Indicates Matter Stricken
Indicates New Matter
The House assembled at 12:00 noon.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr. as follows:
Our thought for today is from Psalm 40:1: "I waited patiently for the Lord; He turned to me and heard my cry.
Let us pray. Open our ears and heart, dear God, that we might discern how the faith and trust that others have put in us to give our best to offer what is the most productive and meaningful legislation. Now, may we have trust in You to lead us to great and noble things. Bless our Nation, our President, our State and our leaders. Keep our defenders of freedom safe and in Your care. In the name of our Lord. 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 Friday, the SPEAKER ordered it confirmed.
Rep. PINSON moved that when the House adjourns, it adjourn in memory of Robin, James, Bradley and Brittany Strong of McCormick who were killed in an airplane crash, which was agreed to.
The following was received:
Columbia, S.C., January 13, 2005
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has overridden the veto by the Governor on R. 410, H. 3831 by a vote of 31 to 0:
R. 410, H. 3831 (Word version) -- Reps. Cato, Chellis, Coates, Cobb-Hunter, Edge, Emory, Harrison, Huggins, Limehouse, Sandifer, J.E. Smith, Talley
Very respectfully,
President
Received as information.
The following was received:
Columbia, S.C., January 13, 2005
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has overridden the veto by the Governor on R. 356, H. 3409 by a vote of 45 to 0:
R. 356, H. 3409 (Word version) -- Reps. Clemmons, Altman, Bailey, Chellis, Clark, Edge, Keegan, Lloyd, Mahaffey, M.A. Pitts, Viers, Martin and Miller: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-35-175 SO AS TO PROVIDE A PROCESS FOR ESTABLISHING FIREWORKS PROHIBITED ZONES WITHIN COUNTIES AND MUNICIPALITIES; AND TO AMEND SECTION 15-78-60, RELATING TO EXCEPTIONS TO THE WAIVER OF IMMUNITY UNDER THE SOUTH CAROLINA TORT CLAIMS ACT, SO AS TO EXEMPT LOCAL GOVERNING BODIES FROM LIABILITY FOR LOSS FROM GRANTING OR DENYING AN APPLICATION FOR EXTENDING A FIREWORKS PROHIBITED ZONE.
Very respectfully,
President
Received as information.
The following was received:
Columbia, S.C., January 13, 2005
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has overridden the veto by the Governor on R. 413, H. 3891 by a vote of 31 to 0:
R. 413, H. 3891 (Word version) -- Reps. Quinn, Herbkersman, Altman, Anthony, Bailey, Bingham, G. Brown, J. Brown, Cato, Clemmons, Cobb-Hunter, Duncan, Edge, Gilham, Harrison, Harvin, Haskins, Hayes, J. Hines, Lee, Littlejohn, Lucas, Mahaffey, McGee, Merrill, Parks, M.A. Pitts, Scarborough, F.N. Smith, J.E. Smith, Talley, Toole, Umphlett, Viers, Young and Pinson: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 6 TO CHAPTER 47, TITLE 40 SO AS TO ENACT THE "ACUPUNCTURE ACT OF SOUTH CAROLINA" TO ESTABLISH THE ACUPUNCTURE ADVISORY COMMITTEE TO BE APPOINTED BY THE BOARD OF MEDICAL EXAMINERS AND TO PROVIDE FOR ITS POWERS AND DUTIES; TO ESTABLISH REQUIREMENTS FOR LICENSURE AND LICENSURE RENEWAL AS AN ACUPUNCTURIST, AN AURICULAR THERAPIST, AND AN AURICULAR DETOXIFICATION THERAPIST AND TO ESTABLISH LICENSURE AND RENEWAL FEES; TO AUTHORIZE TEMPORARY LICENSURE OF CERTAIN INDIVIDUALS CURRENTLY PRACTICING UNTIL AN INDIVIDUAL SATISFIES THE LICENSURE REQUIREMENTS OF THIS ARTICLE; TO ESTABLISH CRITERIA FOR THE LICENSURE OF OTHER ACUPUNCTURISTS CURRENTLY PRACTICING; TO PROHIBIT PRACTICING AS AN ACUPUNCTURIST, AN AURICULAR THERAPIST, OR AN AURICULAR DETOXIFICATION THERAPIST WITHOUT BEING LICENSED AND TO PROVIDE PENALTIES; TO FURTHER PROVIDE FOR THE REGULATION OF THESE PROFESSIONALS; TO REPEAL SECTIONS 40-47-70 AND 40-47-75 RELATING TO AUTHORIZATION FOR THE PRACTICE OF ACUPUNCTURE; TO AMEND TITLE 44, RELATING TO HEALTH BY ADDING CHAPTER 132 SO AS TO ESTABLISH PROCEDURES AND REQUIREMENTS FOR THE DIRECT SUBMISSION OF CLAIMS FOR ANATOMIC PATHOLOGY SERVICES; AND BY ADDING
Very respectfully,
President
Received as information.
The following Bills were introduced, read the first time, and referred to appropriate committees:
H. 3312 (Word version) -- Rep. Witherspoon: A BILL TO AMEND SECTION 56-3-670, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FARM TRUCK LICENSE FEES, SO AS TO REVISE THE DEFINITION OF THE TERM "FARM TRUCK".
Referred to Committee on Ways and Means
H. 3313 (Word version) -- Reps. R. Brown, Merrill, Whipper, Altman, Limehouse, Miller, Moody-Lawrence and G. R. Smith: A BILL TO AMEND SECTION 47-1-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ILL-TREATMENT OF ANIMALS, SO AS TO ADD THAT THE PROVISIONS OF THE SECTION DO NOT APPLY TO MEAT PRODUCING FOWL, COMMERCIAL EGG LAYING FOWL, OR FOWL THAT IS INDIGENOUS TO THE STATE USED FOR GAME OR SPORT.
Referred to Committee on Judiciary
S. 254 (Word version) -- Senators McGill and Cleary: A BILL TO AMEND ACT 591 OF 1994, RELATING TO THE GEORGETOWN COUNTY BOARD OF ELECTIONS AND REGISTRATION, SO AS TO GIVE
The roll call of the House of Representatives was taken resulting as follows:
Agnew Altman Anderson Anthony Bailey Bales Ballentine Barfield Battle Bingham Bowers Brady Branham Breeland J. Brown R. Brown Cato Ceips Chellis Clark Clemmons Clyburn Coates Cobb-Hunter Coleman Cooper Dantzler Davenport Delleney Duncan Emory Frye Funderburk Hagood Haley Hamilton Hardwick Harrell Harrison Haskins Hayes Herbkersman J. Hines M. Hines Hinson Hiott Hosey Howard Huggins Jefferson Jennings Kennedy Kirsh Leach Lee Limehouse Littlejohn Loftis Lucas Mack Mahaffey Martin McCraw McLeod Merrill Miller J. M. Neal Norman Ott Owens Parks Phillips Pinson E. H. Pitts M. A. Pitts Rhoad Rice Rivers Rutherford Sandifer Scarborough Scott Sinclair Skelton D. C. Smith F. N. Smith G. M. Smith G. R. Smith J. E. Smith J. R. Smith
W. D. Smith Stewart Talley Taylor Toole Townsend Tripp Umphlett Vaughn Vick Viers Walker Weeks White Whitmire Wilkins Witherspoon Young
I came in after the roll call and was present for the Session on Tuesday, January 18.
Grady Brown Richard Chalk Tracy Edge James McGee Denny Neilson Karl Allen Bessie Moody-Lawrence Bill Cotty Jackson "Seth" Whipper Gary Simrill J.H. Neal
LEAVE OF ABSENCE
The SPEAKER granted Rep. DAVENPORT a leave of absence for the remainder of the day.
The SPEAKER granted Rep. PERRY a leave of absence for the week due to being in Washington, D.C.
The SPEAKER granted Rep. THOMPSON a leave of absence due to illness.
The SPEAKER granted Rep. LLOYD a leave of absence for the week due to illness.
Announcement was made that Dr. J. Capers Hiott of Wedgefield is the Doctor of the Day for the General Assembly.
In accordance with House Rule 5.2 below:
"5.2 Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."
