1994 Permanent House Journal Printed Pages 2740-2750 - South Carolina Legislature Online

Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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Printed Page 2730, Feb. 24 | Printed Page 2750, Feb. 24

Printed Page 2740 . . . . . Thursday, February 24, 1994

plant or to build a transport line to get all of the service from the DHEC, the Water Resources Commission, the Water Commission.

They all come in and give us clearance on that and we stress that very strongly. We will not approve it until they have approval from all of these agencies that their -- they will not pollute the water and that the air.
Q. And when you make these siting decisions do you allow environmental interest groups and other intervenors to cross examine the folks that present this testimony?
A. Yes, sir. We have an open hearing, Mr. Couick, and all parties are notified in the papers and we certainly wouldn't -- we wish and encourage them to come in and be a part of the hearings, yes, sir.
Q. Mr. Mitchell, I was under the understanding that at least in one siting case perhaps the one down in Cope that testimony was taken over the phone from an environmental agency and that there were complaints made that there was no ability to cross examine. Are you familiar with that?
A. I'm sure not, Mr. Couick. I'm sorry. I'm not familiar with that at all.
Q. And a couple of -- two last questions, if I could Mr. Mitchell, would you serve out the remainder of your term if you were to be reelected?
A. Yes, sir. If the Lord allows me to live.
Q. What type of time commitment is it for you to serve --
A. Oh, it's full time. I come to Columbia every day and I commute from Saluda and I'm here every day.
Q. And how many days do you have hearings on?
A. Usually three days, Tuesday, Wednesday and Thursday. And sometime -- we have one coming up on Friday.
Q. Right. There has been a lot of criticism of extra dollars being spent from time to time by state employees, extra dollars?
A. Yes.
Q. Do you tend to travel to Columbia and draw per diem for all five days in a week?
A. Yeah, I travel to Columbia. It's 100 miles round trip and I do get per diem, yes, sir.
Q. So you get mileage and per diem for those five days?
A. Yes. Yes.
Q. Thank you. That's all, Mr. Chairman.
A. Thank you.
THE CHAIRMAN: Any questions from any member of the committee? Representative Kennedy.

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EXAMINATION BY REPRESENTATIVE KENNEDY:
Q. Mr. Mitchell, I would like to ask you as a sitting member of the Public Service Commission, tell me one thing that you yourself have brought to the Public Service Commission that you're very proud of, something that you have implemented at the Public Service Commission yourself?
A. One thing that I'm really proud of, I have served as chairman on two different occasions. While I was chairman, we instigated a Watts line and I'm very proud of the Watts Line Service that we have for the consumers of South Carolina.

It's listed in all of the telephone directories in the front of the directory, our number. And any citizen from South Carolina can call in about complaints, about suggestions free of charge as you know. That is one. I was very much interested for the commission to get an executive director and public relations person to let -- to keep the public informed of what we were doing as much as possible, to meet with the media.

We've stressed to have an open commission. We always -- on our agenda we put down in the bottom,
"Public invited to attend meetings." We vote in public as the law requires us to do, but we're glad to do that. And we just like to keep the public informed and I think the Watts line and the executive director with his public relations that he does with the media and the public, all of this helps to keep the public more informed.

An informed public is what makes satisfaction, I think. Not knowing about these things is what causes dissatisfaction. That's a couple of the things that I'm really happy to have been a part of.
Q. Let me follow-up. How many employees do you have at the Public Service Commission?
A. 131.
Q. Of that number how many of those employees are minorities?
A. I believe it's about -- I don't have the exact number.
Q. Just a ball park figure. It doesn't --
A. Yes. About 30, I believe. I tell you why, we had an -- in our Safety Division, we had been working on our Transportation Division and then our Safety Division, we had a number of minorities in it. One of our lieutenants was a young, black female. But that was transferred out just in the last few weeks to the Safety Department under Mr. Rose and so that cut down considerably. But we are --
Q. Cut down considerably on --
A. On the number of minorities that we had.

