Indicates Matter Stricken s1

1 Indicates Matter Stricken 2 Indicates New Matter 3 4 AMENDED--NOT PRINTED IN THE SENATE 5 Amt. No. 4 (Doc. No. DKA\3584MM99.doc) 6 June 2, 1999 7 8 H. 3834 9 10 Introduced by Rep. Robinson 11 12 S. Printed 6/1/99--S. 13 Read the first time April 29, 1999. 14 151 [3834-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 2-7-76, AS AMENDED, CODE OF 12 LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISCAL 13 IMPACT STATEMENTS FOR PROPOSED LEGISLATION 14 AFFECTING COUNTIES OR MUNICIPALITIES, SO AS TO 15 REQUIRE THE ACQUISITION OF A FISCAL IMPACT 16 STATEMENT FROM THE “BOARD OF ECONOMIC 17 ADVISORS” INSTEAD OF FROM THE “DEPARTMENT OF 18 REVENUE” AND TO MAKE TECHNICAL CORRECTIONS; 19 TO AMEND SECTION 12-6-40, AS AMENDED, RELATING 20 TO APPLICATION OF THE INTERNAL REVENUE CODE TO 21 STATE TAX LAWS, SO AS TO ADOPT APPLICATION OF 22 THE INTERNAL REVENUE CODE AS AMENDED 23 THROUGH TAXABLE YEAR 1998; TO AMEND SECTION 24 12-6-1120, AS AMENDED, RELATING TO COMPUTATION 25 OF GROSS INCOME FOR STATE TAX PURPOSES, SO AS TO 26 MAKE TECHNICAL CHANGES; TO AMEND SECTION 27 12-6-3410, RELATING TO INCOME TAX CREDIT FOR 28 CORPORATE HEADQUARTERS, SO AS TO PROVIDE FOR 29 DETERMINING THE PER CAPITA INCOME FOR PURPOSES 30 OF CALCULATING ADDITIONAL TAX CREDIT FOR 31 CREATION OF NEW HEADQUARTERS JOBS BY USING 32 THE MOST RECENT PER CAPITA INCOME DATA 33 AVAILABLE AT THE END OF THE TAXABLE YEAR THE 34 JOBS ARE FILLED; TO AMEND SECTION 12-6-3465, 35 RELATING TO RECYCLING FACILITY TAX CREDITS, SO 36 AS TO UPDATE CODE CROSS REFERENCES; TO AMEND 37 SECTION 12-16-20, RELATING TO DEFINITIONS FOR 38 PURPOSES OF THE ESTATE TAX, SO AS TO DEFINE THE 39 INTERNAL REVENUE CODE AS AMENDED THROUGH 40 1998; TO AMEND SECTION 12-20-20, RELATING TO FILING 41 OF A CORPORATE ANNUAL REPORT, SO AS TO UPDATE 42 A CROSS REFERENCE; TO AMEND SECTION 12-36-510, AS1 [3834] 1 1 AMENDED, RELATING TO RETAIL LICENSE 2 REQUIREMENTS, SO AS TO DELETE THE REQUIREMENT 3 THAT A FESTIVAL BE LISTED AS A SPECIAL EVENT 4 WITH THE DEPARTMENT OF PARKS, RECREATION, AND 5 TOURISM; TO AMEND SECTION 12-37-251, AS AMENDED, 6 RELATING TO THE HOMESTEAD EXEMPTION, SO AS TO 7 PROVIDE THAT THE BOARD OF ECONOMIC ADVISORS, 8 INSTEAD OF THE DEPARTMENT OF REVENUE, ESTIMATE 9 THE TOTAL SCHOOL TAX REVENUE LOSS FROM THE 10 EXEMPTION; AND TO AMEND SECTION 12-54-85, AS 11 AMENDED, RELATING TO TIME LIMITATIONS FOR 12 ASSESSMENT OF TAXES, SO AS TO INCREASE FROM 13 THIRTY TO NINETY THE NUMBER OF DAYS A 14 CORPORATION HAS TO FILE A CLAIM FOR REFUND 15 AFTER AN ADJUSTMENT TO ITS TAXABLE INCOME IS 16 MADE BY THE INTERNAL REVENUE SERVICE. 17 Amend Title To Conform 18 19 Be it enacted by the General Assembly of the State of South 20 Carolina: 21 22 SECTION 1. Section 2-7-76 of the 1976 Code, as last amended 23 by Section 115, Part II, Act 497 of 1994, is further amended to 24 read: 25 26 “Section 2-7-76. (A) Whenever The chairman of the 27 legislative committee to which a bill or resolution was referred 28 shall direct the Budget Division or the Economic Research Section 29 of the Budget and Control Board, as appropriate, to prepare and 30 affix to it a statement of the estimated fiscal or revenue impact and 31 cost to the counties and municipalities of the proposed legislation 32 before the legislation is reported out of that committee if a bill or 33 resolution: 34 (1) requires a county or municipality to expend funds 35 allocated to the county or municipality under pursuant to Chapter 36 27 of Title 6, or whenever a bill or resolution; 37 (2) is introduced in the General Assembly to require the 38 expenditure of funds by a county or municipality, or whenever a 39 bill or resolution; 40 (3) requires the use of county or municipal personnel, 41 facilities, or equipment to implement a general law or regulations 42 promulgated pursuant to a general law,; or whenever a bill1 [3834] 2 1 (4) relates to taxes imposed by political subdivisions, the 2 chairman of the legislative committee to which the bill or 3 resolution was referred shall direct the Budget Division or the 4 Department of Revenue, as appropriate, to prepare and affix to it a 5 statement of the estimated fiscal or revenue impact and cost to the 6 counties and municipalities of the proposed legislation prior to the 7 legislation being reported out of that committee. 8 (B) A revised estimated fiscal or revenue impact and cost 9 statement must be prepared at the direction of the presiding officer 10 of the House of Representatives or the Senate by the Budget 11 Division or Department of Revenue prior to Economic Research 12 Section of the Budget and Control Board before third reading of 13 the bill or resolution, if there is a significant amendment to the bill 14 or resolution. 15 (C) For purposes of this section, political subdivision means a 16 county, municipality, school district, special purpose district, 17 public service district, or consolidated political subdivision.” 18 19 SECTION 2. Section 12-6-40(A) of the 1976 Code, as last 20 amended by Act 268 of 1998, is further amended to read: 21 22 “(A) ‘Internal Revenue Code’ means the Internal Revenue Code 23 of 1986 as amended through December 31, 1997 1998, and 24 includes the effective date provisions contained therein.” 25 26 SECTION 3. Section 12-6-1120(8) of the 1976 Code, as added by 27 Act 76 of 1995, is amended to read: 28 29 “(8) Each partner in the Palmetto Seed Capital Fund Limited 30 Partnership (Fund) established under pursuant to Section 41-44-60 31 shall exclude from South Carolina gross income, seventy-five 32 percent of the partner’s proportionate share of income that the fund 33 derives from a South Carolina business which is either: 34 ( i) established and operated in a less least developed county 35 as defined in Section 12-6-3360,; or 36 (ii) invested in agriculture, aquaculture, or a related business 37 or in a business created by a socially or economically 38 disadvantaged individual as defined in 13 Code of Federal 39 Regulations, Sections 124.105(A) and 124.106 (1987).” 40 41 SECTION 4. Section 12-6-3410(D)(2) of the 1976 Code, as 42 added by Act 76 of 1995, is amended to read: 431 [3834] 3 1 “(2) The establishment, expansion, or addition of a corporate 2 headquarters or research and development facility must result in: 3 (a) the creation of at least seventy-five new full-time jobs 4 performing either: 5 ( i) headquarters related functions and services; or 6 (ii) research and development related functions and services 7 which. 8 The jobs must have an average cash compensation level of more 9 than one and one-half times the per capita income of this State at 10 the time the jobs are filled based on the most recent per capita 11 income data available as of the end of the taxpayer’s taxable year 12 in which the jobs are filled; and 13 (b) an average South Carolina employee cash compensation 14 level for all employees in this State of more than twice the per 15 capita income in the State at the time the newly created jobs are 16 filled based on the most recent per capita income data available as 17 of the end of the taxpayer’s taxable year in which the jobs are 18 filled.” 19 20 SECTION 5. Section 12-6-3465 of the 1976 Code, as added by 21 Act 32 of 1995, is amended to read: 22 23 “Section 12-6-3465. A taxpayer who is constructing or 24 operating a qualified recycling facility as defined in Section 25 12-7-1275 12 - 6 - 3460 shall be is entitled to credits in the amount of 26 all funds collected as permitted in Section 12-10-80, which credits 27 can be used to reduce the taxpayer’s corporate income tax imposed 28 by Section 12-7-230 12 - 6 - 530, sales or use tax imposed by the 29 State or any political subdivision of the State, corporate license 30 fees imposed by Section 12-19-70 12 - 20 - 50 or any tax similar to 31 these taxes. Any unused credits may be carried forward to 32 subsequent taxable years until such credits are exhausted.” 33 34 SECTION 6. Section 12-16-20(5) of the 1976 Code, as last 35 amended by Act 361 of 1992, is further amended to read: 36 37 “(5) ‘Internal Revenue Code’ means the Internal Revenue Code 38 of 1986, as amended through December 31, 1991 1998.” 39 40 SECTION 7. Section 12-20-20(A) of the 1976 Code, as added by 41 Act 76 of 1995, is amended to read: 421 [3834] 4 1 “(A) Except for those corporations described in Section 2 12-20-110, every domestic corporation, every foreign corporation 3 qualified to do business in this State, and any other corporation 4 required by Section 12-6-530 12 - 6 - 4910 to file income tax returns 5 shall file an annual report with the department.” 6 7 SECTION 8. The third paragraph of Section 12-36-510(C) of the 8 1976 Code, as last amended by Act 383 of 1994, is further 9 amended to read: 10 11 “ ‘Special event’ means a promotional show, trade show, fair, 12 festival, or carnival for which an admissions fee is required for 13 entering the event or, in the case of a festival, if the festival is 14 listed as a special event in the calendar of events provided by the 15 South Carolina Department of Parks, Recreation and Tourism. In 16 addition, the event must be operated for a period of less than 17 twelve consecutive days.” 18 19 SECTION 9. Section 12-37-251(F) of the 1976 Code, as last 20 amended by Section 29C, Part II, Act 419 of 1998, is further 21 amended to read: 22 23 “(F) The exemption allowed by this section is conditional on 24 full funding of the Education Finance Act and on an appropriation 25 by the General Assembly each year reimbursing school districts an 26 amount equal to the Department of Revenue’s Economic Research 27 Section of the Budget and Control Board estimate of total school 28 tax revenue loss resulting from the exemption in the next fiscal 29 year.” 30 31 SECTION 10. The second paragraph of Section 12-54-85(D) of 32 the 1976 Code, as added by Act 60 of 1995, is amended to read: 33 34 “Notwithstanding any restrictions on filing a claim for refund 35 provided in subsection (F) below, a corporation may file a claim 36 for refund resulting from an overpayment due to changes in 37 taxable income made by the Internal Revenue Service within thirty 38 ninety days from the date the Internal Revenue Service changes the 39 taxable income.” 40 41 SECTION 11. A.Section 12-56-20(1) of the 1976 Code, as last 42 amended by Section 55A, Part II, Act 419 of 1998, is further 43 amended to read:1 [3834] 5 1 “(1) ‘Claimant agency’ means a state agency, board, committee, 2 commission, public institution of higher learning, political 3 subdivision, South Carolina Student Loan Corporation, housing 4 authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 5 of Title 31, and the Internal Revenue Service. It also includes a 6 private institution of higher learning for the purpose of collecting 7 debts related to default on authorized educational loans made 8 pursuant to Chapters 111, 113, or 115 of Title 59. ‘Political 9 subdivision’ includes the Municipal Association of South Carolina 10 and the South Carolina Association of Counties when these 11 organizations submit claims on behalf of their members, or other 12 political subdivisions, or other claimant agencies as defined in this 13 item. A political subdivision who submits a claim through an 14 association is a claimant agency for the purpose of the notice and 15 appeal provisions and other requirements of this chapter.” 16 17 B. Section 12-56-60 of the 1976 Code, as added by Act 76 of 18 1995, is amended to read: 19 20 “Section 12-56-60. (A) A claimant agency seeking to attempt 21 collection of a delinquent debt through setoff shall notify the 22 department in writing and supply information the department 23 determines necessary to identify the debtor whose refund is sought 24 to be set off. A request for setoff may be made only after the 25 claimant agency has notified the debtor of its intention to cause the 26 debtor’s refund to be set off not less than thirty days before the 27 claimant agency’s request to the department. This notice must be 28 given in person, left at the dwelling or usual place of business of 29 the debtor, or sent by certified or registered mail to the debtor’s 30 last known address no less than thirty days before the claimant 31 agency’s request to the department. The notice shall include a 32 statement which sets forth administrative appeal procedures 33 available to the debtor and alternatives available to the debtor 34 which could prevent setoff. The claimant agency promptly shall 35 notify the debtor when the liability out of which the setoff arises is 36 satisfied. Notification to the department and the furnishing of 37 identifying information must occur on or before a date specified by 38 the department in the year preceding the calendar year during 39 which the refund would be paid. Additionally, subject to the 40 notification deadline specified above, the notification is effective 41 only to initiate setoff for claims against refunds that would be 42 made in the calendar year subsequent to the year in which 43 notification is made to the department.1 [3834] 6 1 (B) Upon receiving the certification of the claimant agency of 2 the amount of the delinquent debt, the department shall determine 3 if the debtor is due a refund. If the debtor is due a refund of more 4 than twenty-five dollars, the department shall set off the delinquent 5 debt against the amount of the refund in excess of twenty-five 6 dollars and transfer the amount set off to the claimant agency. The 7 department may retain an amount not to exceed twenty-five dollars 8 of each refund set off to defray its administrative expenses. No 9 apportionment is required in cases of refunds resulting from filing 10 joint returns. A person has no property right or property interest in 11 a refund until all amounts due the State and claimant agencies are 12 paid. The department shall consider any certified delinquent debt 13 and debtor list provided by a claimant agency as correct and the 14 department is not liable for a wrongful or improper setoff. 15 Reviews of refund setoffs are with the claimant agency. If, after 16 appropriate review the claimant agency determines that the setoff 17 amount is excessive, it shall refund the appropriate amount to the 18 taxpayer. If, after appropriate review, the claimant agency 19 determines that it is entitled to no part of the amount set off, it 20 shall refund the entire amount plus the administrative fee retained 21 by the department. That portion of the refund reflecting the 22 administrative fee must be paid from claimant agency funds. If a 23 refund has been retained in error, the claimant agency shall pay 24 interest to the taxpayer calculated as provided in Section 12-54-20 25 from the date provided by law after which interest is paid on 26 refunds until the appeal is final except that no interest accrues 27 when the claimant agency is the Office of Child Support Services 28 of the South Carolina Department of Social Services.” 29 30 C. Chapter 56 of Title 12 of the 1976 Code is amended by 31 adding: 32 33 “Section 12-56-62. The notice of intention to set off must be 34 given by mailing the notice, with postage prepaid, addressed to the 35 debtor at the address provided to the claimant agency when the 36 debt was incurred or at the debtor’s last known address. The 37 giving of the notice by mail is complete upon the expiration of 38 thirty days after deposit of the notice in the mail. A certification 39 by the claimant agency that the notice has been sent as required by 40 this section is presumptive proof that the requirements as to notice 41 are met, even if the notice actually has not been received by the 42 debtor. The notice must include a statement of appeal procedures 43 available to the debtor, substantially as follows:1 [3834] 7 1 ‘According to our records, you owe the (claimant agency) 2 a debt in the amount of (amount of the debt) for (type 3 of debt) . You are hereby notified of the (claimant 4 agency’s) intention to submit this debt to the South Carolina 5 Department of Revenue to be set off against your individual 6 income tax refund. Pursuant to the Setoff Debt Collection Act, 7 this amount, plus all costs, will be deducted from your South 8 Carolina individual income tax refund unless you file a written 9 protest within thirty days of the date of this notice. If you file a 10 joint return with your spouse, this amount will be deducted from 11 the total joint refund without regard to which spouse incurred the 12 debt or actually withheld the taxes. The protest must contain the 13 following information: 14 (1) your name; 15 (2) your address; 16 (3) your social security number; 17 (4) the type of debt in dispute; and 18 (5) a detailed statement of all the reasons you disagree or 19 dispute the debt. 20 The original written protest must be mailed to the (claimant 21 agency) at the following address: 22 (address of the entity requesting the setoff) .’ 