South Carolina General Assembly
112th Session, 1997-1998
Journal of the House of Representatives

TUESDAY, MAY 20, 1997

Tuesday, May 20, 1997
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 12:00 Noon.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

O God, Who offers graciously and constantly to be our ever present Companion and Helper, we thank You for this day. In Your wisdom and goodness, teach us to use our past mistakes as guideposts, not as hitching posts. Keep us so busy with the tasks given us as to have no time to worry in the day or to lie awake at night. Cause us to know at all times that our noblest ambition is not making a living, but the making of a life; that the person who brings sunshine to others cannot keep it from himself.

Lord, in Your mercy, hear our 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 Friday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. KELLEY moved that when the House adjourns, it adjourn in memory of George Bishop III of Horry County, which was agreed to.

REPORT RECEIVED
COMMITTEE TO SCREEN CANDIDATES FOR
BOARDS OF TRUSTEES OF STATE
COLLEGES AND UNIVERSITIES
Findings of Fact

The Committee to Screen Candidates for Boards of Trustees of State Colleges and Universities finds the following candidates for Boards of Trustees qualified. Background reports from the State Law Enforcement Division show no felony charges against any of the candidates.
Coastal Carolina University (1 seat)

Ms. Vanessa Greene (Georgetown)

Ms. Robert Lee Rabon (Aynor)

Mr. Delan Stevens (Conway)

Rep. EUGENE C. STODDARD, Chairman

REGULATION WITHDRAWN AND RESUBMITTED

The following was received.

Document No. 2128
Promulgated By Department of Education
Statutory Authority: 1976 Code Section 59-5-60
43-236. Area Vocational Centers
Received By Speaker January 13, 1997
Referred to House Committee on Education and Public Works
120 Day Review Period Expiration Date May 13, 1997
Revised July 27, 1997
(Subject to Sine Die Revision)
Senate Education Committee requested withdrawal March 6, 1997
Withdrawn and Resubmitted May 20, 1997

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 15, 1997
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has appointed Senators Holland, Saleeby and Courtney of the Committee of Conference on the part of the Senate on S. 178:
S. 178 -- Senator Courtney: A JOINT RESOLUTION AUTHORIZING THE STATE BUDGET AND CONTROL BOARD TO TRANSFER OWNERSHIP OF A SURPLUS NATIONAL GUARD ARMORY TO THE TOWN OF PACOLET MILLS.
Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 15, 1997
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. 133:
S. 133 -- Senator Hayes: A BILL TO AMEND SECTION 44-20-450, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE INVOLUNTARY ADMISSION OF A PERSON TO THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS, SO AS TO PROVIDE THAT A SOLICITOR OR AN ASSISTANT SOLICITOR MAY INITIATE A PROCEEDING FOR INVOLUNTARY ADMISSION OF A PERSON IN PROBATE OR FAMILY COURT AND TO AMEND SECTION 44-23-430, RELATING TO A HEARING ON FITNESS TO STAND TRIAL, SO AS TO CHANGE A REFERENCE IN THE SECTION PERTAINING TO JUDICIAL ADMISSION PROCEEDINGS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 15, 1997
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. 577:
S. 577 -- Senators Fair, Holland, Bryan, Moore, McConnell, Glover and Courtney: A JOINT RESOLUTION TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO ESTABLISH A PILOT CHILD PROTECTIVE SERVICES SYSTEM IN ONE REGION OF THE STATE WHICH ALLOWS THE DEPARTMENT TO DIVERT CHILD ABUSE AND NEGLECT CASES TO AN ASSESSMENT TRACK RATHER THAN FOLLOWING NORMAL PROTOCOL WHEN CERTAIN MORE SERIOUS FORMS OF ALLEGED ABUSE OR NEGLECT ARE NOT PRESENT; TO ESTABLISH THE PROCEDURES UNDER WHICH THE DEPARTMENT SHALL OPERATE THIS PILOT; TO REQUIRE THE DEPARTMENT TO REPORT TO THE HOUSE AND SENATE JUDICIARY COMMITTEES ON THE EFFECTIVENESS OF THE PILOT; AND TO PROVIDE FOR THE TERMINATION OF THE PILOT.
and has ordered the Joint Resolution Enrolled for Ratification.

Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 15, 1997
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. 267:
S. 267 -- Senators Giese and Lander: A BILL TO AMEND SECTION 14-7-1390, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PENALTY FOR NONATTENDANCE AS A JUROR IN ANY COURT OF THIS STATE, SO AS TO INCREASE THE PENALTY; TO AMEND SECTION 22-2-130, RELATING TO THE PENALTY FOR FAILURE OF A DULY SUMMONED JUROR IN MAGISTRATE'S COURT TO APPEAR, SO AS TO INCREASE THE PENALTY FOR VIOLATION; AND TO AMEND SECTION 22-3-950, RELATING TO A MAGISTRATE'S POWER TO PUNISH FOR CONTEMPT, SO AS TO INCREASE THE PENALTY FOR CONTEMPT.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

REPORT OF STANDING COMMITTEE

Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report, with amendments, on:

H. 3424 -- Reps. Breeland, Simrill, Felder, F. Smith, Spearman, Limehouse, Woodrum, Seithel, Sharpe, Cobb-Hunter, T. Brown, Young, Whipper, Law, Allison, Littlejohn, Webb, Altman, Howard, Bailey, Harrell, Scott, Mullen, Neal, Whatley, Lee, Gourdine, Byrd, Trotter, Mack, M. Hines, Kelley, Parks, McMahand, Stuart, Rodgers, Cave, Campsen, Phillips, Battle, Jordan, Lanford, Davenport, J. Brown, Cooper, Moody-Lawrence and Edge: A BILL TO AMEND SECTION 59-39-160, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENTS FOR PARTICIPATING IN INTERSCHOLASTIC ACTIVITIES BY STUDENTS IN GRADES NINE THROUGH TWELVE, SO AS TO REQUIRE STUDENTS TO HAVE AN OVERALL "C" AVERAGE IN THE PRECEDING SEMESTER AND HAVE PASSED AT LEAST FOUR ACADEMIC COURSES INCLUDING EACH UNIT TAKEN WHICH IS REQUIRED FOR GRADUATION, AND TO PROVIDE THAT EACH SCHOOL DISTRICT SHALL PROVIDE ACADEMIC ASSISTANCE FOR THOSE STUDENTS WHO DESIRE TO PARTICIPATE BUT WHO HAVE NOT MAINTAINED A "C" AVERAGE IN THE PRECEDING SEMESTER.

Ordered for consideration tomorrow.

HOUSE RESOLUTION

The following was introduced:

H. 4161 -- Reps. Littlejohn, Allison, Davenport, Hawkins, Lanford, Lee, D. Smith, Vaughn, Walker and Wilder: A HOUSE RESOLUTION TO RECOGNIZE AND COMMEND THE SOUTH CAROLINA SCHOOL FOR THE DEAF AND THE BLIND GIRLS 1600 METER RELAY TEAM WHO RECENTLY COMPETED IN THE SOUTH CAROLINA STATE CHAMPIONSHIPS.

The Resolution was adopted.

HOUSE RESOLUTION

The following was introduced:

H. 4162 -- Reps. R. Smith, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Byrd, Campsen, Canty, Carnell, Cato, Cave, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Edge, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, Harrison, Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Hodges, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, Kinon, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limbaugh, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Maddox, Martin, Mason, McCraw, McKay, McLeod, McMahand, McMaster, Meacham, Miller, Moody-Lawrence, Mullen, Neal, Neilson, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, Spearman, Stille, Stoddard, Stuart, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum, Young and Young-Brickell: A HOUSE RESOLUTION SALUTING THE HONORABLE STROM THURMOND, THE LONGEST-SERVING MEMBER OF THE UNITED STATES SENATE, AND WELCOMING HIM TO THE HISTORIC TWO HUNDRED SIXTIETH ANNIVERSARY OF THE SETTLEMENT OF THE TOWN OF BEECH ISLAND IN AIKEN COUNTY ON BEECH ISLAND HERITAGE DAY, SATURDAY, MAY 24, 1997.

Whereas, the Honorable Strom Thurmond has this spring attained the record for longevity of service in the United States Senate and is now in the history books as the longest-serving senator in American history; and

Whereas, the citizens of South Carolina are very proud of this record and are happy for our esteemed senator that he has achieved this status; and

Whereas, Senator Thurmond is participating in Beech Island Heritage Day on Saturday, May 24, 1997 and is an honored guest at this celebration; and

Whereas, Beech Island Heritage Day commemorates the two hundred sixtieth anniversary of the Town of Beech Island, originally named New Windsor and established by a group of Swiss settlers in 1737; and

Whereas, this anniversary is a historic occasion and, combined with Senator Thurmond's presence and participation, is a great day in the history of the Palmetto State. Now, therefore,

Be it resolved by the House of Representatives:

That the House of Representatives of the State of South Carolina, by this resolution, salutes the Honorable Strom Thurmond, the longest-serving member of the United States Senate, and welcomes him to the historic two hundred sixtieth anniversary of the Town of Beech Island in Aiken County on Beech Island Heritage Day, Saturday, May 24, 1997.