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Q. Just let me follow the train of thought here. Working in management in the Public Service Commission, how many do you have?
A. I believe --
Q. Staff?
A. 30, yes, sir.
Q. No, in management --
A. Oh, in management.
Q. -- in the Public Service Commission. Yes.
A. It's five, I believe, sir. I'd have -- I'll have to check that back. Just exactly because I don't follow that too closely.
Q. Let me ask you this, Mr. Mitchell. How do you feel about Affirmative Action?
A. Oh, I feel that certainly a person comes before us we should try to percentage wise hire as many minorities as we -- as possible. When they apply, we always give them full consideration and I'm a strong believer in that.
Q. Thank you, sir.
THE CHAIRMAN: Any other questions? Representative Wilkes.
EXAMINATION BY REPRESENTATIVE WILKES:
Q. Good afternoon, Mr. Mitchell. How are you?
A. Hey. Hello, Mr. Wilkes. Just fine. Thank you, sir.
Q. Interesting to me that, and I never knew that -- I'm a country boy, I never knew you spent so much time in the cattle business and the dairy business?
A. Yeah.
Q. I think that probably having gone through -- I don't know how many dairies are left in South Carolina. It looks like you had to give your dairy business up and just go to beef cattle farming, but having had that experience as a farmer and a small business person and a working person, do you feel like that that gives you a good perspective in dealing with issues with ordinary people and rural folk?
A. I feel so, Mr. Wilkes. We have hundreds and hundreds of people out there on small farms across South Carolina. They're down to earth good people I feel and I think my working there in the agriculture on my father's farm and my farm now, I have an interest in some beef cattle.

My son lives next door and helps manage the farm, but it does give me a chance to represent those people. They -- i'm out mixing and mingling with them from day to day. I go all around the state at different occasions and they feel free to come up and talk to me about their problems.

It's something that -- it is problems they're having with the utilities, the electric. And we do not as you know regulate many of them or do receive

Printed Page 2743 . . . . . Thursday, February 24, 1994

a service from the co-ops which the commission does not regulate the co-ops, only on boundary lines. That's only boundaries.
Q. Just --
A. I think it does put me in the position of being a representative of a big segment of the people of South Carolina.
Q. This is a little bit off the subject, we're about to wrap it. But what's going to happen to the dairy industry in our state? I mean it concerns me because I know in my this district there is not -- there is one farm left?
A. The dairy industry, Mr. Wilkes, has had its pitfalls. The operational costs have skyrocketed of machinery costs.
Q. How about competition from the big --
A. Competition from the big dairies in the Wisconsin and as you know what has hurt as much as anything, with the interstate highways and the fast delivery of milk, they can load a tank of milk in Wisconsin and have it down here in just a little bit. A very short time.
Q. It still doesn't have the shelf life we used to have.
A. Right.
Q. I noticed that myself.
A. We -- the dairy people are in competition with that type of a setup now, and to answer your question, it looks like in my county where we had 90 dairies at one time, now we're down to 10. And it looks like it's going to be the big volume dairies out in the Midwest and in Florida.
Q. Thank you.

PERSONAL DATA QUESTIONNAIRE SUMMARY

1. Rudolph Mitchell

Home Address: Business Address:

Rt. 1, Box 152 SC Public Service Commission

Saluda, SC 29138 P.O. Drawer 11649

Columbia, SC 29211

111 Doctors Circle

Columbia, SC 29203

2. He was born on September 6, 1926.

Social Security Number: ***-**-****.

3. S.C. Driver's License Number: *******.

S.C. Voter Registration Number: 0 870 958.

Printed Page 2744 . . . . . Thursday, February 24, 1994

4. He is widowed and has 2 children: Randy Mitchell, age 43 (Probate Judge of Saluda County; owner/manager of Turkey and Cattle Operation) and Molly M. Spearman, age 39 (Teacher and Member of the S.C. House of Representatives, Seat #39).

5. Military Service: U.S. Army Corporal (1945-1947).

Honorable discharge.

Serial Number: 44-094-935.

