Journal of the House of Representatives
of the Second Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 9, 1996

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| Printed Page 190, Jan. 16 | Printed Page 210, Jan. 17 |
Printed Page 200 . . . . . Tuesday, January 16, 1996
Further proceedings were interrupted by expiration of time on the uncontested Calendar, the pending question being consideration of Amendment No. 1.

RECURRENCE TO THE MORNING HOUR

Rep. HARRELL moved that the House recur to the morning hour, which was agreed to.

INTRODUCTION OF BILLS

The following Bills were introduced, read the first time, and referred to appropriate committees:

H. 4447 -- Reps. Meacham, Simrill, Young-Brickell, Vaughn, Allison, Davenport, Rice, Easterday, Haskins and Lee: A BILL TO AMEND SECTION 59-63-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESIDENCY AND OTHER ELIGIBILITY REQUIREMENTS OF CHILDREN TO ATTEND PUBLIC SCHOOLS, SO AS TO DELETE A PROVISION ALLOWING A CHILD TO ATTEND A PUBLIC SCHOOL IN A PARTICULAR DISTRICT IF THE CHILD OWNS CERTAIN REAL ESTATE IN THE DISTRICT; AND TO AMEND SECTION 59-63-31, RELATING TO ADDITIONAL QUALIFICATIONS FOR ATTENDANCE AT PUBLIC SCHOOLS, SO AS TO CONFORM A REFERENCE IN THE SECTION TO THE REVISED PROVISIONS OF SECTION 59-63-30.

Referred to Committee on Education and Public Works.

H. 4448 -- Reps. Hallman, Cooper, Quinn, Seithel, Limehouse, Fulmer, Whatley, Young-Brickell and S. Whipper: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 54-7-100, SO AS TO ESTABLISH THE HUNLEY COMMISSION TO NEGOTIATE WITH THE UNITED STATES GOVERNMENT ON BEHALF OF THE STATE OF SOUTH CAROLINA CONCERNING THE SUBMARINE H.L. HUNLEY TO ENSURE THAT THE SUBMARINE AND ANY HUMAN REMAINS LOCATED IN IT REMAIN IN SOUTH CAROLINA IN PERPETUITY AND ARE DISPLAYED IN AN APPROPRIATE MANNER FOR THE BENEFIT OF FUTURE GENERATIONS.

Referred to Committee on Judiciary.

Printed Page 201 . . . . . Tuesday, January 16, 1996
H. 4397--DEBATE ADJOURNED

Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 1.

H. 4397 -- Reps. Wilkins, Huff, Sharpe, H. Brown, D. Smith, Cato, Townsend, Haskins, J. Brown, Littlejohn, Herdklotz, Hutson, J. Young, Jennings, Simrill, Bailey, Harrell, Allison, Law, Walker, Gamble and Richardson: A BILL ENACTING THE ECONOMIC DEVELOPMENT INDUSTRIAL CLUSTER ACT OF 1996, BY AMENDING THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-6-3480, 38-7-190, AND 12-10-45 SO AS TO ALLOW CERTAIN INCOME TAX CREDITS TO BE APPLIED AGAINST INSURANCE PREMIUM TAX LIABILITIES AND VICE VERSA AND TO PROVIDE FOR THE DESIGNATION OF ADDITIONAL ENTERPRISE ZONES IN THE CASE OF PROJECTS OF QUALIFYING TIRE MANUFACTURERS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO EXTEND THE TAX CREDIT CARRY FORWARD PERIOD FROM TEN TO FIFTEEN YEARS; TO AMEND SECTION 12-10-70, RELATING TO ADDITIONAL TAX CREDITS ALLOWED IN ENTERPRISE ZONES AND OTHER SITUATIONS RELATED TO SOCIO-ECONOMIC STATUS, SO AS TO EXTEND THESE PROVISIONS TO QUALIFYING TIRE MANUFACTURERS AND ALLOW THE QUALIFICATION OF A PERCENTAGE OF TRANSFERRED EMPLOYEES AS NEW EMPLOYEES IN THE CASE OF AN ELIGIBLE TIRE MANUFACTURER; TO AMEND SECTION 12-10-80, RELATING TO THE JOB DEVELOPMENT FEES ALLOWED QUALIFYING BUSINESSES, SO AS TO CLARIFY THE STATUS OF THE FEES IN THE EVENT OF DISQUALIFICATION AND PROVIDE ADDITIONAL CIRCUMSTANCES UNDER WHICH JOB DEVELOPMENT FEES MAY BE EXPENDED; TO AMEND SECTION 12-14-30, RELATING TO DEFINITIONS UNDER THE ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT OF 1995, SO AS TO PROVIDE ADDITIONAL ELIGIBILITY FOR QUALIFYING FOR THE BENEFITS ALLOWED IN THE ACT; TO AMEND SECTION 12-21-2423, AS AMENDED, RELATING TO THE RETENTION OF A PORTION OF ADMISSIONS LICENSE TAXES FOR MAJOR TOURISM OR RECREATION PROJECTS, SO AS TO CLARIFY THE APPLICATION OF THE PROVISION ALLOWING THE RETENTION OF THESE TAX REVENUES; AND TO AMEND SECTION 12-37-930, AS AMENDED, RELATING TO VALUATION

