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

Page Finder Index

| Printed Page 5130, June 27 | Printed Page 5150, June 27 |

Printed Page 5140 . . . . . Thursday, June 27, 1996

SECTION 19. Section 12-14-30(3)(b) of the 1976 Code, as amended by an act of 1996 bearing ratification number 234, is further amended to read:

"(b) Reserved. a manufacturing facility that has closed or experienced permanent layoffs and notified the Employment Security Commission under the federal Worker Adjustment and Retraining Notification (WARN) Act of 1988. The number of jobs lost must equal twenty-five percent or more of the total workforce in the census tract in which the facility is located at the time the layoff occurred. The job loss must have occurred no more than five years before April 4, 1995, except in any census tract where a catastrophic loss of one thousand or more jobs from a single employer has occurred since 1980 and fewer than half the jobs have been replaced."

SECTION 20. A. Section 12-36-2120 of the 1976 Code, as amended, is further amended by adding the following new items to be appropriately numbered to read:

"( ) Material handling systems and material handling equipment including, but not limited to, racks, whether or not the racks are used to support a facility structure or part thereof, used in the operation of a distribution facility or a manufacturing facility. In order to qualify for this exemption, the taxpayer shall notify the department before the first month it uses the exemption and shall invest at least forty million dollars in any 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.

( ) Parts and supplies used by persons engaged in the business of repairing or reconditioning aircraft owned by or leased to the federal government or commercial air carriers. This exemption does not extend to tools and other equipment not attached to or that do not become a part of the aircraft."

B. The first unnumbered item added in Section 12-36-2120 of the 1976 Code by subsection A. of this section takes effect March 1, 1996. The second unnumbered item so added takes effect on the first day of the second month following approval by the Governor.

SECTION 21. Section 12-37-220(B)(33) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(33) All personal property including aircraft of an air carrier including aircraft used in operating which operates an air carrier hub terminal facility in this State for a period of ten consecutive years from the date of qualification, if its qualifications are maintained. An air carrier hub terminal facility is defined in Section 55-11-500."


Printed Page 5141 . . . . . Thursday, June 27, 1996

SECTION 22. Notwithstanding any other provision of law, Section 12-10-80(A) of the 1976 Code, job development fees may be retained for employees hired after December 31, 1995, if the qualified business qualifies under Section 4-12-30(D)(4) of the 1976 Code or Section 4-29-67(D)(4) of the 1976 Code and enters into a revitalization agreement applying to these employees before August 1, 1996.

SECTION 23. Section 4-29-68(A)(2) of the 1976 Code, as last amended by Act 125 of 1995, is further amended to read:

"(2) The bonds are issued solely for the purpose of paying the cost of designing, acquiring, constructing, improving, or expanding the infrastructure serving the issuer and for improved or unimproved real estate used in the operation of a manufacturing or commercial enterprise in order to enhance the economic development of the issuer and costs of issuance of the bonds. For purposes of this section, infrastructure includes improved and unimproved real property. Bonds issued pursuant to this section to finance the acquisition of real or personal property may be additionally secured by a mortgage of that real or personal property."

SECTION 24. A. Section 61-9-312 of the 1976 Code, as amended by Section 75A, Part II, Act 145 of 1995, is further amended to read:

"Section 61-9-312. (A) In counties or municipalities where temporary permits are authorized to be issued pursuant to Section 61-5-180, in lieu of the retail permit fee required pursuant to Section 61-9-310, a retail dealer otherwise eligible for the retail permit under that section may elect to apply for a special version of that permit which allows sales for off-premises consumption without regard to the restrictions on the days or hours of sales provided in Sections 61-9-90, 61-9-100, 61-9-110, and 61-9-130. The annual fee for this special retail permit is one thousand dollars.

(B) Revenue generated by the fees must be credited to the general fund of the State except that revenue generated by the fees within a county where a federal military base or installation has been closed, or is designated to be closed and where the federal facility has reduced its permanent civilian employment by three thousand seven hundred fifty or more jobs after December 31, 1990, for a period of ten years after the effective date of Chapter 12 of Title 31, must be credited to a special separate and distinct account with the Budget and Control Board for support of a redevelopment authority created therein pursuant to Chapter 12 of Title 31. All other requirements for retail permits provided in Section 61-9-310 apply to the special permits authorized by this section.

