1994 Permanent House Journal Printed Pages 8000-8010 - South Carolina Legislature Online

Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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Printed Page 7990, June 2 | Printed Page 8010, June 2

Printed Page 8000 . . . . . Thursday, June 2, 1994

H. 4820--FREE CONFERENCE POWERS GRANTED

Rep. BOAN 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. 4820
GENERAL APPROPRIATIONS BILL

Rep. J. WILDER moved to instruct the conferees to include a statement that the Barnwell Low-level Waste Site be kept open to waste outside the compact until December 31, 1995, and the funds be used for the renovation of the State House and any remaining funds to be used for school buses and he requested a voice vote on the motion.

POINT OF ORDER

Rep. CROMER raised the Point of Order that the motion was out of order as there had already been a ruling on whether the statement could be placed in the budget report.

The SPEAKER stated that SPEAKER Pro Tempore WILKINS had ruled a similar motion to instruct the conferees out of order and he sustained the Point of Order.

The yeas and nays were taken resulting as follows:

Yeas 97; Nays 22

Those who voted in the affirmative are:

Alexander, M.O.  Alexander, T.C.  Anderson
Askins           Bailey, G.       Bailey, J.
Barber           Baxley           Beatty
Boan             Breeland         Brown, G.
Brown, H.        Brown, J.        Byrd
Canty            Carnell          Chamblee
Cobb-Hunter      Cromer           Delleney
Fair             Farr             Felder
Fulmer           Gamble           Gonzales
Govan            Hallman          Harrell
Harrelson        Harris, J.       Harris, P.
Harrison         Harvin           Harwell
Hines            Holt             Houck
Hutson           Inabinett        Jennings
Keegan           Kelley           Kennedy

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Keyserling       Kinon            Kirsh
Klauber          Koon             Lanford
Law              Marchbanks       Martin
Mattos           McAbee           McCraw
McElveen         McKay            McLeod
McMahand         McTeer           Moody-Lawrence
Neal             Neilson          Phillips
Rhoad            Richardson       Riser
Rogers           Rudnick          Scott
Sharpe           Sheheen          Shissias
Smith, R.        Snow             Spearman
Stille           Stoddard         Stuart
Sturkie          Thomas           Townsend
Trotter          Tucker           Waites
Waldrop          Whipper          White
Wilder, D.       Wilkes           Wilkins
Williams         Witherspoon      Wofford
Worley

Total--97

Those who voted in the negative are:

Allison          Baker            Cato
Clyborne         Cooper           Davenport
Graham           Haskins          Huff
Jaskwhich        Littlejohn       Meacham
Robinson         Simrill          Smith, D.
Stone            Vaughn           Walker
Wells            Wilder, J.       Young, A.
Young, R.

Total--22

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. BOAN, COBB-HUNTER and HALLMAN to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

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STATEMENT FOR HOUSE JOURNAL

I voted against granting Free Conference powers on the Appropriations Bills (H. 4820, H. 4821 and H. 4822) due to the fact the report of Conference contains several items which I cannot support due to their fiscally irresponsible effect, as follows:

1. The reports contain nearly $36,000,000 in projected surplus funds which are not certified by the Board of Economic Advisors.

2. The reports contain no provision to purchase school buses with cash revenues from out of compact waste disposal as passed by the Senate.

3. The reports contain a pay raise for members of the General Assembly in the amount of "In District Expense" compensation, which impacts not only pay, but retirement benefits of members.

4. The General Assembly continues to refuse to impose a policy of "zero- based" budgeting on state agencies, and without that requirement the budget is continuing to grow at a rate which far surpasses the cost of living and is out of control.

Rep. TERRY E. HASKINS

Rep. LEWIS R. VAUGHN

Rep. McMAHAND moved that the House recede until 3:00 P.M., which was adopted.

THE HOUSE RESUMES

At 3:00 P.M. the House resumed, the SPEAKER in the Chair.

