Journal of the House of Representatives
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995
Page Finder Index
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Printed Page 1410, Mar. 8
| Printed Page 1433, Mar. 9
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Printed Page 1420 . . . . . Wednesday, March 8,
1995
SECTION 34--ADOPTED
Debate was resumed on Section 34.
Section 34 was adopted.
SECTION 35--ADOPTED
Debate was resumed on Section 35.
Rep. LANFORD explained the section.
Section 35 was adopted.
PART IB
SECTION 1--AMENDED AND ADOPTED
Debate was resumed on Section 1.
Rep. H. BROWN proposed the following Amendment No. 271 (Doc Name L:\h-
wm\legis\amend\FF.030), which was adopted.
Amend the bill, as and if amended, Part IB, Section 1, Operation of State
Government, Page 375, Line 17, by striking /the soft drinks tax/
Amend further, Page 375, Line 21, by striking /agencies/
Amend further, Page 375, Line 31, by adding new lines to read:
/Aid to Subdivisions:
Public School Operating Costs-Homeowner Tax
Relief
Public School Retirement Supplement
Other School Purposes/
Renumber sections & amend totals/title to conform.
Rep. HARRELL explained the amendment.
The question then recurred to the adoption of the amendment.
Rep. SHEHEEN moved to divide the question.
POINT OF ORDER
Rep. FAIR raised the Point of Order that the motion to divide the question
was out of order as it came too late as the House was in the middle of a vote.
The SPEAKER sustained the Point of Order.
Printed Page 1421 . . . . . Wednesday, March 8,
1995
Rep. SHEHEEN demanded the yeas and nays, which were taken resulting as
follows:
Yeas 82; Nays 26
Those who voted in the affirmative are:
Allison Askins Bailey
Baxley Brown, H. Brown, T.
Cain Cato Clyburn
Cooper Cotty Cromer
Dantzler Davenport Delleney
Easterday Fair Fleming
Fulmer Gamble Hallman
Harrell Harris, J. Harrison
Harvin Harwell Herdklotz
Huff Hutson Jaskwhich
Jennings Keegan Kelley
Keyserling Kinon Kirsh
Klauber Knotts Koon
Lanford Law Limbaugh
Limehouse Littlejohn Marchbanks
Martin Mason McCraw
Meacham Neilson Phillips
Quinn Rhoad Rice
Richardson Riser Robinson
Sandifer Scott Seithel
Sharpe Shissias Simrill
Smith, D. Smith, R. Spearman
Stille Thomas Townsend
Tripp Trotter Vaughn
Walker Wells Whatley
Wilkins Witherspoon Wofford
Worley Wright Young, A.
Young, J.
Total--82
Those who voted in the negative are:
Anderson Breeland Brown, G.
Brown, J. Byrd Carnell
Cave Cobb-Hunter Govan
Hodges Howard Kennedy
Printed Page 1422 . . . . . Wednesday, March 8,
1995
Lloyd McAbee McMahand
McTeer Moody-Lawrence Neal
Rogers Sheheen Stuart
Tucker Whipper, L. White
Wilder Wilkes
Total--26
So, the amendment was then adopted.
Section 1 as amended was adopted.
Rep. H. BROWN moved that the House do now adjourn, which was adopted.
MOTION NOTED
Rep. H. BROWN moved to reconsider the vote whereby Part IA, Sections 3B, 5,
12, 31, 34, 35, 47, 54, 63, 69, Part IB, Sections 1, 8, 12, 14, 17C, 17D, 17E,
17F, 18A, 18B, 18K, 18M, 18N, 19, 19A, 26, 30, 49, 54, 56, 59, 68A, 69 and 72
were adopted and the motion was noted.
Further proceedings were interrupted by adjournment, the pending question being
consideration of the Bill.
ADJOURNMENT
At 7:40 P.M. the House in accordance with the motion of Rep. KEEGAN adjourned
in memory of Roger Bleaken of Myrtle Beach, to meet at 9:30 A.M. tomorrow.
* * *
Printed Page 1423 . . . . . Thursday, March 9,
1995
Thursday, March 9, 1995
(Statewide Session)
Indicates Matter Stricken
Indicates New Matter
The House assembled at 9:30 A.M.
