and material handling equipment including, but not limited to, racks, whether or not the racks are used to support a facility structure or part thereof, used in the operation of a distribution facility or a manufacturing facility. In order to qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least forty million dollars in any real or personal property in this State over the five-year period beginning on the date provided by the taxpayer to the department in its notices.

( ) Parts and supplies used by persons engaged in the business of repairing or reconditioning aircraft owned by or leased to the federal government or commercial air carriers. This exemption does not extend to tools and other equipment not attached to or that do not become a part of the aircraft."

B. The first unnumbered item added in Section 12-36-2120 of the 1976 Code by subsection A of this section takes effect March 1, 1996. The second unnumbered item so added takes effect on the first day of the second month following approval by the Governor.

SECTION 24. Section 12-37-220(B)(33) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(33) All personal property including aircraft of an air carrier ~~including aircraft used in operating~~ which operates an air carrier hub terminal facility in this State for a period of ten consecutive years from the date of qualification, if its qualifications are maintained. An air carrier hub terminal facility is defined in Section 55-11-500."

SECTION 25. Notwithstanding any other provision of law, Section 12-10-80(A) of the 1976 Code job development fees may be retained for employees hired after December 31, 1995, if the qualified business qualifies under Section 4-12-30(D)(4) of the 1976 Code or Section 4-29-67(D)(4) of the 1976 Code and enters into a revitalization agreement applying to these employees before August 1, 1996.

SECTION 26. Section 12-10-70 of the 1976 Code is repealed.

SECTION 27. With respect to the amendments in this Part made to Section 12-10-80 of the 1976 Code and the implementation of Section 12-10-85 of the 1976 Code, as added by this act, only amounts equal to the difference between the maximum job development fee and the amount actually retained as described in Section 12-10-80 of the 1976 Code received on or after January 1, 1997, must be transferred to the State Rural Infrastructure Fund. All such amounts received before that date must be transferred to the general fund of the State.

PART III

SECTION 1. Part I of this act takes effect upon approval by the Governor.

SECTION 2. Except where otherwise specifically provided in Part II of this act, Part II of this act is effective upon approval by the Governor. In determining qualification for benefits available to a taxpayer, taxpayers entering into revitalization agreements on or before December 31, 1996, may elect to:

(1) use Sections 12-10-10 through 12-10-90 of the 1976 Code as they existed prior to amendment by Part II; or

(2) use the provisions of Part II.

However, regardless of the election made by the taxpayer under this section, all contracts with schools made pursuant to Section 12-10-80(D) of the 1976 Code after the effective date of Part II of this act will be governed by Part II. Taxpayers entering into revitalization agreements on or after January 1, 1997, will be governed by Part II of this act./

Renumber sections to conform.

Amend totals and title to conform.

Rep. HARRELL explained the amendment.

POINT OF ORDER

Rep. SHEHEEN raised the Point of Order that Amendment No. 3 was out of order as it was not germane. He further stated that the amendment was about 40 pages long and affected about 13 different sections.

Rep. HARRELL argued that all of the changes within the state income tax would be germane under Rule 9.3

The SPEAKER sustained the Point of Order and ruled the amendment out of order.

The Bill was read the second time and ordered to third reading.

S. 1219--DEBATE ADJOURNED

The following Bill was taken up.

S. 1219 -- Education Committee: A BILL TO AMEND SECTION 59-35-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO KINDERGARTEN PROGRAMS, SO AS TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 1996-97, THE BOARD OF TRUSTEES OF A DISTRICT SHALL IMPLEMENT FULL-DAY AS WELL AS HALF-DAY FIVE-YEAR-OLD KINDERGARTEN PROGRAMS, TO PROVIDE THAT PARENTS OF CHILDREN WHO ARE ELIGIBLE TO ATTEND FIVE-YEAR-OLD KINDERGARTEN MAY ELECT AT THEIR OPTION EITHER THE FULL-DAY OR HALF-DAY PROGRAM FOR THEIR CHILDREN, TO REQUIRE CERTAIN NOTICES FOR PURPOSES OF THESE KINDERGARTEN PROGRAMS, AND TO PROVIDE FOR THE MANNER IN WHICH CHILDREN ATTENDING THESE PROGRAMS SHALL BE COUNTED FOR PURPOSES OF COMPUTING AVERAGE DAILY MEMBERSHIP; AND TO AMEND THE 1976 CODE BY ADDING SECTION 59-35-20 SO AS TO PROVIDE PROCEDURES FOR SCHOOL DISTRICTS AND SCHOOLS TO OBTAIN WAIVERS FROM THE ABOVE REQUIREMENTS THAT FULL-DAY AND HALF-DAY FIVE-YEAR-OLD KINDERGARTEN PROGRAMS BE ESTABLISHED.

Rep. YOUNG-BRICKELL moved to adjourn debate upon the Bill until Thursday, May 30.

Rep. SCOTT moved to table the motion and demanded the yeas and nays, which were taken resulting as follows:

Yeas 47; Nays 58

Those who voted in the affirmative are:

Anderson               Bailey                 Baxley
Breeland               Brown, G.              Brown, J.
Carnell                Cave                   Clyburn
Cobb-Hunter            Cotty                  Cromer
Delleney               Harris, J.             Harris, P.
Hines, J.              Hines, M.              Hodges
Howard                 Jennings               Keyserling
Kinon                  Kirsh                  Lee
Martin                 McAbee                 McCraw
McElveen               McKay                  McMahand
Moody-Lawrence         Neilson                Phillips
Rhoad                  Rogers                 Scott
Sheheen                Shissias               Stoddard
Tucker                 Walker                 Whipper, L.
Whipper, S.            White                  Wilder
Williams               Wright

Total--47

Those who voted in the negative are:

Allison                Askins                 Beck
Boan                   Brown, H.              Cain
Cato                   Chamblee               Dantzler
Davenport              Easterday              Felder
Fleming                Fulmer                 Gamble
Govan                  Hallman                Harrell
Hutson                 Keegan                 Kelley
Klauber                Knotts                 Koon
Lanford                Law                    Limbaugh
Limehouse              Littlejohn             Loftis
Marchbanks             Mason                  Meacham
Quinn                  Rice                   Richardson
Riser                  Robinson               Sandifer
Seithel                Sharpe                 Simrill
Smith, D.              Smith, R.              Spearman
Stille                 Stuart                 Tripp
Trotter                Vaughn                 Waldrop
Wells                  Whatley                Wilkins
Witherspoon            Wofford                Young
Young-Brickell

Total--58

So, the House refused the table the motion.

The question then recurred to the motion to adjourn debate until Thursday, May 30, which was agreed to.

S. 1049--ORDERED TO THIRD READING

The following Bill was taken up.

S. 1049 -- Senator Rankin: A BILL TO AMEND SECTION 23-6-510 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMPOSITION OF THE SOUTH CAROLINA PUBLIC SAFETY COORDINATING COUNCIL, SO AS TO EXPAND THE MEMBERSHIP TO INCLUDE A VICTIM REPRESENTATIVE.

