Indicates Matter Stricken
Indicates New Matter
In accordance with the Proclamation of the Governor, the House assembled at 10:00 A.M.
The SPEAKER took the Chair and deliberations were opened with prayer by the Chaplain as follows:
When extraordinary demands are before us, we need, O Lord, extraordinary guidance from You. We, therefore, seek a double measure of Your wisdom as we go about the business before us. Help us to conduct ourselves that we have no remorse about our yesterdays and no fears of our tomorrows. Keep us from being content to wait to see what will happen. Instead give us a determination to make right things happen. Make us steadfast in attaining right goals, knowing that by persistence even the turtle reached Noah's Ark. While we cannot turn back the clock, use us to wind it to keep it running.
So use us, Good Lord, as instruments in Your hands. 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.
The following was received.
Executive Order No. 96-11
WHEREAS, the General Assembly of the State of South Carolina has pending before it several matters of great importance, including the Rural Development Act of 1996 and the African-American History Monument bill; and
WHEREAS, substantial agreement has been achieved on matters relating to these bills, but no such consensus has been achieved on other matters before the General Assembly; and
WHEREAS, the South Carolina Constitution empowers me to convene the General Assembly in extra session on such extraordinary occasions; and
WHEREAS, it appears necessary to convene an extra session to deal with those matters on which consensus has been achieved before the next session of the General Assembly.
NOW, THEREFORE, pursuant to the powers conferred upon me by the Constitution and Statutes of the State of South Carolina, and by the power vested in me by Article IV, Section 19 of the Constitution of the State of South Carolina, I hereby call an extra session of the General Assembly of South Carolina to convene at the State House in Columbia on Thursday, June 27, 1996, at 10:00 am.
GIVEN UNDER MY HAND AND THE GREAT SEAL OF THE STATE OF SOUTH CAROLINA, THIS 26TH DAY OF JUNE, 1996.
/s/David M. Beasley
Governor
Attest:
/s/James M. Miles
Secretary of State
Rep. CATO moved that when the House adjourns, it adjourn in memory of former Rep. Clyde Moultrie Dangerfield of Mt. Pleasant, former Chairman of Labor, Commerce and Industry Committee, which was agreed to.
The following was received.
Columbia, S.C., June 13, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has confirmed the Governor's appointment of:
Initial Appointment, State Ethics Commission, with term to commence July 1, 1995, and to expire July 1, 2000:
At-Large:
Mr. Richard Kent Porth, 3 Panorama Drive, Lexington, S.C. 29072 VICE H. Bowen Woodruff (resigned)
Very respectfully,
President
Received as information.
The following was introduced:
H. 5107 -- Reps. Cato, Allison, Anderson, Askins, Bailey, Baxley, Beck, Boan, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Byrd, Cain, Canty, Carnell, Cave, Chamblee, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Elliott, Felder, Fleming, Fulmer, Gamble, Govan, Hallman, Harrell, J. Harris, P. Harris, Harrison, Harvin, Haskins, Herdklotz, J. Hines, M. Hines, Hodges, Howard, Hutson, Inabinett, Jaskwhich, Jennings, Keegan, Kelley, Kennedy, Keyserling, Kinon, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Lee, Limbaugh, Limehouse, Littlejohn, Lloyd, Loftis, Marchbanks, Martin, Mason, McAbee, McCraw, McElveen, McKay, McMahand, McTeer, Meacham, Moody-Lawrence, Neal, Neilson, Phillips, Quinn, Rhoad, Rice, Richardson, Riser, Robinson, Rogers, Sandifer, Scott, Seithel, Sharpe, Sheheen, Shissias, Simrill, D. Smith, R. Smith, Spearman, Stille, Stoddard, Stuart, Townsend, Tripp, Trotter, Tucker, Vaughn, Waldrop, Walker, Wells, Whatley, L. Whipper, S. Whipper, White, Wilder, Wilkes, Wilkins, Williams, Witherspoon, Wofford, Worley, Wright, J. Young and Young-Brickell: A CONCURRENT RESOLUTION TO EXTEND THE DEEPEST SYMPATHY OF THE MEMBERS AND EMPLOYEES OF THE GENERAL ASSEMBLY TO THE FAMILY AND MANY FRIENDS OF THE HONORABLE CLYDE MOULTRIE DANGERFIELD OF THE ISLE OF PALMS, SOUTH CAROLINA, WHO DIED WEDNESDAY, JUNE 19, 1996, AS HE WAS BEING TRANSPORTED TO EAST COOPER HOSPITAL VIA THE CLYDE M. DANGERFIELD BRIDGE.
Whereas, Clyde Moultrie Dangerfield was born in Oakley, in Berkeley County, South Carolina, on February 24, 1915, a son of the late Obie J. and Abbie Locklair Dangerfield, Sr., who were one of the state's last rice farmers; and
Whereas, a graduate of Berkeley High School, Moncks Corner, he attended Clemson College, answering the call of the United States Army for three years during World War II after which time he was discharged honorably with the rank of staff sergeant on November 22, 1945, when he settled in Charleston; and
Whereas, he met his beloved Betty Pauline Nelson, and proceeded to found Suburban Gas and Appliance Company, which he owned for forty years; and
Whereas, he and Betty Nelson were married on November 17, 1946; and
Whereas, they moved to the then new Isle of Palms in April 1948, where they raised their six children: Clyde M. Dangerfield, Jr., of Mount Pleasant; Dolly D. Cannon, of Isle of Palms; Timothy Nelson Dangerfield of Aiken; Shirley Ann Dangerfield of Mount Pleasant; Susan Marie Waite of McClellanville; and David Allan Dangerfield of Mount Pleasant; and
Whereas, among Mr. Dangerfield's chief concerns was that there was no church established yet on the Island, and his first order of business was to begin the process of acquiring a Methodist Church and pastor. Isle of Palms United Methodist Church held a special place in his heart over the years as he watched it grow, be demolished by Hurricane Hugo, and rise from the ashes once more; and
Whereas, Clyde Dangerfield, so active in so many civic causes, was first elected to the South Carolina House of Representatives in a special countywide election for Charleston County on September 15, 1953, and was reelected for eighteen consecutive terms, attaining number one in seniority, retiring in 1988. He served under nine Governors: Byrnes, Timmerman, Hollings, Russell, McNair, West, Edwards, Riley, and Campbell, and in 1991 he received an Honorary Doctor of Humane Letters Degree from the College of Charleston; and
Whereas, Mr. Dangerfield, even though quite active in legislative matters--Chairman of the House Labor, Commerce and Industry Committee, past chairman of the Charleston County Legislative Delegation, chairman of the Delegation Roads Committee for twenty-two years, and chairman of the Charleston Area Transportation Study Policy Committee (CHATS) from its inception until his retirement-- was instrumental in obtaining funds for the construction of the Mark Clark Expressway (I-526) and the Isle of Palms Connector, named in his honor. It was largely through his efforts that many Charleston area wooden structured bridges have been replaced; and
Whereas, Representative Dangerfield was a charter member and volunteer captain (retired) of the Isle of Palms Volunteer Fire Department; charter and lifemember and past president of the Isle of Palms Exchange Club, organized in 1948, and he was the first to receive the club's Book of Golden Deeds Award; a member of American Legion Palmetto Post 112; founder and charter member of the First United Methodist Church, Isle of Palms; he had served as chairman of Boy Scout Troop 34, Isle of Palms. He was also a Mason, a lifemember of Etiwan Lodge No. 95, Mount Pleasant A.F.M.; and
Whereas, in addition to his beloved wife of fifty years, Betty Nelson Dangerfield and their six children, Mr. Dangerfield is survived by one brother, William Henry Dangerfield, and one sister, Dessie D. Sabiston, both of Oakley, as well as ten grandchildren. Now, therefore,
Be it resolved by the House of Representatives, the Senate concurring:
That, by this resolution, the members and employees of the General Assembly extend their deepest sympathy to the many friends and family of The Honorable Clyde Moultrie Dangerfield of the Isle of Palms, South Carolina, upon the occasion of his death on June 19, 1996, as he was being transported to the East Cooper Hospital via the Clyde M. Dangerfield Bridge.
Be it further resolved that a copy of this resolution be forwarded to Mrs. Clyde M. Dangerfield, Sr., of Isle of Palms, South Carolina.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The Senate sent to the House the following:
S. 1451 -- Senators Ryberg, Richter, McConnell, Passailaigue, Alexander, Boan, Bryan, Cork, Courson, Courtney, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Hayes, Holland, Hutto, Jackson, Land, Lander, Leatherman, Leventis, Martin, Matthews, McGill, Mescher, Moore, O'Dell, Patterson, Peeler, Rankin, Reese, Rose, Russell, Saleeby, Setzler, Short, Greg Smith, J. Verne Smith, Thomas, Waldrep, Washington and Wilson: A CONCURRENT RESOLUTION TO EXTEND THE DEEPEST SYMPATHY OF THE MEMBERS AND EMPLOYEES OF THE GENERAL ASSEMBLY TO THE FAMILY AND MANY FRIENDS OF THE HONORABLE CLYDE MOULTRIE DANGERFIELD OF THE ISLE OF PALMS, SOUTH CAROLINA, WHO DIED WEDNESDAY, JUNE 19, 1996, AS HE WAS BEING TRANSPORTED TO EAST COOPER HOSPITAL VIA THE CLYDE M. DANGERFIELD BRIDGE.