Be it further resolved that a copy of this resolution be forwarded to Senator Thurmond and the Beech Island Heritage Day Committee.

The Resolution was adopted.

INTRODUCTION OF BILLS

The following Bills and Joint Resolutions were introduced, read the first time, and referred to appropriate committees:

H. 4163 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO THE DIVISION OF MOTOR VEHICLES, ADMINISTRATION AND ENFORCEMENT OF THE FINANCIAL RESPONSIBILITY ACT AND LAWS REGARDING MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, DESIGNATED AS REGULATION DOCUMENT NUMBER 2182, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4164 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO THE DIVISION OF MOTOR VEHICLES, SPECIAL LICENSE PLATES, PROTECTIVE HELMETS, FACE SHIELDS AND WINDSCREEN, AND REQUIRED STOPS AT RAILROAD CROSSINGS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2183, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4165 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO HIGHWAY PATROL, WRECKER SERVICES, DESIGNATED AS REGULATION DOCUMENT NUMBER 2184, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

H. 4166 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO STATE TRANSPORT POLICE, DESIGNATED AS REGULATION DOCUMENT NUMBER 2185, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Without reference.

S. 409 -- Senators Drummond, Bryan, Ford, Hayes, Holland, Hutto, Jackson, Land, Lander, Leventis, Martin, Matthews, McGill, O'Dell, Patterson, Rankin, Reese, Short, Waldrep, Williams, Peeler, Moore and Saleeby: A BILL TO AMEND SECTION 4-9-55, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENACTMENT OF GENERAL LAWS AFFECTING COUNTIES' EXPENDITURES AND REVENUE RAISING, SO AS TO DELETE PROVISIONS IN THE GENERAL AND SPECIAL APPROPRIATION BILLS AS EXEMPTIONS; TO DESIGNATE SECTIONS 4-10-10 THROUGH 4-10-100 AS ARTICLE 1, ENTITLED "LOCAL OPTION SALES TAX"; TO AMEND SECTION 4-10-10, 1976 CODE, SO AS TO DEFINE "POSITIVE MAJORITY"; TO ADD SECTION 4-10-16, SO AS TO PROVIDE THAT A COUNTY MAY NOT BE SUBJECT TO MORE THAN ONE PERCENT LOCAL OPTION SALES TAX AT THE SAME TIME; TO ADD SECTION 4-10-21 TO PROVIDE FOR LOCAL OPTION SALES TAX BY ORDINANCE OF ONE PERCENT ENACTED BY A POSITIVE MAJORITY; TO AMEND SECTION 4-10-25, RELATING TO APPLICATION OF TAX TO CONSTRUCTION CONTRACTS, SO AS TO PROVIDE THAT THESE PROVISIONS APPLY TO SECTION 4-10-21; TO AMEND CHAPTER 10, TITLE 4, BY ADDING ARTICLE 3, ENTITLED "CAPITAL PROJECT SALES TAX ACT" SO AS TO ALLOW FOR A ONE PERCENT LOCAL SALES TAX TO FUND CAPITAL PROJECTS BY REFERENDUM; ALLOW A COUNTY TO CREATE A COMMISSION TO CONSIDER PROPOSALS FOR FUNDING CAPITAL PROJECTS WITHIN THE COUNTY AREA; TO PROVIDE FOR THE COMPOSITION OF THE COMMISSION; AND TO AMEND TITLE 6, CHAPTER 1, RELATING TO LOCAL GOVERNMENTS, BY DESIGNATING SECTIONS 6-1-10 THROUGH 6-1-110 AS ARTICLE 1, ENTITLED "GENERAL PROVISIONS"; TO ADD SECTION 6-1-85 TO REQUIRE THE BUDGET AND CONTROL BOARD, DIVISION OF BUDGET AND ANALYSES TO MONITOR AND REVIEW THE RELATIVE PROPERTY TAX BURDEN ON EACH CLASS OF TAXABLE PROPERTY AND DEVELOP MODELS TO ESTIMATE THE SHIFT IN PROPERTY TAX BURDENS AMONG THE CLASSES; TO ADD ARTICLE 3, ENTITLED "AUTHORITY OF LOCAL GOVERNMENTS TO ASSESS TAXES AND FEES", SO AS TO PROVIDE THAT A LOCAL GOVERNING BODY MAY NOT IMPOSE A NEW TAX AFTER DECEMBER 31, 1996, UNLESS SPECIFICALLY AUTHORIZED BY THE GENERAL ASSEMBLY; TO PROVIDE THAT A POSITIVE MAJORITY WOULD BE REQUIRED TO IMPOSE OR INCREASE A BUSINESS LICENSE TAX; TO PROVIDE THAT MILLAGE RATES MAY ONLY BE INCREASED ABOVE THE CONSUMER PRICE INDEX BY A POSITIVE MAJORITY VOTE AND TO LIST EXCEPTIONS; TO PROVIDE THAT FEES MUST BE ENACTED BY A POSITIVE MAJORITY AND THAT REVENUE FROM FEES MUST BE KEPT SEPARATE FROM THE GENERAL FUND UNLESS IT IS LESS THAN FIVE PERCENT OF THE TOTAL BUDGET; TO PROVIDE FOR UTILITY FEES; TO ADD ARTICLE 5, ENTITLED "LOCAL ACCOMMODATIONS TAX", TO ALLOW FOR A FOUR PERCENT LOCAL ACCOMMODATIONS TAX, AND TO SPECIFY HOW THE REVENUE MUST BE HELD AND USED; TO ADD ARTICLE 7, ENTITLED "LOCAL HOSPITALITY TAX" SO AS TO ALLOW FOR A TWO PERCENT HOSPITALITY TAX AND TO SPECIFY HOW THE REVENUE MUST BE HELD AND USED; AND TO AMEND CHAPTER 11, TITLE 6, RELATING TO SPECIAL PURPOSE DISTRICTS, BY ADDING ARTICLE 15, SO AS TO PROVIDE FOR DISSOLUTION OF SPECIAL PURPOSE DISTRICTS BY PETITION AND REFERENDUM.