23 24 Section 12-56-63. (A) A debtor who protests the debt shall file 25 a written protest with the claimant agency at the address provided 26 in the claimant agency’s notification of intention to set off. The 27 protest must be filed within thirty days of the date of the notice of 28 intention to set off and must contain the debtor’s name, address, 29 and social security number, identify the type of debt in dispute, 30 and give a detailed statement of all the reasons which support the 31 protest. The requirements of this section are jurisdictional. 32 (B) An association defined as a political subdivision in Section 33 12-56-20(1) may contract with another political subdivision for the 34 processing of debts to be submitted to the department. These 35 services may be funded through an administrative fee. The 36 association is exempt from the notice and appeal procedures of this 37 chapter. The entity responsible for the notice and hearing 38 requirements of this chapter is the political subdivision which has 39 submitted its claim through the association or governmental entity 40 which has submitted it directly to the department. 41 42 Section 12-56-65. (A) Before submitting a debt to the 43 department, the claimant agency shall appoint a hearing officer to1 [3834] 8 1 hear a protest of a debtor. This hearing officer is vested with the 2 authority to decide a protest in favor of either the debtor or the 3 claimant agency. The claimant agency shall certify to the 4 department, on a form prescribed by the department, that a hearing 5 officer has been appointed and shall inform the department of the 6 name, address, and telephone number of the hearing officer. If this 7 hearing officer is unable to serve at any time, the claimant agency 8 shall appoint another hearing officer. 9 (B) Upon receipt of a notice of protest, the claimant agency 10 shall notify the department that a protest has been received and 11 shall hold an informal hearing at which the debtor may present 12 evidence, documents, and testimony to dispute the debt. The 13 claimant agency shall notify the debtor of the date, time, and 14 location of the informal hearing. At the conclusion of the informal 15 hearing, the hearing officer shall render his determination. Upon 16 receipt of a sworn certification from the hearing officer that he 17 held an informal hearing and ruled in favor of the claimant agency, 18 the department may proceed with the setoff, regardless of a 19 subsequent appeal by the debtor. 20 (C) A debtor may seek relief from the hearing officer’s 21 determination by requesting, within thirty days of the 22 determination, a contested case hearing before the Administrative 23 Law Judge Division. A request for a hearing before the 24 Administrative Law Judge Division must be made in accordance 25 with its rules. 26 (D) If a setoff is made and the determination of the hearing 27 officer in favor of the claimant agency is later reversed, the 28 claimant agency shall refund the appropriate amount to the 29 taxpayer. If the claimant agency is found to be entitled to no part 30 of the amount set off, it shall refund the entire amount plus the 31 administrative fee retained by the department. That portion of the 32 refund reflecting the administrative fee must be paid from claimant 33 agency funds. If the claimant agency is found to be entitled to a 34 portion of the amount set off, it is not required to refund the 35 administrative fee retained by the department. 36 (E) If a refund is retained in error, the claimant agency shall 37 pay to the taxpayer interest calculated as provided in Section 38 12-54-20 from the date provided by law after which interest is paid 39 on refunds until the appeal is final, except that interest does not 40 accrue when the claimant agency is the Office of Child Support 41 Services of the South Carolina Department of Social Services. 42 (F) If the claimant agency determines that money has been 43 erroneously or illegally set off, the claimant agency, in its1 [3834] 9 1 discretion, may refund the amount of the setoff, even if the debtor 2 does not file a protest. 3 (G) A setoff may not be contested more than one year after the 4 date the setoff was made. The date of the setoff must be 5 conclusively determined by the department. This provision must 6 be construed as a statute of repose and not as a statute of 7 limitation. 8 9 Section 12-56-67. This section does not create a right to jury 10 trial where one does not already exist. Where a debtor otherwise is 11 entitled to have a jury determine the issue of indebtedness, that 12 right is preserved specifically. If a right to a jury trial already 13 exists and the debtor wishes to exercise that right, the debtor is not 14 required to request a contested case hearing before the 15 Administrative Law Judge Division but instead must file a 16 summons and complaint in the Court of Common Pleas and serve 17 the pleadings on the claimant agency within thirty days from the 18 date of the hearing officer’s determination. The summons and 19 complaint must name the claimant agency as a defendant and the 20 allegations of the complaint must contest the debt and any 21 potential setoff. 22 23 Section 12-56-120. The department is exempt from the notice 24 and appeal procedures of this chapter. The appeal procedures for 25 the setoff of any debt owed to the department is governed by the 26 provisions of Chapter 60 of Title 12 which provides the sole and 27 exclusive remedy for these procedures.” 28 29 D. Section 12-56-110 of the 1976 Code, as added by Act 76 of 30 1995, is amended to read: 31 32 “Section 12-56-110. The department shall may promulgate 33 regulations and prescribe forms and procedures necessary to 34 implement this chapter.” 35 36 E. All liabilities incurred and rights accrued before the effective 37 date of this section are unaffected by the provisions of this section. 38 39 F. Upon approval by the Governor, this section applies to a 40 liability incurred or a right accrued on and after that date. 41 42 SECTION 12. A.Section 12-20-105(C) of the 1976 Code, as last 43 amended by Act 151 of 1997, is further amended to read:1 [3834] 10 1 2 “(C) For the purpose of this section, ‘infrastructure’ means 3 improvements for water, sewer, gas, steam, electric energy, and 4 communication services made to a building or land which are 5 considered necessary, suitable, or useful to an eligible project. 6 These improvements include, but are not limited to: 7 (1) improvements to both public or private water and sewer 8 systems; 9 (2) improvements to both public or private electric, natural 10 gas, and telecommunication telecommunications systems 11 including, but not limited to, ones owned or leased by an electric 12 cooperative, electric utility, or electric supplier, as defined in 13 Chapter 27, Title 58; 14 (3) fixed transportation facilities including highway, road, 15 rail, water, and air; 16 (4) for a qualifying project under subsection (B)(2), 17 infrastructure improvements include industrial shell buildings and 18 the purchase of land for an office, business, commercial, or 19 industrial park which is constructed by a county or political 20 subdivision of this State.” 21 22 B. Section 12-36-2120 of the 1976 Code, as last amended by Act 23 419 of 1998, is further amended by adding an appropriately 24 numbered item at the end to read: 25 26 “( ) clothing and other attire required for working in a Class 27 100 or better as defined in Federal Standard 209E clean room 28 environment.” 29 30 C. Section 12-37-930(6)(c) of the 1976 Code, as added by Act 31 32 of 1995, is amended to read: 32 33 “(c) Electronic Interconnection Component Assembly Devices 34 for Computers and Computer Peripherals; semiconductors and 35 semiconductor devices; substrates; flat panel displays; and liquid 36 crystal displays……………………….……….30% 37 Includes the manufacture of interconnection component 38 assemblies and devices, semiconductors and semiconductor 39 devices, flat panel displays, and liquid crystal displays which are 40 incorporated in computers or computer peripherals, or other 41 electronic control applications, and telecommunications devices. 42 Computer peripherals include tape drives, compact disk read-only1 [3834] 11 1 memory systems, hard disks, drivers, tape streamers, monitors, 2 printers, routers, servers, and power supplies.” 3 4 D. The schedule in Section 12-37-930 of the 1976 Code, as last 5 amended by Act 231 of 1996, is further amended by adding an 6 appropriately numbered item at the end to read: 7 8 “( ) Class 100 or better as defined in Federal Standard 209E 9 Clean Room Modules and Associated Mechanical Systems, 10 Process Piping, Wiring, Environmental Systems, and Water 11 Purification Systems……………………..10% 12 Includes waffle flooring, wall and ceiling panels; foundation 13 improvements that isolate the clean room to control vibrations; 14 clean air handling and filtration systems; piping systems for fluids 15 and gases used in the manufacturing process and that touch the 16 product during the fabrication of semiconductors, flat panel 17 displays, and liquid crystal displays; process equipment energy 18 control systems; ultra pure water processing and waste water 19 recycling systems; and safety alarm and monitoring systems.” 20 21 E. Notwithstanding any other effective date provided in this act, 22 subsection A. of this section takes effect upon approval by the 23 Governor, and the remaining subsections take effect upon approval 24 by the Governor and apply for taxable years beginning after 1998. 25 26 SECTION 13. Section 2-7-71 of the 1976 Code, as last amended 27 by Act 82 of 1997, is further amended to read: 28 29 “Section 2-7-71. When a bill relating to state taxes is reported 30 out of a standing committee of the Senate or House of 31 Representatives for consideration, there must be attached and 32 printed as a part of the committee report a statement of the 33 estimated revenue impact of the bill on the finances of the State 34 certified by the Board of Economic Research Section of the State 35 Budget and Control Board Advisors. As used in this section, 36 ‘statement of estimated revenue impact’ means the consensus of 37 the persons executing the required statement as to the increase or 38 decrease in the net tax revenue to the State if the bill concerned is 39 enacted by the General Assembly. In preparing a statement, the 40 Board of Economic Research Section Advisors may request 41 technical advice of the Department of Revenue.” 421 [3834] 12 1 SECTION 14. A.Chapter 10 of Title 12 of the 1976 Code is 2 amended by adding: 3 4 “Section 12-10-81. (A) A business may claim a job 5 development credit as determined by this section if the: 6 (1) council approves the use of this section for the business; 7 (2) business qualifies pursuant to Section 12-10-50; and 8 (3) business is a tire manufacturer which has more than four 9 hundred twenty-five million dollars in capital invested in this State 10 and employs more than one thousand employees in this State and 11 which commits within a period of five years from the date of a 12 revitalization agreement, to invest an additional three hundred fifty 13 million dollars and create an additional three hundred fifty jobs in 14 this State qualifying for job development fees or credits pursuant 15 to current or future revitalization agreements. The council, in its 16 discretion, may extend the five-year period for two additional 17 years if the business has made a commitment to the additional 18 three hundred-fifty million dollars and makes substantial progress 19 toward satisfying the goal before the end of the initial five-year 20 period. A business that represents to the council its intent to 21 qualify pursuant to this section and is approved by the council may 22 put job development fees computed pursuant to this section into an 23 escrow account until the date the business satisfies the capital and 24 job requirements of this section. The business may withdraw 25 funds from the escrow account or claim job development credits 26 pursuant to this section before satisfying the capital and job 27 requirements, so long as the business agrees to return the funds, 28 with interest, to the escrow account or to repay the job 29 development credits, with interest, if the capital and job 30 requirements are not satisfied. 31 (B)(1) A business qualifying pursuant to this section may claim 32 its job development credit against its withholding on its quarterly 33 state withholding tax return for the amount of job development 34 credit allowable. Job development credits allowed under 35 subsection (C)(1)(a) through (d) of this section apply only to 36 withholding on jobs created pursuant to a revitalization agreement 37 adopted under this section and to the amounts withheld on wages 38 and salaries on those jobs. The credit must be claimed on a 39 quarterly basis. To claim a job development credit, the business 40 must be current with respect to its withholding tax and other tax 41 due and owing the State, and must have maintained its minimum 42 employment requirement for the entire quarter.1 [3834] 13 1 (2) To be eligible to apply to the council to claim a job 2 development credit pursuant to this section, a qualifying business 3 must create at least ten new, full-time jobs at the South Carolina 4 facility or facilities described in the revitalization agreement. 5 (3) To the extent a return of an overpayment of withholding 6 that results from claiming job development credits is not used as 7 permitted by subsection (D), it must be treated as misappropriated 8 employee withholding. 9 (4) If a qualifying business claims job development credits 10 pursuant to this section, it must make its payroll books and records 11 available for inspection by the council and the department at the 12 times the council and the department request. Each qualifying 13 business claiming job development credits pursuant to this section 14 must file the job development credit and the use of any 15 overpayment of withholding resulting from the claiming of a job 16 development credit according to the revitalization agreement that 17 the council or department requests. Each qualifying business must 18 furnish an audited report prepared by an independent certified 19 public accountant which itemizes the sources and uses of the 20 funds. The audited report must be filed with the council and the 21 department no later than June thirtieth following the calendar year 22 in which the job development credits are claimed. An employer 23 may not claim an amount that results in an employee receiving a 24 smaller amount of wages on either a weekly or on an annual basis 25 than the employee would otherwise receive in the absence of this 26 chapter. 27 (C)(1) The maximum job development credit a qualifying 28 business may claim for new employees is determined by the sum 29 of the following amounts: 30 (a) two percent of the gross wages of each new employee 31 who earns $6.34 or more an hour but less than $8.45 an hour; 32 (b) three percent of the gross wages of each new 33 employee who earns $8.45 or more an hour but less than $10.57 an 34 hour; 35 (c) four percent of the gross wages of each new employee 36 who earns $10.57 or more an hour but less than $15.85 an hour; 37 (d) five percent of the gross wages of each new employee 38 who earns $15.85 or more an hour; and 39 (e) the increase in the state sales and use tax of the 40 business from the year of the effective date of its revitalization 41 agreement pursuant to this section and subsequent years, over its 42 state sales and use tax for the first of the three years preceding the 43 effective date of this revitalization agreement.1 [3834] 14 1 (2) The hourly gross wages in item (1) must be adjusted 2 annually by the inflation factor determined by the State Budget and 3 Control Board for the purposes of Section 12-10-80(3). The 4 amount which may be claimed by a qualifying business is limited 5 by the revitalization agreement. The business may proceed by 6 using either the job development fee escrow procedure available 7 pursuant to revitalization agreements with effective dates before 8 1997, or the job development credit, or a combination of the two. 9 For a business qualifying pursuant to this section, the council also 10 may approve or waive sections of a revitalization agreement and 11 the council’s rules as needed, in the council’s discretion, to assist 12 the business. 