Reps. WILKINS, DELLENEY, LIMEHOUSE and FLEMING proposed the following Amendment No. 1 (Doc Name P:\amend\GJK\22941SD.96), which was ruled out of order.

Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

/SECTION __. Article 7, Chapter 3, Title 23 of the 1976 Code, as added by Act 497 of 1994, is amended to read:

"Article 7
Sex Offender Registry

Section 23-3-400. The intent of this article is to promote the state's fundamental right to provide for public health, welfare, and safety of its citizens. Notwithstanding this legitimate state purpose, these provisions are not intended to violate the guaranteed constitutional rights of those who have violated our nation's laws.

The sex offender registry will provide law enforcement with the tools needed in investigating criminal offenses. Statistics show that sex offenders often pose a high risk of re-offending. Additionally, law enforcement's efforts to protect communities, conduct investigations, and apprehend offenders who commit sex offenses, are impaired by the lack of information about these convicted offenders who live within the law enforcement agency's jurisdiction.

Section 23-3-410. The registry is under the direction of the chief of the State Law Enforcement Division (SLED) and ~~may be organized and structured in a manner as~~ shall contain information the chief considers ~~appropriate to ensure the availability of information regarding~~ necessary to assist law enforcement in the location of persons convicted of certain offenses. SLED shall develop and operate the registry to collect, analyze, and maintain information, to make information available to every enforcement agency in this State and in other states, and to establish a security system to ensure that only authorized ~~personnel~~ persons may gain access to information gathered under this article.

Section 23-3-420. The State Law Enforcement Division shall promulgate regulations ~~prescribing:~~

~~(1) procedures for accepting and disseminating information maintained;~~

~~(2) the confidentiality of the data and information maintained in the registry;~~

~~(3) the proper disposition of all obsolete data;~~

~~(4) forms necessary for the efficient and proper operation of the registry~~ to implement the provisions of this article. The division shall consult with the South Carolina Public Safety Coordinating Council prior to the promulgation of the regulations.

Section 23-3-430. (A) Any person, regardless of age, residing in the State of South Carolina who has been convicted, adjudicated delinquent, pled guilty or nolo contendere in this State, of an offense described below or who has been convicted, adjudicated delinquent, pled guilty or nolo contendere in any comparable court in the United States, or who has been convicted, adjudicated delinquent, pled guilty or nolo contendere in the United States federal courts~~, of the offenses described below or~~ of a similar ~~offenses in other jurisdictions~~ offense, or who has been convicted of, adjudicated delinquent of, pled guilty or nolo contendere to an offense for which the person was required to register in the state where the conviction or plea occurred shall be required to register pursuant to the provisions of this ~~Article~~ article.

(B) For purposes of this article, a person who remains in this State for a total of thirty days during a twelve-month period is a resident of this State.

(C) For purposes of this article, a person convicted of any of ~~these~~ the following offenses shall be referred to as an offender.:

(1) criminal sexual conduct in the first degree (Section 16-3-652);

(2) criminal sexual conduct in the second degree (Section 16-3-653);

(3) criminal sexual conduct in the third degree (Section 16-3-654);

(4) criminal sexual conduct with minors, first degree (Section 16-3-655(1));

(5) criminal sexual conduct with minors, second degree. If evidence is presented at the criminal proceeding and the court makes a specific finding on the record that the conviction obtained for this offense resulted from consensual sexual conduct, as contained in Section 16-3-655(3), or consensual sexual conduct between persons under the age of sixteen, the convicted person is not an offender and is not required to register pursuant to the provisions of this article;

~~(5)~~(6) engaging a child for sexual performance (Section 16-3-810);

~~(6)~~(7) producing, directing, or promoting sexual performance by a child (Section 16-3-820);

~~(7)~~(8) criminal sexual conduct: assaults with intent to commit (Section 16-3-656);

~~(8)~~(9) ~~kidnapping (Section 16-3-910)~~;

~~(9)~~(10) incest (Section 16-15-20);

~~(10)~~(11) buggery (Section 16-15-120);

~~(11) indecent exposure (Section 16-15-130);~~

(12) committing or attempting lewd act upon child under fourteen (Section 16-15-140);

(13) eavesdropping or peeping (Section 16-17-470);

~~(14) conspiracy to kidnap (Section 16-3-920)~~;

~~(15)~~14 violations of Article 3, Chapter 15 of Title 16 involving a minor which violations are felonies.

(15) A person, regardless of age, who has been convicted, pled guilty or nolo contendere in this State, or who has been convicted, pled guilty or nolo contendere in a comparable court in the United States, or who has been convicted, pled guilty or nolo contendere in the United States federal courts of indecent exposure or of a similar offense in other jurisdictions is required to register pursuant to the provisions of this article if the court makes a specific finding on the record that based on the circumstances of the case the convicted person should register as a sex offender.

(D) Upon conviction, adjudication of delinquency, guilty plea or plea of nolo contendere of a person of an offense not listed in this article, the presiding judge may order as a condition of sentencing that the person be included in the sex offender registry if good cause is shown by the solicitor.

Section 23-3-440. (1) Prior to an offender's release from the Department of Corrections after completion of the term of imprisonment, or being placed on parole, the Department of Corrections or the Department of Probation, Parole, and Pardon Services, as applicable, shall notify the sheriff of the county where the offender intends to reside and SLED that the offender is being released and has provided an address within the jurisdiction of the sheriff for that county. The Department of Corrections shall provide verbal and written notification to the offender that he must register with the sheriff of the county in which he intends to reside within twenty-four hours of his release. Further, the Department of Corrections shall obtain descriptive information of the offender, including a current photograph prior to release.

(2) The Department of Probation, Parole, and Pardon Services shall notify SLED and the sheriff of the county where an offender is residing when the offender is sentenced to probation or is a new resident of the State who must be supervised by the department. The Department of Probation, Parole, and Pardon Services also shall provide verbal and written notification to the offender that he must register with the sheriff of the county in which he intends to reside. An offender who is sentenced to probation must register within ten days of sentencing. Further, the Department of Probation, Parole, and Pardon Services shall obtain descriptive information of the offender, including a current photograph that is to be updated annually prior to expiration of the probation sentence.

(3) The Department of Juvenile Justice shall notify SLED and the sheriff of the county where an offender is residing when the offender is released from a Department of Juvenile Justice facility or when the Department of Juvenile Justice is required to supervise the actions of the juvenile. The Department of Juvenile Justice must provide verbal and written notification to the juvenile and his parent, legal guardian, or custodian that the juvenile must register with the sheriff of the county in which the juvenile resides. The juvenile must register within twenty-four hours of his release or within ten days if he was not confined to a Department of Juvenile Justice's facility.

