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A. Section 12-7-1220 (A) through (G) of the 1976 Code, as last amended by Section 136A, Part II, Act 497 of 1994, are further amended to read:

"(A) Annually by December thirty-first, using the most current data available from the South Carolina Employment Security Commission and the United States Department of Commerce, the Department of Revenue and Taxation shall rank and designate the state's counties as provided in this section. The sixteen counties in this State having a combination of the highest unemployment rate and lowest per capita income for the most recent thirty-six-month period with equal weight being given to each category are designated less developed counties. The fifteen counties in the State with a combination of the next highest unemployment rate and next lowest per capita income for the most recent thirty-six-month period with equal weight being given to each category are designated moderately developed counties. The fifteen counties in the State with a combination of the lowest unemployment rate and the highest per capita income for the most recent thirty-six-month period with equal weight being given to each category are designated developed counties. Corporations Taxpayers which create new full-time jobs qualify for the appropriate tax credit as provided in subsections (B), (C), and (D). The designation by the Department of Revenue and Taxation is effective for corporate tax years which begin

(B) Corporations Taxpayers operating manufacturing, tourism, processing, warehousing, distribution, research and development, and corporate office facilities in counties designated by the commission department as less developed are allowed a job tax credit for taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7, Title 38 equal to one thousand dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding in the applicable county for the taxable year with the corresponding period of the prior taxable year. Only those corporations taxpayers that increase employment by ten or more in a less developed county are eligible for the credit. Credit is not allowed during the five years if the net employment increase falls below ten. The appropriate commission agency shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of ten.

(C) Corporations Taxpayers operating manufacturing, tourism, processing, warehousing, distribution, research and development, and corporate office facilities in counties that have been designated by the commission department as moderately developed are allowed a job tax credit for taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7, Title 38 equal to six hundred dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees in the applicable county subject to South Carolina income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those corporations taxpayers that increase employment by eighteen or more in a county that has been designated moderately developed are eligible for the credit. The credit is not allowed during the five years if the net employment increase falls below eighteen. The appropriate commission agency shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of eighteen.

(E) Tax credits for five years for the taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7, Title 38 must be awarded for additional new full-time jobs created by corporations taxpayers qualified under subsections (B), (C), (D), and (I). Additional new full-time jobs must be determined by subtracting highest total employment of the corporation taxpayer during years two through six, or whatever portion of year two through six completed, from the total increased employment. The appropriate commission agency shall adjust the credit allowed for employment fluctuations during the additional five years of credit.

(F) The merger, consolidation, or reorganization of a corporation taxpayer where tax attributes survive does not create new eligibility in a succeeding corporation taxpayer, but unused job tax credits may be transferred and continued by the succeeding corporation taxpayer. In addition, a corporation taxpayer may assign its rights to its jobs tax credit to another corporation taxpayer if it transfers all, or substantially all, of the assets of the corporation taxpayer or all, or substantially all, of the assets of a trade or business or operating division of a corporation taxpayer related to the generation of the jobs tax credits to that corporation taxpayer if the required number of new jobs is maintained for that amount of credit. No corporation taxpayer is allowed a jobs tax credit if the net employment increase for that corporation taxpayer falls below ten for a less developed county, eighteen for a moderately developed county, or fifty for a developed county. The Department of Revenue and Taxation

(G) A credit claimed under this section but not used in a taxable year may be carried forward for ten years from the close of the tax year in which the credit is earned by the corporation taxpayer. However, the credit established by this section taken in one tax year must be limited to an amount not greater than fifty percent of the taxpayer's state corporate income tax or premium tax liability which is attributable to income or premiums derived from operations in the State for that year."

B. Section 12-7-1220(H)(3) of the 1976 Code, as added by Act 175 of 1989, is amended to read:

"(3) `Corporation Taxpayer' means a sole proprietor, partnership, corporation of any classification, limited liability company, or association taxable as a business entity which is subject to South Carolina taxes as contained in Section Sections 12-7-210 and 12-7-230 and Chapter 7, Title 38."

C. Section 12-7-1220(J) of the 1976 Code, as added by Section 97A, Part II, Act 164 of 1993, is amended to read:

"(J) (1) If a corporation qualifies to use the fee in lieu of property taxes provided in Section 4-29-67 and fails to qualify for a credit under this section solely because it is an S corporation, then each of the shareholders of the S corporation qualifies for a nonrefundable credit against taxes imposed pursuant to Section 12-7-210.