(C) (1) Immediately following the dissolution of a redevelopment authority pursuant to Section 31-12-100(A), the fees distributed to the


Printed Page 5142 . . . . . Thursday, June 27, 1996

dissolved redevelopment authority pursuant to subsection (B) must be distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may only be used by the municipality or county for the following purposes:

(a) capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;

(b) purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);

(c) festivals which have a demonstrable and significant impact on tourism;

(d) acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future; public water supply, well fields, highway buffering and aquifer recharge areas; and land for wildlife preserves; and land for future public recreational facilities;

(e) nourishment, renourishment (resanding) and maintenance of beaches;

(f) dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;

(g) maintenance of public beach access;

(h) capital improvements to the beaches and beach related facilities, such as public parking areas for beach access; dune walkovers and rest room facilities, with or without changing rooms, at public beach parks; and

(i) construction and maintenance of drainage systems.

(2) The revenue may not be used for operating expenses of tourism-related buildings."

B. Section 61-5-180 of the 1976 Code, as last amended by Section 1584 of Act 181 of 1993, is further amended to read:

"Section 61-5-180. (A) In addition to the provisions of Section 61-5-85, the department may issue a temporary permit to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less. This permit is valid for a period not to exceed twenty-four hours and may be issued only to bona fide nonprofit organizations and business establishments otherwise authorized to be


Printed Page 5143 . . . . . Thursday, June 27, 1996

licensed for sales. The department shall charge a nonrefundable filing fee of one hundred dollars for processing each application and a daily permit fee of fifty dollars for each day for which a permit is approved. An application must be filed for each permit requested. The department in its sole discretion shall specify the terms and conditions of the permit.

(B) (1) The permit fees must be credited to the general fund of the State distributed to the municipality or county in which the retailer who paid the fee is located. The revenue may only be used by the municipality or county for the following purposes:

(a) capital improvements to tourism-related buildings including, but not limited to, civic centers, convention centers, coliseums, aquariums, stadiums, marinas, parks, and recreational facilities;

(b) purchase or renovation of buildings which are historic properties as defined in Section 60-12-10(4) and (5);

(c) festivals which have a demonstrable and significant impact on tourism;

(d) local youth mentor programs to serve juvenile offenders under the jurisdiction of the family court;

(e) contributions to matching funds necessary for a local government or entity to receive funding from the Legacy Trust Fund pursuant to Chapter 22 of Title 51;

(f) contributions to a redevelopment authority pursuant to Section 31-12-10, et seq.

(g) acquiring fee and less than fee interest in land while it is still available to be held in perpetuity as wildlife preserves or believed to be needed by the public in the future for active and passive recreation uses and scenic easements, to include the following types of land: ocean, harbor, and pond frontage in the form of beaches, dunes, and adjoining backlands; barrier beaches; fresh and saltwater marshes and adjoining uplands; land for bicycle paths; land protecting existing and future; public water supply, well fields, highway buffering and aquifer recharge areas; and land for wildlife preserves; and land for future public recreational facilities;

(h) nourishment, renourishment (resanding) and maintenance of beaches;

(i) dune restoration, including the planting of grass, sea oats, or other vegetation useful in preserving the dune system;

(j) maintenance of public beach access;

(k) capital improvements to the beaches and beach related facilities, such as public parking areas for beach access; dune walkovers


Printed Page 5144 . . . . . Thursday, June 27, 1996

and rest room facilities, with or without changing rooms, at public beach parks; and

(l) construction and maintenance of drainage systems.

(2) The revenue may not be used for operating expenses of tourism-related buildings. The department in its sole discretion shall specify the terms and conditions of the permit.

(C) Permits authorized by this section may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permits. The county or municipal election commission, as the case may be, shall conduct a referendum upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the county or municipality, as the case may be, in not less than thirty nor more than forty days after receiving the petition. The election commission shall cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall apply to the referendum, mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the South Carolina Department of Revenue and Taxation. The question on the ballot shall read substantially as follows:

`Shall the South Carolina Department of Revenue and Taxation be authorized to issue temporary permits in this (county)(municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'

A referendum for this purpose may not be held more often than once in forty-eight months.

The expenses of any such referendum must be paid by the county or municipality conducting the referendum."

