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Rep. MARCHBANKS moved to reconsider the vote whereby the following Bill was given a third reading, which was agreed to.
S. 879 -- Senators Martin and Alexander: A BILL TO AMEND SECTION 7-7-450, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VOTING PRECINCTS FOR PICKENS COUNTY, SO AS TO CONSOLIDATE THE UNIVERSITY PRECINCT AND THE FORT HILL PRECINCT IN PICKENS COUNTY INTO A SINGLE PRECINCT ENTITLED THE "FORT HILL" PRECINCT.
Rep. MARCHBANKS, with unanimous consent, proposed the following Amendment No. 1 (Doc Name P:\amend\PT\2152DW.96), which was adopted.
Amend the bill, as and if amended, SECTION 2, beginning on Page 3, Line 43, after /document/ by deleting /P-/ and on Page 4, Line 1, by deleting /77-93/ and inserting /P-7796/.
Amend title to conform.
The Bill, as amended, was read the third time, and ordered returned to the Senate with amendments.
The following Bill was taken up.
H. 4397 -- Reps. Wilkins, Huff, Sharpe, H. Brown, D. Smith, Cato, Townsend, Haskins, J. Brown, Littlejohn, Herdklotz, Hutson, J. Young, Jennings, Simrill, Bailey, Harrell, Allison, Law, Walker, Gamble and Richardson: A BILL ENACTING THE ECONOMIC DEVELOPMENT INDUSTRIAL CLUSTER ACT OF 1996, BY AMENDING THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-6-3480, 38-7-190, AND 12-10-45 SO AS TO ALLOW CERTAIN INCOME TAX CREDITS TO BE APPLIED AGAINST INSURANCE PREMIUM TAX LIABILITIES AND VICE VERSA AND TO PROVIDE FOR THE DESIGNATION OF ADDITIONAL ENTERPRISE ZONES IN THE CASE OF PROJECTS OF QUALIFYING TIRE MANUFACTURERS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO EXTEND THE TAX CREDIT CARRY FORWARD PERIOD FROM TEN TO FIFTEEN YEARS; TO AMEND SECTION 12-10-70,
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name P:\amend\GJK\22199HTC.96), which was adopted.
Amend the bill, as and if amended, by striking Sections 3 and 4 and inserting:
/SECTION 3. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3480. (A) Notwithstanding any other provision of law:
(1) Any credits under Title 38 may be applied against any taxes imposed under this chapter or license fees imposed under Chapter 20 of this title.
(2) Any credits under this chapter which are earned by one member of a controlled group of corporations may be used and applied by that
(3) Any limitations upon the total amount of liability for taxes or license fees that can be reduced by the use of a credit must be computed before any other credit is used to reduce any tax or license fee liability under this chapter or Chapter 20 of this title. Subject to item (4), the taxpayer may apply any credits arising under this chapter in any order the taxpayer elects.
(4) No credit may be sued more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them.
(5) As used in this section:
(a) the term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A), only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) the term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.
B. This section is effective for tax years beginning after 1995."
SECTION 4. A. Chapter 20, Title 12 of the 1976 Code, as added by Act 76 of 1995, is amended by adding:
"Section 12-20-105. License fees may be reduced by credits as provided in Section 12-6-3410 or Section 12-6-3480, or both of these sections.
B. This section is effective for tax year beginning after 1995."
SECTION 5. A. Chapter 7, Title 38 of the 1976 Code is amended by adding:
"Section 38-7-190. (A) Notwithstanding any other provision of law:
(1) Any credits under Chapter 6 of Title 12 may be applied against any taxes, license fees, and other assessments imposed under this title.
(2) Any credits under this title which are earned by one member of a controlled group of corporations may be used and applied by that member and any other members of the controlled group of corporations.
(3) Any limitations upon the total amount of liability for taxes that can be reduced by the use of a credit must be computed before any credit is used to reduce any tax liability under this title. Subject to item (4), the taxpayer may apply any credits arising under this title in any order the taxpayer elects.
(5) As used in this section:
(a) The term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A) only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);
(b) The term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.
