The $9.5 million investment by Highland Baking Company is expected to create 196 new jobs over the next five years. Highland says it will locate its new bread production and distribution facility to an existing building in the county.

The Illinois-based company specializes in producing custom bread products for national restaurant chains. Highland officials say the new facility will allow them to have some additional capacity.

The state Coordinating Council for Economic Development approved the company for unspecified job development credits, which the Commerce Department says will be available once Highland meets its hiring targets.

The company says it will begin hiring for the new positions in June.

The company’s spokesperson Carolyn Cinotti says the Richland County plant makes and distributes products for North America and the Asian-Pacific market, but the company wants to meet its overseas demand more efficiently.

Cinotti said Bose needs to restructure their manufacturing operations to create a more efficient program.

“Over the next 12 months, we will be consolidating our North American manufacturing operations, transferring production of select Bose products from our Columbia, South Carolina plant to our plants in Mexico,” Cinotti said in an email.

She also said the company wants to move more of their production to Malaysia by 2013, but the Richland County plant will still continue to produce products with a smaller workforce.

Tripp Girardeau contributed to this report

State Sen. Glenn McConnell (R-Charleston)

CORRECTION: An earlier version of this story reported that Charleston County “reclassified” homes as rental properties, attributing Sen. McConnell. The county says it does not do this, but tries to keep the 4 percent property tax in place as long as the home is actually a primary residence.

As always, we know the public depends on us for accurate information and we regret any errors.

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Homeowners along South Carolina’s coast are being unfairly charged higher taxes because they rent out their property for a few weeks each summer, according to Republicans in the state Senate. Those senators accuse coastal counties (specifically Charleston County) of broadly interpreting the state’s tax laws.

At issue is how state law allows counties to calculate property tax. After Act 388 passed in 2006, owner-occupied homes could not be taxed for school operating expenses while rental properties could. As a result, an owner-occupied property tax is limited to four percent while a rental’s is capped at six percent.

However, the law does not address the issue of a primary residence that the owner also rents out occasionally.

The issue recently cropped up in Charleston County, after some residents accused the local assessor’s office of reclassifying some homes as rental property if the owner rented it out for more than two weeks each year. Charleston County officials deny that. “We approve a 4 percent assessment ratio for those who rent for more than two weeks in a year as long as they are otherwise residents,” County Administrator Allen O’Neal said in an email.

That infuriated state Sen. Glenn McConnell (R-Charleston), the powerful President pro tempore who represents the area.

“They get a 50 percent increase in their property taxes for renting out their home for three weeks,” he told South Carolina Radio Network.

In response, McConnell sponsored S.40 last year. It cleared the Finance Committee on Tuesday and now heads to the full Senate. The bill would keep the four percent tax intact as long as the home is not rented for more than 90 days each year.

“If that’s where they live, if that’s where they’re registered to vote, they’re entitled to have it treated as their home,” he said.

However, Robert Croom of the South Carolina Association of Counties says county officials use two weeks because that’s the IRS limit on how much rent an owner can collect before it becomes taxable income.

“After that point, we get into a great deal of difficulty on whether the property was rented out or not,” Croom said. He said 90 days was too long and that there is no way for county officials to know if a home was being rented for 89 days or 91 days except to trust the owner.

McConnell was not buying that argument. “It’s a case of bureaucrats inventing the law and making it so they can get more money from the public,” he said before Tuesday’s meeting.

O’Neal said the county is not trying to take advantage of property owners, but that it is only trying to follow IRS tax regulations, “So far, every taxpayer has understood the position we are in and has expressed appreciation for the honesty and information,” he said.

Croom says the bill’s fiscal impact on local governments would be more than $1 million. He said that would exclusively impact local schools, since their operating costs make up the difference between owner-occupied and rental property rates.

State Sen. Kevin Bryant (R-Anderson)

Sen. Lee Bright (R-Spartanburg) drafted the legislation after learning of a new state Department of Employment and Workforce (SCDEW) policy that would limit a fired employee to no more than four weeks of unemployment benefits. Bright said those employees should not receive the benefits at all.

Although state law already declares a fired employee ineligible for benefits, but that employee can appeal the firing and apply for benefits in the meantime.

Sen. Kevin Bryant (R-Anderson) said once a worker is paid any state benefits, even if it is for only one week, that employee is still eligible for an additional 57 weeks of federal extensions.

SCDEW’s new policy, which took effect two weeks ago, would cover those fired for absenteeism, poor attitude, violating rules, or poor work quality. Bryant says the rules do not go far enough.

“If you don’t show up for your job and you get fired, you shouldn’t draw any benefits,” Bryant said on the Senate floor Tuesday.

Bryant cited an SCDEW report that found $50 million was given last fiscal year to workers who had been fired from their previous job.

“We’ve got to provide these benefits to people who lose their job through no fault of their own,” Bryant said.