Rep. HARRISON asked unanimous consent to have the Bill placed on the Calendar without reference.

Rep. BAXLEY objected.

Referred to Committee on Judiciary.

S. 725 -- Senators McConnell, Passailaigue, Courson, Ravenel and Ford: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 78 SO AS TO PROVIDE FOR THE ISSUANCE OF LICENSE PLATES ON BEHALF OF THE H.L. HUNLEY SUBMARINE.

Referred to Committee on Education and Public Works.

CONCURRENT RESOLUTION

The following was introduced:

H. 4167 -- Reps. Koon and Allison: A CONCURRENT RESOLUTION TO CONGRATULATE MRS. EDNA BEDENBAUGH OF LEXINGTON UPON HER SELECTION AS THE 1997 MS. SOUTH CAROLINA SENIOR AMERICA AND TO WISH HER THE VERY BEST OF LUCK IN THE MS. USA SENIOR AMERICA NATIONAL COMPETITION TO BE HELD IN SEPTEMBER.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4168 -- Rep. Davenport: A CONCURRENT RESOLUTION TO RECOGNIZE THE ACHIEVEMENTS OF JOSHUA DAVID FLOWE OF INMAN, SOUTH CAROLINA, UPON HIS EARNING OF THE RANK OF EAGLE SCOUT.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4169 -- Reps. Davenport and Littlejohn: A CONCURRENT RESOLUTION TO CELEBRATE WITH DR. JIMMY ROBBINS OF SPARTANBURG COUNTY ON THE ANNIVERSARY OF HIS THIRTY-FIVE YEARS OF FAITHFUL SERVICE TO THE MOUNTAIN VIEW BAPTIST CHURCH IN COWPENS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4170 -- Rep. Wilkes: A CONCURRENT RESOLUTION EXPRESSING THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE FAIRFIELD CENTRAL HIGH SCHOOL "GRIFFINS" FOOTBALL TEAM FOR THEIR EXCEPTIONAL SEASON AND ON WINNING THE 1996 CLASS AAA STATE FOOTBALL CHAMPIONSHIP.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

HOUSE RESOLUTION

On motion of Rep. WILKES, with unanimous consent, the following was taken up for immediate consideration:

H. 4171 -- Rep. Wilkes: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR OF THE SOUTH CAROLINA HOUSE OF REPRESENTATIVES TO THE FAIRFIELD CENTRAL HIGH SCHOOL "GRIFFINS" FOOTBALL TEAM, COACHES, AND OTHER SCHOOL OFFICIALS ON WEDNESDAY, MAY 21, 1997, AT A TIME TO BE DETERMINED BY THE SPEAKER, FOR THE PURPOSE OF BEING RECOGNIZED AND CONGRATULATED ON WINNING THE 1996 CLASS AAA STATE FOOTBALL CHAMPIONSHIP.

Be it resolved by the House of Representatives:

That the privilege of the floor of the House of Representatives is extended to the Fairfield Central High School "Griffins" Football Team, coaches, and other school officials on Wednesday, May 21, 1997, at a time to be determined by the Speaker, for the purpose of being recognized and congratulated on winning the 1996 Class AAA State Football Championship.

The Resolution was adopted.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows.