Bill Number: H. 3006 (Word version)
Date: ADD:
01/18/05 NEILSON
Bill Number: H. 3006 (Word version)
Date: ADD:
01/18/05 BOWERS
Bill Number: H. 3007 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3009 (Word version)
Date: ADD:
01/18/05 BAILEY
Bill Number: H. 3110 (Word version)
Date: ADD:
01/18/05 TRIPP
Bill Number: H. 3011 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3012 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3124 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3155 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3158 (Word version)
Date: ADD:
01/18/05 E. H. PITTS
Bill Number: H. 3170 (Word version)
Date: ADD:
01/18/05 E. H. PITTS
Bill Number: H. 3181 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3190 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3211 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3234 (Word version)
Date: ADD:
01/18/05 BOWERS
Bill Number: H. 3249 (Word version)
Date: ADD:
01/18/05 WALKER
Bill Number: H. 3250 (Word version)
Date: ADD:
01/18/05 WALKER
Bill Number: H. 3264 (Word version)
Date: ADD:
01/18/05 BAILEY
Bill Number: H. 3264 (Word version)
Date: ADD:
01/18/05 VIERS
Bill Number: H. 3265 (Word version)
Date: ADD:
01/18/05 VIERS
Bill Number: H. 3278 (Word version)
Date: ADD:
01/18/05 VIERS
Bill Number: H. 3296 (Word version)
Date: ADD:
01/18/05 BRADY
Bill Number: H. 3304 (Word version)
Date: ADD:
01/18/05 BAILEY
Bill Number: H. 3305 (Word version)
Date: ADD:
01/18/05 VIERS
Bill Number: H. 3306 (Word version)
Date: ADD:
01/18/05 VIERS
Bill Number: H. 3006 (Word version)
Date: ADD:
01/18/05 VICK
Bill Number: H. 3006 (Word version)
Date: ADD:
01/18/05 HAGOOD
Bill Number: H. 3234 (Word version)
Date: ADD:
01/18/05 BAILEY
Bill Number: H. 3006 (Word version)
Date: ADD:
01/18/05 MARTIN
The following Bill was taken up:
H. 3006 (Word version) -- Reps. Wilkins, Harrell, W. D. Smith, J. Brown, Cato, Chellis, Harrison, Townsend, Witherspoon, Bailey, G. R. Smith, Vaughn, Davenport, Sandifer, Barfield, Young, Owens, Kirsh, Leach, E. H. Pitts, Battle, Viers, Clyburn, Littlejohn, Taylor, Rice, Hinson, Clark, Walker, Bales, Cobb-Hunter, Simrill, Chalk, Duncan, Stewart, Talley, Harvin, J. E. Smith, Altman, Skelton, Mahaffey, Vick, Hagood, Martin, Neilson and Bowers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 63 TO TITLE 12 SO AS TO ENACT THE 2005 JOBS CREATION ACT, PROVIDING FOR A CREDIT OF UP TO TWENTY-FIVE PERCENT AGAINST THE STATE INCOME TAX THE AMOUNT INVESTED BY AN INVESTOR IN THE EQUITY, NEAR-EQUITY, OR SEED CAPITAL OF A QUALIFIED BUSINESS, TO DEFINE "QUALIFIED BUSINESS" AND PROVIDE THAT THE COORDINATING COUNCIL OF THE DEPARTMENT OF COMMERCE HAS SOLE DISCRETION TO MAKE DETERMINATIONS OF "QUALIFIED BUSINESS", TO PROVIDE PROCEDURES FOR CLAIMING THE CREDIT INCLUDING ANNUAL REGISTRATION AND FEE PAYMENTS, TO REQUIRE THAT APPLICATIONS INCLUDE INFORMATION AS TO THE APPLICANT'S STATUS AS A SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESS, TO PROVIDE FOR REVOCATION OF THE CREDIT AND RECAPTURE OF THE TAX OTHERWISE DUE, AND TO PROVIDE FOR THE RESERVATION OF TWO MILLION DOLLARS OF THE CREDIT CAP FOR CERTAIN CITED RESEARCH AND DEVELOPMENT PROJECTS; BY ADDING ARTICLE 10 TO CHAPTER 37 OF TITLE 33 SO AS TO ESTABLISH A CAPITAL ACCESS PROGRAM PROVIDING FOR FLEXIBILITY IN THE MAKING OF LOANS BY FINANCIAL INSTITUTIONS TO SMALL BUSINESSES WHO FAIL TO QUALIFY FOR CONVENTIONAL OR OTHER GUARANTEED OR ASSISTED FINANCING, AND TO PROVIDE FOR FUNDING OF A LOAN LOSS RESERVE TO REPAY PARTICIPATING FINANCIAL
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\BBM\10534MM05), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Title 12 of the 1976 Code is amended by adding:
Section 12-63-10. This chapter may be cited as the '2005 Jobs Creation Act'.
Section 12-63-20. For purposes of this chapter:
(1) 'Certificate' means a document executed by the Office of the Secretary of State certifying a tax credit to which the investor is entitled.
(2) 'Equity, near-equity, or seed capital' means capital invested in common or preferred stock, debt with equity conversion rights, royalty rights, limited partnership interests, limited liability company interests, and other securities or rights that evidence ownership in private business.
(3) 'Investor' means an individual, corporation, limited liability company, or unincorporated business entity, including a general or limited partnership, that operates for profit and makes capital investments with its private funds within the requirements of this chapter.
(4) 'Qualified business' means a qualified business venture, a qualified grantee business, or a qualified licensee business.
(a) 'Qualified business venture' means a business that meets the requirements of Section 12-63-50(A).
(b) 'Qualified grantee business' means a business that has received during the current year or any of the preceding three years a grant, an investment, or other funding from a federal agency pursuant to the Small Business Innovation Research Program administered by the United States Small Business Administration or from another public or quasi-public granting entity.
(c) 'Qualified licensee business' means a business that:
(i) during its most recent fiscal year, had gross revenues, as determined in accordance with generally accepted accounting principles, of two million dollars or less on a consolidated basis; and
(ii) has been certified by a South Carolina research university as currently performing under a licensing agreement with the research university for the purpose of commercializing technology developed at the university. A South Carolina research university is The Medical University of South Carolina, Clemson University, and The University of South Carolina.
(5) 'Related person' means the taxpayer and any person that bears a relationship to the taxpayer as provided in Section 267 of the Internal Revenue Code.
(6) 'Secretary' means the Secretary of State or his designee.
Section 12-63-30. (A) An investor who invests in the equity, near-equity, or seed capital of a qualified business directly with that business is allowed as a credit against the tax imposed by Sections 12-6-510 and 12-6-530 for the taxable year an amount equal to twenty-five percent of the amount invested. The aggregate amount of credit allowed the taxpayer for one or more investments in a single taxable year, whether directly or indirectly as owner of a pass-through
(B) Each investor who is an owner of a pass-through entity is allowed as a credit against the tax imposed for the taxable year an amount equal to the owner's allocated share of the credits for which the pass-through entity is eligible. If any owner's share of the pass-through entity's credit is limited due to the maximum allowable credit pursuant to this subsection for a taxable year, the pass-through entity and its owners may not reallocate the unused credit among the other owners.
(C) Estates and trusts are not treated as individuals for purposes of this section.
(D) A credit is not allowed pursuant to this section for investment in equity, near-equity, or seed capital of a qualified business if a broker's fee or commission or other similar remuneration is paid or given directly or indirectly for soliciting the purchase.
(E)(1) To be eligible for the tax credit provided in this section, the taxpayer must file an application for the credit with the Office of the Secretary of State on or before April fifteen of the year following the calendar year in which the investment was made. An application is effective for the year in which it is timely filed. The application must be on a form prescribed by the secretary and include any supporting documentation that the secretary may require.
(2) The application for a credit for an investment made by a pass-through entity must be filed by the pass-through entity.
(3) The secretary shall certify the tax credit to the Department of Revenue by certificate as required by the Department of Revenue. This certificate does not prohibit an audit by the Department of Revenue and the later disallowance of the credit for failure to comply with the provisions of this chapter.
Section 12-63-40. (A) The credit allowed a taxpayer pursuant to Section 12-63-30 may not exceed the amount of income tax imposed by Sections 12-6-510 and 12-6-530 for the taxable year reduced by the sum of all other credits allowable except tax payments made by or on behalf of the taxpayer. The amount of unused credit may be carried forward for the next five succeeding years. The one hundred thousand
(B) The total amount of all tax credits allowed to taxpayers pursuant to Section 12-63-30 for investments made in a calendar year may not exceed ten million dollars.
(C) The taxpayer's basis in the equity, near-equity, or seed capital acquired as a result of an investment in a qualified business must be reduced for the purposes of this chapter by the amount of allowable credit. 'Allowable credit' means the amount of credit allowed pursuant to Section 12-63-30 reduced as provided in this section.
