Indicates Matter Stricken
Indicates New Matter
The House assembled at 10:00 a.m.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr., as follows:
Our thought for today is from Nahum 1:7: "The Lord is good, a refuge in times of trouble. He cares for those who trust in him."
Let us pray. Loving God, thank You for Your patient prod in our lives as these Representatives wrestle with the affairs of State. Guide them to do Your will and the will of the people. Fill them with aspirations for the common good and that they may do the right thing for the right reason. Bless each this day. Guide our Nation, President, State, Governor, Speaker, Representatives and staff to remember; You care for those who trust in You. Protect and keep safe our defenders of freedom as they protect us. In the name of our Lord, we pray. Amen.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.
After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.
Rep. STEWART moved that when the House adjourns, it adjourn in memory of Everett Eynon, Jr., of Aiken, which was agreed to.
The House stood in silent prayer for Representative James E. Smith, Jr., and his family as he leaves to serve his country in the Armed Forces.
The House stood in silent prayer for all who have served and sacrificed for this country to keep it free.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report on:
S. 1205 (Word version) -- Senators Grooms, Verdin, Hutto, Peeler, Williams, Land, Bryant, O'Dell, Jackson, Cromer, Ford, Knotts and Setzler: A BILL TO AMEND CHAPTER 45 OF TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NUISANCE SUITS PERTAINING TO AGRICULTURAL OPERATIONS, SO AS TO PROVIDE THAT WITH CERTAIN EXCEPTIONS LOCAL ORDINANCES IN CONFLICT WITH STATE LAW OR REGULATIONS GOVERNING AN AGRICULTURAL FACILITY OR OPERATION, ARE NULL AND VOID AND TO FURTHER DEFINE WHAT CONSTITUTES AN AGRICULTURAL OPERATION.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report on:
S. 1208 (Word version) -- Senator Land: A BILL TO AMEND ARTICLE 7, CHAPTER 11, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT AND OPERATION OF SHOOTING PRESERVES, SO AS TO REVISE THE MANNER OF THEIR ESTABLISHMENT, THE LEGAL SHOOTING PRESERVES SPECIES, AND OTHER PROVISIONS PERTAINING TO THE OPERATION OF SHOOTING PRESERVES.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report on:
S. 1263 (Word version) -- Senators Ritchie, Peeler and Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-1-165 SO AS TO ESTABLISH WITHIN THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL THE EXPEDITED REVIEW PROGRAM TO PROVIDE A VOLUNTARY EXPEDITED PROCESS FOR REVIEW OF PERMIT APPLICATIONS; TO REQUIRE THE DEPARTMENT TO PROMULGATE REGULATIONS FOR THE ADMINISTRATION OF THE PROGRAM, INCLUDING EXPEDITED PROCESS APPLICATION FEES; TO CREATE A PILOT PROGRAM TO TEST AND EVALUATE THE ECONOMIC AND ADMINISTRATIVE BENEFITS OF A STATEWIDE REVIEW PROGRAM; AND TO CREATE AN EXPEDITED REVIEW FUND THROUGH THE IMPOSITION OF THE EXPEDITED PROCESS APPLICATION FEES AND TO PROVIDE FOR THE ADMINISTRATION AND USE OF THIS FUND.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments on:
S. 1346 (Word version) -- Senator Sheheen: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 48-1-115 SO AS TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL SHALL PROVIDE PUBLIC NOTICE PRIOR TO THE ISSUANCE OF A CONSTRUCTION PERMIT FOR A FACILITY THAT STORES SLUDGE OR OTHER RESIDUALS AND THAT IS NOT LOCATED AT THE SITE OF AN EXISTING WASTEWATER OR SLUDGE TREATMENT FACILITY.
Ordered for consideration tomorrow.
Rep. LEACH, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report on:
H. 5123 (Word version) -- Reps. G. M. Smith, Weeks, Coates, J. H. Neal and G. Brown: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF UNITED STATES HIGHWAY 15 IN SUMTER COUNTY FROM ITS INTERSECTION WITH UNITED STATES HIGHWAY 378 TO ITS INTERSECTION WITH THE SUMTER/LEE COUNTY LINE THE "SOUTH CAROLINA CHIEF JUSTICE ERNEST A. FINNEY, JR. HIGHWAY", AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS HIGHWAY THAT CONTAIN THE WORDS "SOUTH CAROLINA CHIEF JUSTICE ERNEST A. FINNEY, JR. HIGHWAY".
Ordered for consideration tomorrow.
The following was introduced:
H. 5126 (Word version) -- Rep. G. R. Smith: A HOUSE RESOLUTION TO EXTEND THE CONGRATULATIONS AND BEST WISHES OF THE MEMBERS OF THE HOUSE OF REPRESENTATIVES OF THE STATE OF SOUTH CAROLINA TO MR. AND MRS. GERALD SAUNDERS OF GREENVILLE COUNTY ON THE OCCASION OF THEIR FIFTIETH WEDDING ANNIVERSARY AND TO EXTEND TO THIS COUPLE EVERY BEST WISH FOR MANY MORE YEARS OF WEDDED BLISS.
The Resolution was adopted.
The following was introduced:
H. 5127 (Word version) -- Reps. Scott, Agnew, Allen, Altman, Anderson, Anthony, Bailey, Bales, Ballentine, Bannister, Barfield, Battle, Bingham, Bowers, Brady, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chalk, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Frye, Funderburk, Govan, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hiott, Hodges, Hosey, Howard, Huggins, Jefferson, Jennings, Kennedy, Kirsh, Leach, Limehouse, Littlejohn, Loftis, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Norman, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Rhoad, Rice, Rivers, Rutherford, Sandifer, Scarborough, Simrill, 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, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A HOUSE RESOLUTION TO RECOGNIZE MRS. MARY REUBEN OF RICHLAND COUNTY FOR HER OUTSTANDING CONTRIBUTIONS TO HER FAMILY AND COMMUNITY AND TO HONOR HER ON MOTHER'S DAY, MAY 14, 2006.
The Resolution was adopted.
The roll call of the House of Representatives was taken resulting as follows:
Allen Altman Anderson Anthony Bailey Bales Ballentine Bannister Barfield Battle Bingham Brady Branham Breeland G. Brown J. Brown R. Brown Cato Chalk Chellis Clark Clemmons Clyburn Coates Cobb-Hunter Coleman Cooper Dantzler Delleney Duncan Edge Emory Frye Funderburk Hagood Haley Hamilton Hardwick Harrell Harrison Harvin Hayes Herbkersman J. Hines M. Hines Hinson Hiott Hodges Hosey Howard Huggins Jefferson Jennings Kennedy Kirsh Leach Littlejohn Loftis Lucas Mack Mahaffey McCraw McGee McLeod Merrill Miller Moody-Lawrence J. H. Neal J. M. Neal Neilson Norman Owens Perry Pinson E. H. Pitts M. A. Pitts Rhoad Rice Rivers Sandifer Scarborough Scott Simrill Skelton D. C. Smith G. M. Smith G. R. Smith J. E. Smith J. R. Smith W. D. Smith Stewart Talley Taylor Thompson Toole Townsend Tripp Umphlett Vaughn Walker Weeks White Whitmire Witherspoon Young
I came in after the roll call and was present for the Session on Thursday, May 11.
Paul Agnew Harry Ott Phillip Sinclair Ted Vick Bill Cotty Jerry Govan Jackson "Seth" Whipper Thad Viers Ralph Davenport Becky Martin William Bowers Harold Mitchell Todd Rutherford Gloria Haskins
The SPEAKER granted Rep. CEIPS a leave of absence for the day due to medical reasons.
Announcement was made that Dr. Jennifer H. Merritt of Myrtle Beach is the Doctor of the Day for the General Assembly.
Reps. DELLENEY, EMORY, KIRSH, MCCRAW, MOODY-LAWRENCE, NORMAN and SIMRILL presented to the House the Rock Hill High School Varsity "Fighting Bearcats" Boys Basketball Team, the Class AAAA Champions, their coaches and other school officials.
Reps. TOWNSEND and AGNEW presented to the House the Crescent High School Boys Wrestling Team, the 2006 Class AA-A Champions, their coach and other school officials.
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. 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. 3187 (Word version)
Date: ADD:
05/11/06 CLARK
Rep. M. A. PITTS moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request:
H. 3402 (Word version) -- Reps. M. A. Pitts, Taylor, Owens, Duncan, Vick, Hardwick, Hagood, Ott, Ceips, Haley, Hiott, Limehouse, E. H. Pitts, G. R. Smith, Toole, Umphlett, Witherspoon, Chellis, Stewart, Mahaffey, Barfield, Huggins, Loftis, White, Clemmons, Walker, Littlejohn and Sinclair: A BILL TO AMEND SECTION 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS IN MATTERS RELATING TO CAMPAIGN PRACTICES AND IN MATTERS RELATING TO LOBBYISTS AND LOBBYING, RESPECTIVELY, INCLUDING THE DEFINITION OF LEGISLATIVE CAUCUS COMMITTEE, SO AS TO PROVIDE THAT SUCH A CAUCUS MAY BE CREATED BASED UPON A SPECIAL LEGISLATIVE INTEREST; TO AMEND SECTION 8-13-1333, RELATING TO CAMPAIGN FINANCE, TO PROHIBIT SOLICITATION OF CONTRIBUTIONS BY LEGISLATIVE SPECIAL INTEREST CAUCUSES BUT TO PERMIT SOLICITATION OF OTHER FUNDS AND TO ESTABLISH REQUIREMENTS FOR FUND SOLICITATION AND USE OF THOSE FUNDS AND TO ESTABLISH REQUIREMENTS TO MAINTAIN FINANCIAL RECORDS; AND TO AMEND SECTION 2-17-110, RELATING TO ACTS PROHIBITED BY LOBBYISTS AND LOBBYISTS' PRINCIPALS TO PROHIBIT FINANCIAL ASSISTANCE FROM A LOBBYIST, LOBBYIST'S PRINCIPAL, OR PERSON ACTING ON BEHALF OF A LOBBYIST OR LOBBYIST'S PRINCIPAL.
The yeas and nays were taken resulting as follows:
Those who voted in the affirmative are:
Agnew Allen Anderson Anthony Bailey Bales Ballentine Bannister Barfield Battle Bingham Brady Branham Breeland G. Brown J. Brown R. Brown Chalk Chellis Clemmons Cobb-Hunter Coleman Cooper Cotty Dantzler Delleney Duncan Edge Emory Frye Funderburk Hagood Haley Hardwick Harrell Harrison Harvin Haskins Herbkersman J. Hines M. Hines Hinson Hiott Hodges Hosey Howard Huggins Jefferson Jennings Kirsh Leach Limehouse Littlejohn Lucas Mack Mahaffey McCraw McGee McLeod Merrill Miller Moody-Lawrence J. H. Neal J. M. Neal Neilson Ott Owens Perry Phillips Pinson M. A. Pitts Rhoad Rice Rivers Sandifer Scarborough Scott Simrill Sinclair Skelton D. C. Smith G. R. Smith J. E. Smith J. R. Smith Stewart Talley Taylor Thompson Toole Townsend Tripp Umphlett Vaughn Vick Walker Whipper White Whitmire Witherspoon Young
Those who voted in the negative are:
So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.
The Committee of Conference was thereby resolved into a Committee of Free Conference. The SPEAKER appointed Reps. M. A. PITTS, WITHERSPOON and AGNEW to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.
FREE CONFERENCE REPORT
H. 3402
The General Assembly, Columbia, S.C., April 25, 2006
The COMMITTEE OF FREE CONFERENCE, to whom was referred (Doc. No. L:\S-JUD\AMEND\FCRJUD3402.DOC):
H. 3402 (Word version) -- Reps. M.A. Pitts, Taylor, Owens, Duncan, Vick, Hardwick, Hagood, Ott, Ceips, Haley, Hiott, Limehouse, E.H. Pitts, G.R. Smith, Toole, Umphlett, Witherspoon, Chellis, Stewart, Mahaffey, Barfield, Huggins, Loftis, White, Clemmons, Walker, Littlejohn and Sinclair: A BILL TO AMEND SECTION 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS IN MATTERS RELATING TO CAMPAIGN PRACTICES AND IN MATTERS RELATING TO LOBBYISTS AND LOBBYING, RESPECTIVELY, INCLUDING THE DEFINITION OF LEGISLATIVE CAUCUS COMMITTEE, SO AS TO PROVIDE THAT SUCH A CAUCUS MAY BE CREATED BASED UPON A SPECIAL LEGISLATIVE INTEREST.
Beg leave to report that they have duly and carefully considered the same and recommend:
That the same do pass with the following amendments:
Amend the bill, as and if amended, by striking the bill in its entirety and inserting therein the following:
/ A BILL TO AMEND SECTION 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS IN MATTERS RELATING TO CAMPAIGN PRACTICES AND IN MATTERS RELATING TO LOBBYISTS AND LOBBYING, RESPECTIVELY, INCLUDING THE DEFINITION OF LEGISLATIVE CAUCUS COMMITTEE, SO AS TO PROVIDE THAT SUCH A CAUCUS MAY BE CREATED BASED UPON A SPECIAL LEGISLATIVE INTEREST; TO AMEND SECTION 8-13-1333, RELATING TO CAMPAIGN FINANCE, TO PROHIBIT SOLICITATION OF CONTRIBUTIONS BY LEGISLATIVE SPECIAL INTEREST CAUCUSES BUT TO PERMIT SOLICITATION OF OTHER FUNDS AND TO ESTABLISH REQUIREMENTS FOR FUND SOLICITATION AND USE OF THOSE FUNDS AND TO ESTABLISH REQUIREMENTS TO MAINTAIN FINANCIAL RECORDS; AND TO AMEND SECTION 2-17-110, RELATING TO ACTS PROHIBITED BY LOBBYISTS AND LOBBYISTS' PRINCIPALS TO PROHIBIT FINANCIAL ASSISTANCE FROM A LOBBYIST, LOBBYIST'S PRINCIPAL, OR PERSON ACTING ON BEHALF OF A LOBBYIST OR LOBBYIST'S PRINCIPAL.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 2-17-10(11) of the 1976 Code is amended to read:
"(11) 'Legislative caucus' means:
(a) a committee of either house of the General Assembly controlled by the caucus of a political party or a caucus based upon racial or ethnic affinity, or gender;
(b) a party or group of either house of the General Assembly based upon racial or ethnic affinity, or gender. However, each house may establish only one committee for racial-, ethnic-, or gender-based affinity;
(c) 'legislative caucus' does not include a legislative special interest caucus as defined in Section 2-17-10(21)."
SECTION 2. Section 2-17-10 of the 1976 Code is amended by adding the following numbered subsection at the end to read:
"(21) 'Legislative special interest caucus' means two or more legislators who seek to be affiliated based upon a special interest. Under no circumstances may a legislative special interest caucus engage in any activity that would influence the outcome of an election or ballot measure. Each legislative special interest caucus must register with the Clerk's Office of the Senate or House of Representatives in a manner mandated by the Clerk's Office. However, each legislative special interest caucus must provide, and the Clerk's Office must maintain a record of:
(a) the name and purpose of the caucus;
(b) the names of all caucus members; and
(c) the date of creation, and dissolution, if applicable.
The Clerk's Office must maintain these records for at least four years following the dissolution of the caucus. A legislative special interest caucus may include, but is not limited to, a representation of sportsmen and women desiring to enhance and protect hunting, fishing, and shooting sports."
SECTION 3. Section 8-13-1300(1)(d) of the 1976 Code is amended to read:
"(d) the Senate Ethics Committee for all legislative caucus committees and legislative special interest caucuses affiliated with the Senate, the House of Representatives Ethics Committee for all legislative caucus committees and legislative special interest caucuses affiliated with the House of Representatives, and both ethics committees for all legislative caucus committees and legislative special interest caucuses affiliated with both houses."
SECTION 4. Section 8-13-1300(21) of the 1976 Code is amended to read:
"(21) 'Legislative caucus committee' means:
(a) a committee of either house of the General Assembly controlled by the caucus of a political party or a caucus based upon racial or ethnic affinity, or gender; however, each house may establish only one committee for each political-, racial-, ethnic-, or gender-based affinity;
(b) a party or group of either house of the General Assembly based upon racial or ethnic affinity, or gender;
(c) 'legislative caucus committee' does not include a 'legislative special interest caucus' as defined in Section 2-17-10(21)."