(2) The amount of the credit allowed a shareholder by this subsection is equal to the shareholder's percentage of stock ownership for the taxable year multiplied by the amount of the credit the corporation would have been entitled to if it were not an S corporation.

(3) A credit claimed under this subsection but not used in a taxable year may be carried forward for ten years from the close of the tax year in which the credit is earned by the S corporation. However, the credit established by this section taken in one tax year may not exceed fifty percent of the taxpayer's tax liability under Section 12-7-210.

In addition to those credits allowed under subsections (B), (C), and (D) of this section:

(1) A corporation, partnership, or limited liability company that qualifies for a credit under this section as an S corporation, partnership, or limited liability company, entitles each shareholder of the S corporation, partner of the partnership, or member of the limited liability

(3) A credit claimed under this subsection but not used in a taxable year may be carried forward for ten years from the close of the tax year in which the credit is earned by the S corporation, partnership, or limited liability company. However, the credit established by this section taken in one tax year may not exceed fifty percent of the taxpayer's tax liability under Section 12-7-210."

D. This section takes effect July 1, 1995./

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Rep. D. SMITH explained the amendment.

The amendment was then adopted.

Reps. D. SMITH and ROBINSON proposed the following Amendment No. 311 (Doc Name L:\council\legis\amend\BBM\10008AC.95), which was adopted.
Amend the bill, as and if amended, Part II, by striking beginning on line 1, and inserting:
TO AMEND SECTION 50-11-20, AS AMENDED, OF THE 1976 CODE, RELATING TO THE MIGRATORY WATERFOWL COMMITTEE, SO AS TO REVISE THE COMMITTEE MEMBERS AND PROVIDE FOR THE USE OF FUNDS DERIVED FROM THE SALE OF MIGRATORY WATERFOWL STAMPS AND STAMP PRINTS.

A. Section 50-11-20 of the 1976 Code, as last amended by Section 1262, Act 181 of 1993, is further amended to read:

"Section 50-11-20. (A) As used in this article:

(1) `Board' means the governing body of the South Carolina Department of Natural Resources.

(2) `Committee' means the Migratory Waterfowl Committee.

(3) `Department' means the South Carolina Department of Natural Resources.

(4) `Migratory waterfowl' means members of the family `Anatidae', including brants, ducks, geese, and swans.

(C) The committee is responsible for the creation of the annual migratory waterfowl stamp provided in Section 50-9-155, shall provide the design to the department, and shall recommend regulations to the department for the creation of migratory waterfowl stamp prints, their administration, sale, and distribution, and other matters relating to the stamps and their prints. If the committee sells any of the stamps, it shall purchase them from the department for five dollars and fifty cents a stamp, all of which is retained by the department must be credited to the General Fund of the State. Funds derived from the The proceeds from the sale of prints and related artwork must be expended also must be credited to the General Fund of the State. An amount equal to the proceeds from the sale of these items shall be appropriated to the department and a portion of the funds appropriated to the department for other operating expenses of the Conservation, Education and Communications Division must be expended as follows:

(1) An amount equal to the portion of the funds necessary to make up fifty percent of the total funds derived from the sale of the migratory waterfowl stamps and the migratory waterfowl stamp prints must be transferred by the committee to the department to be used by the department for its specified projects. The projects may include, but are not limited to, projects which promote the propagation of waterfowl in South Carolina.

(2) Except for the amount necessary for the committee to administer and promote the sale of any prints, stamps, or related articles, an amount

(3) The committee shall have an annual audit of its finances conducted by the State Auditor and shall furnish a copy to the board."

B. This section takes effect July 1, 1995./
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Rep. D. SMITH explained the amendment.

Rep. SHEHEEN raised the Point of Order that Amendment No. 311 was out of order as it was not germane in that it did not relate to revenue in Part I. He further stated that Page 3 stated that it must be credited in the general fund but it had to already be added in Part I.

Rep. D. SMITH argued contra the Point in stating that they did take the money and run it through the general fund.

Rep. ROBINSON stated that on Page 4 it referred to Part I in stating that a portion of the funds appropriated for other operating expenses in the conservation, education and communications divisions and it spelled out how they were to be expended and it was under Part I under the Department of Natural Resources.

The SPEAKER stated that it did direct money and how it should be spent on Page 306, Line 38.

Rep. SHEHEEN stated that it only swapped the funds and the substantial effect was to reconstitute the composition of the committee.

