Journal of the Senate
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995

Page Finder Index
| Printed Page 1200, Mar. 29 | Printed Page 1220, Mar. 29 |
Printed Page 1210 . . . . . Wednesday, March 29, 1995
Senator DRUMMOND from the Committee on Finance submitted a favorable report on:

S. 645 -- Senators Drummond and J. Verne Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 9-1-1970, 9-8-240, 9-9-240, AND 9-11-350 SO AS TO CONFORM THE COMPENSATION OF MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, GENERAL ASSEMBLY RETIREMENT SYSTEM, AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM TAKEN INTO ACCOUNT FOR PURPOSES OF CALCULATING BENEFITS TO THE PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986 AND TO PROVIDE EXCEPTIONS.

Ordered for consideration tomorrow.

Senator WILSON from the General Committee submitted a favorable report on:

H. 3143 -- Reps. D. Smith, Inabinett, Kelley, Seithel and Cain: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 53-3-130 SO AS TO PROVIDE FOR GOLF WEEK.

Ordered for consideration tomorrow.

Senator WILSON from the General Committee submitted a favorable report on:

H. 3487 -- Reps. Hutson, Moody-Lawrence, Baxley, Jennings, Cain, Neilson, Quinn, Cromer, Harrison, Cobb-Hunter, Cave, L. Whipper, Bailey, Sharpe, McElveen, Worley, S. Whipper, Koon, Knotts, Kennedy, Law, Walker, Wilder, Simrill, White, Inabinett, Limehouse, Fulmer, J. Harris, Robinson, Kelley, Wells, Trotter, Neal, Williams, Shissias, Hines, Keyserling, Riser, Rhoad, Kinon, Harwell, Witherspoon, Davenport, Seithel, Whatley, Richardson, J. Brown, Byrd, McMahand, H. Brown, G. Brown, Townsend, R. Smith, J. Young, Spearman, Carnell, D. Smith, Herdklotz, Huff, Rice, Vaughn, Stuart, Stille, Meacham, Wright, Wilkes, Limbaugh, Lloyd, Keegan, Haskins, Phillips, Wofford, McAbee, P. Harris, Hodges, Tucker, Dantzler, Askins, Howard, Lanford,

Printed Page 1211 . . . . . Wednesday, March 29, 1995
Klauber and Allison: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-692 SO AS TO DESIGNATE SOUTH CAROLINA GROWN TEA AS THE OFFICIAL HOSPITALITY BEVERAGE OF THE STATE.

Ordered for consideration tomorrow.

HOUSE CONCURRENCE

S. 663 -- Senators Hayes, Peeler, Gregory and Short: A CONCURRENT RESOLUTION TO EXPRESS THE DEEPEST SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE FAMILY AND MANY FRIENDS OF ONE OF THIS STATE'S MOST RESPECTED CITIZENS, GEORGE ANDERSON DOUGLAS SR. OF ROCK HILL, WHO PASSED AWAY FRIDAY, MARCH 3, 1995.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 664 -- Senators J. Verne Smith, Russell, Reese and Courtney: A CONCURRENT RESOLUTION TO OFFER THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO ONE OF THIS STATE'S MOST PROMINENT ART EDUCATORS, DR. CHRISTINE DAVIS, UPON BEING NAMED THE 1995 NATIONAL ART EDUCATION ASSOCIATION (NAEA) NATIONAL SECONDARY ART EDUCATOR OF THE YEAR.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 665 -- Senators J. Verne Smith, Martin and Alexander: A CONCURRENT RESOLUTION TO OFFER THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO ONE OF THIS STATE'S MOST PROMINENT ART EDUCATORS, MS. ELIZABETH SMITH, THE RECIPIENT OF THE 1995 NATIONAL ART EDUCATION ASSOCIATION (NAEA) DISTINGUISHED SERVICE AWARD.

Returned with concurrence.

Received as information.

Printed Page 1212 . . . . . Wednesday, March 29, 1995
HOUSE CONCURRENCE

S. 666 -- Senators J. Verne Smith, Peeler, Hayes, Gregory and Short: A CONCURRENT RESOLUTION TO OFFER THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO ONE OF THIS STATE'S MOST PROMINENT ART EDUCATORS, DR. MARGARET JOHNSON, UPON BEING NAMED THE 1995 NATIONAL ART EDUCATION ASSOCIATION (NAEA) NATIONAL HIGHER EDUCATION DIVISION ART EDUCATOR OF THE YEAR.