Whereas, Clyde Moultrie Dangerfield was born in Oakley, in Berkeley County, South Carolina, on February 24, 1915, a son of the late Obie J. and Abbie Locklair Dangerfield, Sr., who were one of the state's last rice farmers; and
Whereas, a graduate of Berkeley High School, Moncks Corner, he attended Clemson College, answering the call of the United States Army for three years during World War II after which time he was discharged honorably with the rank of staff sergeant on November 22, 1945, when he settled in Charleston; and
Whereas, he met his beloved Betty Pauline Nelson, and proceeded to found Suburban Gas and Appliance Company, which he owned for forty years; and
Whereas, he and Betty Nelson were married on November 17, 1946; and
Whereas, they moved to the then new Isle of Palms in April 1948, where they raised their six children: Clyde M. Dangerfield, Jr., of Mount Pleasant; Dolly D. Cannon, of Isle of Palms; Timothy Nelson Dangerfield of Aiken; Shirley Ann Dangerfield of Mount Pleasant; Susan Marie Waite of McClellanville; and David Allan Dangerfield of Mount Pleasant; and
Whereas, among Mr. Dangerfield's chief concerns was that there was no church established yet on the Island, and his first order of business was to begin the process of acquiring a Methodist Church and pastor. Isle of Palms United Methodist Church held a special place in his heart over the years as he watched it grow, be demolished by Hurricane Hugo, and rise from the ashes once more; and
Whereas, Clyde Dangerfield, so active in so many civic causes, was first elected to the South Carolina House of Representatives in a special countywide election for Charleston County on September 15, 1953, and was reelected for eighteen consecutive terms, attaining number one in seniority, retiring in 1988. He served under nine Governors: Byrnes, Timmerman, Hollings, Russell, McNair, West, Edwards, Riley, and Campbell, and in 1991 he received an Honorary Doctor of Humane Letters Degree from the College of Charleston; and
Whereas, Mr. Dangerfield, even though quite active in legislative matters--Chairman of the House Labor, Commerce and Industry Committee, past chairman of the Charleston County Legislative Delegation, chairman of the Delegation Roads Committee for twenty-two years, and chairman of the Charleston Area Transportation Study Policy Committee (CHATS) from its inception until his retirement-- was instrumental in obtaining funds for the construction of the Mark Clark Expressway (I-526) and the Isle of Palms Connector, named in his honor. It was largely through his efforts that many Charleston area wooden structured bridges have been replaced; and
Whereas, Representative Dangerfield was a charter member and volunteer captain (retired) of the Isle of Palms Volunteer Fire Department; charter and lifemember and past president of the Isle of Palms Exchange Club, organized in 1948, and he was the first to receive the club's Book of Golden Deeds Award; a member of American Legion Palmetto Post 112; founder and charter member of the First United Methodist Church, Isle of Palms; he had served as chairman of Boy Scout Troop 34, Isle of Palms. He was also a Mason, a lifemember of Etiwan Lodge No. 95, Mount Pleasant A.F.M.; and
Whereas, in addition to his beloved wife of fifty years, Betty Nelson Dangerfield and their six children, Mr. Dangerfield is survived by one brother, William Henry Dangerfield, and one sister, Dessie D. Sabiston, both of Oakley, as well as ten grandchildren. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That, by this resolution, the members and employees of the General Assembly extend their deepest sympathy to the many friends and family of The Honorable Clyde Moultrie Dangerfield of the Isle of Palms, South Carolina, upon the occasion of his death on June 19, 1996, as he was being transported to the East Cooper Hospital via the Clyde M. Dangerfield Bridge.
Be it further resolved that a copy of this resolution be forwarded to Mrs. Clyde M. Dangerfield, Sr., of Isle of Palms, South Carolina.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
On motion of Rep. HASKINS, with unanimous consent, the following was taken up for immediate consideration:
H. 5108 -- Reps. Wilkins, Haskins, H. Brown, J. Brown, Cato, Sharpe, D. Smith, Townsend: A CONCURRENT RESOLUTION TO PROVIDE FOR THE MATTERS WHICH MAY BE CONSIDERED BY THE GENERAL ASSEMBLY DURING THE EXTRA SESSION OF THE GENERAL ASSEMBLY BEGINNING THURSDAY, JUNE 27, 1996, AND PROVIDE THAT THIS EXTRA SESSION OF THE GENERAL ASSEMBLY SHALL STAND ADJOURNED SINE DIE ON THURSDAY, JUNE 27, 1996, NO LATER THAN 5:00 P.M. UNLESS EXTENDED BY CONCURRENT RESOLUTION ADOPTED BY A TWO-THIRDS VOTE OF BOTH HOUSES WHICH RESOLUTION MAY PROVIDE ONLY FOR THE CONSIDERATION OF THE SAME MATTERS THE EXTRA SESSION WAS AUTHORIZED TO CONSIDER AS PROVIDED ABOVE.
Be it resolved by the House of Representatives, the Senate concurring:
That during the extra session of the General Assembly beginning at 10:00 a.m., Thursday, June 27, 1996, the only matters that may be taken up by the General Assembly are the following:
(1) consideration of gubernatorial vetoes;
(2) receipt and confirmation of appointments;
(3) consideration of H.4706, including the receipt of and action on any conference or free conference reports;
(4) consideration of H.3515, including the receipt of and action on any conference or free conference reports;
(5) consideration of H.3203, including the receipt of and action on any conference or free conference reports;
(6) ratification of acts;
(7) consideration of local matters which has the unanimous consent of the affected delegation.
Be it further resolved that the extra session of the General Assembly convened at 10:00 a.m. on June 27, 1996, shall stand adjourned sine die no later than 5:00 p.m. on Thursday, June 27, 1996, unless extended by concurrent resolution adopted by a two-thirds vote of both the Senate and House of Representatives, provided that such extension resolution may provide only for the consideration of those matters set forth in items (1) through (7).
The Concurrent Resolution was agreed to and ordered sent to the Senate.
On motion of Rep. WILKINS, with unanimous consent, the following was taken up for immediate consideration:
H. 5109 -- Reps. Wilkins, Haskins, H. Brown, J. Brown, Cato, Sharpe, D. Smith: A HOUSE RESOLUTION TO PROVIDE THAT MEMBERS OF THE HOUSE OF REPRESENTATIVES MAY RECEIVE ONLY MILEAGE AND SUBSISTENCE, BUT NO OTHER COMPENSATION, FOR THE DAYS THEY ARE PRESENT DURING THE EXTRA SESSION OF THE GENERAL ASSEMBLY CONVENED THURSDAY, JUNE 27, 1996.
Be it resolved by the House of Representatives:
That the members of the House of Representatives may receive only mileage and subsistence, but no other compensation, for the days they are present during the extra session of the General Assembly convened at 10:00 a.m., Thursday, June 27, 1996.
Rep. WILKINS explained the House Resolution.
The question then recurred to the adoption of the Resolution.
Rep. WILKINS demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Allison Anderson Bailey Baxley Beck Boan Breeland Brown, H. Brown, J. Cain Carnell Cato Chamblee Clyburn Cromer Dantzler Davenport Easterday Felder Fleming Gamble Govan Hallman Harrell Harris, J. Haskins Hines, M. Hodges Howard Hutson Inabinett Jennings Keegan Kennedy Keyserling Kinon Kirsh Knotts Koon Law Lee Limbaugh Lloyd Loftis Martin Mason McAbee McCraw McKay McMahand Meacham Neilson Phillips Rice Richardson Riser Rogers Sandifer Scott Sharpe Sheheen Shissias Smith, D. Smith, R. Spearman Stoddard Stuart Townsend Tripp Trotter Vaughn Waldrop Walker Whatley Whipper, L. Whipper, S. Wilder Wilkes Wilkins Witherspoon Wofford Wright Young Young-Brickell
Those who voted in the negative are:
Cobb-Hunter Harris, P.
So, the Resolution was adopted.
I missed the vote to waive the legislative pay for the special session. I would have voted to waive the pay.
Rep. J. GARY SIMRILL
I was not in the Chamber during the vote to do away with our "Special Session" Legislative pay. Had I voted, I would most certainly have voted to forego any pay.
Rep. H.B. LIMEHOUSE III
I was temporarily out of the Chamber when this vote was taken. I would have voted no, not to accept pay for the session.
Rep. GRADY A. BROWN
I wish the Journal to reflect that I would have voted in favor of the Resolution to waive the pay.
Rep. THEODORE A. BROWN
On motion of Rep. HASKINS, with unanimous consent, the following was taken up for immediate consideration:
H. 5110 -- Reps. Wilkins, Haskins, H. Brown, J. Brown, Cato, Sharpe, D. Smith and Townsend: A HOUSE RESOLUTION TO PROVIDE FOR THE MATTERS WHICH MAY BE CONSIDERED BY THE HOUSE OF REPRESENTATIVES DURING THE EXTRA SESSION OF THE GENERAL ASSEMBLY BEGINNING THURSDAY, JUNE 27, 1996.
Be it resolved by the House of Representatives:
That during the extra session of the General Assembly beginning at 10:00 a.m., Thursday, June 27, 1996, the only matters that may be taken up by the House of Representatives are the following:
(1) consideration of gubernatorial vetoes;
(2) receipt and confirmation of appointments;
(3) consideration of H.4706, including the receipt of and action on any conference or free conference reports;
(4) consideration of H.3515, including the receipt of and action on any conference or free conference reports;
(5) consideration of H.3203, including the receipt of and action on any conference or free conference reports;
(6) ratification of acts;
(7) consideration of local matters which has the unanimous consent of the affected delegation.
The Resolution was adopted.
The roll call of the House of Representatives was taken resulting as follows.
Allison Anderson Bailey Baxley Beck Boan Breeland Brown, H. Brown, J. Cain Carnell Cato Cave Chamblee Clyburn Cobb-Hunter Cooper Cromer Dantzler Davenport Delleney Easterday Felder Fleming Gamble Govan Hallman Harrell Harris, J. Harris, P. Haskins Hines, M. Hodges Howard Hutson Inabinett Jennings Keegan Kelley Kennedy Keyserling Kinon Kirsh Knotts Koon Law Lee Limbaugh Limehouse Lloyd Loftis Marchbanks Martin Mason McAbee McCraw McKay McMahand McTeer Meacham Neilson Phillips Rhoad Rice Riser Rogers Sandifer Scott Sharpe Sheheen Shissias Simrill Smith, D. Smith, R. Spearman Stoddard Stuart Townsend Tripp Trotter Vaughn Waldrop Walker Wells Whatley Whipper, L. Whipper, S. White Wilder Wilkes Wilkins Williams Witherspoon Wofford Wright Young Young-Brickell
I came in after the roll call and was present for the Session on Thursday, June 27.
