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HOUSE AMENDMENTS AMENDED
May 16, 2002
S. 852
S. Printed 5/16/02--S.
Read the first time February 19, 2002.
TO AMEND SECTION 12-44-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO INCREASE THE EXTENSION ALLOWED IN THE INVESTMENT PERIOD FROM TWO TO FIVE YEARS; AND TO AMEND SECTION 12-44-90, RELATING TO THE FILING REQUIREMENTS UNDER THE FEE IN LIEU OF TAX SIMPLIFICATION ACT, SO AS TO ALLOW THE DEPARTMENT OF REVENUE TO GRANT A MAXIMUM SIXTY-DAY EXTENSION FOR FILING RETURNS AND TO PROVIDE THE REQUIREMENTS TO OBTAIN THE EXTENSION.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-44-30(13) of the 1976 Code is amended to read:
"(13) 'Investment period' means the period beginning sixty days before the county takes action or identifies the project under Section 12-44-40(C), and ending five years after the commencement date; except that for a project with an enhanced investment as described above, the period ends eight years after the commencement date. The minimum investment must be completed within five years of the commencement date. For an enhanced investment, the enhanced investment must be completed within eight years of the commencement date. If the sponsor does not anticipate completing the project within this period, the sponsor may apply to the county before the end of the period for an extension of time to complete the project. If the county agrees to an extension, it must do so in writing and furnish a copy of the extension to the Department of Revenue within thirty days of the date the extension was granted. The extension may not exceed two five years in which to complete the project. An extension is not allowed for the time period in which the sponsor must meet the minimum investment requirement."
SECTION 2. Section 12-44-90 of the 1976 Code is amended by adding at the end:
"(H) The department, for good cause, may allow additional time for filing of returns required under this chapter. The request for an extension may be granted only if the request is filed with the department on or before the date the return is due. However, the extension must not exceed sixty days from the date the return is due. The department shall develop applicable forms and procedures for handling and processing extension requests. An extension may not be granted to a taxpayer who has been granted an extension for a previous period and has not fulfilled the requirements of the previous period."
SECTION 3. A. Section 12-21-3920(4) and (6) of the 1976 Code are amended to read:
"(4) 'Promoter' means an individual, corporation, partnership, or organization licensed as a professional solicitor by the Secretary of State who is hired by a nonprofit organization to manage, operate, or conduct the licensee's bingo game. The person hired under written contract is considered the promoter.
(6) 'Session' means a consecutive series of games which must occur only between one o'clock p.m. and one o'clock a.m the hours of 12:00 p.m. and 2:00 a.m. No more than one session, limited to twelve hours, may occur during the permitted twelve-hour fourteen-hour period. Regardless of the starting time within the permitted period, the session may not extend beyond 2:00 a.m. These limitations do not apply to games operated by state or county fairs."
B. Section 12-21-3920 is amended by adding at the end:
"(20) 'Electronic dabber' means a hand-held electronic device that allows a player to store, display, and mark a bingo card face. All systems and electronic dabbers must be tested and approved by an independent testing facility to be determined by the department.
(21) 'Electronic dabber bingo ticket' means a perforated two-part ticket bearing a sequential serial ticket number bearing the South Carolina State Seal, denomination, and the department's license number. The ticket must have designated blanks for entry of the date sold and electronic dabber unit supplied. Electronic dabber bingo tickets must be printed and sold only by distributors of bingo paper licensed by the department.
(22) 'Site system' means a computer accounting system commonly referred to as a point of sale system used in conjunction with electronic dabbers. This computer software is used at a site by an organization that allows an electronic dabber bingo ticket purchased from a license distributor to be downloaded to electronic dabbers, accounts for gross proceeds, and provides accounting information on all activity for one year from the end of the quarter in which the activity occurred. All systems and electronic dabbers must be tested and approved by an independent testing facility to be determined by the department."
