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Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:

/SECTION 1. Section 40-17-55, as added by Section 1, Act 78 of 1991, is amended to read:

"Section 40-17-55. (A) A person or corporation desiring to carry on operate a private detective business in this State shall register with the division. The division may register a person who has not:

(1) been convicted of a felony or crime involving moral turpitude.

(2) committed an act constituting dishonesty or fraud must obtain a Private Detective Business License from the State Law Enforcement Division (SLED). SLED may grant a license to a person or head of a corporation who files a verified application and who:

(1) has obtained a high school diploma or its equivalent;

(2) is at least twenty-one years of age;

(3) is a citizen of the United States;

(4) has not been convicted of a felony or a crime involving moral turpitude, even if pardoned for the disqualifying offense;

(5) is not a person with a record of mental illness that has not been restored to legal capacity;

(6) is not a veteran who has received less than an honorable discharge from military service; and

(7) is a person having had at least three years experience:
(a) as a private investigator;

(b) with a licensed private investigative agency;

(c) as a staff legal investigator; or

(d) as an investigator with a federal, state, county, or municipal law enforcement agency.

(B) The application for registration licensure must be made in writing, under oath, on a form furnished by the division. The application must state the applicant's full name, age, date and place of birth, residences and employment within the past five years, and present occupation with the names and addresses of employers, the date and place of conviction of a

(C) A private detective employed by a Private Detective Business License holder must:

(1) have a high school diploma or its equivalent;

(2) be at least eighteen years of age;

(3) be a citizen of the United States;

(4) not have been convicted of a felony or crime involving moral turpitude, even if pardoned for the disqualifying offense;

(5) not be a person with a record of mental illness that has not been restored to legal capacity; and

(6) not be a veteran who has received less than an honorable discharge from military service.

(D) A person registered as a private detective before this act becomes effective, who applies for a Private Detective Business License, is not required to meet the conditions contained in subsection (A)(1), (7), and that part of (4) which does allow a pardon."

SECTION 2. Section 16-23-20(1) of the 1976 Code, as last amended by Section 3, Act 85 of 1995, is further amended to read:

"(1) Regular, salaried law enforcement officers and reserve police officers of a municipality or county of the State, uncompensated Governor's constables, law enforcement officers of the federal government or other states when they are carrying out official duties while in this State, and deputy enforcement officers of the Natural Resources Enforcement Division of the Department of Natural Resources, and retired commissioned law enforcement officers employed as private detectives or private investigators."

SECTION 3. This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Addison G. "Joe" Wilson .......... /s/Herbert Kirsh
/s/William H. O'Dell .......... /s/Annette Young-Brickell
/s/Robert W. Hayes .......... /s/Michael Stewart "Mickey" Whatley

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

Rep. KIRSH explained the Conference Report.

The following Bill was read the third time, passed and, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

S. 941 -- Senators Wilson, Lander, Leventis and Reese: A BILL TO PROMOTE MAJOR GENERAL T. ESTON MARCHANT TO THE RANK OF LIEUTENANT GENERAL OF THE SOUTH CAROLINA ARMY NATIONAL GUARD EFFECTIVE JANUARY 10, 1995.

The following Bill was taken up.

S. 913 -- Senators Passailaigue, Ford, McConnell, Reese, Washington and Rose: A BILL TO AMEND SECTION 12-7-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

Rep. SHARPE proposed the following Amendment No. 2 (Doc Name P:\amend\GJK\22905SD.96), which was ruled out of order.

Amend the bill, as and if amended, by adding new SECTIONS appropriately numbered to read:

\SECTION . Section 12-36-910(B)(1) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(1) gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry-cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin-operated laundromats and dry-cleaning machines; provided, that beginning June 30, 1997, the sales tax shall not apply to these services in the manner provided in Section 12-36-2120;"

SECTION . Section 12-36-2120 of the 1976 Code is amended by adding an appropriately numbered item to read:

(a) two percent of the gross proceeds of such sales are exempt beginning June 30, 1997;

(b) four percent of the gross proceeds of such sales are exempt beginning June 30, 1998; and

(c) five percent of the gross proceeds of such sales beginning June 30, 1999.