Deliberations were opened with prayer by the Chaplain of the House of
Representatives, the Rev. Dr. Alton C. Clark as follows:
Our Father God, we come into Your presence in the full knowledge of our need of
Your help. Enable us, then, with the light of Your wisdom and the strength of
Your might. Help us to fill each swift hour with worthwhile accomplishments.
Make us strong enough to bear the fret of care, the sting of criticism, and the
drudgery of unapplauded toil. With Your help may we think clearly, act with
understanding, and play well our part. Cleanse our hearts with Your truths,
feed our minds with pure thoughts, and guide our feet into the way of
righteousness.
Thank You, Lord, for this privilege of prayer. Amen.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of
Allegiance to the Flag of the United States of America by the SPEAKER.
After corrections to the Journal of the proceedings of yesterday, the SPEAKER
ordered it confirmed.
MOTION ADOPTED
Rep. SEITHEL moved that when the House adjourns, it adjourn in memory of
Benny Lee Hunt of James Island, which was agreed to.
R. 2, S. 278--DEBATE ADJOURNED ON MESSAGE
MESSAGE FROM THE SENATE
The following was received.
Columbia, S.C., March 8, 1995
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it has overridden
the veto by the Governor on R. 2, S. 278 by a vote of 45 to 0.
(R2) S. 278 -- Senators Mescher and Rose: AN ACT TO AMEND ACT 1093 OF 1966,
RELATING TO THE GOOSE CREEK PARK AND PLAYGROUND COMMISSION, SO AS TO
CHANGE
THE
Printed Page 1424 . . . . . Thursday, March 9,
1995
NAME OF THE COMMISSION TO THE GOOSE CREEK RECREATION COMMISSION.
Very respectfully,
President
Rep. HASKINS moved to adjourn debate upon the veto message, which was adopted.
CONCURRENT RESOLUTION
The Senate sent to the House the following:
S. 633 -- Senator Peeler: A CONCURRENT RESOLUTION WISHING A VERY HAPPY ONE
HUNDREDTH BIRTHDAY TO MRS. SALLY GRACE PONDER ALLEN OF CHEROKEE COUNTY.
The Concurrent Resolution was agreed to and ordered returned to the Senate
with concurrence.
INTRODUCTION OF BILLS
The following Bills and Joint Resolution were introduced, read the first
time, and referred to appropriate committees:
H. 3772 -- Reps. Scott, Williams, Cave, Kennedy, Beatty, Lloyd, Spearman, White,
Cobb-Hunter, Jennings, Knotts, Clyburn, Keegan, Hallman, Inabinett, Mason,
Whatley, Fulmer, Breeland, Keyserling, Wofford, Kelley, Stoddard, Allison,
Seithel and Wilkes: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7,
ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO A LOTTERY,
SO AS TO ALLOW LOTTERIES TO BE CONDUCTED ONLY BY THE STATE AND TO PROVIDE FOR
THE USE OF THE REVENUES DERIVED FROM THE LOTTERIES.
Rep. SCOTT asked unanimous consent to have the Joint Resolution placed on the
Calendar without reference.
Rep. RICHARDSON objected.
Referred to Committee on Judiciary.
H. 3773 -- Rep. Rogers: A BILL TO AMEND SECTION 17-25-45, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO A LIFE SENTENCE FOR A PERSON CONVICTED THREE TIMES
FOR
Printed Page 1425 . . . . . Thursday, March 9,
1995
CERTAIN CRIMES AND A SOLICITOR'S DISCRETION TO INVOKE THIS SENTENCE, SO AS TO
DELETE THIS PROVISION, TO PROVIDE DEFINITIONS, TO PROVIDE THE CONDITIONS UPON
WHICH A PERSON MAY BE IMPRISONED FOR LIFE, TO PROVIDE THAT A PERSON SENTENCED
PURSUANT TO THIS PROVISION MUST NOT BE CONSIDERED FOR OR GRANTED EARLY
RELEASE
TO ELIMINATE PRISON OVERCROWDING, TO PROVIDE THAT A PRESIDING JUDGE, LAW
ENFORCEMENT AGENCY, THE BOARD OF PROBATION, PAROLE, AND PARDON SERVICES, OR
A
STATE OR LOCAL CORRECTION FACILITY IN ITS DISCRETION MAY PROVIDE CERTAIN
OFFENDERS NOTICE OF THE SENTENCE THAT MUST BE IMPOSED UPON CONVICTION OF A
MOST
SERIOUS OFFENSE, TO PROVIDE THAT THE ADEQUACY OF THE NOTICE IS NOT SUBJECT TO
JUDICIAL REVIEW AND DOES NOT CREATE A LIABILITY UPON THE STATE OR ITS
SUBDIVISIONS, AND TO PROVIDE THAT THIS PROVISION DOES NOT APPLY IF A MANDATORY
MINIMUM SENTENCE UNDER ANOTHER PROVISION WOULD EXCEED A SENTENCE UNDER
THIS
PROVISION.