C. Section 12-21-3950(B) of the 1976 Code is amended to read:
"(B) Upon application for a license, the department has thirty forty-five days to approve or reject the application based on the requirements of this article."
D. Section 12-21-3990(A)(1), (2), and (4) of the 1976 Code are amended to read:
"(1) Bingo is played by more than one player and a caller who is associated with the house. Each player must pay no more than face value for each card to be played during the course of a game and may purchase the card for a specified number of games. All cards sold for a game must sell for face value and cards may not be given to players as prizes or for free. After the player has purchased a card or cards for a specified number of games, the house cannot require or accept an additional payment or consideration by the player in order to complete the specified number of games.
(2) Before each game begins, the caller shall announce to the players the configuration or configurations that will win the game. A configuration consists of a number of grids covered in the manner announced by the caller. Any method of playing the games is allowed if the method is announced before each game game's beginning including, but not limited to, wild card games. In addition, at the conclusion of each game, the prize, specifically stating the dollar amount or value of merchandise awarded to the winner or winners for the game completed, must be announced before the next game begins.
(4) The caller shall draw and announce numbers from the cage one at a time. If a player has a card with the called number on it, he may use a marker or electronic dabber to cover the square which contains the number. After the number is announced, it must be indicated on the master-board by the caller."
E. Section 12-21-4000(8) of the 1976 Code is amended to read:
"(8) The prize must be awarded to the first person who successfully achieves the winning configuration of covered squares. All winning configurations must be verified using an electronic verifying system and must be displayed on the monitor for all players to see."
F. Section 12-21-4000(12)(b) of the 1976 Code is amended to read:
"(b) A bingo operation may take in only two times more in gross proceeds than the prize for that session averaged on a quarterly basis. Amounts in excess of this limit are subject to a tax, in addition to any other bingo license taxes and fees equal to the amount of the excess. Each session that the gross proceeds are greater than twice the prize amounts paid constitutes a separate offense if the tax is unpaid. These excess proceeds tax must be remitted to the department on the organization's quarterly bingo report and distributed as provided in Section 12-21-4190. Failure to remit this excess proceeds tax to the department shall result in immediate suspension of both the promoter's license and the organization's license. The department, after a conference with the promoter and organization, may permanently revoke the license of the promoter or the nonprofit organization, or both. If permanently revoked, the promoter, nonprofit organization, or any partner or member of the organization may no longer manage, conduct, or assist in any manner with a bingo operation in this State."
G. Section 12-21-4000 of the 1976 Code is amended by adding at the end:
"(15) The house may hold promotions of special events during a session offering players prizes other than from the play of bingo not to exceed one hundred dollars in cash or merchandise for each session. This amount is not to be paid out of the bingo account and is not included in total payouts for a session. There is no additional charge to players to participate in a special promotion. The promotion must not be a form of gambling or a game of chance."
H. Section 12-21-4020(2) and (3) of the 1976 Code are amended to read:
"(2) CLASS B: An organization operating a bingo game offering prizes, which do not exceed eight thousand dollars a session, shall obtain a Class B bingo license at a cost of one thousand dollars. The holder of a Class B license may not conduct more than three five bingo sessions a week.
(3) CLASS C: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session shall obtain a Class C bingo license at no cost. However, the organization may offer a prize in cash or merchandise of no more than one hundred fifty dollars for six jackpot games a session. The department, in its discretion, may allow certain Class C licenses to use hard bingo cards in lieu instead of the paper cards required by this article. An organization operating a Class C bingo game must not exceed gross proceeds of one hundred thousand dollars a calendar quarter. If the gross bingo proceeds for any calendar quarter exceed one hundred thousand dollars, the organization is required to notify the department within ten days by making application for a Class G license.
Once the organization exceeds the limit of one hundred thousand dollars, the organization is subject to tax on the dollar face value of each card at the rate of nine and one-half percent. At the time that a Class G license is issued by the department, an audit of the organization must be conducted to determine any tax owed during the interim operating period from the time the limits were exceeded until the time the Class G license was issued by the department.