The term `laundry, dry-cleaning, dyeing, and pressing services' as used in this item does not include coin-operated laundromats and dry-cleaning machines which are exempt from the sales tax as provided in Section 12-36-910 and shall continue to be so exempt after the effective date of this item."

SECTION . Section 12-36-2120(24) of the 1976 Code, as last amended by Act 506 of 1994, is further amended to read:

"(24) supplies and machinery used by laundries, cleaning, dyeing, or pressing, or establishments and supplies and machinery used by garment or other textile rental establishments in the direct performance of their primary function, but not sales of supplies and machinery used by coin-operated laundromats;"/

Amend further, as and if amended, by striking SECTION 2 and inserting:

/SECTION 2. This act takes effect upon approval by the Governor, except that the amendments to Section 12-36-2120(24) of the 1976 Code as contained herein take effect July 1, 1998./

Renumber sections to conform.

Amend totals and title to conform.

Rep. SHARPE explained the amendment.

Rep. ROBINSON raised the Point of Order that Amendment No. 2 was out of order as it was not germane in that it related to sales tax and not income tax.

Rep. SCOTT stated that it dealt with taxes within the Department of Revenue.

Rep. SHEHEEN inquired about Amendment No. 1.

The SPEAKER stated that Amendment No. 1 had been withdrawn. He further stated that it was not germane and he sustained the Point of Order and ruled the amendment out of order.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

SECTION 1. Section 12-6-40(A) of the 1976 Code, as added by Act 76 of 1995, is amended to read:

"(A) `Internal Revenue Code' means the Internal Revenue Code of 1986 as amended through December 31, 1994 1995, except as provided in Section 12-6-50."

SECTION 1. This Part may be cited as the "South Carolina Rural Development Act of 1996".

SECTION 2. The General Assembly finds that:

(1) The state's economy is centrally connected. As we increase the wealth-generating capacity of South Carolina's businesses, the state's per capita income will also increase. Success breeds success, and rural locations in the State which promote positive economic development momentum will tend to multiply their successes;

(2) Rural economies, left to themselves, with little incentives for positive investment will remain with little economic development momentum. On the other hand, rural economies with significant incentives to induce capital investment and job creation will strengthen the state's economy and well-being;

(3) The inducement provided in this Part will encourage the creation of jobs which would not otherwise exist and will create sources of tax revenues for the State and its political subdivisions.

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

"Section 12-6-3490. (A) Any company subject to a license tax under Section 12-20-100 may apply for a credit against its tax liability for amounts paid in cash to provide infrastructure for a project qualifying for income tax credits under Chapter 6 of Title 12, withholding tax credits under Chapter 10 of Title 12, income tax credits under Chapter 14 of Title 12, and fees in lieu of property taxes under Chapter 12 of Title 4.

(B) For the purpose of this section `infrastructure' means improvements to a building or the land for water, sewer, gas, steam, electric energy, and communication services which are considered necessary, suitable, or useful to a project qualifying for income tax credits under Chapter 6 of Title 12, withholding tax credits under Chapter 10 of

(1) improvements to both public or private water and sewer systems;

(2) improvements to both public or private electric, natural gas, and telecommunication systems including, but not limited to, ones owned or leased by an electric cooperative, electrical utility, or electric supplier as defined by Chapter 27, Title 58;

(3) fixed transportation facilities including highway, rail, water, and air.

(C) A company is not allowed the credit provided by this section for actual expenses it incurs in the construction and operation of electric system improvements or building electric facilities it owns, leases, manages, or operates.

(D) The maximum aggregate credit that may be claimed in any tax year by a single company is three hundred thousand dollars.

(E) The credits allowed by this section may not reduce the license tax liability of the company below zero. If the applicable credit exceeds the liability and is otherwise deductible under subsection (D) the amount of the excess may be carried forward and deducted in the succeeding taxable year."