Referred to Committee on Judiciary.
H. 3774 -- Rep. Rogers: A BILL TO AMEND SECTION 8-11-620, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO ANNUAL LEAVE AND A LUMP-SUM PAYMENT ALLOWED TO
A
STATE EMPLOYEE UPON TERMINATION OF EMPLOYMENT, DEATH, OR RETIREMENT, SO AS
TO
AUTHORIZE AN EMPLOYEE, UPON TERMINATION TO RECEIVE A LUMP-SUM PAYMENT FOR
UNUSED
LEAVE, NOT TO EXCEED FORTY-FIVE DAYS WITHOUT REGARD TO THE EARNED LEAVE
TAKEN
DURING THE CALENDAR YEAR IN WHICH THE EMPLOYEE TERMINATES.
Referred to Committee on Ways and Means.
H. 3775 -- Reps. H. Brown, Wofford, Williams, Law and Dantzler: A BILL TO AMEND
THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-7-1275 SO AS TO
ALLOW CREDITS AGAINST THE CORPORATE INCOME TAX, CORPORATE LICENSE TAX, SALES
AND
USE TAX, LOCAL OPTION SALES AND USE TAX, AND SIMILAR TAXES FOR A TAXPAYER
CONSTRUCTING OR OPERATING A QUALIFIED RECYCLING FACILITY AND TO DEFINE
"QUALIFIED RECYCLING FACILITY" AND OTHER
Printed Page 1426 . . . . . Thursday, March 9,
1995
TERMS ASSOCIATED WITH THIS CREDIT; TO AMEND SECTION 4-29-67, AS AMENDED,
RELATING TO THE FEE IN LIEU OF TAXES, SO AS TO PROVIDE SPECIAL PROVISIONS FOR A
FEE IN LIEU AGREEMENT FOR A PROJECT THAT IS A QUALIFIED RECYCLING FACILITY; TO
AMEND SECTION 12-7-1200, RELATING TO THE ACCOUNTING BASIS OF INCOME TAX
RETURNS,
SO AS TO AUTHORIZE SEPARATE ACCOUNTING FOR THE BUSINESS ACTIVITIES OF A
TAXPAYER
BUILDING OR OPERATING A QUALIFIED RECYCLING FACILITY WITH THE APPROVAL OF THE
DEPARTMENT OF REVENUE AND TAXATION AFTER THE CERTIFICATION OF THE ADVISORY
COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT; AND TO AMEND SECTION
12-36-2120,
AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT PROPERTY AND
FUELS
USED BY OR FOR A QUALIFIED RECYCLING FACILITY.
On motion of Rep. H. BROWN, with unanimous consent, the Bill was ordered
placed on the Calendar without reference.
H. 3776 -- Reps. Neilson, J. Brown, Inabinett, Herdklotz, Littlejohn, Hines,
Beatty, Baxley, Sandifer, S. Whipper, Robinson, Lloyd, Breeland, Witherspoon,
Riser, Stille, Stuart, Rice, Law, Vaughn, Richardson and Mason: A BILL TO AMEND
SECTION 62-3-203, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
THE APPOINTMENT OF PERSONS AS PERSONAL REPRESENTATIVES OF AN ESTATE, SO AS TO
PROVIDE THAT A PROBATE JUDGE WITH CERTAIN EXCEPTIONS SHALL NOT SERVE AS A
PERSONAL REPRESENTATIVE; AND TO AMEND SECTION 62-5-410, RELATING TO WHO MAY
BE
APPOINTED AS A CONSERVATOR OF THE ESTATE OF A PROTECTED PERSON, SO AS TO
PROVIDE
THAT A PROBATE JUDGE OR AN EMPLOYEE OF THE PROBATE COURT WITH CERTAIN
EXCEPTIONS
SHALL NOT SERVE AS A CONSERVATOR.