B. This section is effective for tax years beginning after 1995."/
Amend further, by striking Section 12-10-70(1)(b), as contained in Section 7, page 5, and inserting:
/(b) If the business is a tire manufacturer that has a capital investment in this State which exceeds one billion dollars and employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed, the qualifying business is entitled to the jobs tax credit for the period and in the amount provided in Section 12-7-1220(B) 12-6-3360(C)(1); in addition, a qualifying business is entitled to an additional five hundred dollars a year tax credit in the third, fourth, and fifth year of any AFDC recipient's continued employment with the qualifying business, based on the status of the employee at the time of beginning employment. Except as stated below, a new job is not considered a new job for the purpose of this credit if it replaces the same job that was part of a reduction in force in the preceding twelve months. A tire manufacturer may qualify as new jobs up to ninety percent of the employees transferred from an existing project in the State to one of up to three new projects approved by the council if:
(i) the tire manufacturer has a capital investment in this State which exceeds one billion dollars, as defined in Section 12-10-45;
(ii) the tire manufacturer employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed;
(iii) the tire manufacturer makes a capital investment in excess of five hundred million dollars in this State over the five-year period beginning on the stipulated date; and
(iv) the council and the tire manufacturer enter into a revitalization agreement that, among other provisions:
(A) clearly defines the three new projects,
(C) includes a provision for an audit by the Department of Revenue and Taxation to ensure that the credit for transferred employees is only allowed for employees transferred for valid business reasons from projects in operation in the State on the stipulated date to one of the three defined new projects, and
(D) no credit will be allowed for employees transferred solely to obtain the credit./
Amend further, Section 12-10-80(A), as contained in Section 8A, page 6, line 17, by striking /April fifteenth/ and inserting /June thirtieth/ so that when amended Section 12-10-80(A) reads:
"(A) Upon certification by the council to the department of the council's determination that a business is a qualifying business, a qualifying business may collect a job development fee by retaining an amount of employee withholding permitted by subsection (C) or (D), or both but not both, for the purposes permitted by subsection (B) or (D), respectively. The amount retained is the property of the business, subject to all of the conditions in this section including the later possible requirement that the funds be transferred to this State as withholding and the possible forfeiture of the funds to this State as misappropriated withholding. The retained withholding withheld must be maintained in an escrow account with a bank which is insured by the Federal Deposit Insurance Corporation. To the extent the money is not used as permitted by subsection (B) or (D), it must be treated as misappropriated employee withholding. Employee withholding may not be retained from an employee whose job was created in this State before the entry of the qualifying business into a revitalization agreement. If a qualifying business retains employee withholding under this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business retaining employee withholding under this section shall file with the council and the department the information and documentation respecting the retention and use of the employee withholding according to the revitalization agreement. Each qualifying business which retains in excess of ten thousand dollars in any calendar year shall furnish an audited report prepared by an independent certified 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
Amend further, by inserting an appropriately numbered penultimate section to read:
/SECTION . As used in the amendments to Section 12-10-70(1)(b) contained in this act, the phrase "stipulated date" means the general effective date of this act and the Code Commissioner in the preparation of the cumulative supplement to the Code of Laws of South Carolina, 1976, is directed to delete the phrase "stipulated date" and insert the calendar date that is the general effective date of this act./
Renumber sections to conform.
Amend title to conform.
Rep. KENNEDY spoke against the Bill.
Rep. WILKES spoke in favor of the Bill.
Rep. WHITE spoke against the Bill.
Rep. McABEE proposed the following Amendment No. 5 (Doc Name P:\amend\GJK\22235HTC.96), which was tabled.
Amend the bill, as and if amended, by adding an appropriately numbered section to read:
/SECTION . Chapter 10, Title 12 of the 1976 Code is amended by adding:
"Section 12-10-75. The provisions of Section 12-14-50 apply in an enterprise zone in the same manner that the benefits allowed pursuant to that section apply in economic impact zones as provided in Chapter 14 of this title, mutatis mutandis."/
Renumber sections to conform.
Amend title to conform.
Rep. McABEE explained the amendment.
Rep. HARRELL spoke against the amendment.
Rep. McABEE spoke in favor of the amendment.
Rep. HARRELL moved to table the amendment.