Allison                Altman                 Askins
Bailey                 Barfield               Barrett
Battle                 Bauer                  Baxley
Beck                   Boan                   Bowers
Breeland               Brown, H.              Brown, J.
Brown, T.              Byrd                   Campsen
Cato                   Cave                   Chellis
Clyburn                Cobb-Hunter            Cooper
Cotty                  Cromer                 Dantzler
Davenport              Delleney               Easterday
Fleming                Gamble                 Gourdine
Hamilton               Harrell                Harrison
Haskins                Hawkins                Hines, J.
Hines, M.              Hinson                 Hodges
Howard                 Inabinett              Jordan
Keegan                 Kelley                 Kennedy
Kinon                  Kirsh                  Klauber
Knotts                 Koon                   Lanford
Law                    Leach                  Lee
Limbaugh               Limehouse              Littlejohn
Lloyd                  Mack                   Maddox
Martin                 Mason                  McCraw
McLeod                 McMahand               McMaster
Meacham                Miller                 Moody-Lawrence
Mullen                 Neilson                Pinckney
Rhoad                  Rice                   Robinson
Rodgers                Sandifer               Scott
Sharpe                 Sheheen                Simrill
Smith, F.              Smith, J.              Smith, R.
Spearman               Stille                 Stoddard
Stuart                 Townsend               Tripp
Trotter                Vaughn                 Walker
Webb                   Wilder                 Wilkes
Wilkins                Witherspoon            Woodrum
Young                  Young-Brickell

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Tuesday, May 20.

C. Alex Harvin III                Dwight A. Loftis
Anne Parks                        Joseph H. Neal
Doug Smith                        Michael S. Whatley
Grady A. Brown                    John G. Felder
Tracy Edge                        Ralph W. Canty
Richard M. Quinn, Jr.             Jackson S. Whipper
Jerry N. Govan                    Olin R. Phillips
Marion P. Carnell                 John W. Riser
Lynn Seithel
Total Present--121

DOCTOR OF THE DAY

Announcement was made that Dr. William Gerard of Chapin is the Doctor of the Day for the General Assembly.

ORDERED TO THIRD READING

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

H. 4156 -- Rep. Littlejohn: A BILL TO AMEND ACT 898 OF 1966, AS AMENDED, RELATING TO THE PACOLET STATION FIRE DISTRICT IN SPARTANBURG COUNTY, SO AS TO INCREASE THE MEMBERS OF THE BOARD OF FIRE CONTROL FOR THE DISTRICT FROM FIVE TO SEVEN.

H. 3966 -- Reps. Trotter, Breeland, Chellis, Meacham, Hinson, Riser, Sandifer, Cooper, F. Smith, Barrett, McMahand, Webb, Stille, Fleming, Robinson, Law, Dantzler, Cato, Leach, Loftis, Kelley, Townsend, Kirsh, Lanford, Edge and Witherspoon: A BILL TO AMEND SECTIONS 58-35-40, 58-35-60, 58-35-80, AND 58-35-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNDERGROUND UTILITY DAMAGE PREVENTION ACT, SO AS TO MAKE CERTAIN TECHNICAL CHANGES, REVISE A NOTICE OF INTENT TO EXCAVATE OR DEMOLISH THAT MUST BE SERVED, TO REVISE THE DEFINITION OF "THE APPROXIMATE LOCATION OF UNDERGROUND UTILITIES", AND TO PROVIDE A LIABILITY PROVISION FOR A PERSON WHO DAMAGES AN UNDERGROUND UTILITY BELONGING TO AN OPERATOR WHO IS NOT A MEMBER OF CERTAIN ASSOCIATIONS FOR MUTUAL RECEIPT OF NOTICE.

Rep. MEACHAM explained the Bill.

S. 303 -- Senators Courtney and Land: A BILL TO AMEND SECTION 42-1-415, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SUBMISSION OF DOCUMENTATION TO THE WORKERS' COMPENSATION COMMISSION THAT A CONTRACTOR OR SUBCONTRACTOR HAS REPRESENTED HIMSELF TO A HIGHER TIER SUBCONTRACTOR, CONTRACTOR, OR PROJECT OWNER AS HAVING WORKERS' COMPENSATION INSURANCE AT THE TIME THE CONTRACTOR OR SUBCONTRACTOR WAS ENGAGED TO PERFORM WORK, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE AND PROVIDE, AMONG OTHER THINGS, THAT IF A CONTRACTOR OR SUBCONTRACTOR HAS SO REPRESENTED HIMSELF AND THAT IF THAT EMPLOYER IS UNINSURED, REGARDLESS OF THE NUMBER OF EMPLOYEES THE EMPLOYER HAS, THE HIGHER TIER SUBCONTRACTOR, CONTRACTOR, PROJECT OWNER, OR HIS INSURANCE CARRIER SHALL IN THE FIRST INSTANCE PAY ALL AWARDS OF COMPENSATION AND MEDICAL BENEFITS.