SECTION 5. Section 8-13-1333 of the 1976 Code is amended by adding the following lettered subsection at the end to read:
"(C)(1) A legislative special interest caucus must not solicit contributions as defined in Section 8-13-100(9), however: it may solicit funds from the general public for the limited purpose of defraying mailing expenses, including cost of materials and postage, and for members of the legislative special interest caucus to attend regional and national conferences. Legislative special interest caucus members may attend a regional or national conference only if the conference is exclusively comprised of legislative special interest caucus counterparts and convenes for the purpose of interacting and exchanging ideas among caucus members and the conference is sponsored by a national organization with which the legislative special interest caucus is affiliated. Attendance at any conference is prohibited if the conference is sponsored by any lobbying group or extends an invitation to persons other than legislators. Under no circumstances may a legislative special interest caucus accept funds from a lobbyist. Each special interest caucus must submit a financial statement to the appropriate supervisory office by January first and July first of each year showing the total amount of funds received and total amount of funds paid out. It must also maintain the following records, for not less than four years, which must be available to the appropriate supervisory office for inspection:
(a) the total amount of funds received by the legislative special interest caucus;
(b) the name and address of each person or entity making a donation and the amount and date of receipt of each donation;
(c) all receipted bills, canceled checks, or other proof of payment for any expenses paid by the legislative special interest caucus.
(2) A legislative special interest caucus may not accept a gift, loan, or anything of value, except for funds permitted in subsection (C)(1) above."
SECTION 6. Section 2-17-110 of the 1976 Code is amended by adding the following lettered subsection at the end to read:
"(J) A lobbyist, a lobbyist's principal, or a person acting on behalf of a lobbyist or a lobbyist's principal shall not offer or provide contributions or any other type of funds or financial assistance to a legislative special interest caucus as defined in Section 2-17-10(21)."
SECTION 7. This act takes effect upon approval by the Governor./
Amend title to conform.
THOMAS L. MOORE MICHAEL A. PITTS ROBERT W. HAYES, JR WILLIAM D. WITHERSPOON DANIEL B. VERDIN III PAUL L. AGNEW On Part of the Senate. On Part of the House.
The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.
The following Bills were read the third time, passed and, having received three readings in both Houses, it was ordered that the title of each be changed to that of an Act, and that they be enrolled for ratification:
S. 1116 (Word version) -- Senators McConnell, Lourie, Ford, Cleary, Knotts, Sheheen, Alexander and Setzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10, CHAPTER 3, TITLE 23 SO AS TO ESTABLISH THE SPECIAL INVESTIGATIONS UNIT WITHIN THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION TO INVESTIGATE ABUSE, NEGLECT, AND EXPLOITATION OF VULNERABLE ADULTS AND VULNERABLE ADULT FATALITIES; TO AMEND SECTION 43-35-10, AS AMENDED, RELATING TO THE DEFINITION OF TERMS IN THE OMNIBUS ADULT PROTECTION ACT, SO AS TO REVISE THE DEFINITION OF FACILITIES TO INCLUDE RESIDENTIAL PROGRAMS OPERATED BY, OR CONTRACTED, WITH THE DEPARTMENT OF MENTAL HEALTH, THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS, OR LOCAL DISABILITIES BOARDS AND THE DEFINITION OF "INVESTIGATIVE ENTITY" TO INCLUDE THE SPECIAL INVESTIGATIONS UNIT IN THE STATE LAW ENFORCEMENT DIVISION; TO AMEND SECTION 43-35-15, RELATING TO THE DUTIES AND PROCEDURES OF INVESTIGATIVE ENTITIES IN CONNECTION WITH ABUSE, NEGLECT, AND EXPLOITATION OF VULNERABLE ADULTS, SO AS TO PROVIDE THAT THE SPECIAL INVESTIGATIONS UNIT SHALL RECEIVE REPORTS OF ABUSE, NEGLECT, AND EXPLOITATION OF VULNERABLE ADULTS IN FACILITIES OPERATED BY, OR CONTRACTED WITH, THE DEPARTMENT OF MENTAL HEALTH, THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS, OR LOCAL DISABILITIES BOARDS, TO CLARIFY THE INVESTIGATIVE RESPONSIBILITIES OF THE LONG TERM CARE OMBUDSMAN AND THE ADULT PROTECTIVE SERVICES PROGRAM AT THE DEPARTMENT OF SOCIAL SERVICES, AND TO FURTHER PROVIDE FOR THE INVESTIGATION OF THESE INCIDENTS; TO AMEND SECTION 43-35-20, RELATING TO ADDITIONAL POWERS OF INVESTIGATIVE ENTITIES, SO AS TO PROVIDE THAT THESE ENTITIES HAVE ACCESS TO FACILITIES AS PERMITTED BY LAW; TO AMEND SECTION 43-35-25, RELATING TO PERSONS REQUIRED TO REPORT ABUSE, NEGLECT, AND EXPLOITATION OF VULNERABLE ADULTS, SO AS TO FURTHER CLARIFY THESE REPORTING RESPONSIBILITIES AND TO REQUIRE INCIDENTS INVOLVING CRIMINAL INTENT TO BE REPORTED TO LAW ENFORCEMENT; TO AMEND SECTION 43-35-35, RELATING TO REPORTING VULNERABLE ADULT DEATHS BELIEVED TO HAVE RESULTED FROM ABUSE OR NEGLECT, SO AS TO PROVIDE THAT ALL DEATHS OF A VULNERABLE ADULT IN FACILITIES OPERATED BY, OR CONTRACTED WITH, THE DEPARTMENT OF MENTAL HEALTH, THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS, OR A LOCAL DISABILITIES BOARD MUST BE REPORTED TO THE SPECIAL INVESTIGATIONS UNIT; TO AMEND SECTION 43-35-40, RELATING TO INVESTIGATIVE ENTITIES REPORTING INCIDENTS INVOLVING CRIMINAL INTENT TO LAW ENFORCEMENT, SO AS TO FURTHER CLARIFY THIS REPORTING REQUIREMENT; TO AMEND SECTION 43-35-65, RELATING TO NOTICES REQUIRED TO BE PLACED IN FACILITIES CONCERNING DUTIES OF FACILITY PERSONNEL, SO AS TO REQUIRE THESE NOTICES TO CONTAIN E-MAIL ADDRESSES AND FAX NUMBERS OF THE LONG TERM CARE OMBUDSMAN PROGRAM, THE SPECIAL INVESTIGATIONS UNIT, AND LAW ENFORCEMENT; TO AMEND SECTION 43-35-80, RELATING TO ACTIONS OF THE ATTORNEY GENERAL AGAINST A PERSON OR FACILITY FOR FAILING TO EXERCISE REASONABLE CARE IN OPERATING A FACILITY FOR VULNERABLE ADULTS, SO AS TO PROVIDE THAT REFERRALS FOR SUCH ACTIONS MAY ALSO BE MADE BY THE SPECIAL INVESTIGATIONS UNIT; TO ADD ARTICLE 5 TO CHAPTER 35, TITLE 43 SO AS TO FURTHER PROVIDE FOR THE POWERS AND DUTIES OF THE SPECIAL INVESTIGATIONS UNIT IN THE INVESTIGATION OF VULNERABLE ADULT FATALITIES AND TO ESTABLISH THE VULNERABLE ADULT FATALITIES REVIEW COMMITTEE AND TO PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES; TO ADD SECTION 17-5-555 SO AS TO REQUIRE THE CORONER OR MEDICAL EXAMINER TO REPORT THE DEATH OF A VULNERABLE ADULT TO THE SPECIAL INVESTIGATIONS UNIT UNDER CERTAIN CIRCUMSTANCES; AND TO AMEND SECTION 44-7-2910, AS AMENDED, RELATING TO CRIMINAL RECORDS CHECKS FOR DIRECT CAREGIVERS, SO AS TO REQUIRE THESE RECORDS CHECKS ON DIRECT CAREGIVERS IN RESIDENTIAL PROGRAMS OPERATED BY, OR CONTRACTED WITH, THE DEPARTMENT OF MENTAL HEALTH, THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS, AND LOCAL DISABILITIES BOARDS.
S. 1163 (Word version) -- Senators Sheheen, Reese, Hutto and Elliott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 81 TO TITLE 15 SO AS TO ENACT THE "SUCCESSOR ASBESTOS-RELATED LIABILITY FAIRNESS ACT", TO DEFINE CERTAIN TERMS RELATED TO ASBESTOS-RELATED CLAIMS, TO LIMIT SUCCESSOR ASBESTOS-RELATED LIABILITIES OF A CORPORATION UNDER CERTAIN CIRCUMSTANCES, TO PROVIDE EXCEPTIONS TO THE LIMITATIONS ON SUCCESSOR LIABILITY, AND TO PROVIDE A METHOD FOR ESTABLISHING THE FAIR MARKET VALUE OF TOTAL GROSS ASSETS IN DETERMINING THE LIMITATIONS ON SUCCESSOR LIABILITY.
The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments:
S. 1038 (Word version) -- Senators Martin, Gregory, Cleary, Knotts, Richardson, Ryberg, Mescher, Scott, Grooms, Elliott, Verdin and Williams: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 135 TO TITLE 44 TO ENACT THE "ASBESTOS AND SILICA CLAIMS PROCEDURE ACT OF 2006", SO AS TO PROVIDE THAT NO PERSON MAY RECEIVE A TRIAL DATE IN AN ASBESTOS OR SILICA CLAIM WITHOUT FIRST MAKING A PRIMA FACIE SHOWING THAT A QUALIFIED PHYSICIAN HAS DIAGNOSED THE PERSON WITH AN ASBESTOS RELATED OR SILICA RELATED DISEASE BASED ON THE PHYSICIAN'S ANALYSIS OF A DETAILED OCCUPATIONAL AND EXPOSURE HISTORY OF THE PERSON AND AN ANALYSIS OF THE PERSON'S MEDICAL HISTORY; TO ESTABLISH CRITERIA FOR THE REQUIRED MEDICAL DOCUMENTATION OF THE EXPOSED PERSON'S PHYSICAL IMPAIRMENT; TO ESTABLISH THAT THE LIMITATIONS PERIOD FOR AN EXPOSED PERSON OR CLAIMANT TO BRING AN ACTION DOES NOT BEGIN TO RUN UNTIL THE EXPOSED PERSON OR CLAIMANT DISCOVERS, OR SHOULD HAVE DISCOVERED, THAT THE EXPOSED PERSON OR CLAIMANT HAS OR HAD PHYSICAL IMPAIRMENT; TO CLARIFY THAT THIS CHAPTER DOES NOT AFFECT THE SCOPE OR OPERATION OF ANY WORKER'S COMPENSATION LAW OR VETERANS' BENEFIT PROGRAM; AND TO ESTABLISH CERTAIN OTHER REQUIREMENTS TO FILE AND MAINTAIN AN ASBESTOS OR SILICA CLAIM.
The following Joint Resolution was taken up, read the third time, and ordered sent to the Senate:
H. 5085 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, RELATING TO BOILER SAFETY PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 3034, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Rep. TAYLOR moved to adjourn debate upon the following Bill until Tuesday, May 16, which was adopted:
S. 776 (Word version) -- Senator Verdin: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO ALLOW A PROPERTY TAX EXEMPTION FOR A MOTOR VEHICLE LICENSED AND REGISTERED BY THE SOUTH CAROLINA DEPARTMENT OF MOTOR VEHICLES AS AN ANTIQUE MOTOR VEHICLE.
The following Bills were taken up, read the second time, and ordered to a third reading:
S. 1283 (Word version) -- Senators Leatherman and Peeler: A BILL TO AMEND SECTION 12-6-545, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPLICATION OF THE REDUCED STATE MARGINAL INDIVIDUAL INCOME TAX RATE TO THE ACTIVE TRADE OR BUSINESS INCOME OF A PASS-THROUGH BUSINESS, SO AS TO MAKE THIS APPLICATION AT THE ELECTION OF THE TAXPAYER, TO PROVIDE A MINIMUM FIVE YEARS FOR THIS ELECTION, TO PROVIDE ADDITIONAL DEFINITIONS FOR THIS APPLICATION, AND TO PROVIDE A "SAFE HARBOR" AMOUNT IN DETERMINING THE NONPERSONAL SERVICE PORTION OF ACTIVE TRADE OR BUSINESS INCOME IN A PASS-THROUGH BUSINESS WITH GROSS INCOME OF LESS THAN ONE MILLION DOLLARS AND TAXABLE INCOME OF LESS THAN ONE HUNDRED THOUSAND DOLLARS.
Rep. TOOLE explained the Bill.
S. 862 (Word version) -- Senators Cleary, Ford, Hutto, Knotts, Malloy, Cromer, Drummond, Setzler, Land, Short, Scott, Bryant, Anderson, Elliott and Williams: A BILL TO AMEND SECTION 15-41-30 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY EXEMPT FROM ATTACHMENT, LEVY, AND SALE, SO AS TO PROVIDE THAT THE EXEMPTION GRANTED TO A DEBTOR'S INTEREST IN PROPERTY USED AS A DEBTOR'S RESIDENCE DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS AND TO PROVIDE THAT THE EXCEPTION FOR THE AGGREGATE VALUE OF MULTIPLE HOMESTEAD EXEMPTIONS NOT EXCEED THREE HUNDRED THOUSAND DOLLARS.
Rep. SINCLAIR explained the Bill.
On motion of Rep. TOOLE, with unanimous consent, it was ordered that S. 1283 (Word version) be read the third time tomorrow.
On motion of Rep. SINCLAIR, with unanimous consent, it was ordered that S. 862 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 1175 (Word version) -- Senator Leatherman: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE TARGETED JOBS TAX CREDIT, SO AS TO REVISE THE DEFINITION OF "DISTRIBUTION FACILITY"; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CONFORM THE DEFINITION OF DISTRIBUTION FACILITY TO THE REVISED DEFINITION PROVIDED BY THE AMENDMENT TO THE TARGETED JOBS TAX CREDIT IN THIS ACT.
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\BBM\9460HTC06), which was adopted:
Amend the bill, as and if amended, by adding a penultimate SECTION appropriately numbered to read:
/ SECTION __. A. Section 12-6-3360(B)(5) of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding a subitem at the end of the item to read:
"(g) In a county which is at least one thousand square miles in size and which has had an unemployment rate greater than the state average for the past ten years and an average per capita income lower than the average state per capita income for the past ten years, and which is not included in any of the county classifications contained in subitems (a) through (f) of this item, the credit allowed is two tiers higher than the credit for which the county otherwise would qualify."
B. Notwithstanding the general effective date provided in this act, this SECTION takes effect upon approval of this act by the Governor and applies for taxable years beginning after 2005 and applies for any company which applied for job development credits pursuant to Section 12-6-3360 of the 1976 Code after 2005. /
Renumber sections to conform.
Amend title to conform.
Rep. LUCAS explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. LUCAS, with unanimous consent, it was ordered that S. 1175 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 836 (Word version) -- Senator Moore: A BILL TO AMEND JOINT RESOLUTION 210 OF 1987, RELATING TO THE PURCHASE OF NOTES OF THE CLARK'S-HILL RUSSELL AUTHORITY BY THE DIVISION OF GENERAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD AND THE INTEREST RATE ON THESE NOTES, SO AS TO PROVIDE THAT THE INTEREST RATE MUST BE DETERMINED PERIODICALLY BY THE STATE TREASURER, RATHER THAN SET AT A RATE OF EIGHT PERCENT PER YEAR.
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\AGM\18459MM06), which was adopted:
Amend the bill, as and if amended, by deleting SECTION 1 in its entirety and inserting:
/ "SECTION 1. The Division of General Services of the State Budget and Control Board through the Insurance Reserve Fund and the State Treasurer shall purchase not more than twenty million dollars of notes of the Clark's Hill-Russell Authority Division of Savannah Valley Development in amounts not exceeding three million five hundred thousand dollars in any one year for the purpose prescribed in Chapter 9 of Article 5, Chapter 1, Title 13 of the 1976 Code. The notes of the authority must bear interest at a rate of eight percent per annum interest to be determined periodically by the State Treasurer and must be repaid over a term not exceeding thirty years from the date of issuance of a respective series of notes." /
Renumber sections to conform.
Amend title to conform.