To qualify to play on hard cards, a bingo game conducted by a Class C license must meet the following criteria:
(a) be operated solely by volunteers;
(b) the person managing, conducting, or operating the bingo game may must not be paid or otherwise be compensated and must be a designated member of the organization;
(c) remuneration, (including wages or other compensation), may must not be made to any individual or corporation;
(d) all equipment used to operate a game of bingo, including chairs, tables, and other equipment, must be owned by the charity;
(e) the organization must may lease the building directly from the owner of the building or own the building in which the game of bingo is played. The organization may not lease or sublease the building from a person who is not the owner;
(f) the only expenses allowed to be paid from the proceeds of the game are utility bills, prizes, purchases of cards, payments for the lease of a building, purchases of equipment required to operate a game of bingo, and the charitable purposes of the organization;
(g) one hundred percent of the net proceeds from the operation of the game must be used for charitable purposes."
I. Section 12-21-4020 of the 1976 Code is amended by adding at the end:
"(7) CLASS G: An organization operating a bingo game and offering prizes of twenty dollars or less a game during a single session and whose gross receipts exceed one hundred thousand dollars a calendar quarter shall obtain a Class G license at a cost of three hundred dollars. However, the organization may offer a prize in cash or merchandise of not more than one hundred fifty dollars for ten jackpot games a session."
J. Section 12-21-4080(A) of the 1976 Code is amended to read:
"(A) Upon completion of the session, the promoter or the organization member representative shall deliver to the representative member of the organization deposit the gross proceeds from the session less the amount paid out as prizes and collected as entrance fees into the bingo checking account. If the promoter is authorized by the organization to make the session deposit, the promoter shall deliver to the organization representative evidence that the deposit was made in a timely manner. This evidence must be furnished no later than the next business day following the day of the bingo session on which the proceeds were obtained."
K. Section 12-21-4090(C) of the 1976 Code is amended to read:
"(C) An organization receiving an annual license to conduct bingo shall establish and maintain one regular checking account designated the 'bingo account' and also may maintain an interest-bearing savings account designated the 'bingo savings account'. All funds derived from the conduct of bingo, less the amount awarded as cash prizes, must be deposited in the bingo account. No Other funds may not be deposited in the bingo account, unless there is a deficit, and then both the organization and promoter shall deposit a loan equal to fifty percent of the deficit. Each loan deposited into the bingo checking account must be accounted for on the quarterly financial reports filed with the department. Detailed information substantiating these loans must be maintained by the organization. Deposits must be made no later than the next business day following the day of the bingo occasion on which the receipts were obtained. All accounts must be maintained in a financial institution in this State."
L. Section 12-21-4120 of the 1976 Code is amended to read:
"Section 12-21-4120. A person who is found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request. Any organization or promoter seeking clarification on the play of or operation of a bingo game shall submit to the department's bingo regulatory section a written request seeking a determination as to whether or not a certain or specific action constitutes a violation. A conference may be requested upon the receipt of the clarification request. Any organization or promoter found in violation of the provisions of this article and assessed additional taxes, penalties, fines, or interest is entitled to a conference upon request."
M. Section 12-21-4150 of the 1976 Code is amended to read:
"Section 12-21-4150. A person who poses as a bingo player, or a person who conspires to have a person pose as a bingo player with the intent to defraud regular customers of the game, or a person who is using unauthorized bingo supplies, or a person using counterfeit electronic dabber bingo tickets is guilty of a felony and, upon conviction, must be imprisoned not more than five years or fined not more than five thousand dollars, or both."
N. Section 12-21-4190(A) of the 1976 Code is amended to read:
"(A) The department shall charge and retain sixteen and one-half cents for each dollar of face value for each bingo card sold for AA, B, D, and E licenses. The department shall charge and retain five cents for each dollar of face value for each bingo card sold to a F license. There shall be no charge for a C license. There is a charge of nine and one-half cents for each dollar of face value for each bingo card sold to a G license. For any holder of a Class G license that is charged nine and one-half cents for each bingo card sold, a distribution of a portion of the tax paid must be made back to the organization in the same manner as provided in Section 12-21-4190(B)."