Printed Page 202 . . . . . Tuesday, January 16, 1996
OF PROPERTY AND ALLOWABLE DEPRECIATION OF PROPERTY FOR PURPOSES OF PROPERTY TAXATION, SO AS TO ALLOW A HIGHER DEPRECIATION RATE FOR RUBBER PRODUCTS AND ALLOW A LOWER DEPRECIATION LIMIT FOR QUALIFYING TIRE MANUFACTURERS.

The Ways and Means Committee proposed the following Amendment No. 1 (Doc Name P:\amend\GJK\22199HTC.96).

Amend the bill, as and if amended, by striking Sections 3 and 4 and inserting:

/SECTION 3. A. Article 25, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-3480. (A) Notwithstanding any other provision of law:

(1) Any credits under Title 38 may be applied against any taxes imposed under this chapter or license fees imposed under Chapter 20 of this title.

(2) Any credits under this chapter which are earned by one member of a controlled group of corporations may be used and applied by that member and by any other members of the controlled group of corporations.

(3) Any limitations upon the total amount of liability for taxes or license fees that can be reduced by the use of a credit must be computed before any other credit is used to reduce any tax or license fee liability under this chapter or Chapter 20 of this title. Subject to item (4), the taxpayer may apply any credits arising under this chapter in any order the taxpayer elects.

(4) No credit may be sued more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them.

(5) As used in this section:

(a) the term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A), only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);

(b) the term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.

B. This section is effective for tax years beginning after 1995."

SECTION 4. A. Chapter 20, Title 12 of the 1976 Code, as added by Act 76 of 1995, is amended by adding:

Printed Page 203 . . . . . Tuesday, January 16, 1996
"Section 12-20-105. License fees may be reduced by credits as provided in Section 12-6-3410 or Section 12-6-3480, or both of these sections.

B. This section is effective for tax year beginning after 1995."

SECTION 5. A. Chapter 7, Title 38 of the 1976 Code is amended by adding:

"Section 38-7-190. (A) Notwithstanding any other provision of law:

(1) Any credits under Chapter 6 of Title 12 may be applied against any taxes, license fees, and other assessments imposed under this title.

(2) Any credits under this title which are earned by one member of a controlled group of corporations may be used and applied by that member and any other members of the controlled group of corporations.

(3) Any limitations upon the total amount of liability for taxes that can be reduced by the use of a credit must be computed before any credit is used to reduce any tax liability under this title. Subject to item (4), the taxpayer may apply any credits arising under this title in any order the taxpayer elects.

(4) No credit can be used more than once, and all credits must be used, to the extent possible in any given year, first by the company that earned them, and second against the tax which generated them.

(5) As used in this section:

(a) The term `controlled group of corporations' has the same meaning as provided under Section 1563 of the Internal Revenue Code without regard to Section 1563(a)(4), (b)(2)(A) only with respect to corporations which are in existence for less than one-half the number of days in the tax year referred to therein, and (b)(2)(C) and (D);

(b) The term `tax credit' or `credit' means a statutorily directed or authorized reduction in the tax liability made after any applicable tax rates are applied.

B. This section is effective for tax years beginning after 1995."/

Amend further, by striking Section 12-10-70(1)(b), as contained in Section 7, page 5, and inserting:

/(b) If the business is a tire manufacturer that has a capital investment in this State which exceeds one billion dollars and employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed, the qualifying business is entitled to the jobs tax credit for the period and in the amount provided in Section 12-7-1220(B) 12-6-3360(C)(1); in addition, a qualifying business is entitled to an additional five hundred dollars a year tax credit in the third, fourth, and fifth year of any AFDC recipient's continued employment with the qualifying business, based on the status of the employee at the time of

Printed Page 204 . . . . . Tuesday, January 16, 1996
beginning employment. Except as stated below, a new job is not considered a new job for the purpose of this credit if it replaces the same job that was part of a reduction in force in the preceding twelve months. A tire manufacturer may qualify as new jobs up to ninety percent of the employees transferred from an existing project in the State to one of up to three new projects approved by the council if:

(i) the tire manufacturer has a capital investment in this State which exceeds one billion dollars, as defined in Section 12-10-45;

(ii) the tire manufacturer employs more than five thousand employees in this State at all times during the tax year for which the credit is claimed;