Rep. COTTY explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. COTTY, with unanimous consent, it was ordered that S. 836 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 1065 (Word version) -- Senator Grooms: A BILL TO AMEND SECTION 12-37-712, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ACCESS TO A MARINA AND ITS BUSINESS RECORDS FOR THE PURPOSE OF MAKING PROPERTY TAX ASSESSMENTS, SO AS TO DEFINE "BUSINESS RECORDS" FOR PURPOSES OF THIS SECTION.
The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\AGM\18481MM06), which was adopted:
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1.A. Chapter 54, Title 12 of the 1976 Code is amended by adding:
"Section 12-54-126. A person operating a business within this State who has been issued a license or licenses by the department, after closing, selling, or otherwise transferring the business to another person, shall return all licenses issued by the department to the department for cancellation and remit unpaid or accrued taxes. The department may refuse to issue a license to a person and may revoke one or more licenses held by a person who has failed to comply with the provisions of this section."
B. This section is effective October 1, 2006.
SECTION 2.A. Chapter 54 of Title 12 of the 1976 Code is amended by adding:
"Section 12-54-196. (A) If a retailer collects from the purchaser a state or local sales tax in an amount that exceeds the amount authorized pursuant to Section 12-36-940, or the amount required to be collected pursuant to Section 12-36-1350, the retailer may be held liable for a penalty equal to one hundred fifty percent of the amount of tax collected that exceeds the amount authorized to be collected from the purchaser pursuant to Section 12-36-940 or required to be collected from the purchaser pursuant to Section 12-36-1350. The assessment or remittance of this penalty does not relieve the retailer of an obligation the retailer has to repay the purchaser tax collected that exceeds the amount authorized or required to be collected from the purchaser pursuant to Chapter 36 of this title.
(B) Notwithstanding the provisions of subsection (A), a retailer is not subject to this penalty if the retailer:
(1) made a good faith effort to determine the proper tax rate;
(2) made a good faith effort to determine whether or not an exemption or exclusion was applicable; or
(3) refunds to the purchaser the amount that exceeded the amount authorized or required to be collected on a particular sale within ninety days of being notified and receiving documentation of the proper tax rate or the applicability of the exemption or exclusion.
(C) The department, at its discretion, may extend the time for issuing a refund pursuant to subsection (B)(3) to avoid the penalty if the retailer makes a request in writing to the department.
(D) The imposition of the penalty must be based on the facts and circumstances and is at the sole discretion of the department."
B. This section takes effect upon approval by the Governor and applies to taxes collected beginning in tax year 2006.
SECTION 3. Section 12-4-780 of the 1976 Code, as added by Act 399 of 2000, is redesignated as follows:
"Section 12-4-395. The department may accept, on terms and conditions it establishes, payments to it by credit cards. This authority includes a determination not to accept credit card payments or to accept credit card payments only for certain classes of payments as specified by the department. Notwithstanding another provision of law, the State Treasurer may enter into contracts on behalf of the department by which the department may accept credit card payments. The department may withhold the actual cost of processing credit card payments from deposits of the payments and may treat these withholdings as reimbursements of the associated expenditures."
SECTION 4. Section 12-6-40(A)(1)(a) of the 1976 Code, as last amended by Act 145 of 2005, is further amended to read:
"(a) Except as otherwise provided, 'Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 2004 2005, and includes the effective date provisions contained in it."
SECTION 5.A. Section 12-6-545 of the 1976 Code, as added by Act 41 of 2005, is further amended to read:
Section 12-6-545. (A) As used in this section:
(1) 'Active trade or business income or loss' means income or loss of an individual, estate, trust, or any other entity except those taxed or exempted from tax pursuant to Sections 12-6-530 through 12-6-550 resulting from the ownership of an interest in a pass-through business. Active trade or business income or loss does not include:
(a)(i) passive investment income as defined in Internal Revenue Code Section 1362(d) generated by a pass-through business and income of the same type regardless of the type of pass-through business generating it; and
(ii) expenses related to passive investment;
(b) capital gains and losses;
(c) any payments for services referred to in Internal Revenue Code Section 707(c);
(d) amounts reasonably related to personal services. All amounts paid as compensation and all guaranteed payments for services, but not for the use of capital, as defined in Internal Revenue Code Section 707(c) are deemed to be reasonably related to personal services. In addition, if an owner of a pass-through entity who performs personal services for the entity is not paid a reasonable amount for those personal services as compensation or payments referred to in Internal Revenue Code Section 707(c), all of the owner's income from the entity is presumed to be amounts reasonably related to personal services. For purposes of this section, amounts reasonably related to personal services include amounts reasonably related to the personal services of the owner, the owner's spouse, and any person claimed as a dependent on the owner's income tax return.
(2) 'Pass-through businesses' mean sole proprietorships, partnerships, and 'S' corporations, including limited liability companies taxed as sole proprietorships, partnerships, or 'S' corporations.
(B)(1) Notwithstanding Section 12-6-510, an a taxpayer may elect annually to have the income tax at the rate provided in item (2) of this subsection is imposed annually on the active trade or business income received by the owner of a pass-through business. For joint returns, the election is effective for both spouses. The amount subject to tax pursuant to this section is not subject to tax pursuant to Section 12-6-510.
(2) The rate of the income tax imposed pursuant to this subsection is:
Taxable Year Beginning in Rate of Tax
2006 6.5 percent
2007 6 percent
2008 5.5 percent
after 2008 5 percent
(C) Notwithstanding any other provision of this chapter, active trade or business loss must first be deducted, dollar for dollar against active trade or business income. Any remaining active trade or business loss is multiplied by a fraction, the numerator of which is the rate of tax imposed pursuant to subsection (B)(2) of this section, and the denominator of which is the highest income tax rate imposed pursuant to Section 12-6-510. The resulting amount is deductible from income taxed under Section 12-6-510 if otherwise allowable.
(D) The department may issue guidance as to what expenses reduce active trade or business income.
(E)(1) Notwithstanding item (A)(1)(e) of this section, if a taxpayer owns an interest in one or more pass-through businesses that have a total gross income of less than one million dollars and taxable income of less than one hundred thousand dollars, then the taxpayer may elect, instead of determining the actual amount of active trade or business income related to his personal services, to treat fifty percent of his active trade or business income as not related to his personal services. For purposes of this item, the term taxpayer includes both taxpayers who file a joint return.
(2) The department may provide other methods that may be used to determine an amount that is considered to be unrelated to the owner's personal services if it determines that the benefits to the State of taxing income from personal services at a higher rate are insufficient to justify the burdens imposed on the taxpayer."
B. This section takes effect for tax years beginning on or after January 1, 2006.
SECTION 6.A. Section 12-6-3350 of the 1976 Code is amended to read:
"Section 12-6-3350. (A) Taxpayers A taxpayer having contracts a contract with this State who subcontract subcontracts with minority firms are a socially and economically disadvantaged small business is eligible for an income tax credit equal to four percent of the payments to a minority that subcontractor for work pursuant to the state contract. The subcontractor must be certified as a minority firm socially and economically disadvantaged small business as defined in Section 11-35-5010 and regulations thereunder pursuant to it.
(B) The credit is limited to a maximum of twenty-five fifty thousand dollars annually. A taxpayer is eligible to claim the credit for six ten consecutive taxable years beginning with the taxable year in which the credit is first claimed first payment is made to the subcontractor that qualifies for the credit. After the above six ten consecutive taxable years, the taxpayer is no longer eligible for the credit regardless of whether or not the taxpayer claimed the credit in a year.
subsequent to the year in which the credit was first claimed.
(C) A taxpayer claiming the credit shall maintain evidence of work performed for a state the contract by the minority subcontractor and shall present the evidence at the time of filing its state income tax return in a manner prescribed by the department."
B. Section 11-35-5230(B)(1) - (4) of the 1976 Code, as last amended by Act 153 of 1997 is further amended to read:
"(1) Firms with state contracts A taxpayer having a contract with this State that subcontracts with minority firms shall be a socially and economically disadvantaged small business is eligible for an income tax credit equal to four percent of the payments to minority that subcontractors for work pursuant to a state the contract. Such The subcontractors must be certified as to the criteria of a minority firm a socially and economically disadvantaged small business as defined in Section 11-35-5010 of this code and any regulations which may be promulgated thereunder under it.
(2) The tax credit is limited to a maximum of twenty-five fifty thousand dollars annually. A firm shall be taxpayer is eligible to claim a tax credit for a period of five ten consecutive years from the date the first income tax credit is claimed beginning with the taxable year in which the first payment is made to the subcontractor that qualifies for the credit.
(3) Any firm desiring to be certified as a minority firm socially and economically disadvantaged small business shall make application apply to the Small and Minority Business Assistance Office (SMBAO) as defined by Section 11-35-5270, on such forms as may be prescribed by that office.
(4) Firms A taxpayer claiming the income tax credit shall maintain evidence of work performed for a state contract by minority the subcontractors and shall present such evidence on a form and in a manner prescribed by the Department of Revenue at the time of filing its state income tax return and claim such credit at the time of filing. All records shall must be available for audit by the Department of Revenue in accordance with prevailing tax statutes."
C. This section takes effect upon approval by the Governor and applies to taxable years beginning after December 31, 2006.
SECTION 7.A. Section 12-6-3360(C)(1), as last amended by Act 157 of 2005, is further amended to read:
"(1) 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 to taxpayers with one hundred or more employees that increase employment by ten or more full-time jobs, and no credit is allowed for the year or any subsequent year in which the net employment increase falls below the minimum level of ten. The amount of the initial job credit is as follows:
(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.
(c) Three thousand five hundred dollars for each new full-time job created in under developed counties.
(d) Two thousand five hundred dollars for each new full-time job created in moderately developed counties.
(e) One thousand five hundred dollars for each new full-time job created in developed counties."
B. This section takes effect upon approval by the Governor and applies to taxable years beginning in and after January 1, 2006.
SECTION 8. Section 12-6-3360(M)(8) of the 1976 Code is amended to read:
"(8) 'Distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers. The term does not include an establishment where retail sales of tangible personal property are made to retail customers on more than twelve days a year except for a facility which processes customer sales orders by mail, telephone, or electronic means, if the facility also processes shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside of South Carolina. Retail sales made inside the facility to employees working at the facility are not considered for purposes of the twelve-day and seventy-five percent limitation. For purposes of this definition, 'retail sale' and 'tangible personal property' have the meaning provided in Chapter 36 of this title."
SECTION 9. Section 12-37-220(B)(32)(7) of the 1976 Code is amended to read:
"(7) 'distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers, but the term "distribution facility" does not include an establishment which operates as a location where retail sales of tangible personal property are made to customers. A distribution facility includes establishments which process customer sales orders by mail, telephone, or electronic means, if the establishment also processes shipments of tangible personal property to customers. The terms "retail sale", and "tangible personal property", for purposes of this definition, have those meanings as contained in Chapter 36 of Title 12 has the meaning provided pursuant to Section 12-6-3360(M)(8)."
SECTION 10.A. Section 12-6-3375 of the 1976 Code, as added by Act 124 of 2005, is amended to read:
"Section 12-6-3375. (A) Companies primarily engaged in manufacturing, warehousing, or distribution, which use port facilities in this State and which increase their base port cargo volume at these facilities by a minimum of five percent over 2005 totals, are eligible to take either a five hundred dollar additional tax credit for each new full-time job created, or an additional two percent investment tax credit for investments in new facilities, plants, and equipment. Companies may also take an additional two hundred fifty dollar tax credit for each new full-time job created, or an additional one percent investment tax credit for each incremental two and one-half percent increase in port cargo volume which is over and above the minimum five percent increase in base volume. An annual maximum of one thousand five hundred dollars per job or a six percent investment tax credit applies in regard to the tax credits authorized by this section. The credit may only be claimed by the manufacturer, warehouse, or distribution company which owns the cargo at the time the port facilities are used.
(B) Base year port cargo volume must be at least seventy-five net tons of noncontainerized cargo or ten loaded TEUs for a company to be eligible for the credits provided for in this section.
(C) For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's state income tax return, which shall set forth the following information, as a minimum, in addition to the information required by law and by the Department of Revenue:
(1) a description of how the base year port traffic and the increase in port traffic was determined;
(2) the amount of the base year port traffic;
(3) the amount of the increase in port traffic for the taxable year, including information which demonstrates an increase in port traffic in excess of the minimum amount required to claim the tax credits under this section;
(4) any tax credit utilized by the taxpayer in prior years;
(5) the amount of tax credit carried over from prior years;
(6) the amount of tax credit utilized by the taxpayer in the current taxable year; and
(7) he amount of tax credit to be carried over to subsequent tax years.
(D) As used in this section:
(1) "TEU" means twenty-foot equivalent unit.
(2) "Base port cargo volume" means the total amount of net tons of noncontainerized or twenty-foot equivalent units (TEUs) of product actually transported by way of a waterborne ship through a port facility during the period from January 1, 2005, through December 31, 2005. For companies who locate in South Carolina after the effective date of this section, their base cargo volume will be measured by their first calendar year as long as they meet the requirements of seventy-five net tons of noncontainerized cargo or ten loaded TEUs. Base port cargo volume must be recalculated during the period from January 1, 2015 to December 31, 2015 and every tenth year thereafter.
(3) "Port facility" means any publicly or privately owned facility located within this State through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside this State and which handles cargo owned by third parties in addition to cargo owned by the port facility's owner.
(4) "Port traffic" means the total amount of net tons of noncontainerized cargo or containers measured in twenty-foot equivalent units (TEUs) of cargo transported by way of a waterborne ship or vehicle through a port facility.
(5) "New job" has the meaning defined in Section 12-6-3360(M)(3).
(6) "Full-time" has the meaning defined in Section 12-6-3360(M)(4).
(7) "Warehousing facility" has the meaning defined in Section 12-6-3360(M)(7).
(8) "Distribution facility" has the meaning defined in Section 12-6-3360(M)(8).
(E) Job tax credit provisions and procedures contained in Section 12-6-3360 and investment tax credit provisions and procedures contained in Section 12-14-60 apply to the tax credits provided by this section mutatis mutandi in the manner determined by the Department of Revenue.
(F) A company which increases its base port cargo volume at Ports Authority facilities may take either the additional job tax credits or the additional investment tax credits as provided by this section, but not both.
(G) The maximum amount of tax credits allowed to all qualifying taxpayers pursuant to this section may not exceed eight million dollars per calendar year. Tax credits allowed shall be allocated based on the date an application is received by the Coordinating Council for Economic Development.
The Coordinating Council has sole discretion in determining eligibility for additional credits provided by this section.
An application must be submitted to the Coordinating Council with the same information as required by subsection (C), and any other information required by the Coordinating Council.
(A)(1) A taxpayer engaged in manufacturing, warehousing, or distribution which uses port facilities in this State and which increases its port cargo volume at these facilities by a minimum of five percent in a single calendar year over its base year port cargo volume is eligible to claim a tax credit in the amount determined by the Coordinating Council for Economic Development (council).
(2) The maximum amount of tax credits allowed to all qualifying taxpayers pursuant to this section may not exceed eight million dollars for each calendar year. A qualifying taxpayer may not receive more than one million dollars for each calendar year except as provided in subsection (B)(2). The coordinating council has sole discretion in allocating credits provided by this section, taking into consideration the following factors:
(a) the amount of base year port cargo volume;
(b) the total and percentage increase in port cargo volume;
(c) the number of qualifying taxpayers;
(d) the type of cargo transported; and
(e) other factors related to the economic benefit of the State, as determined by the coordinating council.
(3) If the credit exceeds the taxpayer's tax liability for the taxable year, the excess amount may be carried forward and claimed against income taxes in the next five succeeding taxable years.
(4) The credit may be claimed by the taxpayer as provided in (A)(1) only if the taxpayer owns the cargo at the time the port facilities are used.
(B)(1) For every year in which a taxpayer claims the credit, the taxpayer shall submit an application to the council by March first of the calendar year after the calendar year in which the increase in port cargo volume occurs. The taxpayer shall attach a schedule to the taxpayer's application to the council with the following information and information requested by the council or the department:
(a) a description of how the base year port cargo volume and the increase in port cargo volume was determined;
(b) the amount of the base year port cargo volume;
(c) the amount of the increase in port cargo volume for the taxable year stated both as a percentage increase and as a total increase in net tons of noncontainerized cargo and TEUs of cargo, including information which demonstrates an increase in port cargo volume in excess of the minimum amount required to claim the tax credits pursuant to this section;
(d) any tax credit utilized by the taxpayer in prior years; and
(e) the amount of tax credit carried over from prior years.