O. Section 12-21-4210 of the 1976 Code is amended to read:
"Section 12-21-4210. Bingo cards may not be sold or transferred between licensed organizations, between distributors, or between manufacturers. All unused bingo cards may be returned to the department for refund and destruction. For any Class C paper in inventory at the time that the organization applies for a Class G license and begins to pay tax, a department agent shall inventory any untaxed paper and conduct an examination of books and records from the point of time that the game exceeded one hundred thousand dollars and an assessment must be issued on the dollar face value of each card and the tax must be paid within fifteen days from the date of the assessment. The department is required to refund only the amount retained by the department previously based on the face value of each card and does not include the manufacturer's price or transportation charges to the consignee at destination and such additional charges. If an organization operating a bingo game ceases operation within fifteen days from the purchase of the last voucher and the voucher remains outstanding, the department shall accept the returned paper and credit the value of returned paper against the outstanding voucher. The organization then shall pay the balance of the voucher less the value of returned paper."
P. Section 12-21-4270 of the 1976 Code is amended to read:
"Section 12-21-4270. Each licensed nonprofit organization or promoter, in the name of a licensed organization, may obtain bingo cards approved by the department by making application and remitting sixteen and one-half percent of the total face value of the cards to be purchased. Payment to the State for the issuance of bingo cards must be made by check, certified check, any electronic method, or cash within fifteen days of receipt of the application. If payment is made by check and the check is returned by the bank for any reason, the organization or promoter then is required to make payment to the department by certified funds for the remainder of the time that the bingo session is in operation. Upon receipt of the application, the department shall notify a licensed distributor, who has purchased bingo cards from a licensed manufacturer that the licensed distributor may release the face value of the bingo cards requested to the licensed organization or promoter. However, no additional bingo cards must be released until payment is received for the prior application of bingo cards. The department is required to set forth procedures to ensure that there is a crosscheck between manufacturers, distributors, and licensed nonprofit organizations or promoters. A quarterly return is required by each manufacturer, distributor, and licensed nonprofit organization or promoter on or before the last day of the month following the close of the calendar quarter, outlining those items the department determines necessary to verify the sale and distribution of bingo cards. The sale of bingo cards and entrance fees provided by Section 12-21-4030 are not subject to the admissions tax provided by Section 12-21-2420."
Q. The 1976 Code is amended by adding:
"Section 12-21-4005. (A) A site system and an electronic bingo dabber must meet the following specifications:
(1) A site system must:
(a) record a nonresetable electronic consecutive six digit receipt number for each transaction;
(b) issue a player a receipt for each transaction containing:
(i) name of a site or organization;
(ii) date and time of the transaction;
(iii) number of electronic bingo card images downloaded;
(iv) selling price of a card or package, gross proceeds, and receipt number; and
(v) serial number of device issued to a player;
(c) print a summary report for each session containing:
(i) date and time of the report;
(ii) name of site;
(iii) date of the session;
(iv) sequential session number;
(v) number of transactions;
(vi) number of voided transactions;
(vii) number of electronic bingo card images downloaded;
(viii) number of devices used;
(ix) total gross proceeds; and
(x) any other information required by the department.
(2) An electronic dabber:
(a) must be a portable hand-held unit and may not be wired directly to a site system;
(b) may not have more than one hundred forty-four faces to be played each game when used in a Class B game and not more than two hundred eighty-eight faces to be played each game when used in a Class AA game;
(c) must require a player to manually enter each bingo number called by using an input function key;
(d) shall display a player's best card or a winning card and alert only that player through an audio or video method, or both, of that result;
(e) must automatically erase all stored cards at the end of the last game of a session or when the device is turned off; and
(f) must be downloaded with new cards at the beginning of each session.