SECTION 4. Chapter 10, Title 12 of the 1976 Code is amended by adding:

"Section 12-10-85. (A) Funds received by the department for the State Rural Infrastructure Fund must be deposited in the State Rural Infrastructure Fund of the Council. The fund must be administered by the council for the purpose of providing financial assistance to local governments for:

(1) training costs and facilities;

(2) improvements to regionally-planned public and private water and sewer systems;

(3) improvements to both public and private electricity, natural gas, and telecommunications systems including, but not limited to, an electric cooperative, electrical utility, or electric supplier described in Chapter 27 of Title 58; or

(4) fixed transportation facilities including highway, rail, water, and air.

(B) Rural Infrastructure Fund grants must be available to benefit counties designated as `least developed' or `under developed' as defined in Section 12-6-3360 according to guidelines established by the council. However, up to twenty-five percent of the funds annually available in

(C) For the purposes of this section, `local government' means a municipality organized pursuant to Chapters 7, 9, 11, and 13 of Title 5 or a county organized pursuant to Section 4-9-20(a), (b), (c), or (d).

(D) The council shall submit a report to the Governor and General Assembly by March fifteenth covering activities for the prior calendar year."

SECTION 5. A. Chapter 10, Title 12 of the 1976 Code is amended by adding:

"Section 12-10-88. (A) Subject to the conditions provided in subsection (B), South Carolina individual income tax withholding equal to five percent of all South Carolina wages paid with respect to employees that are employed by a federal employer at a closed or realigned military installation must be remitted by the department to the redevelopment authority vested with authority under Section 31-12-40(A) to oversee the closed or realigned military installation. The amounts of withholding collected and remitted to the applicable redevelopment authority are referred to as `redevelopment fees'.

(B) The department shall remit the redevelopment fees during the period described in subsection (C) for each calendar quarter for which the redevelopment authority provides the department with a timely statement from the federal employer that employs the employees working at the closed or realigned military installation setting forth the number of employees employed at the installation, the total wages paid to these employees, and the total amount of South Carolina withholding withheld from the employees for each quarter. In order to receive the redevelopment fees for the applicable quarter, the redevelopment authority shall submit the statement within thirty days of the later of the date that the federal employer's South Carolina withholding tax return is due or the date the federal employer files the withholding tax return.

(C) Redevelopment fees may be remitted to the applicable redevelopment authority for a period beginning with the date that the applicable redevelopment authority first submits the information described in subsection (B) to the department and ending on the earlier of fifteen years later or January 1, 2015. If the redevelopment authority fails to

(D) Neither the federal employer nor the applicable redevelopment authority is required to meet the requirements of Section 12-10-50 for subsection (A) to apply and the restrictions contained in Section 12-10-80(C) do not apply to redevelopment fees.

(E) For purposes of this section `closed or realigned military installation' means a federal military base or installation in which permanent employment was reduced by three thousand or more jobs after December 31, 1990, and which is closed or realigned under:

(1) the Defense Base Closure and Realignment Act of 1990;

(2) Title 11 of the Defense Authorization Amendments and Base Closure and Realignment Act; or

(3) Section 2687 of Title 10, United States Code."

B. This section is effective for tax years beginning after 1996.

SECTION 6. Chapter 27, Title 58 of the 1976 Code is amended by adding:

"Section 58-27-240. No provision of the South Carolina Rural Development Act of 1996 may be construed to alter, modify, amend, or repeal, directly or by implication, any provision of Chapter 27 of Title 58, Chapter 31 of Title 58, Chapter 33 of Title 58, Chapter 23 of Title 6, Chapter 7 of Title 5, and Chapter 31 of Title 5, governing, among other things, the retail and wholesale distribution and sale of electric energy in this State."