Referred to Committee on Judiciary.
H. 3777 -- Reps. Neilson, Inabinett, Robinson, Littlejohn, S. Whipper, Sandifer,
Rice, Allison, Stuart, Stille, Richardson and Vaughn: A BILL TO AMEND THE CODE
OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10 TO TITLE 8 SO AS TO
AUTHORIZE
Printed Page 1427 . . . . . Thursday, March 9,
1995
CERTAIN DRUG AND ALCOHOL TESTING OF PROSPECTIVE STATE EMPLOYEES.
Referred to Committee on Labor, Commerce and Industry.
H. 3778 -- Reps. Neilson, Inabinett, Robinson, Littlejohn, Richardson, Stuart,
Vaughn, Rice, Allison and Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING CHAPTER 14 TO TITLE 8 SO AS TO ESTABLISH UNIFORM
STANDARDS FOR PRE-EMPLOYMENT AND EMPLOYMENT DRUG TESTING OF STATE
EMPLOYEES,
REQUIRE THIS DRUG TESTING UNDER CERTAIN CONDITIONS, AND PROVIDE PROCEDURES
FOR
ITS CONFIDENTIALITY, RELIABILITY, AND FAIRNESS.
Referred to Committee on Labor, Commerce and Industry.
H. 3779 -- Reps. Elliott, Knotts, Littlejohn, Cato, Simrill, Cain, Mason, Govan,
Stuart, Delleney, Neilson, Stille, Tucker, Jennings, Hines, R. Smith, T. Brown,
Wright and Riser: A BILL TO AMEND SECTION 40-57-155, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO CONTINUING EDUCATION FOR REAL ESTATE
BROKERS AND SALES AGENTS, SO AS TO APPLY THE REQUIREMENTS TO REAL ESTATE
PROPERTY MANAGERS, AND PROVIDE THAT, FOR PROPERTY MANAGERS, THE EIGHT HOURS
MUST
INCLUDE A MINIMUM OF TWO HOURS OF INSTRUCTION ON FEDERAL AND STATE LAWS
AFFECTING PROPERTY MANAGERS AND THAT THE REMAINING HOURS MUST INCLUDE
PROPERTY
MANAGEMENT RELATED COURSES.
Referred to Committee on Labor, Commerce and Industry.
H. 3780 -- Rep. Keyserling: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA,
1976, BY ADDING ARTICLE 8 TO CHAPTER 3, TITLE 47, SO AS TO PROVIDE FOR THE
STERILIZATION OF DOGS AND CATS ACQUIRED FROM AN ANIMAL SHELTER, AN ANIMAL
CONTROL AGENCY, A HUMANE SOCIETY, OR AN ANIMAL REFUGE.
Referred to Committee on Agriculture, Natural Resources and Environmental
Affairs.