Alfred B. Robinson, Jr. Grady A. Brown Richard M. Quinn, Jr. James S. Klauber Lanny F. Littlejohn Joseph H. Neal Theodore A. Brown William F. Cotty Michael F. Jaskwhich Joseph T. McElveen, Jr. Alma W. Byrd C. Alex Harvin III Lynn Seithel
LEAVES OF ABSENCE
The SPEAKER granted Rep. TUCKER a leave of absence for the day.
The SPEAKER granted Rep. SEITHEL a temporary leave of absence.
The SPEAKER granted Rep. HERDKLOTZ a leave of absence for the day.
Reps. LOFTIS and McTEER signed a statement with the Clerk that they came in after the roll call of the House and were present for the Session on Wednesday, June 26.
The House stood at ease subject to the call of Chair.
At 11:58 A.M. the House resumed, the SPEAKER in the Chair.
The COMMITTEE OF CONFERENCE, to whom was referred:
H. 4706 -- Reps. Wilkins, Kennedy, Harrell, Hutson, Neilson, S. Whipper, J. Hines, Harvin, Howard, Askins, White, Fleming, Jennings, Keegan, Anderson, L. Whipper, M. Hines, Cobb-Hunter, Breeland, Neal, Young-Brickell, Easterday, J. Harris, Koon, Meacham, J. Young, Harrison, Clyburn, Herdklotz, Knotts, Inabinett, Wright, Lloyd, Law, Gamble, Delleney, Cave, Govan, H. Brown, Felder, Robinson, Mason, Carnell, D. Smith, Rice, Sharpe, Boan, Fulmer, Chamblee, Stuart, Shissias, Klauber, T. Brown, Spearman, Williams, Kinon, Limbaugh, Scott, Riser, McTeer, McElveen, Hodges and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA RURAL DEVELOPMENT ACT OF 1996" INCLUDING PROVISIONS TO AMEND SECTION 12-10-20, RELATING TO LEGISLATIVE FINDINGS PERTAINING TO THE ENTERPRISE ZONE ACT, SO AS TO PROVIDE ADDITIONAL FINDINGS; TO AMEND SECTION 12-10-30, RELATING TO DEFINITIONS UNDER THE ENTERPRISE ZONE ACT, SO AS TO DELETE THE DEFINITION OF "SERVICES"; TO AMEND SECTION 12-10-40, AS AMENDED, RELATING TO THE DESIGNATION AND CRITERIA OF ENTERPRISE ZONES, SO AS TO DELETE SPECIFIED CRITERIA AND TO PROVIDE THAT THE AMOUNT OF BENEFITS ALLOWED IS DETERMINED BY THE COUNTY DESIGNATION IN WHICH THE BUSINESS IS LOCATED; TO AMEND SECTION 12-10-50, RELATING TO CRITERIA TO QUALIFY FOR BENEFITS, SO AS TO PROVIDE THAT THE ENTIRE STATE OF SOUTH CAROLINA IS AN ENTERPRISE ZONE; TO AMEND SECTION 12-10-70, RELATING TO BENEFITS OF QUALIFYING BUSINESSES, SO AS TO REVISE THESE BENEFITS AND PROVIDE THAT QUALIFYING BUSINESSES ARE ELIGIBLE TO USE SPECIAL SOURCE REVENUE BONDS; TO AMEND SECTION 12-10-80, RELATING TO JOB DEVELOPMENT FEES, SO AS TO PERMIT A QUALIFYING BUSINESS TO COLLECT JOB DEVELOPMENT FEES FOR NEW JOBS CREATED AND FOR OTHER REASONS, TO FURTHER PROVIDE FOR THE PURPOSES FOR WHICH SUCH FUNDS MAY BE SPENT, TO PROVIDE FOR THE RETAINAGE OF JOB DEVELOPMENT FEES UNDER CERTAIN CONDITIONS, TO CREATE THE RURAL INFRASTRUCTURE FUND AND PROVIDE FOR ITS FUNDING, AND TO PROVIDE THAT ANY STATE-SUPPORTED INSTITUTION OF HIGHER EDUCATION MAY PROVIDE RETRAINING INSTEAD OF ONLY TECHNICAL COLLEGES; TO ADD SECTION 12-10-85 SO AS TO PROVIDE GUIDELINES FOR THE USES OF THE RURAL DEVELOPMENT FUND; TO AMEND SECTION 12-10-90, RELATING TO LEVELS OF CAPITAL INVESTMENT OR EMPLOYMENT IN REVITALIZATION AGREEMENTS, SO AS TO PROVIDE THAT THE COUNCIL ALONE CAN TERMINATE REVITALIZATION AGREEMENTS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOBS TAX CREDITS, SO AS TO REVISE THE REQUIREMENTS AND QUALIFICATIONS FOR JOBS TAX CREDITS; TO AMEND SECTION 12-6-2320, AS AMENDED, RELATING TO ALLOCATION AND APPORTIONMENT OF A TAXPAYER'S INCOME, SO AS TO FURTHER DEFINE THE TERM "TAXPAYER" IN REGARD TO A CONTROLLED GROUP OF CORPORATIONS; TO AMEND SECTION 12-6-3440, AS AMENDED, RELATING TO TAX CREDITS FOR EMPLOYEE CHILD CARE PROGRAMS, SO AS TO REVISE THE MANNER IN WHICH THESE TAX CREDITS ARE DETERMINED AND ALLOCATED; TO AMEND SECTION 12-6-3450, RELATING TO INCOME TAX CREDITS FOR PERSONS TERMINATED FROM EMPLOYMENT AS A RESULT OF THE CLOSING OF FEDERAL MILITARY INSTALLATIONS, SO AS TO PROVIDE AN APPLICABLE FEDERAL FACILITY, RATHER THAN JUST A MILITARY INSTALLATION, MAY RECEIVE THE BENEFITS OF THIS CREDIT; TO AMEND SECTION 12-6-3470, RELATING TO EMPLOYER TAX CREDITS FOR EMPLOYING PERSONS RECEIVING AID TO FAMILIES WITH DEPENDENT CHILDREN, SO AS TO FURTHER PROVIDE FOR THE COMPUTATION OF AND REQUIREMENTS FOR THIS CREDIT; TO AMEND SECTION 12-14-30, AS AMENDED, RELATING TO DEFINITIONS UNDER THE ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT, SO AS TO DELETE LANGUAGE PERTAINING TO MANUFACTURING FACILITIES THAT HAVE CLOSED OR EXPERIENCED LAYOFFS AS BEING ELIGIBLE FOR CERTAIN BENEFITS UNDER THIS ACT; TO AMEND TITLE 12, RELATING TO TAXATION, BY ADDING CHAPTER 12 SO AS TO ESTABLISH THE REQUIREMENTS FOR AND PROCEDURES UNDER WHICH A TAXPAYER WHO HAS A GAIN FROM THE SALE OR OTHER DISPOSITION OF A CAPITAL ASSET MAY DEFER RECOGNITION OF ALL OR A PART OF THE GAIN; TO AMEND SECTION 12-36-70, RELATING TO THE DEFINITION OF A "RETAILER" AND "SELLER" FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO REVISE THE EXEMPTION PERTAINING TO THE FURNISHING OF ACCOMMODATIONS TO TRANSIENTS; TO AMEND SECTION 12-36-920, RELATING TO THE TAX ON ACCOMMODATIONS, SO AS TO EXCLUDE FROM THE ACCOMMODATIONS TAX THE EXEMPTION PROVIDED IN SECTION 12-36-70; TO AMEND SECTION 12-36-120, AS AMENDED, RELATING TO THE DEFINITION OF A "SALE AT WHOLESALE", SO AS TO INCLUDE THE PURCHASE OF PALLETS; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO INCLUDE PALLETS IN THE SALES TAX EXEMPTION FOR PACKAGING MATERIALS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO FURTHER PROVIDE FOR THE EXEMPTION FOR AIR CARRIER HUB TERMINAL FACILITIES; TO AMEND SECTION 12-43-300, AS AMENDED, RELATING TO NOTICE OF TAX REASSESSMENTS AND OBJECTIONS THERETO, SO AS TO FURTHER PROVIDE FOR WHEN THE TAXPAYER AND THE ASSESSOR ARE BOUND BY THE ASSESSED VALUE OF THE PROPERTY AND TO MAKE THESE PROVISIONS APPLY TO REASSESSMENTS MADE ON OR AFTER DECEMBER 31, 1991; TO AMEND SECTION 4-12-30, RELATING TO FEES IN LIEU OF TAXES AND EXCEPTIONS FOR QUALIFYING INDUCEMENT LEASE AGREEMENTS, SO AS TO REDEFINE THE TERM "CONTROLLED GROUP", DELETE THE REQUIREMENT THAT THE BOARD OF ECONOMIC ADVISORS DETERMINE THE BENEFITS OF A FEE PROJECT AND PROVIDE INSTEAD THAT THE COUNTY COUNCIL SHALL DETERMINE SUCH BENEFITS, DELETE THE REQUIREMENT THAT A RESERVE ACCOUNT BE MAINTAINED, REVISE THE TIME PERIODS TO MEET CERTAIN REQUIREMENTS AND PROCEDURES REQUIRED TO BE FOLLOWED, REVISE THE MINIMUM ASSESSMENT RATIOS FOR SPECIFIED QUALIFYING BUSINESSES, ALLOW REPLACEMENT PROPERTY TO QUALIFY FOR THE FEE UNDER CERTAIN CONDITIONS, PERMIT THE AMENDING OF INDUCEMENT AGREEMENTS AT ANY TIME WITH RESTRICTIONS, PROVIDE GUIDELINES FOR THE TRANSFERRING OF FEE PROPERTY, REVISE CERTAIN INTEREST CHARGES, FURTHER PROVIDE FOR THE DISTRIBUTION OF THE FEE AND ALLOW A COUNTY TO USE A PORTION OF THE FEE PAYMENT FOR INFRASTRUCTURE IMPROVEMENTS WITHOUT THE REQUIREMENT OF ISSUING SPECIAL SOURCE REVENUE BONDS, ALLOW FOR THE TRANSFERRING OF AGREEMENTS RELATED TO THE FEE AND REQUIRE COUNTY APPROVAL OF THE TRANSFER, AND PROVIDE FOR OTHER RELATED MATTERS, PERTAINING TO FEES IN LIEU OF TAXES, AND THE TRANSFERABILITY OF INTERESTS IN THE PROPERTY THE SUBJECT OF THE FEE; TO AMEND SECTION 4-12-40, RELATING TO THE APPLICABILITY AND EFFECTIVE DATES OF FEE IN LIEU OF LEASE AGREEMENTS, SO AS TO FURTHER PROVIDE FOR SUCH APPLICABILITY AND EFFECTIVE DATES; TO AMEND SECTION 4-29-67, AS AMENDED, RELATING TO FEES IN LIEU OF TAXES FOR INDUSTRIAL DEVELOPMENT PROJECTS, SO AS TO PROVIDE THAT THE FEE PROVISIONS ARE AVAILABLE FOR INVESTMENTS EXCEEDING FORTY-FIVE MILLION DOLLARS, TO FURTHER PROVIDE FOR THE DEFINITION OF "CONTROLLED GROUP" AS IT RELATES TO THE FEE, ALLOW CERTAIN QUALIFYING BUSINESSES A THIRTY-YEAR MAXIMUM AGREEMENT AND AN EIGHT-YEAR PERIOD TO MEET MINIMUM INVESTMENT REQUIREMENTS, ALLOW CERTAIN QUALIFYING BUSINESSES TO QUALIFY FOR A THREE PERCENT ASSESSMENT RATIO, ALLOW FOR THE AMENDING OF AGREEMENTS AT ANY TIME WITH RESTRICTIONS, ALLOW A COUNTY TO USE A PORTION OF THE FEE PAYMENT FOR INFRASTRUCTURE IMPROVEMENTS WITHOUT THE REQUIREMENT FOR ISSUING SPECIAL SOURCE REVENUE BONDS, REVISE CERTAIN INTEREST CHARGES, FURTHER PROVIDE FOR THE TRANSFERRING OF AGREEMENTS AND FEE ASSETS, REQUIRE COUNTY APPROVAL BEFORE TRANSFERS, AND PROVIDE FOR OTHER RELATED MATTERS PERTAINING TO FEES IN LIEU OF TAXES FOR INDUSTRIAL DEVELOPMENT PROJECTS.