(2) If on March fifteenth of each year, the eight-million-dollar amount of credit is not fully allocated among qualifying taxpayers, then those taxpayers who have been allocated the maximum one million dollar credit for a year must be allowed a pro-rata share of the remaining allocated credit up to eight million dollars.
(3) To receive the credit the taxpayer shall claim the credit on its income tax return in a manner prescribed by the department. The department may require a copy of the certification form issued by the council be attached to the return or otherwise provided.
(C) As used in this section:
(1) 'TEU' means a 'twenty-foot equivalent unit'; a volumetric measure based on the size of a container twenty feet long by eight feet wide by eight feet, six inches high.
(2) 'Base year port cargo volume' initially means the total amount of net tons of noncontainerized cargo or TEUs of cargo actually transported by way of a waterborne ship through a port facility during the period from January 1, 2005, through December 31, 2005. Base year port cargo volume must be at least seventy-five net tons of noncontainerized cargo or ten TEUs for a taxpayer to be eligible for the credits provided in this section. For a taxpayer that does not ship that amount in the year ending December 31, 2005, including a taxpayer who locates in South Carolina after December 31, 2005, its base cargo volume will be measured by the initial January first through December thirty-first calendar year in which it meets the requirements of seventy-five net tons of noncontainerized cargo or ten loaded TEUs. Base year port cargo volume must be recalculated each calendar year after the initial base year.
(3) 'Port facility' means any publicly or privately owned facility located within this State through which cargo is transported by way of a waterborne ship or vehicle to or from destinations outside this State and which handles cargo owned by third parties in addition to cargo owned by the port facility's owner.
(4) 'Port cargo volume' means the total amount of net tons of noncontainerized cargo or containers measured in twenty-foot equivalent units (TEUs) of cargo transported by way of a waterborne ship or vehicle through a port facility.
(D) Notwithstanding Section 12-54-240, the department and the Department of Commerce may exchange information submitted by a taxpayer pursuant to this section."
B. Section 12-54-240(B) of the 1976 Code, as last amended by Act 145 of 2005, is further amended by adding an appropriately numbered item at the end to read:
"( ) exchange of information between the department and the Department of Commerce pursuant to Section 12-6-3375."
C. This section takes effect upon approval by the Governor and applies to tax years beginning after December 31, 2004.
SECTION 11.A. Section 12-6-3385(A) of the 1976 Code is amended to read:
"(A)(1) A student is allowed a refundable individual income tax credit equal to twenty-five percent, not to exceed eight hundred fifty dollars in the case of four-year institutions and twenty-five percent, not to exceed three hundred fifty dollars in the case of two-year institutions for tuition paid an institution of higher learning or a designated institution as provided for in this section during a taxable year. The amount of the tax credit claimed up to the limits authorized in this section for any taxable year may not exceed the amount of tuition paid during that taxable year.
(2)(a) Tuition credits may not be claimed for more than four consecutive years after the student enrolls in an eligible institution.
(b) The credit period is suspended for a qualifying student required to withdraw from an institution of higher learning to serve on active military duty if the service member re-enrolls in an eligible institution within twelve months upon demobilization and provides official documentation from the Armed Forces to verify the dates of active duty military service.
(c) However, extensions An extension of the credit period may be granted due to medical necessity as defined by the Commission on Higher Education.
(3) The credit may be claimed by the student or by an individual eligible to claim the student as a dependent on his federal income tax return, whoever actually paid the tuition. The department shall prescribe a form for claiming the credit."
B. This section takes effect upon approval by the Governor and applies to qualifying students required to withdraw from a qualifying institution to serve on active military duty on or after January 1, 2000.
SECTION 12.A. Section 12-6-3535(A) of the 1976 Code, as last amended by Act 138 of 2005, is amended to read:
"(A) A taxpayer who is allowed a federal income tax credit under pursuant to Section 47 of the Internal Revenue Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed to claim a credit against income or license tax imposed pursuant to this title taxes imposed by Sections 12-6-510 and 12-6-530 and license fees imposed by Chapter 20 of Title 12. For the purposes of this section, 'qualified rehabilitation expenditures' and 'certified historic structure' are defined as provided in the Internal Revenue Code Section 47 and the applicable treasury regulations. The amount of the credit is ten percent of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, the taxpayer must attach to the return a copy of the section of the federal income tax return showing the credit claimed, along with any other information that the Department of Revenue determines is necessary for the calculation of the credit provided by this subsection."
B. Section 12-6-3535(C)(2) of the 1976 Code, as last amended by Act 138 of 2005, is amended to read:
"(2) The credit earned pursuant to this section by an 'S' corporation owing corporate level income tax must be used first at the entity level. Any Remaining credit passes through to each shareholder in a percentage equal to each shareholder's percentage of stock ownership. The credit earned pursuant to this section by a general partnership, limited partnership, limited liability company, or any other entity taxed as a partnership pursuant to Subchapter K of the Internal Revenue Code must be passed through to its partners and may be allocated among any of its partners, including without limitation, an allocation of the entire credit to one partner, in any a manner agreed by the partners that is consistent with Subchapter K of the Internal Revenue Code. As used in this item the term 'partner' means a partner, member, or owner of an interest in the pass-through entity, as applicable."
C. This section takes effect upon approval by the Governor and applies to tax years beginning in 2006.
SECTION 13.A. Section 12-6-5030(B) of the 1976 Code, as last amended by Act 145 of 2005, is further amended to read:
"(B)(1) A composite return is a single return for two or more taxpayers having the same tax year in which each participant's share of the partnerships or 'S' Corporation's taxable income or loss tax is separately computed separately and added together to arrive at the total tax due on the composite return. The partnership or 'S' Corporation may elect to determine each participant's tax due by one of the following methods:
(a) for a participant who provides an affidavit to the department through the entity stating that he has no income other than the income from the entity:
(i) compute the participant's South Carolina income tax using the pro rata share of the standard deduction or itemized deductions, and personal exemption amount exemptions for each participant pursuant to Section 12-6-1720(2) in the same manner as if it was being separately reported; or
(ii) compute the participant's South Carolina income tax without regard to any deductions or exemptions in the same manner as if it were being separately reported; or
(b) for a participant who does not provide an affidavit to the department through the entity stating that he has no income other than the income from the entity, compute each participant's share of South Carolina income tax without regard to any deductions or exemptions by using the active trade or business income rate provided in Section 12-6-545 on his active trade or business income, and using the highest marginal rate in Section 12-6-510 for other income.
(2) The composite return is signed by a general an authorized partner, or an authorized officer of the 'S' Corporation, or an authorized member of a limited liability company taxed as a partnership or 'S' Corporation."
B. This section takes effect upon approval by the Governor for taxable years beginning after 2005.
SECTION 14. Section 12-10-80(D)(2) of the 1976 Code, as last amended by Act 339 of 2000, is further amended to read:
"(2) The amount that may be claimed as a job development credit by a qualifying business is limited by this subsection and by the revitalization agreement. The council may approve a waiver of ninety-five percent of the limits provided in item (1) for a qualifying business making a significant capital investment as defined in Section 4-12-30(D)(4), 4-29-67(D)(4), or 12-44-30(87)."
SECTION 15. Section 12-23-810 of the 1976 Code is amended to read:
"Section 12-23-810. (A) Every hospital licensed as a general hospital by the Department of Health and Environmental Control is subject to the payment of an excise, license, or privilege tax. Each hospital's tax must be based on the total expenditures of each hospital as a percentage of total hospital expenditures statewide.
(B) [Reserved].
(C) Total annual revenues from the tax, exclusive of penalties and interest, in subsection (A) of this section initially must equal twenty-nine and one-half two hundred sixty-four million dollars. The amount of a general hospital's tax must be derived from Schedule B, Part 1 of the hospital's cost report. The initial annual tax must be collected, beginning July 1, 2006, based upon the reconciled account of a general hospital subject to this article, considering partial payments and an uncollected portion of the previous assessment pursuant to this article for the fiscal year ending June 30, 2006. Upon notification from the Department of Revenue, on behalf of and based on calculations performed by the Department of Health and Human Services, a general hospital shall remit the balance due based on a payment schedule as determined by the Department of Health and Human Services."
SECTION 16. Section 12-23-830 of the 1976 Code is amended to read:
"Section 12-23-830. (A) On the first day of each quarter, each general hospital shall remit one-fourth of its annual tax to the Department of Revenue. The tax must be paid for each quarter a hospital is in operation. If a hospital ceases operations, the taxes not paid as a result of the cessation of operations must be apportioned among other hospitals in operation.
(B) Beginning July 1, 2006, on the first day of each quarter, a general hospital shall remit to the Department of Revenue one-fourth of a second, and each successive, annual tax as calculated pursuant to subsection (A), based upon operations conducted during fiscal year ending June 30, 2007, and each successive state fiscal year. The tax must be paid for each quarter a hospital is in operation. If a hospital ceases operation, the taxes unpaid as a result of the cessation of operation, must be apportioned among other hospitals remaining in operation."
SECTION 17. Section 12-23-840 of the 1976 Code is amended to read:
"Section 12-23-840. Revenues derived under the provisions of this article must be deposited in the Medicaid Expansion Fund created by Section 44-6-155. In addition to the purposes specified in Section 44-6-155, monies in the Medicaid Expansion Fund must be used to provide healthcare coverage to the Medicaid-eligible and uninsured populations in South Carolina."
SECTION 18.A. Items (15), (39), (55) as last amended by Act 69 of 2003, (61), and (62), as last amended by Act 69 of 2003, all of Section 12-28-110 of the 1976 Code, are amended to read:
"(15) 'Diesel fuel' means a liquid, including biodiesel and a biodiesel blend that is commonly or commercially known or sold as a fuel that is suitable for use in a diesel-powered highway vehicle. A liquid meets this requirement if, without further processing or blending, the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle. However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle. 'Diesel fuel' does not include jet fuel if the buyer is registered to purchase jet fuel subject to federal taxes applicable to jet fuel and the seller obtains certification of that fact satisfactory to the Internal Revenue Service before making the sale.
(39) 'Motor fuel' means gasoline, diesel fuel, substitute fuel, and blended fuel.
(55) 'Motor fuel subject to the user fee' means gasoline, diesel fuel, kerosene, blended fuel, substitute fuel, and blends of them and any other substance blended with them.
(61) 'Transport truck' means a semitrailer or trailer combination rig designed or used to transport liquid motor fuel over the highways.
(62) 'Transporter' means any operator of a pipeline, barge, railroad or transport truck a person engaged in the business of transporting motor fuels subject to the user fee."
B. Section 12-28-110 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding at the end:
"(69) 'Substitute fuel' means a liquid that is commonly and commercially known or sold as a fuel that is suitable for use in a highway vehicle. The fuel meets this requirement if, without further processing or blending, the fuel is a fluid and has practical and commercial fitness for use in the propulsion of a highway vehicle. This includes all liquids regardless of temperature or pressure.
(70) 'Biodiesel' means a fuel composed of mono-alkyl esters of long chain fatty acids generally derived from vegetable oils or animal fats, commonly known as B100, that is commonly and commercially known or sold as a fuel that is suitable for use in a highway vehicle. The fuel meets this requirement if, without further processing or blending, the fuel is a fluid and has practical and commercial fitness for use in the propulsion of a highway vehicle.
(71) 'Biodiesel blend' means a blend of biodiesel fuel with petroleum based diesel fuel, commonly designated Bxx where xx represents the volume percentage of biodiesel fuel in the blend (for example B20 is 20 percent biodiesel, 80 percent petro diesel), and that is commonly and commercially known or sold as a fuel that is suitable for use in a highway vehicle. The fuel meets this requirement if, without further processing or blending, the fuel is a fluid and has practical and commercial fitness for use in the propulsion of a highway vehicle."
C. Section 12-28-310(A) of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:
"(A) Subject to the exemptions provided in this chapter, a user fee of sixteen cents a gallon is imposed on:
(1) all gasoline, gasohol, or blended fuels containing gasoline that are used or consumed for any purpose in this State; and
(2) all diesel fuel, substitute fuels, or alternative fuels, or blended fuels containing diesel fuel that are used or consumed in this State in producing or generating power for propelling motor vehicles."
D. Section 12-28-330 of the 1976 Code, as last amended by Act 161 of 2005, is further amended to read:
"Section 12-28-330. The department considers it a rebuttable presumption, subject to proof of exemption pursuant to Article 7 of this chapter, that all motor fuel subject to the user fee removed from a terminal in this State, or imported into this State other than by a bulk transfer within the bulk transfer terminal system or delivered into an end user's storage tank, is to be used or consumed in this State, in the case of gasoline, gasohol, or blended fuels containing gasoline and is to be used or consumed on the highways in this State in producing or generating power for propelling motor vehicles in the case of all other taxable motor fuel."
E. Section 12-28-790(C) and (D) of the 1976 Code is amended to read:
"(C) Where a refund is payable to a supplier, the supplier may claim a credit in lieu of the refund.
(D) To facilitate efficient administration and in lieu of any instead of the individual refund procedures, the department may provide by regulation an alternative election by the applicant for a refund by way of credit against state income tax liability."
F. Section 12-28-970(A) as last amended by Act 69 of 2003, is further amended to read:
"(A) A backup user fee equal to the user fee imposed by Section 12-28-310 is imposed and must be administered in accordance with regulations promulgated procedures established by the department on the use on the highways of motor fuel subject to the user fee by an end user, including operators of state and local government vehicles, American Red Cross vehicles, and buses, and other persons exempted from the full federal highway tax, unless the person is exempted otherwise under Section 12-28-710(A)(12), upon the delivery in this State into the fuel supply tank of a highway vehicle of:
(1) diesel fuel that contains a dye;
(2) motor fuel subject to the user fee on which a claim for refund has been made;
(3) alternative fuels; or
(4) liquid substitute fuel on which a user fee previously has not been imposed by this chapter."
G. Section 12-28-970 of the 1976 Code, as last amended by Act 69 of 2003, is further amended by adding:
"(C)(1) A back-up user fee equal to the user fee imposed by Section 12-28-310 is imposed on a liquid or gas that is not otherwise taxed pursuant to this chapter and that is commonly or commercially known or sold as a fuel suitable for use in a highway vehicle. The user fee is due upon the first receipt of the product when received from a source outside of South Carolina by any wholesaler, retailer, or end-user and the user fee is imposed upon, and is the liability of, the wholesaler, retailer, or end-user who first received the product into the State.
(2) A back-up user fee equal to the user fee imposed by Section 12-28-310 is imposed on any liquid or gas that is not otherwise taxed pursuant to this chapter and that is commonly or commercially known or sold as a fuel suitable for use in a highway vehicle. The user fee is due upon the first sale or use of the product when produced in this State by a person and the user fee is imposed upon the first in-state sale or use by that person. The user fee is imposed upon, and is the liability of, the producer of the product."
H. Section 12-28-975(A) and (C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) If an exporter diverts motor fuel subject to the user fee removed from a terminal in this State from an intended destination outside South Carolina as shown on the terminal-issued shipping papers to a destination within this State, the exporter, in addition to compliance with the notification provided for by Section 12-28-780, shall notify and pay the user fee imposed by Section 12-28-310 to the State upon the same terms and conditions as if the exporter were an occasional importer licensed under Section 12-28-905(A) without deduction for the allowances provided by Section 12-28-960. The supplier and exporter under this subsection by mutual agreement may permit the supplier to assume the exporter's liability and adjust the exporter's user fees payable to the supplier.
(C) If an unlicensed importer diverts motor fuel subject to the user fee from a destination outside this State to a destination inside this State after having removed the product from a terminal outside South Carolina, the importer, in addition to compliance with the notification provided for by Section 12-28-1525, shall notify the State and shall pay the user fee imposed by this chapter to South Carolina upon the same terms and conditions as if the unlicensed importer were a licensed occasional importer subject to Section 12-28-905(A) without deduction for the allowances provided by Section 12-28-960. An importer who has purchased the product from a licensed supplier, by mutual agreement with the supplier, may permit the supplier to assume the importer's liability and adjust the importer's user fees payable to the supplier. "
I. Section 12-28-990 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-990. (A) Each A person (i) blending materials including blendstocks, additives, and fuel grade ethanol on which the user fee has not been paid, including blendstocks, additives, and fuel grade ethanol with motor fuels subject to the user fee as to for which the user fee has been paid or accrued; or (ii) manufacturing or otherwise producing a substitute fuel or diesel fuel, unless dye was added in a manner that conforms to federal requirements established by the Internal Revenue Code and regulations exempting the product from the motor fuel tax pursuant to Section 12-28-710(11) shall remit the user fee imposed by this chapter.