(iii) the tire manufacturer makes a capital investment in excess of five hundred million dollars in this State over the five-year period beginning on the stipulated date; and

(iv) the council and the tire manufacturer enter into a revitalization agreement that, among other provisions:

(A) clearly defines the three new projects,

(B) limits the credit for transferred jobs to jobs that were either backfilled by other new hires in the State or the transfer was needed to retain an employee's employment in the State,

(C) includes a provision for an audit by the Department of Revenue and Taxation to ensure that the credit for transferred employees is only allowed for employees transferred for valid business reasons from projects in operation in the State on the stipulated date to one of the three defined new projects, and

(D) no credit will be allowed for employees transferred solely to obtain the credit./

Amend further, Section 12-10-80(A), as contained in Section 8A, page 6, line 17, by striking /April fifteenth/ and inserting /June thirtieth/ so that when amended Section 12-10-80(A) reads:

"(A) Upon certification by the council to the department of the council's determination that a business is a qualifying business, a qualifying business may collect a job development fee by retaining an amount of employee withholding permitted by subsection (C) or (D), or both but not both, for the purposes permitted by subsection (B) or (D), respectively. The amount retained is the property of the business, subject to all of the conditions in this section including the later possible requirement that the funds be transferred to this State as withholding and the possible forfeiture of the funds to this State as misappropriated withholding. The retained withholding withheld must be maintained in an escrow account with a bank which is insured by the Federal Deposit

Printed Page 205 . . . . . Tuesday, January 16, 1996
Insurance Corporation. To the extent the money is not used as permitted by subsection (B) or (D), it must be treated as misappropriated employee withholding. Employee withholding may not be retained from an employee whose job was created in this State before the entry of the qualifying business into a revitalization agreement. If a qualifying business retains employee withholding under this section, it shall make its payroll books and records available for inspection by the council and the department at the times the council and the department request. Each qualifying business retaining employee withholding under this section shall file with the council and the department the information and documentation respecting the retention and use of the employee withholding according to the revitalization agreement. Each qualifying business which retains in excess of ten thousand dollars in any calendar year shall furnish an audited report prepared by an independent certified public accountant which itemizes the sources and uses of the funds. The audited report must be filed with the council and the department no later than June thirtieth following the calendar year of the retention. Each qualifying business retaining employee withholding under this section is allowed a credit against the withholding tax liability provided in Chapter 9 of this title otherwise owed to the State, the credit not to exceed the lesser of the amount of such tax or the aggregate amount of employee withholding retained. No employer may withhold an amount that results in any employee ever receiving a smaller amount of wages on either a weekly or on an annual basis than the employee would otherwise receive in the absence of this chapter."

Amend further, by inserting an appropriately numbered penultimate section to read:

/SECTION . As used in the amendments to Section 12-10-70(1)(b) contained in this act, the phrase "stipulated date" means the general effective date of this act and the Code Commissioner in the preparation of the cumulative supplement to the Code of Laws of South Carolina, 1976, is directed to delete the phrase "stipulated date" and insert the calendar date that is the general effective date of this act./

Renumber sections to conform.

Amend title to conform.

Rep. COBB-HUNTER spoke upon the amendment.

Rep. HARRELL moved to adjourn debate upon the Bill until Wednesday, January 17, which was adopted.

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H. 4449--ADOPTED

The following was taken up for immediate consideration:

H. 4449 -- Rules Committee: A HOUSE RESOLUTION TO SET BY SPECIAL ORDER H.4397, RELATING TO THE ECONOMIC DEVELOPMENT INDUSTRIAL CLUSTER ACT OF 1996, FOR SECOND READING OR OTHER CONSIDERATION ON WEDNESDAY, JANUARY 17, 1996, IMMEDIATELY FOLLOWING THIRD READING OF STATEWIDE UNCONTESTED BILLS AND TO PROVIDE FOR THE CONTINUING SPECIAL ORDER CONSIDERATION OF H.4397 UNTIL THIRD READING OR OTHER DISPOSITION.

Be it resolved by the House of Representatives:

That H.4397, relating to the Economic Development Industrial Cluster Act of 1996, is set by special order for second reading or other consideration on Wednesday, January 17, 1996, immediately following third reading of statewide uncontested bills and continuing each legislative day immediately following the call of third reading of statewide uncontested bills until H.4397 is given third reading or it is otherwise disposed of.

Rep. HUFF explained the Resolution.

The Resolution was adopted.

H. 3879--DEBATE ADJOURNED

Rep. WITHERSPOON moved to adjourn debate upon the following Bill until Wednesday, January 17, which was adopted.