C. In a county in which temporary permits may be issued pursuant to Section 61-5-180, revenue generated by the fees imposed under that section within a county where a federal military base or installation has been closed, or is designated to be closed and where the federal facility has reduced its permanent civilian employment by seven hundred fifty or more jobs, but not more than two thousand nine hundred ninety-nine jobs, after December 31, 1990, for a period of five years beginning July 1, 1997 must be credited to a special separate and distinct account with the Budget and Control Board for support of a redevelopment authority created therein pursuant to Chapter 12 of Title 31.


Printed Page 5145 . . . . . Thursday, June 27, 1996

D. This section is effective for property tax years beginning after 1996.

SECTION 25. Section 12-10-70 of the 1976 Code is repealed.

SECTION 26. Except where otherwise specifically provided in this act, this act is effective upon approval by the Governor. In determining qualification for benefits available to a taxpayer, taxpayers entering into revitalization agreements on or before December 31, 1996, may elect to:

(1) use Sections 12-10-10 through 12-10-90 of the 1976 Code as they existed prior to amendment by this act; or

(2) use the provisions of this act.

However, regardless of the election made by the taxpayer under this section, all contracts with schools made pursuant to Section 12-10-80(D) of the 1976 Code after the effective date of this act will be governed by this act. Taxpayers entering into revitalization agreements on or after January 1, 1997, will be governed by this act./

Amend title to read:

/TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE "SOUTH CAROLINA RURAL DEVELOPMENT ACT OF 1996", TO ADD SECTIONS 12-10-85 AND 12-10-88, PROVIDING GUIDELINES FOR THE USES OF THE STATE RURAL INFRASTRUCTURE FUND AND PROVIDING FOR REDEVELOPMENT FEES BY REDEVELOPMENT AUTHORITIES FROM EMPLOYEE WITHHOLDING ON WAGES PAID EMPLOYEES BY A FEDERAL EMPLOYER AT A CLOSED OR REALIGNED MILITARY INSTALLATION; TO ADD SECTION 58-27-240 CLARIFYING THE IMPACT OF THIS ACT ON THE RETAIL AND WHOLESALE DISTRIBUTION AND SALE OF ELECTRIC ENERGY; TO AMEND SECTIONS 4-12-30, 4-12-40, AND 4-27-67, AS AMENDED, RELATING TO FEES IN LIEU OF TAXES, SO AS TO LOWER THE MINIMUM FEES WHICH MAY BE NEGOTIATED, REVISE TERMS AND CONDITIONS FOR NEGOTIATING FEES AND ACCOMPANYING AGREEMENTS, PROVIDE FOR THE DISTRIBUTION OF FEE REVENUES, AND PROVIDE THE QUALIFICATIONS OF THOSE ENTITIES WHICH QUALIFY FOR THE REVISED FEE ARRANGEMENTS; TO AMEND SECTION 12-6-2320, AS AMENDED, RELATING TO THE ALLOCATION AND APPORTIONMENT OF A TAXPAYER'S INCOME AND THE ACCOUNTING METHOD ALLOWED THEREFOR, SO AS TO EXTEND THE COVERAGE OF THIS SECTION TO ONE OR MORE OF A CONTROLLED GROUP OF CORPORATIONS; TO AMEND SECTION 12-6-3360, AS AMENDED, RELATING TO THE


