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A172, R173, S635
Sponsors: Senators Setzler and Scott
Document Path: l:\council\bills\df\13056sa21.docx
Companion/Similar bill(s): 3856
Introduced in the Senate on March 2, 2021
Introduced in the House on April 21, 2021
Last Amended on April 14, 2021
Passed by the General Assembly on May 5, 2022
Governor's Action: May 16, 2022, Signed
Summary: SC Research Authority Board
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/2/2021 Senate Introduced and read first time (Senate Journal-page 11) 3/2/2021 Senate Referred to Committee on Labor, Commerce and Industry (Senate Journal-page 11) 4/8/2021 Senate Committee report: Favorable with amendment Labor, Commerce and Industry (Senate Journal-page 12) 4/14/2021 Senate Committee Amendment Adopted (Senate Journal-page 13) 4/14/2021 Senate Amended (Senate Journal-page 13) 4/14/2021 Senate Read second time (Senate Journal-page 13) 4/14/2021 Senate Roll call Ayes-41 Nays-0 (Senate Journal-page 13) 4/15/2021 Scrivener's error corrected 4/20/2021 Senate Read third time and sent to House (Senate Journal-page 13) 4/21/2021 House Introduced and read first time (House Journal-page 23) 4/21/2021 House Referred to Committee on Education and Public Works (House Journal-page 23) 1/11/2022 House Recalled from Committee on Education and Public Works (House Journal-page 30) 1/11/2022 House Referred to Committee on Ways and Means (House Journal-page 30) 4/28/2022 House Committee report: Favorable Ways and Means (House Journal-page 10) 5/4/2022 House Read second time (House Journal-page 119) 5/4/2022 House Roll call Yeas-97 Nays-11 (House Journal-page 119) 5/5/2022 House Read third time and enrolled (House Journal-page 12) 5/12/2022 Ratified R 173 (Senate Journal-page 207) 5/16/2022 Signed By Governor 5/31/2022 Effective date 05/16/22 5/31/2022 Act No. 172
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VERSIONS OF THIS BILL
(A172, R173, S635)
AN ACT TO AMEND SECTION 13-17-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MEMBERS OF THE SOUTH CAROLINA RESEARCH AUTHORITY BOARD OF TRUSTEES, SO AS TO PROVIDE THAT THE BOARD CONSISTS OF CERTAIN UNIVERSITY PRESIDENTS OR THEIR DESIGNEES, TO PROVIDE CERTAIN REQUIREMENTS FOR DESIGNEES, AND TO PROVIDE THAT THE EXECUTIVE COMMITTEE SHALL ELECT AN ADDITIONAL MEMBER WHO IS NOT REQUIRED TO BE A TRUSTEE AT THE TIME OF HIS ELECTION; TO AMEND SECTION 13-17-70, RELATING TO THE POWERS OF THE BOARD OF TRUSTEES, SO AS TO PROVIDE THAT THE BOARD MAY INVEST IN CERTAIN OBLIGATIONS OF PRIVATE ENTITIES; TO AMEND SECTION 13-17-87, RELATING TO THE ESTABLISHMENT OF RESEARCH INNOVATION CENTERS, SO AS TO PROVIDE THAT THE SOUTH CAROLINA RESEARCH AUTHORITY MAY ALLOW A COMPANY TO REMAIN IN AN INNOVATION CENTER FOR UP TO FIVE YEARS OR UNTIL EXCEEDING FIVE MILLION DOLLARS BUT DOES NOT APPLY WITH RESPECT TO THIRTY-FIVE PERCENT OF THE SQUARE FEET IN AN INNOVATION CENTER; AND TO AMEND SECTION 12-6-3585, AS AMENDED, RELATING TO THE INDUSTRY PARTNERSHIP FUND TAX CREDIT, SO AS TO PROVIDE THAT IF THE AGGREGATE CREDIT AMOUNT IS NOT MET IN A CERTAIN TIMEFRAME THEN THE SINGLE TAXPAYER MAXIMUM CREDIT IS INCREASED TO ONE MILLION DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
South Carolina Research Authority Board
SECTION 1. A. Section 13-17-40(B)(1) and (2) of the 1976 Code is amended to read:
"(1)(a) The President of Clemson University or his designee, the President of the Medical University of South Carolina or his designee, the President of the University of South Carolina at Columbia or his designee, the President of South Carolina State University or his designee, the Governor or his designee, the Chairman of the House Ways and Means Committee or his designee, the Chairman of the Senate Finance Committee or his designee, and the chairman of the board of trustees shall serve on the executive committee of the SCRA.
(b) A designee of one of the four university presidents must be an individual serving in no less than a vice president or comparable role and shall report directly to the president, with such determination to be made in the sole discretion of the designating president. Each university president may designate only one person for each calendar year, except in the case of the designee's death, incapacity, or termination of employment, in which case the designating university president may replace the designee for the remainder of the calendar year. Any university president is authorized in any event to participate, in any meeting or otherwise, in person rather than through a previously named designee.
(c) The executive committee shall elect two additional members of the executive committee, who shall be trustees at the time of their election, and one additional member, who is not required to be a trustee at the time of his election, by the affirmative vote of a majority of the executive committee then serving.