(B) The department's representative may examine and inspect a site system, electronic bingo dabber, and related equipment. The examination and inspection must include immediate access to the electronic dabber and unlimited inspection of all parts, equipment, and associated systems.
(C) A player may exchange a defective electronic dabber for another provided a disinterested player verifies that the electronic dabber is not functioning. A disinterested player also shall verify that no numbers called for the game in progress have been keyed into the replacement electronic dabber before the exchange.
(D) Before a player uses an electronic dabber, he must purchase an electronic dabber bingo ticket from the house which entitles the player to mark his cards electronically rather than using paper cards and marking them manually.
(E) The electronic dabber ticket as defined in Section 12-21-3920(22) is perforated and allows both the player and the house to retain a copy. The ticket must be sold at face value. The cards must be purchased on a bingo voucher only from a distributor licensed in this State.
(F) After completion of each session, the organization shall generate an activity report containing the number of electronic dabbers used in the session along with the house receipts for each electronic dabber bingo tickets sold. This report must be printed and maintained with the daily reports of the bingo session held."
R. Article 24, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-4005. The use of an electronic or mechanical device designed for a bingo game authorized pursuant to this chapter must be limited to a bingo promoter and the promoter's employees or any other person authorized by law to conduct bingo only in order to facilitate bingo play, and such a machine must not dispense as a prize coins or currency. The operation of the bingo games excludes machines and lottery games, including video poker lottery games, prohibited by Section 12-21-2710, 16-19-40, and 16-19-50.
Section 12-21-4300. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this article is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this article, the General Assembly hereby declaring that it would have passed this article, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective."
SECTION. 4. The 1976 Code is amended by adding:
"Section 12-2-90. (A) As used in this section, `fee-in-lieu of tax' means the amount required to be paid by the owners or lessees of any property in an industrial or business park pursuant to the provisions of Section 13(D) of Article VIII of the Constitution of this State and its implementing statutes.
(B) For purposes of the collection and enforcement of the fee-in-lieu of tax:
(1) Owners and lessees of any property in an industrial or business park shall file returns and other information as if the property were taxable.
(2) Returns are due at the same time as property tax returns would be due if the property were taxable.
(3) The fee-in-lieu of tax is due at the same time as property tax payments would be due if the property were taxable.
(4) Failure to make a timely fee-in-lieu of tax payment or to file required returns shall result in penalties being assessed as if the payment or return were a property tax payment or return.
(5) The provisions of this title which are applicable to the collection and enforcement of property taxes apply to the collection and enforcement of the fee-in-lieu of tax and, for purposes of applying those provisions, the fee-in-lieu of tax is considered a property tax. The provisions of Section 12-54-155 do not apply to this section.
(C) The provisions of this section are in addition to and do not affect any other provision of law relating to the collection and enforcement of other forms of payments in-lieu of taxes."
SECTION 5. Chapter 41, Title 2 of the 1976 Code is amended by adding:
Section 2-41-10. There is established the Joint Committee on Taxation composed of nine members. The nine members must be appointed as follows:
(1) three Senators appointed by the Chairman of the Senate Finance Committee, one of which must be a member of the minority party;
(2) three members of the House of Representatives appointed by the Chairman of the Ways and Means Committee, one of which must be a member of the minority party; and
(3) three representatives of the business community, one being a certified public accountant, appointed by the Governor.
Members of the Senate and House of Representatives serve ex-officio. The committee chairman must be one of the legislative members and the vice-chairman must be one of the business community members. Both officers are to be elected by the membership of the committee. The terms of members appointed by the Governor shall be coterminous with the term of the appointing Governor.