(4) The Department of Corrections, the Department of Probation, Parole, and Pardon Services, and the Department of Juvenile Justice shall provide to SLED the initial registry information regarding the offender prior to his release from imprisonment or relief of supervision. This information shall be collected in the event the offender fails to register with his county sheriff.

Section 23-3-450. The offender shall register with the sheriff of the county in which he resides. To register, the offender must provide information as prescribed by ~~the~~ SLED. The county sheriff shall then forward to SLED the registry information and any updated information regarding the offender. A copy of this information must be kept by the sheriff's department. The county sheriff shall ensure that all information required by SLED is secured and shall establish specific times of the day during which an offender may register. An offender shall not be considered to have registered until all information prescribed by SLED has been obtained.

Section 23-3-460. Any person required to register under this article shall be required to register annually for a period of life. The offender shall register at the sheriff's department in the county where he resides.

If any person required to register under this article changes his address within the same county, that person must send written notice of the change of address to the county sheriff within ten days of establishing the new residence.

If any person required to register under this article changes his address into another county in South Carolina, the person must register with the county sheriff in the new county within ten days of establishing the new residence. The person must also provide written notice within ten days of the change of address in the previous county to the county sheriff with whom the person last registered.

If any person required to register under this article moves outside of South Carolina, the person must provide written notice within ten days of the change of address to a new state to the county sheriff with whom the person last registered.

~~If any~~ Any person required to register under this article who moves to South Carolina from another state and is not under the jurisdiction of the ~~State~~ Department of Corrections, the ~~State~~ Department of Probation, ~~and~~ Parole, and Pardon Services, or the Department of Juvenile Justice at the time of moving to South Carolina, must register within sixty days of establishing residence~~, or re-establishing residence, if the person is a former South Carolina resident~~ in this State.

The South Carolina Department of ~~Motor Vehicles~~ Public Safety, Division of Motor Vehicles, shall inform, in writing to, any new resident who applies for a ~~drivers~~ driver's license, a chauffeur's license, vehicle tag, or a state identification card of the obligation of those offenders to register.

Section 23-3-470. (A) It is the duty of the offender to contact the sheriff in order to register. ~~The failure of~~ If an offender fails to register as required by this article, ~~is a felony and, upon conviction, the offender~~ he must be: punished as provided in subsection (B).

(1) fined one thousand dollars and sentenced to a mandatory ninety days in jail for a first or second offense. In no event does the court have the power to absolve a person who willfully violates this section; and

(2) sentenced to a mandatory one year not to exceed five years imprisonment and may be fined one thousand dollars for a third or subsequent offense. In no event does the court have the power to absolve a person who willfully violates this section from the obligation of serving at least one year of imprisonment.

(B)(1) A person convicted for a first offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of ninety days, no part of which shall be suspended nor probation granted.

(2) A person convicted for a second offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of one year, no part of which shall be suspended nor probation granted.

(3) A person convicted for a third or subsequent offense is guilty of a felony and must be imprisoned for a mandatory period of five years, three years of which shall not be suspended nor probation granted.

Section 23-3-475. (A) Anyone who knowingly and wilfully gives false information when registering as an offender pursuant to this article must be punished as provided in subsection (B).

(B)(1) A person convicted for a first offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of ninety days, no part of which shall be suspended nor probation granted.

(2) A person convicted for a second offense is guilty of a misdemeanor and must be imprisoned for a mandatory period of one year, no part of which shall be suspended nor probation granted.

Section 23-3-480. (A) An arrest on charges of failure to register, service of an information, or a complaint for failure to register, or arraignment on charges of failure to register, constitutes actual notice of the duty to register. A person charged with the crime of failure to register who asserts as a defense the lack of notice of the duty to register shall register immediately following actual notice through arrest, service, or arraignment. Failure to register after notice as required by this article constitutes grounds for filing another charge of failure to register. Registering following arrest, service, or arraignment on charges does not relieve the offender from the criminal penalty for failure to register before the filing of the original charge.

(B) Section 23-3-470 shall not apply to a person convicted of an offense provided in Section 23-3-420 prior to July 1, 1994, and who was released from custody prior to July 1, 1994, unless the person has been served notice of the duty to register by the sheriff of the county in which the person resides. This person shall register within ten days of the notification of the duty to register.

Section 23-3-490. (A) Information collected for the offender registry is ~~shall not be~~ open to public inspection, upon request to the county sheriff ~~by the public~~. A sheriff must release information regarding a specific person who is required to register under this article to a member of the public if the request is made in writing, stating the name of the person requesting the information, and the name or address of the person about whom the information is sought. The information must be disclosed only to the person making the request. The sheriff must provide the person making the request with the full name of the offender, any aliases, the date of birth, a current home address, the offense for which the offender was required to register pursuant to Section 23-3-430, and the date, city, and state of conviction. A photocopy of a current photograph must also be provided. The provisions of this article do not authorize SLED to release information to the public unless a request is made in writing stating the name of the person making the request and the name of the person about whom information is sought. SLED is only authorized to release to the public the name of the county in which the offender is registered. Otherwise, SLED is not authorized to release any information contained in the registry to anyone other than ~~shall be made available only to~~ law enforcement agencies, investigative agencies, and those agencies authorized by the court.

(B) Nothing in subsection (A) prohibits a sheriff from disseminating information contained in that subsection regarding a specific person who is required to register under this article if the sheriff or another law enforcement officer is presented with facts giving rise to a reasonable suspicion of criminal activity and has reason to believe the release of this information will deter the criminal activity.

(C) For purposes of this article, information on a juvenile adjudicated delinquent in family court for an offense listed in Section 23-3-430 must not be made available to the public."

SECTION_______. If any provision of this act or the application thereof to any person is held invalid, the invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application and to this end the provisions of this act are severable./

Renumber sections to conform.

Amend totals and title to conform.

Rep. LIMBAUGH explained the amendment.

POINT OF ORDER

Rep. MARTIN raised the Point of Order that Amendment No. 1 was out of order as it was not germane.

Rep. LIMBAUGH argued contra the Point in stating that the Bill related to the Public Safety Coordinating Council and both the Bill and the amendment had the substantial effect of assisting law enforcement in sharing information and prevention of crime.

Rep. MARTIN stated that it dealt with separate Chapters in Title 23 and that the Bill only dealt with the expansion of the members seated on the Council. He further stated that the amendment dealt with legislation concerning the posting of sex offenders.

Rep. SHEHEEN stated that the Bill only dealt with adding a victim's representative to the Council.

The SPEAKER stated it was not germane and he sustained the Point of Order and ruled the amendment out of order.

The Bill was read the second time and ordered to third reading.

OBJECTION TO RECALL

Rep. BAILEY asked unanimous consent to recall S. 66 from the Committee on Ways and Means.

Rep. SCOTT objected.

OBJECTION TO RECALL

Rep. WALKER asked unanimous consent to recall H. 3263 from the Committee on Ways and Means.

Rep. H. BROWN objected.