Rep. LAW explained the Bill.

H. 3857 -- Rep. Felder: A BILL TO AMEND SECTION 20-7-670, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSTITUTIONAL ABUSE AND NEGLECT, SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO INVESTIGATE SUCH ABUSE AND NEGLECT, TO PROVIDE THE DEPARTMENT WITH THE POWERS PROVIDED FOR INVESTIGATION OF ABUSE AND EXPLOITATION OF VULNERABLE ADULTS, AND TO REMOVE FROM THE OMBUDSMAN IN THE OFFICE OF THE GOVERNOR AND ASSIGN TO THE DEPARTMENT THE AUTHORITY TO INVESTIGATE ALLEGATIONS OF ABUSE AND NEGLECT OCCURRING IN HEALTH FACILITIES LICENSED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL OR OPERATED BY THE DEPARTMENT OF MENTAL HEALTH.

Rep. YOUNG explained the Bill.

S. 40 -- Senators J. Verne Smith, Wilson and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-5655 SO AS TO PROVIDE FOR THE CONFIDENTIALITY OF RECORDS OF CLIENTS AND POTENTIAL CLIENTS OF THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN DIVISION, OFFICE OF THE GOVERNOR, AND TO PROVIDE EXCEPTIONS AND PENALTIES; AND TO REPEAL SECTION 20-7-5630 RELATING TO THE ADVISORY COUNCIL TO THE CONTINUUM OF CARE DIVISION.

Rep. HARRISON explained the Bill.

S. 397 -- Senators J. Verne Smith, Fair, Thomas and Bryan: A BILL TO AMEND SECTION 4-1-170, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MULTI-COUNTY INDUSTRIAL AND BUSINESS PARKS, SO AS TO REQUIRE THE PRIOR CONSENT OF A MUNICIPALITY ALL OR A PORTION OF WHICH IS TO BE INCLUDED IN THE PARK.

Rep. KLAUBER explained the Bill.