Section 12-63-50. (A) To qualify as a qualified business venture for purposes of this chapter, a business must register with the secretary. To register, the business must file with the secretary an application and supporting documents the secretary may require to determine that the business meets the requirements for registration as a qualified business venture. A business meets the requirements for registration as a qualified business venture if, on the date the business files the required application, it:
(1) had gross revenues, as determined in accordance with generally accepted accounting principles, of two million dollars or less on a consolidated basis during its most recent fiscal year before filing the application; and
(2) does not engage as a substantial part of its business in any of the following:
(a) providing a professional service;
(b) construction or contracting;
(c) selling or leasing at retail;
(d) purchasing, selling, developing, or holding for investment commercial paper, notes, other indebtedness, financial instruments, securities, or real property, or otherwise making investments;
(e) providing personal grooming or cosmetics services;
(f) offering any form of entertainment, amusement, recreation, or athletic or fitness activity for which an admission or a membership is charged;
(g) acquiring all or part of the stock or assets of one or more existing businesses;
(h) real estate-related business;
(i) providing utility services, whether regulated or not; or
(j) providing any banking, insurance, financial, securities, venture capital, or investment related activities.
(B) The effective date of registration for a qualified business venture whose application is accepted for registration is sixty days before the date its application is filed. A credit is not allowed pursuant to this chapter for an investment made before the effective date of the registration or after the registration is revoked. For the purpose of this chapter, if a taxpayer's investment is placed initially in escrow conditioned upon other investors' commitments of additional funds, the date of the investment is the date escrowed funds are transferred to the qualified business venture free of the condition.
(C) To remain qualified as a qualified business venture, the business must renew its registration annually as prescribed by the secretary by filing a financial statement for the most recent fiscal year showing gross revenues, as determined in accordance with generally accepted accounting principles, of two million dollars or less on a consolidated basis and an application for renewal in which the business certifies the facts required in the original application.
(D) Failure of a qualified business venture to renew its registration by the applicable deadline results in revocation of its registration effective as of the next day after the renewal deadline, but does not result in forfeiture of tax credits previously allowed to taxpayers who invested in the business. The secretary shall send the qualified business venture notice of revocation within sixty days after the renewal deadline. A qualified business venture may apply to have its registration reinstated by the secretary by filing an application for reinstatement, accompanied by the reinstatement application fee and a late filing penalty of one thousand dollars, within thirty days after receipt of the revocation notice from the secretary. A business that seeks approval of a new application for registration after its registration has been revoked also must pay a penalty of one thousand dollars. A registration that has been reinstated is treated as if it had not been revoked.
(E) If the gross revenues of a qualified business venture exceed two million dollars in a fiscal year, the business must notify the secretary in writing of this fact by filing a financial statement, by the end of the third month following the fiscal year, showing the revenues of the business for that year.
Section 12-63-60. (A) To qualify as a qualified licensee business for purposes of this chapter, a business must be registered with the secretary. To register, the business must file with the secretary an application and supporting documents the secretary may require to determine that the business meets the requirements for registration as a
(B) The effective date of registration for a qualified licensee business whose application is accepted for registration is the filing date of its application. A credit is not allowed pursuant to this section for an investment made before the effective date of the registration or after the registration is revoked.
(C) To remain qualified as a qualified licensee business, the business must renew its registration annually as prescribed by the secretary by filing a financial statement for the most recent fiscal year showing gross revenues, as determined in accordance with generally accepted accounting principles, of two million dollars or less on a consolidated basis and an application for renewal in which the business certifies the facts required in the original application.
(D) Failure of a qualified licensee business to renew its registration by the applicable deadline results in revocation of its registration effective as of the next day after the renewal deadline, but does not result in forfeiture of tax credits previously allowed to taxpayers who invested in the business. The secretary shall send the qualified licensee business notice of revocation within sixty days after the renewal deadline. A qualified licensee business may apply to have its registration reinstated by the secretary by filing an application for reinstatement, accompanied by the reinstatement application fee and a late filing penalty of one thousand dollars, within thirty days after receipt of the revocation notice from the secretary. A business that seeks approval of a new application for registration after its registration has been revoked also must pay a penalty of one thousand dollars. A registration that has been reinstated is treated as if it had not been revoked.
(E) If the gross revenues of a qualified licensee business exceed two million dollars in a fiscal year, the business must notify the secretary in writing of this fact by filing a financial statement, by the end of the third month following the fiscal year, showing the revenues of the business for that year.
Section 12-63-70. (A) To qualify as a qualified grantee business for purposes of this chapter, a business must be registered with the secretary. To register, the business must file with the secretary an application and supporting documents the secretary may require to determine that the business meets the requirements for registration as a qualified grantee business. The requirements for registration as a qualified grantee business are provided in Section 12-63-20(4)(b).
(B) The effective date of registration for a qualified grantee business whose application is accepted for registration is the filing date of its application. A credit is not allowed pursuant to this section for an investment made before the effective date of the registration or after the registration is revoked.
(C) To remain qualified as a qualified grantee business, the business must renew its registration annually as prescribed by the secretary by filing an application for renewal in which the business certifies the facts demonstrating that it continues to meet the applicable requirements for qualification.
(D) The tax imposed by this section is equal to the amount of all past taxes avoided as a result of the credit, plus an amount equal to interest computed at the rate provided by Section 12-54-25 from the date the taxes would have been due if the credit had not been allowed to the date they are paid, adjusted as necessary by subsection (B). The tax must be paid to the Department of Revenue and is due thirty days after the date of the act giving rise to the tax in subsection (A). A taxpayer that fails to pay the taxes due by the due date is subject to the penalties provided in Chapter 54 of Title 12.
Section 12-63-80. (A) Applications for registration, renewal of registration, and reinstatement of registration must be in the forms required by the secretary. The secretary may require applicants to furnish supporting information in addition to the information expressly required by this section. The secretary may adopt rules and promulgate regulations that are needed to carry out the secretary's responsibilities pursuant to this chapter. The secretary shall prepare blank forms for the applications and furnish them on request. Each application must be signed by the owners of the business or, in the case of a corporation, by its president, vice-president, treasurer, or secretary. The application must include an affirmation of the person making the application in the following form: 'Under penalties prescribed by law, I certify and affirm that to the best of my knowledge and belief this application is true and complete'. A person who submits a false application is guilty of a misdemeanor and, upon conviction, must be fined no more than five thousand dollars, or imprisoned not more than one year, or both.
(B) The fee for filing an initial application for registration for qualified businesses pursuant to this section is five hundred dollars. The fee for filing an application for renewal of registration pursuant to this section is two hundred dollars. The secretary may retain and carry forward these fees for purposes of implementing this chapter.
(C) An application for renewal of registration pursuant to this section must indicate if the applicant is a socially and economically disadvantaged business, as defined in Section 11-35-5010(2), and include a report of the number of jobs the business created during the preceding year that are attributable to investments that qualify pursuant to this section for a tax credit and the average wages paid by each job. An application that does not contain this information is incomplete and the applicant's registration may not be renewed until the information is provided.
Section 12-63-90. (A)(1) If the secretary finds that any of the information contained in an application of a business registered pursuant to this chapter is false, it shall revoke the registration of the business.
(2) The secretary may not revoke the registration of a business solely because it ceases business operations for an indefinite period of time, so long as the business renews its registration each year as required by this chapter.
(B) A registration as a qualified business may not be sold or otherwise transferred, except that if a qualified business enters into a merger, conversion, consolidation, or other similar transaction with another business and the surviving company would otherwise meet the criteria for being a qualified business, the surviving company retains the registration without further application to the secretary. Within thirty days of the transaction, the qualified business must provide the secretary with written notice of the merger, conversion, consolidation, or similar transaction and the name, address, and jurisdiction of incorporation or organization of the surviving company.
Section 12-63-100. The secretary shall report to the Chairmen of the House Ways and Means and Senate Finance Committees by October first of each year all the businesses that have registered with the secretary as qualified business ventures, qualified licensee businesses, and qualified grantee businesses. The report must include the name and address of each business, the location of its headquarters and principal place of business, a detailed description of the types of business in which it engages, whether the business is a socially and economically disadvantaged business as defined in Section 11-35-5010(2), the number of jobs created by the business during the period covered by the report, and the average wages paid by these jobs.
Section 12-63-110. (A) A taxpayer who receives a credit pursuant to this chapter for an investment in a qualified business is subject to a tax recapturing the credit if:
(1) within three years after the investment was made, the taxpayer, a related person, or an employee of a related person participates in the operation of the qualified business. For the purpose of this chapter, a taxpayer participates in the operation of a qualified business if the taxpayer provides services of any nature to the qualified business for compensation, whether as an employee, a contractor, or otherwise. A person who provides services to a qualified business, whether as an officer, a member of the board of directors, or otherwise does not participate in its operation if the person receives as compensation only reasonable reimbursement of expenses incurred in providing the services, participation in a stock option or stock bonus plan, or both.