OBJECTION TO RECALL

Rep. LIMBAUGH asked unanimous consent to recall S. 1047 from the Committee on Judiciary.

Rep. SCOTT objected.

OBJECTION TO RECALL

Rep. SIMRILL asked unanimous consent to recall S. 604 from the Committee on Labor, Commerce and Industry.

Rep. TROTTER objected.

OBJECTION TO RECALL

Rep. D. SMITH asked unanimous consent to recall S. 265 from the Committee on Judiciary.

Rep. HOWARD objected.

OBJECTION TO RECALL

Rep. MOODY-LAWRENCE asked unanimous consent to recall H. 4050 from the Committee on Ways and Means.

Rep. MARCHBANKS objected.

OBJECTION TO RECALL

Rep. VAUGHN asked unanimous consent to recall S. 1309 from the Committee on Ways and Means.

Rep. HALLMAN objected.

OBJECTION TO RECALL

Rep. McELVEEN asked unanimous consent to recall S. 1037 from the Committee on Judiciary.

Rep. FULMER objected.

H. 4159--DEBATE ADJOURNED

The veto on the following Act was taken up.

H. 4159 -- Ways and Means Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-21-3495 SO AS TO LIMIT THE DISTRIBUTION OF PROFITS DERIVED FROM THE GAME OF BINGO.

Rep. KIRSH moved to adjourn debate upon the veto until Thursday, May 30, which was adopted.

H. 3446--INTERRUPTED DEBATE

The Senate amendments to the following Bill were taken up for consideration.

H. 3446 -- Rep. Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 46-45-70 SO AS TO PROVIDE REQUIREMENTS FOR THE LOCATION OF AGRICULTURAL FACILITIES AND AGRICULTURAL WASTE DISPOSAL AREAS; TO AMEND SECTION 46-45-30, AS AMENDED, RELATING TO THE CIRCUMSTANCES UNDER WHICH AGRICULTURAL FACILITIES AND OPERATIONS ARE NOT NUISANCES, SO AS TO DELETE THE REQUIREMENT THAT THE FACILITY OR OPERATION MUST BE IN OPERATION FOR ONE YEAR OR MORE; AND TO AMEND SECTION 46-45-60, AS AMENDED, RELATING TO LOCAL ORDINANCES PERTAINING TO AGRICULTURAL FACILITIES AND OPERATIONS, SO AS TO PROVIDE FOR THE CONDITIONS UNDER WHICH RELATED PERMITS MUST NOT BE SUSPENDED, DENIED, OR REVOKED.

Rep. MEACHAM proposed the following Amendment No. 3A (Doc Name P:\amend\PFM\9453AC.96).

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Title 47 of the 1976 Code is amended by adding:

"CHAPTER 20
Confined Swine Feeding Operations

Section 47-20-10. As used in this chapter:

(1) 'Agricultural facility' means a lot, building, or structure which is used for the commercial production of swine in an animal feeding operation.

(2) 'Animal' means a domesticated animal belonging to the porcine species.

(3) 'Animal feeding operation' means an agricultural facility where animals are confined and fed or maintained for a total of forty-five days or more in a twelve-month period and crops, vegetative, forage growth, or post-harvest residues are not sustained in the normal growing season over any portion of the lot or facility. Structures used for the storage of animal waste from animals in the operation also are part of the animal feeding operation. Two or more animal feeding operations under common ownership or management are considered to be a single animal feeding operation if they are adjacent or utilize a common system for animal waste storage.

(4) 'Animal waste' means animal excreta or other commonly associated organic animal wastes including, but not limited to, bedding, litter, feed losses, or water mixed with the waste.

(5) 'Annual pollutant loading rate' means the maximum amount of a pollutant that can be applied to a unit area of a waste utilization area during a three hundred sixty-five-day period.

(6) 'Cumulative pollutant loading rate' means the maximum amount of a pollutant that can be applied to an area of land.

(7) 'Department' means the South Carolina Department of Health and Environmental Control.

(8) 'Ephemeral stream' means a stream that flows only in direct response to rainfall or snowmelt in which discrete periods of flow persist no more than twenty-nine consecutive days per event.

(9) 'Intermittent stream' means a stream that generally has a defined natural water course which does not flow year-round but flows beyond periods of rainfall or snowmelt.

(10) 'Lagoon' means an impoundment used in conjunction with an animal feeding operation, the primary function of which is to store or stabilize, or both, organic wastes, wastewater, and contaminated runoff.

(11) 'Vector' means a carrier that is capable of transmitting a pathogen from one organism to another including, but not limited to, flies and other insects, rodents, birds, and vermin.

(12) 'Waste storage pond' means a structure used for impounding or storing manure, wastewater, and contaminated runoff as a component of an agricultural waste management system. Waste is stored for a specified period of time, one year or less, and then the pond is emptied.

(13) 'Waste Utilization area' means land on which animal waste is spread as a fertilizer.

(14) 'Watershed' means a drainage area contributing to a river, lake, or stream.

(15) 'Waters of the State' means lakes, bays, sounds, ponds, impounding reservoirs, springs, artesian wells, rivers, perennial and navigable streams, creeks, estuaries, marshes, inlets, canals, the Atlantic Ocean within the territorial limits of the State, and all other bodies of water, natural or artificial, public or private, inland or coastal, fresh or salt, which are wholly or partially within or bordering the State or within its jurisdiction. This definition does not include ephemeral or intermittent streams. This definition includes wetlands as defined in this section.

(16) 'Wetlands' means lands that have a predominance of hydric soil, are inundated or saturated by water or groundwater at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions, and, under normal circumstances, do support a prevalence of hydrophytic vegetation. Normal circumstances refer to the soil and hydrologic conditions that are normally present without regard to whether the vegetation has been removed. Wetlands must be identified through the confirmation of the three wetlands criteria: hydric soil, hydrology, and hydrophytic vegetation. All three criteria must be met for an area to be identified as wetlands.

Section 47-20-20. (A) All siting requirements for animal feeding operations must be measured from property lines.

(B) After June 30, 1996, these setback limits for new or expanded animal feeding operations which utilize a lagoon or a waste storage pond, or both, apply:

(1) For an animal feeding operation with a capacity of 160,000 to 480,000 pounds of normal production animal live weight at any one time, the minimum separation distance required between a lagoon and a waste storage pond and real property owned by another person is 1,000 feet. The minimum separation distance required between an agricultural facility and real property owned by another person is 1000 feet.

(2) For an animal feeding operation with a capacity of 480,001 to 960,000 pounds of normal production animal live weight at any one time, the minimum separation distance required between a lagoon and a waste storage pond and real property owned by another person is 1,250 feet. The minimum separation distance required between an agricultural facility and real property owned by another person is 1000 feet.

(3) For an animal feeding operation with a capacity of 960,001 to 1,440,000 pounds of normal production live weight at any one time, the minimum separation distance required between a lagoon and a waste storage pond and real property owned by another person is 1,500 feet. The minimum separation distance required between an agricultural facility and real property owned by another person is 1000 feet.