POINT OF QUORUM

The question of a quorum was raised.

A quorum was later present.

H. 4691--FREE CONFERENCE POWERS GRANTED

Rep. BOAN 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. 4691 -- Ways and Means Committee: A BILL MAKING APPROPRIATIONS FROM FISCAL YEAR 1992-93 SURPLUS GENERAL FUND REVENUES AND TO REPEAL SECTION 12-47-447, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENT OF TAX REFUNDS.

Printed Page 8003 . . . . . Thursday, June 2, 1994

The yeas and nays were taken resulting as follows: Yeas 92; Nays 10

Those who voted in the affirmative are:

Alexander, M.O.  Alexander, T.C.  Askins
Bailey, G.       Baker            Barber
Baxley           Boan             Breeland
Brown, G.        Brown, H.        Brown, J.
Byrd             Carnell          Cato
Chamblee         Cobb-Hunter      Corning
Cromer           Delleney         Farr
Felder           Fulmer           Gamble
Gonzales         Govan            Hallman
Harrell          Harrelson        Harris, P.
Harrison         Harwell          Hines
Hodges           Houck            Huff
Hutson           Inabinett        Jaskwhich
Jennings         Keegan           Kelley
Kennedy          Keyserling       Kinon
Kirsh            Koon             Littlejohn
Marchbanks       Martin           Mattos
McAbee           McCraw           McElveen
McKay            McLeod           McMahand
McTeer           Meacham          Moody-Lawrence
Neal             Neilson          Phillips
Quinn            Rhoad            Richardson
Riser            Rogers           Rudnick
Scott            Sharpe           Sheheen
Shissias         Smith, R.        Snow
Spearman         Stille           Stoddard
Trotter          Tucker           Waites
Waldrop          Walker           White
Wilder, D.       Wilder, J.       Wilkes
Witherspoon      Wofford          Worley
Wright           Young, R.

Total--92

Those who voted in the negative are:

Allison          Cooper           Davenport
Fair             Graham           Haskins

Printed Page 8004 . . . . . Thursday, June 2, 1994

Stone            Townsend         Vaughn
Wells

Total--10

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

H. 4691--FREE CONFERENCE REPORT ADOPTED FREE CONFERENCE REPORT The General Assembly, Columbia, South Carolina, June 1, 1994

The COMMITTEE OF FREE CONFERENCE, to whom was referred: H. 4691 -- Ways and Means Committee: A BILL MAKING APPROPRIATIONS FROM FISCAL YEAR 1992-93 SURPLUS GENERAL FUND REVENUES AND TO REPEAL SECTION 12-47-447, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENT OF TAX REFUNDS. 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 all after the enacting words and inserting:

/SECTION 1. From fiscal year 1992-93 general fund surplus revenues, there is appropriated from the general fund of the State:

(1) $30,000,000 for the payment of valid state individual income tax refunds due taxpayers pursuant to the agreement settling Bass, et al. v. South Carolina and Perri, et al. v. South Carolina, as such refund claims are determined by the South Carolina Department of Revenue and Taxation under the terms of that agreement.

(2) $2,716,158 to the Division of General Services, State Budget and Control Board, for the State House renovations project.

(3) $2,000,000 to the Department of Corrections for personnel and training costs associated with opening new prisons.

SECTION 2. Section 12-47-447 of the 1976 Code is repealed.