13 (D) To claim a job development credit, the qualifying business 14 must incur expenditures at the facility or for utility or 15 transportation improvements that serve the facility. The 16 expenditures must be incurred during the term of the revitalization 17 agreement or within sixty days before the execution of a 18 revitalization agreement including a preliminary revitalization 19 agreement authorized by the revitalization agreement, and used 20 for: 21 (1) training costs and facilities; 22 (2) acquiring and improving real estate whether constructed 23 or acquired by purchase, or in cases approved by the council, 24 acquired by lease or otherwise; 25 (3) improvements to both public and private utility systems 26 including water, sewer, electricity, natural gas, and 27 telecommunication; 28 (4) fixed transportation facilities including highway, rail, 29 water, and air; or 30 (5) construction or improvements of real property and 31 fixtures constructed or improved primarily for the purpose of 32 complying with local, state, or federal environmental laws or 33 regulations. 34 (E) A job development credit of a qualifying business 35 permanently lapses upon expiration or termination of the 36 revitalization agreement. If an employee is terminated, the 37 qualifying business immediately must cease to claim job 38 development credits. 39 (F) The statute of limitations provided by Section 12-54-85 is 40 suspended until the end of the five-year or seven-year period 41 described in item (3) of subsection (A) with respect to state 42 withholding taxes under this section for a business subject to this 43 section.”1 [3834] 15 1 2 B. This section applies to taxable years beginning after 1998. 3 Notwithstanding any provision to the contrary in this section, no 4 business shall be entitled to any benefits under a revitalization 5 agreement entered into under this section before July 1, 2000. 6 7 SECTION 15. Sections 11-27-40 and 11-27-50 of the 1976 Code 8 are amended to read: 9 10 “Section 11-27-40. The governing body of each of the political 11 subdivisions of the State shall be empowered to incur general 12 obligation debt for their respective political subdivisions as 13 permitted by Section 14 of New Article X and in accordance with 14 its provisions and limitations. All laws shall continue in force and 15 effect after the ratification date, but each of such laws is amended 16 as follows: 17 1. If no election be prescribed in such law and an election is 18 required by New Article X, then in every such instance, a majority 19 vote of the qualified electors of the political subdivision voting in 20 the referendum herein authorized is declared a condition precedent 21 to the issuance of bonds pursuant to such law. The governing 22 body of each of the political subdivisions shall be empowered to 23 order any such referendum as is required by New Article X or any 24 other provision of the Constitution, to prescribe the notice thereof 25 and to conduct or cause such referendum to be conducted in the 26 manner prescribed by Title 7, Code of Laws of South Carolina, 27 1976. 28 2. If an election be prescribed by the provisions of such law, but 29 is not required by the provisions of New Article X, then in every 30 such instance, no election need be held (notwithstanding the 31 requirement therefor in such law) and the remaining provisions of 32 such law shall constitute a full and complete authorization to issue 33 bond in accordance with such remaining provisions. 34 3. If a statutory debt limitation be prescribed by any such law, 35 then in lieu thereof, the debt limitation shall be that resulting from 36 the provisions of Section 14 of New Article X. 37 4. Notwithstanding any contrary provision in any law, any issue 38 of general obligation bonds maturing not later than eight ten years 39 from their date of issuance and in the amount of not exceeding one 40 million five hundred thousand dollars may be sold at private sale 41 and without advertisement, if not less than ten seven days prior to 42 their delivery, notice of intention to sell such bonds at private sale 43 shall be given by publication in a newspaper of general circulation1 [3834] 16 1 in such political subdivision. Such notice shall set forth the 2 purchaser, the purchase price, interest rates, and maturity schedule 3 of such bonds. 4 5. As permitted by paragraph 8 of Section 14 of New Article X, 5 all political subdivisions are authorized and empowered to incur 6 general obligation debt in anticipation of the collection of ad 7 valorem taxes or licenses (tax anticipation notes). Tax 8 anticipation notes shall be expressed to mature not later than ninety 9 days from the date on which such taxes or license fees may be paid 10 without penalty. In the case of counties and incorporated 11 municipalities, tax anticipation notes shall be issued pursuant to an 12 ordinance adopted in the manner provided by law. In the case of 13 any special purpose district, tax anticipation notes may be 14 authorized by a resolution of its governing body but such action 15 shall be authorized, approved, or ratified by an ordinance of the 16 governing body or governing bodies (as the case may be) of the 17 county or counties wherein such special purpose district is situate. 18 The provisions of this item shall take effect upon May 30, 1977. 19 6. The provisions of Chapter 17 of Title 11, relating to the 20 issuance of bond anticipation notes, shall continue in force and 21 effect after the ratification with respect to all political subdivisions 22 and the governing body of each political subdivision is hereby 23 authorized and empowered to issue bond anticipation notes 24 pursuant to and in accordance with the provisions of that chapter 25 and the limitations imposed by paragraph 9 of Section 14 of New 26 Article X. 27 7. All laws now in force permitting any political subdivisions to 28 incur indebtedness (and to issue bonds or other evidences of debt) 29 which shall be payable solely from a revenue-producing project or 30 from a special source, which source does not involve revenues 31 from any tax or license, shall continue in force and effect after the 32 ratification date. Evidences of such indebtedness shall contain a 33 statement on the face thereof specifying the sources from which 34 payment is to be made and shall state that the full faith, credit, and 35 taxing powers of the issuer are not pledged therefor. 36 Any law containing any provisions inconsistent herewith 37 (including Chapter 19 of Title 11, as amended) is herewith 38 amended by the removal therefrom of such inconsistent provisions. 39 8. The initiative and referendum provisions contained in Article 40 13, Chapter 9 of Title 4 and Chapter 17 of Title 5 of the 1976 41 Code, shall not be applicable to any other ordinance authorizing 42 the issuance of general obligation bonds unless a notice, signed by 43 not less than five qualified electors, of the intention to seek a1 [3834] 17 1 referendum, be filed both in the office of the clerk of court of the 2 county wherein such political subdivision is situate and with the 3 clerk or other recording officer of the political subdivision. Such 4 notices of intention to seek a referendum shall be so filed within 5 twenty days following the publication by the governing body of 6 the political subdivision of notice in a newspaper of general 7 circulation in such political subdivision of the adoption of such 8 ordinance. 9 9. Notwithstanding any other provision of law, a political 10 subdivision may issue general obligation bonds in accordance with 11 one or more of the following provisions: 12 (a) The principal amount of the bonds maturing in a given 13 year shall be in an amount as prescribed by the governing body of 14 the political subdivision. The first maturing bonds of an issue shall 15 mature within five years from the date on which they are issued; 16 and no bond shall mature later than thirty years from the date on 17 which it is issued. 18 (b) The bonds shall be sold at public sale, after 19 advertisement of the sale in a newspaper having general circulation 20 in the State or in a financial publication published in the City of 21 New York. The advertisement must appear not less than seven 22 days prior to the date set for the sale. The advertisement may set 23 as a sale date a fixed date not less than seven days following 24 publication, or the advertisement may advise that the sale date will 25 be at least seven days following the date of publication. If a fixed 26 date of sale is not set forth in the notice of sale published in 27 accordance with this subitem, the date selected for the receipt of 28 bids must be disseminated via an electronic information service at 29 least forty - eight hours prior to the time set for the receipt of bids. 30 If a fixed date of sale is set forth in the notice of sale, it may be 31 modified by notice disseminated via an electronic information 32 service at least forty - eight hours prior to the time set for the receipt 33 of bids on the modified date of sale. No bonds may be sold 34 pursuant to this subitem on a date that is more than sixty days after 35 the date of the most recent publication of the notice of sale. Bids 36 for the purchase of bonds may be received in such form as 37 determined by the governing body of the issuer. 38 (c) The bonds may be disposed of at private sale if there are 39 no bids received or if all bids are rejected. The provisions of this 40 section shall not prevent a sale at private sale to the United States 41 of America or any agency thereof. 42 (d) Bonds issued pursuant to this section may be issued with 43 a provision for their redemption prior to their maturity at par and1 [3834] 18 1 accrued interest, plus such redemption premium as may be 2 prescribed by the governing body of the issuer, but no bond shall 3 be redeemable before maturity unless it contains a statement to that 4 effect. In the proceedings authorizing the issuance of the bonds, 5 provisions shall be made specifying the manner of call and the 6 notice that must be given. 7 8 Section 11-27-50. The board of trustees or other governing 9 body (the governing body) of each of the school districts of the 10 State shall be empowered to incur general obligation debt for their 11 respective school districts as permitted by Section 15 of New 12 Article X and in accordance with its provisions and limitations. 13 All laws relating to such matters shall continue in force and effect 14 after the ratification date, but all such laws are amended as 15 follows: 16 1. If no election be prescribed in such law and an election is 17 required by New Article X, then in every such instance, a majority 18 vote of the qualified electors of the school district voting in the 19 referendum herein authorized is declared a condition precedent to 20 the issuance of bonds pursuant to such law. The governing body 21 of each of the school districts shall be empowered to order any 22 such referendum as is required by New Article X or any other 23 provisions of the Constitution, to prescribe the notice thereof and 24 to conduct or cause to be conducted such referendum in the 25 manner prescribed by Article 1, Chapter 71, Title 59, Code of 26 Laws of South Carolina, 1976. 27 2. If an election be prescribed by the provisions of such law, but 28 is not required by the provisions of New Article X, then in every 29 such instance, no election need be held and the remaining 30 provisions of such law shall constitute a full and complete 31 authorization to issue bonds in accordance with such remaining 32 provisions; provided, however, in no event shall the consent of any 33 other body be required as a condition to the issuance of any 34 general obligation bonds of a school district. 35 3. If a statutory debt limitation be prescribed by any such law, 36 then in lieu thereof, the debt limitation shall be that resulting from 37 the provisions of Section 15 of New Article X. 38 4. As permitted by paragraph 7 of Section 15 of New Article X, 39 all school districts are authorized and empowered to incur general 40 obligation debt in anticipation of the collection of ad valorem taxes 41 (tax anticipation notes). Tax anticipation notes shall be expressed 42 to mature not later than ninety days from the date as of which such1 [3834] 19 1 taxes may be paid without penalty. Tax anticipation notes shall be 2 issued pursuant to a resolution adopted by the governing body. 3 5. The provisions of Chapter 17 of Title 11, relating to the 4 issuance of bond anticipation notes, shall continue in force and 5 effect after the ratification date with respect to all school districts 6 and the governing body of each school district is hereby authorized 7 and empowered to issue bond anticipation notes pursuant to and in 8 accordance with the provisions of Chapter 17 of Title 11 and the 9 limitations imposed by paragraph 8 of Section 15 of New Article 10 X. 11 6. Notwithstanding provision of law to the contrary, an issue of 12 general obligation bonds maturing not later than ten years from 13 their date of issuance and in the amount of not exceeding one 14 million five hundred thousand dollars may be sold at private sale 15 and without advertisement, if not less than seven days prior to their 16 delivery, notice of intention to sell such bonds at private sale is 17 given by publication in a newspaper of general circulation in the 18 school district. Such notice shall set forth the purchaser, the 19 purchase price, interest rates, and maturity schedule of such bonds. 20 7. Notwithstanding any other provision of law, a school district 21 may issue general obligation bonds in accordance with one or 22 more of the following provisions: 23 (a) The principal amount of the bonds maturing in a given 24 year shall be in an amount as prescribed by the governing body. 25 The first maturing bonds of an issue shall mature within five years 26 from the date on which they are issued; and no bond shall mature 27 later than thirty years from the date on which it is issued. 28 (b) The bonds shall be sold at public sale, after 29 advertisement of the sale in a newspaper having general circulation 30 in the State or in a financial publication published in the City of 31 New York or, in the discretion of the authorities, in both 32 publications. The advertisement must appear not less than seven 33 days prior to the date set as a sale date for the sale. The 34 advertisement may set a fixed date not less than seven days 35 following publication, or the advertisement may advise that the 36 sale date will be at least seven days following the date of 37 publication. If a fixed date of sale is not set forth in the notice of 38 sale published in accordance with this subitem, the date selected 39 for the receipt of bids must be disseminated via an electronic 40 information service at least forty - eight hours prior to the time set 41 for the receipt of bids. If a fixed date of sale is set forth in this 42 notice of sale, it may be modified by notice disseminated via an 43 electronic information service at least forty - eight hours prior to the1 [3834] 20 1 time set for the receipt of bids on the modified date of sale. No 2 bonds may be sold pursuant to this section on a date that is more 3 than sixty days after the date of the most recent publication of the 4 notice of sale. Bids for the purchase of bonds may be received in 5 such form as determined by the governing body of the issuer. 6 (c) The bonds may be disposed of at private sale if there are 7 no bids received or if all bids are rejected. The provisions of this 8 section shall not prevent a sale at private sale to the United States 9 of America or any agency thereof. 10 (d) Any bonds issued pursuant to this section may be issued 11 with a provision for their redemption prior to their maturity at par 12 and accrued interest, plus such redemption premium as may be 13 prescribed by the governing body of the issuer, but no bond shall 14 be redeemable before maturity unless it contains a statement to that 15 effect. In the proceedings authorizing the issuance of the bonds, 16 provisions shall be made specifying the manner of call and the 17 notice that must be given.” 18 19 SECTION 16. Section 11-15-440 of the 1976 Code is amended 20 to read: 21 22 “Section 11-15-440. The governing body of any issuer may 23 issue general obligation bonds of such issuer to such extent as such 24 issuer shall be indebted by way of principal, interest, and 25 redemption premium upon any outstanding general obligation or 26 revenue bonds, maturing or called for redemption, less all sinking 27 funds and other moneys on hand applicable thereto. The issuer 28 may utilize the provisions of Sections 11 - 27 - 40 and 11 - 27 - 50 in 29 connection with the issuance of such refunding bonds.” 