(B) A fuel vendor subject to the user fee under subsection (A) shall remit the user fee with the report required under pursuant to Section 12-28-1390(B).
(C) Any A person other than a fuel vendor liable for the user fee payable under pursuant to subsection (A) shall remit the user fee directly to the department within thirty days of the blending or manufacturing event in accordance with regulations promulgated procedures established by the department.
(D) A person subject to the user fee payable pursuant to subsection (A) must be licensed by the department as a blender or a manufacturer."
J. Section 12-28-1120 of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"Section 12-28-1120. Each person A transporter who is not licensed as a supplier shall obtain a transporter's license before transporting motor fuel subject to the user fee by whatever manner from a point outside this State to a point inside South Carolina, or from a point inside this State to a point outside South Carolina, regardless of whether the person is engaged for hire in interstate commerce or for hire in intrastate commerce. The registration fee for a transporter's license is fifty dollars."
K. Section 12-28-1370(A) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(A) A person licensed as a transporter in this State engaged in interstate commerce shall file monthly reports with the department, on forms prescribed and furnished by the department, concerning the amount of motor fuel subject to the user fee transported by transport truck across the borders of this State from a point outside this State to a point inside South Carolina, from a point inside this State to a point outside South Carolina, or between two points in this State."
L. This section takes effect July 1, 2006.
SECTION 19.A. Section 12-33-245(A) of the 1976 Code, as last amended by Act 139 of 2005, is further amended to read:
"(A) In addition to taxes imposed pursuant to the provisions of Sections 12-33-230, 12-33-240, Article 5 of this chapter, and Chapter 36, Title 12, there is imposed an excise tax equal to five percent of the gross proceeds of the sales of alcoholic liquor by the drink for on-premises consumption in an establishment licensed for sales pursuant to Article 5, Chapter 6, Title 61 or at a location holding a temporary license or permit that authorizes the sale of liquor by the drink. All proceeds of this excise tax must be deposited to the credit of the general fund of the State. Except with respect to the distribution of the revenue of this tax, this excise tax is considered to be imposed pursuant to Chapter 36, Title 12. For purposes of this subsection, 'gross proceeds of sales' has the meaning as provided in Section 12-36-90, except that the sales tax imposed under Chapter 36, Title 12 is not included in 'gross proceeds of sales'. The term 'gross proceeds of sales' also includes, but is not limited to, the retail value of a complimentary or discounted beverage containing alcoholic liquor, an amount charged for ice for a drink containing alcoholic liquor, and an amount charged for a nonalcoholic beverage that is sold or used as a mixer for a drink containing alcoholic liquor."
B. Chapter 6, Title 61 of the 1976 Code is amended by adding:
Section 61-6-720. Notwithstanding any other provision of this title, a person who operates in this State a bakery for the preparation of food items, in which food items alcoholic beverages are used as ingredients, and which food items are manufactured for and sold at wholesale, must apply for a special bakery food manufacturer's license from the department, in accordance with Section 61-2-100, to purchase the alcoholic beverages from a wholesaler licensed pursuant to Section 61-6-100(2), or from a retailer licensed pursuant to Section 61-6-100(3), or from a manufacturer in containers holding greater quantities of alcoholic liquor than wholesalers or retailers have authority to sell. The department must establish the form of the application for the special bakery food manufacturer's license. The license fee for this biennial license is one thousand dollars. Alcoholic liquor purchased pursuant to this section may only be used in the preparation of food items. The department must revoke the special bakery food manufacturer's license of any operator which permits the consumption of alcoholic liquor as a beverage of liquor purchased pursuant to this section or which transfers alcoholic liquor purchased pursuant to this section to any other person.
SECTION 20.A. Section 12-36-90(2) of the 1976 Code, as last amended by Act 139 of 2005, is further amended by adding an appropriately lettered item at the end to read:
"( ) tangible personal property purchased by a person engaged in the business of servicing a warranty, maintenance, or similar service contract for use in replacing a defective part under the contract if tax was paid on the sale or the renewal of the contract and the customer is not charged for labor or material when the part is replaced."
B. This section takes effect October 1, 2005.
SECTION 21.A. Section 12-36-910(B) of the 1976 Code, as last amended by Act 161 of 2005, is further amended by adding an appropriately numbered item to read:
"( ) gross proceeds accruing or proceeding from the sale or renewal of warranty, maintenance, or similar service contracts for tangible personal property, whether or not the contracts are purchased in conjunction with the sale of tangible personal property."
B. This section takes effect October 1, 2005.
SECTION 22. Section 12-36-2120(51) of the 1976 Code, as last amended by Act 399 of 2000, is further amended to read:
"(51) material handling systems and material handling equipment used in the operation of a distribution facility or a manufacturing facility including, but not limited to, racks used in the operation of a distribution facility or a manufacturing facility and either used or not used to support a facility structure or part of it. To qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least thirty-five million dollars in real or personal property in this State over the five-year period beginning on the date provided by the taxpayer to the department in its notices. The taxpayer shall notify the department in writing that it has met the thirty-five million dollar investment requirement or, after the expiration of the five years, that it has not met the thirty-five million dollar investment requirement. The department may assess any tax due on material handling systems and material handling equipment purchased tax-free pursuant to this item but due the State as a result of the taxpayer's failure to meet the thirty-five million dollar investment requirement. The running of the periods of limitations for assessment of taxes provided in Section 12-54-85 is suspended for the time period beginning with notice to the department before the taxpayer uses the exemption and ending with notice to the department that the taxpayer either has met or has not met the thirty-five million dollar investment requirement."
SECTION 23.A. Section 12-36-2120 of the 1976 Code, as last amended by Act 164 of 2005, is further amended by adding an appropriately numbered item at the end to read:
"( ) the sale or renewal of a warranty, maintenance, or similar service contract for tangible personal property if the sale or purchase of the tangible personal property covered by the contract is exempt or excluded from the tax imposed by this chapter."
B. This section takes effect October 1, 2005.
SECTION 24. Section 12-37-2740 of the 1976 Code, as added by Act 101 of 2001, is amended to read:
"Section 12-37-2740. (A) The Department of Motor Vehicles shall suspend the driver's license and vehicle registration of a person who fails to pay personal property tax on a vehicle. The request to suspend must be an electronic notification from the county treasurer of the county where in which the tax is delinquent. Before the electronic notification is sent to the department Department of Motor Vehicles, the county treasurer shall notify the delinquent taxpayer of the pending suspension by letter. The letter must be developed by the county treasurers in conjunction with the department Department of Motor Vehicles and used uniformly throughout the State. The letter must advise the person of the pending suspension and the steps necessary to prevent the suspension from being entered on the person's driving and registration records. Each A county must allow thirty days for the payment of taxes before the county notifies the department Department of Motor Vehicles to suspend the person's driver's license and vehicle registration.
(B) Notwithstanding the provisions of Sections 56-1-460 and 56-9-500, a charge of driving under suspension when if the suspension is solely for failure to pay property taxes or the reinstatement fee required for the property tax suspension does not require proof of financial responsibility. A person shall is not be subject to a custodial arrest solely for being under suspension pursuant to provisions contained in this section. Upon conviction:
(1) For a first offense under this section, the penalty is a fine not to exceed fifty dollars.
(2) For a second offense under this section, the penalty is a fine not to exceed two hundred fifty dollars.
(3) For a third or subsequent offense under this section, the penalty must not exceed the general criminal jurisdiction of a magistrate's court is a fine not to exceed five hundred dollars, or imprisonment not to exceed thirty days, or both.
(C) Notwithstanding the provisions of subsections (A) and (B) of this section or the provisions of Section 56-1-460, a charge of driving under suspension issued solely as a result of this section must be dismissed if the person provides proof on the person's court date that the personal property taxes on the vehicle which resulted in the charge being issued have been paid.
(D) Before the reinstatement of a driver's license or vehicle registration suspended due to a violation of pursuant to this section, a fee of fifty dollars must be paid to the department Department of Motor Vehicles. The department Department of Motor Vehicles may retain revenues generated by payment of the reinstatement fees pursuant to this section for use in defraying costs associated with suspension and reinstatement actions pursuant to this section. Fees collected in excess of actual departmental direct costs related to suspension and reinstatement actions pursuant to this section must be deposited to the credit of the general fund of the State at the end of each fiscal year."
SECTION 25. Section 12-37-2890 of the 1976 Code, as added by Act 161 of 2005, is amended to read:
"Section 12-37-2890. (A) Upon request of by the Department of Revenue, and after the time period for all appeals of any tax due is exhausted, the Department of Public Safety Motor Vehicles shall suspend the driver's license and vehicle registration of a person who that fails to file and or pay a motor carrier property tax on a vehicle, pursuant to this article. The request to suspend must be an electronic notification from the Department of Revenue to the Department of Motor Vehicles. Before notification is sent to the Department of Public Safety Motor Vehicles, the Department of Revenue shall notify the delinquent taxpayer by certified letter of the pending suspension and of the steps necessary to prevent the suspension from being entered on the person's taxpayer's driving and registration records. The department shall allow thirty days for payment of taxes before notifying the Department of Public Safety Motor Vehicles to suspend the driver's license and vehicle registration.
(B) Notwithstanding the provisions of Sections 56-1-460 and 56-9-500, a charge of driving under suspension when the suspension is solely for failure to file and or pay a motor carrier property tax or the reinstatement fee required for the property tax does not require proof of financial responsibility. A person is not subject to a custodial arrest solely for being under suspension pursuant to this section. Upon conviction of a violation of this section, the taxpayer is subject to:
(1) for a first offense a fine not to exceed fifty dollars;
(2) for a second offense a fine not to exceed two hundred fifty dollars; and
(3) for a third or subsequent offense under this Section, the penalty is a fine not to exceed five hundred dollars or imprisonment not to exceed thirty days, or both.
(C) Notwithstanding the provisions of subsections (A) and (B) of this section or the provisions of Section 56-1-460, a charge of driving under suspension issued solely as a result of this section must be dismissed if the taxpayer provides proof on the taxpayer's court date that the personal property taxes on the vehicle which resulted in the charge being issued have been paid.
(D) Before the reinstatement of a driver's license or vehicle registration suspended due to a violation of this section, a fee of fifty dollars must be paid to the Department of Motor Vehicles. The Department of Motor Vehicles may retain revenues generated by payment of the reinstatement fees pursuant to this section for use in defraying costs associated with suspension and reinstatement actions pursuant to this section. Fees collected in excess of actual departmental direct costs related to suspension and reinstatement actions pursuant to this section must be deposited to the credit of the general fund of the State at the end of each fiscal year."
SECTION 26. Section 12-43-335(C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(C) For the purpose of assessing property of railroads, private carlines, airlines, water, power, telephone, cable television, sewer, and pipeline companies, as provided in Section 12-4-540(A), the department shall follow the Sector 22 classification of the most recent North American Industry Classification System Manual, as follows:
(1) Sector 482;
(2) Sector 485, except subsectors 4851, 48521, 48531, 48541, 4859, and 488490;
(3) Sector 424, except subsectors 48411, 48422, 492, 493, and 488490;
(4) Sector 483, except subsectors 48311, 483113, 483211, and 483114;
(5) Sector 481, except subsectors 4812 and 48811;
(6) Sector 486;
(7) Sector 57 51, except subsectors 51511 and 51512;
(8) Sector 22, except subsectors 56292, 562211, 562212, 562213, 562219, 488119, 56291, 56171, 562998, 22133, and 22131."
SECTION 27.A. Section 12-54-155 of the 1976 Code is amended to read:
"Section 12-54-155. (a)(A)(1) If there is an underpayment attributable to either a substantial understatement of tax for any a taxable period or a substantial valuation misstatement, there must be added to the tax an amount equal to twenty-five percent of the amount of any the underpayment attributable to the understatement.
(2) This section does not apply to a portion of an underpayment attributable to fraud on which a penalty is imposed pursuant to Section 12-54-43(G).
(3) This section does not apply to a portion of an underpayment on which a penalty for underpayment of property tax on business-related property is imposed pursuant to Section 12-54-43(L).
(b)(1)(A)(B)(1)(a) For purposes of this section, there is a substantial understatement of tax for any a taxable period if the amount of the understatement for the taxable period exceeds the greater of ten percent of the tax required to be shown on the return for the taxable period or five thousand dollars.
(B)(b) In the case of a corporation other than an 'S' Corporation or a personal holding company, (as defined in IRC Internal Revenue Code Section 542), paragraph item (1) must be applied by substituting 'ten thousand dollars' for 'five thousand dollars'.
(2)(A)(a) For purposes of paragraph item (1), "Understatement" 'understatement' means the excess of the amount of the tax required to be shown on the return for the taxable period over the amount of the tax imposed which is shown on the return.
(B)(b) The amount of the understatement under subparagraph (A) subitem (a) must be reduced by that portion of the understatement which is attributable to (i) the tax treatment of any an item: (i) by the taxpayer if there is or was substantial authority for such that treatment, or (ii) any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return and there is a reasonable basis for the tax treatment of the item by the taxpayer. For purposes of (B)(2)(b)(ii) a corporation must not be treated as having a reasonable basis for its tax treatment of an item attributable to a multiple-party financing transaction if the treatment does not clearly reflect the income of the corporation. For purposes of this paragraph, the words 'substantial authority' and 'adequately disclosed' must be interpreted in accordance with Treasury Regulation Section 1.6662-4 as of the date on which the Internal Revenue Code is applied to state tax laws pursuant to Section 12-6-40.
(C)(i) In case of any item attributable to a tax shelter:
(I) subparagraph (B)(ii) does not apply; and
(II) subparagraph (B)(i) does not apply unless (in addition to meeting the requirements of the subparagraph) the taxpayer reasonably believed that the tax treatment of the item by the taxpayer was more likely than not the proper treatment.
(c)(i) Subitem (b) does not apply to an item attributable to a tax shelter.
(ii) For purposes of clause subsubitem (i), 'tax shelter' means:
(I)(A) a partnership or other entity;
(II)(B) and an investment plan or arrangement, ; or
(III)(C) any other another plan or arrangement if the principal purpose of the partnership, entity, plan, or arrangement is the avoidance or evasion of income tax.
(C) For purposes of this section, there is a substantial valuation misstatement if the:
(1) value of property or the adjusted basis of property claimed on a return of tax imposed in Title 12 is two hundred percent or more of the amount determined to be the correct amount of the valuation or adjusted basis; or
(2)(a) price for property or services for use of property claimed on the return in connection with a transaction between persons described in Internal Revenue Code Section 482 is two hundred percent or more, or fifty percent or less, of the amount determined pursuant to Section 482 to be the correct amount of the price; or
(b) net Internal Revenue Code Section 482 transfer price adjustment for the taxable year exceeds the lesser of five million dollars or ten percent of the taxpayer's South Carolina gross receipts.
(D)(1) A penalty must not be imposed pursuant to this section with respect to a portion of an underpayment if it is shown that there was a reasonable cause for the portion and that the taxpayer acted in good faith with respect to the portion. For purposes of this item, the words 'reasonable cause' and 'good faith' must be interpreted in accordance with Treasury Regulation Section 1.6664-4 as of the date on which the Internal Revenue Code is applied to state tax laws pursuant to Section 12-6-40.
(2) In the case of underpayment attributable to a substantial valuation misstatement with respect to charitable deduction property, item (1) does not apply if:
(a) the claimed value of the property was based on a qualified appraisal made by a qualified appraiser; and
(b) in addition to obtaining the appraisal, the taxpayer made a good faith investigation of the value of the contributed property.
(3) For purposes of this subsection, the term 'charitable deduction property' means property contributed by the taxpayer in a contribution for which a deduction was claimed under Internal Revenue Code Section 170. For purposes of item (2) the term does not include securities for which as of the date of the contribution, market quotations are readily available on an established securities market.
(E) As used in this section, 'Internal Revenue Code' refers to the Internal Revenue Code as applied to state tax laws pursuant to Section 12-6-40."
B. This section takes effect upon approval by the Governor and applies for tax periods beginning after December 31, 2006.
SECTION 28. Section 12-60-30(10) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(10) 'Department determination' means the final determination within the department from which an individual can a person may request a contested case hearing before the Administrative Law Judge Division Court."