SECTION 7. A. Section 4-12-30(B)(4)(b)(iv) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(iv) for purposes of this section, `controlled group' or `controlled group of corporations' has the meaning provided under Section 1563(a) of the Internal Revenue Code as defined in Chapter 7 6 of Title 12 as of the date of the execution of the inducement agreement without regard to amendments or replacements thereof, and without regard to subsection subsections (a)(4) and (b) of Section 1563."

B. Section 4-12-30(B)(5)(b) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(b) The Board of Economic Advisors shall determine that the purposes to be accomplished by the project are proper governmental and public purposes and that the inducement of the location or expansion of projects within the State is of paramount importance and that the benefits of the project are greater than the costs. In addition to the findings required in subsection (B)(5)(a) above, the county council or county councils, with assistance and advice from the Department or the Board of Economic

C. Section 4-12-30(C) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(C)(1) From the end of the property tax year in which the investor and the county execute an inducement agreement, the investor has five years in which to enter into an initial lease agreement with the county.

(2) From the end of the property tax year in which the investor and the county execute the initial lease agreement, the investor has five years in which to complete its investment for purposes of qualifying for this section. If the investor does not anticipate completing the project within five years, the investor may apply to the county before the end of the five-year period for an extension of time to complete the project. If the county agrees to grant the extension, the county must do so in writing and a copy must be delivered to the department within thirty days of the date the extension was granted. The extension may not exceed two years in which to complete the project. There is no extension allowed for the five-year period in which to meet the minimum level of investment. If the minimum level of investment is not met within five years, all property under the lease agreement or agreements, reverts retroactively to the payments required by Section 4-12-20. The difference between the fee actually paid by the investor and the payment which is due under Section 4-12-20 is subject to interest as provided in Section 12-43-305 12-54-25(D). Any property placed in service after the five-year period, or seven years in the case of a project which has received an extension, is not part of the fee agreement under subsection (D)(2) and is subject to the payments required by Section 4-12-20 if the county has title to the property, or to property taxes as provided in Chapter 37 of Title 12 if the investor has title to the property.
For purposes of those businesses qualifying under subsection (D)(4), the five-year period referred to in this subsection is eight years and the seven year period is ten years.

(3) The annual fee provided by subsection (D)(2) is available for no more than twenty years. For projects which are completed and placed in service during more than one year, each year's investment may be subject to the fee in subsection (D)(2) for twenty years to a maximum total of twenty-seven years for the fee for a single project which has been granted an extension. For those businesses qualifying under subsection (D)(4), the

(4) Annually, during the time period allowed to meet the minimum investment level, the investor shall provide the total amount invested to the appropriate county official."

D. Section 4-12-30(D) of the 1976 Code, as added by Act 125 of 1995, is amended to read:

"(D) The inducement agreement must provide for fee payments, to the extent applicable, as follows:

(1)(a) Any property, title to which is transferred to the county before being placed in service, is subject to an annual fee payment as provided in Section 4-12-20.

(b) Any undeveloped land, title to which is transferred to the county, before being developed and placed in service, is subject to an annual fee payment as provided in Section 4-12-20. The time during which fee payments are made under Section 4-12-20 is not considered part of the maximum periods provided in subsections (C)(2) and (C)(3), and no lease is considered an `initial lease agreement' for purposes of this section until the first day of the calendar year for which a fee payment is due under subsection (D)(2) in connection with the lease.

(2) After property qualifying under subsection (B) is placed in service, an annual fee payment determined in accordance with one of the following is due:

(a) an annual payment in an amount not less than the property taxes that would be due on the project if it were taxable, but using an assessment ratio of not less than six percent, except as provided in item (4) of this subsection, and a fixed millage rate as provided in subsection (G), and a fair market value estimate determined by the department as follows:

(i) for real property, using the original income tax basis for South Carolina income tax purposes without regard to depreciation, but if real property is constructed for the fee or is purchased in an arm's length transaction, fair market value is deemed to equal the original income tax basis; otherwise, the department shall determine fair market value by appraisal; and

(ii) for personal property, using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the investor is not entitled to any extraordinary obsolescence.

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