Section 2-41-20. The committee must:
(1) make a detailed and careful study of the revenue laws of the State, together with all other laws of the State which have a bearing upon the study of the revenue laws, and to make recommendations to the General Assembly;
(2) provide for the revision of revenue laws so as to develop a more easily understandable and workable system of revenue laws for the State;
(3) recommend changes in the basic tax structure of the State and in the rates of taxation, together with predicted revenue effects of the charges together with proposed alternate sources of revenue, to the end that our revenue system may be stable and equitable, and yet so fair when compared with the tax structures of other states, that business enterprises and persons would be encouraged by the economic impact of the South Carolina revenue laws to move themselves and their business enterprises into the State;
(4) recommend study of alternate sources of revenue found in the tax structures of other states, and particularly in the other southeastern states, and to make a report of the economic impact of the South Carolina tax structure upon the business enterprises of various types of industry, as compared with those of other southeastern states; and
(5) make recommendations for long-range revenue planning and for future amendments of the revenue laws of South Carolina.
Section 2-41-30. The committee may:
(1) hold public hearings;
(2) receive testimony of any employees of the State or any other witnesses who may assist the committee in its duties; and
(3) call for assistance in the performance of its duties from any employees or agencies of the State or any of its political subdivisions.
Section 2-41-40. The committee may adopt by majority vote rules not inconsistent with this chapter it considers proper with respect to matters relating to the discharge of its duties under this chapter.
Section 2-41-50. Professional and clerical services for the committee must be made available from the staffs of the General Assembly, the Budget and Control Board, the Department of Revenue, and other state agencies and institutions.
Section 2-41-60. The committee must make reports and recommendations to the General Assembly and the Governor by June 30, 2006, at which time the committee will be dissolved. These findings and recommendations must be published and made available to the public.
Section 2-41-70. The members of the committee are entitled to receive the per diem, mileage, and subsistence as is allowed by law for members of boards, committees, and commissions when engaged in the exercise of their duties as members of the committee. These expenses must be paid from approved accounts of their respective bodies. All other costs and expenses of the committee must be paid in equal proportion by the Senate and the House of Representatives."
SECTION 5. A. Section 59-2-70 of the 1976 Code, as added by Act 72 of 2001, is amended by adding a new subsection appropriately numbered to read:
"( ) Beneficiaries may be changed in any account by an account owner as desired to the extent not prohibited by federal law."
B. Section 59-2-80(C) of the 1976 Code, as added by Act 72 of 2001, is amended to read:
"(C) The earnings portion of any withdrawals from an account that are not qualified withdrawals shall be included in the gross income of the resident recipient of the withdrawal for purposes of South Carolina income taxes in the year of the withdrawal. Withdrawals of the principal amount of contributions that are not qualified withdrawals must be recaptured into South Carolina income subject to tax to the extent the contributions were previously deducted from South Carolina taxable income."
C. Section 59-2-80(D) of the 1976 Code, as added by Act 72 of 2001, is amended to read:
"(D) Contributions to an each investment trust account created under this chapter by a resident of this State or a nonresident required to file a State of South Carolina income tax return for any year are deductible from South Carolina income subject to tax for that year up to the limit of maximum contributions allowed to such accounts under Section 529 of the Internal Revenue Code of 1986, as amended, including funds transferred to an investment trust account from another qualified college investment account plan, as allowable under Section 529 of the Internal Revenue Code of 1986, as amended, and to the extent that the transferred funds were not permitted a state income tax deduction previously under state law. The deduction for funds transferred from another qualified college investment account shall be allowable in the year in which the funds are transferred South Carolina law.
For purposes of this subsection, the term 'qualified plan' means any plan qualified under Section 529 of the Internal Revenue Code of 1986, as amended.
State income tax deductions as provided for in this section may be taken in any taxable year for contributions and rollovers made during that taxable year, and up to April fifteenth of the succeeding year, or the due date of a taxpayer's state income tax return excluding extensions, whichever is longer."