30 31 SECTION 17. Chapter 37, Title 5 of the 1976 Code is amended 32 to read: 33 34 “CHAPTER 37 35 36 Section 5-37-10. This chapter may be referred to as ‘the 37 ‘Municipal Improvement Act of 1973 1999,’’, and any municipal 38 corporation of this State is hereby authorized to exercise the 39 powers and provisions hereof. 40 41 Section 5-37-20. As used in this chapter, the following terms 42 shall have the following meanings:1 [3834] 21 1 (1) Àssessment’ means a charge against the real property of 2 an owner within an improvement district created pursuant to this 3 chapter which is based either on assessed value, front footage, 4 area, per parcel basis, the value of improvements to be constructed 5 within the district, or any combination of them, as the basis is 6 determined by the governing body of the municipality. In the 7 event the governing body of a municipality determines that another 8 basis for assessment is appropriate or a more equitable allocation 9 of costs among property owners is appropriate, it may substitute 10 such method for any of the foregoing. An assessment imposed 11 upon real property under this chapter remains valid and 12 enforceable in accordance with the provisions of this chapter even 13 if there is a later subdivision and transfer of the property or a part 14 of it. An improvement plan may provide for a change in the basis 15 of assessment upon the subdivision and transfer of real property or 16 upon such other event as the governing body of a municipality 17 considers appropriate. 18 (2) Ìmprovements’ include open or covered malls, parkways, 19 parks and playgrounds, recreation facilities, athletic facilities, 20 pedestrian facilities, parking facilities, parking garages, and 21 underground parking facilities, and facade redevelopment, the 22 widening and dredging of existing channels, canals, and waterways 23 used specifically for recreational or other purposes, the relocation, 24 construction, widening, and paving of streets, roads, and bridges, 25 including demolition of them, underground utilities, all activities 26 authorized by Chapter 1 of Title 31 (State Housing Law), any 27 building or other facilities for public use, any public works eligible 28 for financing under the provisions of Section 6-21-50, and all 29 things incidental to the improvements, including planning, 30 engineering, administration, managing, promotion, marketing, and 31 acquisition of necessary easements and land, and may include 32 facilities for lease or use by a private person, firm, or corporation. 33 However, improvements as defined in this chapter must comply 34 with all applicable state and federal laws and regulations 35 governing these activities. Any such improvements may be 36 designated by the governing body as public works eligible for 37 revenue bond financing pursuant to Section 6-21-50, and such 38 improvements, taken in the aggregate, may be designated by the 39 governing body as a `system’ of related projects within the 40 meaning of Section 6-21-40. The governing body of a 41 municipality, after due investigation and study, may determine that 42 improvements located outside the boundaries of an improvement 43 district confer a benefit upon property inside an improvement1 [3834] 22 1 district or are necessary to make improvements within the 2 improvement district effective for the benefit of property inside the 3 improvement district. 4 (3) Ìmprovement district’ means any area within the 5 municipality designated by the governing body pursuant to the 6 provisions of this chapter and within which an improvement plan 7 is to be accomplished. No special improvement district may 8 include the grounds of the State House in the City of Columbia. 9 (4) Ìmprovement plan’ means an overall plan by which the 10 governing body proposes to effect improvements within an 11 improvement district to preserve property values, prevent 12 deterioration of urban areas, and preserve the tax base of the 13 municipality, and includes an overall plan by which the governing 14 body proposes to effect improvements within an improvement 15 district in order to encourage and promote private or public 16 development within the improvement district. 17 (5) `Governing body’ shall mean means the municipal council 18 or other governing body in which the general governing powers of 19 the municipality are vested. 20 (6) Òwner’ is defined as any person twenty-one years of age, 21 or older, or the proper legal representative for any person younger 22 than twenty-one years of age, and any firm or corporation, who or 23 which owns legal title to a present possessory interest in real estate 24 equal to a life estate or greater (expressly excluding leaseholds, 25 easements, equitable interests, inchoate rights, dower rights, and 26 future interest) and who owns, at the date of the petition or written 27 consent, at least an undivided one-tenth interest in a single tract 28 and whose name appears on the county tax records as an owner of 29 real estate, and any duly organized group whose total interest is at 30 least equal to a one-tenth interest in a single tract. 31 It is provided, however, that, if any firm or person has a 32 leasehold interest requiring it or him to pay all municipal taxes, 33 such agreement shall not be applicable to charges of the 34 assessment of the district as only the owner has the right to petition 35 on the assessment charge for the improvement district. 36 37 Section 5-37-25. A municipality must obtain the consent of 38 the county governing body and any other municipality where the 39 improvement is located to use revenue collected pursuant to this 40 chapter for improvements located outside the municipal 41 boundaries in which the improvement district is located. 421 [3834] 23 1 Section 5-37-30. The governing body is authorized, within the 2 corporate limits of the city, to acquire, own, construct, establish, 3 install, enlarge, improve, expand, operate, maintain and repair, and 4 sell, lease, and otherwise dispose of any improvement and to 5 finance such acquisition, construction, establishment, installation, 6 enlargement, improvement, expansion, operation, maintenance, 7 and repair, in whole or in part, by the imposition of assessments in 8 accordance with this chapter, by special district bonds, by general 9 obligation bonds of the municipality, or revenue bonds of the 10 municipality from general revenues from any source not restricted 11 from such use by law, or by any combination of such funding 12 sources. In addition to any other authorization provided herein or 13 by other law, the governing body of a municipality may issue its 14 special district bonds or revenue bonds of the municipality under 15 such terms and conditions as the governing body may determine 16 by ordinance subject to the following: such bonds may be sold at 17 public or private sale for such price as is determined by the 18 governing body; such bonds may be secured by a pledge of and be 19 payable from the assessments authorized herein or any other 20 source of funds not constituting a general tax as may be available 21 and authorized by the governing body; such bonds may be issued 22 pursuant to and secured under the terms of a trust agreement or 23 indenture with a corporate trustee and the ordinance authorizing 24 such bonds or trust agreement or indenture pertaining thereto may 25 contain provisions for the establishment of a reserve fund, and 26 such other funds or accounts as are determined by the governing 27 body to be appropriate to be held by the governing body or the 28 trustee. The proceeds of any bonds may be applied to the payment 29 of the costs of any improvements, including expenses associated 30 with the issuance and sale of the bonds and any costs for planning 31 and designing the improvements or planning or arranging for the 32 financing and any engineering, architectural, surveying, testing, or 33 similar costs or expenses necessary or appropriate for the planning, 34 designing, and construction or implementation of any plan in 35 connection with the improvements. 36 37 Section 5-37-40. (A) If the governing body finds that: 38 (1) improvements would be beneficial within a designated 39 improvement district; 40 (2) the improvements would preserve or increase property 41 values within the district; 42 (3) in the absence of the improvements, property values 43 within the area would be likely to depreciate, or that the proposed1 [3834] 24 1 improvements would be likely to encourage development in the 2 improvement district; 3 (4) the general welfare and tax base of the city would be 4 maintained or likely improved by creation of an improvement 5 district in the city; and 6 (5) it would be fair and equitable to finance all or part of the 7 cost of the improvements by an assessment upon the real property 8 within the district, the governing body may establish the area as an 9 improvement district and implement and finance, in whole or in 10 part, an improvement plan in the district in accordance with the 11 provisions of this chapter. However, no residential property shall 12 be included as part of an improvement district unless the owner of 13 the residential property gives the governing body written 14 permission to include his property within the district. 15 (B) If an improvement district is located in a redevelopment 16 project area created under Title 31, Chapter 6, the improvement 17 district being created under the provisions of this chapter must be 18 considered to satisfy items (1) through (5) of subsection (A). The 19 ordinance creating an improvement district may be adopted by a 20 majority of council after a public hearing at which the plan is 21 presented, including the proposed basis and amount of assessment, 22 or upon written petition signed by a majority in number of the 23 owners of real property within the district which is not exempt 24 from ad valorem taxation as provided by law. However, no 25 residential property shall be included as part of an improvement 26 district unless the owner of the residential property gives the 27 governing body written permission to include his property within 28 the district. 29 30 Section 5-37-45. The governing body may include within an 31 improvement district an area within the municipality in which the 32 proposed improvements have been constructed or are under 33 construction at the time of the establishment of the improvement 34 district. Before the commencement of the construction of these 35 improvements, a written agreement with the owner of the area to 36 be improved is entered into by the municipality authorizing the 37 construction of the improvements in anticipation of the inclusion 38 of the area which is improved in the improvement district upon 39 such terms and conditions as the governing body agrees, including 40 the reimbursement, as a cost of constructing improvements under 41 this chapter, of any monies expended for the construction before 42 and subsequent to the establishment of the improvement district. 43 Any agreement providing for the construction of the improvements1 [3834] 25 1 before the establishment of the improvement district must be 2 authorized by an ordinance of the governing body, notice of which 3 must be given by publication in a newspaper of general circulation 4 within the municipality, appearing at least seven days before the 5 final adoption of the ordinance. Any agreements entered into in 6 accordance with the foregoing conditions before the effective date 7 of this section are ratified and confirmed and the area improved 8 declared eligible for inclusion in the improvement district as 9 proposed in the agreement. 10 11 Section 5-37-50. The governing body shall, by resolution duly 12 adopted, describe the improvement district and the improvement 13 plan to be effected therein, including any property within the 14 improvement district to be acquired and improved, the projected 15 time schedule for the accomplishment of the improvement plan, 16 the estimated cost thereof and the amount of such cost to be 17 derived from assessments, bonds, or other general funds, together 18 with the proposed basis and rates of any assessments to be 19 imposed within the improvement district. However, no residential 20 property shall be included as part of an improvement district unless 21 the owner of the residential property gives the governing body 22 written permission to include his property within the district. Such 23 resolution shall also establish the time and place of a public 24 hearing to be held within the municipality not sooner than twenty 25 days nor more than forty days following the adoption of such 26 resolution at which any interested person may attend and be heard 27 either in person or by attorney on any matter in connection 28 therewith. 29 30 Section 5-37-60. A resolution providing for an improvement 31 district, when adopted, shall be published once a week for two 32 successive weeks in a newspaper of general circulation within the 33 incorporated municipality and the final publication shall be at least 34 ten days prior to the date of the scheduled public hearing. At the 35 public hearing and at any adjournment thereof, all interested 36 persons may be heard either in person or by attorney. 37 38 Section 5-37-70. The governing body may provide by the 39 resolution for the payment of the cost of the improvements and 40 facilities to be constructed within the improvement district by 41 assessments on the property therein as defined in Section 5-37-20, 42 or by the issuance of special district bonds, or by general 43 obligation bonds of the municipality, or from general municipal1 [3834] 26 1 revenues from any source not restricted from such use by law, or 2 from any combination of such financing sources as may be 3 provided in the improvement plan. 4 5 Section 5-37-80. The financing of improvements by 6 assessments, bonds, or other revenues, and the proportions thereof, 7 shall be in the discretion of the governing body; and the rates of 8 assessments upon property owners within the improvement district 9 need not be uniform but may vary in proportion to improvements 10 made immediately adjacent to or abutting upon the property of 11 each owner therein, as well as other bases as provided in Section 12 5-37-20. 13 14 Section 5-37-90. The improvements as defined in Section 15 5-37-20 are to be or become the property of the municipality, 16 State, or other public entity and may at any time be removed, 17 altered, changed, or added to, as the governing body may in its 18 discretion determine; provided, that during the continuance or 19 maintenance of the improvements, the special assessments on 20 property therein may be utilized for the preservation, operation, 21 and maintenance of the improvements and facilities provided in 22 the improvement plan, and for the management and operation of 23 the improvement district as provided in the improvement plan, and 24 for payment of indebtedness incurred therefor. 25 26 Section 5-37-100. Not sooner than ten days nor more than one 27 hundred twenty days following the conclusion of the public 28 hearing provided in Section 5-37-50, the governing body may, by 29 ordinance, provide for the creation of the improvement district as 30 originally proposed or with such changes and modifications therein 31 as the governing body may determine, and provide for the 32 financing thereof by assessment, bonds, or other revenues as 33 herein provided. However, no residential property shall be 34 included as part of an improvement district unless the owner of the 35 residential property gives the governing body written permission to 36 include his property within the district. Such ordinance shall not 37 become effective until at least seven days after it has been 38 published in a newspaper of general circulation in the 39 municipality. Such ordinance may incorporate by reference plats 40 and engineering reports and other data on file in the offices of the 41 municipality; provided, that the place of filing and reasonable 42 hours for inspection are made available to all interested persons. 431 [3834] 27 1 Section 5-37-110. In the event all or any part of improvements 2 and facilities within the district are to be financed by assessments 3 on property therein, the governing body shall prepare an 4 assessment roll in which there shall be entered the names of the 5 persons whose properties are to be assessed and the amount 6 assessed against their respective properties with a brief description 7 of the lots or parcels of land assessed. Immediately after such 8 assessment roll has been completed the governing body shall cause 9 one copy thereof to be deposited in the offices of the municipality 10 for inspection by interested parties, and shall cause to be published 11 at least once in a newspaper of general circulation within the 12 municipality a notice of completion of the assessment roll setting 13 forth a description in general terms of the improvements and 14 providing at least ten days’ notice of the time fixed for hearing of 15 objections in respect to such assessments. The time for hearing 16 such objections shall be at least thirty days, and hearings may be 17 conducted by one or more members of the governing body of the 18 municipality, but the final decision on each such objection shall be 19 made by vote of the whole governing body at a public session 20 thereof. 