6. He attended Hollywood High School from 1939 to 1943; the National College of the State Judiciary (University of Nevada) in 1981, where he took a graduate course in administrative law designed for administrative law judges--he completed the course while serving as a member of the S.C. Public Service Commission. In 1980, he attended the first economic summit meeting sponsored by the S.C. Chamber of Commerce in Myrtle Beach and 2 seminars entitled "Co-generation" and "Utilities and Energy Efficiency: New Opportunities and Risks," directed by U.S. Department of Energy (Washington, D.C.).

7. He served in the S.C. House of Representatives from 1963 to 1973 and was elected Chairman of the House Agriculture and Conservation Committee in 1973. He has served as a Public Service Commissioner since 1973.

9. During high school, he worked on his father's dairy farm. Shortly after completing high school, he entered the dairy business in a partnership-- Mitchell Brothers' Guernsey Farms-- with his brother. The business is now operated by his son, Randy, and consists of a beef cattle herd.

10. He owns a herd of beef cattle which his son, Randy, manages.

14. He was sued in 1979 in his capacity as Vice President and member of the S.C. Public Service Commission. The Plaintiff sought a declaration that S.C. Code Section 58-3-142 was unconstitutional. The Plaintiff also sought actual and punitive damages and an injunction against the statute's enforcement. The case was settled with no award of damages to the Plaintiff.

Printed Page 2745 . . . . . Thursday, February 24, 1994

19. He has served as a S.C. Public Service Commissioner from 1973 to 1994.

22. In seeking the office of Public Service Commissioner, he has spent $49.30 on stamps, $119 for printing, and $48.20 on letters and envelopes.

26. Professional organizations: National Association of Regulatory Utility Commissioners (NARUC); Southeastern Association of Regulatory Commissioners (SEARUC).

27. Civic, charitable, etc. organizations:National Grange; S.C. Farm Bureau; Saluda Mental Health Association; Saluda Lions Club; President, Advent Christian Mens' Fellowship; President, S.C. Advent Christian Conference; American Legion Post #65; Hickory Grove Church Sunday School (Superintendent for 18 years); Hickory Grove Advent Christian Church.

28. He operated a 100-cow dairy farm for approximately 20 years. The day- to-day management consisted of record-keeping, employee relations, and financial matters. This experience has been beneficial in his present position as Public Service Commissioner. During the last 4 years of his membership in the S.C. House of Representatives, he was the only member residing in Saluda County. In working with the county's citizens, he gained knowledge of problems that exist in all walks of life, specifically financial and consumer problems. He has appreciated and used that experience in his work on the Public Service Commission. Preparing and maintaining a balanced budget for his county was another duty, and that experience has aided him in making the many rate-of- return and financial decisions that confront the Commission weekly.

29. Five letters of reference:

(a) Mrs. Glenda Metts

Assistant Vice-President, Newberry Federal

300 N. Main Street

Saluda, SC 29138

(803) 445-8173

(b) Mr. F.G. Scurry

Rt. 1

Saluda, SC 29138

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Saluda County Bank

200 North Main

Saluda, SC 29138

(d) Hon. Morris Davenport

Mayor of Saluda

115 Church Street

Saluda, SC 29138

(e) Mr. Larry E. Gentry

111 N. Main Street

Saluda, SC 29138

30. He is seeking the position of At-Large Member of the Public Service Commission.

THE CHAIRMAN: Keep your seat, Mr. Mitchell. Is there anything further to come before this committee today. This committee is adjourned.

(The proceedings adjourned at 4:35 p.m.)

STATEMENT BY SENATOR HOLLAND

I have a personal relationship with one of the candidates, and I have, therefore, recused myself from the screening or deliberations of candidates' qualifications in the Fifth Public Service District.

STATEMENT BY REPRESENTATIVE WILKES

I have recused myself from any discussions of candidates qualifications in the Fifth Public Service District due to the fact that my CPA firm has a financial relationship with one of the candidates. I am also refraining from campaigning or voting for any candidates of the Fifth Public Service District or doing anything that would appear improper.