Under state law, companies that lay off the most employees pay the highest unemployment insurance premiums. Some opponents of S.1125 worry companies will purposely fire some employees instead of laying them off to avoid those higher premiums.

“How can one be assured there’s fairness?” asked Sen. Ralph Anderson (D-Greenville), “You’re listening to only the owner or the supervisor.”

The bill heads to a Senate Labor, Commerce, and Industry subcommittee.

The labor force declined 3,227 from November to December while the number of employed grew by 4,307, and the number of unemployed fell by 7,534. This is the highest number of employed and the lowest number of unemployed during 2011. The labor force level was 2,162,094 in December.

Nonfarm payroll employment dropped 3,800 from November to December but is up 17,800 from a year ago.

There were significant month-to-month increases in trade, transportation and utilities of 1,500 jobs, along with the addition 1,200 jobs in manufacturing. Manufacturing has increased 11,600 jobs from last year. The growth in trade, Transportation and utilities was mainly in retail, with durable goods primarily driving the gain in manufacturing.

The leisure and hospitality sector reported a loss of 3,500 jobs, while government reflected a decrease of 2,800 since November.

The national unemployment rate saw a decrease from 8.7 percent in November to 8.5 percent in December.

Amazon vice president for global public policy Paul Misener said Amazon wants to do more in South Carolina.

“This is not just a one-shot deal here,” he told the Columbia Rotary Club, “This is a commitment to the state– a long-term, lasting relationship.”

In a written statement, the company says they will begin hiring for the Spartanburg facility later this year. The one million square-foot center will be built off John Dodd Road, north of the city of Spartanburg, the company said.

The announcement was expected at some point after the Spartanburg County Council approved an incentives package for the company in December.

“We’ve been growing double digits right through the recession,” Misener said, “And that’s why we’re so confident that we will continue to grow here in South Carolina.”

Misener also pushed leaders to support a new federal law that would give states the power to collect sales tax online. That was an issue that almost derailed Amazon’s expansion to this state last year.

Buffets, Inc. closed 80 restaurants nationwide as part of a reorganization plan after it filed for Chapter 11 bankruptcy. Employees at a location in Georgetown told the Georgetown Times they first learned about the closing when they arrived for work Friday.

The company also owns six other chains, such as Old Country Buffet and Fire Mountain Grill. It purchased Greer-based Ryan’s Restaurant Group in 2006.

“The decision to close these underperforming restaurants, though difficult, resulted from a comprehensive, store-by-store analysis of financial performance, occupancy costs, market conditions and the long-term strategy of our reorganized restaurant portfolio,” Buffets CEO Mike Andrews said in a statement.

Here is the list of restaurants closed last week in South Carolina:
-3517 Clemson Blvd., Anderson
-1120 N Fraser St., Georgetown
-1255 Woodruff Rd., Greenville
-7321 Rivers Ave., North Charleston
-1616 Sandifer Blvd, Seneca
-1707 Charleston Hwy., West Columbia

Delhaize Amerca says all the stores will close within 30 days. It says about 5,000 employees will be laid off nationwide.

The company said slow sales prompted it to close those underperforming stores.

List of closings in SC:

–U.S. 52 & U.S. 52 Bypass, Moncks Corner

 –697 Long Point Road, Mt. Pleasant

3385 S. Morgans Point Road, Mt. Pleasant

–825 Crossroad Plaza, Fort Mill

–709 Kendall Road, Newberry

–100 U.S. 321 Bypass, Winnsboro

–4377 S.C. 24, Anderson

–1332 S. Pleasantburg Drive, Greenville

–3093 S. Highway 14, Greer

–11295 Asheville Highway, Inman

–241 Hillcrest Drive, Laurens

–2430 Reidville Road, Spartanburg

–230 Cedar Springs Road, Spartanburg

–6 Bow Circle, Hilton Head

Company officials made the announcement during a ceremony commemorating the company’s milestone of producing 2 million vehicles since its 1994 opening.

Frank-Peter Arndt, the BMW Group board member responsible for production, said the company’s intention is to expand its popular X-model. Arndt said production of the new BMW X4 will begin with the expansion of the plant.

“We look forward to a new model with great anticipation. For nearly 20 years, this team has always proven their steadfast commitment to producing quality vehicles for our customers around the world,” said Josef Kerscher, president of BMW Manufacturing.

The company says this addition is expected to raise production capacities up to 300,000 units by their mid-term, and by the end of the year they expect to have more than 7,500 employees at their 4 million-square-foot facility.

South Carolina Radio Network’s Tripp Girardeau contributed to this article.

By a 76-47 party-line vote, the House sustained Haley’s veto of legislation that would have created the I-95 Corridor Authority– a 19-member board that could apply for grants and coordinate local governments for economic development purchases.