SECTION 3. (A) Section 12-47-440 of the 1976 Code is amended to read:

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"Section 12-47-440. Notwithstanding any other provisions of this Title law, whenever if it shall appear appears to any a taxpayer person that any license fee or tax or fee administered by the department imposed under this Title has been erroneously, improperly, or illegally assessed, collected, or otherwise paid over to the Commission department, the taxpayer person, by whom or on whose behalf the license fee or tax or fee was paid, may make application apply to the Commission department to abate or refund in whole or in part such the license fee or tax or fee. Should If the Commission department, after having given such taxpayer the person a reasonable opportunity to be heard, decline declines to make such the abatement or refund, the taxpayer person may, within thirty days of the date of receipt of notice of the Commission's department's action declining the abatement or refund, bring an action against the Commission department for recovery of the license fee or tax or fee. The provisions of this section shall apply whether or not the license fee or tax or fee in question was paid under protest, but shall are only be available where the application provided for here is made in writing to the Commission department within a period of three years from the date the license fee or tax or fee was due to have been paid, without regard to extensions of time for payment, or if a later date would result, within one year of payment where an additional license fee or tax or fee is assessed and paid. Such The action shall must be brought in the court of common pleas for Richland County except that a resident of this State may elect to bring said the action in the court of common pleas for the county of his residence. A taxpayer or licensee who brings an action provided for in Sections 12-47-210 and 12-47-220 shall be is considered as having elected his remedy and is denied the benefits of this section."

(B) This section takes effect upon approval of this act by the Governor and applies to tax periods beginning in 1990 and thereafter and to tax periods beginning before 1990 only if the claim for refund is one that is under review by the Department of Revenue and Taxation on the effective date of this act and is not a claim for refund arising under or based upon Davis v. Michigan.

SECTION 4. (A) In recognition of the substantial legal issues and uncertain financial liability that confronted the State of South Carolina in Bass v. State of South Carolina and Perri v. State of South Carolina, the General Assembly finds the proposed settlement reached in those cases to be fair and reasonable. By this act, the General Assembly ratifies and approves the terms agreed to in the settlement and pledges the financial resources of the State to implement the terms and conditions of the settlement as approved by the circuit court.

Printed Page 8006 . . . . . Thursday, June 2, 1994

(B) (1) A timely filed claim for refund for any tax year rendering the taxpayer eligible for a refund under the settlement agreement is deemed a timely filed claim for refund for all taxable years to which the settlement agreement applies, except that any additional refunds due a taxpayer as a result of this item for those years for which a claim was not filed must be paid as provided in item (4). No further action is required for any such taxpayer to receive the refund allowed by this item for those years. All protests filed pursuant to the settlement agreement on the issue of which taxable years were included in the taxpayer's claim for refund are extinguished on the effective date of this section.

(2) A taxpayer who failed to timely file a claim for refund for any year as provided in the settlement agreement is nevertheless eligible for a refund if the taxpayer files a claim for refund with the Department of Revenue and Taxation within the extension period. The refund due a taxpayer under this item must be paid as provided in item (4). One claim for refund is sufficient for all applicable years.

(3) The Department of Revenue and Taxation shall place a notice in newspapers of general circulation in this State notifying taxpayers of the provisions of this subsection with special emphasis on the provisions of item (2) and the duration of the extension period. The department shall also provide written notification to each county veterans' affairs offices.

(4) Refunds payable under this subsection must be calculated in the manner provided by law but without interest and must be paid in two equal installments in October, 1995, and October, 1996. After any constitutional requirements are met, the amounts required for these refunds must be the first priority item in appropriations from the Capital Reserve Fund for fiscal years 1994-95 and 1995-96.

(5) The ability to file claim for refunds under this subsection or the extension of claims filed for one year to other years as provided in this subsection is a privilege granted taxpayers as a matter of fairness by the General Assembly and as such normal rules and laws of procedure do not apply in these cases. Therefore, the determination of the validity of any claim for refund filed or deemed to be filed pursuant to this subsection is solely within the jurisdiction of the Department of Revenue and Taxation and its determination is final and not subject to additional administrative or judicial review. A taxpayer who files a claim for refund or who is deemed to have filed a claim for refund under this subsection is ineligible to pursue that claim for refund under any other provision of law.

(6) As used in this subsection:

(a) "Extension period" is the period beginning April 16, 1992, and ending on the fortieth day after the effective date of this section.

