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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ORDERED TO THIRD READING

The following Bills and Joint Resolutions were taken up, read the second time, and ordered to a third reading:

H. 4858 -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOLID WASTE MANAGEMENT: MUNICIPAL SOLID WASTE LANDFILL OPERATOR'S CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 1661, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 5092 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO CRITERIA FOR PROMOTION OF STUDENTS TO THE NEXT HIGHER GRADE (AMENDED), DESIGNATED AS REGULATION DOCUMENT NUMBER 1741, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 5093 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO GRADUATION REQUIREMENTS (AMENDED), DESIGNATED AS REGULATION DOCUMENT NUMBER 1742, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Rep. JASKWHICH explained the Joint Resolution.

H. 5094 -- Rep. Rhoad: A BILL TO AMEND SECTION 50-11-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE HUNTING SEASON FOR SMALL GAME, SO AS TO REVISE THE QUAIL SEASON IN GAME ZONE 8.

H. 5102 -- Reps. Wells and Allison: A BILL TO AMEND SECTION 20-7-650, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DUTIES OF THE LOCAL CHILD PROTECTIVE AGENCY AND SECTION 20-7-680, AS AMENDED, RELATING TO THE DEPARTMENT OF SOCIAL SERVICES CENTRAL REGISTRY OF CHILD ABUSE AND NEGLECT, SO AS TO PROVIDE THAT CERTAIN IDENTIFYING AND STATISTICAL INFORMATION ON

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INDICATED CASES OF ABUSE AND NEGLECT MUST BE RETAINED IN ACCORDANCE WITH A RETENTION SCHEDULE PROMULGATED BY THE DEPARTMENT IN REGULATION RATHER THAN REQUIRING THE DEPARTMENT TO ONLY MAINTAIN THESE RECORDS FOR SEVEN YEARS.

Rep. WELLS explained the Bill.

S. 1330 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF COSMETOLOGY, DEPARTMENT OF LABOR, LICENSING AND REGULATION, RELATING TO THE PRACTICE OF COSMETOLOGY, DESIGNATED AS REGULATION DOCUMENT NUMBER 1729, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4576 -- Reps. McLeod and Littlejohn: A BILL TO REPEAL SECTION 34-13-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM INVESTMENT OF A BANKING CORPORATION IN REAL ESTATE MORTGAGES.

Rep. VAUGHN explained the Bill.

H. 4920 -- Reps. Rudnick, Stone and Sharpe: A BILL TO AMEND SECTION 50-11-703, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON THE USE OF LIGHTS FROM VEHICLES TO OBSERVE OR HARASS WILDLIFE IN GAME ZONE 1, SO AS TO INCLUDE GAME ZONE 3.

H. 4859--TABLED

The following Joint Resolution was taken up.

H. 4859 -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOLID WASTE MANAGEMENT: MUNICIPAL SOLID WASTE INCINERATOR ASH LANDFILL, DESIGNATED AS REGULATION DOCUMENT NUMBER 1669, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Rep. SHARPE moved to table the Joint Resolution, which was agreed to.

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S. 226--OBJECTIONS

The following Bill was taken up.

S. 226 -- Senator Leatherman: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-27-110 SO AS TO PROVIDE LEASE-PURCHASE OR LEASE-BACK AGREEMENTS INVOLVING REAL PROPERTY ENTERED INTO BY THE STATE OR POLITICAL SUBDIVISIONS OF THE STATE WHEREIN THE STATE OR POLITICAL SUBDIVISION IS THE LESSEE CONSTITUTES GENERAL OBLIGATION DEBT FOR THE PERIOD OF THE LEASE AND TO PROVIDE THAT THIS GENERAL OBLIGATION DEBT MAY NOT VIOLATE THE CONSTITUTIONAL DEBT LIMITATIONS APPLICABLE TO THE STATE OR POLITICAL SUBDIVISION UNDER ARTICLE X OF THE STATE CONSTITUTION.

Reps. SCOTT, WOFFORD, WILLIAMS, NEAL, STILLE, GONZALES, KEYSERLING, LAW, ELLIOTT, ANDERSON, D. WILDER and JENNINGS objected to the Bill.