Returned with concurrence.

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

THIRD READING BILL

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 27 -- Senator Mescher: A BILL TO AMEND SECTION 7-13-70, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPOINTMENT OF COUNTY COMMISSIONERS OF ELECTIONS, SO AS TO DELETE PROVISIONS REQUIRING THE STATE ELECTION COMMISSION TO VERIFY THE APPOINTEES AS REPRESENTING CERTAIN POLITICAL PARTIES AND PROVIDE A PROCEDURE FOR THE VERIFICATION TO BE MADE TO THE COUNTY LEGISLATIVE DELEGATION BY THE COUNTY POLITICAL PARTY.

AMENDED, READ THE SECOND TIME

WITH NOTICE OF GENERAL AMENDMENTS

H. 3775 -- Reps. H. Brown, Wofford, Williams, Law and Dantzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1275 SO AS TO ALLOW CREDITS AGAINST THE CORPORATE INCOME TAX, CORPORATE LICENSE TAX, SALES AND USE TAX, LOCAL OPTION SALES AND USE TAX, AND SIMILAR TAXES FOR A TAXPAYER CONSTRUCTING OR OPERATING A QUALIFIED RECYCLING FACILITY AND TO DEFINE "QUALIFIED RECYCLING FACILITY" AND OTHER TERMS ASSOCIATED WITH THIS CREDIT; TO AMEND SECTION 4-29-67, AS AMENDED, RELATING TO THE FEE IN LIEU OF

Printed Page 1213 . . . . . Wednesday, March 29, 1995
TAXES, SO AS TO PROVIDE SPECIAL PROVISIONS FOR A FEE IN LIEU AGREEMENT FOR A PROJECT THAT IS A QUALIFIED RECYCLING FACILITY; TO AMEND SECTION 12-7-1200, RELATING TO THE ACCOUNTING BASIS OF INCOME TAX RETURNS, SO AS TO AUTHORIZE SEPARATE ACCOUNTING FOR THE BUSINESS ACTIVITIES OF A TAXPAYER BUILDING OR OPERATING A QUALIFIED RECYCLING FACILITY WITH THE APPROVAL OF THE DEPARTMENT OF REVENUE AND TAXATION AFTER THE CERTIFICATION OF THE ADVISORY COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT PROPERTY AND FUELS USED BY OR FOR A QUALIFIED RECYCLING FACILITY.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator HAYES proposed the following amendment (JIC\5706HTC.95), which was adopted:

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

/SECTION ___. A. Item 6 of the schedule contained in the first paragraph of Section 12-37-930 of the 1976 Code is amended by adding at the end:

"(c) Electronic Interconnection Component Assembly Devices for Computers and Computer Peripherals. . . . .30%

Includes the manufacture of interconnection component assemblies and devices which are incorporated in computers or computer peripherals. Computer peripherals include tape drives, compact disk read-only memory systems, hard disks, drivers, tape streamers, monitors, printers, and power supplies."

B. The penultimate paragraph of Section 12-37-930 of the 1976 Code, as last amended by Act 516 of 1994, is further amended to read:

"In no event may the original cost be reduced more than eighty percent, except this limit is ninety percent for custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals. In the year of acquisition, depreciation is allowed as if the property were owned for the full year. The term `original cost' means gross capitalized cost, including property on which the taxpayer made the election allowed pursuant to

Printed Page 1214 . . . . . Wednesday, March 29, 1995
Section 179 of the Internal Revenue Code of 1986, as shown by the taxpayer's records for income tax purposes. For purposes of this paragraph, custom molds and dies used in the conduct of manufacturing electronic interconnection component assembly devices for computers and computer peripherals are molds and dies designed, produced, and conditioned to the special order of a manufacturer."/

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

Senator HAYES proposed the following amendment (JIC\5707HTC.95), which was adopted:

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

/SECTION ___. Section 12-7-1220(H)(2) of the 1976 Code, as last amended by Section 48, Part II, Act 171 of 1991, is further amended to read:

"(2) `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."/

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

Senator HAYES proposed the following amendment (PT\1876HTC.95), which was adopted:

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

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

"Section 12-10-80. (A) Upon certification by the council to the department of the council's determination that a business is a qualifying

Printed Page 1215 . . . . . Wednesday, March 29, 1995
business, a qualifying business may collect a job development fee by retaining an amount of employee withholding permitted by subsection (C) or (D), but not both, for the purposes permitted by subsection (B) or (D), respectively. The amount 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 April fifteenth 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 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, (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

Printed Page 1216 . . . . . Wednesday, March 29, 1995
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.