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:
/SECTION 1. This act 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 act 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. 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 4. 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 5. 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 6. 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.
(c) In order to qualify as replacement property, title to the replacement property must be held by the county.
(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."
E. 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 subsection (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.
The minimum investment levels or job creation levels, or both, required in order to qualify for a fee-in-lieu of property tax as provided in Section 4-29-67 and as reduced in Section 12-10-70(2) may be used for lease agreements executed before December 31, 1995, and for any project which has received any of the required readings before county council to enact the agreement before December 31, 1995."
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 7. A. Subsections (A) through (U) of Section 4-29-67 of the 1976 Code, as last amended by Act 181 OF 1993, 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 development 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.
(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 of Revenue and Taxation 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 4-29-60. 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.
(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 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.
(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 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.
(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) 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.
(c) In order to qualify as replacement property, title to the replacement property must be held by the county.
(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:
(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 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.
(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).
(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.
(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 such 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 up to a maximum penalty of one hundred twenty thousand dollars.
(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 8. A. Section 12-6-2320(B) of the 1976 Code, as last amended by Act 76 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 9. 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. In addition, taxpayers that operate retail facilities and service related industries qualify for an annual jobs tax credit in counties designated as least developed. Credits under this section can may be claimed against income taxes imposed by Section 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-five 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) Notwithstanding the designations in Section 12-6-3360, Laurens, Cherokee, and Union Counties shall qualify for the next increased credit designation.
(d) In a county where less than five percent of the work force is in manufacturing, the credit allowed is one tier higher than the credit for which the county would otherwise qualify.
(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 for 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 10. A. Items (1), (2), and (4) 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;
(4)(a) 'Qualified wages' include, with respect to an individual, only wages attributable to services rendered during the one year beginning with the day the individual first works for an employer after becoming a terminated employee.
(b) Qualified wages for a taxable year may not exceed seven ten thousand dollars.
(c) Qualified wages do not include wages paid for services performed as an employee of the federal government or an agency or instrumentality of the federal government."
B. This section is effective for taxable years beginning after 1995.
SECTION 11. 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. An employer shall request documentation as to AFDC eligibility from the South Carolina Employment Security Commission in writing within five days of employment. The commission has sixty days in which to either issue or deny this documentation.
(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 12. 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 13. 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 14. 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 15. 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 16. 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 17. 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 ninety-five percent 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).
(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 18. 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 19. 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 20. 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 21. 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 22. 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 23. 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 24. A. Section 61-9-312 of the 1976 Code, as amended by Section 75A, Part II, Act 145 of 1995, is further amended to read:
"Section 61-9-312. (A) In counties or municipalities where temporary permits are authorized to be issued pursuant to Section 61-5-180, in lieu of the retail permit fee required pursuant to Section 61-9-310, a retail dealer otherwise eligible for the retail permit under that section may elect to apply for a special version of that permit which allows sales for off-premises consumption without regard to the restrictions on the days or hours of sales provided in Sections 61-9-90, 61-9-100, 61-9-110, and 61-9-130. The annual fee for this special retail permit is one thousand dollars.
(B) Revenue generated by the fees must be credited to the general fund of the State except that revenue generated by the fees within a county where a federal military base or installation has been closed, or is designated to be closed and where the federal facility has reduced its permanent civilian employment by three thousand seven hundred fifty or more jobs after December 31, 1990, for a period of ten years after the effective date of Chapter 12 of Title 31, must be credited to a special separate and distinct account with the Budget and Control Board for support of a redevelopment authority created therein pursuant to Chapter 12 of Title 31. All other requirements for retail permits provided in Section 61-9-310 apply to the special permits authorized by this section.
(C) (1) Immediately following the dissolution of a redevelopment authority pursuant to Section 31-12-100(A), the fees distributed to the dissolved redevelopment authority pursuant to subsection (B) must be distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may only be used by the municipality or county for the following purposes:
(a) capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;
(b) purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);
(c) festivals which have a demonstrable and significant impact on tourism;
(d) acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future; public water supply, well fields, highway buffering and aquifer recharge areas; and land for wildlife preserves; and land for future public recreational facilities;
(e) nourishment, renourishment (resanding) and maintenance of beaches;
(f) dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;
(g) maintenance of public beach access;
(h) capital improvements to the beaches and beach related facilities, such as public parking areas for beach access; dune walkovers and rest room facilities, with or without changing rooms, at public beach parks; and
(i) construction and maintenance of drainage systems.
(2) The revenue may not be used for operating expenses of tourism-related buildings."
B. Section 61-5-180 of the 1976 Code, as last amended by Section 1584 of Act 181 of 1993, is further amended to read:
"Section 61-5-180. (A) In addition to the provisions of Section 61-5-85, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department in its sole discretion shall specify the terms and conditions of the permit.
(B) (1) The permit fees must be credited to the general fund of the State distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may only be used by the municipality or county for the following purposes:
(a) capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;
(b) purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);
(c) festivals which have a demonstrable and significant impact on tourism;
(d) local youth mentor programs to serve juvenile offenders under the jurisdiction of the family court;
(e) contributions to matching funds necessary for a local government or entity to receive funding from the Legacy Trust Fund pursuant to Chapter 22 of Title 51;
(f) contributions to a redevelopment authority pursuant to Section 31-12-10, et seq.
(g) acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future; public water supply, well fields, highway buffering and aquifer recharge areas; and land for wildlife preserves; and land for future public recreational facilities;
(h) nourishment, renourishment (resanding) and maintenance of beaches;
(i) dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;
(j) maintenance of public beach access;
(k) capital improvements to the beaches and beach related facilities, such as public parking areas for beach access; dune walkovers and rest room facilities, with or without changing rooms, at public beach parks; and
(l) construction and maintenance of drainage systems.
(2) The revenue may not be used for operating expenses of tourism-related buildings. The department in its sole discretion shall specify the terms and conditions of the permit.
(C) Permits authorized by this section may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permits. The county or municipal election commission, as the case may be, shall conduct a referendum upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the county or municipality, as the case may be, in not less than thirty nor more than forty days after receiving the petition. The election commission shall cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall apply to the referendum, mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the South Carolina Department of Revenue and Taxation. The question on the ballot shall read substantially as follows:
'Shall the South Carolina Department of Revenue and Taxation be authorized to issue temporary permits in this (county)(municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'
A referendum for this purpose may not be held more often than once in forty-eight months.
The expenses of any such referendum must be paid by the county or municipality conducting the referendum."
C. In a county in which temporary permits may be issued pursuant to Section 61-5-180, revenue generated by the fees imposed under that section within a county where a federal military base or installation has been closed, or is designated to be closed and where the federal facility has reduced its permanent civilian employment by seven hundred fifty or more jobs, but not more than two thousand nine hundred ninety-nine jobs, after December 31, 1990, for a period of five years beginning July 1, 1997 must be credited to a special separate and distinct account with the Budget and Control Board for support of a redevelopment authority created therein pursuant to Chapter 12 of Title 31.
D. This section is effective for property tax years beginning after 1996.
SECTION 25. Section 12-10-70 of the 1976 Code is repealed.