(d) The executive committee has all powers and authority of the board of trustees. The board shall have an advisory role only and shall advise the executive committee of the actions recommended by the board.
(2) Terms of elected executive committee members are for four years, and the term of at least one executive committee member shall expire every two years. An elected executive committee member may not serve more than two consecutive four-year elected terms. A vacancy must be filled for the unexpired term in the manner of original election, and occurs upon the expiration of the term of service, death, resignation, disqualification, or removal of an elected executive committee member. An elected executive committee member who must be a trustee at the time of his election need not continue to be a trustee in order to complete his term as an executive committee member. An elected executive committee member may be removed from office by the affirmative vote of two-thirds of the executive committee members serving."
B. The initial term of the member of the executive committee of the South Carolina Research Authority Board of Trustees who is not required to be a trustee at the time of his election, pursuant to Section 13-17-40(B)(1), as amended by this act, begins on July 1, 2021, and ends on July 1, 2024.
Powers of Board of Trustees
SECTION 2. Section 13-17-70(8) of the 1976 Code is amended to read:
"(8) from time to time to borrow money, make and issue negotiable notes, bonds, and other evidences of indebtedness, including refunding and advanced refunding notes, bonds, and other evidences of indebtedness of the authority; to secure the payment of the obligations or any part by mortgage, lien, pledge, or deed of trust, on all or any of its property, contracts, franchises, or revenues, including the proceeds of any refunding and advanced refunding notes, bonds, and other evidences of indebtedness and the investments in which proceeds are invested and the earning on and income therefrom; to invest its monies, including without limitation its revenues and proceeds of the notes, bonds, or other evidences of indebtedness, in obligations of, or obligations the principal of and interest on which are guaranteed by or are fully secured by contracts with the United States of America, in obligations of any agency, instrumentality, or corporation which has been or may hereafter be created by or pursuant to an act of Congress of the United States as an agency, instrumentality, or corporation thereof, in direct and general obligations of the State of South Carolina, and in certificates of deposit issued by any bank, trust company, or national banking association and, in addition, in obligations of any private entity existing under the laws of the United States of America or any state thereof, which at the time of purchase bear an investment grade rating of at least two nationally recognized credit rating services; provided, that the authority, when investing in certificates of deposit, shall invest in certificates of deposit issued by institutions authorized to do business in South Carolina if such institutions offer terms which, in the opinion of the authority, are equal to or better than those offered by other institutions; to make agreements with the purchasers or holders of such notes, bonds, or other evidences of indebtedness or with others in connection with any such notes, bonds, or other evidences of indebtedness, whether issued or to be issued, as the authority shall deem advisable; and in general to provide for the security for the notes, bonds, or other evidences of indebtedness and the rights of the holders thereof; provided, that in the exercise of the powers herein granted to issue advanced refunding notes, bonds, or other evidences of indebtedness the authority may, but shall not be required to, avail itself of or comply with any of the provisions of Sections 11-21-10 to 11-21-80 (Advanced Refunding Act);"
Research Innovation Centers
SECTION 3. Section 13-17-87(F)(3) of the 1976 Code is amended to read:
"(3) allow a company to remain in an innovation center for up to five years or until exceeding five million dollars in annual commercial revenue; provided, however, that this requirement may not apply with respect to thirty-five percent of the square feet in an innovation center, as determined by the SCRA;"
Income Tax Credit
SECTION 4. Section 12-6-3585(A) of the 1976 Code, as last amended by Act 15 of 2019, is further amended to read:
"(A) For each tax year beginning after 2020, a taxpayer may claim as a credit against state income tax imposed by Chapter 6, Title 12, bank tax imposed by Chapter 11, Title 12, license fees imposed by Chapter 20, Title 12, or insurance premiums imposed by Chapter 7, Title 38, or any combination of them, one hundred percent of an amount contributed to the Industry Partnership Fund at the South Carolina Research Authority (SCRA), or an SCRA designated affiliate, or both, pursuant to Section 13-17-88(E), up to a maximum credit of five hundred thousand dollars for a single taxpayer, not to exceed an aggregate credit of nine million dollars for all taxpayers. If the aggregate credit of nine million dollars for all taxpayers is not met within sixty days of the annual opening date for the application for the credit, the single taxpayer maximum credit is automatically increased to one million dollars for the remainder of that year until the maximum aggregate credit of nine million dollars is met. For purposes of determining a taxpayer's entitlement to the credit for qualified contributions for a given tax year in which more than the applicable aggregate annual limit on the credit is contributed by taxpayers for that year, taxpayers who have made contributions that are intended to be qualified contributions earlier in the applicable tax year than other taxpayers must be given priority entitlement to the credit. The SCRA shall certify to taxpayers who express a bona fide intention of making one or more qualified contributions as to whether the taxpayer is entitled to that priority."
SECTION 5. This act takes effect on July 1, 2021.
Ratified the 12th day of May, 2022.
Approved the 16th day of May, 2022.
This web page was last updated on June 10, 2022 at 3:57 PM