21 22 Section 5-37-120. As soon as practicable after the completion 23 of the assessment roll and prior to the publication of the notice 24 provided in Section 5-37-110, the governing body shall mail by 25 registered or certified mail, return receipt requested, to the owner 26 or owners of each lot or parcel of land against which an assessment 27 is to be levied, at the address appearing on the records of the city 28 or county treasurer, a notice stating the nature of the improvement, 29 the total proposed cost thereof, the amount to be assessed against 30 the particular property and the basis upon which the assessment is 31 made, together with the terms and conditions upon which the 32 assessment may be paid. The notice shall contain a brief 33 description of the particular property involved, together with a 34 statement that the amount assessed shall constitute a lien against 35 the property superior to all other liens except property taxes. The 36 notice shall also state the time and place fixed for the hearing of 37 objections in respect to the assessment. Any property owner who 38 fails to file with the municipal council a written objection to the 39 assessment against his property within the time provided for 40 hearing such objections shall be deemed to have consented to such 41 assessment, and the published and written notices prescribed in 42 this chapter shall so state. If all of the owners of property upon 43 which an assessment is to be levied consent in writing to the1 [3834] 28 1 imposition of such assessment, the provisions of this section shall 2 be deemed satisfied. 3 4 Section 5-37-130. The governing body shall hear the objections 5 as provided herein of all persons who have filed written notice of 6 objection within the time prescribed and who may appear and 7 make proof in relation thereto either in person or by their attorney. 8 The governing body, at the sessions held to make final decisions 9 on objections, may thereupon make such corrections in the 10 assessment roll as it may deem proper and confirm the same, or set 11 it aside and provide for a new assessment. Whenever the 12 governing body shall confirm an assessment, either as originally 13 prepared or as thereafter corrected, a copy thereof certified by the 14 clerk of the municipality shall be filed in the office of the clerk of 15 court of the county in which the municipality is situate, and from 16 the time of such filing the assessment impressed in the assessment 17 roll shall constitute and be a lien on the real property against which 18 it is assessed superior to all other liens and encumbrances, except 19 the lien for property taxes, and shall be annually assessed and 20 collected with the property taxes thereon. 21 22 Section 5-37-140. Upon the confirmation of an assessment, if 23 any, the governing body shall mail a written notice to all persons 24 who have filed written objections as hereinabove provided of the 25 amount of the assessment finally confirmed. Such property owner 26 may appeal such assessment only if he shall, within twenty days 27 after the mailing of the notice to him confirming the assessment, 28 give written notice to the governing body of his intent to appeal his 29 assessment to the court of common pleas of the county in which 30 the property is situate; but no such appeal shall delay or stay the 31 construction of improvements or affect the validity of the 32 assessments confirmed and not appealed. Appeals shall be heard 33 and determined on the record, in the manner of appeals from 34 administrative bodies in this State. 35 36 Section 5-37-150. Nothing contained herein shall be construed 37 to limit or restrict the powers of any incorporated municipality, but 38 the authorizations herein contained shall be in addition to any such 39 powers. 40 41 Section 5-37-160. Any written petition or consent signed by a 42 property owner prior to July 18, 1974, requesting or consenting to 43 an assessment in an improvement district shall be effective and1 [3834] 29 1 binding upon said property and property owner and all acts of any 2 municipality taken under any other law shall be effective and 3 binding upon all property owners in an improvement district. 4 5 Section 5-37-170. No street in the State highway system shall 6 be included in a mall development without prior written approval 7 of the South Carolina Highway Commission. 8 9 Section 5-37-180. No street which is located in front of the 10 county courthouse and adjacent thereto shall be included in the 11 mall development without prior written approval of the governing 12 body having jurisdiction over such public property. Likewise, no 13 street which shall in effect block the entrance to the courthouse 14 square shall be included in the mall complex without prior written 15 approval of same governing body.” 16 17 SECTION 18. Title 12 of the 1976 Code is amended by adding: 18 19 “CHAPTER 46 20 21 Tax Increment Financing for Counties 22 23 Section 12-46-10. This chapter may be cited as the ‘Tax 24 Increment Financing Act for Counties’. 25 26 Section 12-46-20. (A) The General Assembly finds that: 27 (1) Section 14(10) of Article X of the Constitution of South 28 Carolina provides that the General Assembly may authorize by 29 general law that indebtedness for the purpose of redevelopment 30 within counties may be incurred and that the debt service of such 31 indebtedness be provided from the added increments of tax 32 revenues to result from the project. 33 (2) An increasing demand for public services must be 34 provided from a limited tax base. Incentives must be provided for 35 redevelopment in areas which are, or threaten to become, 36 predominantly slum or blighted. 37 (3) There exist in many counties of this State blighted, 38 conservation, and sprawl areas; the sprawl and conservation areas 39 are rapidly deteriorating and declining and may soon become 40 blighted areas if their decline is not checked; the stable economic 41 and physical development of the blighted areas, conservation 42 areas, and sprawl areas are endangered by the presence of blighting 43 factors as manifested by progressive and advanced deterioration of1 [3834] 30 1 structures, by the overuse of housing and other facilities, by a lack 2 of physical maintenance of existing structures, by obsolete and 3 inadequate community facilities, and a lack of sound community 4 planning, by obsolete platting, diversity of ownership, excessive 5 tax, and special assessment delinquencies, or by a combination of 6 these factors; that as a result of the existence of blighted areas, 7 areas requiring conservation, and sprawl areas, there is an 8 excessive and disproportionate expenditure of public funds, 9 inadequate public and private investment, unmarketability of 10 property, growth in delinquencies and crime, and housing and 11 zoning law violations in such areas together with an abnormal 12 exodus of families and businesses so that the decline of these areas 13 impairs the value of private investments and threatens the sound 14 growth and the tax base of taxing districts in such areas, and 15 threatens the health, safety, morals, and welfare of the public. 16 (4) In order to promote and protect the health, safety, 17 morals, and welfare of the public, blighted conditions need to be 18 eradicated and conservation measures instituted, sprawl areas 19 controlled, and redevelopment of such areas undertaken; to remove 20 and alleviate adverse conditions it is necessary to encourage 21 private investment and restore and enhance the tax base of the 22 taxing districts in such areas by the redevelopment of project areas. 23 The eradication of blighted areas and treatment and improvement 24 of sprawl areas and conservation areas by redevelopment projects 25 is declared to be essential to the public interest. 26 (5) The use of incremental tax revenues derived from the tax 27 rates of various taxing districts in redevelopment project areas for 28 the payment of redevelopment project costs is of benefit to the 29 taxing districts because taxing districts located in redevelopment 30 project areas would not derive the benefits of an increased 31 assessment base without the benefits of tax increment financing, 32 all surplus tax revenues are turned over to the taxing districts in 33 redevelopment project areas, and all taxing districts benefit from 34 the removal of blighted conditions, the eradication of conditions 35 requiring conservation measures, and control of sprawl conditions. 36 (B) The General Assembly intends to implement the 37 authorization granted in Article X, Section 14 of the Constitution 38 of this State. The authorization in this chapter provides for this 39 State an essential method for financing redevelopment. The 40 governing bodies of the counties are vested with all powers 41 consistent with the Constitution necessary, useful, and desirable to 42 enable them to accomplish redevelopment in areas which are or 43 threaten to become blighted and to sufficiently meet all1 [3834] 31 1 constitutional requirements pertaining to incurring indebtedness 2 for the purpose of redevelopment and funding the debt service of 3 such indebtedness from the added increment of tax revenues to 4 result from such redevelopment as provided in Section 14(10) of 5 Article X of the Constitution of this State. The indebtedness 6 incurred pursuant to Section 14(10) of Article X of the 7 Constitution is exempt from all debt limitations imposed by Article 8 X. The powers granted in this chapter must be in all respects 9 exercised for the benefit of the inhabitants of the State, for the 10 increase of its commerce, and for the promotion of its welfare and 11 prosperity. 12 (C) All action taken by any county in carrying out the purposes 13 of this chapter shall perform essential governmental functions. 14 (D) Pursuant to the authorization granted in Article VIII, 15 Section 13, of the Constitution of this State, if a redevelopment 16 project area is located in more than one county, the powers granted 17 herein may be exercised jointly. 18 19 Section 12-46-30. Unless the context clearly indicates 20 otherwise: 21 (1) ‘Blighted area’ means any improved or vacant area within 22 the boundaries of a redevelopment project area located within the 23 territorial limits of a county where: 24 (a) if improved, industrial, commercial, and residential 25 buildings or improvements, because of a combination of five or 26 more of the following factors: age; dilapidation; obsolescence; 27 deterioration; illegal use of individual structures; presence of 28 structures below minimum code standards; excessive vacancies; 29 overcrowding of structures and community facilities; lack of 30 ventilation, light, or sanitary facilities; inadequate utilities; 31 excessive land coverage; deleterious land use or layout; 32 depreciation of physical maintenance; lack of community 33 planning, are detrimental to the public safety, health, morals, or 34 welfare or; 35 (b) if vacant, the sound growth is impaired by: 36 (i) a combination of two or more of the following factors: 37 obsolete platting of the vacant land; diversity of ownership of such 38 land; tax and special assessment delinquencies on such land; 39 deterioration of structures or site improvements in neighboring 40 areas adjacent to the vacant land; or 41 (ii) the area immediately prior to becoming vacant 42 qualified as a blighted area. Any area within a redevelopment plan1 [3834] 32 1 established by Chapter 10 of Title 31 is deemed to be a blighted 2 area. 3 (2) ‘Conservation area’ means any vacant or improved area 4 within the boundaries of a redevelopment project area located 5 within the territorial limits of a county that is not yet a blighted 6 area but, because of a combination of three or more of the 7 following factors: dilapidation; obsolescence; deterioration; illegal 8 use of structures; presence of structures below minimum code 9 standards; abandonment; excessive vacancies; overcrowding of 10 structures and community facilities; lack of ventilation, light, or 11 sanitary facilities; inadequate utilities; excessive land coverage; 12 depreciation of physical maintenance; or lack of community 13 planning, is detrimental to the public safety, health, morals, or 14 welfare and may become a blighted area. 15 (3) ‘Sprawl area’ means a vacant or improved area within the 16 boundaries of a redevelopment project area located within the 17 territorial limits of the unincorporated area of a county that is not 18 yet a blighted area nor a conservation area but, because of the 19 existence of one or more of the following conditions, has the 20 potential to become blighted or in need of conservation: 21 (a) The sprawl area is an unincorporated urban zone, UUZ, 22 which is an area within the unincorporated portion of the county 23 issuing the finding and has a population density equal to or greater 24 than the average population density of the incorporated 25 municipalities within the territorial limits of the county issuing the 26 finding. 27 (b) The sprawl area is a linear service zone, LSZ, which is 28 an area within the unincorporated portion of the county issuing the 29 finding which is or is likely to become an area no more than two 30 miles wide at its widest point and no less than three miles in length 31 and which, due to development within the zone, represents an 32 impediment to vehicular and pedestrian traffic so that the county 33 finds its existence a detriment to the: 34 ( i) economic health and well-being of the county; 35 ( ii) health or safety of the persons living, working, or 36 traveling through the zone; or 37 (iii) efficient provision of governmental services both 38 within and without the zone. 39 (c) The sprawl area is a rural redevelopment zone, RRZ, 40 which is an area within the unincorporated portion of the county 41 issuing the finding which consists primarily of vacant land which, 42 if provided with certain environmental, energy, transportation, or 43 communications infrastructure, could be developed as a planned1 [3834] 33 1 community consisting of a minimum of one thousand contiguous 2 acres of land, inclusive of flooded land. 3 (4) ‘Municipality means an incorporated municipality of this 4 State. 5 (5) ‘Obligations’ means bonds, notes, or other evidence of 6 indebtedness issued by the county to carry out a redevelopment 7 project or to refund outstanding obligations. 8 (6) ‘Redevelopment plan’ means the comprehensive program 9 of the county for redevelopment intended by the payment of 10 redevelopment costs to reduce or eliminate those conditions which 11 qualified the redevelopment project area as a blighted area, 12 conservation area, or sprawl area, or combination of two or three 13 of them, and to enhance the tax bases of the taxing districts which 14 extend into the project redevelopment area. Each redevelopment 15 plan shall set forth in writing the program to be undertaken to 16 accomplish the objectives and shall include, but not be limited to, 17 estimated redevelopment project costs, the anticipated sources of 18 funds to pay costs, the nature and term of any obligations to be 19 issued, the most recent equalized assessed valuation of the project 20 area, an estimate as to the equalized assessed valuation after 21 redevelopment, and the general land uses to apply in the 22 redevelopment project area. A redevelopment plan established by 23 Chapter 10 of Title 31 is deemed a redevelopment plan for 24 purposes of this paragraph. 25 (7) ‘Redevelopment project’ means any buildings, 26 improvements, including street improvements, water, sewer and 27 storm drainage facilities, parking facilities, and recreational 28 facilities. Any project or undertaking authorized under Section 29 6-21-50 may also qualify as a redevelopment project under this 30 chapter. All such projects are to be publicly owned. 31 (8) ‘Redevelopment project area’ means an area designated by 32 the county, which is not less in the aggregate than one and one-half 33 acres and in respect to which the county has made a finding that 34 there exist conditions that cause the area to be classified as a 35 blighted area, a conservation area, or a sprawl area, or a 36 combination of two or three of them. The total aggregate amount 37 of all redevelopment project areas of any one county may not 38 exceed five percent of the total acreage of the county. 