SECTION 26. Except where otherwise specifically provided in this act, 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 this act; or
(2) use the provisions of this act.
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 this act will be governed by this act. Taxpayers entering into revitalization agreements on or after January 1, 1997, will be governed by this act./
Amend title to read:
/TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE "SOUTH CAROLINA RURAL DEVELOPMENT ACT OF 1996", TO ADD SECTIONS 12-10-85 AND 12-10-88, PROVIDING GUIDELINES FOR THE USES OF THE STATE RURAL INFRASTRUCTURE FUND AND PROVIDING FOR REDEVELOPMENT FEES BY REDEVELOPMENT AUTHORITIES FROM EMPLOYEE WITHHOLDING ON WAGES PAID EMPLOYEES BY A FEDERAL EMPLOYER AT A CLOSED OR REALIGNED MILITARY INSTALLATION; TO ADD SECTION 58-27-240 CLARIFYING THE IMPACT OF THIS ACT ON THE RETAIL AND WHOLESALE DISTRIBUTION AND SALE OF ELECTRIC ENERGY; TO AMEND SECTIONS 4-12-30, 4-12-40, AND 4-27-67, AS AMENDED, RELATING TO FEES IN LIEU OF TAXES, SO AS TO LOWER THE MINIMUM FEES WHICH MAY BE NEGOTIATED, REVISE TERMS AND CONDITIONS FOR NEGOTIATING FEES AND ACCOMPANYING AGREEMENTS, PROVIDE FOR THE DISTRIBUTION OF FEE REVENUES, AND PROVIDE THE QUALIFICATIONS OF THOSE ENTITIES WHICH QUALIFY FOR THE REVISED FEE ARRANGEMENTS; TO AMEND SECTION 12-6-2320, AS AMENDED, RELATING TO THE ALLOCATION AND APPORTIONMENT OF A TAXPAYER'S INCOME AND THE ACCOUNTING METHOD ALLOWED THEREFOR, SO AS TO EXTEND THE COVERAGE OF THIS SECTION TO ONE OR MORE OF A CONTROLLED GROUP OF CORPORATIONS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO AUTHORIZE THE CREDIT FOR ADDITIONAL EMPLOYEES, REVISE THE METHOD WHEREBY COUNTIES ARE DESIGNATED FOR PURPOSES OF THE AMOUNT OF THE CREDIT ALLOWED FOR EACH NEW JOB CREATED, INCREASE THE JOB TAX CREDITS ALLOWED, REVISE THE METHOD OF DETERMINING THE CREDIT APPLICABLE IN JOINTLY ESTABLISHED INDUSTRIAL PARKS AND LIMIT THE MAXIMUM CREDIT THAT MAY BE CLAIMED IN ANY ONE TAX YEAR UNDER THIS SECTION; TO AMEND SECTION 12-6-3450, RELATING TO INCOME TAX CREDITS ALLOWED FOR EMPLOYING PERSONS TERMINATED FROM EMPLOYMENT IN A CLOSING OR REALIGNMENT OF A MILITARY INSTALLATION, SO AS TO EXTEND THE CREDIT TO SUCH PERSONS FORMERLY EMPLOYED IN AN APPLICABLE FEDERAL FACILITY AND PROVIDE DEFINITIONS; TO AMEND SECTION 12-6-3470, RELATING TO THE EMPLOYER INCOME TAX CREDIT FOR PERSONS HIRED WHO FORMERLY WERE RECEIVING AFDC, SO AS TO REVISE AND LIMIT THE CREDITS THAT ARE ALLOWED AND ADD A CREDIT FOR CERTAIN HIRES IN "LEAST DEVELOPED" COUNTIES; TO CLARIFY ELIGIBILITY REQUIREMENTS AND ALLOW A CARRYFORWARD OF UNUSED CREDITS; TO ADD SECTION 12-6-3490, SO AS TO ALLOW A CORPORATE LICENSE TAX CREDIT FOR CERTAIN INFRASTRUCTURE EXPENSES, TO PROVIDE A MAXIMUM CREDIT AMOUNT, AND PROVIDE DEFINITIONS; TO AMEND SECTIONS 12-10-20, 12-10-30, 12-10-40, AS AMENDED, 12-10-50, 12-10-80, AS AMENDED, AND 12-10-90, RELATING TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO PROVIDE ADDITIONAL STATEMENTS OF LEGISLATIVE INTENT, REVISE DEFINITIONS, EXTEND THE BENEFITS UNDER THE ACT STATEWIDE SUBJECT TO VARIATIONS BASED ON A COUNTY'S DEVELOPMENT DESIGNATION, REVISE THE APPLICATION AND USES OF THE JOB DEVELOPMENT FEE AND PROVIDE FOR THE AMOUNT OF A JOB DEVELOPMENT THAT MAY BE RETAINED BY THE EMPLOYER AND THE AMOUNTS THAT MUST BE CREDITED TO THE STATE RURAL INFRASTRUCTURE FUND; TO AMEND SECTION 12-14-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE "ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT OF 1995", SO AS TO DELETE A DEFINITION; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT CERTAIN MATERIAL HANDLING SYSTEMS AND EQUIPMENT AND PARTS AND SUPPLIES USED IN REPAIRING OR RECONDITIONING CERTAIN AIRCRAFT; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CLARIFY THE EXEMPTION ALLOWED AIR CARRIERS OPERATING A HUB IN THIS STATE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO SPECIAL SOURCE REVENUE BONDS, SO AS TO EXTEND THE PURPOSES FOR WHICH THESE BONDS MAY BE ISSUED TO UNIMPROVED OR IMPROVED REAL ESTATE USED IN THE OPERATION OF A MANUFACTURING OR COMMERCIAL ENTERPRISE; TO AMEND SECTION 61-9-312, AS AMENDED, RELATING TO BEER AND WINE PERMITS FOR NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT IMMEDIATELY FOLLOWING THE DISSOLUTION OF A REDEVELOPMENT AUTHORITY, THE FEES DISTRIBUTED TO THE DISSOLVED REDEVELOPMENT AUTHORITY MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED TO REDUCE THE NUMBER OF JOBS BY WHICH EMPLOYMENT MUST HAVE DECLINED IN A COUNTY FOR THIS DISTRIBUTION PLAN TO APPLY AND PROVIDE FOR THE USES OF THE REVENUE; TO AMEND SECTION 61-5-180, AS AMENDED, RELATING TO ISSUANCE OF TEMPORARY ALCOHOLIC BEVERAGE PERMITS TO NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT THE PERMIT FEES MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED AND PROVIDE FOR THE USES OF THE REVENUE AND PROVIDE FOR THE TEMPORARY USE OF THE REVENUE IN A COUNTY IN WHICH A FEDERAL MILITARY BASE OR INSTALLATION IS CLOSED, OR SCHEDULED TO BE CLOSED AND WHEN A FEDERAL FACILITY HAS HAD A SPECIFIC JOB LOSS; AND TO REPEAL SECTION 12-10-70, RELATING TO BENEFITS UNDER THE ENTERPRISE ZONE ACT OF 1995, AND TO PROVIDE EFFECTIVE DATES./
/s/Hugh K. Leatherman, Sr. /s/Roland Smith /s/Phil P. Leventis /s/John G. Felder /s/McKinley Washington, Jr. /s/Robert W. Harrell, Jr. On Part of the Senate. On Part of the House.
Rep. HARRELL explained the Conference Report.
The Conference Report was adopted and a message was ordered sent to the Senate accordingly.
I am in favor of the RDA Conference Report and had I been present, I would have voted in favor of this measure.
Rep. JOHN W. TUCKER, JR.
Due to an economic development announcement in Lancaster County that I participated in, I was not in the Chamber to vote my support for H. 4706 (the Rural Development Act).
Rep. WILLIAM D. BOAN
I voted against this piece of legislation because I feel the way it was presented amounts to extortion. There is no legislation from this session to my knowledge which warranted a special session. The tactics employed to pass this measure seriously jeopardize the legislative process in South Carolina. With this precedent now set, there would appear to be no need for the House of Representatives. Perhaps we should eliminate the House of Representatives, this saving millions of tax dollars, and allow the Senate and Governor to manage the affairs of the State of South Carolina.
Rep. DANIEL T. COOPER
Rep. JENNINGS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request.
H. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.
Rep. HASKINS raised the Point of Order that the request for free conference powers was a procedural motion and was not debatable.
The SPEAKER stated that there was precedence from June of 1987 and former Speaker SHEHEEN had stated that the free conference report itself was debatable but not the motion requesting free conference powers and he sustained the Point of Order.
The question then recurred to the motion to grant free conference powers.
The yeas and nays were taken resulting as follows:
Those who voted in the affirmative are:
Anderson Bailey Baxley Beck Breeland Brown, G. Brown, H. Brown, J. Brown, T. Byrd Carnell Cave Clyburn Cobb-Hunter Cotty Cromer Davenport Delleney Felder Fleming Govan Hallman Harrell Harris, J. Harris, P. Harvin Haskins Hines, M. Hodges Howard Hutson Inabinett Jaskwhich Jennings Keegan Kelley Kennedy Keyserling Kinon Kirsh Klauber Law Lee Limbaugh Limehouse Littlejohn Lloyd Martin Mason McAbee McCraw McElveen McKay McMahand Neal Neilson Phillips Quinn Rhoad Rice Richardson Robinson Rogers Scott Seithel Sharpe Sheheen Shissias Smith, D. Smith, R. Spearman Stoddard Stuart Tripp Vaughn Waldrop Wells Whipper, L. Whipper, S. White Wilder Wilkes Wilkins Williams Witherspoon Wofford Young Young-Brickell
Those who voted in the negative are:
Cain Cato Chamblee Cooper Dantzler Easterday Gamble Knotts Koon Marchbanks Meacham Riser Sandifer Simrill Trotter Whatley
So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.
The Committee of Conference was thereby resolved into a Committee of Free Conference, the SPEAKER appointed Reps. JENNINGS, J. YOUNG and YOUNG-BRICKELL, to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.