H. 3879 -- Rep. Witherspoon: A BILL TO AMEND SECTION 50-3-315, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEPUTY ENFORCEMENT OFFICERS OF THE NATURAL RESOURCES ENFORCEMENT DIVISION OF THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO REVISE THEIR AUTHORITY, POWERS, AND REQUIREMENTS.

H. 3532--DEBATE ADJOURNED

Rep. HARRISON moved to adjourn debate upon the following Bill until Wednesday, January 17, which was adopted.

H. 3532 -- Reps. Wright, H. Brown, Cato, Cooper, Fulmer, Harvin, Harwell, Keegan, Knotts, Koon, Wilkins and A. Young: A BILL TO

Printed Page 207 . . . . . Tuesday, January 16, 1996
AMEND TITLE 52, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AMUSEMENTS, GAMES, AND ATHLETIC CONTESTS BY ADDING CHAPTER 19 SO AS TO ESTABLISH IMMUNITY FROM LIABILITY FOR INJURIES OR DEATH TO A PERSON ENGAGED IN A ROLLER SKATING ACTIVITY CAUSED BY AN INHERENT RISK OF ROLLER SKATING.

H. 4408--RECALLED AND REFERRED TO

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

On motion of Rep. J. BROWN, with unanimous consent, the following Bill was recalled from the Committee on Medical, Military, Public and Municipal Affairs and was referred to the Committee on Education and Public Works.

H. 4408 -- Rep. Clyburn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-545 SO AS TO PROVIDE THAT IT IS THE RESPONSIBILITY OF THE SCHOOL DISTRICT IN WHICH A CHILD IS PLACED IN FOSTER CARE OR OTHER LIVING ARRANGEMENTS TO PROVIDE FOR THE CHILD'S EDUCATION AND TO PROVIDE AN EXCEPTION.

S. 879--RECALLED FROM LEGISLATIVE COUNCIL

On motion of Rep. MARCHBANKS, with unanimous consent, the following Bill was ordered recalled from Legislative Council.

S. 879 -- Senators Martin and Alexander: A BILL TO AMEND SECTION 7-7-450, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VOTING PRECINCTS FOR PICKENS COUNTY, SO AS TO CONSOLIDATE THE UNIVERSITY PRECINCT AND THE FORT HILL PRECINCT IN PICKENS COUNTY INTO A SINGLE PRECINCT ENTITLED THE "FORT HILL" PRECINCT.

H. 4424--RECALLED AND REFERRED TO

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

On motion of Rep. TOWNSEND, with unanimous consent, the following Concurrent Resolution was recalled from the Committee on Invitations and Memorial Resolutions and was referred to the Committee on Education and Public Works.

Printed Page 208 . . . . . Tuesday, January 16, 1996
H. 4424 -- Rep. Rice: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME A PORTION OF SOUTH CAROLINA HIGHWAY 123 IN GREENVILLE COUNTY FROM WHITE HORSE ROAD TO PENDLETON STREET IN HONOR OF JOSEPH JEFFERSON WOFFORD "SHOELESS JOE" JACKSON.

REGULATION NO. 1904--RECALLED AND REFERRED TO

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

On motion of Rep. TOWNSEND, with unanimous consent, the following regulation was recalled from the Committee on Ways and Means and was referred to the Committee on Education and Public Works.

Regulation No. 1904

REGULATION NO. 1905--RECALLED AND REFERRED TO

THE COMMITTEE ON EDUCATION AND PUBLIC WORKS

On motion of Rep. TOWNSEND, with unanimous consent, the following regulation was recalled from the Committee on Ways and Means and was referred to the Committee on Education and Public Works.

Regulation No. 1905

STATEMENT BY REP. HUFF

Rep. HUFF, with unanimous consent, made a statement relative to his resignation as a member of the House of Representatives.

Rep. HASKINS moved that the House do now adjourn, which was adopted.

ADJOURNMENT

At 1:25 P.M. the House in accordance with the motion of Rep. TRIPP adjourned in memory of Nicholas Camerato and Brandon Hatsell of Simpsonville, to meet at 2:00 P.M. tomorrow.

* * *

Printed Page 209 . . . . . Wednesday, January 17, 1996
Wednesday, January 17, 1996

(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 2:00 P.M.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

Lord, You know how impatient we so often are. We want it all, and we want it right now. We confess that this breeds all sorts of unrest within us. We are afraid that we will run out of time before we get all that we want. Grant us then, good Lord, the virtue of patience: patience with You and with others. Help us to see that our schedule may be quite different from Yours, and that all that You have to give to us will be given in Your good time. Capture us completely in the knowledge of Your wisdom and lead us to respond in praise and thanksgiving.

Grant us to know that when we serve others we are serving You. 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.

MOTION ADOPTED

Rep. STODDARD moved that when the House adjourns, it adjourn in memory of W. Cecil Garrett of Laurens, which was agreed to.

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