(4) For animal feeding operations with a capacity of more than 1,440,001 pounds of normal production animal live weight at any one time, the minimum separation distance required between a lagoon and a waste storage pond and real property owned by another person is 1,750 feet. The minimum separation distance between an agricultural facility and real property owned by another person is 1000 feet.

(5) The minimum separation distance between a lagoon and a waste storage pond and a public or private drinking water well is 500 feet.

(6) The minimum separation distance required between a lagoon and a waste storage pond and waters of the State is 1,320 feet (1/4 mile). If the waters of the State are designated Outstanding Resource Waters, Critical Habitat Waters of federally endangered species, or Shellfish Harvesting Waters, the minimum separation distance required between a lagoon and a waste storage pond and waters of the State is 2,640 feet (1/2 mile). A minimum 100-foot vegetative buffer of plants and trees is required. However, if an owner or operator of an animal feeding operation has a Natural Resource Conservation Service employee or a state-certified engineer create a waste management plan design to control the discharge from a failed lagoon so that it will not enter waters of the State and certify that the plan has been implemented as specified, then the minimum separation distance between a lagoon and a waste storage pond and waters of the State is 500 feet.

(7) The minimum separation distance between a lagoon and a waste storage pond constructed of concrete to standards outlined in department regulations and waters of the State is 500 feet. If the waters are designated Outstanding Resource Waters, Critical Habitat Waters of federally endangered species, or Shellfish Harvesting Waters, the minimum separation distance required between a lagoon and a waste storage pond constructed of concrete to standards outlined in department regulations and waters of the State is 1,000 feet. A minimum 100-foot vegetative buffer of plants and trees is required.

(8) If an animal feeding operation established as of July 1, 1996, wishes to expand and cannot feasibly do so under the requirements set forth in this section as determined by the department, the operation may be allowed to expand one time to 160,000 pounds of normal production animal live weight above its permitted number as of July 1, 1996, even if the operation cannot meet the requirements of this section.

(9) If a lagoon or waste storage pond, or both, breaches or fails in any way, the owner or operator of the animal feeding operation immediately must notify the department and the appropriate local government officials.

(C) The minimum separation distance in feet required between a ditch or swale which drains directly into waters of the State and all animal feeding operations is 100 feet.

(D) No new animal feeding operation or expansion of an established animal feeding operation may be located in the 100-year floodplain unless protected from flooding as provided for in regulations of the Federal Emergency Management Agency and the National Flood Insurance Program on Floodplain Management. Such construction or expansion must be certified by the department.

(E) Streams or rivers used as surface intake for potable water supply may not be used as a receiving stream outflow from animal feeding operations, and there may not be any direct water linkage or flood facility drainage linkage between the animal feeding operation and a stream or river utilized as a supply of drinking water unless waste is treated to drinking water quality standards.

(F) The setback limits are minimum siting requirements. The department shall promulgate regulations specifying factors that the department shall evaluate in determining whether additional separation distances are required under certain circumstances. These factors include, at a minimum:

(1) proximity to 100-year flood plain;

(2) soil type;

(3) location in watershed;

(4) nutrient sensitivity of receiving waters;

(5) proximity to a State Designated Focus Area; Outstanding Resource Water; Heritage Corridor; Historic Preservation District; state or national park or forest; state or federal research area; and privately-owned wildlife refuge, park, or trust property;

(6) proximity to other point and nonpoint sources; and

(7) slope of the land.

Section 47-20-30. A separation distance requirement as provided in Section 47-20-20(1)-(4) does not apply to an animal feeding operation which is constructed or expanded, if the titleholder of adjoining land to the animal feeding operation executes a written waiver with the title holder of the land where the animal feeding operation is established or proposed to be located, under terms and conditions that the parties negotiate. The written waiver becomes effective only upon the recording of the waiver in the office of the Register of Mesne Conveyances of the county in which the benefitted land is located. The filed waiver precludes enforcement by the State of Section 47-20-20 (B)(1) - (4) as it relates to the animal feeding operation and to real property owned by another person.

Section 47-20-40. (A) The department shall promulgate regulations relating to land application rates for animal waste for animal feeding operations of a capacity for more than 160,000 pounds of normal production animal live weight at any one time. These rates must be based on the waste's impact on the environment, animals, and people living in the environment. In developing annual pollutant loading rates and cumulative pollutant loading rates, the department shall consider:

(1) soil type;

(2) type of vegetation growing in land-applied area;

(3) proximity to 100-year flood plain;

(4) location in watershed;

(5) nutrient sensitivity of receiving land and waters;

(6) soil and sediment tests of receiving land and waters;

(7) nutrient, heavy metal, and pollutant content of the waste being applied;

(8) proximity to a State Designated Focus Area; Outstanding Resource Water; Heritage Corridor; Historic Preservation District; state or national park or forest; state or federal research area; and privately owned wildlife refuge, park, or trust property;

(9) proximity to other point and nonpoint sources;

(10) slope of land;

(11) distance to water table or ground water aquifer;

(12) timing of waste application to coincide with vegetative cover growth cycle;

(13) timing of harvest of vegetative cover;

(14) hydraulic loading limitations; and

(15) soil assimilative capacity;

(16) type of vegetative cover and its nutrient uptake ability;

(17) method of land application.

(B) The department shall require calibration of spray irrigation equipment.

(C) Waste must not be applied to or discharged onto land surface when the vertical separation between the waste and the water table is less than 1 1/2 feet.

(D) The department shall ensure that owners or operators adhere to land application rates.

Section 47-20-50. The following application rates shall only apply to animal feeding operations with a capacity of more than 160,000 pounds of normal production animal live weight at any one time.

(A) The minimum separation distance in feet required between a waste utilization area and real property owned by another person on which a residence is located is 200 feet from property lines that are within 1,000 feet of the residence. The 200-foot setback is waived with the consent of the owner of the residence; however, the owner may not agree to less than 100 feet from the residence.

(B) The minimum separation distance in feet required between a waste utilization area and waters of the State, ditches, and swales that drain directly into waters of the State is 100 feet.

(C) The minimum separation distance in feet required between a waste utilization area and a public and private drinking water well is 200 feet.

Section 47-20-60. (A) The department shall promulgate regulations governing maximum lagoon size and minimum lagoon size, based on the permitted number of animal units to be maintained at the animal feeding operation. However, no single lagoon may exceed four acres.

(B) Lagoons and waste storage ponds for animal feeding operations with a capacity for more than 160,000 pounds of normal production animal live weight at any one time must be lined with a combination of natural and synthetic material which results in a permeability rating equal to or more protective than that required for human waste lagoons.

(C) The owner or operator of an animal feeding operation shall obtain certification from a licensed engineer or an appropriate Natural Resource Conservation Service employee that the operation's lagoon and waste storage pond were designed, constructed, and installed in accordance with regulatory specifications.