I am in favor of granting free conference powers on the Monument Bill and had I been present, I would have voted yes.
Rep. JOHN W. TUCKER, JR.
Due to an economic development announcement in Lancaster County that I participated in, I was not in the Chamber to vote yes to granting Free Conference Powers on H. 3515 (the African-American Monument Act).
Rep. WILLIAM D. BOAN
The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.
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 title and inserting:
/Whereas, the State of South Carolina has, as a matter of state policy, erected various monuments on the State House grounds to honor the contributions of various individuals and groups to the state's history; and
Whereas, the State has recently reaffirmed this policy by requiring all portraits, flags, banners, monuments, statues, and plaques which are removed during the current State House Renovation Project to be returned to their original locations following completion of the project; and
Whereas, not one of the monuments and memorials recognizes the contributions and efforts of an African-American individual; and
Whereas, some official symbol should be placed that recognizes the special and unique experiences and contributions of African-Americans in this State; and
Whereas, the placement of a permanent monument on the State House grounds is the most visible and efficient means of official recognition. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. There is hereby established on the grounds of the State House an African-American History Monument. The design and location of the monument shall be determined by the commission appointed pursuant to Section 2 of this act. The commission shall make reasonable efforts to incorporate all eras of African-American history in the design. The monument shall be erected as soon as is reasonably possible after it is approved by the General Assembly by concurrent resolution and the State House Renovation Project is completed.
SECTION 2. (A) An African-American History Monument Commission is created to determine the design of the monument and to determine the location of the monument on the State House grounds. The commission is empowered and directed to raise private funds and to receive gifts and grants to carry out the purpose for which it is created. The commission in this regard shall have the power to cause to be created a tax-exempt nonprofit corporation the purpose of which shall be to receive and disburse funds for the African-American History Monument. The staff of the State Budget and Control Board shall assist the commission with the preparation and maintenance of financial records for the purpose of ensuring proper accounting of the records. The financial records are public records for purposes of the Freedom of Information Act, except that the names of anonymous donors shall not be disclosed.
By April 1, 1997, the commission shall report the proposed design and location of the monument to the State House Committee for its approval. After action by the committee approving the design and location, the State House Committee shall cause to be introduced the concurrent resolution serving as the instrument of approval as provided in Section 1 of this act. The State shall ensure proper maintenance of the monument as is done for other historical monuments on the State House grounds.
Four members of the commission must be appointed by the President Pro Tempore of the Senate, four members must be appointed by the Speaker of the House of Representatives, and one member must be appointed by the Governor. Notwithstanding Section 8-13-770 of the 1976 Code, members of the General Assembly may be appointed to this commission. One of the members appointed by the President Pro Tempore must be a Senator and one of the members appointed by the Speaker must be a member of the House of Representatives.
The commission shall elect a chairman, vice chairman, and such other officers as it deems appropriate from among its membership. The senior senator of the commission shall call an organizational meeting for the purpose of electing officers and such other matters as may arise. Commission members are not entitled to receive the subsistence, mileage, and per diem otherwise provided by law for members of state boards, committees, and commissions.
(B) The commission also shall study the feasibility of establishing an African-American History Museum analogous to the Confederate Relic Room and make recommendations with respect to its findings on this subject to the State House Committee. This new museum shall collect and display historical artifacts and other items reflecting African-American history in this State. A preliminary report on this study must be made to the State House Committee no later than April 1, 1997, and a final report and recommendation on this study must be made by January 1, 2000.
(C) The commission established pursuant to this act is dissolved on January 1, 2000. However, the commission must be dissolved earlier if both the monument is dedicated and the final report is made before January 1, 2000, in which case the commission must be dissolved on the date of the later occurring event of the dedication of the monument or the receipt of the final report. If the African-American History Monument has not been dedicated by January 1, 2000, the powers, duties, and responsibilities of the African-American History Monument Commission shall be devolved upon the State House Committee.
SECTION 3. This act takes effect upon approval by the Governor./
Amend title to read:
/TO ESTABLISH AN AFRICAN-AMERICAN HISTORY MONUMENT TO BE ERECTED ON THE STATE HOUSE GROUNDS, TO CREATE A COMMISSION TO SELECT THE DESIGN AND LOCATION OF THE MONUMENT, TO PROVIDE THAT THIS COMMISSION SHALL ALSO STUDY THE FEASIBILITY OF ESTABLISHING AN AFRICAN-AMERICAN HISTORY MUSEUM AND SHALL MAKE REPORTS AND RECOMMENDATIONS IN THIS REGARD TO THE STATE HOUSE COMMITTEE, AND TO PROVIDE FOR THE DATE THIS COMMISSION SHALL BE DISSOLVED./
/s/Honorable Thomas L. Moore /s/Honorable Douglas Jennings, Jr. /s/Honorable C. Tyrone Courtney /s/Honorable W. Jeffrey Young /s/Honorable Darrell Jackson /s/Honorable Annette Young-Brickell On Part of the Senate. On Part of the House.
Rep. JENNINGS explained the Free Conference Report.
Rep. KNOTTS spoke against the Free Conference Report.
The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.
I wish to be recorded as voting against the conference report on the African-American Monument, which was a voice vote.
Rep. ELSIE RAST STUART
The following was received.
Columbia, S.C., June 27, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has granted Free Conference Powers and appointed Senators Moore, Courtney and Jackson of the Committee of Free Conference on the part of the Senate on H. 3515:
H. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.
Very respectfully,
President
Received as information.
The following was received.
Columbia, S.C., June 27, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on H. 3515:
H. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.
Very respectfully,
President
Received as information.
Rep. FLEMING moved to waive Rule 6.1, which was agreed to.
Rep. YOUNG-BRICKELL moved that the House recede until 2:20 P.M., which was adopted.
At 2:20 P.M. the House resumed, the SPEAKER in the Chair.
The following was received.
Columbia, S.C., June 27, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses ordered that the title be changed to that of an Act, and the Act enrolled for Ratification:
H. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.
Very respectfully,
President
The following was received.
Columbia, S.C., June 27, 1996
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on H. 4706:
H. 4706 -- Reps. Wilkins, Kennedy, Harrell, Hutson, Neilson, S. Whipper, J. Hines, Harvin, Howard, Askins, White, Fleming, Jennings, Keegan, Anderson, L. Whipper, M. Hines, Cobb-Hunter, Breeland, Neal, Young-Brickell, Easterday, J. Harris, Koon, Meacham, J. Young, Harrison, Clyburn, Herdklotz, Knotts, Inabinett, Wright, Lloyd, Law, Gamble, Delleney, Cave, Govan, H. Brown, Felder, Robinson, Mason, Carnell, D. Smith, Rice, Sharpe, Boan, Fulmer, Chamblee, Stuart, Shissias, Klauber, T. Brown, Spearman, Williams, Kinon, Limbaugh, Scott, Riser, McTeer, McElveen, Hodges and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO ENACT THE "SOUTH CAROLINA RURAL DEVELOPMENT ACT OF 1996" INCLUDING PROVISIONS TO AMEND SECTION 12-10-20, RELATING TO LEGISLATIVE FINDINGS PERTAINING TO THE ENTERPRISE ZONE ACT, SO AS TO PROVIDE ADDITIONAL FINDINGS; TO AMEND SECTION 12-10-30, RELATING TO DEFINITIONS UNDER THE ENTERPRISE ZONE ACT, SO AS TO DELETE THE DEFINITION OF "SERVICES"; TO AMEND SECTION 12-10-40, AS AMENDED, RELATING TO THE DESIGNATION AND CRITERIA OF ENTERPRISE ZONES, SO AS TO DELETE SPECIFIED CRITERIA AND TO PROVIDE THAT THE AMOUNT OF BENEFITS ALLOWED IS DETERMINED BY THE COUNTY DESIGNATION IN WHICH THE BUSINESS IS LOCATED; TO AMEND SECTION 12-10-50, RELATING TO CRITERIA TO QUALIFY FOR BENEFITS, SO AS TO PROVIDE THAT THE ENTIRE STATE OF SOUTH CAROLINA IS AN ENTERPRISE ZONE; TO AMEND SECTION 12-10-70, RELATING TO BENEFITS OF QUALIFYING BUSINESSES, SO AS TO REVISE THESE BENEFITS AND PROVIDE THAT QUALIFYING BUSINESSES ARE ELIGIBLE TO USE SPECIAL SOURCE REVENUE BONDS; TO AMEND SECTION 12-10-80, RELATING TO JOB DEVELOPMENT FEES, SO AS TO PERMIT A QUALIFYING BUSINESS TO COLLECT JOB DEVELOPMENT FEES FOR NEW JOBS CREATED AND FOR OTHER REASONS, TO FURTHER PROVIDE FOR THE PURPOSES FOR WHICH SUCH FUNDS MAY BE SPENT, TO PROVIDE FOR THE RETAINAGE OF JOB DEVELOPMENT FEES UNDER CERTAIN CONDITIONS, TO CREATE THE RURAL INFRASTRUCTURE FUND AND PROVIDE FOR ITS FUNDING, AND TO PROVIDE THAT ANY STATE-SUPPORTED INSTITUTION OF HIGHER EDUCATION MAY PROVIDE RETRAINING INSTEAD OF ONLY TECHNICAL COLLEGES; TO ADD SECTION 12-10-85 SO AS TO PROVIDE GUIDELINES FOR THE USES OF THE RURAL DEVELOPMENT FUND; TO AMEND SECTION 12-10-90, RELATING TO LEVELS OF CAPITAL INVESTMENT OR EMPLOYMENT IN REVITALIZATION AGREEMENTS, SO AS TO PROVIDE THAT THE COUNCIL ALONE CAN TERMINATE REVITALIZATION AGREEMENTS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO JOBS TAX CREDITS, SO AS TO REVISE THE REQUIREMENTS AND QUALIFICATIONS FOR JOBS TAX CREDITS; TO AMEND SECTION 12-6-2320, AS AMENDED, RELATING TO ALLOCATION AND APPORTIONMENT OF A TAXPAYER'S INCOME, SO AS TO FURTHER DEFINE THE TERM "TAXPAYER" IN REGARD TO A CONTROLLED GROUP OF CORPORATIONS; TO AMEND SECTION 12-6-3440, AS AMENDED, RELATING TO TAX CREDITS FOR EMPLOYEE CHILD CARE PROGRAMS, SO AS TO REVISE THE MANNER IN WHICH THESE TAX CREDITS ARE DETERMINED AND ALLOCATED; TO AMEND SECTION 12-6-3450, RELATING TO INCOME TAX CREDITS FOR PERSONS TERMINATED FROM EMPLOYMENT AS A RESULT OF THE CLOSING OF FEDERAL MILITARY INSTALLATIONS, SO AS TO PROVIDE AN APPLICABLE FEDERAL FACILITY, RATHER THAN JUST A MILITARY INSTALLATION, MAY RECEIVE THE BENEFITS OF THIS CREDIT; TO AMEND SECTION 12-6-3470, RELATING TO EMPLOYER TAX CREDITS FOR EMPLOYING PERSONS RECEIVING AID TO FAMILIES WITH DEPENDENT CHILDREN, SO AS TO FURTHER PROVIDE FOR THE COMPUTATION OF AND REQUIREMENTS FOR THIS CREDIT; TO AMEND SECTION 12-14-30, AS AMENDED, RELATING TO DEFINITIONS UNDER THE ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT, SO AS TO DELETE LANGUAGE PERTAINING TO MANUFACTURING FACILITIES THAT HAVE CLOSED OR EXPERIENCED LAYOFFS AS BEING ELIGIBLE FOR CERTAIN BENEFITS UNDER THIS ACT; TO AMEND TITLE 12, RELATING TO TAXATION, BY ADDING CHAPTER 12 SO AS TO ESTABLISH THE REQUIREMENTS FOR AND PROCEDURES UNDER WHICH A TAXPAYER WHO HAS A GAIN FROM THE SALE OR OTHER DISPOSITION OF A CAPITAL ASSET MAY DEFER RECOGNITION OF ALL OR A PART OF THE GAIN; TO AMEND SECTION 12-36-70, RELATING TO THE DEFINITION OF A "RETAILER" AND "SELLER" FOR PURPOSES OF THE SALES AND USE TAX, SO AS TO REVISE THE EXEMPTION PERTAINING TO THE FURNISHING OF ACCOMMODATIONS TO TRANSIENTS; TO AMEND SECTION 12-36-920, RELATING TO THE TAX ON ACCOMMODATIONS, SO AS TO EXCLUDE FROM THE ACCOMMODATIONS TAX THE EXEMPTION PROVIDED IN SECTION 12-36-70; TO AMEND SECTION 12-36-120, AS AMENDED, RELATING TO THE DEFINITION OF A "SALE AT WHOLESALE", SO AS TO INCLUDE THE PURCHASE OF PALLETS; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO INCLUDE PALLETS IN THE SALES TAX EXEMPTION FOR PACKAGING MATERIALS; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO FURTHER PROVIDE FOR THE EXEMPTION FOR AIR CARRIER HUB TERMINAL FACILITIES; TO AMEND SECTION 12-43-300, AS AMENDED, RELATING TO NOTICE OF TAX REASSESSMENTS AND OBJECTIONS THERETO, SO AS TO FURTHER PROVIDE FOR WHEN THE TAXPAYER AND THE ASSESSOR ARE BOUND BY THE ASSESSED VALUE OF THE PROPERTY AND TO MAKE THESE PROVISIONS APPLY TO REASSESSMENTS MADE ON OR AFTER DECEMBER 31, 1991; TO AMEND SECTION 4-12-30, RELATING TO FEES IN LIEU OF TAXES AND EXCEPTIONS FOR QUALIFYING INDUCEMENT LEASE AGREEMENTS, SO AS TO REDEFINE THE TERM "CONTROLLED GROUP", DELETE THE REQUIREMENT THAT THE BOARD OF ECONOMIC ADVISORS DETERMINE THE BENEFITS OF A FEE PROJECT AND PROVIDE INSTEAD THAT THE COUNTY COUNCIL SHALL DETERMINE SUCH BENEFITS, DELETE THE REQUIREMENT THAT A RESERVE ACCOUNT BE MAINTAINED, REVISE THE TIME PERIODS TO MEET CERTAIN REQUIREMENTS AND PROCEDURES REQUIRED TO BE FOLLOWED, REVISE THE MINIMUM ASSESSMENT RATIOS FOR SPECIFIED QUALIFYING BUSINESSES, ALLOW REPLACEMENT PROPERTY TO QUALIFY FOR THE FEE UNDER CERTAIN CONDITIONS, PERMIT THE AMENDING OF INDUCEMENT AGREEMENTS AT ANY TIME WITH RESTRICTIONS, PROVIDE GUIDELINES FOR THE TRANSFERRING OF FEE PROPERTY, REVISE CERTAIN INTEREST CHARGES, FURTHER PROVIDE FOR THE DISTRIBUTION OF THE FEE AND ALLOW A COUNTY TO USE A PORTION OF THE FEE PAYMENT FOR INFRASTRUCTURE IMPROVEMENTS WITHOUT THE REQUIREMENT OF ISSUING SPECIAL SOURCE REVENUE BONDS, ALLOW FOR THE TRANSFERRING OF AGREEMENTS RELATED TO THE FEE AND REQUIRE COUNTY APPROVAL OF THE TRANSFER, AND PROVIDE FOR OTHER RELATED MATTERS, PERTAINING TO FEES IN LIEU OF TAXES, AND THE TRANSFERABILITY OF INTERESTS IN THE PROPERTY THE SUBJECT OF THE FEE; TO AMEND SECTION 4-12-40, RELATING TO THE APPLICABILITY AND EFFECTIVE DATES OF FEE IN LIEU OF LEASE AGREEMENTS, SO AS TO FURTHER PROVIDE FOR SUCH APPLICABILITY AND EFFECTIVE DATES; TO AMEND SECTION 4-29-67, AS AMENDED, RELATING TO FEES IN LIEU OF TAXES FOR INDUSTRIAL DEVELOPMENT PROJECTS, SO AS TO PROVIDE THAT THE FEE PROVISIONS ARE AVAILABLE FOR INVESTMENTS EXCEEDING FORTY-FIVE MILLION DOLLARS, TO FURTHER PROVIDE FOR THE DEFINITION OF "CONTROLLED GROUP" AS IT RELATES TO THE FEE, ALLOW CERTAIN QUALIFYING BUSINESSES A THIRTY-YEAR MAXIMUM AGREEMENT AND AN EIGHT-YEAR PERIOD TO MEET MINIMUM INVESTMENT REQUIREMENTS, ALLOW CERTAIN QUALIFYING BUSINESSES TO QUALIFY FOR A THREE PERCENT ASSESSMENT RATIO, ALLOW FOR THE AMENDING OF AGREEMENTS AT ANY TIME WITH RESTRICTIONS, ALLOW A COUNTY TO USE A PORTION OF THE FEE PAYMENT FOR INFRASTRUCTURE IMPROVEMENTS WITHOUT THE REQUIREMENT FOR ISSUING SPECIAL SOURCE REVENUE BONDS, REVISE CERTAIN INTEREST CHARGES, FURTHER PROVIDE FOR THE TRANSFERRING OF AGREEMENTS AND FEE ASSETS, REQUIRE COUNTY APPROVAL BEFORE TRANSFERS, AND PROVIDE FOR OTHER RELATED MATTERS PERTAINING TO FEES IN LIEU OF TAXES FOR INDUSTRIAL DEVELOPMENT PROJECTS.
Very respectfully,
President
The report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification.
The following was received.
Columbia, S.C., June 27, 1996
Mr. Speaker and Members of the House:
The Senate respectfully invites your Honorable Body to attend in the Senate Chamber at 2:20 P.M. today for the purpose of Ratifying Acts.
Very respectfully,
President
On motion of Rep. HASKINS the invitation was accepted.
At 2:20 P.M. the House attended in the Senate Chamber, where the following Acts were duly ratified.
(R541, R-E.S.1) H. 3515 -- Reps. Harrison and Hodges: AN ACT TO ESTABLISH AN AFRICAN-AMERICAN HISTORY MONUMENT TO BE ERECTED ON THE STATE HOUSE GROUNDS, TO CREATE A COMMISSION TO SELECT THE DESIGN AND LOCATION OF THE MONUMENT AND PERFORM CERTAIN OTHER FUNCTIONS, TO PROVIDE THAT THIS COMMISSION SHALL ALSO STUDY THE FEASIBILITY OF ESTABLISHING AN AFRICAN-AMERICAN HISTORY MUSEUM AND SHALL MAKE REPORTS AND RECOMMENDATIONS IN THIS REGARD TO THE STATE HOUSE COMMITTEE, AND TO PROVIDE FOR THE DATE THIS COMMISSION SHALL BE DISSOLVED.