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STATEMENT BY REPRESENTATIVE QUINN

Because I have a personal relationship with one of the candidates, I have recused myself from the deliberations of candidates' qualifications in the Second Public Service District.

Respectfully submitted,

SENATE MEMBERS:
/s/The Honorable Donald H. Holland,[4] Chairman
/s/The Honorable C. Tyrone Courtney
/s/The Honorable Darrell Jackson

SENATE PUBLIC MEMBERS:
Dr. Barbara R. Hatton
Mr. J. Stephen Bilton

HOUSE MEMBERS:
/s/The Honorable Timothy C. Wilkes,[5] Vice-Chairman
/s/The Honorable Thomas E. Huff
/s/The Honorable Kenneth Kennedy
/s/The Honorable Richard M. Quinn, Jr.[6]

---------------------------------
[4] Senator Holland did not participate in the screening or evaluation of any candidate for the Fifth Public Service Commission District.

[5] Representative Wilkes did not participate in the screening or evaluation of any candidate for the Fifth Public Service Commission District.

[6] Representative Quinn did not participate in the evaluation of any candidate for the Second Public Service Commission District.

Printed Page 2748 . . . . . Thursday, February 24, 1994

On motion of Rep. WILKES, the Report was ordered printed in the Journal.

MOTION ADOPTED

Rep. SCOTT moved that when the House adjourns, it adjourn in memory of Elijah O. Fogle, which was agreed to.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., February 23, 1994
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 258:
S. 258 -- Senator Drummond: A BILL TO AMEND SECTION 40-69-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE BOARD OF VETERINARY MEDICAL EXAMINERS, SO AS TO PROVIDE THAT CONGRESSIONAL DISTRICT NOMINEES FOR APPOINTMENT TO THE BOARD BY THE GOVERNOR MUST BE ELECTED BY VETERINARIANS RESIDING IN THAT DISTRICT; TO AMEND SECTION 40-69-80, RELATING TO LICENSES, SO AS TO DELETE THE REQUIREMENT TO BE OF GOOD MORAL CHARACTER; TO AMEND SECTION 40-69-90, RELATING TO TEMPORARY LICENSES AND FEES, SO AS TO PROVIDE THAT THESE FEES MUST BE SET IN REGULATION; TO AMEND SECTION 40-69-140, RELATING TO GROUNDS TO DENY, SUSPEND, OR REVOKE A LICENSE, SO AS TO DELETE THE USE OF SOLICITORS TO OBTAIN PATRONAGE; TO AMEND SECTION 40-69-430, RELATING TO ANIMAL HEALTH TECHNICIAN CERTIFICATION, SO AS TO DELETE PROVISIONS NO LONGER EFFECTIVE AND REQUIREMENT TO BE OF GOOD PHYSICAL AND MENTAL HEALTH AND GOOD MORAL CHARACTER; TO AMEND SECTION 40-69-440, RELATING TO TEMPORARY CERTIFICATES AND FEES, SO AS TO PROVIDE THESE FEES MUST BE SET IN REGULATION; TO AMEND SECTION 40-69-450, RELATING TO APPLICATIONS FOR EXAMINATIONS AND FEES, SO AS TO DELETE THE REQUIREMENT FOR CERTAIN PERSONAL REFERENCES AND TO PROVIDE THAT THESE FEES MUST BE SET BY REGULATION; TO AMEND SECTION 40-69-460, RELATING TO CONTENTS OF EXAMINATIONS, SO AS TO DELETE

Printed Page 2749 . . . . . Thursday, February 24, 1994

PROVISIONS RELATING TO ORAL OR PRACTICAL EXAMINATIONS; TO AMEND SECTION 40-69-480, RELATING TO RENEWAL OF CERTIFICATES AND FEES, SO AS TO PROVIDE THAT THESE FEES MUST BE SET IN REGULATION; TO PROVIDE TEMPORARY FEES UNTIL FEES ARE SET BY THE BOARD IN REGULATION; AND TO REAUTHORIZE THE STATE BOARD OF VETERINARY MEDICAL EXAMINERS FOR SIX YEARS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