(D) Before the construction of a lagoon and a waste storage pond, the owner or operator shall remove all under-drains that exist from previous agricultural operations.

(E) Waste must not be placed directly in or allowed to come into contact with groundwater. Additionally, the minimum separation distance between the lowest point of the lagoon and a waste storage pond and the highest point of the water table beneath the lagoon is 2 feet, unless adequate provisions have been taken and meet the standards established in regulations promulgated by the department.

(F) The department shall conduct a study of alternative technologies for the treatment of animal waste from animal feeding operations and promulgate regulations governing the use of these alternative treatment technologies. Every five years the department shall review changing technologies relating to the treatment of animal waste and promulgate appropriate regulations as needed. The department shall determine which animal feeding operations are required to use aerobic lagoons or other treatment technology.

(G) The department shall consider the cumulative impacts including, but not limited to, impacts from evaporation, storm water, and other potential and actual point and nonpoint sources of pollution runoff, levels of nutrients or other elements in the soils and nearby waterways, ground water or aquifer contamination, pathogens or other elements, and the pollution assimilative capacity of the receiving water body before permitting new or expanded animal feeding operations. The department may require alternative waste treatment in watersheds which are nutrient-sensitive.

(H) Disposal of animal carcasses or body parts into waste lagoons is prohibited.

Section 47-20-70. (A) No person may cause, allow, or permit emission into the ambient air of any substance or combination of substances in quantities that an undesirable level of odor is determined to result unless preventive measures of the type set out below are taken to abate or control the emission to the satisfaction of the department. When an odor problem comes to the attention of the department through field surveillance or specific complaints, the department shall determine if the odor is at an undesirable level by considering the character and degree of injury or interference to:

(1) the health or welfare of the people;

(2) plant, animal, or marine life;

(3) property;

(4) enjoyment of life or use of affected property.

(B) The department may require these abatement or control practices:

(1) removal or disposal of odorous materials;

(2) methods in handling and storage of odorous materials that minimize emissions;

(3) prescribed standards in the maintenance of premises to reduce odorous emissions;

(4) best available control technology to reduce odorous emissions.

(C) After determining an undesirable level of odor exists, the department shall require remediation of the undesirable level of odor.

(D) Nothing in this section prohibits an individual or group of persons from bringing a complaint against an animal feeding operation.

Section 47-20-80. (A) The department, in consultation with the State Veterinarian, shall promulgate regulations relating to the control of vectors.

(B) All animal feeding operations shall utilize Best Management Practices as appropriate for the control of vectors and department regulations in order to maximize vector control.

Section 47-20-90. (A) The department shall act on all permits to prevent, so far as reasonably possible considering relevant standards under state and federal laws, an increase in pollution of the waters and air of the State from any new or enlarged sources.

(B) The department also shall act on all permits so as to prevent degradation of water quality due to the cumulative and secondary effects of permit decisions. Cumulative and secondary effects are impacts attributable to the collective effects of a number of animal feeding operations in a defined area and include the effects of additional projects similar to the requested permit in areas available for development in the vicinity. All permit decisions shall ensure that the waste treatment and utilization alternative with the least adverse impact on the environment be utilized. Cumulative and secondary effects shall include, but are not limited to, runoff from land application of animal waste and an animal feeding operation, evaporation and atmospheric deposition of elements, ground water or aquifer contamination, buildup of elements in the soil, and other potential and actual point and nonpoint sources of pollution in the vicinity.

Section 47-20-100. The department shall establish the amount of an application and annual operation fee in accordance with the Environmental Protection Fund Act, Section 48-2-10 of the 1976 Code, to cover, at a minimum, an annual inspection of all animal feeding operations in the State with a capacity for more than 160,000 pounds of normal production animal live weight at any one time. The annual inspection must include, but is not limited to, an on-site visit, review of the implementation of a waste management plan, review of results of monitoring analysis, annual pollutant loading rates, cumulative pollutant loading rates, and review of all records required by this chapter.

Section 47-20-110. (A) All animal feeding operations established after the effective date of this chapter which require the use of a lagoon and a waste storage pond and which have a capacity for more than 160,000 pounds of normal production animal live weight at any one time are required to install at least one up-gradient and two down-gradient monitoring wells at a depth which the department considers appropriate around the lagoon in order to monitor seepage of waste from the lagoon.

(B) Each monitoring well installed must be analyzed at least once annually. However, the department may conduct routine and random visits to the animal feeding operation to sample the monitoring wells.

(C) Records must be kept by the owner or operator of the animal feeding operation according to regulations promulgated by the department.

(D) If leakage is discovered beyond an acceptable level as determined by the department, the lagoon must be repaired at the owner or operator's expense.

Section 47-20-120. (A) No waste may be released from the premises of an animal feeding operation to waters of the State unless the waste is treated to drinking water quality standards.

(B) Water that is completely surrounded by land owned by the applicant and has no connection to other water is excluded from the setback requirements outlined in this chapter.

Section 47-20-130. (A) Clemson University, in conjunction with the South Carolina Department of Agriculture and the department, shall create a training and certification program for owners or operators of animal feeding operations which shall include, but is not limited to, understanding relevant regulations, issues, standards, principles, and practices regarding siting and management of an animal feeding operation and land application of animal waste; testing for toxic metals, organic materials, and other elements; use of antibiotics; implementing emergency procedures; and spill prevention protocols including testing and inspection of dikes.

(B) An operator of an animal feeding operation and waste utilization area must be certified on the operation of animal waste management under the program created in subsection (A).

Section 47-20-140. (A) For an animal feeding operation which has the capacity of more than 160,000 pounds of normal production animal live weight at any one time and is seeking to construct or expand an established animal feeding operation, the department shall publish a notice of intent to construct or to expand an established animal feeding operation governed by this chapter in a local newspaper of general circulation, notify persons residing on adjoining property, and notify the relevant county commission and water supply district at the expense of the animal feeding operation applicant. Proof of notification of neighboring land owners and residents must be supplied by the applicant. This notice shall contain instructions for public review and comment to the department on the proposed construction and operation of the facility. The notice shall allow for a minimum thirty-day comment period.

(B) The department shall conduct a public hearing and shall provide notice of the public hearing in accordance with the notice requirements provided for in subsection (A) in any case in which the department receives at least twenty letters requesting a public hearing.

Section 47-20-150. (A) Permits for animal feeding operations covered under this chapter must be renewed every seven years. However, subsequent to the issuance of a permit, if the animal feeding operation is not in operation or production for two consecutive years, the permit is not valid and a new permit must be obtained.

(B) The department shall determine the appropriate fee for permit renewals.