(2) the registration of the qualified business is revoked because information in the registration application was false at the time the application was filed with the secretary.
(3)(a) within one year after the investment is made, the taxpayer transfers any of the equity, near-equity, or seed capital received in the investment that qualified for the tax credit to another person or entity, other than in a transfer resulting from the death of the taxpayer, final distribution in liquidation to the owners of a taxpayer that is a corporation or other entity, or merger, conversion, consolidation, or similar transaction requiring approval by the owners of the qualified business pursuant to applicable state law, to the extent the taxpayer does not receive cash or tangible property in the merger, conversion, consolidation, or other similar transaction;
(b) except as provided in subitem (a), within five years after the investment is made, the qualified business in which the investment is made makes a redemption with respect to the equity, near-equity, or seed capital received in the investment.
(B) If the taxpayer transfers fewer than all the equity, near-equity, or seed capital in a manner that would result in a tax pursuant to subsection (A), the amount of the tax is the product obtained by multiplying the aggregate credit attributable to the investment by a fraction whose numerator equals the amount by which the aggregate amount invested by the taxpayer in the equity, near-equity, or seed capital involved in the redemption exceeds the redemption amount and whose denominator equals the number of equity, near-equity, or seed capital received on account of the investment to which the credit was attributable.
(C) The tax is not imposed pursuant to this section if a qualified business venture that engages primarily in motion picture film
(1) the redemption occurred because the qualified business venture completed production of a film, sold the film, and was liquidated; and
(2) neither the qualified business venture nor a related person continues to engage in business with respect to the film produced by the qualified business venture.
(D) The tax imposed by this section is equal to the amount of all past taxes avoided as a result of the credit, plus an amount equal to interest computed at the rate provided by Section 12-54-25 from the date the taxes would have been due if the credit had not been allowed to the date they are paid, adjusted as necessary by subsection (B). The tax must be paid to the Department of Revenue and is due thirty days after the date of the act giving rise to the tax in subsection (A). A taxpayer that fails to pay the taxes due by the due date is subject to the penalties provided in Chapter 54 of Title 12.
(E) The allocation of the credit shall annually be made by the Coordinating Council for Economic Development. The Coordinating Council may, but is not required, to annually reserve up to two million dollars of the ten million dollar cap for investments in qualified businesses which are engaged in either hydrogen fuel cell research or commercial development; the Clemson University International Center for Automotive Research; technology incubators for MUSC; or nanotechnology.
(F) The Coordinating Council has sole discretion in determining that a business is a qualified business as provided in this chapter, and there is no right of appeal from the council's decision."
SECTION 2. A. Chapter 37, Title 33 of the 1976 Code is amended by adding:
Section 33-37-1010. For purposes of this article:
(1) 'CAP' means the capital access program created in this article.
(2) 'BDC' means Business Development Corporation of South Carolina.
(3) 'Financial institution' means a bank, trust company, savings bank, savings and loan association, or cooperative bank chartered by the State or a national banking association, federal savings and loan
(4) 'Participating financial institution' means a financial institution participating in the capital access program.
(5) 'Small business' means:
(a) a retail or service business with annual sales not exceeding two million dollars;
(b) a wholesale business with annual sales not exceeding five million dollars;
(c) a manufacturing business with no more than fifty employees; or
(d) another business with annual revenue not exceeding two million dollars.
(6) 'State fund' and 'state fund account' mean the funds appropriated by the General Assembly of South Carolina for the CAP, provided to BDC as custodian for the State of South Carolina, and deposited by BDC into one or more interest-bearing trust accounts maintained by it as custodian for the State of South Carolina.
(7) 'Loss reserve account' means one or more interest-bearing trust accounts maintained by BDC for holding and administering the loan loss reserve pursuant to this article.
Section 33-37-1020. (A) Upon appropriation of funds by the General Assembly for the CAP in the minimum initial sum of two million five hundred thousand dollars, those funds and funds resulting from later appropriations to the state fund must be provided to BDC for deposit in the state fund account.
(B) BDC shall establish the CAP to provide a loan loss reserve from the state fund to assist participating financial institutions making loans to small businesses located in South Carolina that otherwise find it difficult to obtain regular bank financing.
(C) The assistance must be provided by BDC through transfers by it from a state fund account into a loss reserve account maintained by, in the name of, and controlled by BDC as custodian to provide loan loss reserves for loans made to those small businesses.
Section 33-37-1030. A financial institution desiring to become a participating financial institution shall execute an agreement in a form BDC prescribes, containing the terms and provisions provided in Section 33-37-1040 and other terms and provisions BDC considers necessary or appropriate.
Section 33-37-1040. A participating financial institution originating a loan to a small business pursuant to this article shall:
(1) provide financing to small businesses for their business purposes including, without limitation, expansion, start-up, purchase of fixed assets or inventory, facility or technology upgrading, and working capital;
(2) limit loans outstanding to one small business borrower pursuant to this article and the CAP to an aggregate balance outstanding of two hundred fifty thousand dollars or a lesser amount the BDC determines, in the exercise of its discretion for the benefit of the CAP and the small business community at large in this State;
(3) limit loans made pursuant to this article and under the CAP to those that are not guaranteed or otherwise assisted by another governmental entity or program;
(4) set aside an amount of at least one and one-half percent, but no more than three and one-half percent, of the principal amount of the loan, into the loss reserve account;
(5) obtain from the small business an amount equal to the reserve contribution made by the participating financial institution with respect to the loan;
(6) forward the funds collected and determined pursuant to items (4) and (5) of this section to BDC for deposit into the loss reserve account together with a written report in the form and with the content BDC prescribes; and
(7) report annually to BDC, in the manner and with the supporting information BDC prescribes, the outstanding balance of loans made by it pursuant to the CAP, and a projection and estimate of loans it anticipates making pursuant to the program in the succeeding year.
Section 33-37-1050. After receipt of the funds and report provided in Section 33-37-1040(6) of this article, BDC shall transfer from the state fund account to the loss reserve account an amount equal to one hundred fifty percent of the total of the contributions of the participating financial institution and the small business. BDC shall maintain accurate records to determine the allocation and allocable share of each participating financial institution in and to the loan loss reserves in the loss reserve account and shall provide a report of the allocation to each participating financial institution annually. BDC also shall provide the report to a participating financial institution upon its written request during the year, but not more often than quarterly, and to the South Carolina Department of Commerce quarterly. In addition, the BDC shall provide an internal quarterly report on the project job creation and capital investment associated with each loan.
Section 33-37-1060. If the participating financial institution suffers a loss on a loan made pursuant to the CAP and this article, it may request that all or a portion of its allocated loan reserve in the loss reserve account be applied to the loan. Upon receipt by BDC of a certification of loss by the participating financial institution, BDC shall release the funds in the account to repay the loan in whole or in part, in an amount not to exceed the actual loss incurred by the participating financial institution. BDC shall prescribe the form and content of the certification report.
Section 33-37-1070. Earnings or interest from the principal of the state fund account and the loss reserve account must be paid monthly to BDC:
(1) as compensation for its administration and management of the CAP and the accounts; and
(2) for economic development in South Carolina for the purposes and within the meanings set forth in this chapter and in the corporate charter of BDC.
Section 33-37-1080. If a participating financial institution that elects to discontinue its participation in the CAP has funds on deposit in the loss reserve account, the funds must be forfeited by the institution to the state fund and used in the CAP as loss reserves as provided in this article.
Section 33-37-1090. An independent certified public accountant, as elected annually by the board of directors of the BDC, shall conduct an annual certified audit of its management, administration, and recordkeeping in connection with the CAP and provide the audit to the South Carolina Board of Financial Institutions upon its request and the South Carolina Department of Commerce. Annual reports to the South Carolina Department of Commerce also must include projected capital investment and job creation associated with each CAP loan provided.
Section 33-37-1100. If a loan is not made by participating financial institutions for three consecutive years and the General Assembly does not appropriate additional funds for the program for those three consecutive years, BDC may pay over to the participating financial institutions their allocable shares of funds in the loss reserve account and pay over to the State of South Carolina, as directed by the South Carolina Board of Financial Institutions, funds held in the state fund account."
B. Section 33-37-460(2) and (3) of the 1976 Code, as last amended by Act 234 of 2000, is further amended to read:
"(2) A loan to the corporation under the loan call agreement may not be made if, immediately after the loan, the total amount of the obligations of the corporation under the loan call agreement exceeds ten times the greater of the net worth of the corporation or the amount then paid in on the outstanding capital stock of the corporation.
