S 0881 General Bill, By Passailaigue
 A Bill to amend Article 7, Chapter 54 of Title 12, Code of Laws of South
 Carolina, 1976, relating to the revocation of professional licenses by the
 South Carolina Tax Commission for failure to make tax returns and pay taxes,
 so as to limit the application of the revocation to persons so licensed who
 agreed to provide goods and services to state and local government agencies,
 to limit the certification required of persons applying or reapplying for a
 right or license to conduct a trade, business, or profession to persons
 furnishing goods or services to a state or local government agency and to
 limit the nonrenewal, nonissue, and nonextension of the license or permit held
 by a person failing to file or pay taxes to those licensees or permittees who
 have agreed to provide goods and services to the agency issuing the license or
 permit, and to conform the language of the Article to the Restructuring Act;
 and to amend Section 61-3-425, relating to the prohibition on using, renewing,
 or transferring beer, wine, and alcoholic beverage licenses and permits
 without a signed statement from the South Carolina Tax Commission and the
 Internal Revenue Service that the applicant does not owe delinquent taxes, so
 as to conform the Section to the Restructuring Act.

   10/25/93  Senate Prefiled
   10/25/93  Senate Referred to Committee on Finance
   01/11/94  Senate Introduced and read first time SJ-28
   01/11/94  Senate Referred to Committee on Finance SJ-28
   01/19/94  Senate Committee report: Favorable Finance SJ-18
   01/20/94  Senate Read second time SJ-26
   01/26/94  Senate Read third time and sent to House SJ-10
   01/26/94  House  Introduced and read first time HJ-11
   01/26/94  House  Referred to Committee on Ways and Means HJ-11

COMMITTEE REPORT

January 19, 1994

S. 881

S. Printed 1/19/94--S.

Read the first time January 11, 1994.

To whom was referred a Bill (S. 881), to amend Article 7, Chapter 54 of Title 12, Code of Laws of South Carolina, 1976, relating to the revocation of professional licenses, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

JOHN DRUMMOND, for Committee.

This Bill amends Article 7, Chapter 54, of Title 12, relating to revocation of professional licenses by the South Carolina Tax Commission for failure to make tax returns and pay taxes, so as to limit the application of the revocation to persons so licensed who agreed to provide goods and services to state and local government agencies, to limit the certification required of persons applying or reapplying for a right or license to conduct a trade, business, or profession to persons furnishing goods or services to a state or local government agency, etc.

This Bill would have no effect on state or local revenue. This bill contains technical corrections to legislation passed in the 1993 session.

Approved By:

A. Crawford Clarkson, Jr.

S.C. Tax Commission

A BILL

TO AMEND ARTICLE 7, CHAPTER 54 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REVOCATION OF PROFESSIONAL LICENSES BY THE SOUTH CAROLINA TAX COMMISSION FOR FAILURE TO MAKE TAX RETURNS AND PAY TAXES, SO AS TO LIMIT THE APPLICATION OF THE REVOCATION TO PERSONS SO LICENSED WHO AGREED TO PROVIDE GOODS AND SERVICES TO STATE AND LOCAL GOVERNMENT AGENCIES, TO LIMIT THE CERTIFICATION REQUIRED OF PERSONS APPLYING OR REAPPLYING FOR A RIGHT OR LICENSE TO CONDUCT A TRADE, BUSINESS, OR PROFESSION TO PERSONS FURNISHING GOODS OR SERVICES TO A STATE OR LOCAL GOVERNMENT AGENCY AND TO LIMIT THE NONRENEWAL, NONISSUE, AND NONEXTENSION OF THE LICENSE OR PERMIT HELD BY A PERSON FAILING TO FILE OR PAY TAXES TO THOSE LICENSEES OR PERMITTEES WHO HAVE AGREED TO PROVIDE GOODS AND SERVICES TO THE AGENCY ISSUING THE LICENSE OR PERMIT, AND TO CONFORM THE LANGUAGE OF THE ARTICLE TO THE RESTRUCTURING ACT; AND TO AMEND SECTION 61-3-425, RELATING TO THE PROHIBITION ON USING, RENEWING, OR TRANSFERRING BEER, WINE, AND ALCOHOLIC BEVERAGE LICENSES AND PERMITS WITHOUT A SIGNED STATEMENT FROM THE SOUTH CAROLINA TAX COMMISSION AND THE INTERNAL REVENUE SERVICE THAT THE APPLICANT DOES NOT OWE DELINQUENT TAXES, SO AS TO CONFORM THE SECTION TO THE RESTRUCTURING ACT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Article 7, Chapter 54, Title 12 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