D. The 1976 Code is amended by adding:
"Section 59-2-85. The Comptroller General and the chief financial officers of state agencies, departments, and institutions maintaining separate payroll accounts, at the request of a state employee, may arrange for contributions through payroll deduction to the program. The State Treasurer is authorized to devise a method whereby private and nonprofit businesses or organizations may arrange for employees to contribute through payroll deduction to the program."
E. Section 12-6-1140(11) of the 1976 Code, as added by Act 72 of 2001, is amended to read:
"(11) a contribution contributions to the South Carolina Tuition Prepayment Program as to the extent provided in Section 59-4-100 and to the South Carolina College Investment Program to the extent provided in Section 59-2-80."
SECTION 6. Section 12-10-80(C)(3)(f) of the 1976 Code, as last amended by Act 89 of 2001, is further amended to read:
"(f) employee relocation expenses associated with new or expanded technology intensive facilities as defined in Section 12-6-3360(M)(14) or relocation expenses associated with new national corporate headquarters as defined in Section 12-6-3410(J)(1)(a) that qualify for the enhanced corporate income tax credit under Section 12-6-3410(D);"
SECTION 7. Section 9-9-60(3) of the 1976 Code is amended to read:
"(3) A member who has attained the age of seventy and one-half years and has twenty-five years of service or who has attained the age of 70 or has 30 years of service may retire and draw a retirement benefit while continuing to serve in the General Assembly upon written application to the board setting forth at what time, not more than ninety days before nor more than six months after the execution and filing of the application, the member desires to be retired. A member who has retired under this provision shall make no further contributions to the system, shall earn no further service credit, and may not reenter membership in the system."
SECTION 8. A. Section 4-10-330(A)(3) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(3)(a) If the county proposes to issue bonds to provide for the payment of any costs of the projects, the maximum amount of bonds to be issued, whether the sales tax proceeds are to be pledged to the payment of the bonds and, if other sources of funds are to be used for the projects, specifying the other sources;
(b) the maximum cost of the project or facilities funded from proceeds of the tax and the maximum amount of net proceeds to be raised by the tax, or portion of the project or portion of the facilities, to be funded from proceeds of the tax or bonds issued as provided in this article and the maximum amount of net proceeds expected to be used to pay the cost or debt service on the bonds, as the case may be; and"
B. Section 4-10-330(C) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(C) Upon receipt of the ordinance, the county election commission must shall conduct a referendum on the question of imposing the sales and use tax in the area of the county that is to be subject to the tax. If the ordinance is received prior to October 1, 1997, a referendum for this purpose may be held on Tuesday, November 4, 1997; however, if the ordinance is received on October 1, 1997, or thereafter, a A referendum for this purpose must be held at the time of the general election. Two weeks before the referendum the election commission must shall publish in a newspaper of general circulation the question that is to appear on the ballot, with the list of projects and the cost of the projects. If the proposed question includes the use of sales taxes to defray debt service on bonds issued to pay the costs of any project, the notice must include a statement indicating that principal amount of the bonds proposed to be issued for the purpose and, if the issuance of the bonds is to be approved as part of the referendum, stating that the referendum includes the authorization of the issuance of bonds in that amount. This notice is in lieu of any other notice otherwise required by law."
C. Section 4-10-330(D) of the 1976 Code, as added by Act 138 of 1997, is amended by adding a paragraph at the end to read:
"If the referendum includes the issuance of bonds, the question must be revised to include the principal amount of bonds proposed to be authorized by the referendum and the sources of payment of the bonds if the sales tax approved in the referendum is inadequate for the payment of the bonds."
D. Section 4-10-340(B)(2) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(2) the end of the calendar month during which the Department of Revenue determines that the tax has raised revenues sufficient to provide the net proceeds equal to or greater than the amount specified in the referendum question the end of the calendar quarter during which the Department of Revenue receives a certificate under Section 4-10-360 indicating that no more bonds approved in the referendum remain outstanding that are payable from the sales tax and that all the amount of the costs of the projects approved in the referendum will have been paid upon application of the net proceeds during this quarter."