H. 3781 -- Rep. Felder: A BILL TO AMEND SECTION 38-73-455, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTOMOBILE INSURANCE RATES, SO AS TO
DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE,
Printed Page 1428 . . . . . Thursday, March 9,
1995
AMONG OTHER THINGS, THAT AN AUTOMOBILE INSURER SHALL FILE AND OFFER FOR
AUTOMOBILE INSURANCE A BASE RATE AS DEFINED IN SECTION 38-73-457 WHICH IS
SUBJECT TO ALL SURCHARGES OR DISCOUNTS, IF ANY, APPLICABLE UNDER ANY APPROVED
MERIT RATING PLAN, CREDIT OR DISCOUNT PLAN PROMULGATED BY THE DEPARTMENT OF
INSURANCE OR APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS
DESIGNEE AND SUBJECT TO ALLOCATION AND RECOUPMENT SURCHARGES PROVIDED FOR
IN
CHAPTER 77, TITLE 38; TO AMEND SECTION 38-73-457, AS AMENDED, RELATING TO FILING
INFORMATION ON BASE RATES FOR AUTOMOBILE INSURANCE AND THE EFFECTIVE DATE
OF THE
RATES, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE, AMONG OTHER THINGS,
THAT, EFFECTIVE OCTOBER 1, 1995, THE DIRECTOR OR HIS DESIGNEE SHALL DISALLOW THE
FURTHER USE OF THE OBJECTIVE STANDARDS RATE PREVIOUSLY FILED IN ACCORDANCE
WITH
THIS SECTION; TO AMEND SECTION 38-73-735, AS AMENDED, RELATING TO THE PLAN FOR
CREDITS AND DISCOUNTS FOR AUTOMOBILE INSUREDS, SO AS TO DELETE CERTAIN
LANGUAGE,
AND PROVIDE THAT IF AN INSURANCE CREDIT OR DISCOUNT PLAN, OTHER THAN THAT
PROMULGATED BY THE DIRECTOR OR HIS DESIGNEE, IS GIVEN TO AN INSURED PURSUANT
TO
THIS SECTION, THE POLICY MAY BE CEDED TO THE REINSURANCE FACILITY; TO AMEND
SECTION 38-73-760, AS AMENDED, RELATING TO THE STATE RATING AND STATISTICAL
DIVISION AND UNIFORM STATISTICAL PLANS, SO AS TO PROVIDE THAT THE SAFE DRIVER
DISCOUNT SHALL NOT BE INCLUDED IN THE RATE OR PREMIUM CALCULATION FOR
CERTAIN
DRIVERS AND APPLICANTS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-73-780 SO AS
TO REQUIRE THE STATE RATING AND STATISTICAL DIVISION TO DEVELOP AND FILE A LOSS
COMPONENT FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE COVERAGES BASED ON
THE
TOTAL EXPERIENCE OF ALL INSURERS IN THIS STATE INCLUDING RISKS CEDED TO THE
REINSURANCE FACILITY; TO AMEND SECTION 38-73-1420, AS AMENDED, RELATING TO THE
REQUIREMENT THAT THE BOARD OF GOVERNORS OF THE REINSURANCE FACILITY FILE AN
EXPENSE COMPONENT AND THE USE OF THE COMPONENT AFTER APPROVAL, SO AS TO
DELETE
CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE,
Printed Page 1429 . . . . . Thursday, March 9,
1995
AMONG OTHER THINGS, THAT THE BOARD SHALL FILE AN EXPENSE COMPONENT AS
DEFINED
UNDER SECTION 38-73-1400(2) FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE OR
PREMIUM CHARGES WHICH MUST ACCURATELY REFLECT THE ACTUAL EXPENSES OF THE
REINSURANCE FACILITY WITHOUT PROFIT AND FOR USE WITH THE PURE LOSS COMPONENT
FOR
PRIVATE PASSENGER AUTOMOBILE INSURANCE COVERAGES DEVELOPED UNDER SECTION
38-73-780; TO AMEND SECTION 38-73-1425, RELATING TO THE FINAL RATE OR PREMIUM
CHARGE FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE RISK CEDED TO THE