REPORTS OF STANDING COMMITTEES

Rep. T.C. ALEXANDER, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:

S. 541 -- Senators Saleeby, Land, McConnell, Courtney, Rankin and Rose: A BILL TO ENACT THE "SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY ACT", INCLUDING AMENDING SECTIONS 38-71-920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR SMALL GROUP HEALTH INSURANCE PURPOSES, SO AS TO MAKE CERTAIN CHANGES TO THE DEFINITIONS OF "SMALL EMPLOYER" AND "HEALTH INSURANCE PLAN" OR "PLAN", AND TO PROVIDE A DEFINITION FOR "LATE ENROLLEE"; 38-71-730, AS AMENDED, RELATING TO REQUIREMENTS FOR GROUP ACCIDENT, GROUP HEALTH, AND GROUP ACCIDENT AND HEALTH INSURANCE POLICIES, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, INCLUDING THE PROVISION THAT, FOR GROUPS OF TEN OR LESS PERSONS, EVIDENCE OF INDIVIDUAL INSURABILITY MAY BE REQUIRED FOR PERSONS FIRST BECOMING ELIGIBLE FOR INSURANCE AFTER THE EFFECTIVE DATE OF THE POLICY, AND ADD CERTAIN PROVISIONS; 38-70-10, RELATING TO DEFINITIONS FOR THE PROVISIONS OF LAW ON UTILIZATION REVIEWS AND PRIVATE REVIEW AGENTS IN CONNECTION WITH THE ALLOCATION OF HEALTH CARE RESOURCES AND SERVICES FOR A PATIENT OR GROUP OF PATIENTS, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS FROM THE DEFINITION OF "PRIVATE REVIEW

Printed Page 2750 . . . . . Thursday, February 24, 1994

AGENT"; 38-70-15, RELATING TO THE APPLICABILITY OF CHAPTER 70 OF TITLE 38 (UTILIZATION REVIEWS AND PRIVATE REVIEW AGENTS), SO AS TO PROVIDE THAT THE CHAPTER APPLIES TO INSURANCE COMPANIES, ADMINISTRATORS OF INSURANCE BENEFIT PLANS, AND HEALTH MAINTENANCE ORGANIZATIONS LICENSED AND REGULATED BY THE DEPARTMENT OF INSURANCE, AND PROVIDE THAT SUCH INSURANCE COMPANIES, ADMINISTRATORS, AND HEALTH MAINTENANCE ORGANIZATIONS ARE EXEMPT FROM CERTAIN PROVISIONS OF LAW; AND 38-71-940, RELATING TO SMALL GROUP HEALTH INSURANCE AND PREMIUM RATES, RATING FACTORS, AND THE PROHIBITION ON THE INVOLUNTARY TRANSFER OF A SMALL EMPLOYER INTO OR OUT OF A CLASS OF BUSINESS, SO AS TO DELETE CERTAIN PROVISIONS, PROVIDE THAT SMALL EMPLOYER INSURERS SHALL NOT USE CASE CHARACTERISTICS, OTHER THAN AGE, GENDER, INDUSTRY, GEOGRAPHIC AREA, FAMILY COMPOSITION, AND GROUP SIZE WITHOUT PRIOR APPROVAL OF THE CHIEF INSURANCE COMMISSIONER, AND PROVIDE THAT IF A SMALL EMPLOYER INSURER USES INDUSTRY AS A CASE CHARACTERISTIC IN ESTABLISHING PREMIUM RATES, THE HIGHEST RATE FACTOR ASSOCIATED WITH ANY INDUSTRY CLASSIFICATION SHALL NOT EXCEED THE LOWEST RATE FACTOR ASSOCIATED WITH ANY INDUSTRY CLASSIFICATION BY MORE THAN FIFTEEN PERCENT; AND TO PROVIDE FOR THE SEVERABILITY OF THE PROVISIONS OF THIS ACT.

Ordered for consideration tomorrow.

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