S. 532 -- Senators Martin, Wilson, J. Verne Smith, Moore, Short, Washington and Alexander: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 20-3-235, 20-7-853, AND 20-7-854; AND BY AMENDING SECTIONS 20-1-220, 20-1-350, 20-7-949, 20-7-957, 44-7-77, AS AMENDED, 44-63-60, AS AMENDED, 44-63-75, 44-63-80, AS AMENDED, 44-63-84, 44-63-86, AND 44-63-110, AS AMENDED, ALL RESPECTIVELY RELATING TO DIVORCE DECREES, ADMINISTRATIVE AND JUDICIAL ORDERS, MARRIAGE LICENSES, OCCUPATIONAL AND PROFESSIONAL LICENSES, BUSINESS LICENSES, DRIVERS' LICENSES, HUNTING, FISHING, OR TRAPPING LICENSES, PATERNITY ORDERS AND ACKNOWLEDGMENTS, BIRTH AND DEATH CERTIFICATES, SO AS TO REQUIRE SOCIAL SECURITY NUMBERS ON OR IN THESE DOCUMENTS AND TO EXEMPT THE DEPARTMENT OF SOCIAL SERVICES FROM PAYING A FEE FOR OBTAINING COPIES OF THESE DOCUMENTS IF THE DOCUMENT IS NEEDED FOR THE PURPOSE OF ESTABLISHING PATERNITY OR ESTABLISHING, MODIFYING, OR ENFORCING CHILD SUPPORT; TO AMEND SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20, RELATING TO INCOME WITHHOLDING FOR CHILD SUPPORT BY ADDING PART III, SO AS TO ESTABLISH PROCEDURES FOR CREATING, PERFECTING, AND COLLECTING A LIEN FOR PAST-DUE CHILD SUPPORT IN AN AMOUNT EQUAL TO OR GREATER THAN $2,500; TO ADD SECTION 20-7-92, SO AS TO REQUIRE THE COURT TO ORDER TEMPORARY PAYMENT OF CHILD SUPPORT PENDING A JUDICIAL DETERMINATION OF PATERNITY UNDER CERTAIN CONDITIONS; TO ADD SECTION 20-7-855, SO AS TO PROVIDE THAT COPIES OF BILLS FOR TESTING FOR PARENTAGE AND PRENATAL AND POSTNATAL HEALTH CARE ARE PRIMA FACIE EVIDENCE IN PATERNITY ACTIONS FOR EXPENSES INCURRED; TO ADD SECTION 20-7-958 SO AS TO PROVIDE THAT A VERIFIED VOLUNTARY ACKNOWLEDGMENT OF PATERNITY CREATES A LEGAL FINDING OF PATERNITY; TO AMEND SECTION 20-7-956 RELATING TO ADMISSIBILITY OF EVIDENCE IN PATERNITY ACTIONS SO AS TO PROVIDE THAT A VERIFIED VOLUNTARY ACKNOWLEDGMENT OF PATERNITY CREATES A CONCLUSIVE PRESUMPTION OF PATERNITY; TO AMEND SECTION 44-63-163 RELATING TO BIRTH CERTIFICATES SUBSEQUENT TO A PATERNITY DETERMINATION SO AS TO PROVIDE THAT THE CHANGE ALSO MAY BE MADE UPON A DETERMINATION MADE BY AN ADMINISTRATIVE AGENCY; TO ADD SECTIONS 20-7-1124, 20-7-1126, 20-7-1127, 20-7-1128, 20-7-1129, 20-7-1153, 20-7-1155; TO AMEND SECTIONS 20-7-965, AS AMENDED, 20-7-1010, AS AMENDED, 20-7-1040, 20-7-1100, 20-7-1125, 20-7-1152, AND 20-7-1154, ALL RELATING TO THE UNIFORM INTERSTATE FAMILY SUPPORT ACT, SO AS TO CONFORM THIS ACT TO THE ACT AS REVISED BY THE NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS; TO AMEND SECTION 20-7-1315, AS AMENDED, RELATING TO INCOME WITHHOLDING SO AS TO REVISE DEFINITIONS AND TO REVISE CONDITIONS UNDER WHICH INCOME WITHHOLDING IS IN EFFECT; TO ADD SECTION 20-7-9570; TO AMEND SECTIONS 20-7-9505, AS AMENDED, AND 20-7-9510, RELATING TO THE ADMINISTRATIVE PROCESS FOR ESTABLISHING AND ENFORCING PATERNITY AND CHILD SUPPORT SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO ADMINISTRATIVELY CHANGE A GOVERNMENTAL PAYEE WHEN THE CHILD SUPPORT CASE IS SUBJECT TO ASSIGNMENT OR REQUIRED TO BE PAID THROUGH A GOVERNMENTAL ENTITY AND TO REVISE DEFINITIONS; TO ADD SECTION 20-7-856 SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO REMIT TO THE FEDERAL GOVERNMENT ITS SHARE OF FINES COLLECTED FOR FAILING TO COMPLY WITH SUBPOENAS AND CERTAIN CHILD SUPPORT ENFORCEMENT REQUIREMENTS; TO ADD SECTION 20-7-9575 SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE ADMINISTRATIVE SUBPOENAS; TO AMEND SECTION 20-7-420, AS AMENDED, RELATING TO JURISDICTION OF THE FAMILY COURT SO AS TO AUTHORIZE THE COURT TO ENFORCE ADMINISTRATIVE SUBPOENAS ISSUED BY THE DEPARTMENT; TO AMEND SECTION 27-23-10 RELATING TO VOIDING CONVEYANCES MADE TO DEFRAUD CREDITORS SO AS TO PROVIDE CONDITIONS UNDER WHICH A REBUTTABLE PRESUMPTION IS CREATED THAT A CHILD SUPPORT DEBTOR INTENDED TO TRANSFER INCOME OR PROPERTY TO AVOID PAYMENT TO A CHILD SUPPORT CREDITOR; TO ADD SECTIONS 43-5-595, 43-5-596, AND 43-5-597; AND TO AMEND SECTION 41-29-170, AS AMENDED, SECTION 43-5-590, AS AMENDED, RELATING TO INFORMATION TO BE PROVIDED BY THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION TO THE DEPARTMENT OF SOCIAL SERVICES AND RELATING TO THE DEPARTMENT'S DUTIES RELATIVE TO THE STATE CHILD SUPPORT PLAN, SO AS TO CLARIFY EMPLOYERS WHO MUST PROVIDE INFORMATION TO THE DEPARTMENT FOR THE PURPOSE OF THE ESTABLISHMENT OF PATERNITY OR THE ESTABLISHMENT, NOTIFICATION, OR ENFORCEMENT OF A SUPPORT OBLIGATION, TO REQUIRE UTILITY COMPANIES AND FINANCIAL INSTITUTIONS TO PROVIDE INFORMATION ON ITS CUSTOMERS FOR SUCH PURPOSES, TO PROVIDE IMMUNITY FROM LIABILITY FOR DISCLOSURE OF SUCH INFORMATION AND TO SPECIFY INFORMATION THE EMPLOYMENT SECURITY COMMISSION MUST PROVIDE; TO ADD SECTION 43-5-598 SO AS TO REQUIRE EMPLOYEES TO REPORT INFORMATION TO THE DEPARTMENT ON EMPLOYEES WHO ARE NEWLY HIRED; TO AMEND SECTION 43-5-610 RELATING TO THE CENTRAL REGISTRY OF RECORDS MAINTAINED BY THE DEPARTMENT OF SOCIAL SERVICES SO AS TO REVISE THE INFORMATION TO BE MAINTAINED AND TO WHOM INFORMATION MAY BE RELEASED; AND TO REPEAL SECTION 43-5-222 RELATING TO THE PORTION OF CHILD SUPPORT PAYMENTS TO BE PAID TO WELFARE RECIPIENTS.