Haley said the new body was not necessary and would copy what the state’s Commerce Department is already doing in the area. Most House members originally supported the council (it passed 84-17 last May), but switched after backlash from conservative groups who accused them of adding a new layer of bureaucracy.

State Rep. Gilda Cobb-Hunter (D-Orangeburg) blasted her colleagues’ vote from the House floor Tuesday. “In spite of what you’ve been told, this is not creating another bureaucracy. In spite of what you’ve been told, this is not using taxpayer dollars.”

Cobb-Hunter and other Democrats from the area– often referred to as the “Corridor of Shame” due to its poverty and lack of infrastructure– accused their opponents of sabotaging efforts to bring economic growth to the region.

Haley vetoed the bill in June. “I encourage local governments and local chambers to work together in the spirit of cooperation set forth in this bill,” the governor wrote at the time, “but this cooperation does not require a General Fund appropriation or a new state agency.”

Sen. John Matthews (D-Orangeburg), who sponsored the legislation, said confusion led to the veto. Although the council was not supposed to receive state funds, he said, language was included in the bill that would have given the legislature the option to fund it in the future.

The bill reads, “The authority shall receive state funds as appropriated by the General Assembly.” It’s that one line that has led to concern from Lowcountry 9.12 and other conservative groups– even though the General Assembly did not plan to fund the authority anytime soon.

The Senate overrode the governor 30-10 in June, but the House’s action effectively kills the bill.

State Sen. Kevin Bryant has been a vocal opponent of the state's current requirements for jobless benefits (File)

Jobless workers would have to perform community service after six months of receiving jobless benefits under a bill sponsored by state Sen. Paul Campbell (R-Goose Creek).

Campbell said he wants to help unemployed workers keep their skills honed, “There’s a lot of activities out there that can be done by folks that are looking for work,” he told members of the Senate Labor, Commerce, and Industry committee, “We’re asking for 16 hours a week… that they’ll go in and do some kind of community service. And I don’t mean picking up trash on the side of the highway. If you’re a degreed person, you can work in the schools system, support a teacher.”

Campbell said he chose 16 hours because he wanted to give people a chance to continue looking for work the rest of the week.

The panel also a second bill that would require unemployment insurance recipients to successfully pass a drug test and a third that would not allow a person to collect the benefits if they are only seeking part-time work.

“We just can’t do things the way we used to do them,” said Sen. Kent Williams (D-Marion), who voiced support for the community service requirements, “It just don’t work anymore.”

However, an advocate group said thousands of struggling South Carolinians would be unfairly caught up in the changes.

“I wish we would start loooking at the people of South Carolina in a better lens,” said Sue Berkowitz of the Appleseed Legal Center, “What we’re doing is we’re talking to them as if somehow they’re already a criminal.”

Berkowitz say the community service requirement would violate federal law, which frowns upon setting conditions for unemployment insurance. She said South Carolina’s Department of Employment and Workforce should instead encourage people to voluntarily enroll in nonprofit programs.

SCDEW director Abraham Turner

SCDEW director Abraham Turner seemed to echo her sentiments, although he said he supported Campbell’s efforts. “Finding a way to exact a voluntary effort would probably be a plausible solution,” he told the committee members.

However, Sen. Kevin Bryant said it’s already optional– an out-of-work person can volunteer at a nonprofit right now if they want to. He insisted the Senate would seek to make the service hours mandatory, even if it meant a lawsuit.

“It’s time for us to start pushing back on the feds,” he told reporters, “This is a step in that direction.”

Berkowitz said she did not like that attitude. “They said that about the anti-immigration legislation that went through, too. And we saw what the courts said.”

A federal judge struck down some sections of South Carolina’s new immigration law last month.

Turner also told the committee that his agency was cracking down on those employees who were fired for absenteeism, poor work, or other cause. The new SCDEW policy would only allow those workers to receive four weeks of unemployment benefits, instead of the 10 weeks they can currently receive. Bryant said those employees should not get any benefits, at all.

The South Carolina Department of Commerce says more than 23,000 state residents will benefit from the $2.2 million Community Development Block Grant (CDBG).

The money will be used for develop housing and expand economic opportunities in 11 counties, cities and towns across the state.

Commerce Secretary Bobby Hitt said, in a statement, the grants will have a positive impact on the recipient communities.

“These resources not only help improve residents’ quality of life, but also help create a more competitive environment for bringing jobs,” said Hitt.

The grants were selected through a statewide competition.

Berkley County and the cities of Greenwood, Lancaster, and Hartsville got the largest grants, with each receiving $500,000.

The recipient communities were also required to provide at least 10 percent in matching funds.

The money was provided by the federal Department of Housing and Urban Development.

The state estimates that more than 70 percent of the funding will assist the low-income residents.

The other grant recipients included: Aynor ($89,482), Bennettsville ($25,000), Blackville ($24,750), Moncks Corner ($25,000), Sellers ($50,000), Whitmire ($25,000), and Union County ($25,000).