Section 47-20-160. (A) The department shall promulgate regulations for this act by January 1, 1998, and submit a report on its progress by January 1, 1997, in consultation with representatives from: the South Carolina Poultry Federation, South Carolina Pork Producer's Association, South Carolina Dairyman's Association, South Carolina Cattlemen's Association, South Carolina Farm Bureau Federation, South Carolina Wildlife Federation, South Carolina Chapter of the Sierra Club, South Carolina Coastal Conservation League, League of Women Voters, Clemson University, South Carolina State University, Natural Resource Conservation Service, South Carolina Department of Agriculture, South Carolina Shrimpers' Association, South Carolina Department of Natural Resources, Land Resources Division, and the South Carolina Association of Conservation Districts. Each organization may appoint one member to consult with the department regarding this chapter, regulations promulgated pursuant to this chapter, and the chapter's implementation. The department shall consult with representatives in meetings which must be conducted by the department, upon the call of the director of the department or the director's designee or upon request to the department of any three members. Representatives from these organizations may not receive mileage, per diem, or subsistence.

(B) The department shall promulgate regulations for siting and managing animal feeding operations with a capacity of 160,000 pounds of normal production of animal live weight or less at any one time, including land application of waste. The regulations must be at a minimum as protective as the department's current guidelines.

Section 47-20-170. Any violation of the provisions of this chapter is punishable as under the Pollution Control Act."

SECTION 2. Section 46-45-30 of the 1976 Code, as amended by Act 442 of 1990, is further amended to read:

"Section 46-45-30. (A) No established agricultural facility or any agricultural operation at an established agricultural facility is or may become a nuisance, private or public, by any changed conditions in or about the locality of the facility or operation ~~if the facility or operation has been in operation for one year or more~~. ~~The provisions of~~ This section do does not apply whenever a nuisance results from the negligent, improper, or illegal operation of an agricultural facility or operation."

SECTION 3. This act takes effect July 1, 1996./

Renumber sections to conform.

Amend totals and title to conform.

Rep. MEACHAM explained the amendment.

ACTING SPEAKER HARRELL IN CHAIR

Rep. MEACHAM continued speaking.

Rep. HODGES spoke in favor of the amendment.

LEAVE OF ABSENCE

ACTING SPEAKER HARRELL granted Rep. EASTERDAY a leave of absence for the remainder of the day.

Rep. KNOTTS spoke against the amendment.

SPEAKER IN CHAIR

Rep. RISER spoke against the amendment.

Rep. G. BROWN spoke against the amendment.

ACTING SPEAKER CATO IN CHAIR

Rep. RHOAD spoke against the amendment.

Rep. SHARPE spoke against the amendment.

SPEAKER IN CHAIR

Rep. SHARPE continued speaking.

Rep. MARTIN spoke in favor of the amendment.

Further proceedings were interrupted by the Joint Assembly, the pending question being consideration of Amendment No. 3A.

JOINT ASSEMBLY

At 12:00 Noon the Senate appeared in the Hall of the House.

The President of the Senate called the Joint Assembly to order and announced that it had convened under the terms of a Concurrent Resolution adopted by both Houses.

ELECTION OF CONSUMER AFFAIRS COMMISSION
MEMBERS, SEATS 2 AND 4

The Reading Clerk of the House read the following Concurrent Resolution:

S. 1391 -- Senator Courtney: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MAY 29, 1996, AT 12:00 NOON, AS THE TIME FOR ELECTING SUCCESSORS TO THE MEMBERS OF THE SOUTH CAROLINA CONSUMER AFFAIRS COMMISSION FOR SEATS 2 AND 4, SO AS TO FILL THE TERMS WHICH EXPIRE AUGUST 31, 1996.

The President recognized Senator Courtney, Chairman of the Joint Screening Committee.

Senator Courtney stated that the following candidates had been screened and found qualified: Barbara B. League for Seat 4, and Lonnie Randolph, Jr. for Seat 2.

On motion of Rep. BAILEY, nominations were closed, and with unanimous consent, the vote was taken by acclamation, resulting in the election of the nominees.

Whereupon, the President announced that Barbara B. League, Seat 4, and Lonnie Randolph, Seat 2, were duly elected for the term prescribed by law.

JOINT ASSEMBLY RECEDES

The purposes of the Joint Assembly having been accomplished, the President announced that under the terms of the Concurrent Resolution the Joint Assembly would recede from business.

The Senate accordingly retired to its Chamber.

THE HOUSE RESUMES

At 12:20 P.M. the House resumed, the SPEAKER in the Chair.

LEAVE OF ABSENCE

The SPEAKER granted Rep. WHATLEY a leave of absence.

H. 3446--INTERRUPTED DEBATE

Debate was resumed on the Senate amendments to the following Bill, the pending question being the consideration of Amendment No. 3A.

AMENDMENT NO. 3A

Debate was resumed on Amendment No. 3A by Rep. MEACHAM.

Rep. QUINN moved to table the amendment.

Rep. HODGES demanded the yeas and nays, which were taken resulting as follows:

Yeas 45; Nays 59

Those who voted in the affirmative are:

Askins                 Bailey                 Boan
Brown, G.              Cain                   Carnell
Cooper                 Cromer                 Delleney
Fleming                Gamble                 Kinon
Kirsh                  Knotts                 Koon
Lee                    Limbaugh               Littlejohn
Loftis                 Marchbanks             McAbee
McCraw                 McTeer                 Phillips
Quinn                  Rhoad                  Rice
Riser                  Robinson               Sharpe
Smith, D.              Spearman               Stoddard
Stuart                 Townsend               Tripp
Trotter                Vaughn                 Waldrop
Walker                 Wilder                 Wilkins
Witherspoon            Wofford                Wright

Total--45

Those who voted in the negative are:

Allison                Anderson               Baxley
Beck                   Breeland               Brown, J.
Brown, T.              Byrd                   Canty
Cato                   Cave                   Clyburn
Cobb-Hunter            Cotty                  Davenport
Fulmer                 Govan                  Hallman
Harrell                Hines, J.              Hines, M.
Hodges                 Howard                 Hutson
Jaskwhich              Jennings               Keegan
Kelley                 Keyserling             Klauber
Lanford                Law                    Limehouse
Lloyd                  Martin                 Mason
McMahand               Meacham                Moody-Lawrence
Neal                   Neilson                Richardson
Rogers                 Sandifer               Scott
Seithel                Sheheen                Shissias
Simrill                Smith, R.              Stille
Tucker                 Wells                  Whatley
Whipper, L.            Whipper, S.            White
Young                  Young-Brickell

Total--59

So, the House refused to table the amendment.

Rep. SPEARMAN spoke against the amendment.

Rep. RHOAD moved to continue the Bill.