39 (9) ‘Redevelopment project costs’ means and includes the sum 40 total of all reasonable or necessary costs incurred or estimated to 41 be incurred and any costs incidental to a redevelopment project. 42 The costs include, without limitation:1 [3834] 34 1 (a) costs of studies and surveys, plans, and specifications; 2 professional service costs including, but not limited to, 3 architectural, engineering, legal, marketing, financial, planning, or 4 special services; 5 (b) property assembly costs including, but not limited to, 6 acquisition of land and other property, real or personal, or rights or 7 interest therein, demolition of buildings, and the clearing and 8 grading of land; 9 (c) costs of rehabilitation, reconstruction, repair, or 10 remodeling of a redevelopment project; 11 (d) costs of the construction of a redevelopment project; 12 (e) financing costs including, but not limited to, all 13 necessary and incidental expenses related to the issuance of 14 obligations and which may include payment of interest on any 15 obligations issued under the provisions of this chapter accruing 16 during the estimated period of construction of any redevelopment 17 project for which the obligations are issued and including 18 reasonable reserves related thereto; 19 (f) relocation costs to the extent that a county determines 20 that relocation costs must be paid or required by federal or state 21 law. 22 (10) ‘Taxing districts’ means counties, incorporated 23 municipalities, schools, special purpose districts, and public and 24 any other municipal corporations or districts with the power to 25 levy taxes. Taxing districts include school districts which have 26 taxes levied on their behalf. 27 (11) ‘Vacant land’ means any parcel or combination of parcels 28 of real property without industrial, commercial, and residential 29 buildings. 30 (12) ‘County’ means any county in the State. 31 32 Section 12-46-40. Obligations secured by the special tax 33 allocation fund set forth in Section 12-46-70 for the redevelopment 34 project area may be issued to provide for redevelopment project 35 costs. The obligations, when so issued, must be retired in the 36 manner provided in the ordinance authorizing the issuance of the 37 obligations by the receipts of taxes levied as specified in Section 38 12-46-110 against the taxable property included in the area and 39 other revenue as specified in Section 12-46-110 designated by the 40 county which source does not involve revenues from any tax or 41 license. In the ordinance the county may pledge all or any part of 42 the funds in and to be deposited in the special tax allocation fund 43 created pursuant to Section 12-46-70 to the payment of the1 [3834] 35 1 redevelopment project costs and obligations. Any pledge of funds 2 in the special tax allocation fund must provide for distribution to 3 the taxing districts of monies not required for payment and 4 securing of the obligations and the excess funds are surplus funds. 5 In the event a county only pledges a portion of the monies in the 6 special tax allocation fund for the payment of redevelopment 7 project costs or obligations, any funds remaining in the special tax 8 allocation fund after complying with the requirements of the 9 pledge are also considered surplus funds. All surplus funds must 10 be distributed annually to the taxing districts in the redevelopment 11 project area by being paid by the county to the county treasurer. 12 The county treasurer shall immediately thereafter make 13 distribution to the respective taxing districts in the same manner 14 and proportion as the most recent distribution by the county 15 treasurer to the affected districts of real property taxes from real 16 property in the redevelopment project area. In addition to 17 obligations secured by the special tax allocation fund, the county 18 may pledge for a period not greater than the term of the obligations 19 toward payment of the obligations any part of the revenues 20 remaining after payment of operation and maintenance, of all or 21 part of any redevelopment project. The obligations may be issued 22 in one or more series, may bear such date or dates, may mature at 23 such time or times not exceeding thirty years from their respective 24 dates, may bear such rate or rates of interest as the governing body 25 shall determine, may be in such denomination or denominations, 26 may be in such form, either coupon or registered, may carry such 27 registration and conversion privileges, may be executed in such 28 manner, may be payable in such medium of payment, at such place 29 or places, may be subject to such terms of redemption, with or 30 without premium, may be declared or become due before the 31 maturity date thereof, may provide for the replacement of 32 mutilated, destroyed, stolen, or lost bonds, may be authenticated in 33 such manner and upon compliance with such conditions, and may 34 contain such other terms and covenants, as may be provided by the 35 governing body of the county. If the governing body determines to 36 sell any obligations the obligations must be sold at public or 37 private sale in such manner and upon such terms as the governing 38 body considers best for the interest of the county. 39 A certified copy of the ordinance authorizing the issuance of the 40 obligations must be filed with the treasurer of each county in 41 which any portion of a redevelopment project is situated and shall 42 constitute the authority for the extension and collection of the taxes 43 to be deposited in the special tax allocation fund.1 [3834] 36 1 A county also may issue its obligations to refund in whole or in 2 part obligations previously issued by the county under the 3 authority of this chapter, whether at or prior to maturity, and all 4 references in this chapter to ‘obligations’ are considered to include 5 these refunding obligations. The debt incurred by a county 6 pursuant to this chapter is exclusive of any statutory limitation 7 upon the indebtedness a taxing district may incur. All obligations 8 issued pursuant to this chapter shall contain a statement on the face 9 of the obligation specifying the sources from which payment is to 10 be made and shall state that the full faith, credit, and taxing powers 11 are not pledged for the obligations. 12 The trustee or depositary under any indenture may be such 13 persons or corporations as the governing body designates, or they 14 may be nonresidents of South Carolina or incorporated under the 15 laws of the United States or the laws of other states of the United 16 States. 17 18 Section 12-46-50. The proceeds from obligations issued under 19 authority of this chapter must be applied only for the purpose for 20 which they were issued. Any premium and accrued interest 21 received in any such sale must be applied to the payment of the 22 principal of or the interest on the obligations sold. Any portion of 23 the proceeds not needed for redevelopment project costs must be 24 applied to the payment of the principal of or the interest on the 25 obligations. 26 27 Section 12-46-60. The obligations authorized by this chapter 28 and the income from the obligations and all security agreements 29 and indentures executed as security for the obligations made 30 pursuant to the provisions of this chapter and the revenue derived 31 from the obligations are exempt from all taxation in the State of 32 South Carolina except for inheritance, estate, or transfer taxes and 33 all security agreements and indentures made pursuant to the 34 provisions of this chapter are exempt from all state stamp and 35 transfer taxes. 36 37 Section 12-46-70. A county, within five years after the date of 38 adoption of an ordinance providing for approval of a 39 redevelopment plan pursuant to Section 12-46-80, may issue 40 obligations under this chapter to finance the redevelopment project 41 upon adoption of an ordinance providing that: 42 (1) after the issuance of the obligations; and1 [3834] 37 1 (2) after the total equalized assessed valuation of the taxable 2 real property in a redevelopment project area exceeds the certified 3 ‘total initial equalized assessed value’ established in accordance 4 with Section 12-46-100(B) of all taxable real property in the 5 project area, the ad valorem taxes, if any, arising from the levies 6 upon taxable real property in the project area by taxing districts 7 and tax rates determined in the manner provided in Section 8 12-46-100(B) each year after the obligations have been issued until 9 obligations issued under this chapter have been retired and 10 redevelopment project costs have been paid must be divided as 11 follows: 12 (a) that portion of taxes levied upon each taxable lot, block, 13 tract, or parcel of real property which is attributable to the total 14 initial equalized assessed value of all taxable real property in the 15 redevelopment project area must be allocated to and when 16 collected must be paid by the county treasurer to the respective 17 affected taxing districts in the manner required by law in the 18 absence of the adoption of the redevelopment plan; and 19 (b) that portion, if any, of taxes which is attributable to the 20 increase in the current total equalized assessed valuation of all 21 taxable real property in the redevelopment project area over and 22 above the total initial equalized assessed value of taxable real 23 property in the redevelopment project area must be allocated to 24 and when collected must be paid to the county which shall deposit 25 the taxes into a special fund called the special tax allocation fund 26 of the county for the purpose of paying redevelopment project 27 costs and obligations incurred in the payment of the costs and 28 obligations. The county may pledge in the ordinance the funds in 29 and to be deposited in the special tax allocation fund for the 30 payment of the costs and obligations. 31 Any ordinance adopted based on acts of the county occurring 32 before the effective date of this chapter must incorporate by 33 reference and adopt those prior acts undertaken in accordance with 34 the procedures of this chapter as if they had been undertaken 35 pursuant to this chapter. 36 When obligations issued under this chapter have been retired 37 and redevelopment project costs incurred under this chapter have 38 been paid or budgeted pursuant to the redevelopment plan, as 39 evidenced by resolution of the governing body of the county, all 40 surplus funds then remaining in the special tax allocation fund 41 must be paid by the county treasurer immediately to the taxing 42 districts in the redevelopment project area in the same manner and 43 proportion as the most recent distribution by the treasurer to the1 [3834] 38 1 affected districts of real property taxes from real property in the 2 redevelopment project area. 3 Upon the payment of all redevelopment project costs, retirement 4 of all obligations of a county issued under this chapter, and the 5 distribution of any surplus monies pursuant to this section, the 6 county shall adopt an ordinance dissolving the tax allocation fund 7 for the project redevelopment area and terminating the designation 8 of the redevelopment project area as a redevelopment project area 9 for purposes of this chapter. Thereafter, the rates of the taxing 10 districts must be extended and taxes levied, collected, and 11 distributed in the manner applicable in the absence of the adoption 12 of a redevelopment plan and the issuance of obligations under this 13 chapter. 14 If five years have passed from the time a redevelopment project 15 area is designated and the county has not issued obligations under 16 this chapter to finance the redevelopment project, upon the 17 expiration of the five-year term, the county shall adopt an 18 ordinance terminating the designation of the redevelopment project 19 area. 20 21 Section 12-46-75. If a municipality annexes a tract of property 22 located in a redevelopment project area, the value of each parcel of 23 real property therein for purposes of the ad valorem taxes of the 24 municipality shall be that which is attributable to its initial 25 equalized assessed value before the redevelopment project and not 26 to the increase in its equalized assessed value due to the 27 redevelopment project. 28 29 Section 12-46-80. (A) Prior to the issuance of any 30 obligations under this chapter, the county shall set forth by way of 31 ordinance the following: 32 (1) a copy of the redevelopment plan containing a statement 33 of the objectives of a county with regard to the plan; 34 (2) a statement indicating the need for and proposed use of 35 the proceeds of the obligations in relationship to the 36 redevelopment plan; 37 (3) a statement containing the cost estimates of the 38 redevelopment plan and redevelopment project and the projected 39 sources of revenue to be used to meet the costs including estimates 40 of tax increments and the total amount of indebtedness to be 41 incurred; 42 (4) a list of all real property in the redevelopment project 43 area;1 [3834] 39 1 (5) the duration of the redevelopment plan; 2 (6) a statement of the estimated impact of the redevelopment 3 plan upon the revenues of all taxing districts in which a 4 redevelopment project area is located and, if residential 5 development is included in the plan, the estimated impact on 6 public school enrollment; 7 (7) findings that: 8 (a) the redevelopment project area is a blighted, 9 conservation, or sprawl area and that private initiatives are unlikely 10 to alleviate these conditions without substantial public assistance, 11 (b) property values in the area would remain static or 12 decline without public intervention, and 13 (c) redevelopment is in the interest of the health, safety, 14 and general welfare of the citizens of the county. 15 (B) Before approving any redevelopment plan under this 16 chapter, the governing body of the county must hold a public 17 hearing on the redevelopment plan after published notice in a 18 newspaper of general circulation in the county in which the county 19 and any taxing district affected by the redevelopment plan is 20 located not less than fifteen days and not more than thirty days 21 prior to the hearing. The notice shall include: 22 (1) the time and place of the public hearing; 23 (2) the boundaries of the proposed redevelopment project 24 area; 25 (3) a notification that all interested persons will be given an 26 opportunity to be heard at the public hearing; 27 (4) a description of the redevelopment plan and 28 redevelopment project; and 29 (5) the maximum estimated term of obligations to be issued 30 under the redevelopment plan. 31 Not less than forty-five days prior to the date set for the public 32 hearing, the county shall give notice to all taxing districts of which 33 taxable property is included in the redevelopment project area, and 34 in addition to the other requirements of the notice set forth in the 35 section, the notice shall request each taxing district to submit 36 comments to the county concerning the subject matter of the 37 hearing prior to the date of the public hearing. 38 (C) If a taxing district does not file an objection to the 39 redevelopment plan at or prior to the date of the public hearing, the 40 taxing district is considered to have consented to the 41 redevelopment plan and the issuance of obligations under this 42 chapter to finance the redevelopment project, provided that the 43 actual term of obligations issued is equal to or less than the term1 [3834] 40 1 stated in the notice of public hearing. The county may issue 2 obligations to finance the redevelopment project to the extent that 3 each affected taxing district consents to the redevelopment plan. 4 The tax increment for a taxing district that does not consent to the 5 redevelopment plan must not be included in the special tax 6 allocation fund. 7 (D) If the redevelopment plan includes residential development, 8 then to the extent that the findings pursuant to subsection (A)(6) 9 demonstrate increased public school enrollment because of this 10 development, then an amount of the increment equal to the average 11 property tax collected per pupil in the district multiplied by the 12 estimated increased enrollment is not credited to the special tax 13 allocation fund but is instead allocated to the affected school 14 district as other school tax revenue. 