Those who voted in the affirmative are:
Allison Brown, H. Cain Cato Cooper Cotty Dantzler Davenport Easterday Fulmer Gamble Hallman Harrell Harris, J. Harrison Herdklotz Hutson Jaskwhich Keegan Kelley Klauber Knotts Koon Lanford Law Lee Limehouse Marchbanks Mason McCraw McKay Meacham Phillips Quinn Rice Riser Robinson Sandifer Seithel Sharpe Shissias Simrill Smith, D. Smith, R. Thomas Tripp Trotter Vaughn Walker Wells Whatley Wilkins Witherspoon Wofford Worley Wright Young Young-Brickell
Those who voted in the negative are:
Anderson Bailey Baxley Boan Breeland Brown, G. Brown, T. Byrd Canty Carnell Cave Chamblee Clyburn Cobb-Hunter Delleney Fleming Govan Harris, P. Harvin Hines, J. Hines, M. Howard Inabinett Jennings Kennedy Keyserling Kirsh Limbaugh Littlejohn Lloyd Martin McAbee McElveen McMahand McTeer Moody-Lawrence
Neal Neilson Richardson Rogers Scott Sheheen Spearman Stille Stoddard Stuart Townsend Tucker Waldrop Whipper, L. Whipper, S. White Wilder Wilkes Williams
So, the amendment was tabled.
Reps. NEAL, SCOTT and KENNEDY spoke against the Bill.
Reps. JENNINGS, RICHARDSON, G. BROWN and WILKES spoke in favor of the Bill.
The question then recurred to the passage of the Bill, as amended, on second reading.
Rep. NEAL demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Allison Anderson Askins Bailey Baxley Boan Breeland Brown, G. Brown, H. Brown, J. Brown, T. Byrd Cain Carnell Cato Cave Chamblee Clyburn Cobb-Hunter Cooper Cotty Cromer Dantzler Delleney Easterday Felder Fleming Fulmer Gamble Govan Hallman Harrell Harris, J. Harris, P. Harrison Harvin Herdklotz Hines, J. Hines, M. Hodges Howard Hutson Inabinett Jaskwhich Jennings Keegan Kelley Keyserling Kinon Kirsh Klauber Knotts Koon Lanford
Law Lee Limbaugh Limehouse Littlejohn Lloyd Marchbanks Martin Mason McAbee McCraw McElveen McKay McMahand McTeer Meacham Moody-Lawrence Neilson Phillips Quinn Rice Richardson Riser Robinson Rogers Sandifer Scott Seithel Sharpe Sheheen Shissias Simrill Smith, D. Smith, R. Spearman Stille Stoddard Stuart Thomas Townsend Tripp Trotter Tucker Vaughn Waldrop Walker Wells Whatley Whipper, L. Whipper, S. Wilder Wilkes Wilkins Williams Witherspoon Wofford Wright Young Young-Brickell
Those who voted in the negative are:
Canty
So, the Bill, as amended, was read the second time and ordered to third reading.
The Enterprise Legislation adopted last year in the General Assembly made South Carolina more competitive, attractive, and equipped to locate, maintain, and help industry expand in South Carolina.
The Economic Development Industrial Cluster Act certainly does help industry that will be locating in certain portions of South Carolina. However, unfortunately, poor-rural areas and counties of South Carolina cannot at this time benefit as much from economic incentive legislation of these type because of some important missing necessities such as:
Poor-rural counties in South Carolina must be made industry ready. Happily next time, legislation such as The Economic Development Industrial Cluster Act can have impact on poor rural counties because the legislature would have already equipped these poor-rural areas to make them more competitively attractive for industry.
Rep. THEODORE A. BROWN
The following Bill was taken up.
H. 3879 -- Rep. Witherspoon: A BILL TO AMEND SECTION 50-3-315, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEPUTY ENFORCEMENT OFFICERS OF THE NATURAL RESOURCES ENFORCEMENT DIVISION OF THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO REVISE THEIR AUTHORITY, POWERS, AND REQUIREMENTS.
The Agriculture, Natural Resources and Environmental Affairs Committee proposed the following Amendment No. 1 (Doc Name P:\amend\DKA\3425HTC.96), which was adopted.
Amend the bill, as and if amended, Section 50-3-315(A), as contained in SECTION 1, page 1, line 36, by striking /officers/ and inserting / officers, except for designated department employees, /, so that when amended Section 50-3-315(A) reads:
/(A) The director may appoint deputy enforcement officers to who serve at the pleasure of the director without pay and shall establish their territorial jurisdiction. The officers, when acting in their official capacity, may enforce all laws and regulations relating to wildlife, marine, or natural resources within have statewide police power. However, the director may restrict their territorial jurisdiction. The powers and duties of the officers must be established by regulations of the department. Deputy enforcement officers serve at the pleasure of the director. No person may be appointed as an officer who holds another public office. The Secretary of State shall transmit to the director the commissions of all officers. The director shall transmit each commission to the office of the clerk of court for the county in which the officer resides only after he files the oaths and officers, except for designated department employees, shall obtain the bonds required by Section 50-3-330./
Amend title to conform.
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