(3) The total amount outstanding on loans to the corporation made by a member at any one time, when added to the amount of the investment in capital stock of the corporation then held by the member, under the loan call agreement may not exceed:
(a) ten percent of the total amount then outstanding on loans to the corporation by all members, including in the total amount outstanding amounts validly called for loan but not yet loaned or committed, or both, under the loan call agreement; or
(b) any federal or state statutory or regulatory limitations applicable to the members."
C. Section 33-37-465 of the 1976 Code, as added by Act 234 of 2000, is amended to read:
"Section 33-37-465. A member may make short-term loans to the corporation independently of the loan calls made pursuant to Section 33-37-460, except that the aggregate of the outstanding balance of the short-term loans and the outstanding amount of a loan call to that member may not exceed the statutory and regulatory limitations as provided in Section 33-37-460. These short-term loans are not subject to the limitations and restrictions described in Section 33-37-460. When the purpose of the short-term loan is to provide funds to the corporation for disbursement of a loan, the corporation may grant to the member funding the short-term loan a security interest in or collateral assignment of the loan on the condition that the security interest or collateral assignment is terminated upon payment of the short-term loan."
SECTION 3. Chapter 6 of Title 12 of the 1976 Code is amended by adding:
"Section 12-6-60. (A) Notwithstanding another provision of this chapter, whether or not a person has nexus with South Carolina for income tax and corporate license fee purposes, is determined without regard to whether the person:
(1) owns or utilizes a distribution facility within South Carolina;
(2) owns or leases property at a distribution facility within South Carolina that is used at, or distributed from, that facility; or
(3) sells property shipped or distributed from a distribution facility within South Carolina.
(B) The distribution facility is not considered to be a fixed place of business in South Carolina for the purposes of nexus.
(C) For purposes of this section, a distribution facility is defined in Section 12-6-3360."
SECTION 4. Chapter 36 of Title 12 of the 1976 Code is amended by adding:
"Section 12-36-2690. (A) Notwithstanding another provision of this chapter, owning or utilizing a distribution facility within South Carolina is not considered in determining whether the person has a physical presence in South Carolina sufficient to establish nexus with South Carolina for sales and use tax purposes.
(B) For purposes of this section, a distribution facility is defined in Section 12-6-3360."
SECTION 5. Chapter 62, Title 12 of the 1976 Code, as added by Act 299 of 2004, is amended to read:
Section 12-62-10. This chapter may be cited as the 'South Carolina Motion Picture Incentive Act'.
Section 12-62-20. For purposes of this chapter:
(1) 'Company' means a corporation, partnership, limited liability company, or other business entity.
(2) 'Department' means the South Carolina Department of Commerce.
(3) 'Motion picture' means a feature-length film, video, television series, or commercial made in whole or in part in South Carolina, and intended for national theatrical or television viewing or as a television pilot produced by a motion picture production company. The term 'motion picture' does not include the production of television coverage of news and athletic events or a production produced by a motion picture production company if records, as required by 18 U.S.C. 2257, are to be maintained by that motion picture production company with respect to any performer portrayed in that single media or multimedia program.
(4) 'Motion picture production company' means a company engaged in the business of producing motion pictures intended for a national theatrical release or for television viewing. 'Motion picture production company' does not mean or include a company owned, affiliated, or controlled, in whole or in part, by a company or person
(5) 'Payroll' means salary, wages, or other compensation subject to South Carolina income tax withholdings.
(6) 'Secretary' means the Secretary of the Department of Commerce or his designee.
Section 12-62-30. Notwithstanding the provisions of Section 12-36-2120(43), A motion picture production company that intends to expend in the aggregate two hundred fifty thousand dollars or more in connection with the filming or production of one or more motion pictures in the State of South Carolina within a consecutive twelve-month period, upon making application for, meeting the requirements of, and receiving written certification of that designation from the department as provided in this chapter, shall be relieved from the payment of state and local sales and use taxes administered and collected by the Department of Revenue on funds expended in South Carolina in connection with the filming or production of a motion picture or pictures. The production of television coverage of news and athletic events is specifically excluded from the provisions of this chapter. The provisions of this chapter do not apply to a sales and use tax levied by a local governmental subdivision.
Section 12-62-40. (A) A motion picture production company that intends to film all, or parts of, a motion picture in South Carolina and desires to be relieved from the payment of the state and local sales and use tax taxes, administered and collected by the Department of Revenue, as provided in this chapter shall provide an estimate of total expenditures expected to be made in South Carolina in connection with the filming or production of the motion picture. The estimate of expenditures must be filed with the department before the commencement of filming in South Carolina.
(B) At the time the motion picture production company provides the estimate of expenditures to the department, it also shall designate a member or representative of the motion picture production company to work with the department and the Department of Revenue on reporting of expenditures and other information necessary to take advantage of the tax relief afforded by this chapter.
(C)(1) An application for the tax relief provided by this chapter must be accepted only from those motion picture production companies that report anticipated expenditures in the State in the aggregate equal to or exceeding two hundred fifty thousand dollars in connection with
(2) The application must be approved by the Director of the South Carolina Film Commission secretary.
(3) Once the application is approved by the Director of the South Carolina Film Commission secretary, the Department of Revenue shall issue a written certification of state sales and use tax exemption certificate to the motion picture production company as evidence of the exemption. The exemption is effective on the date the application is approved by the secretary.
(D) A motion picture production company that is approved for relief from the payment of sales and use taxes as provided by this chapter and that and receives a sales and use tax exemption certificate but fails to expend two hundred fifty thousand dollars within a consecutive twelve-month period is liable for the sales and use taxes that would have been paid had the approval not been granted; except, that the motion picture production company must be given a sixty-day period in which to pay the sales and use taxes without incurring penalties. The sales and use taxes are considered due as of the date that taxable expenditures are made the tangible personal property was purchased in or brought into South Carolina for use, storage, or consumption.
(E) Upon completion of the motion picture, the motion picture production company must return the sales and use tax exemption certificate to the Department of Revenue and submit a report to the department of the actual expenditures made in South Carolina in connection with the filming or production of the motion picture.
Section 12-62-50. (A) A motion picture production company is entitled to a tax rebate for the employment of persons subject to South Carolina income tax withholdings in connection with production of a motion picture. The rebate is equal to five percent of the total aggregate South Carolina payroll for persons subject to South Carolina income tax withholdings employed in connection with the production when total production costs in South Carolina equal or exceed one million dollars during the taxable year. The rebate may not exceed the amount withheld on South Carolina income tax withholdings. For purposes of this section, 'total aggregate payroll' does not include the salary of an employee whose salary is equal to or greater than one million dollars for each motion picture.
(B) The rebate must be applied exclusively to film production employee payroll in South Carolina by the motion picture production company.
(C) The rebate must be distributed to the motion picture production company at the completion of physical production and support activities. This credit must follow the same procedures as established pursuant to Section 12-10-81(B)(1), (B)(2), (B)(6), (B)(8), and (G). (1) A motion picture production company that employs an employee in connection with the filming or post-production of a motion picture is entitled to a rebate equal to five percent of all taxable wages paid in connection with the employee's work on the motion picture in South Carolina, if more than one million dollars in production costs are incurred in South Carolina in twelve consecutive months in connection with the motion picture.
(2)(a) For purposes of this section, an employee is an individual directly involved in the filming or post-production of a motion picture in South Carolina and who is an employee of a:
(i) motion picture production company that is directly involved in the filming or post-production of a motion picture in South Carolina; or
(ii) personal service corporation retained by a motion picture production company to provide persons used directly in the filming or post-production of a motion picture in South Carolina; or
(iii) payroll services or loan out company that is retained by a motion picture production company to provide employees who work directly in the filming or post-production of a motion picture in South Carolina.
(b) For his wages to qualify for the rebate, the employee must be certified by the department as a qualifying employee and the employee must have had South Carolina income tax withholding withheld and remitted to the Department of Revenue by a company described in item (2)(a).
(3) The rebate applies with respect to an employee described in subitem (a)(ii) or (iii) only if, before commencement of filming in South Carolina, the personal services corporation, payroll services company, or loan out company is approved and certified by the department, and makes an irrevocable assignment of its rebate to the motion picture production company that produced the motion picture. The assignment must be made on a form provided by the Department of Revenue, which must include a waiver of confidentiality pursuant to
(4) The total rebate allowed to the motion picture production company may not exceed the total amount of South Carolina withholding withheld on all employees that are subject to the labor rebate.
(5) The rebate is not allowed for South Carolina taxable wages in excess of one million dollars paid to a single employee in connection with a single motion picture.