15 (E) Prior to the adoption of an ordinance approving a 16 redevelopment plan pursuant to Section 12-46-80, changes may be 17 made in the redevelopment plan which do not alter the exterior 18 boundaries or do not substantially affect the general land use 19 established in the plan or substantially change the nature of the 20 redevelopment project, without further hearing or notice, provided 21 that notice of the changes is given by mail to each affected taxing 22 district and by publication in a newspaper or newspapers of 23 general circulation within the taxing districts not less than ten days 24 prior to the adoption of the changes by ordinance. Notice of the 25 adoption of the ordinance must be published by the county in a 26 newspaper having general circulation in the affected taxing 27 districts. Any interested party may, within twenty days after the 28 date of publication of the notice of adoption of the redevelopment 29 plan, but not afterwards, challenge the validity of such adoption by 30 action de novo in the court of common pleas in the county in 31 which the redevelopment plan is located. 32 (F) After adoption of an ordinance approving a redevelopment 33 plan, any alteration in the exterior boundaries, general land uses 34 established pursuant to the redevelopment plan, maximum term of 35 maturity of obligations to be issued under the plan, or the 36 redevelopment project must be approved by resolution of each 37 affected taxing district in accordance with the procedures provided 38 in this chapter for the initial approval of a redevelopment project 39 and designation of a redevelopment project area. 40 41 Section 12-46-90. When there are any persons residing in the 42 area covered by the redevelopment plan: 43 (1) the redevelopment plan shall include:1 [3834] 41 1 (a) an assessment of the displacement impact of the 2 redevelopment project and provisions for the relocation of all 3 persons who would be displaced by the project, provided that no 4 residents may be displaced by a redevelopment project unless 5 housing is made available to them pursuant to the terms of this 6 section; 7 (b) provisions for the creation of housing opportunities to 8 the extent feasible to enable a substantial number of the displaced 9 persons to relocate within or in close proximity to the area covered 10 by the redevelopment plan. 11 (2) Prior to authorizing the demolition of any residential units 12 in connection with a tax increment financing plan, the governing 13 body of the county must ensure that the redevelopment plan 14 complies with the requirements of this section and further that 15 standard housing is made available to all persons to be displaced. 16 (3) Persons displaced by a redevelopment plan are entitled to 17 the benefits and protections available under Section 28-11-10. The 18 costs of the relocation are proper expenditures for the proceeds of 19 any obligations issued under this chapter. 20 21 Section 12-46-100. (A) If a county by ordinance approves a 22 redevelopment plan pursuant to Section 12-46-80, the auditor of 23 the county, immediately after adoption of the ordinance pursuant 24 to Section 12-46-80, upon request of the county, must determine 25 and certify: 26 (1) the most recently ascertained equalized assessed value of 27 all taxable real property within the redevelopment project area, as 28 of the date of adoption of the ordinance adopted pursuant to 29 Section 12-46-80, which value is the ‘initial equalized assessed 30 value’ of the property; and 31 (2) the total equalized assessed value of all taxable real 32 property within the redevelopment project area and certifying the 33 amount as the ‘total initial equalized assessed value’ of the taxable 34 real property within the redevelopment project area. 35 (B) After the county auditor has certified the total initial 36 equalized assessed value of the taxable real property in the area, 37 then in respect to every taxing district containing a redevelopment 38 project area, the county auditor or any other official required by 39 law to ascertain the amount of the equalized assessed value of all 40 taxable property within the district for the purpose of computing 41 the rate percent of tax to be extended upon taxable property within 42 such district, shall in every year that obligations are outstanding 43 for redevelopment projects in the redevelopment area ascertain the1 [3834] 42 1 amount of value of taxable property in a project redevelopment 2 area by including in the amount the certified total initial equalized 3 assessed value of all taxable real property in the area in lieu of the 4 equalized assessed value of all taxable real property in the area. 5 The rate percent of tax determined must be extended to the current 6 equalized assessed value of all property in the redevelopment 7 project area in the same manner as the rate percent of tax is 8 extended to all other taxable property in the taxing district. The 9 method of extending taxes established under this section 10 terminates when the county adopts an ordinance dissolving the 11 special tax allocation fund for the redevelopment project. 12 13 Section 12-46-110. Revenues received by the county from any 14 property, building, or facility owned by the county or any agency 15 or authority established by the county in the redevelopment project 16 area may be used to pay redevelopment project costs or reduce 17 outstanding obligations of the county incurred under this chapter 18 for redevelopment project costs. If the obligations are used to 19 finance the extension or expansion of a system as defined in 20 Section 6-21-40 in the redevelopment project area, all or a portion 21 of the revenues of the system, whether or not located entirely 22 within the redevelopment project area, including the revenues of 23 the redevelopment project, may be pledged to secure the 24 obligations issued under this chapter. The county is fully 25 empowered to use any of the powers granted by either or both of 26 the provisions of Chapter 17 of Title 6 (The Revenue Bond 27 Refinancing Act of 1937) or the provisions of Chapter 21 of Title 6 28 (Revenue Bond Act for Utilities). In exercising the powers 29 conferred by the provisions, the county may make any pledges and 30 covenants authorized by any provision of those chapters. The 31 county may place the revenues in the special tax allocation fund or 32 a separate fund which must be held by the county or financial 33 institution designated by the county. Revenue received by the 34 county from the sale or other disposition of real property acquired 35 by the county with the proceeds of obligations issued under the 36 provisions of this chapter must be deposited by the county in the 37 special tax allocation fund or a separate fund which must be held 38 by the county or financial institution designated by the county. 39 Proceeds of grants may be pledged by the county and deposited in 40 the special tax allocation fund or a separate fund. 411 [3834] 43 1 Section 12-46-120. Counties and municipalities may jointly 2 adopt redevelopment plans and authorize obligations as provided 3 under the provisions of this chapter and Chapter 6 of Title 31.” 4 5 SECTION 19. Items (6) and (9) of Section 31-6-30 of the 1976 6 Code are amended to read: 7 8 “(6) ‘Redevelopment project’ means any buildings, 9 improvements, including street improvements, water, sewer and 10 storm drainage facilities, parking facilities, and recreational 11 facilities. Any project or undertaking authorized under Section 12 6-21-50 may also qualify as a redevelopment project under this 13 chapter. All such projects are to be owned by the municipality 14 publicly owned. 15 16 (9) ‘Taxing districts’ means counties, incorporated 17 municipalities, schools, special purpose districts, and public and 18 any other municipal corporations or districts with the power to 19 levy taxes. Taxing districts include school districts which have 20 taxes levied on their behalf.” 21 22 SECTION 20. The third and fifth undesignated paragraphs of 23 Section 31-6-80 of the 1976 Code are amended to read: 24 25 “If a taxing district does not file an objection to the 26 redevelopment plan at or prior to the date of the public hearing, the 27 taxing district is considered to have consented to the 28 redevelopment plan and the issuance of obligations under this 29 chapter to finance the redevelopment project, provided that the 30 actual term of obligations issued is equal to or less than the term 31 stated in the notice of public hearing. The municipality may issue 32 obligations to finance the redevelopment project if less than all 33 taxing districts consent to the extent that each affected taxing 34 district consents to the redevelopment plan. The tax increment for 35 a taxing district that does not consent to the redevelopment plan 36 must not be included in the special tax allocation fund after the 37 first fifteen years after the initial issuance of obligations to finance 38 such plan. No consent is required of any taxing district if the term 39 of the proposed initial obligations is fifteen years or less or, in the 40 case of any additional or refunding obligations, if the term of the 41 obligations is not greater than the later of (a) fifteen years from the 42 date of issuance of the initial or refunded obligations or (b) the 43 remaining term of the initial or refunded obligations.1 [3834] 44 1 After adoption of an ordinance approving a redevelopment plan, 2 any alteration in the exterior boundaries, general land uses 3 established pursuant to the redevelopment plan, maximum term of 4 maturity of obligations to be issued under the plan, or nature of the 5 redevelopment project must be approved by ordinance resolution 6 of the municipality each affected taxing district in accordance with 7 the procedures provided in this chapter for the initial approval of a 8 redevelopment project and designation of a redevelopment project 9 area.” 10 11 SECTION 21. Section 4-35-150 of the 1976 Code, as added by 12 Act 99 of 1993, is amended to read: 13 14 “Section 4-35-150. The improvements as defined in Section 15 4-35-30 are the sole and unrestricted property of the county must 16 be owned by the county, the State, or another public entity for the 17 benefit of the citizens and residents of the improvement district or 18 the entity owning the improvement, and may at any time may be 19 removed, altered, changed, or added to, as the governing body of 20 the owner may determine if except that during the continuance or 21 maintenance of the improvements, the special assessments on 22 property may be utilized for the preservation, operation, and 23 maintenance of the improvements and facilities provided in the 24 improvement plan, for the management and operation of the 25 improvement district as provided in the improvement plan, and for 26 payment of indebtedness incurred.” 27 28 SECTION 22. A. The General Assembly finds that: 29 (1) Many of South Carolina’s urban and rural communities 30 face critical social and economic problems arising in part from 31 people living in poverty because of the lack of economic growth, 32 employment, and other opportunities. 33 (2) The restoration and maintenance of these communities 34 requires increased access to credit and capital for development 35 activities, including investment in businesses, housing, human 36 development, and other activities that promote the long-term 37 economic and social viability of the community. 38 (3) Access to credit and capital is essential to unleash the 39 untapped entrepreneurial energy of South Carolina’s poorest 40 communities and to empower individuals and communities to 41 become self-sufficient. 42 (4) Community development financial institutions have the 43 proven ability to identify and respond to community needs for1 [3834] 45 1 capital, credit, and development services in the absence of, or as a 2 complement to, services provided by other lenders. 3 (5) Community development corporations have a proven 4 ability to identify and respond to community needs and manage 5 community assets for the purpose of community and economic 6 development on a local level. 7 (6) For the above reasons, it has determined to enact the 8 provisions of this act as being consistent with public policy 9 objectives of our State, including economic growth, higher 10 employment, and community development. 11 12 B. Title 34 of the 1976 Code is amended by adding: 13 14 “CHAPTER 43 15 16 South Carolina Community Economic Development Commission 17 18 Section 34-43-10. (A) There is created a South Carolina 19 Community Economic Development Commission. The 20 commission shall exist for the purpose of certifying entities as 21 community development financial institutions, as defined in 22 Section 34-43-40, and as community development corporations, as 23 defined in Section 34-43-50. The commission also may make 24 grants to community development financial institutions and 25 community development corporations from grant funds made 26 available to it by the General Assembly or from other available 27 funds. The General Assembly may appropriate funds to the 28 commission to be used to make grants to community development 29 financial institutions and community development corporations as 30 authorized in this chapter. The General Assembly also may 31 provide funds in the annual general appropriation act to pay 32 salaries, employee benefits, and administrative expenses of the 33 commission. 34 (B) In addition to other powers provided for in this chapter, the 35 commission may: 36 (1) promulgate regulations necessary to carry out its 37 functions; 38 (2) contract for and accept, for use in carrying out the 39 provisions of this chapter, any grant or contribution of funds from 40 a political subdivision of the State or from another source, and 41 comply, subject to the provisions of this chapter, with the terms 42 and conditions of those contracts; and1 [3834] 46 1 (3) do anything necessary or convenient to carry out its 2 powers and functions. 3 (C) The commission may receive funds from, among other 4 sources, state appropriations and private contributions. 5 6 Section 34-43-20. (A) The governing body of the commission 7 consists of the following seven members which must represent the 8 diverse ethnic population of the State: 9 (1) a chairman, representing a federally-chartered or 10 state-chartered financial institution doing business in this State, 11 who must be appointed by the Governor, with the advice and 12 consent of the Senate; 13 (2) the Secretary of Commerce, or his designee; 14 (3) three members from the community economic 15 development field appointed by the Governor, with the advice and 16 consent of the Senate; and 17 (4) two members representing federally-chartered or 18 state-chartered financial institutions or other business entities 19 doing business in this State, other than the institution represented 20 by the chairman, who must be appointed by the Governor, with the 21 advice and consent of the Senate. 22 (B) A commission member serves a term of four years and until 23 his successor is appointed and qualifies. 24 (C) A member who is appointed to fill a vacancy on the 25 commission serves only for the remainder of the unexpired term 26 and until a successor is appointed and qualifies. 27 (D) The commission ceases to exist on July 1, 2004, unless 28 further authorized by the General Assembly. 29 30 Section 34-43-30. (A) Four appointed members of the 31 commission are a quorum. However, the commission may not act 32 on a matter unless at least four members in attendance concur. 33 (B) The commission determines the times and places of its 34 meetings. 35 (C) Members of the commission, while serving on business of 36 the commission, shall receive, to the extent funding is available, 37 per diem, mileage, and subsistence as provided by law for 38 members of state boards, committees, and commissions. 39 (D) The commission, to the extent funding is available, may 40 employ or contract for staff and consultants it considers necessary 41 to assist in carrying out its duties and responsibilities pursuant to 42 this chapter.1 [3834] 47 1 (E) In its internal functions, the commission shall keep proper 2 records of its accounts and follow the procedures of this State 3 governing the purchase of office space, supplies, facilities, 4 materials, equipment, and professional services. The commission 5 must be audited by the State Auditor as provided in Chapter 7 of 6 Title 11. 7 (F) The commission shall make an annual report on its 8 condition and operations to the General Assembly and the 9 Governor, including the information required to be reported by 10 Section 34-43-80. 11 12 Section 34-43-40. (A) The commission may certify an entity 13 as a community development financial institution if it meets the 14 definition provided in subsection (B). 