Article 7

Section 12-54-1010. (A) Every department, board, commission, division, authority, district, or other agency of the State or its subdivisions, including a municipality or district, issuing or renewing a license or other authority to conduct a profession, trade, or business annually shall furnish to the commission department on forms it requires by regulation:

(1) before January thirty-first a list of all licenses or other authority issued or renewed by the agency during the preceding year;

(2) before July thirty-first a list of all persons furnishing goods, services, or real estate space to the agency during the preceding fiscal year. The commission department, in its discretion, by regulation, may require municipalities and districts with a population exceeding a level it determines to furnish annually the information required under this item.

(B) The lists provided to the commission department pursuant to subsection (A) must contain the name, address, and social security or federal identification number of the licensee or provider and other information the commission department may require by regulation.

(C) If the commission department determines from the information pursuant to subsections (A) and (B) or otherwise that a person who holds a license or other authority issued by an agency, as defined in subsection (A), or and who has agreed to furnish goods, services, or real estate space to an agency has neglected or refused to file returns or to pay a tax required under provisions of law administered by the commission department and that the person has not filed in good faith a pending application for abatement of the tax or a pending petition before the appropriate authority contesting the tax, the commission department shall notify the agency and the person in writing of that fact. Upon written request of the commission department and after a hearing and notice to the licensee as required under applicable provisions of law, the agency shall revoke or suspend the license or certificate of authority if the agency finds the returns and taxes required under this title have not been filed or paid and that the licensee has not filed in good faith a pending application for abatement of the tax or a pending petition before the appropriate authority contesting the tax. For the purpose of these findings, the written representation to that effect by the commission department to the agency constitutes prima facie evidence of that fact. The commission department may intervene in a hearing conducted with respect to license revocation or suspension. Findings made by the agency with respect to license revocation or suspension must be made only for the purposes of the proceeding and are not relevant to and must not be introduced in another proceeding at law, except for an appeal from license revocation or suspension. A license or other authority suspended or revoked under this section must not be reissued or renewed until the agency receives a certificate issued by the commission department that the licensee is in good standing with respect to returns due and taxes payable to the commission department as of the date of issuance of the certificate, including taxes and returns referenced in the initial notification. A person aggrieved by a decision pursuant to this section may appeal pursuant to the Administrative Procedures Act.

Section 12-54-1020. (A) A person applying to an agency of the State or its subdivisions, as defined in Section 12-54-1010(A), for a right or license to conduct a profession, trade, or business or for the renewal of the right or license and who has agreed to furnish goods, services, or real estate space to any such agency shall certify upon application, under penalties of perjury, that he has complied with all laws of the State relating to taxes. The right or license must not be issued or renewed unless certification is made.

(B) No contract or other agreement for the purposes of providing goods, services, or real estate space to an agency, as defined in Section 12-54-1010(A), may be entered into, renewed, or extended with a person unless the person certifies in writing, under penalties of perjury, that he has complied with all laws of the State relating to taxes.

(C) An agency, as defined in Section 12-54-1010(A), which has been notified by the commission department pursuant to provisions of law administered by the commission department that a person who holds a license or certificate of authority issued by the agency or and who has agreed to furnish goods, services, or real estate space to the agency has neglected or refused to file returns or to pay a tax required and that the person has not filed in good faith a pending application for abatement of the tax or a pending petition before the appropriate authority contesting the tax, shall refuse to reissue, renew, or extend the license or other authority, contract, or agreement until the agency receives a certificate issued by the commission department that the person is in good standing with respect to returns due and taxes payable to the commission department as of the date of issuance of the certificate, including returns and taxes referenced in the initial notification." SECTION 2. Section 61-3-425 of the 1976 Code, as added by Act 164 of 1993, is amended to read:

"Section 61-3-425. No license under this title may be issued, renewed, or transferred under this title unless the applicant for a license or a renewal or a transfer of a license presents submits to the commission a signed statement from the South Carolina Tax Commission Department of Revenue and Taxation and from the Internal Revenue Service showing the applicant does not owe the state or federal government delinquent taxes, penalties, or interest."

SECTION 3. This act, upon approval by the Governor, is effective for tax years or license periods beginning after 1993.