REINSURANCE
FACILITY, SO AS TO DELETE CERTAIN LANGUAGE, AND PROVIDE, AMONG OTHER THINGS,
THAT THE BASE RATE FOR ANY PRIVATE PASSENGER AUTOMOBILE INSURANCE RISK CEDED
TO
THE FACILITY BY AN INSURER SHALL NOT BE LESS THAN THE BASE RATE WHICH WAS IN
EFFECT AND IN USE ON NOVEMBER 1, 1994 BY THOSE AUTOMOBILE INSURERS CONTRACTED
PURSUANT TO SECTION 38-77-590(a) FOR RISK WRITTEN BY THEM THROUGH PRODUCERS
DESIGNATED PURSUANT TO THAT SAME SECTION; TO AMEND SECTION 38-77-10, AS
AMENDED,
RELATING TO THE DECLARATION OF PURPOSE FOR THE STATE'S AUTOMOBILE INSURANCE
LAW,
SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE REFERENCE TO THE
RISK AND TERRITORIAL CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF
INSURANCE OR THE REINSURANCE FACILITY RATE PLANS; TO AMEND SECTION 38-77-30, AS
AMENDED, RELATING TO DEFINITIONS UNDER THE AUTOMOBILE INSURANCE LAW, SO AS
TO
ADD DEFINITIONS FOR "CEDE" OR "CESSION", "CLEAN RISK
SUBSIDY", "STATE UNIFORM RATE", AND "FACILITY UNIFORM
RATE"; TO AMEND SECTION 38-77-110, AS AMENDED, RELATING TO THE REQUIREMENT
UPON AUTOMOBILE INSURERS TO INSURE AND EXCEPTIONS, SO AS TO DELETE CERTAIN
CONDITIONAL LANGUAGE REGARDING INSURABLE RISK, AND PROVIDE THAT EVERY
AUTOMOBILE
INSURANCE RISK CONSTITUTES AN INSURABLE RISK; TO AMEND SECTION 38-77-140,
RELATING TO AUTOMOBILE INSURANCE AND BODILY INJURY AND PROPERTY DAMAGE
LIMITS,
SO AS TO PROVIDE FOR FIFTEEN THOUSAND DOLLARS, RATHER THAN FIVE THOUSAND
DOLLARS, BECAUSE OF INJURY TO OR DESTRUCTION OF
Printed Page 1430 . . . . . Thursday, March 9,
1995
PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND SECTION 38-77-280, AS AMENDED,
RELATING TO COLLISION COVERAGE AND COMPREHENSIVE COVERAGE FOR AUTOMOBILE
INSURANCE PURPOSES, SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND
PROVIDE, AMONG OTHER THINGS, THAT AUTOMOBILE INSURERS MAY REFUSE TO WRITE
PHYSICAL DAMAGE INSURANCE COVERAGE TO AN APPLICANT OR EXISTING POLICYHOLDER,
ON
RENEWAL, WHO HAS COLLECTED BENEFITS PROVIDED UNDER AUTOMOBILE INSURANCE
PHYSICAL
DAMAGE COVERAGE DURING THE THIRTY-SIX MONTHS IMMEDIATELY PRECEDING THE
EFFECTIVE
DATE OF COVERAGE FOR TWO OR MORE TOTAL FIRE LOSSES OR TWO OR MORE TOTAL
THEFT
LOSSES; TO AMEND THE TITLE OF ARTICLE 5 OF CHAPTER 77, TITLE 38 FROM
"REINSURANCE FACILITY AND DESIGNATED PRODUCERS" TO "REINSURANCE
FACILITY, SERVICING CARRIERS, AND PRODUCERS"; TO AMEND SECTION 38-77-530,
AS AMENDED, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO
AS
TO PROVIDE, AMONG OTHER THINGS, THAT THE PLAN SHALL PROVIDE THAT EVERY
MEMBER,
UPON ANY ASSESSMENT RELATED TO PRIVATE PASSENGER AUTOMOBILE RISKS, SHALL
COLLECT
THAT ASSESSMENT FOR PAYMENT TO THE REINSURANCE FACILITY BY WAY OF A
SURCHARGE ON
AUTOMOBILE INSURANCE POLICIES ISSUED BY THE MEMBER AND THAT SUCH SURCHARGES
SHALL BE A PERCENTAGE OF PREMIUM ADOPTED BY THE GOVERNING BOARD OF THE
FACILITY
AND APPROVED BY THE DIRECTOR OR HIS DESIGNEE; TO AMEND THE 1976 CODE BY ADDING