15 (B) For purposes of this section: 16 (1) ‘Community development financial institution’ means an 17 organization that: 18 (a) has a primary mission of promoting community 19 development through the provision of credit, capital, or 20 development services to small businesses including, but not 21 limited to, the provision of capital access programs, microlending, 22 franchise financing, and guaranty performance bonds; 23 (b) provides service delivery throughout the State; 24 (c) maintains, through representation on its governing 25 board, accountability to persons in need of the institution’s 26 services; 27 (d) is not an agent or instrumentality of the United States, 28 or of a state or political subdivision of a state or maintains an 29 affiliate relationship with none of them; 30 (e) maintains a goal of providing a majority of its services 31 to low-income individuals, minorities, females, or rural areas; 32 (f) provides capital and technical assistance to small and 33 micro businesses; 34 (g) does not provide credit, capital, or other assistance in 35 an amount greater than two hundred fifty thousand dollars at one 36 time or in one transaction. That dollar amount must be adjusted in 37 the manner provided in Section 37-1-109; and 38 (h) has been certified or recertified previously as a 39 community development financial institution as provided in this 40 chapter. 41 (2) ‘Low-income’ means individuals whose income level 42 falls within the eightieth percentile of the mean income for a 43 family of four within this State.1 [3834] 48 1 (3) The term ‘invest’ includes any advance of funds to a 2 community development financial institution whether by purchase 3 of stock or other equity interest or by charitable contribution. 4 (C) Banks and financial institutions chartered by the State of 5 South Carolina are authorized to invest in community development 6 financial institutions incorporated under the laws of this State, up 7 to a maximum of ten percent of a chartered bank or financial 8 institution’s total capital and surplus. 9 (D) A federally-chartered or state-chartered financial institution 10 holding company may qualify as a community development 11 financial institution only if the holding company and the 12 subsidiaries and affiliates of the holding company collectively 13 satisfy the requirements of subsection (B). 14 (E) A community development financial institution is not 15 subject to taxes based upon or measured by income which are 16 levied now or may be levied later by the State. 17 18 Section 34-43-50. (A) The commission may certify an entity 19 as a community development corporation if it meets the definition 20 provided in subsection (B). 21 (B) ‘Community development corporation’ means a nonprofit 22 corporation that: 23 (1) is chartered pursuant to Chapter 31, Title 33; 24 (2) is tax-exempt pursuant to Section 501(c)(3) of the 25 Internal Revenue Code of 1986; 26 (3) has a primary mission of developing and improving 27 low-income communities and neighborhoods through economic 28 and related development; 29 (4) has activities and decisions initiated, managed, and 30 controlled by the constituents of those local communities; 31 (5) has a primary function of developing projects and 32 activities designed to enhance the economic opportunities of the 33 people in the community served, including efforts to enable them 34 to become owners and managers of small businesses and producers 35 of affordable housing and jobs in the community served; and 36 (6) does not provide credit, capital, or other assistance in an 37 amount greater than twenty-five thousand dollars at any time or in 38 one transaction. The commission must adjust that dollar amount 39 as provided in Section 37-1-109. 40 (7) is not a nonprofit organization which has the sole 41 purpose of providing housing to neighborhoods or technical 42 assistance to other nonprofit organizations.1 [3834] 49 1 (C) The commission shall establish and implement criteria for 2 grants made to community development corporations pursuant to 3 Section 34-43-10. The criteria must require that the applicant has 4 demonstrated a capacity to engage in community development 5 projects and has sufficient organizational structure to ensure proper 6 management. However, if the applicant is created after the 7 effective date of this section, the applicant shall present a strategic 8 plan for community development projects and shall show evidence 9 of developing an organizational structure which ensures proper 10 management. 11 (D) The commission may provide, or contract with an 12 appropriate entity to provide, technical support to assist 13 community development corporations to be successful in 14 developing their organizational capacity and implementing their 15 projects. 16 (E) The commission shall make an annual report to the General 17 Assembly regarding grants made pursuant to this section. The 18 report required by this subsection may be included with the report 19 required by Section 34-43-30. 20 21 Section 34-43-60. (A) Application for certification must be in 22 writing, under oath and in the form prescribed by the commission, 23 and must contain information as the commission may require, 24 including the names and addresses of the partners, officers, 25 directors or trustees, and those principal owners or members as 26 will provide the basis for investigations and findings contemplated 27 by subsection (B). At the time of making the application, the 28 applicant shall pay to the commission a fee for investigating the 29 application, as prescribed by the commission, which will yield 30 sufficient revenue to defray the commission’s costs of 31 investigating the applicant. 32 (B) Upon the filing of the application and payment of the fees, 33 the commission shall investigate the facts concerning the 34 application and the requirements provided for in either Section 35 34-43-40 or in Section 34-43-50. 36 37 Section 34-43-70. (A) Certification of a community 38 development financial institution or a community development 39 corporation expires two years from the date of certification. 40 (B) Certification of a community development financial 41 institution or a community development corporation may be 42 renewed for additional two-year periods upon application by the 43 institution or corporation and approval by the commission.1 [3834] 50 1 (C) The commission may not renew certification of an 2 institution or corporation absent continuous compliance with the 3 provisions of Section 34-43-40 or Section 34-43-50. 4 (D) The commission may revoke the certification of an 5 institution or corporation upon a finding that the institution or 6 corporation does not comply with the provisions of Section 7 34-43-40 or Section 34-43-50. 8 (E) The commission shall serve a notice of intent not to grant 9 certification, intent not to renew certification, or intent to revoke 10 certification upon the institution or corporation with a brief 11 statement of the reasons alleged. The institution or corporation 12 may request a hearing within thirty days of receiving notice by 13 filing a request for a hearing with the commission. The hearing 14 must be held in accordance with Article 3, Chapter 23, Title 1, the 15 Administrative Procedures Act. 16 (F) A taxpayer may not claim the tax credit provided for in 17 Section 12-6-3520 unless the institution or corporation in which 18 the investment is made is certified by the commission at the time 19 the investment is made. A taxpayer who invested in good faith in 20 a certified institution or corporation may claim the credit provided 21 in Section 12-6-3520 notwithstanding the fact that the certification 22 is subsequently revoked or not renewed by the commission. 23 24 Section 34-43-80. A community development financial 25 institution shall file with the commission, on or before the 26 anniversary date of its certification, an annual report for the 27 preceding calendar year. The report must give information about 28 the financial condition of the institution, and must include balance 29 sheets at the beginning and end of the accounting period, a 30 statement of income and expenses for the period, a reconciliation 31 of surplus with the balance sheets, a schedule of assets used by and 32 useful to the institution to conduct its business, an analysis of 33 charges, size and type of loans, and other activities described in 34 Section 34-43-40(B)(1)(a), and other relevant information in form 35 and detail as prescribed by the commission. The report must be 36 made under oath and be in the form prescribed by the commission. 37 The commission shall make and publish annually an analysis and 38 recapitulation of the reports for inclusion in its annual report to the 39 Governor and General Assembly as provided in Section 40 34-43-30(F).” 41 42 C. Article 25, Chapter 6, Title 12 of the 1976 Code is amended 43 by adding:1 [3834] 51 1 2 “Section 12-6-3520. (A) A taxpayer may claim as a credit 3 against his state income tax, bank tax, or premium tax liability fifty 4 percent of all amounts invested in a community development 5 financial institution, as defined in Section 34-43-40, or in a 6 community development corporation, as defined in Section 7 34-43-50. 8 To qualify for this credit the taxpayer must obtain a certificate 9 from the South Carolina Community Economic Development 10 Commission certifying that the entity into which the funds are 11 invested is a community development financial institution within 12 the meaning of Section 34-43-40 or a community development 13 corporation within the meaning of Section 34-43-50 and certifying 14 that the credit taken or available to that taxpayer will not exceed 15 the aggregate fourteen million dollar limitation of all those credits 16 as provided in subsection (B) when added to the credits previously 17 taken or available to other taxpayers making similar investments. 18 (B) The total amount of credits allowed pursuant to this section 19 may not exceed, in the aggregate, fourteen million dollars for all 20 taxpayers and all taxable years. The total amount of credits 21 allowed for investments in community development financial 22 institutions may not exceed, in the aggregate, ten million dollars 23 for all taxpayers and all taxable years. The total amount of credits 24 allowed for investments in community development corporations 25 may not exceed, in the aggregate, four million dollars for all 26 taxpayers and all taxable years. The credit must be allowed to 27 taxpayers in the order of the time of the making of the qualified 28 investments in community development financial institutions and 29 community development corporations. 30 The commission shall monitor the investments made by 31 taxpayers in community development financial institutions and 32 community development corporations as permitted by this section 33 and shall perform the functions as provided for in subsection (A). 34 (C) If the amount of the credit determined under subsection (A) 35 exceeds the taxpayer’s state tax liability for the applicable taxable 36 year, the taxpayer may carry over the excess to the immediately 37 succeeding taxable years. However, the credit carryover may not 38 be used for any taxable year that begins on or after ten years from 39 the date of the qualified investment. The amount of the credit 40 carryover from a taxable year must be reduced to the extent that 41 the carryover is used by the taxpayer to obtain a credit pursuant to 42 this chapter for a subsequent taxable year.1 [3834] 52 1 (D) Notwithstanding the provisions of subsections (A), (B), and 2 (C), if on April 1, 1999, or as soon after that as the commission is 3 able to determine, the total amount of tax credits which may be 4 claimed by all taxpayers exceeds the total amount of tax credits 5 authorized by this section, the credits must be determined on a pro 6 rata basis. For purposes of this subsection, a community 7 development financial institution or community development 8 corporation for which an investment may be claimed as a tax credit 9 pursuant to this section must report all investments made before 10 April 1, 1999, to the commission by April 1, 1999, which shall 11 inform, as soon as reasonably possible, all community 12 development financial institutions and community development 13 corporations of the total of all investments in all institutions and 14 corporations as of April 1, 1999. 15 (E) If a qualified investment which is the basis for a credit 16 pursuant to this section is redeemed by a taxpayer within five years 17 of the date it is purchased, the credit provided by this section for 18 the qualified investment is disallowed, and a credit previously 19 claimed and allowed with respect to the redeemed qualified 20 investment must be paid to the Department of Revenue with the 21 appropriate return of the taxpayer covering the period in which the 22 redemption occurred. When payments are made to the Department 23 of Revenue pursuant to this section, the amount collected must be 24 handled in the same manner as if no credit had been allowed. 25 (F) To receive the credit provided by this section, a taxpayer 26 shall: 27 (1) claim the credit on the taxpayer’s annual state income or 28 premium tax return in the manner prescribed by the Department of 29 Revenue; and 30 (2) file with the Department of Revenue and with the 31 taxpayer’s annual state income or premium tax return a copy of the 32 form, described in subsection (G), issued by the commission as to 33 the qualified investment by the taxpayer, including an undertaking 34 by the taxpayer to report to the Department of Revenue a 35 redemption of the qualified investment. 36 (G)(1) The commission shall complete forms prescribed by the 37 Department of Revenue, showing as to each qualified investment 38 in a community development financial institution or a community 39 development corporation: 40 (a) the name, address, and identification number of the 41 taxpayer who purchased a qualified investment; and 42 (b) the nature of the qualified investment purchased by the 43 taxpayer and the amount paid for it.1 [3834] 53 1 (2) These forms must be filed with the Department of 2 Revenue on or before the fifteenth day of the third month 3 following the month in which the qualified investment is 4 purchased. Copies of the forms to be provided to the Department 5 of Revenue must be mailed to the taxpayer on or before the 6 fifteenth day of the second month following the month in which 7 the qualified investment is purchased. 8 (H) A taxpayer may not claim the tax credit provided in this 9 section unless the community development financial institution or 10 community development corporation in which the investment is 11 made has been certified at the time the investment is made. A 12 taxpayer who invested in good faith in a certified institution or 13 corporation may claim the credit provided in this section, 14 notwithstanding the fact that the certification is subsequently 15 revoked or not renewed by the commission. 16 (I) An investor in a qualified community development 17 corporation or a community development financial institution 18 may transfer or assign the tax credit provided in this section, 19 except that for purposes of a time period within which an act must 20 occur pursuant to this section, the transfer or assignment must 21 relate back to the time of original investment made by the 22 transferor or assignor. 23 (J) If the community development financial institution in 24 which the investment is made is a tax-exempt nonprofit 25 corporation, the tax credit provided in this section may not be 26 allowed if the taxpayer claims the investment as a deduction 27 pursuant to Section 170 of the Internal Revenue Code. 28 (K) The total amount of credits which may be allowed by the 29 Department of Revenue may not exceed two million dollars in a 30 community development corporation for fiscal year 1999-2000 and 31 each fiscal year thereafter until the total aggregate amount of four 32 million dollars is reached. The total amount of credits allowed by 33 the Department of Revenue may not exceed five million five 34 hundred thousand dollars in a community development financial 35 institution for fiscal year 1999-2000 and each fiscal year after that 36 until the total aggregate amount of ten million dollars is reached. 37 A credit which is disallowed because of this subsection may be 38 carried forward as provided in this section.” 39 40 D. This Section takes effect upon approval of the Governor, 41 except that subsection C applies to tax years beginning after 1998. 421 [3834] 54 1 SECTION 23. This act takes effect upon approval by the 2 Governor, except Sections 2, 3, 4, 5, 6, 7, and 10 are effective for 3 taxable years after 1998, and Section 9 is effective for property tax 4 years beginning after 1998. 5 ----XX----1 [3834] 55

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