H. 5027--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 5027 -- Reps. Breeland, Waldrop, Holt, Hallman, Inabinett, Fulmer, Jaskwhich, J. Bailey, Spearman, Govan, McMahand, Scott, Whipper, White, Kennedy, Law, Anderson, Williams, G. Bailey, Hines, Phillips, Harrell, Byrd, Keyserling, J. Brown and Canty: A BILL TO AMEND SECTION 59-30-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE BASIC SKILLS ASSESSMENT PROGRAM, SO AS TO FURTHER PROVIDE FOR CERTAIN OPTIONS WHICH MUST BE OFFERED TO A STUDENT WHO HAS EXITED THE SCHOOL SYSTEM AT THE END OF THE TWELFTH GRADE WITHOUT HAVING PASSED THE EXIT EXAM, INCLUDING A REQUIREMENT THAT A SUMMER TESTING OF THE EXIT EXAM FOLLOWING A SUMMER REMEDIATION PROGRAM MUST BE OFFERED TO THESE STUDENTS.

The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\DKA\3359SD.94), which was adopted.

Amend the bill, as and if amended, by striking Section 59-30-10(f) as contained in SECTION 1 and inserting:

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/(f) Beginning in the school year 1981-82 and continuing through the school year 1984-85, administer the test specified in item (e) of this section to all students in grade eleven for the purpose of collecting baseline data. The Department of Education shall use the baseline data for the purpose of program assessment and shall provide assistance to those schools or districts in which the data indicate that program adjustment or modification is most needed due to inordinate numbers of children not passing the test. The State Board of Education shall use the baseline data for the purpose of determining the high school credentials to be awarded students not meeting the minimum achievement scores. Beginning with the school year 1985-86, the eleventh grade examination may be no longer administered and the board shall cause to be administered an exit examination to all tenth grade students. Local school districts shall establish remedial programs to assist those students who do not pass the examination. Passage of this exit examination is a condition for the receipt of a state high school diploma for those students who otherwise meet the requirements for the diploma during the school year 1989-90 and thereafter. Additionally, during the school year 1989-90 and thereafter individuals participating in adult education programs must pass the exit examination as an additional requirement for the receipt of a state high school diploma. Failure to pass the examination obligates the student to enroll in a remedial program. Students who do not pass the examination in the tenth grade must retake the test in the eleventh grade and may retake the test twice in the twelfth grade, thereby providing students with four opportunities to pass the exit examination. If an individual exits the school system at the end of the twelfth grade without having passed the exit examination, he shall be awarded an appropriate State certificate indicating the number of credits earned and grades completed or may be offered the opportunity to:

(1) accept a certificate indicating the number of credits earned and grades completed instead of a diploma;

(2) return in the fall as a senior if he is under the maximum age for attending high school, fully enroll in school, and retake the exit examination twice if necessary in the same manner it is offered to other seniors;

(3) enroll in the summer school exit exam program established below; or

(4) enroll in adult education.

For a student who has failed to pass the exit examination after four chances and who certifies that his military, educational, or other career goals must be placed on hold as a result of his failure to pass the exit

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exam, a summer testing of the exit exam following a remediation program in summer school after the student's twelfth grade year may be offered to allow these students to move forward with their career in a timely manner. If the student fails the exit exam following this summer program, he must then be offered the options (1), (2), or (4) referred to above. All costs related to the summer school program and summer testing of the exit exam must be paid by the student."/

Amend title to conform.

Rep. PHILLIPS explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 4656--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 4656 -- Reps. T.C. Alexander, Allison, Barber, Baxley, H. Brown, Chamblee, Davenport, Fulmer, Gonzales, Hallman, J. Harris, Harwell, Hutson, Jennings, Keyserling, Kinon, Lanford, McAbee, McKay, Rudnick, Scott, D. Smith, Stoddard, Wells, Whipper, Wright, A. Young, Stuart and Wofford: A BILL TO PROVIDE THAT EACH INSURED COVERED FOR MENTAL, EMOTIONAL, OR NERVOUS DISORDERS OR CONDITIONS MUST BE ALLOWED TO SELECT THE PHYSICIAN OR CERTAIN OTHER SPECIFIED PROVIDER TO TREAT THE DISORDER OR CONDITION, AND REQUIRE THE INSURER TO PAY THE COVERED CHARGES UP TO THE LIMITS OF COVERAGE IF THE DISORDER OR CONDITION TREATED IS COVERED BY THE INSURANCE POLICY AND THE PHYSICIAN OR OTHER SPECIFIED PROVIDER IS LICENSED BY THE STATE.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\BBM\9129JM.94), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 38-71-200 of the 1976 Code is amended to read:

"Section 38-71-200. Discrimination between individuals of the same class in the amount of premiums or rates charged for any a policy of