Printed Page 5146 . . . . . Thursday, June 27, 1996

TARGETED JOBS TAX CREDIT, SO AS TO AUTHORIZE THE CREDIT FOR ADDITIONAL EMPLOYEES, REVISE THE METHOD WHEREBY COUNTIES ARE DESIGNATED FOR PURPOSES OF THE AMOUNT OF THE CREDIT ALLOWED FOR EACH NEW JOB CREATED, INCREASE THE JOB TAX CREDITS ALLOWED, REVISE THE METHOD OF DETERMINING THE CREDIT APPLICABLE IN JOINTLY ESTABLISHED INDUSTRIAL PARKS AND LIMIT THE MAXIMUM CREDIT THAT MAY BE CLAIMED IN ANY ONE TAX YEAR UNDER THIS SECTION; TO AMEND SECTION 12-6-3450, RELATING TO INCOME TAX CREDITS ALLOWED FOR EMPLOYING PERSONS TERMINATED FROM EMPLOYMENT IN A CLOSING OR REALIGNMENT OF A MILITARY INSTALLATION, SO AS TO EXTEND THE CREDIT TO SUCH PERSONS FORMERLY EMPLOYED IN AN APPLICABLE FEDERAL FACILITY AND PROVIDE DEFINITIONS; TO AMEND SECTION 12-6-3470, RELATING TO THE EMPLOYER INCOME TAX CREDIT FOR PERSONS HIRED WHO FORMERLY WERE RECEIVING AFDC, SO AS TO REVISE AND LIMIT THE CREDITS THAT ARE ALLOWED AND ADD A CREDIT FOR CERTAIN HIRES IN "LEAST DEVELOPED" COUNTIES; TO CLARIFY ELIGIBILITY REQUIREMENTS AND ALLOW A CARRYFORWARD OF UNUSED CREDITS; TO ADD SECTION 12-6-3490, SO AS TO ALLOW A CORPORATE LICENSE TAX CREDIT FOR CERTAIN INFRASTRUCTURE EXPENSES, TO PROVIDE A MAXIMUM CREDIT AMOUNT, AND PROVIDE DEFINITIONS; TO AMEND SECTIONS 12-10-20, 12-10-30, 12-10-40, AS AMENDED, 12-10-50, 12-10-80, AS AMENDED, AND 12-10-90, RELATING TO THE ENTERPRISE ZONE ACT OF 1995, SO AS TO PROVIDE ADDITIONAL STATEMENTS OF LEGISLATIVE INTENT, REVISE DEFINITIONS, EXTEND THE BENEFITS UNDER THE ACT STATEWIDE SUBJECT TO VARIATIONS BASED ON A COUNTY'S DEVELOPMENT DESIGNATION, REVISE THE APPLICATION AND USES OF THE JOB DEVELOPMENT FEE AND PROVIDE FOR THE AMOUNT OF A JOB DEVELOPMENT THAT MAY BE RETAINED BY THE EMPLOYER AND THE AMOUNTS THAT MUST BE CREDITED TO THE STATE RURAL INFRASTRUCTURE FUND; TO AMEND SECTION 12-14-30, AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE "ECONOMIC IMPACT ZONE COMMUNITY DEVELOPMENT ACT OF 1995", SO AS TO DELETE A DEFINITION; TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO SALES AND USE TAX EXEMPTIONS,
Printed Page 5147 . . . . . Thursday, June 27, 1996

SO AS TO EXEMPT CERTAIN MATERIAL HANDLING SYSTEMS AND EQUIPMENT AND PARTS AND SUPPLIES USED IN REPAIRING OR RECONDITIONING CERTAIN AIRCRAFT; TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CLARIFY THE EXEMPTION ALLOWED AIR CARRIERS OPERATING A HUB IN THIS STATE; TO AMEND SECTION 4-29-68, AS AMENDED, RELATING TO SPECIAL SOURCE REVENUE BONDS, SO AS TO EXTEND THE PURPOSES FOR WHICH THESE BONDS MAY BE ISSUED TO UNIMPROVED OR IMPROVED REAL ESTATE USED IN THE OPERATION OF A MANUFACTURING OR COMMERCIAL ENTERPRISE; TO AMEND SECTION 61-9-312, AS AMENDED, RELATING TO BEER AND WINE PERMITS FOR NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT IMMEDIATELY FOLLOWING THE DISSOLUTION OF A REDEVELOPMENT AUTHORITY, THE FEES DISTRIBUTED TO THE DISSOLVED REDEVELOPMENT AUTHORITY MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED TO REDUCE THE NUMBER OF JOBS BY WHICH EMPLOYMENT MUST HAVE DECLINED IN A COUNTY FOR THIS DISTRIBUTION PLAN TO APPLY AND PROVIDE FOR THE USES OF THE REVENUE; TO AMEND SECTION 61-5-180, AS AMENDED, RELATING TO ISSUANCE OF TEMPORARY ALCOHOLIC BEVERAGE PERMITS TO NONPROFIT ORGANIZATIONS AND BUSINESS ESTABLISHMENTS, SO AS TO PROVIDE THAT THE PERMIT FEES MUST BE DISTRIBUTED TO THE MUNICIPALITY OR COUNTY IN WHICH THE RETAILER WHO PAID THE FEE IS LOCATED AND PROVIDE FOR THE USES OF THE REVENUE AND PROVIDE FOR THE TEMPORARY USE OF THE REVENUE IN A COUNTY IN WHICH A FEDERAL MILITARY BASE OR INSTALLATION IS CLOSED, OR SCHEDULED TO BE CLOSED AND WHEN A FEDERAL FACILITY HAS HAD A SPECIFIC JOB LOSS; AND TO REPEAL SECTION 12-10-70, RELATING TO BENEFITS UNDER THE ENTERPRISE ZONE ACT OF 1995, AND TO PROVIDE EFFECTIVE DATES./

/s/Hugh K. Leatherman, Sr. .......... /s/Roland Smith
/s/Phil P. Leventis .......... /s/John G. Felder
/s/McKinley Washington, Jr. .......... /s/Robert W. Harrell, Jr.