SECTION 29.A. Section 12-60-470(C) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(C)(1) Only the taxpayer legally liable for the tax may file a claim for refund or receive a refund, except that after the application of Section 12-60-490 against the person claiming or receiving the refund:
(1)(a) a person who acts as a collector and remitter of state taxes may claim a credit or refund of the tax collected, but only if the person establishes that he has paid the tax in question to the State; and
(a)(i) repaid the tax to the person from whom he collected it; or
(b)(ii) obtained the written consent of the person from whom he collected the tax to the allowance of the credit or refund;
(2)(b) a purchaser who has paid sales tax to a retailer for a specific transaction may claim a refund if the retailer who paid the sales tax to the State has assigned, in writing, the right to a refund of that sales tax to the purchaser;
(3)(2) except as allowed in items (1) and (2) above, the taxpayer legally liable for the tax may only assign a refund to another person only after the taxpayer's claim is allowed, the amount of the refund is finally decided, and the department has approved the refund. The assignment must be in writing.
(3) A credit card or debit card issuer may claim a refund on behalf of a foreign mission or a foreign diplomat for purchases exempt from the sales and use tax imposed pursuant to Chapter 36 of this title as a result of treaties signed by the United States if the: (i) credit card or debit card issuer is authorized by the United States Department of State to participate in a diplomatic tax exemption program allowing the card or card issuer to seek refunds in accordance with procedures established by the United States Department of State; (ii) sale to the foreign mission or foreign diplomat qualifies as exempt under treaties signed by the United States; (iii) Department of Revenue approves the refund; and (iv) credit or debit card issuer credits the foreign mission's or foreign diplomat's credit card or debit card account to reflect the issuance of the refund.
(4) The provisions of Section 12-60-490 also apply to a person claiming or receiving a refund pursuant to this section, except for a credit card or debit card issuer seeking a sales and use tax refund on behalf of a foreign mission or foreign diplomat pursuant to subsection (C)(3) above. A refund may be issued only after the application of Section 12-60-490 against the taxpayer legally liable for the tax and, if applicable, against another person claiming or receiving the refund pursuant to this subsection.
(5) In case of a claim for refund filed by, or a refund assigned to, a person other than the taxpayer legally liable for the tax, the department may advise the person who filed the claim or who was assigned the refund that, if applicable, the refund was reduced or eliminated as a result of taxes owed by the taxpayer legally liable for the tax and the application of Section 12-60-490 and the amount by which the refund was reduced by taxes owed by the taxpayer legally liable for the tax."
B. This section takes effect July 1, 2006.
SECTION 30. Sections 12-4-770 and 12-36-530 of the 1976 Code are hereby repealed.
SECTION 31. Section 12-6-5590(E) and (F) of the 1976 Code, as added by Act 145 of 2005, is amended to read:
"(E) A contribution of an otherwise "qualified conservation contribution" as defined in Section 170(h) of the Internal Revenue Code shall be deemed not to have the requisite donative intent if the underlying property is used for, or associated with, the playing of golf, or is planned to be so used or associated.
(F) The department shall examine the substance, rather than merely the form, of the contribution and related and surrounding transactions, and may use the step transaction, economic reality, quid pro quo, personal benefit, and other judicially developed doctrines in determining whether the requisite donative intent is present."
SECTION 32. Section 12-58-160(B) of the 1976 Code, as added by Act 76 of 1995, is amended to read:
"(B) When the department releases a lien erroneously filed, notice of that fact must be mailed to the taxpayer and upon the request of the taxpayer, a copy of the release must be mailed forwarded to the major credit reporting companies in the county where the lien was filed. Submission of data under this section does not constitute a violation of Section 30-2-50.
SECTION 33. The fourth paragraph of Section 12-37-250 of the 1976 Code is amended to read:
"When any person who was entitled to a homestead tax exemption under this section dies or any person who was not sixty-five years of age or older, blind, or disabled on or before December thirty-first preceding the application period, but was at least sixty-five years of age, blind, or disabled at the time of his death and was otherwise entitled dies and the surviving spouse is at least fifty years of age and acquires complete fee simple title or a life estate to the dwelling place within nine months after the death of the spouse, the dwelling place is exempt from real property taxes to the same extent and obtained in accordance with the same procedures as are provided for in this section for an exemption from real property taxes so long as the spouse remains unmarried and the dwelling place is utilized as the permanent home and legal residence of the spouse. A surviving spouse who disposes of the dwelling place and acquires another residence in this State for use as a dwelling place may apply for and receive the exemption on the newly acquired dwelling place. The spouse shall inform the county auditor of the change in address of the dwelling place."
SECTION 34. Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-714. In addition to any other provisions of law subjecting boats and boat motors to property tax in this State:
(1) A boat, including its motor if separately taxed, used in interstate commerce having a tax situs in this State and at least one other state is subject to property tax in this State. The value of such a boat must be determined based on the fair market value of the boat multiplied by a fraction representing the number of days present in this State. The fraction is determined by dividing the number of days the boat was present in this State by three hundred and sixty-five days. A boat used in interstate commerce must be physically present in this State for thirty days in the aggregate in a property tax year to become subject to ad valorem taxation.
(2) A boat, including its motor if the motor is separately taxed, which is not currently taxed in this State and is not used exclusively in interstate commerce, is subject to property tax in this State if it is present within this State for sixty consecutive days or for ninety days in the aggregate in a property tax year. Upon written request by a tax official, the owner must provide documentation or logs relating to the whereabouts of the boat in question. Failure to produce requested documents creates a rebuttable presumption that the boat in question is taxable within this State."
SECTION 35. Section 12-51-150 of the 1976 Code is amended to read:
"Section 12-51-150. In the case that the official in charge of the tax sale discovers before a tax title has passed, the failure of any action required to be properly performed, the official may void the tax sale and refund the amount paid, and the actual interest earned, to the successful bidder. If the full amount of the taxes, assessments, penalties, and costs have not been paid, the property must be brought to tax sale as soon as practicable."
SECTION 36.A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3600. (A) For taxable years beginning after 2006, and before 2014, there is allowed a credit against the tax imposed pursuant to this chapter for any ethanol facility which is in production at the rate of at least twenty-five percent of its name plate design capacity for the production of ethanol, before denaturing, on or before December 31, 2009. The facility must be placed in use after 2006. The credit equals twenty cents a gallon of ethanol produced and is allowed for sixty months beginning with the first month for which the facility is eligible to receive the credit and ending not later than December 31, 2014. The credit only may be claimed if the ethanol facility maintains an average production rate of at least twenty-five percent of its name plate design capacity for at least six months after the first month for which it is eligible to receive the credit.
(B) As used in this section:
(1) 'Ethanol facility' means a plant or facility primarily engaged in the production of ethanol or ethyl alcohol
derived from grain components, coproducts, or byproducts; and
(2) 'Name plate design capacity' means the original designed capacity of an ethanol facility. Capacity may be specified as bushels of grain ground or gallons of ethanol produced a year.
(C) An ethanol facility eligible for a tax credit under subsection (A) of this section also shall receive a credit against the tax imposed pursuant to this chapter the amount of twenty cents a gallon of ethanol produced in excess of the original name plate design capacity which results from expansion of the facility completed after 2006 and before 2009. The tax credit is allowed for sixty months beginning with the first month for which production from the expanded facility is eligible to receive the tax credit and ending not later than 2014.
(D)(1) Pursuant to this chapter, beginning January 1, 2014, an ethanol facility must receive a credit against the tax imposed in the amount of seven and one-half cents a gallon of ethanol, before denaturing, for new production for a period not to exceed thirty-six consecutive months.
(2) For purposes of this subsection, 'new production' means production which results from a new facility, a facility which has not received credits before 2014, or the expansion of the capacity of an existing facility by at least two million gallons first placed into service after 2014, as certified by the design engineer of the facility to the Department of Revenue.
(3) For expansion of the capacity of an existing facility, 'new production' means annual production in excess of twelve times the monthly average of the highest three months of ethanol production at an ethanol facility during the twenty-four-month period immediately preceding certification of the facility by the design engineer.
(4) Credits are not allowed pursuant to this subsection for expansion of the capacity of an existing facility until production is in excess of twelve times the three-month average amount determined pursuant to this subsection during any twelve-consecutive-month period beginning no sooner than January 1, 2014.
(5) The amount of a credit granted pursuant to this section based on new production must be approved by the Department of Revenue based on the ethanol production records as may be necessary to reasonably determine the level of new production.
(E)(1) The credits described in this section are allowed only for ethanol produced at a plant in this State at which all fermentation, distillation, and dehydration takes place. Credit is not allowed for ethanol produced or sold for use in the production of distilled spirits.
(2) Not more than twenty-five million gallons of ethanol produced annually at an ethanol facility is eligible for the credits in subsections (A) and (C) of this section, and the credits only may be claimed by a producer for the periods specified in subsections (A) and (C) of this section.
(3) Not more than ten million gallons of ethanol produced during a twelve-consecutive-month period at an ethanol facility is eligible for the credit described in subsection (D) of this section, and the credit only may be claimed by a producer for the periods specified in subsection (D) of this section.
(4) Not more than one hundred twenty-five million gallons of ethanol produced at an ethanol facility by the end of the sixty-month period set for in subsection (A) or (C) of this section is eligible for the credit under the subsection. An ethanol facility which receives a credit for ethanol produced under subsection (A) or (C) of this section may not receive a credit pursuant to subsection (D) of this section until its eligibility to receive a credit under subsection (A) or (C) of this section has been completed.
(E) The Department of Revenue shall prescribe an application form and procedures for claiming credits under this section.
(F) For purposes of ascertaining the correctness of any application for claiming a credit allowed pursuant to this section, the Department of Revenue may examine or cause to have examined, by any agent or representative designated for that purpose, any books, papers, records, or memoranda bearing upon these matters."
B.1. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3610. (A) As used in this section, renewal fuel means liquid nonpetroleum based fuels that can be placed in motor vehicle fuel tanks and used as a fuel in a highway vehicle. It includes all forms of fuel commonly or commercially known or sold as biodiesel and ethanol.
(B) A taxpayer that constructs and installs and places in service in this State a qualified commercial facility for dispensing renewable fuel is allowed a credit equal to twenty-five percent of the cost to the taxpayer against the taxpayer's liability for a tax imposed pursuant to this chapter constructing and installing the part of the dispensing facility, including pumps, storage tanks, and related equipment, that is directly and exclusively used for dispensing or storing renewable fuel. A facility is qualified if the equipment used to store or dispense renewable fuel is labeled for this purpose and clearly identified as associated with renewable fuel. The entire credit may not be taken for the taxable year in which the facility is placed in service but must be taken in three equal annual installments beginning with the taxable year in which the facility is placed in service. If, in one of the years in which the installment of a credit accrues, the portion of the facility directly and exclusively used for dispensing or storing renewable fuel is disposed of or taken out of service, the credit expires and the taxpayer may not take any remaining installment of the credit. The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.
(C) A taxpayer that constructs and places in service in this State a commercial facility for processing renewable fuel is allowed a credit equal to twenty-five percent of the cost to the taxpayer of constructing and equipping the facility. The entire credit may not be taken for the taxable year in which the facility is placed in service but must be taken in seven equal annual installments beginning with the taxable year in which the facility is placed in service. If, in one of the years in which the installment of a credit accrues, the facility with respect to which the credit was claimed is disposed of or taken out of service, the credit expires and the taxpayer may not take any remaining installment of the credit. The unused portion of an unexpired credit may be carried forward for not more than ten succeeding taxable years.
(D) A taxpayer that claims any other credit allowed under this article with respect to the costs of constructing and installing a facility may not take the credit allowed in this section with respect to the same costs."
B.2. Section 12-6-3610 of the 1976 Code as added by this section is repealed effective for facilities placed in service after 2011.
B.3. Notwithstanding the general effective date of this act, this section takes effect upon approval of this act by the Governor and applies for facilities placed in service after 2006.
C. Article 7, Chapter 28, Title 12 of the 1976 Code is amended by adding:
"Section 12-28-745. (A) Renewable fuel exempt from tax pursuant to Section 12-28-710(A)(17), whether blended with other fuels or used in its pure state, is fully exempt from taxation and is not subject to the refund procedures contained in this article. If blended with other nonexempt motor fuels, the nonexempt portion of the blended fuel must be taxed as prescribed by law.
(B) The sale of fuels exempt from tax under Section 12-28-710(A)(17) must be documented and reported to the department by the supplier of renewable fuel according to procedures prescribed by the department."
D.1. Section 12-28-110(39) of the 1976 Code is amended to read:
"(39) 'Motor fuel' means gasoline, diesel fuel, renewable fuel, and blended fuel."
D.2. Section 12-28-110 of the 1976 Code is amended by adding at the end:
"(69) 'Biodiesel' means vegetable or animal based fuels used as a substitute for diesel fuel.
(70) 'Renewable fuel' means liquid nonpetroleum based fuels that can be placed in vehicle fuel tanks and used as a fuel in a highway vehicle. It includes all forms of fuel commonly or commercially known or sold as biodiesel and ethanol."
E. Section 12-28-710(A) of the 1976 Code is amended by adding a new item at the end to read:
"(17) renewable fuel sold from July 1, 2006 through June 30, 2011."
F. Section 12-28-990(A) of the 1976 Code is amended to read:
"(A) Each person blending materials on which the user fee has not been paid including blendstocks, additives, and fuel grade ethanol renewable fuels with motor fuels subject to the user fee as to which the user fee has been paid or accrued shall remit the user fee imposed by this chapter."
G. Except where otherwise provided, this SECTION takes effect upon approval by the Governor.
SECTION 37.A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3587. (A) There is allowed as a tax credit against the income tax liability of a taxpayer imposed by this Chapter an amount equal to twenty-five percent of the costs incurred by the taxpayer in the installation of a solar energy heating or cooling system, or both, in a building owned by the taxpayer. The tax credit allowed by this section must not be claimed before the completion of the installation, and must be claimed for the year that the costs are incurred. The amount of the credit may not exceed three thousand five hundred dollars or fifty percent of the taxpayer's tax liability for that taxable year, whichever is less. If the amount of the credit exceeds three thousand five hundred dollars, the taxpayer may carry forward the excess for up to ten years.
(B) 'System' includes all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the conversion of solar energy for heating or cooling. The term 'system' does not include any land or structural elements of the building such as walls and roofs or other equipment ordinarily contained in the structure."
B. This SECTION takes effect upon approval by the Governor and applies to installation costs incurred in taxable years beginning on or after January 1, 2006.
SECTION 38. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:
"Section 12-6-3620. (A) For taxable years beginning after 2006, there is allowed a tax credit against the tax imposed pursuant to Section 12-6-530 for twenty-five percent of the costs incurred by a taxpayer for use of methane gas taken from a landfill to provide power for a manufacturing facility.
(B) The tax credit allowed by this section may not exceed fifty percent of the liability of the taxpayer for the tax imposed pursuant to Section 12-6-530. Unused credits may be carried forward for ten years.
(C) For purposes of this section, manufacturing facility is as defined in Section 12-6-3360(M)(5)."
SECTION 39.A. Section 12-37-224 of the 1976 Code, as added by Act 114 of 1999, is amended to read:
"Section 12-37-224. A motor home on which the interest portion of indebtedness is deductible pursuant to the Internal Revenue Code as an interest expense on a qualified primary or second residence is also a primary or second residence for purposes of ad valorem property taxation in this State and is considered real property rather than personal property for property tax purposes. By ordinance, the governing body of a county may extend the provisions of this section to a boat that meets the same qualifications required for motor homes pursuant to this section."
B. Article 5, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-712. In addition to any other provisions of law subjecting boats and boat motors to property tax in this State:
(1) A boat, including its motor if separately taxed, used in interstate commerce having a tax situs in this State and at least one other state is subject to property tax in this State. The value of such a boat must be determined based on the fair market value of the boat multiplied by a fraction representing the number of days present in this State. The fraction is determined by dividing the number of days the boat was present in this State by three hundred and sixty-five days. A boat used in interstate commerce must be physically present in this State for thirty days in the aggregate in a property tax year to become subject to ad valorem taxation.
(2) A boat, including its motor if the motor is separately taxed, which is not currently taxed in this State and is not used exclusively in interstate commerce, is subject to property tax in this State if it is present within this State for sixty consecutive days or on ninety days in the aggregate in a property tax year. Upon written request by a tax official, the owner must provide documentation or logs relating to the whereabouts of the boat in question. Failure to produce requested documents creates a rebuttable presumption that the boat in question is taxable within this State."