E. Section 4-10-360 of the 1976 Code, as amended by Act 93 of 1999, is further amended to read:
"Section 4-10-360. The revenues of the tax collected under this article must be remitted to the Department of Revenue and placed on deposit with the State Treasurer and credited to a fund separate and distinct from the general fund of the State. After deducting the amount of any refunds made and costs to the Department of Revenue of administering the tax, not to exceed one percent of the revenues, the State Treasurer shall distribute the revenues quarterly to the county treasurer in the county area in which the tax is imposed and the revenues must be used only for the purposes stated in the imposition ordinance. The State Treasurer may correct misallocations by adjusting subsequent distributions, but these adjustments must be made in the same fiscal year as the misallocations. However, allocations made as a result of city or county code errors must be corrected prospectively. Within thirty days of the receipt of any quarterly payment, the county treasurer or the county administrator shall certify to the Department of Revenue amounts of net proceeds applied to the costs of each project and the amount of project costs remaining to be paid and, if bonds have been issued that were approved in the referendum, a schedule of payments remaining due on the bonds that are payable from the net proceeds of the sales tax authorized in the referendum."
F. Notwithstanding the general effective date of this act, this section takes effect upon approval by the Governor and applies with respect to referenda held on or after that date. A county holding a referendum and adopting an ordinance pursuant to Article 3, Chapter 10, Title 4 of the 1976 Code, before the effective date of this section in which the ordinance provides that the proceeds of the sales tax would be used to repay bonds issued to fund project costs may continue to collect the tax and apply the revenue to the repayment of the bonds while any of these bonds remain outstanding, but in no event may the tax be collected for any period longer than the maximum term of the tax provided in the referendum.
SECTION 9. A. Section 4-10-330(C) of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"(C) Upon receipt of the ordinance, the county election commission must conduct a referendum on the question of imposing the sales and use tax in the area of the county that is to be subject to the tax. If the ordinance is received prior to October 1, 1997, a referendum for this purpose may be held on Tuesday, November 4, 1997; however, if the ordinance is received on October 1, 1997, or thereafter, a The referendum for this purpose must be held at the time of the general election unless the vote is to reimpose a tax in existence at the time of such vote, in which case the referendum may be held on a general election day or at a time the governing body of the county and the Department of Revenue determine necessary to permit the tax to be reinstated and continue without interruption. The choice of election times rests with the governing body of the county. Two weeks before the referendum the election commission must publish in a newspaper of general circulation the question that is to appear on the ballot, with the list of projects and the cost of the projects. This notice is in lieu of any other notice otherwise required by law."
B. Section 4-10-340 of the 1976 Code, as added by Act 138 of 1997, is amended to read:
"Section 4-10-340. (A) If the sales and use tax is approved in the referendum, the tax is imposed on the first of May following the date of the referendum. If the reimposition of an existing sales and use tax imposed pursuant to this article is approved in the referendum, the new tax is imposed immediately following the termination of the earlier imposed tax. If the certification is not timely made to the Department of Revenue, the imposition is postponed for twelve months.
(B) The tax terminates on the earlier of:
(1) the final day of the maximum time period specified for the imposition; or
(2) the end of the calendar month during which the Department of Revenue determines six weeks after the date the Department of Revenue formally notifies the governing body of the county that the department has determined that the tax has raised revenues sufficient to provide the net proceeds equal to, or but in no case greater than, the amount specified in the referendum question.
(C) Amounts collected in excess of the required net proceeds must first be applied, if necessary, to complete a project for which the tax was imposed; otherwise, the excess funds must be credited to the general fund of the governmental entities receiving the proceeds of the tax, in the proportion which they received the net proceeds of the tax while it was imposed."
SECTION 10. Upon approval by the Governor, SECTION 3 takes effect October 1, 2002. SECTION 5 takes effect December 31, 2001. All others SECTIONS take effect upon approval of the Governor.
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