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


Printed Page 5148 . . . . . Thursday, June 27, 1996

Rep. HARRELL explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

RECORD FOR VOTING

I am in favor of the RDA Conference Report and had I been present, I would have voted in favor of this measure.

Rep. JOHN W. TUCKER, JR.

RECORD FOR VOTING

Due to an economic development announcement in Lancaster County that I participated in, I was not in the Chamber to vote my support for H. 4706 (the Rural Development Act).

Rep. WILLIAM D. BOAN

STATEMENT FOR JOURNAL ON

H. 4706 CONFERENCE REPORT

I voted against this piece of legislation because I feel the way it was presented amounts to extortion. There is no legislation from this session to my knowledge which warranted a special session. The tactics employed to pass this measure seriously jeopardize the legislative process in South Carolina. With this precedent now set, there would appear to be no need for the House of Representatives. Perhaps we should eliminate the House of Representatives, this saving millions of tax dollars, and allow the Senate and Governor to manage the affairs of the State of South Carolina.

Rep. DANIEL T. COOPER

H. 3515--FREE CONFERENCE POWERS GRANTED

Rep. JENNINGS 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. 3515 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 2-13-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE ADVANCE SHEETS OF STATUTES, SO AS TO REVISE THE PERSONS AND ENTITIES TO WHOM THE ADVANCE SHEETS MUST BE DISTRIBUTED; AND TO AMEND SECTION 2-13-240, AS AMENDED, RELATING TO THE DISTRIBUTION OF SETS OF THE CODE OF LAWS OF SOUTH CAROLINA, SO AS TO REVISE THE


Printed Page 5149 . . . . . Thursday, June 27, 1996

PERSONS AND ENTITIES TO WHOM THE SETS MUST BE DISTRIBUTED.

POINT OF ORDER

Rep. HASKINS raised the Point of Order that the request for free conference powers was a procedural motion and was not debatable.

The SPEAKER stated that there was precedence from June of 1987 and former Speaker SHEHEEN had stated that the free conference report itself was debatable but not the motion requesting free conference powers and he sustained the Point of Order.

The question then recurred to the motion to grant free conference powers.

The yeas and nays were taken resulting as follows:

Yeas 88; Nays 16

Those who voted in the affirmative are:

Anderson             Bailey               Baxley
Beck                 Breeland             Brown, G.
Brown, H.            Brown, J.            Brown, T.
Byrd                 Carnell              Cave
Clyburn              Cobb-Hunter          Cotty
Cromer               Davenport            Delleney
Felder               Fleming              Govan
Hallman              Harrell              Harris, J.
Harris, P.           Harvin               Haskins
Hines, M.            Hodges               Howard
Hutson               Inabinett            Jaskwhich
Jennings             Keegan               Kelley
Kennedy              Keyserling           Kinon
Kirsh                Klauber              Law
Lee                  Limbaugh             Limehouse
Littlejohn           Lloyd                Martin
Mason                McAbee               McCraw
McElveen             McKay                McMahand
Neal                 Neilson              Phillips
Quinn                Rhoad                Rice
Richardson           Robinson             Rogers
Scott                Seithel              Sharpe
Sheheen              Shissias             Smith, D.

Printed Page 5150 . . . . . Thursday, June 27, 1996

Smith, R.            Spearman             Stoddard
Stuart               Tripp                Vaughn
Waldrop              Wells                Whipper, L.
Whipper, S.          White                Wilder
Wilkes               Wilkins              Williams
Witherspoon          Wofford              Young
Young-Brickell

Total--88

Those who voted in the negative are:

Cain                 Cato                 Chamblee
Cooper               Dantzler             Easterday
Gamble               Knotts               Koon
Marchbanks           Meacham              Riser
Sandifer             Simrill              Trotter
Whatley              

Total--16

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


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