(D) Subject to the conditions in this section, any qualifying business in an enterprise zone 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. 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

Printed Page 1217 . . . . . Wednesday, March 29, 1995
college thatprovides the training to defray the costof 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.

(E) Each qualified business which has retained employee withholding under this section, shall report each employee s state withholding to the United States, this State, and the employee as if the retained withholding had been paid over to the State pursuant to Chapter 9 of this title.

(F) Any job development fee of a qualifying business permanently lapses upon expiration or termination of the revitalization agreement. In the event of termination, the qualifying business shall immediately cease to retain employee withholding and immediately cease spending funds from the escrow account. Within thirty days of the expiration or termination of the revitalization agreement, the qualifying business shall pay over all the funds remaining in the escrow account to the department as withholding taxes.

(G) For purposes of the job development fee allowed by this section, an employee is a person whose job was created in this State."

B. The provisions of Section 12-10-80 of the 1976 Code as added by this section supersede the provisions of Section 12-10-80 of the 1976 Code as added by the enactment of H.3534 of 1995./

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

Senators COURSON, JACKSON, PATTERSON and GIESE proposed the following amendment (DKA\3857HTC.95), which was adopted:

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

/SECTION __. A. The 1976 Code is amended by adding:

"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;

Printed Page 1218 . . . . . Wednesday, March 29, 1995
(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; or

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

B. The provisions of Section 12-10-40 of the 1976 Code as added by this act are intended to supersede the provisions of Section 12-10-40 of the 1976 Code as added by the enactment of H. 3534 of 1995./

Renumber sections to conform.

Amend title to conform.

Senator COURSON explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.

Printed Page 1219 . . . . . Wednesday, March 29, 1995
SECOND READING BILLS

The following Bills and Joint Resolution having been read the second time were ordered placed on the third reading Calendar:

H. 3659 -- Rep. Cato: A BILL TO AMEND ACT 199 OF 1971, AS AMENDED, RELATING TO THE NORTH GREENVILLE FIRE DISTRICT, SO AS TO PROVIDE THAT MEMBERS OF THE GOVERNING BODY MUST BE ELECTED ON THE FIRST TUESDAY AFTER THE FIRST MONDAY IN NOVEMBER OF ODD-NUMBERED YEARS AND PROVIDE THAT THE TERMS OF MEMBERS SERVING ON THE EFFECTIVE DATE OF THIS ACT ARE EXTENDED UNTIL THEIR SUCCESSORS ARE ELECTED AND QUALIFY.

H. 3659--Ordered to a Third Reading

On motion of Senator J. VERNE SMITH, H. 3659 was ordered to receive a third reading on Thursday, March 30, 1995.

S. 546 -- Senators Glover and Ford: A BILL TO AMEND CHAPTER 1, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-1-260 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL OR A PERSON PERFORMING AN EARLY PERIODIC SCREENING, DIAGNOSIS, AND TREATMENT SCREENING (EPSDT) OR EXAMINATION OF A CHILD TO REFER THE CHILD TO AN APPROPRIATE AGENCY FOR AN ASSISTIVE TECHNOLOGY EVALUATION IF IT IS DETERMINED THAT THE CHILD MAY BENEFIT FROM SUCH TECHNOLOGY.

H. 3190 -- Reps. P. Harris, Waldrop, Neilson, J. Brown, Inabinett, Rhoad, Shissias and Wilkes: A BILL TO AMEND SECTIONS 43-21-10 AND 43-21-20, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DIVISION ON AGING IN THE OFFICE OF THE GOVERNOR AND ITS ADVISORY COMMISSION SO AS TO CHANGE ITS NAME TO THE ADVISORY COUNCIL AND REVISE ITS COMPOSITION AND TO PROVIDE FOR NOMINATIONS TO BE MADE FROM WHICH THE GOVERNOR SHALL MAKE THE APPOINTMENTS WITH THE ADVICE AND CONSENT OF THE SENATE.

H. 3577 -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE

Printed Page 1220 . . . . . Wednesday, March 29, 1995
DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO CAMPS, DESIGNATED AS REGULATION DOCUMENT NUMBER 1807, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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