Rep. MEACHAM demanded the yeas and nays, which were taken resulting as follows:

Yeas 21; Nays 83

Those who voted in the affirmative are:

Cain                   Cooper                 Delleney
Fleming                Koon                   Loftis
Marchbanks             McAbee                 McCraw
Phillips               Quinn                  Rhoad
Rice                   Riser                  Robinson
Smith, D.              Stoddard               Tripp
Trotter                Vaughn                 Waldrop

Total--21

Those who voted in the negative are:

Allison                Anderson               Askins
Bailey                 Baxley                 Beck
Boan                   Breeland               Brown, G.
Brown, H.              Brown, J.              Byrd
Canty                  Carnell                Cato
Cave                   Clyburn                Cobb-Hunter
Cotty                  Dantzler               Davenport
Felder                 Fulmer                 Gamble
Govan                  Hallman                Harrell
Harris, J.             Hines, J.              Hines, M.
Hodges                 Howard                 Hutson
Jaskwhich              Jennings               Keegan
Kelley                 Keyserling             Kinon
Kirsh                  Klauber                Knotts
Lanford                Law                    Lee
Limbaugh               Limehouse              Lloyd
Mason                  McElveen               McMahand
McTeer                 Meacham                Moody-Lawrence
Neal                   Neilson                Richardson
Rogers                 Sandifer               Scott
Seithel                Sharpe                 Sheheen
Shissias               Simrill                Smith, R.
Spearman               Stille                 Stuart
Townsend               Tucker                 Wells
Whipper, L.            Whipper, S.            White
Wilder                 Wilkes                 Wilkins
Witherspoon            Wofford                Wright
Young                  Young-Brickell

Total--83

So, the House refused to continue the Bill.

Rep. RICHARDSON moved immediate cloture on the entire matter, which was rejected.

Rep. LITTLEJOHN moved that the House recede until 2:00 P.M., which was adopted.

Further proceedings were interrupted by the House receding, the pending question being consideration of Amendment No. 3A.

THE HOUSE RESUMES

At 2:00 P.M. the House resumed, the SPEAKER in the Chair.

POINT OF QUORUM

The question of a quorum was raised. A quorum was later present.

LEAVES OF ABSENCE

The SPEAKER granted Rep. McKAY a leave of absence for the remainder of the day.

The SPEAKER granted Rep. P. HARRIS a leave of absence for the remainder of the day.

H. 3446--SENATE AMENDMENTS AMENDED
AND RETURNED TO THE SENATE

Debate was resumed on the Senate amendments to the following Bill, the pending question being the consideration of Amendment No. 3A.

AMENDMENT NO. 3A--TABLED

Debate was resumed on Amendment No. 3A by Rep. MEACHAM.

Rep. MEACHAM spoke in favor of the amendment.

Rep. YOUNG-BRICKELL moved immediate cloture on the entire matter.

Rep. MEACHAM demanded the yeas and nays, which were taken resulting as follows:

Yeas 47; Nays 49

Those who voted in the affirmative are:

Allison                Anderson               Beck
Boan                   Breeland               Brown, H.
Brown, J.              Byrd                   Cato
Clyburn                Dantzler               Fleming
Hallman                Harrell                Harris, J.
Hines, M.              Hodges                 Howard
Hutson                 Keegan                 Kelley
Keyserling             Klauber                Lanford
Law                    Limbaugh               Limehouse
Marchbanks             Mason                  McMahand
McTeer                 Meacham                Neal
Richardson             Sandifer               Scott
Seithel                Simrill                Smith, R.
Tucker                 Wells                  Whipper, L.
Whipper, S.            Wilkins                Wofford
Young                  Young-Brickell

Total--47

Those who voted in the negative are:

Bailey                 Baxley                 Brown, G.
Cain                   Canty                  Carnell
Cave                   Chamblee               Cooper
Cromer                 Davenport              Delleney
Felder                 Gamble                 Kinon
Kirsh                  Knotts                 Koon
Lee                    Littlejohn             Lloyd
Loftis                 Martin                 McAbee
McCraw                 McElveen               Neilson
Phillips               Quinn                  Rhoad
Rice                   Riser                  Robinson
Rogers                 Sharpe                 Sheheen
Shissias               Smith, D.              Spearman
Stoddard               Stuart                 Tripp
Trotter                Waldrop                Walker
Wilder                 Wilkes                 Witherspoon
Wright

Total--49

So, immediate cloture was not invoked.

Rep. WILKES spoke against the amendment.

Rep. G. BROWN spoke against the amendment.

Rep. COTTY spoke in favor of the amendment.

Rep. QUINN spoke against the amendment and moved to table the amendment.

Rep. MEACHAM demanded the yeas and nays, which were taken resulting as follows:

Yeas 55; Nays 51

Those who voted in the affirmative are:

Askins                 Bailey                 Boan
Brown, G.              Brown, H.              Brown, T.
Cain                   Carnell                Chamblee
Cooper                 Cromer                 Dantzler
Delleney               Felder                 Fleming
Fulmer                 Gamble                 Harvin
Kinon                  Kirsh                  Klauber
Knotts                 Koon                   Lee
Limbaugh               Littlejohn             Lloyd
Loftis                 Marchbanks             Martin
McAbee                 McCraw                 McTeer
Phillips               Quinn                  Rhoad
Rice                   Riser                  Robinson
Sharpe                 Smith, D.              Spearman
Stoddard               Stuart                 Townsend
Tripp                  Trotter                Vaughn
Waldrop                Walker                 Wilder
Wilkes                 Wilkins                Witherspoon
Wright

Total--55

Those who voted in the negative are:

Allison                Anderson               Baxley
Beck                   Breeland               Byrd
Canty                  Cato                   Cave
Clyburn                Cobb-Hunter            Cotty
Davenport              Govan                  Hallman
Harrell                Harris, J.             Hines, M.
Hodges                 Howard                 Hutson
Keegan                 Kelley                 Keyserling
Lanford                Limehouse              Mason
McElveen               McMahand               Meacham
Moody-Lawrence         Neal                   Neilson
Richardson             Rogers                 Sandifer
Scott                  Seithel                Sheheen
Shissias               Simrill                Smith, R.
Stille                 Tucker                 Wells
Whipper, L.            Whipper, S.            White
Wofford                Young                  Young-Brickell

Total--51

So, the amendment was tabled.

Rep. McTEER proposed the following Amendment No. 4A (Doc Name P:\amend\BBM\10772AC.96), which was ruled out of order.

Amend the bill, as and if amended, by adding an appropriately numbered section to read:

/SECTION ___. The 1976 Code is amended by adding:

"Section 20-7-19. No farmer may marry his pig."/

Renumber sections to conform.

Amend title to conform.

Rep. McTEER explained the amendment.

Rep. SIMRILL spoke against the amendment.

POINT OF ORDER

Rep. QUINN raised the Point of Order that Amendment No. 4A was out of order as it was not germane.

The SPEAKER sustained the Point of Order and ruled the amendment out of order.

LEAVE OF ABSENCE

The SPEAKER granted Rep. MARCHBANKS a leave of absence for the remainder of the day.

Reps. MEACHAM, HODGES and YOUNG-BRICKELL proposed the following Amendment No. 1A (Doc Name P:\amend\PFM\9403AC.96), which was adopted.