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insurance covered by this chapter, in the benefits payable thereon on the policy, in any of the terms or conditions of the policy, or in any other another manner whatsoever is prohibited except as provided in Sections 38-57-140 and 38-71-1110. Whenever any If a policy of insurance governed by this chapter provides for payment or reimbursement for any a service which is within the scope of practice of a licensed podiatrist, licensed oral surgeon, or licensed optometrist, or licensed master social worker, licensed independent social worker, licensed marriage and family therapist, licensed professional counselor, or psychiatric clinical nurse specialist, the insured or other person entitled to benefits under the policy is entitled to payment or reimbursement in accordance with the usual and customary fee for the services whether the services are performed by a licensed physician or a licensed podiatrist, a licensed oral surgeon, or a licensed optometrist, or licensed master social worker, licensed independent social worker, licensed marriage and family therapist, licensed professional counselor, or psychiatric clinical nurse specialist, notwithstanding any provision contained in the policy, and the policyholder, insured, or beneficiary has the right to may choose the provider of the services."

SECTION 2. This act takes effect upon approval by the Governor./

Amend title to conform.

Rep. T.C. ALEXANDER explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 5086--DEBATE ADJOURNED

The following Bill was taken up.

H. 5086 -- Reps. D. Smith and Tucker: A BILL TO AMEND SECTION 59-47-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THOSE PERSONS WHO MUST BE ADMITTED TO RECEIVE SERVICES FROM THE SCHOOL FOR THE DEAF AND BLIND, SO AS TO INCLUDE HARD OF HEARING AND VISUALLY IMPAIRED PERSONS

Rep. D. SMITH explained the Bill and moved to adjourn debate upon the Bill until Tuesday, May 10, which was adopted.

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H. 4793--DEBATE ADJOURNED

Rep. SHARPE moved to adjourn debate upon the following Bill until Thursday, July 7, which was adopted.

H. 4793 -- Rep. Sharpe: A BILL TO AMEND SECTION 1-30-65, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGENCIES AND BOARDS UNDER THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, SO AS TO ADD THE BOARD OF MASSAGE; AND TO AMEND CHAPTER 30, TITLE 40, RELATING TO MASSEURS AND MASSEUSES, SO AS TO CREATE THE SOUTH CAROLINA BOARD OF MASSAGE, TO PROVIDE FOR ITS MEMBERS, POWERS, AND DUTIES, TO PROVIDE LICENSING REQUIREMENTS, TO ESTABLISH FEES, AND TO PROVIDE GROUNDS FOR DISCIPLINARY ACTION AND PENALTIES.

H. 5021--DEBATE ADJOURNED

Rep. WALDROP moved to adjourn debate upon the following Bill until Thursday, May 5, which was adopted.

H. 5021 -- Rep. Shissias: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-3005 SO AS TO PROVIDE THAT UPON LICENSING, APPROVAL, OR REGISTRATION A CHILD DAY CARE FACILITY SHALL PROVIDE PROOF OF CONFORMING WITH LOCAL ZONING ORDINANCES; AND TO AMEND SECTION 20-7-3020, RELATING TO REQUIREMENTS FOR ISSUING A PROVISIONAL LICENSE, REGISTRATION OR APPROVAL, SO AS TO DELETE AN OBSOLETE REFERENCE.

H. 4196--AMENDED AND OBJECTIONS

The following Bill was taken up.

H. 4196 -- Reps. Harvin and Whipper: A BILL TO ENACT THE "SOUTH CAROLINA SALE OF CHECKS ACT", PROVIDE FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS ACT BY THE DEPARTMENT OF CONSUMER AFFAIRS, AND PROVIDE FOR RELATED MATTERS, INCLUDING A LICENSING PROCEDURE AND THE PROMULGATION OF REGULATIONS.

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The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\BBM\9100JM.94), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. This act is known and may be cited as the "South Carolina Sale of Checks Act".

SECTION 2. (1) The following financial institutions are exempt from the licensing requirements of this act when the sale of checks takes place in or through places of business located in this State which are authorized to accept deposits on behalf of the financial institutions:

(a) state and federally-chartered banks;

(b) state and federally-chartered savings and loan or building and loan associations;

(c) state and federally-chartered credit unions.

(2) Sales of checks by any of the foregoing through business locations in this State which are not authorized to accept deposits or through other agents, where the financial institution is domiciled outside of this State shall be subject to the provisions of this act.

(3) A financial institution domiciled within this State may designate agents to sell its checks at nonbanking outlets, and the place of business of such agents shall not be construed as a branch bank, office, or facility. The agent must be bonded and the financial institution made solely liable for the payment of the money orders upon proper presentation and demand. The responsibility of both the financial institution and its agent must be carefully defined in a written agreement setting forth the duties of both parties and providing for remuneration of the agent. Agents are required to report on sales and transmit funds therefrom not later than the end of the third business day following receipt of the funds. Arrangements for daily transmission of proceeds of sales is preferable, particularly if the volume of sales justifies. The financial institution's blanket bond coverage shall extend to cover agency transactions and transmission of the funds to the financial institution.