SECTION 38-77-535 SO AS TO PROVIDE THAT FOR CERTAIN PERIODS, CERTAIN PERCENTAGES
OF THE CLEAN RISK ALLOCATION MUST BE ASSESSED AND COLLECTED BY MEMBER
INSURERS
OF THE REINSURANCE FACILITY; TO AMEND THE TITLE OF SECTION 38-77-540 FROM
"DUTIES OF CEDING INSURER" TO "FACILITY RATE PLANS"; TO
AMEND SECTION 38-77-540, RELATING TO THE DUTIES OF A CEDING INSURER UNDER THE
AUTOMOBILE INSURANCE LAW, SO AS TO DELETE THE CURRENT PROVISIONS OF THE
SECTION,
AND PROVIDE, AMONG OTHER THINGS, THAT THE REINSURANCE FACILITY SHALL ACCEPT
CESSIONS ON A POLICY OF PRIVATE PASSENGER AUTOMOBILE INSURANCE AT THE OPTION
OF
AN INSURER BUT ONLY AT
Printed Page 1431 . . . . . Thursday, March 9,
1995
THE RATE OR PREMIUM CHARGE AS DETERMINED UNDER THE RATING PLANS ESTABLISHED
BY
THE GOVERNING BOARD AND APPROVED BY THE DIRECTOR OR HIS DESIGNEE, SUBJECT,
HOWEVER, TO SECTION 38-77-950 REGARDING REASONABLE UTILIZATION OF THE FACILITY
BY MEMBER COMPANIES; TO AMEND SECTION 38-77-580, AS AMENDED, RELATING TO THE
GOVERNING BOARD OF THE REINSURANCE FACILITY, SO AS TO CHANGE THE METHOD OF
APPOINTING CERTAIN MEMBERS TO THE BOARD; TO AMEND SECTION 38-77-585, RELATING
TO
ADDITIONAL BOARD MEMBERS OF THE REINSURANCE FACILITY, SO AS TO DELETE
REFERENCES
TO DESIGNATED INSURERS AND, INSTEAD, REFER TO CONTRACTED INSURERS; TO AMEND
THE
TITLE OF SECTION 38-77-590 FROM "DESIGNATED PRODUCERS" TO
"SERVICING CARRIERS AND PRODUCERS"; TO AMEND SECTION 38-77-590, AS
AMENDED, RELATING TO DESIGNATED PRODUCERS UNDER REINSURANCE FACILITY
PROVISIONS,
SO AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS, AND PROVIDE, AMONG OTHER
THINGS, THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE,
AFTER
CONSULTATION WITH THE GOVERNING BOARD OF THE REINSURANCE FACILITY, SHALL
DIRECT
THE BOARD TO CONTRACT WITH ONE OR MORE INSURERS MEETING ELIGIBILITY
REQUIREMENTS
PROMULGATED BY THE BOARD TO ACT AS SERVICING CARRIERS FOR THE WRITING OF
AUTOMOBILE INSURANCE THROUGH PRODUCERS ASSIGNED TO THE SERVICING CARRIER BY
THE
BOARD; TO AMEND SECTION 38-77-600, AS AMENDED, RELATING TO THE REINSURANCE
FACILITY RECOUPMENT CHARGE, SO AS TO DELETE REFERENCES TO AN OBJECTIVE
STANDARDS
RATE, DELETE OTHER LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT EFFECTIVE
FOR
THE RECOUPMENT PERIOD BEGINNING JULY 1, 1996, THROUGH JUNE 30, 1997, .55
MULTIPLIED BY THE RECOUPMENT IS TO BE BORNE BY RISKS HAVING ZERO SURCHARGE
POINTS UNDER THE UNIFORM MERIT PLAN PROMULGATED BY THE DIRECTOR OF THE
DEPARTMENT OF INSURANCE OR HIS DESIGNEE; TO AMEND SECTION 38-77-620, AS
AMENDED,
RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE INCLUSION OF RECOUPMENT
CHARGES
IN RATES, SO AS TO DELETE REFERENCES TO AN OBJECTIVE STANDARDS RATE; TO AMEND
SECTION 38-77-910, AS AMENDED, RELATING TO THE
Printed Page 1432 . . . . . Thursday, March 9,
1995
AUTOMOBILE INSURANCE LAW AND UNLAWFUL DISTINCTIONS BETWEEN POLICYHOLDERS
OR
APPLICANTS, SO AS TO PROVIDE THAT IT IS AN ACT OF UNLAWFUL DISCRIMINATION FOR