C. This SECTION takes effect upon approval by the Governor and applies for property tax years beginning after 2005.
SECTION 40. Section 12-37-712 of the 1976 Code, as added by Act 145 of 2005, is amended to read:
"Section 12-37-712. A marina must provide immediate access to its business records and premises to city, county, and state tax authority employees for the purpose of making a property tax assessment. For the purposes of this section, 'marina' means a facility that provides mooring or dry storage for watercraft on a leased or rental basis, and 'business records' means only the name and billing address of the person leasing or renting space for a boat in a marina, as well as the make, model, and year, if available."
SECTION 41. Except as otherwise provided elsewhere in this act, this act takes effect upon approval of the Governor. /
Renumber sections to conform.
Amend title to conform.
Rep. COTTY explained the amendment.
Rep. TRIPP raised the Point of Order that Amendment No. 1 was out of order in that it was not germane to the Bill.
SPEAKER HARRELL overruled the Point of Order.
Rep. COTTY continued speaking.
The amendment was then adopted.
Rep. VAUGHN proposed the following Amendment No. 2 (Doc Name COUNCIL\AGM\18465MM06), which was adopted:
Amend the bill, as and if amended, by adding a new SECTION appropriately numbered to read:
/ SECTION __. A. Article 1, Chapter 37, Title 12 of the 1976 Code is amended by adding:
"Section 12-37-140. With respect to millage imposed to service general obligation debt incurred by a political subdivision or a school district of this State and the calculation of the limits on bonded indebtedness imposed on political subdivisions and school districts pursuant to Article X, Sections 14 and 15 of the Constitution of this State, when a complete or partial successor-in-interest to, or other transferee of, the political subdivision or school district or other associate of any kind of a political subdivision or school district, undertakes all or a portion of the operation or assumes all or a portion of a duty of the political subdivision or school and in so doing incurs debt, that debt is deemed general obligation debt of the political subdivision or school district."
B. The provisions of this section apply with regard to all transfers made after June 30, 2006, to which Section 12-37-140 of the 1976 Code, as added by this section, applies. /
Renumber sections to conform.
Amend title to conform.
Rep. VAUGHN explained the amendment.
Rep. RUTHERFORD raised the Point of Order that Amendment No. 2 was out of order in that it was not germane to the Bill.
Rep. VAUGHN argued contra.
SPEAKER HARRELL overruled the Point of Order.
Rep. SKELTON moved to table the amendment.
Rep. VAUGHN demanded the yeas and nays which were taken, resulting as follows:
Those who voted in the affirmative are:
Agnew Allen Anderson Bowers Branham Breeland G. Brown J. Brown R. Brown Clyburn Emory Govan J. Hines M. Hines Hiott Hodges Hosey Mack McLeod Miller J. H. Neal Rivers Rutherford Scott Skelton J. E. Smith Weeks Whipper
Those who voted in the negative are:
Altman Bailey Bales Ballentine Barfield Battle Bingham Brady Cato Chalk Chellis Clark Clemmons Coates Coleman Cooper Cotty Dantzler Davenport Delleney Duncan Edge Frye Funderburk Haley Hamilton Hardwick Harrell Harrison Harvin Hinson Huggins Jefferson Kirsh Leach Limehouse Littlejohn Loftis Lucas Mahaffey Martin McCraw McGee Merrill Moody-Lawrence Neilson Norman Ott Owens Phillips Pinson E. H. Pitts Rhoad Rice Sandifer Scarborough Simrill Sinclair D. C. Smith G. M. Smith G. R. Smith J. R. Smith Stewart Talley Thompson Toole Townsend Tripp Umphlett Vaughn Vick Walker White Whitmire Witherspoon Young
So, the House refused to table the amendment.
The amendment was then adopted.
Rep. JENNINGS proposed the following Amendment No. 3 (Doc Name COUNCIL\BBM\9498HTC06), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION. __. A. Section 4-12-30(B)(1) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(1) Title to the property must be held by the county. In the case of a project located in an industrial development park, as defined in Section 4-1-170, title may be held by more than one county, if each county is a member of the industrial development park. Any real property transferred to the county through a lease agreement must include a legal description and plat of the real property. Property titled in the name of a county pursuant to this section is considered privately-owned for purposes of Section 58-3-240."
B. Section 4-29-67(B)(1) of the 1976 Code, as last amended by Act 69 of 2003, is further amended to read:
"(1) Title to the property must be held by the county. In the case of a project located in an industrial development park as defined in Section 4-1-170, title may be held by more than one county, if each county is a member of the industrial development park. Real property transferred to the county through a lease agreement must include a legal description and plat of the real property. Property titled in the name of a county pursuant to this section is considered privately-owned for purposes of Section 58-3-240." /
Renumber sections to conform.
Amend title to conform.
Rep. JENNINGS explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. COTTY, with unanimous consent, it was ordered that S. 1065 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 985 (Word version) -- Senators Leatherman, Leventis and Pinckney: A BILL TO AMEND SECTION 6-1-530(B) OF THE 1976 CODE, RELATING TO THE USE OF REVENUE FROM THE LOCAL ACCOMMODATIONS TAX, TO PROVIDE THAT A COUNTY WHICH COLLECTS ONE HUNDRED THOUSAND DOLLARS IN ACCOMMODATIONS TAXES MAY USE THE REVENUE COLLECTED FOR THE OPERATION AND MAINTENANCE OF THE ITEMS LISTED IN SECTION 6-1-530(A) AND POLICE, FIRE PROTECTION, EMERGENCY MEDICAL SERVICES, AND EMERGENCY-PREPAREDNESS OPERATIONS DIRECTLY ATTENDANT TO THOSE FACILITIES.
Rep. UMPHLETT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 572 (Word version) -- Senators Leatherman and Setzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-35-25 SO AS TO PROVIDE THAT THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE SUPERSEDES ANY OTHER CONFLICTING LAW; BY ADDING SECTION 11-35-3850 SO AS TO REDESIGNATE THE FORMER SECTION 11-35-4020 PROVIDING FOR THE SALE OF UNSERVICEABLE MATERIALS AND EQUIPMENT BY A GOVERNMENTAL BODY; BY ADDING SECTION 11-35-4420 SO AS TO PROVIDE THAT THE CHIEF PROCUREMENT OFFICER AND THE AFFECTED LOCAL GOVERNMENTAL BODY HAVE THE OPPORTUNITY TO PARTICIPATE FULLY IN MATTERS PENDING BEFORE OR APPEALED FROM THE PROCUREMENT REVIEW PANEL; TO AMEND SECTIONS 11-35-40, 11-35-45, 11-35-210, 11-35-310, 11-35-410, 11-35-450, 11-35-510, 11-35-540, 11-35-710, 11-35-810, 11-35-820, 11-35-830, 11-35-845, 11-35-1030, 11-35-1210, 11-35-1220, 11-35-1230, 11-35-1240, 11-35-1410, 11-35-1510, 11-35-1520, ALL AS AMENDED, SECTIONS 11-35-1525 and 11-35-1528; AND SECTIONS 11-35-1530, 11-35-1550, 11-35-1560, 11-35-1575, 11-35-1825, 11-35-2010, 11-35-2030, 11-35-2210, 11-35-2410, 11-35-2440, 11-35-2710, 11-35-2720, 11-35-3020, 11-35-3030, 11-35-3040, 11-35-3060, 11-35-3220, 11-35-3230, 11-35-3240, 11-35-3245, 11-35-3410, 11-35-3510, 11-35-3820, 11-35-3840, 11-35-4210, 11-35-4220, 11-35-4230, 11-35-4340, 11-35-4410, 11-35-5220, 11-35-5230, 11-35-5240, 11-35-5260, AND 11-35-5270, ALL AS AMENDED, ALL RELATING TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, SO AS TO, AMONG OTHER THINGS, DELETE REFERENCES TO THE OFFICE OF GENERAL SERVICES OR DIVISION OF GENERAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD AND REPLACE THEM WITH THE TERMS "CHIEF PROCUREMENT OFFICER", "DESIGNATED BOARD OFFICE", OR "DESIGNATED BOARD OFFICER", AND TO PROVIDE FURTHER THAT THE CHIEF EXECUTIVE OFFICER OF THE BUDGET AND CONTROL BOARD DESIGNATE THE APPROPRIATE OFFICE OR SUBDIVISION OF THE BOARD OR OFFICER OR POSITION OF THE BOARD; TO REPLACE REFERENCES OF PROCUREMENT REQUIREMENTS FOR "GOODS AND SERVICES" WITH "SUPPLIES, SERVICES, AND INFORMATION TECHNOLOGY", REFINE AND CONFORM VARIOUS COMPETITIVE BIDDING MODES, TO INCREASE MAXIMUM DOLLAR THRESHOLDS IN SEVERAL INSTANCES, TO REDUCE THE POTENTIAL BIDDERS TO BE RANKED IN CERTAIN CONSTRUCTION CONTRACTS FROM FIVE TO THREE, TO REDUCE THE CONTRACT AMOUNT ALLOWING WAIVER OF A BOND AND SECURITY, AND TO ADJUST SMALL PURCHASE THRESHHOLDS AND AGENCY BASELINE CERTIFICATION; TO PROVIDE THAT A GOVERNMENTAL BODY HAVE A GOAL THAT TEN PERCENT OF ITS TOTAL DOLLAR AMOUNT OF PROCUREMENT FUNDS EXPENDED BE WITH A MINORITY BUSINESS ENTERPRISE AND TO INCREASE THE TAX CREDIT FOR DEALING WITH AN MBE TO FIFTY THOUSAND DOLLARS ANNUALLY OVER TEN YEARS; TO SHORTEN THE PROTEST DEADLINE; AND TO PROVIDE THAT THE CHIEF PROCUREMENT OFFICER AND AN AFFECTED GOVERNMENTAL BODY HAVE THE OPPORTUNITY TO PARTICIPATE FULLY IN A REVIEW OR APPEAL OF AN ADMINISTRATIVE OR LEGAL DECISION MADE PURSUANT TO THE PROCUREMENT CODE; TO AMEND SECTION 12-6-3350, RELATING TO TAX CREDITS FOR STATE CONTRACTORS AND SUBCONTRACTORS WITH MINORITY FIRMS, SO AS TO INCREASE THE CREDIT TO FIFTY THOUSAND DOLLARS ANNUALLY FOR TEN YEARS; AND TO REPEAL SUBARTICLE 11 OF ARTICLE 1, CHAPTER 35, TITLE 11 RELATING TO THE ACCEPTANCE OF GIFTS IN KIND OF ARCHITECTURAL AND ENGINEERING SERVICES BY A GOVERNMENTAL BODY; SECTION 11-35-1270, AS AMENDED, RELATING TO AUTHORITY TO CONTRACT FOR CERTAIN SERVICES, AND SUBARTICLE 5 OF ARTICLE 15, CHAPTER 35, TITLE 11 RELATING TO THE CONTINUATION OF CERTAIN PROVISIONS OF LAW.
Rep. COOPER made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
Rep. SINCLAIR moved that the House recur to the Morning Hour, which was agreed to.
On motion of Rep. LITTLEJOHN, with unanimous consent, the following was taken up for immediate consideration:
H. 5128 (Word version) -- Rep. Littlejohn: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR TO THE ATHLETES, COACHES, AND SCHOOL OFFICIALS OF THE BROOME HIGH SCHOOL BOYS TRACK TEAM ON A DATE AND AT A TIME TO BE DETERMINED BY THE SPEAKER TO CONGRATULATE THEM ON CAPTURING THE 2006 AA STATE CHAMPIONSHIP.
Be it resolved by the House of Representatives:
That the members of the South Carolina House of Representatives, by this resolution, extend the privilege of the floor to the athletes, coaches, and school officials of the Broome High School Boys Track Team on a date and at a time to be determined by the Speaker to congratulate them on capturing the 2006 AA State Championship.
The Resolution was adopted.
The following was introduced:
H. 5129 (Word version) -- Rep. Littlejohn: A CONCURRENT RESOLUTION TO CONGRATULATE THE BROOME HIGH SCHOOL BOYS TRACK TEAM OF SPARTANBURG COUNTY ON CAPTURING THE 2006 AA STATE CHAMPIONSHIP AND TO HONOR ITS ATHLETES AND COACHES ON AN OUTSTANDING SEASON.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The Senate sent to the House the following:
S. 1411 (Word version) -- Senator Knotts: A CONCURRENT RESOLUTION TO RECOGNIZE AND HONOR STAFF SERGEANT ROBERT O. BROWN OF IRMO WHO WAS AWARDED THE BRONZE STAR FOR EXCEPTIONALLY MERITORIOUS SERVICE AND HEROIC ACTIONS DURING OPERATION IRAQI FREEDOM.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
The following Joint Resolution was introduced, read the first time, and referred to appropriate committee:
H. 5130 (Word version) -- Rep. Davenport: A JOINT RESOLUTION TO CREATE A STUDY COMMITTEE TO STUDY THE APPROPRIATE ENFORCEMENT OF FEDERAL AND STATE LAWS RELATING TO THE PRESENCE OF ILLEGAL ALIENS IN THIS STATE AND TO RECOMMEND LEGISLATIVE CHANGES AS APPROPRIATE.
Referred to Committee on Judiciary
The following Bill was taken up:
S. 1154 (Word version) -- Senators Fair, Peeler, Verdin, Land, O'Dell, Mescher, Short, Martin, Alexander and Scott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SUBARTICLE 22 TO ARTICLE 30, CHAPTER 7, TITLE 20 OF THE 1976 CODE SO AS TO ENACT THE "INTERSTATE COMPACT FOR JUVENILES" WHICH, AMONG OTHER THINGS, PROVIDES FOR AN INDEPENDENT COMPACT OPERATING AUTHORITY TO ADMINISTER ONGOING COMPACT ACTIVITY, GUBERNATORIAL APPOINTMENTS OF REPRESENTATIVES FOR ALL MEMBER STATES ON A NATIONAL GOVERNING COMMISSION, RULE-MAKING AUTHORITY, A MANDATORY FUNDING MECHANISM SUFFICIENT TO SUPPORT ESSENTIAL COMPACT OPERATIONS, AND COLLECTION OF STANDARDIZED INFORMATION; AND TO REPEAL SUBARTICLE 21, ARTICLE 30, CHAPTER 7, TITLE 20, RELATING TO THE INTERSTATE COMPACT ON JUVENILES.
Rep. TRIPP made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 3187 (Word version) -- Reps. Rice, Owens, Loftis, Vaughn, G. R. Smith, Hinson, Viers and Clark: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 16 TO TITLE 59 SO AS TO ESTABLISH THE SOUTH CAROLINA VIRTUAL CHARTER SCHOOL DISTRICT, PROVIDE THAT IT MUST BE GOVERNED BY A BOARD OF TRUSTEES, PROVIDE ITS POWERS AND DUTIES, PROVIDE FOR THE STUDENTS' SUPERVISION AND THE STUDENTS' DUTIES, PROVIDE FOR THE DISTRICT'S TEACHERS AND FUNDING, PROVIDE A TAX CREDIT FOR AN INDIVIDUAL OR A CORPORATION THAT MAKES A DONATION TO THE DISTRICT, PROVIDE THAT THE DISTRICT MAY NOT LEVY ADDITIONAL TAXES OR ISSUE BONDS WITHOUT THE APPROVAL OF THE GENERAL ASSEMBLY, AND PROVIDE THAT THE BOARD OF TRUSTEES OF THE DISTRICT MAY PROMULGATE REGULATIONS.
The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GJK\21225SD06), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ Section 1. Title 59 of the 1976 Code is amended by adding:
Section 59-16-10. The General Assembly finds that:
(1) through the use of technology South Carolina can create educational opportunities for the students of this State that may not exist without such technology; and
(2) using technology to deliver instruction can provide effective alternatives for credit recovery, meeting graduation requirements, resolving scheduling conflicts, delivering curriculum content when there is a shortage of certified personnel, providing a more flexible and individualized instructional pace, and offering low-incidence courses.
It is the purpose of the General Assembly in this chapter to establish the South Carolina Virtual School Program to ensure consistent high quality education for the students of South Carolina utilizing technology-delivered courses.
Section 59-16-15. (A) The State Board of Education is authorized to establish the South Carolina Virtual School Program to provide South Carolina students access to distance, online, or virtual learning courses offered for Carnegie credit. The South Carolina Virtual School Program shall not award a South Carolina High School diploma.