The SPEAKER stated in being consistent with other rulings the key would be to tie it back into Part I making it directly relate to revenues or an appropriation reflected therein.

Rep. RICHARDSON stated that people were paid per diem and that was out of the general fund and, therefore, it would be germane.

The SPEAKER stated that the amendment needed to directly relate to revenues or an appropriation in Part I.

Rep. D. SMITH stated that this also changed where the money went. He further stated that before it went to the committee and now it went to the general fund.

The SPEAKER stated that it did satisfy the requirements of Rule 5.3 and he overruled the Point of Order.

Rep. SHEHEEN raised the Point of Order that Section A was out of order as it was not germane.

Rep. ROBINSON stated that he understood that it was improper to raise a Point of Order on a subsection.

The SPEAKER stated earlier in the day, there was a Point of Order raised on a subsection of a code section that was itself within a section of the Appropriations Bill and precedents have clearly said that you could not raise a Point on a subsection of the code in those circumstances.

Rep. SHEHEEN stated that he would raise the Point of Order on A and B.

The SPEAKER stated that Section A did not refer back to any appropriations in Part I and he sustained the Point of Order.

Rep. SHEHEEN further raised the Point of Order that Section B was out of order.

Rep. ROBINSON stated that the per diem provision was under Section B.

Rep. HASKINS stated that it was his understanding of the prior ruling that you could not raise a Point of Order on a subsection of a code section. He further stated that what Rep. Sheheen was referring to as B was a subsection under Section 50-11-20 and the entire Bill was one section of the law. He further stated that ruling on Subsection A or B would be the exact same as the ruling of the subsections raised on the Point of Order earlier.

The SPEAKER stated that he had misread it and at the bottom of Page 1 was Section A and Section B was on Page 5 and under the previous ruling earlier, you could make a Point of Order on germaneness on Section A and Section B. He further stated that when the first Point was raised on Section A, that he had looked on Page 2 and saw Subsection A under the section, but that was really a subsection of a code section. He then reversed the earlier ruling on Section A and he overruled the Points of Order for the same reasons he overruled the Point of Order relating to Subsection (B) of the code section.

Rep. KOON spoke in favor of the amendment.

The amendment was then adopted.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 11 was adopted was taken up and rejected.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 31 was adopted was taken up and agreed to.

Reps. RICE, SHISSIAS and CARNELL proposed the following Amendment No. 259 (Doc Name L:\h-wm\legis\amend\TR.225), which was adopted.

Amend the bill, as and if amended, Part IA, Section 31, Department of Mental Health, page 240, line 12, opposite /other operating/ by decreasing the amounts in columns (5) and (6) by /$45,000/

Renumber sections & amend totals/title to conform.

Section 31 as amended was adopted.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 32 was adopted was taken up and agreed to.

Reps. RICE, SHISSIAS and CARNELL proposed the following Amendment No. 258 (Doc Name L:\h-wm\legis\amend\TR.226), which was adopted.

Amend the bill, as and if amended, Part IA, Section 32, Disabilities & Special Needs, page 246, line 24, opposite /other operating/ by decreasing the amounts in columns (5) and (6) by /$45,000/

Renumber sections & amend totals/title to conform.

Section 32 as amended was adopted.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 50 was adopted was taken up.

Rep. H. BROWN moved to table the motion, which was agreed to.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 11 was adopted was taken up and agreed to, by a division vote of 44 to 42.

Rep. QUINN proposed the following Amendment No. 240 (Doc Name L:\h- wm\legis\amend\DH.126), which was adopted.

Amend the bill, as and if amended, Part IB, Section 11, Attorney General, page 391, after line 24, by adding an appropriately numbered paragraph to read /the attorney general's office shall study the legal services available to all state agencies, institutions, boards and commissions including agency counsel, private counsel, and counsel of the attorney general's office and related expenses.

A report based on the study must include, but is not limited to, recommendations to reduce the costs of the services and to spend available monies in the most efficient way possible. The report must be presented to the Chairman of the Senate Finance Committee and House Ways and Means Committee by January 31, 1996. The study ends upon presentation of the report.

The study must be funded as follows:

Fifty thousand dollars appropriated to the Attorney General's Office for Operating Expenses, Section 11, Part IA of the 1995-96 General Appropriations Act/

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Section 11 as amended was adopted.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 17A was adopted was taken up.

Rep. H. BROWN moved to table the motion, which was agreed to.

The motion of Rep. H. BROWN to reconsider the vote whereby Section 18M was adopted was taken up and agreed to.

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