(R542, R-E.S.2) H. 4706 -- Reps. Wilkins, Kennedy, Harrell, Hutson, Neilson, S. Whipper, J. Hines, Harvin, Howard, Askins, White, Fleming, Jennings, Keegan, Anderson, L. Whipper, M. Hines, Cobb-Hunter, Breeland, Neal, Young-Brickell, Easterday, J. Harris, Koon, Meacham, J. Young, Harrison, Clyburn, Herdklotz, Knotts, Inabinett, Wright, Lloyd, Law, Gamble, Delleney, Cave, Govan, H. Brown, Felder, Robinson, Mason, Carnell, D. Smith, Rice, Sharpe, Boan, Fulmer, Chamblee, Stuart, Shissias, Klauber, T. Brown, Spearman, Williams, Kinon, Limbaugh, Scott, Riser, McTeer, McElveen, Hodges and Richardson: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE "SOUTH CAROLINA RURAL DEVELOPMENT ACT OF 1996", TO ADD SECTIONS 12-10-85 AND 12-10-88, PROVIDING GUIDELINES FOR THE USES OF THE STATE RURAL INFRASTRUCTURE FUND AND PROVIDING FOR REDEVELOPMENT FEES BY REDEVELOPMENT AUTHORITIES FROM EMPLOYEE WITHHOLDING ON WAGES PAID EMPLOYEES BY A FEDERAL EMPLOYER AT A CLOSED OR REALIGNED MILITARY INSTALLATION; TO ADD SECTION 58-27-240 CLARIFYING THE IMPACT OF THIS ACT ON THE RETAIL AND WHOLESALE DISTRIBUTION AND SALE OF ELECTRIC ENERGY; TO AMEND SECTIONS 4-12-30, 4-12-40, AND 4-29-67, AS AMENDED, RELATING TO FEES IN LIEU OF TAXES, SO AS TO LOWER THE MINIMUM FEES WHICH MAY BE NEGOTIATED, REVISE TERMS AND CONDITIONS FOR NEGOTIATING FEES AND ACCOMPANYING AGREEMENTS, PROVIDE FOR THE DISTRIBUTION OF FEE REVENUES, AND PROVIDE THE QUALIFICATIONS OF THOSE ENTITIES WHICH QUALIFY FOR THE REVISED FEE ARRANGEMENTS; TO AMEND SECTION 12-6-2320, AS AMENDED, RELATING TO THE ALLOCATION AND APPORTIONMENT OF A TAXPAYER'S INCOME AND THE ACCOUNTING METHOD ALLOWED THEREFOR, SO AS TO EXTEND THE COVERAGE OF THIS SECTION TO ONE OR MORE OF A CONTROLLED GROUP OF CORPORATIONS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO AUTHORIZE THE CREDIT FOR ADDITIONAL EMPLOYEES, REVISE THE METHOD WHEREBY COUNTIES ARE DESIGNATED FOR PURPOSES OF THE AMOUNT OF THE CREDIT ALLOWED FOR EACH NEW JOB CREATED, INCREASE THE JOB TAX CREDITS ALLOWED, REVISE THE METHOD OF DETERMINING THE CREDIT APPLICABLE IN JOINTLY ESTABLISHED INDUSTRIAL PARKS AND LIMIT THE MAXIMUM CREDIT THAT MAY BE CLAIMED IN ANY ONE TAX YEAR UNDER THIS SECTION; TO AMEND SECTION 12-6-3450, RELATING TO INCOME TAX CREDITS ALLOWED FOR EMPLOYING PERSONS TERMINATED FROM EMPLOYMENT IN A CLOSING OR REALIGNMENT OF A MILITARY INSTALLATION, SO AS TO EXTEND THE CREDIT TO SUCH PERSONS FORMERLY EMPLOYED IN AN APPLICABLE FEDERAL FACILITY AND PROVIDE DEFINITIONS; TO AMEND SECTION 12-6-3470, RELATING TO THE EMPLOYER INCOME TAX CREDIT FOR PERSONS HIRED WHO FORMERLY WERE RECEIVING AFDC, SO AS TO REVISE AND LIMIT THE CREDITS THAT ARE ALLOWED AND ADD A CREDIT FOR CERTAIN HIRES IN "LEAST DEVELOPED" COUNTIES; TO CLARIFY ELIGIBILITY REQUIREMENTS AND ALLOW A CARRYFORWARD OF UNUSED CREDITS; TO ADD SECTION 12-6-3490, SO AS TO ALLOW A CORPORATE LICENSE TAX CREDIT FOR CERTAIN INFRASTRUCTURE EXPENSES, TO PROVIDE A MAXIMUM CREDIT AMOUNT, AND PROVIDE DEFINITIONS; TO AMEND SECTIONS 12-10-20, 12-10-30, 12-10-40, AS AMENDED, 12-10-50, 12-10-80, AS AMENDED, AND 12-10-90, RELATING TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO PROVIDE ADDITIONAL STATEMENTS OF LEGISLATIVE INTENT, REVISE DEFINITIONS, EXTEND THE BENEFITS UNDER THE ACT STATEWIDE SUBJECT TO VARIATIONS BASED ON A COUNTY'S DEVELOPMENT DESIGNATION, REVISE THE APPLICATION AND USES OF THE JOB DEVELOPMENT FEE AND PROVIDE FOR THE AMOUNT OF A JOB DEVELOPMENT THAT MAY BE RETAINED BY THE EMPLOYER AND THE AMOUNTS THAT MUST BE CREDITED TO THE STATE RURAL INFRASTRUCTURE FUND; TO AMEND SECTION 12-14-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE "ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT OF 1995", SO AS TO DELETE A DEFINITION; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO EXEMPT CERTAIN MATERIAL HANDLING SYSTEMS AND EQUIPMENT AND PARTS AND SUPPLIES USED IN REPAIRING OR RECONDITIONING CERTAIN AIRCRAFT; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CLARIFY THE EXEMPTION ALLOWED AIR CARRIERS OPERATING A HUB IN THIS STATE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO SPECIAL SOURCE REVENUE BONDS, SO AS TO EXTEND THE PURPOSES FOR WHICH THESE BONDS MAY BE ISSUED TO UNIMPROVED OR IMPROVED REAL ESTATE USED IN THE OPERATION OF A MANUFACTURING OR COMMERCIAL ENTERPRISE; TO AMEND SECTION 61-9-312, AS AMENDED, RELATING TO BEER AND WINE PERMITS FOR NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT IMMEDIATELY FOLLOWING THE DISSOLUTION OF A REDEVELOPMENT AUTHORITY, THE FEES DISTRIBUTED TO THE DISSOLVED REDEVELOPMENT AUTHORITY MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED TO REDUCE THE NUMBER OF JOBS BY WHICH EMPLOYMENT MUST HAVE DECLINED IN A COUNTY FOR THIS DISTRIBUTION PLAN TO APPLY AND PROVIDE FOR THE USES OF THE REVENUE; TO AMEND SECTION 61-5-180, AS AMENDED, RELATING TO ISSUANCE OF TEMPORARY ALCOHOLIC BEVERAGE PERMITS TO NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT THE PERMIT FEES MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED AND PROVIDE FOR THE USES OF THE REVENUE AND PROVIDE FOR THE TEMPORARY USE OF THE REVENUE IN A COUNTY IN WHICH A FEDERAL MILITARY BASE OR INSTALLATION IS CLOSED, OR SCHEDULED TO BE CLOSED AND WHEN A FEDERAL FACILITY HAS HAD A SPECIFIC JOB LOSS; AND TO REPEAL SECTION 12-10-70, RELATING TO BENEFITS UNDER THE ENTERPRISE ZONE ACT OF 1995, AND TO PROVIDE EFFECTIVE DATES.
At 2:25 P.M. the House resumed, the SPEAKER in the Chair.
On motion of Rep. BAXLEY, with unanimous consent, the following was taken up for immediate consideration:
H. 5111 -- Reps. Baxley, Neilson and J. Hines: A CONCURRENT RESOLUTION TO EXPRESS THE SINCERE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE TOWN OF HARTSVILLE ON THE OCCASION OF BEING NAMED ONE OF THE TEN WINNERS OF THE 1996 ALL-AMERICAN CITY AWARD BY THE NATIONAL CIVIC LEAGUE AND TO EXPRESS GRATITUDE TO THE CITIZENS, TOWN OFFICIALS, AND BUSINESSES OF HARTSVILLE FOR THEIR TIRELESS EFFORTS TO IMPROVE OUR STATE.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
Reps. SPEARMAN and RICHARDSON sang the following song relating to the 1996 Session:
In 1996 we took a little trip
Over to Columbia where the Legislature sits
The flags were still a'flyin
But the doors they were all closed
We had to go across the street
To see what would unfold
CHORUS:
We tried to get across but the cars were all a'comin'
Up and down Assembly there were pickups by the score
Honking their horns cause the lights they were a'changin'
Senate was a-moving like they've never done before!
Home Rule was the question back home they had to know
If the Governor had his way out the window it would go
If you wanna be a judge you gotta sit out for a year
All of us are wonderin', "Will you lawyers still be here?"
CHORUS
We're all packing pistols now while we try to compromise
There won't be hogs near riverbeds to smell and draw those flies
We tried to finish early but the Senate had to play
We're fussing 'bout the Monument and passing RDA
CHORUS
A lot of us are movin' on we'll surely miss it here
Let's all stand and give a "round" for Mr. Pat's career!
The Press will sure be kind to us on this our final day
'Cause we took a Roll Call Vote and did it for no pay!
FINAL CHORUS:
We tried to get out early but the Senate ain't a budging
Up and down the aisles they're struttin' like before
Tacking on amendments and pontificating
They can stay here if they want to
But the House is going home!
The Senate returned to the House with concurrence the following:
H. 5111 -- Reps. Baxley, Neilson and J. Hines: A CONCURRENT RESOLUTION TO EXPRESS THE SINCERE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE TOWN OF HARTSVILLE ON THE OCCASION OF BEING NAMED ONE OF THE TEN WINNERS OF THE 1996 ALL-AMERICAN CITY AWARD BY THE NATIONAL CIVIC LEAGUE AND TO EXPRESS GRATITUDE TO THE CITIZENS, TOWN OFFICIALS, AND BUSINESSES OF HARTSVILLE FOR THEIR TIRELESS EFFORTS TO IMPROVE OUR STATE.
Rep. FELDER moved that the House do now adjourn Sine Die, which was adopted.
At 2:30 P.M. the House in accordance with the motion of Rep. CATO adjourned Sine Die in memory of former Rep. CLYDE MOULTRIE DANGERFIELD of Mt. Pleasant, former Chairman of Labor, Commerce and Industry Committee.
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