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(b) "Claim for refund" for purposes of item (2) is a written communication filed by a taxpayer with the Department of Revenue and Taxation received or bearing a postmark during the extension period which contains information sufficient for the department to identify the taxpayer and determine the validity of the claim. Any claim for refund is deemed to be for taxable years 1985, 1986, 1987, and 1988 to the extent the taxpayer received federal pension income in those years.

(c) "Taxpayer" means an individual who filed South Carolina individual income tax returns in any of the years 1985, 1986, 1987, or 1988 whose South Carolina taxable income included federal pension income. In the case of a deceased taxpayer, the surviving spouse, heirs, or personal representative of the deceased taxpayer entitled to receive the refund allowed by this subsection may file the appropriate claim for refund on behalf of the deceased taxpayer. For purposes of paying refunds in the case of a testate deceased taxpayer, such refunds must be paid to the deceased taxpayer's personal representative. Refunds due an intestate deceased taxpayer under the provisions of this subsection must be paid as provided in subsection (D).

(d) "Refund" means a payment made pursuant to item (4).

(e) "Settlement agreement" means the agreement settling the claims arising under the Bass and Perri cases approved by the court on March 2, 1994.

(C) (1) Notwithstanding the provisions of Section 12-7-2250 of the 1976 Code and Title 62 of the 1976 Code, amounts payable to intestate federal retirees due under the settlement agreement in Bass v. South Carolina and Perri v. South Carolina must be paid pursuant to the terms of the settlement so that the amount owed any intestate deceased federal retiree under the settlement is paid to the deceased retiree's surviving spouse, or if there is no surviving spouse, to the then living children of the retiree in equal shares and if there are no children, to the general fund of the State. This refund by the State, directly to the surviving spouse or then living children operates as a complete acquittal and discharge to the State of liability from any suit, claim, or demand of any nature by any heir, distributee, creditor of the decedent, or any other person. An heir or beneficiary of the intestate deceased retiree who does not receive any portion of the refund hereunder has no claim against any other heir or beneficiary who does receive a portion or all of the refund hereunder.

(2) To conform with the settlement agreement and notwithstanding the provisions of Section 12-7-2260 of the 1976 Code, if checks issued to any federal retirees under the agreement are returned to the Department of Revenue and Taxation as undeliverable, the department shall supply to

Printed Page 8008 . . . . . Thursday, June 2, 1994

class counsel for the federal retirees a list of those federal retirees for whom checks are undelivered, with class counsel having one year from the date of the check to deliver the check to the retiree, surviving spouse, or living children, and upon failure to deliver, the funds represented by the checks must be paid to the general fund of the State with the state's liability extinguished from any future suit, claim, or demand by the retiree, the retiree's surviving spouse, children, or estate. The actions of any party taken pursuant to the authority contained in this subsection are not considered in violation of Sections 12-7-1680 or 12-54-240(A) of the 1976 Code.

(D) Refunds paid pursuant to subsection (B) on behalf of an intestate deceased taxpayer must be paid as provided in subsection (C) and are subject to the terms and conditions provided in subsection (C) except that the refund amounts are as calculated under subsection (B)(4) and the Department of Revenue and Taxation shall perform the functions assigned to class counsel in subsection (C).

SECTION 5. The appropriations authorized in this act for fiscal year 1993-94 are authorized to be carried forward and expended for the same purposes in fiscal year 1994-95.

SECTION 6. The borrowing authority and limitation of thirty-five million dollars set forth in Section 1-1-1020 of the 1976 Code, as amended, is increased to thirty-five million five hundred thousand dollars beginning on the effective date of this section and ending December 31, 1995. The five hundred thousand dollar increase in borrowing authority is to be used exclusively for initiating the State House Renovation Project which shall include, but not be limited to, payment of architectural and engineering fees and the costs associated with the transition of State House occupants to, location of, and renovation of an alternate location. All funds borrowed under this authorization must be repaid, with interest, in a lump-sum payment as soon as monies are made available through a regular or supplemental appropriation authorization.