(B) Any public, private, or home school student residing in South Carolina who is twenty-one years of age or younger shall be eligible to enroll in the South Carolina Virtual School Program. However, public school students shall be given enrollment priority. A private school or home school student enrolled in the South Carolina Virtual School Program shall not be entitled to any rights, privileges, courses, activities, or services available to a public school student other than receiving appropriate Carnegie credit for a completed course.
(C) Students may be awarded a maximum of two online Carnegie credits in a school year, and no more than ten online Carnegie credits throughout high school. However, the State Board of Education may establish an appeals process whereby students may be granted a waiver to exceed the established limit.
(D) Local school districts shall accurately transcribe a student's final numeric grade to the student's permanent record and transcript. Home school students and private school students shall receive a certificate of completion indicating date, course, and final numeric grade from the South Carolina Virtual School Program or an entity approved by the State Board of Education.
(E) Students enrolled in an on-line course for Carnegie credit shall be administered appropriate state assessments in a proctored environment.
(F) It is not the responsibility of the school, district, or State to provide home computer equipment and Internet access for enrollment in courses provided by the South Carolina Virtual School Program. However, nothing in this section shall prohibit a school or district from providing home computer equipment or Internet access to students enrolled in the South Carolina Virtual School Program.
Section 59-16-20. (A) The South Carolina Virtual School Program shall be housed in and managed by the State Department of Education. The department may contract for distance learning courses, develop courses, or approve courses submitted by entities.
(B) Each course offered for Carnegie credit shall be reviewed for correlation with the state adopted academic standards prior to being offered.
(C) All distance, online, or virtual learning courses offered for Carnegie credit must be aligned with the state adopted academic standards, include appropriate course materials, and be approved by the State Board of Education.
(D) Instructors must hold a valid teaching certificate in each course being taught or receive approval from the State Department of Education to teach the course.
(E) All Virtual School teachers must receive appropriate pre-service and in-service training pertaining to the organization, classroom management, technical aspects, monitoring of student assessment, and other pertinent training from the State Department of Education.
Section 59-16-30. As used in this chapter:
(1) 'Distance learning' means the acquisition of knowledge and skills through mediated information and instruction, encompassing all technologies and other forms of learning at a distance. Distance learning includes online and virtual courses.
(2) 'Online learning' means learning delivered by web-based or internet-based technologies.
(3) 'Proctored' means directly monitored by an adult authorized by the South Carolina Virtual School.
(4) 'Virtual classroom' means the online learning space where students and instructors interact.
Section 59-16-40. The State Board of Education shall develop guidelines and promulgate regulations to include, but may not be limited to, the following:
( 1) procedures and criteria to be used for the selection of online courses to be offered for Carnegie credit;
( 2) qualifications and registration requirements of students who may enroll in online courses;
( 3) procedures for private and home school students to enroll in courses offered;
( 4) teacher qualifications and the student-to-teacher ratio for online courses;
( 5) appropriateness and provisions for charging tuition and fees;
( 6) procedures for establishing uniform evaluation of student progress and awarding of the final grade;
( 7) process for maintaining student records and reporting and recording grades on the student's transcript;
( 8) procedures and requirements for employment, supervision, and evaluation of teachers;
( 9) procedures and requirements for supervision, monitoring, assessment, and evaluation of enrolled students; and
(10) student expectations.
Section 59-16-50. The State Department of Education shall examine the feasibility of providing services of the South Carolina Virtual School Program to students enrolled in adult education programs and shall make recommendations to the General Assembly no later than January 1, 2007.
Section 59-16-60. Annually the State Board of Education shall provide the General Assembly a report that shall include, but not be limited to, the following information:
( 1) list of courses offered through the Virtual School;
( 2) number of local school districts and number of the district students participating in the Virtual School;
( 3) private schools and number of the private school students participating in the Virtual School;
( 4) number of home school students participating in the Virtual School;
( 5) student success rates for students by courses enrolled in the Virtual School;
( 6) number of students who dropped a course and reasons for dropping;
( 7) expenditures made for the Virtual School; and
( 8) number of students unable to enroll because of space limitations."
SECTION 2. Chapter 40, Title 59 of the 1976 Code is amended by adding:
"Section 59-40-65. (A) If the governing body of a charter school offers as part of its curriculum a program of online or computer instruction this information shall be included in the application and the governing body shall be required to:
( 1) provide each student enrolled in the program with a course or courses of online or computer instruction approved by the State Board of Education that must meet or exceed the South Carolina content and grade specific standards. Students enrolled in the program of online or computer instruction must receive all instructional materials required for the student's program;
( 2) ensure that the persons who operate the program on a day-to-day basis comply with and carry out all applicable requirements, statutes, regulations, rules, and policies of the charter school;
( 3) ensure that each course or courses offered through the program shall be taught by a teacher meeting the requirements of Section 59-40-50;
( 4) ensure that a parent or legal guardian of each student verifies the number of hours of educational activities completed by the student each school year;
( 5) adopt a plan by which it will provide frequent, ongoing monitoring to ensure and verify that each student is participating in the program, including at least two proctored assessments per semester in core subjects administered in the charter school, verification of ongoing student attendance in the program, and verification of ongoing student progress and performance in each course as documented by ongoing assessments and examples of student coursework; and
( 6) administer to all students in a proctored setting at the charter school all applicable assessments as required by the South Carolina Education Accountability Act.
(B) Nothing in this section shall prohibit a charter school that provides a program of online or computer instruction from reimbursing families of enrolled students for costs associated with their Internet connection for use in the program.
(C) A charter school shall provide no more than seventy-five percent of a student's core academic instruction in grades kindergarten through twelfth grade via an online or computer instruction program.
(D) Charter school students may enroll in the South Carolina Virtual School Program pursuant to program requirements."
SECTION 3. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
Rep. WALKER explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
Rep. TOWNSEND asked unanimous consent that H. 3187 (Word version) be read a third time tomorrow.
Rep. KENNEDY objected.
The following Bill was taken up:
S. 772 (Word version) -- Senator Mescher: A BILL TO AMEND SECTION 56-5-3650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTORCYCLE FOOTRESTS, HANDLEBARS, AND REAR VIEW MIRRORS, SO AS TO DELETE THE PROVISION THAT SPECIFIES THE SIZE AND POSITION OF A MOTORCYCLE'S HANDLEBARS.
Rep. TRIPP made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 1100 (Word version) -- Senator Ryberg: A BILL TO AMEND SECTIONS 56-15-350, 56-16-180, AND 56-19-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DENIAL, SUSPENSION, OR REVOCATION OF A DRIVER'S LICENSE, AND AN APPLICATION FOR A CERTIFICATE OF TITLE FOR A MOTOR VEHICLE, SO AS TO REVISE A REFERENCE TO A PROVISION OF FEDERAL LAW.
Rep. TRIPP made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 1133 (Word version) -- Senators Alexander, Bryant, Martin, Malloy, Mescher, Lourie, Gregory and Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-3870 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A MOTOR VEHICLE TO BE EQUIPPED WITH OR FOR THE OPERATOR OF A MOTOR VEHICLE TO EMPLOY A RADAR OR LASER JAMMING DEVICE, AND TO PROVIDE A PENALTY.
Rep. TRIPP made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 1287 (Word version) -- Senator Verdin: A BILL TO AMEND SECTION 56-23-85, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DRIVER INSTRUCTOR PERMITS, SO AS TO PROVIDE THAT PRIVATE HIGH SCHOOL INSTRUCTORS ARE NOT REQUIRED TO PAY A FEE FOR A DRIVER INSTRUCTOR PERMIT.
Rep. OWENS made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
On motion of Rep. SINCLAIR, with unanimous consent, the following Bill was ordered recalled from the Committee on Judiciary:
S. 925 (Word version) -- Senators Pinckney and Ford: A BILL TO AMEND CHAPTER 61, TITLE 15, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-61-25, RELATING TO PARTITIONS, SO AS TO GIVE ONE OR MORE OF THE JOINT TENANTS OR TENANTS IN COMMON THE RIGHT OF FIRST REFUSAL TO PURCHASE THE SUBJECT PROPERTY BEFORE ITS JUDICIAL PARTITION.
Rep. DUNCAN asked unanimous consent to recall H. 3753 (Word version) from the Committee on Medical, Military, Public and Municipal Affairs.
Rep. J. BROWN objected.
Rep. KIRSH asked unanimous consent to recall H. 5050 (Word version) from the Committee on Education and Public Works.
Rep. COOPER objected.
The following Bill was taken up, read the third time, and ordered sent to the Senate:
H. 4932 (Word version) -- Reps. Cotty and Clark: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 3 TO CHAPTER 152 OF TITLE 59 SO AS TO PROVIDE FOR A FULL-DAY, FOUR-YEAR-OLD PREKINDERGARTEN PROGRAM FOR AT-RISK CHILDREN TO BE ADMINISTERED BY FIRST STEPS, TO PROVIDE FOR THE CURRICULUM, TO PROVIDE FOR THE COLLECTION OF DATA REGARDING THE PROGRAM, TO PROVIDE FOR AN EVALUATION FOR THE PROGRAM, AND TO PROVIDE THAT THE FIRST STEPS TO SCHOOL READINESS BOARD OF TRUSTEES SHALL PROMULGATE REGULATIONS; AND TO DESIGNATE SECTIONS 59-152-10 THROUGH 59-152-160 AS ARTICLE 1, FIRST STEPS.
The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments:
S. 680 (Word version) -- Senators Sheheen and Ryberg: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-41-295 SO AS TO PROVIDE THAT GASOLINE AND DIESEL FUEL MAY BE DISPENSED AT UNATTENDED SERVICE STATIONS IF THE DISPENSING DEVISE HAS AN AUTOMATIC SHUT-OFF VALVE THAT IS ACTIVATED WHEN THE SALE REACHES FIFTY DOLLARS.
The following Concurrent Resolution was taken up:
S. 1402 (Word version) -- Senator Short: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERCHANGE LOCATED AT EXIT NUMBER 55 ALONG INTERSTATE HIGHWAY 77 IN CHESTER COUNTY THE "SOLICITOR JOHN R. JUSTICE INTERCHANGE" AND ERECT APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE THAT CONTAIN THE WORDS "SOLICITOR JOHN R. JUSTICE INTERCHANGE".
Whereas, the Honorable John R. Justice received both his Bachelor of Science and Juris Doctorate degrees from the University of South Carolina; and
Whereas, he was a member of the South Carolina Army National Guard from 1967 to 1992 and retired with the rank of Lieutenant Colonel; and
Whereas, he was elected to serve in the South Carolina House of Representatives in 1970 and 1972; and
Whereas, he was elected as Solicitor for South Carolina's Sixth Judicial Circuit in 1978 and has served as circuit solicitor continuously in this office since then; and
Whereas, Solicitor Justice has been a member of the Solicitors' Association of South Carolina, Inc., since 1978 and has been a past president of this association; and
Whereas, he has served as president of the National District Attorneys' Association, Chairman of the Board of the National College of District Attorneys, and currently is Chairman of the Board of Regents of the National College of District Attorneys; and
Whereas, he is married to the former Gracy Long, and together they are the proud parents of three daughters; and
Whereas, it is fitting and proper to recognize the outstanding service that Solicitor John R. Justice has provided the people of South Carolina by having an interchange in his native Chester County named in his honor. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That the members of the General Assembly, by this resolution, request that the Department of Transportation name the interchange located at Exit Number 55 along Interstate Highway 77 in Chester County "Solicitor John R. Justice Interchange" and erect appropriate markers or signs at this interchange that contain the words "Solicitor John R. Justice Interchange".
Be it further resolved that a copy of this resolution be forwarded to the Department of Transportation.
The Concurrent Resolution was adopted and sent to the Senate.
The following Concurrent Resolution was taken up:
S. 1369 (Word version) -- Senator Williams: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF HIGHWAY 76 IN MARION COUNTY, FROM THE PEE DEE RIVER BRIDGE TO THE HIGHWAY 301 BRIDGE "REPRESENTATIVE MACK T. HINES HIGHWAY", AND TO ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS STREET THAT CONTAIN THE WORDS "REPRESENTATIVE MACK T. HINES HIGHWAY".
Whereas, Representative Hines was born in Claussen, South Carolina, the eldest son of Mrs. Susanna Hines and the late Mr. Mack T. Hines, Sr. He is a graduate of Wilson High School in Florence, South Carolina; Allen University with a Bachelor's degree; Morris College with a Bachelor of Divinity degree, and his Doctor of Ministry degree from Hood Theological Seminary; and
Whereas, Representative Hines began his career as a teacher in Florence School District One, where he worked for twelve years, and currently serves as pastor of the historical Saint Paul Baptist Church in Mullins, South Carolina; and
Whereas, Reverend Hines works in the community championing the cause of young people to pursue education. He is the Co-Chairman of the Wilsonian Clergy, where he has helped to organize ministers to raise funds each year for students who have excelled each year academically, but lack financial resources to further their education. Toward this effort, he has helped raise almost $200,000; and
Whereas, Representative Hines is active within the community. He is Vice-Moderator of the Pee Dee Baptist Association, Vice-Moderator of the Florence and affiliated Counties Union, President of the Mullins Area Ministerial Alliance, charter member of the Little Pee Dee Manor, a low income housing complex for senior citizens, past member of the Board of Trustees of Morris College, and a life member of the NAACP. When he is not chairing boards or presiding over his congregation, he operates the Transitional Shelter for the homeless, organizes the advisory board for the community, and has helped raise more than $200,000 for the homeless; and
Whereas, under his dynamic leadership, Saint Paul's congregation is booming in fellowship, parents are dedicating babies, families are being happily joined in union, and numerous families have received comfort and consolation in hours of bereavement and distress. The standard of worship has been greatly enriched by his fervent and dynamic preaching, and by the deep sense of reverence injected by his leadership; and
Whereas, the outreach of the church has expanded, old auxiliaries have been reactivated, new auxiliaries organized, church improvements and additions completed, the Christian Life Center and Adult Day Health Care Center added to the church ministries, and plans are in the works for an apartment complex to house the elderly and disabled; and
Whereas, serving the people of Florence and Marion counties has always been a priority. Representative Hines has diligently served the people of South Carolina as a member of the South Carolina House of Representatives, District 59, since 1995; and
Whereas, it is fitting and proper for the members of the General Assembly to create a lasting memorial in honor of one of the Palmetto State's finest citizens. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That the members of the General Assembly request that the Department of Transportation name the portion of Highway 76 in Marion County, from the Pee Dee River Bridge to the Highway 301 Bridge "Representative Mack T. Hines Highway" and erect appropriate markers or sign along this street that contain the words "Representative Mack T. Hines Highway".
Be it further resolved that a copy of this resolution be forwarded to Representative Mack T. Hines of Darlington, South Carolina.
Rep. LEACH explained the Resolution.
The Concurrent Resolution was adopted and sent to the Senate.
The motion period was dispensed with on motion of Rep. CATO.
Rep. MCLEOD moved to adjourn debate upon the following Joint Resolution until Tuesday, May 16, which was adopted:
H. 4977 (Word version) -- Reps. Cato, Sandifer, Cooper, Barfield, Mitchell, Anthony, Chellis, Delleney, Duncan, Edge, Harrison, Harvin, Jefferson, Jennings, Kennedy, Leach, Mahaffey, McCraw, Norman, Ott, Perry, Rice, Scott, Sinclair, F. N. Smith, J. E. Smith, W. D. Smith, Talley, Townsend, Tripp, Vick, Walker, White and Witherspoon: A JOINT RESOLUTION TO CREATE A STUDY COMMITTEE TO EXAMINE THE FEASIBILITY OF NATURAL GAS EXPLORATION IN THE ATLANTIC OCEAN OFF THE COAST OF SOUTH CAROLINA, TO PROVIDE FOR ITS COMPOSITION, APPOINTMENT, POWERS, DUTIES, AND RESPONSIBILITIES, AND TO REQUIRE THE COMMITTEE TO MAKE A REPORT ON ITS RECOMMENDATIONS TO THE GENERAL ASSEMBLY BEFORE JANUARY 13, 2007 AT WHICH TIME IT IS DISSOLVED.
Rep. DUNCAN moved that the House do now adjourn, which was agreed to.
At 11:46 a.m. the House, in accordance with the motion of Rep. STEWART, adjourned in memory of Everett Eynon, Jr., of Aiken, to meet at 10:00 a.m. tomorrow.
This web page was last updated on Wednesday, June 24, 2009 at 9:44 A.M.