(B)(1) The rebate provided in subsection (A) is available to the motion picture production company at the end of all filming in South Carolina in connection with the motion picture. The motion picture production company producing the motion picture must apply to the department for a certificate of completion once filming in South Carolina is complete. The motion picture production company must provide the information the department considers necessary to determine if the one million dollar-expenditure requirement has been met.
(2) A motion picture production company may claim the rebate by filing a request for rebate with the department once the certificate of completion is obtained. The request for rebate must be filed by the last day of February of the year following the year in which the certificate of completion is obtained. To claim the rebate, the motion picture production company and all companies described in subsection (A)(2)(a)(ii) or (iii) must be current with respect to all taxes due and owing the State at the time of filing the request for rebate. If the motion picture production company or a company described in subsection (A)(2)(a)(ii) or (iii) is not current with respect to all taxes due and owing the State, the motion picture production company is permanently barred from claiming the rebate.
(3) The motion picture production company must attach to its request for rebate a copy of the certificate of completion and a copy of all assignments of the rebate, if applicable.
(C) A motion picture production company claiming a rebate pursuant to this section, and all companies described in subsection (A)(2)(a)(ii) or (iii), must make payroll books and records available for inspection to the commission and the department at the times requested by the commission or the department. Each motion picture production company claiming the rebate, at the time of filing, must provide a report to both the commission and the department that includes the project's name, the name of each employee that worked on the motion
(D) For purposes of this section, and as an exception to Section 12-54-240, a motion picture production company and a company described in subsection (A)(2)(a)(ii) or (iii) agree that the commission and the department may share or provide information concerning the request for rebate and the certificate of completion among the respective taxpayers and the respective agencies.
Section 12-62-55. At the time the motion picture production company is certified by the department, it may make, with the approval of the Coordinating Council, an irrevocable assignment of future payments attributable to the rebates made pursuant to Section 12-62-40 or 12-62-50 to a designated trustee. For purposes of this chapter, 'designated trustee' means the single financier or financial institution designated by the council to receive all assignments of payments made pursuant to this chapter and to the terms of an agreement entered into by the qualifying motion picture production company. If a qualifying motion picture production company elects to assign payments to the designated trustee, the election must be made on a form provided by the department, including a waiver of confidentiality pursuant to Section 12-54-240, and the payments may be paid only to the designated trustee. The qualifying motion picture production company must file an application for the assignment with the secretary no later than thirty days after filming begins in South Carolina.
Section 12-62-60. (A)(1) An amount equal to thirteen percent of the general fund portion of admissions tax collected by the State of South Carolina for the previous fiscal year must be funded annually by September first to the department for the exclusive use of the South Carolina Film Commission. The South Carolina Film Commission department may rebate to a motion picture production company up to seven percent of the costs of goods and services purchased expenditures made by the motion picture production company in the State if the motion picture production company has a minimum in-state expenditure of one million dollars. The distribution of rebates may not
(B) Up to seven percent of the amount provided to the department in subsection (A) may be used exclusively for marketing and special events.
(2)(C) The allocations to motion picture production companies contemplated by this chapter must be made by the Coordinating Council for Economic Development. The Coordinating Council for Economic Development may adopt rules and promulgate regulations for the application for and award of the rebate.
(B)(D) One percent of the general fund portion of admissions tax collected by the State of South Carolina must be funded to the department for the exclusive use of the South Carolina Film Commission for the promotion of collaborative production and educational efforts between institutions of higher learning in South Carolina and motion picture related entities. The department, in conjunction with the South Carolina Film Commission, shall adopt rules and promulgate regulations necessary to administer this section. Unexpended funds from this source may be carried over to the next and succeeding fiscal years.
(E) The department shall report annually to the Coordinating Council on the use of all funds pursuant to this section. The report is a public record pursuant to the Freedom of Information Act, Chapter 4 of Title 30, and must be posted annually on the commission's website by January first.
Section 12-62-70. (A)(1) Upon a determination by the Director of the Office of General Services Division of the South Carolina Budget and Control Board of the underutilization of state property by a state agency, the South Carolina Film Commission department may negotiate below-market rates for temporary use, no more than twelve months, of space for the underutilized property. The negotiations and temporary use are exempt from the provisions of the State Consolidated Procurement Code. The motion picture production company shall reimburse costs at normal and customary rates incurred by the state agency to the state agency, including costs required to
(2) The state agency or local political subdivision that owns the property determined to be underutilized may appeal that determination of underutilization to the Budget and Control Board.
(B) The State or its political subdivisions may not charge a location or facility fee for properties they own if the properties are used for seven or fewer days as a location or facility in the production of a motion picture. A property may be used for a total of only twenty-one days without location or facility fees in a calendar year. The motion picture production company may be on site no longer than seven days within a thirty-day period without a location or facility fee charge. State-owned or political subdivision-owned properties may recoup all costs they expend on behalf of the motion picture production company including a location or facility fee, after the first seven days, not to exceed two thousand five hundred dollars a day. Whenever possible, the public entity must direct the public property contribution to a charitable entity that is recognized as exempt under Section 501(c)(3) of the Internal Revenue Code. State-owned or political subdivision-owned properties also may recoup costs required to repair damage caused by the motion picture production company to real or personal property of the state agency or political subdivision. The motion picture production company shall reimburse all costs, at the property's normal and customary rates, to the state agency or political subdivisions incurring the costs within twenty-one calendar days of completion of production activities on site. The motion picture production company may use the publicly-owned property only on the days agreed to and approved by the state agency or political subdivision.
Section 12-62-80. The department may form a South Carolina Film Foundation to solicit donations for the recruitment of motion pictures in furtherance of the purposes of this chapter.
Section 12-62-90. The end credit roll of a motion picture that utilizes a South Carolina tax credit or rebate must recognize the State of South Carolina with the following statement: 'Filmed in South Carolina pursuant to the South Carolina Motion Picture Incentive Act'; except, that the State of South Carolina reserves the right to refuse the use of South Carolina's name in the credits of a motion picture filmed or produced in the State.
Section 12-62-100. To the extent not already provided, the department may adopt rules and promulgate regulations to carry out the intent and purposes of this chapter."
SECTION 6. Section 12-36-920(A) of the 1976 Code, as last amended by Act 299 of 2004, is further amended to read:
"(A)(1) A sales tax equal to seven percent is imposed on the gross proceeds derived from the rental or charges for any rooms, campground spaces, lodgings, or sleeping accommodations furnished to transients by any hotel, inn, tourist court, tourist camp, motel, campground, residence, or any place in which rooms, lodgings, or sleeping accommodations are furnished to transients for a consideration. This tax does not apply where the facilities consist of less than six sleeping rooms, contained on the same premises, which is used as the individual's place of abode. The gross proceeds derived from the lease or rental of sleeping accommodations supplied to the same person for a period of ninety continuous days are not considered proceeds from transients. The tax imposed by this subsection (A) does not apply to additional guest charges as defined in subsection (B).
(2) A motion picture production company producing a motion picture in the State of South Carolina, as those terms are defined in Chapter 62 of Title 12, is entitled to a rebate from the Department of Revenue of all of the sales taxes on accommodations paid by the motion picture production company for employees of the motion picture production company who have stayed in accommodations in South Carolina for an aggregate of thirty days over a twelve-month period. The motion picture production company must first submit to the Department of Revenue a certification as to the number of days its employees have stayed in accommodations in South Carolina. The rebate of accommodations taxes does not apply to the local accommodations tax authorized by Article 5, Chapter 1, Title 6."
SECTION 7. Section 1-30-25(D) of the 1976 Code, as last amended by Act 299 of 2004, is further amended to read:
"(D) State Development Board Department of Commerce, including the South Carolina Film Commission, formerly provided for in Section 13-3-10, et seq., except that the department must make reasonable rules and promulgate reasonable regulations to ensure that funds made available to film projects through its film commission are budgeted and spent so as to further the following objectives:
(1) stimulation of economic activity to develop the potentialities of the State;
(2) conservation, restoration, and development of the natural and physical, the human and social, and the economic and productive resources of the State;
(3) promotion of a system of transportation for the State, through development and expansion of the highway, railroad, port, waterway, and airport systems;
(4) promotion and correlation of state and local activity in planning public works projects;
(5) promotion of public interest in the development of the State through cooperation with public agencies, private enterprises, and charitable and social institutions;
(6) encouragement of industrial development, private business, commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;
(7) assistance in the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;
(8) assistance in ensuring stability in employment, increasing the opportunities for employment of the citizens of the State, devising ways and means to raise the living standards of the people of the State;
(9) enhancement of the general welfare of the people; and
(10) encouragement and consideration as appropriate so as to consider race, gender, and other demographic factors to ensure nondiscrimination, inclusion, and representation of all segments of the State to the greatest extent possible."
