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(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.

(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, 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) (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

(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

(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.

(W) (1) The investor shall file the returns, contracts, and other information which may be required by the Department of Revenue and Taxation.

(2) Fee payments, and returns calculating fee payments, are due at the same time as property tax payments and property tax returns would be due if the property were owned by the party obligated to make such fee payments and file such returns.

(3) Failure to make a timely fee payment and file required returns shall result in penalties being assessed as if the payment or return was a property tax payment or return.

(4) The Department of Revenue and Taxation may issue the rulings and promulgate regulations it determines necessary or appropriate to carry out the purpose of this section.

(5) The provisions of Chapters 4 and 54 of Title 12 applicable to property taxes shall apply to this section; and for purposes of such application, the fee shall be considered a property tax. Sections 12-54-20, 12-54-80, and 12-54-155 do not apply to this section.

(X) Except as otherwise expressly provided in subsection (C)(2), any loss of fee benefits under this section shall be prospective only from the date of noncompliance and, subject to subsection (U), only with respect to that portion of the project to which such noncompliance relates; provided, however, that such loss of fee benefits cannot result in the recovery from the fee-paying entity of fee payments for more than:

(1) three years from the date a return concerning the fee is filed for the time period during which the noncompliance occurs, absent a showing of bad faith noncompliance, in which case such three-year period shall instead be a ten-year period; or

(2) ten years if no such return is filed for the time period during which the noncompliance occurs.

(Y) Section 4-29-65 shall be inapplicable with respect to this section. All references in this section to taxes shall be considered to mean South Carolina taxes unless otherwise expressly stated.

(Z) 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

(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."

SECTION 24. Section 4-29-69(A)(2)(b) and (5) of the 1976 Code, as added by Act 123 of 1993, are amended to read:

"(2)(b) is located in a county which is designated at the beginning of the consolidation period as a less-developed county by the South Carolina Tax Commission Department of Revenue pursuant to Section 12-7-1220.

(5) `Consolidation period' means the eighteen-month period beginning on the first date that assets are transferred to the facility in this State from the manufacturing facility in the other state. The South Carolina Economic Development Board Division of State Development of the South Carolina Department of Commerce shall certify in writing to the South Carolina Tax Commission Department of Revenue the specific date that the consolidation period begins."

SECTION 25. Section 9-1-1535 of the 1976 Code is amended to read:

"Section 9-1-1535. Conservation Enforcement officers of the Law Natural Resources Enforcement section Division of the South Carolina Wildlife and Marine Resources Department shall be of Natural Resources are retired no later than the end of the fiscal year in which they reach their sixty-fifth birthday."

SECTION 26. Section 10-1-100 of the 1976 Code is amended to read:

"Section 10-1-100. All invitations for bid proposals for construction projects (but not including South Carolina Highway Department Department of Transportation projects) issued by the State, its authorities, commissions, departments, committees, or agencies, or any political

SECTION 27. Section 11-9-825, as last amended by Act 181 of 1993, is further amended to read:

"Section 11-9-825. The staff of the Board of Economic Advisors must be supplemented by the following officials who each shall designate one professional from their individual staffs to assist the BEA staff on a regular basis: the Governor, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Finance Committee, the State Director of the Department of Revenue and Taxation Chairman, and the Director of the Budget Division of the Budget and Control Board. The BEA staff shall meet monthly with these designees in order to solicit their input."

SECTION 28. Section 12-4-15 of the 1976 Code, as added by Act 181 of 1993, is amended to read:

"Section 12-4-15. (A) The Department of Revenue and Taxation must be divided into such divisions as the commissioner of the department or director may prescribe but shall consist of at least the following principal divisions: tax, motor vehicle titling, registration and licensing and commercial motor vehicle services.

(B) Each division shall be supervised by a deputy director or designee of the Department of Revenue and Taxation."

"(C) After February 1, 1995, the department will be governed in matters of policy and administration by a director appointed by the Governor with the advice and consent of the Senate. The director shall possess sound moral character, superior knowledge in taxation, and proven administrative ability and must be an attorney experienced in tax matters or a certified public accountant. The director may be removed from office pursuant to the provisions of Section 1-3-240."

SECTION 30. Section 12-4-40 of the 1976 Code, as last amended by Act 50 of 1991, is further amended to read:

"Section 12-4-40. Each commissioner The director, within thirty days after notice of appointment and before taking office, shall take and file with the Secretary of State the oath of office prescribed by the State Constitution."