SECTION 3. (A) As used in this act, the term or terms:

(l) "Check" means any check, money order, or any other instrument for the payment or transmission of money, whether or not it is a negotiable instrument under the terms of Chapter 3 of Title 36, relating to commercial paper.

(2) "Licensee" means a corporation duly licensed pursuant to this act.

(3) "Sale" and "selling" means the passing of title from the seller or his agent to a holder or remitter for a price.

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(4) "Board" means the State Board of Financial Institutions.

(B) Other statutory definitions applying to this act are:

(1) "Delivery" as defined in item (14) of Section 36-1-201.

(2) "Issue" as defined in item (a) of subsection (1) of Section 36-3-102.

(3) "Signed" as defined in item (39) of Section 36-1-201.

SECTION 4. No person or corporation, other than a bank or trust company, the authorized agent of a licensee, or an incorporated telegraph company which has received money at any of its offices or agencies for immediate transmission by telegraph, shall engage in the business of selling or issuing checks without having first obtained a license under this act. This restriction applies to any nonresident person or corporation that engages in this State in the business of selling or issuing checks through a branch, subsidiary, affiliate, or agent in this State.

SECTION 5. In order to qualify for a license under this act, an applicant shall:

(1) satisfy the board that it is financially responsible and appears able to conduct the business of selling checks in an honest and efficient manner and with confidence and trust of the community; and

(2) comply with the bonding requirements, furnish the statements, and pay the fees prescribed in this act.

SECTION 6. (A) Each application for a license must be in writing and under oath to the board, in such form as the board prescribes, and shall include the following:

(1) the legal name and principal office address of the corporation applying for the license;

(2) the name, residence, and business address of each director or equivalent official and of each officer who will be involved in selling checks in this State;

(3) the date and place of incorporation;

(4) if the applicant has one or more branches, subsidiaries, affiliates, agents, or other locations at or through which the applicant proposes to engage in the business of selling or issuing checks within the State of South Carolina, the complete name of each and the address of each such location;

(5) the location where its initial registered office will be located in this State; and

(6) such other data, financial statements, and pertinent information as the board may require with respect to the applicant, its directors, trustees, officers, members, branches, subsidiaries, affiliates, or agents.

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(B) The application must be filed together with:

(1) An investigation and supervision fee established by regulation of the board, which is not refundable but which, if the license is granted, shall satisfy the fee requirement for the first license year or the remaining part thereof; and

(2) A corporate surety bond issued by a bonding company or insurance company authorized to do business in this State and approved by the board. The bond shall be in the principal sum of $100,000.00 and in an additional principal sum of $5,000.00 for each location, in excess of one, at or through which the applicant proposes to engage in this State in the business of selling or issuing checks, until the principal sum shall aggregate $250,000.00. The bond must be in a form satisfactory to the board and shall run to the State of South Carolina for the benefit of any check holders against the licensee or his agents. The condition of the bond must be that the licensee will pay any and all monies that may become due and owing the creditor of or claimant against the licensee arising out of the licensee's business of selling or issuing checks in this State, whether through its own act or the acts of an agent. The aggregate liability of the surety in no event shall exceed the principal sum of the bond. Claimants against the licensee may themselves bring an action directly on the bond. The liability arising under this paragraph is limited to the receipt, handling, transmission, and payment of money arising out of the licensee's business of selling and issuing checks in this State.

(C) In lieu of such corporate surety bond or bonds or of any portion of the principal thereof, the applicant may deposit with the board or a bank or trust company located in this State, as such applicant may designate and the board may approve, bonds, notes, debentures, or other obligations of the United States or any agency or instrumentality thereof or guaranteed by the United States or the State of South Carolina or of a municipality, county, school district, or an instrumentality of the State of South Carolina or guaranteed by the State to an aggregate amount, based upon the principal amount of market value, whichever is lower, of not less than the amount of the required corporate surety bond or portion thereof. The securities must be held to secure the same obligations as would the surety bond; but the depositor is entitled to receive all interest thereon and shall have the right, with the approval of the board, to substitute other securities for those deposited and is required to do so on written order of the board made for good cause shown. In the event of the failure or insolvency of such licensee, the securities, and proceeds therefrom, and the funds deposited pursuant to this section must be applied to the

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payments in full of claims arising out of transactions in this State for the sale and issuance of checks.

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