SECTION 8. Section 12-6-3360(C) and (I) of the 1976 Code is amended to read:
"(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 available only available to taxpayers that increase employment by ten five or more full-time jobs, and no a credit is not allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ten five. The amount of the initial job credit is as follows:
(1)(a) Eight thousand dollars for each new full-time job created in distressed counties.
(b) Four thousand five hundred dollars for each new full-time job created in least developed counties.
(2) Three thousand five hundred dollars for each new full-time job created in under developed counties.
(3) Two thousand five hundred dollars for each new full-time job created in moderately developed counties.
(4) One thousand five hundred dollars for each new full-time job created in developed counties.
(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 A taxpayer is not allowed a jobs tax credit if the net employment increase for that taxpayer falls below ten five. The appropriate agency shall determine whether or not if qualifying net increases or decreases have occurred and may require reports, promulgate adopt rules or promulgate regulations, and hold hearings needed for substantiation and qualification."
SECTION 9. (A) The General Assembly finds that many tax incentives outlive their usefulness and should exist only for a time certain. It is the intent of the General Assembly to provide for a sunset provision on each tax incentive, including credits and exemptions, enacted by this act.
(B) Each tax incentive, including credits and exemptions, enacted by this act shall be repealed for tax years beginning after five years from the date of enactment, unless a different time frame is otherwise provided herein.
SECTION 10. This act takes effect upon approval by the Governor and applies to taxable years beginning January 1, 2006, except that SECTIONS 2, 5, 6, and 7 are effective July 1, 2004. /
Renumber sections to conform.
Amend title to conform.
Rep. HINSON explained the amendment.
The amendment was then adopted.
Rep. HARRELL explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
I was temporarily out of the Chamber but I am very much in favor of H. 3006 to establish economic incentives for small businesses.
Rep. Becky R. Martin
The following Bill was taken up:
H. 3234 (Word version) -- Reps. Harrell, Wilkins, Harvin, Walker, J. E. Smith, Altman, Bowers and Bailey: A BILL TO AMEND ARTICLE 7, CHAPTER 11 OF TITLE 55, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO STATE FUNDING OF AIR CARRIER HUB TERMINAL FACILITIES, SO AS TO INCLUDE A FACILITY THAT OPERATES TWO OR MORE SPECIAL, STATE-TAXED PLANES FOR THE TRANSPORT OF SPECIAL CARGO, TO INCLUDE AN ECONOMIC DEVELOPMENT PROJECT THAT IS FUNCTIONALLY RELATED TO AIR CARRIER HUB TERMINAL FACILITIES SATISFYING THE CRITERIA, TO PROVIDE THAT THE SECRETARY OF THE DEPARTMENT OF COMMERCE MAY DETERMINE CONCLUSIVELY THAT AN AIRPORT TERMINAL FACILITY QUALIFIES AS AN AIR CARRIER HUB TERMINAL FACILITY, TO MAKE TECHNICAL CHANGES; AND TO AMEND SECTION 11-41-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE ECONOMIC
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\BBM\10539MM05), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Article 7, Chapter 11, Title 55 of the 1976 Code, as last amended by Act 227 of 2004, is further amended to read:
Section 55-11-500. As used in this article:
(a) An 'air carrier hub terminal facility' is an airport terminal facility from which an air carrier certified or licensed by the Federal Aviation Administration shall or will, within five years from the date of issuance of the obligations described herein in this article, operate operates either:
(1) at least twenty common carrier departing flights a day on which the general public may fly seven days a week, fifty-two weeks a year. No less than seventy percent of all seats on these aircraft arriving at or departing from an air carrier terminal facility must be on jet aircraft capable of carrying at least one hundred passengers on each flight; or
(2) at least twenty common carrier departing flights a week on an annual basis for the purposes of transporting cargo and air freight; or
(3) irrespective of the number of flights, two or more specially equipped planes that are:
(i) used for the transportation of specialized cargo; and
(ii) subject to ad valorem property taxation or a fee in lieu of taxes in this State.
(b) An 'air carrier' is a corporation licensed by the Federal Aviation Administration with a certificate of public convenience and necessity or an operating certificate under other applicable federal law or pertinent regulations which operates aircraft in common carrier service and serves to or from an air carrier hub terminal facility as defined in this section.
(c) 'Board' means the State Budget and Control Board.
(d) 'Bonds' mean general obligation bonds of this State.
(e) 'Secretary' means the Secretary of the Department of Commerce.
Section 55-11-505. The term 'air carrier hub terminal facility' includes an economic development project as defined in Section 11-41-30(2) that is functionally related to a facility satisfying one of the criteria in Section 55-11-500(a).
Section 55-11-510. (A) A special purpose district or political subdivision of the State may petition the State for assistance hereunder. Upon receipt of such a petition, the State, from the proceeds of the sale of bonds authorized by Section 55-11-520, is authorized to pay a portion or all of the costs of any insurance required to guarantee the payment of, or any credit enhancement facility utilized in connection with, obligations issued or to be issued by a special purpose district or other political subdivision of this State, for the purposes of acquiring land for and constructing and equipping air carrier hub terminal facilities; except that the amount of fees paid by the State to purchase this insurance or other credit enhancement facility must not exceed one and one-half percent of the principal plus all interest payable on obligations issued by a special purpose district or other political subdivision of this State. The cost of this insurance or other credit enhancement facility may be paid by the State directly to the provider of it, or by way of reimbursement to the special purpose district or political subdivision.
(B) In addition, after review by the Joint Bond Review Committee, the board may allocate bond proceeds for the purposes authorized in this Section 55-11-520 to match on a dollar-for-dollar basis, local funds expended for the purposes authorized in Section 55-11-520 by any special purpose district or other political subdivision of this State. Local funds may include user fees and other monies made available by the special purpose district or political subdivision, but may not include federal grants made available to the special purpose district or other political subdivision for runway construction.
Section 55-11-520. (A) Pursuant to the provisions of subsection 6(c), Section 13, Article 10 of the Constitution of this State, in order to provide funds to pay a portion of the costs of (1) acquiring land, (2) constructing, enlarging, improving, extending, renovating, and equipping suitable air carrier hub terminal facilities to be located in this State, (3) purchasing equipment, ground support equipment, machinery, special tools, maintenance, boarding facilities, and any and all additional necessary real or personal property for the operation of air carrier hub terminal facilities, and (4) if petitioned by a special
(B) Any A request that bonds be issued pursuant to this article must be accompanied by a binding contract with either an air carrier or the principal user of the air carrier hub terminal, to be financed with the issuance of the obligation described in this article, committing the air carrier entity to use the air carrier hub terminal facility for a period of five years or the period of time needed to retire any indebtedness incurred to construct the air carrier hub terminal facility, whichever is less. Upon receipt of a certified copy of the executed contract, the Secretary of Commerce secretary shall consider an air carrier's the entity's financial ability, willingness, and commitment to serve this State and other factors considered relevant by the Secretary of Commerce secretary. If the Secretary of Commerce secretary determines that it is in the best interest of this State for the State to provide or to assist in the providing of suitable air carrier hub terminal facilities, the Secretary of Commerce secretary shall recommend that the board consider approving the issuance of bonds of this State for the purposes authorized in this article and shall forward his written approval and request to the Joint Bond Review Committee and the board. The approval and request must be accompanied by a certificate of the secretary establishing:
(1) the maximum principal amount of the bonds then requested to be authorized;
(2) a description of the infrastructure for which the bonds are to be issued, including a certification from the secretary that the facility is an air carrier hub terminal facility as defined in Section 55-11-500(a);
(3) a tentative time schedule for the time during which the sum requested is to be expended; and
(4) the then-outstanding principal amount of, and the debt service requirements for, all bonds previously issued pursuant to this section.
(C) Following the receipt of the approval and request described in subsection (B), and after approval by the Joint Bond Review Committee, the board may approve Upon the approval of the issuance of any bonds pursuant to this article,. In connection with the approval, the board shall adopt a resolution setting the terms and conditions for
"(j) buildings associated with an economic development project as defined in Section 11-41-30(2)(a) that includes air carrier hub terminal facilities as defined in Section 55-11-500(a)(2) of the 1976 Code."
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Rep. HINSON explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
The Veto on the following Act was taken up:
R. 380, H. 5136 (Word version) -- Rep. Littlejohn: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO CEASE ISSUING NEW AMBULANCE LICENSES FOR MORE THAN ONE HUNDRED TWENTY DAYS OR UNTIL THE DEPARTMENT HAS THE NECESSARY PERSONNEL TO ENFORCE EXISTING LICENSURE REQUIREMENTS, TO PROVIDE AN EXCEPTION IF A DEMONSTRATED NEED EXISTS, AND TO PROVIDE LICENSURE RENEWAL REQUIREMENTS.