SECTION 31. Section 12-4-50 of the 1976 Code, as last amended by Act 50 of 1991, is further amended to read:

"Section 12-4-50. The terms term of office of the commissioners are director is six four years each, with the term of one member expiring every two years. Each commissioner The director shall remain in office until his successor is appointed and qualifies."

SECTION 32. Section 12-4-60 of the 1976 Code, as last amended by Act 50 of 1991, is further amended to read:

"Section 12-4-60. The commissioners director shall receive an annual salary set by the General Assembly and reimbursement for their expenses incurred while engaged in the work of the commission department in the same manner as other state officers."

SECTION 33. The first paragraph of Section 12-4-70 of the 1976 Code, as last amended by Act 50 of 1991, is further amended to read:

"The chairman director of the commission shall devote the time required to perform the duties of the office and may not:"

SECTION 34. Section 12-4-340 of the 1976 Code, as last amended by Section 101 of Act 164 of 1993, is further amended to read:

"Section 12-4-340. The commission department, for the purposes of collecting delinquent taxes due from a taxpayer, may contract with a collection agency, within or without the State, for the collection of delinquent taxes, including penalties and interest as provided in Section 12-54-227."

SECTION 35. Section 12-4-760 of the 1976 Code is amended to read:

"Section 12-4-760. In addition to any right of appeal otherwise provided by law, a taxpayer may appeal from the decision of the commission

SECTION 36. The first paragraph of Section 12-21-2423 of the 1976 Code, as amended by Section 22, Part II, Act 497 of 1994, is further amended to read:

"An amount equal to one-fourth of the license tax on admissions to a major tourism or recreation facility collected by the Department of Revenue and Taxation beginning when the facility is open to the general public and ending fifteen years thereafter after that time must be paid to the county or municipality in which the major tourism or recreation facility is located to be used directly or indirectly for additional infrastructure improvements. If the facility is located in an unincorporated area of a county, the payment must be made to the county governing body and, if located within the corporate limits of a municipality, the payment must be made to the municipal governing body. The county or municipal governing body may share funds received from these payments with another county, special purpose district, or municipal governing body to provide additional infrastructure facilities or services in support of the tourism or recreation facility that generates the admission tax revenues responsible for the payments. An additional amount equal to one-fourth of the license tax on admissions to a major tourism or recreation facility collected by the Department of Revenue and Taxation department beginning when the facility is open to the general public and ending fifteen years thereafter after that time must be transferred to the State Treasurer to be deposited into a special tourism infrastructure development fund and distributed pursuant to the approval of the Advisory Coordinating Council for Economic Development of the Department of Commerce as provided in this section. Deposits into the fund must be separated into special accounts based on which facility generated the transfer. Local units of governments within five miles of a major tourism or recreation facility may apply to the council for infrastructure development grants from the special account for which they are eligible. The amount of the funds received by each of the eligible local governments must be determined by the council based upon its review of a grant application submitted by each government. Preference must be given to applications for projects which directly or indirectly serve the generating facility or other development

SECTION 37. Section 12-21-2720(C) of the 1976 Code, as added by Section 19, Part II, Act 164 of 1993, is amended to read:

"(C) In addition to any fees set forth under subsection (A)(3), there is imposed a one-time nonrefundable fee of five hundred dollars on all licenses issued on such the machines for the period between July 1, 1993, and June 30, 1995. The revenue from this fee must be placed in a special account and used exclusively for the purpose of monitoring these machines on a twenty-four hour a day basis. The Tax Commission Department of Revenue is responsible for administering this account and implementing, through regulations as approved by the General Assembly, its requirements."

SECTION 38. Section 12-21-2738 of the 1976 Code, as last amended by Section 19, Part II, Act 164 of 1993, is further amended to read:

"Section 12-21-2738. A person who fails, neglects, or refuses to comply with the terms and provisions of this article or who fails to attach the required license to any machine, apparatus, billiard, or pocket billiard table, as herein required, is subject to a penalty of fifty dollars for each failure, and the penalty must be assessed and collected by the commission department.

If the violation under this section relates to a machine licensed pursuant to Section 12-21-2720(A)(3), the applicable penalty amount is two thousand five hundred dollars, no part of which may be suspended, and one-half of this penalty must be deposited to the credit of the general fund of the State and one-half must be retained by or forwarded to the law enforcement or administrative agency charging the violation."

SECTION 39. Article 20, Chapter 21, Title 12 of the 1976 Code, as added by Section 19, Part II, Act 164 of 1993, is amended to read:

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