AN
AUTOMOBILE INSURER TO MAKE ANY DISTINCTION BETWEEN AUTOMOBILE INSURANCE
POLICYHOLDERS OR APPLICANTS FOR AUTOMOBILE INSURANCE WITH RESPECT TO
COVERAGE,
RATES, CLAIMS, OR OTHER SERVICES EXCEPT AS THE DISTINCTIONS ARE PROVIDED FOR IN
THE RATING PLANS FOR THE CLASSIFICATION OF RISKS AND TERRITORIES PROMULGATED
BY
THE DEPARTMENT OF INSURANCE AND THE REINSURANCE FACILITY RATE PLANS; TO
AMEND
SECTION 38-77-940, RELATING TO THE AUTOMOBILE INSURANCE LAW, AVOIDING CERTAIN
CLASSES OR TYPES OF RISKS, EXCEPTIONS, AND CANCELING AN AGENT'S REPRESENTATION,
SO AS TO DELETE THE LANGUAGE PROHIBITING AN AUTOMOBILE INSURER FROM
PROVIDING TO
INSURANCE AGENTS, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, ANY LISTING OF
CLASSES OR TYPES OF AUTOMOBILE INSURANCE RISKS WHICH THE INSURER CONSIDERS
NECESSARY TO REINSURE IN THE REINSURANCE FACILITY; TO AMEND SECTION 38-77-950,
AS AMENDED, RELATING TO UNREASONABLE OR EXCESSIVE USE OF THE REINSURANCE
FACILITY BY AN INSURER AND NOTICE TO A POLICYHOLDER THAT HIS AUTOMOBILE
INSURANCE POLICY IS IN THE FACILITY, SO AS TO DELETE CERTAIN LANGUAGE, AND
PROVIDE TOTAL DIRECT CEDEABLE WRITTEN PREMIUMS AS USED IN THIS SECTION DO NOT
INCLUDE PREMIUMS ATTRIBUTABLE TO RISKS CEDED TO THE REINSURANCE FACILITY
HAVING
ONE OR MORE MERIT RATING PLAN POINTS; TO AMEND THE 1976 CODE BY ADDING SECTION
56-10-275 SO AS TO PROVIDE THAT ANY PERSON WHO OPERATES OR ALLOWS AN UNINSURED
MOTOR VEHICLE TO BE OPERATED SHALL SUFFER THE IMMEDIATE IMPOUNDMENT OF THE
VEHICLE UNTIL HE POSTS LIABILITY INSURANCE IN THE AMOUNT REQUIRED BY CHAPTER
77
OF TITLE 38 AND PAYS ANY STORAGE AND IMPOUNDMENT FEE, TOGETHER WITH ANY
OTHER
FINES OR FEES IMPOSED FOR THE OPERATION OF AN UNINSURED MOTOR VEHICLE; TO
REPEAL
SECTIONS 38-73-1410, RELATING TO AUTOMOBILE INSURANCE AND THE PROVISION THAT THE
REFILING OF FINAL RATES OR PREMIUM CHARGES PREVIOUSLY APPROVED IS NOT
Printed Page 1433 . . . . . Thursday, March 9,
1995
REQUIRED, AND 38-77-595, RELATING TO THE REINSURANCE FACILITY AND THE
CONDITIONS FOR THE DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT; AND TO
REPEAL, EFFECTIVE JULY 1, 2000, SECTIONS 38-77-600, RELATING TO THE REINSURANCE
FACILITY RECOUPMENT CHARGE, 38-77-605, RELATING TO THE REQUIREMENT THAT THE
REINSURANCE FACILITY RECOUPMENT CHARGE BE DISPLAYED ON EVERY PREMIUM NOTICE
OR
BILL FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE, 38-77-610, RELATING TO THE
AUTOMOBILE INSURANCE LAW AND THE FILING OF RECOUPMENT CHARGES, 38-77-620,
RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE INCLUSION OF RECOUPMENT
CHARGES
IN CERTAIN RATES, AND 38-77-625, RELATING TO THE PROVISION THAT IF AN INSURED IS
INVOLVED IN A MOTOR VEHICLE ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS
REINSURANCE FACILITY RECOUPMENT CHARGE MAY NOT BE INCREASED BY HIS INSURER
BECAUSE OF THIS OCCURRENCE.
Referred to Committee on Labor, Commerce and Industry.
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