SECTION 7. In the case of a statewide public official appointed by the Governor with the advice and consent of the Senate whose term expired in June, 1992, and who continues to serve on a holdover basis on the effective date of this act, the time to make the irrevocable retirement incentive election authorized pursuant to Section 17P.6, Part I, Act 164 of 1993 is extended for a period ending June 30, 1994, if the agency with which the official is associated agrees to the extension. All other requirements of Section 17P.6, Part I, Act 164 of 1993 apply with respect to the eligibility of such an official for the retirement incentive.

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SECTION 8. In the case of an employee retiring by July 1, 1994, as a result of the need to deal with a severe family hardship arising after November 1, 1993, the time to make the irrevocable retirement incentive election authorized pursuant to Section 17P.6, Part I, Act 164 of 1993 is extended for a period ending June 30, 1994, but this extension applies only if the employee's agency head approves the extension and determines that such a hardship has arisen.

SECTION 9. Act 164 of 1993, the general appropriations act for fiscal year 1993-94, is amended by deleting paragraph 3.54 of Part I.

SECTION 10. Except where otherwise stated, this act takes effect upon approval by the Governor./

Amend title to read: /TO APPROPRIATE FISCAL YEAR 1992-93 SURPLUS GENERAL FUND REVENUES AND ALLOW THESE APPROPRIATIONS TO BE CARRIED FORWARD AND EXPENDED FOR THE SAME PURPOSE IN FISCAL YEAR 1994-95; TO AMEND SECTION 12-47-440, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAX ABATEMENTS OR REFUNDS FROM THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO PROVIDE THAT THESE REFUND PROVISIONS APPLY TO ANY TAX OR FEE ADMINISTERED BY THE DEPARTMENT, TO RATIFY THE TERMS OF THE SETTLEMENT OF THE BASS AND PERRI CASES, TO PROVIDE FOR STATE INDIVIDUAL INCOME TAX REFUNDS FOR CERTAIN FEDERAL RETIREES TO BE PAID IN TWO EQUAL INSTALLMENTS IN 1995 AND 1996 AND PROVIDE THE TERMS AND CONDITIONS UNDER WHICH THESE REFUNDS MUST BE CLAIMED AND PAID, TO PROVIDE FOR THE PAYMENT OF REFUNDS PAID TO INTESTATE DECEDENTS PURSUANT TO THE SETTLEMENT AGREEMENT AND THIS ACT, TO INCREASE TEMPORARILY THE BORROWING AUTHORITY FROM THE INCOME RESERVE FUND UNDER THE INSTALLMENT PURCHASE PROGRAM FOR INITIATING THE STATE HOUSE RENOVATION PROJECT, TO EXTEND THE RETIREMENT INCENTIVE ELECTION PERIOD IN THE CASE OF CERTAIN APPOINTED STATEWIDE OFFICIALS AND IN CERTAIN HARDSHIP CASES; TO AMEND ACT 164 OF 1993, THE GENERAL APPROPRIATIONS ACT FOR FISCAL YEAR 1993-94, BY DELETING PARAGRAPH 3.54 OF PART I, SO AS TO ELIMINATE THE TRANSFER OF LEGISLATIVE BRANCH CARRIED FORWARD APPROPRIATIONS TO THE GENERAL FUND

Printed Page 8010 . . . . . Thursday, June 2, 1994

OF THE STATE; AND TO REPEAL SECTION 12-47-447 OF THE 1976 CODE, RELATING TO PAYMENT OF TAX REFUNDS./

/s/Senator John Drummond/s/Rep. William D. Boan /s/Senator J. Verne Smith/s/Rep. Harry M. Hallman, Jr. /s/Senator Phil P. Leventis/s/Rep. Gilda Cobb-Hunter

On Part of the Senate.On Part of the House.

Printed Page 7990, June 2 | Printed Page 8010, June 2

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