Rep. LITTLEJOHN explained the Veto.
Rep. LITTLEJOHN moved to adjourn debate on the Veto until Wednesday, January 19, which was agreed to.
The Veto on the following Act was taken up:
R. 347, S. 852 (Word version) -- Senator McGill: AN ACT TO AMEND SECTIONS 9-1-10 AND 9-11-10, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE POLICE OFFICERS RETIREMENT SYSTEM, RESPECTIVELY, SO AS TO PROVIDE THAT THE DEFINITION OF "PUBLIC SERVICE" INCLUDES PAID SERVICE RENDERED AS AN EMPLOYEE OF A POSTSECONDARY PUBLIC TECHNICAL COLLEGE OR PUBLIC JUNIOR COLLEGE, OR A PUBLIC FOUR-YEAR OR POSTGRADUATE INSTITUTION OF HIGHER EDUCATION, WHILE THE MEMBER WAS A STUDENT AT THAT INSTITUTION AND TO AMEND SECTIONS 9-1-1020, AND 9-11-210, BOTH A AMENDED, RELATING TO MEMBER CONTRIBUTIONS FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO CLARIFY THE CONTRIBUTION REQUIREMENTS ON UNUSED ANNUAL LEAVE AND THE USE OF SUCH PAYMENTS IN CALCULATING AVERAGE FINAL COMPENSATION.
Rep. HARRELL explained the Veto.
The question was put, shall the Act become a part of the law, the veto of his Excellency, the Governor to the contrary notwithstanding, the yeas and nays were taken resulting as follows:
Those who voted in the affirmative are:
Agnew Altman Anderson Anthony Bailey Bales Ballentine Battle Bingham Bowers Brady Branham Breeland J. Brown R. Brown Cato Ceips Chalk Chellis Clark Clemmons Clyburn Cobb-Hunter Coleman Cooper Dantzler Delleney Edge Emory Frye
Funderburk Haley Hamilton Hardwick Harrell Harrison Haskins Hayes Herbkersman J. Hines M. Hines Hinson Hiott Hosey Huggins Jefferson Jennings Leach Limehouse Littlejohn Loftis Lucas Mack Mahaffey McCraw McGee McLeod Merrill Miller J. M. Neal Neilson Norman Ott Owens Parks Phillips E. H. Pitts Rhoad Rice Rutherford Sandifer Scarborough Scott Sinclair Skelton G. M. Smith J. E. Smith J. R. Smith W. D. Smith Talley Taylor Toole Townsend Tripp Umphlett Vaughn Viers Walker Weeks White Whitmire Wilkins Witherspoon Young
Those who voted in the negative are:
M. A. Pitts D. C. Smith Stewart
So, the Veto of the Governor was overridden and a message was ordered sent to the Senate accordingly.
Rep. MCGEE moved that the House recur to the Morning Hour, which was agreed to.
Rep. MILLER, from the Georgetown Delegation, submitted a favorable report on:
S. 254 (Word version) -- Senators McGill and Cleary: A BILL TO AMEND ACT 591 OF 1994, RELATING TO THE GEORGETOWN COUNTY BOARD OF ELECTIONS AND REGISTRATION, SO AS TO GIVE THE GEORGETOWN LEGISLATIVE DELEGATION THE SOLE APPOINTIVE POWERS FOR MEMBERS OF THE GEORGETOWN COUNTY BOARD OF ELECTIONS AND REGISTRATION INSTEAD OF BEING APPOINTED BY THE GOVERNOR UPON RECOMMENDATION OF THE GEORGETOWN COUNTY LEGISLATIVE DELEGATION.
Ordered for consideration tomorrow.
The following was introduced:
H. 3314 (Word version) -- Reps. Mahaffey, Sinclair and Talley: A HOUSE RESOLUTION CONGRATULATING THE JAMES F. BYRNES HIGH SCHOOL REBELS OF SPARTANBURG COUNTY ON THEIR THIRD CONSECUTIVE STATE AAAA DIVISION II FOOTBALL TITLE AND HONORING THE PLAYERS AND COACH BOBBY BENTLEY ON THEIR IMPRESSIVE 13-1 SEASON.
The Resolution was adopted.
On motion of Rep. MAHAFFEY, with unanimous consent, the following was taken up for immediate consideration:
H. 3315 (Word version) -- Reps. Mahaffey, Sinclair and Talley: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR OF THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES TO THE JAMES F. BYRNES HIGH SCHOOL FOOTBALL TEAM, COACH BOBBY BENTLEY, AND OTHER SCHOOL OFFICIALS WEDNESDAY, JANUARY 26, 2005, AT A TIME TO BE DETERMINED BY THE SPEAKER, FOR THE PURPOSE OF CONGRATULATING AND HONORING THE TEAM ON
Be it resolved by the House of Representatives:
That the privilege of the floor of the South Carolina House of Representatives is extended to the James F. Byrnes High School Football Team of Spartanburg County, Head Coach Bobby Bentley, and other school officials, on Wednesday, January 26, 2005, at a time to be determined by the Speaker, for the purpose of congratulating and honoring the team for winning the Class AAAA Division II State Championship Title.
The Resolution was adopted.
The following Bills and Joint Resolution were introduced, read the first time, and referred to appropriate committees:
H. 3316 (Word version) -- Reps. Young, Chellis, Bailey and G. Brown: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-13-245 SO AS TO PROVIDE THAT A MEMBER OF THE STATE BOARD OF COSMETOLOGY MUST BE PRESENT AT ALL CONTINUING EDUCATION COURSES IN THIS STATE FOR COSMETOLOGISTS APPROVED BY THE BOARD.
Referred to Committee on Medical, Military, Public and Municipal Affairs
H. 3317 (Word version) -- Reps. Young, Chellis, Bailey and G. Brown: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-13-235 SO AS TO PROVIDE THAT A PERSON LICENSED AS A COSMETOLOGIST IN THIS STATE FOR A CONTINUOUS PERIOD OF TWENTY YEARS OR MORE IS EXEMPT FROM ANY CONTINUING EDUCATION REQUIREMENTS FOR LICENSURE.
Referred to Committee on Medical, Military, Public and Municipal Affairs
H. 3318 (Word version) -- Reps. Young, Chellis, Bailey and G. Brown: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY
H. 3319 (Word version) -- Reps. Limehouse, Chellis, Loftis, Hinson, Young, Ceips, Martin, Altman, Clemmons, Edge, Harrell, Leach, Scarborough, Stewart, Tripp and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-80 SO AS TO PROVIDE THAT A STUDENT ZONED TO ATTEND A PUBLIC SCHOOL MAY AUDITION FOR AND, IF ACCEPTED, ATTEND AN EXTRACURRICULAR GIFTED ARTS PROGRAM AND PROVIDE THAT FUNDS MUST BE ALLOCATED TO EXTRACURRICULAR GIFTED ARTS PROGRAMS BASED ON THE NUMBER OF STUDENTS ZONED TO ATTEND A PUBLIC SCHOOL.
Referred to Committee on Education and Public Works
H. 3320 (Word version) -- Reps. Wilkins, W. D. Smith, Harrison, Townsend, Harrell, Cato, Witherspoon, J. Brown, Chellis, Viers, Merrill, E. H. Pitts, Agnew, Ballentine, Bingham, Cooper, Haley, Hinson, Owens, Rice, Toole, Umphlett and White: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-3-605 SO AS TO PROVIDE THAT NO STATE ROAD, HIGHWAY, INTERSTATE HIGHWAY, BRIDGE, INTERCHANGE, OR INTERSECTION MAY BE NAMED FOR A PERSON WHO IS LIVING.
Referred to Committee on Education and Public Works
H. 3321 (Word version) -- Rep. Clyburn: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAYS MISSED IN JANUARY 2005, BY THE STUDENTS OF A SCHOOL IN THE AIKEN COUNTY SCHOOL DISTRICT OR ANY OTHER SCHOOL OR INSTITUTION OF HIGHER LEARNING IN AIKEN COUNTY WHEN THE SCHOOL WAS CLOSED DUE TO THE TRAIN WRECK AND CHEMICAL LEAK IN GRANITEVILLE ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT THAT FULL SCHOOL DAYS MISSED DUE
Rep. SINCLAIR moved that the House do now adjourn, which was agreed to.
At 12:48 p.m. the House, in accordance with the motion of Rep. PINSON, adjourned in memory of Robin, James, Bradley and Brittany Strong of McCormick who were killed in an airplane accident, to meet at 2:00 p.m. tomorrow.
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