Rep. FELDER explained the Bill.

SENT TO THE SENATE

The following Bill was taken up, read the third time, and ordered sent to the Senate.

H. 3891 -- Reps. Robinson and Cooper: A BILL TO AMEND SECTIONS 12-24-20, 12-24-30, 12-24-40, AND 12-24-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A DEED RECORDING FEE, SO AS TO PROVIDE THAT THE FEE IS OWED BY THE GRANTEES IN THE CASE OF A DEED FROM A MASTER-IN-EQUITY, FROM A GOVERNMENT OR ITS SUBDIVISIONS, OR FROM AN INTERNAL REVENUE CODE TAX-EXEMPT RETIREMENT PLAN; TO CLARIFY THE MEANING OF "VALUE" AND TO PROVIDE FOR THE ELECTION TO USE THE PROPERTY TAX ASSESSMENT OF FAIR MARKET VALUE FOR PURPOSES OF CHAPTER 24; TO DELETE AND CLARIFY CERTAIN EXEMPTIONS FROM THE RECORDING FEE ON DEEDS AND TO REDEFINE "FAMILY"; AND TO PROVIDE FOR CONTENTS OF AFFIDAVITS FILED IN CONNECTION WITH EXEMPT DEEDS.

ORDERED ENROLLED FOR RATIFICATION

The following Bill and Joint Resolution were read the third time, passed and, having received three readings in both Houses, it was ordered that the title of each be changed to that of an Act, and that they be enrolled for ratification.

S. 622 -- Senator Drummond: A JOINT RESOLUTION TO ALLOW THE DEPARTMENT OF PUBLIC SAFETY TO RETAIN AND EXPEND MOTOR CARRIER REGISTRATION FEES FOR FISCAL YEAR 1996-1997.

S. 451 -- Senators McConnell and Giese: A BILL TO REPEAL SECTION 2, ACT 394 OF 1994, RELATING TO THE THREE-YEAR PROSPECTIVE REPEAL WHICH PROHIBITS A HEALTH INSURANCE POLICY OR A HEALTH MAINTENANCE ORGANIZATION PLAN FROM RESTRICTING SELECTION OF A PHARMACIST OF CHOICE OR FROM RESTRICTING A PHARMACIST THE RIGHT TO PARTICIPATE AS A PROVIDER IF TERMS OF THE POLICY OR PLAN ARE MET.

S. 624--DEBATE ADJOURNED

Rep. STUART moved to adjourn debate upon the following Bill until Thursday, May 22, which was adopted.

S. 624 -- Senators Setzler, Ryberg, Lander, Wilson and Drummond: A BILL TO AMEND SECTIONS 6-25-100, AS AMENDED, 6-25-110, AND 6-25-111, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF JOINT MUNICIPAL WATER SYSTEMS AND THE AUTHORITY OF SUCH SYSTEMS TO INCUR DEBT, SO AS TO DELETE THE REQUIREMENT FOR UNANIMOUS APPROVAL BY THE GOVERNING BODY OF EACH MEMBER OF THE SYSTEM TO INCUR DEBT AND INSTEAD REQUIRE APPROVAL BY AT LEAST TWO-THIRDS OF THE GOVERNING BODIES OF THE MEMBERS OF THE SYSTEM.

H. 3908--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3908 -- Reps. Seithel, Breeland, Dantzler, Altman, Campsen, Harrell, Chellis, Inabinett, Limehouse, Whatley, Young-Brickell, Lloyd, Robinson and Clyburn: A BILL TO AMEND SECTION 12-51-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENTS FOR EXECUTION, LEVY, NOTICE, AND SEIZURE AND SALE IN INSTANCES OF DELINQUENT COUNTY TAXES, SO AS TO CLARIFY THE MEANING OF "BEST ADDRESS", TO SPECIFY "RESTRICTED DELIVERY" OF CERTIFIED MAILED NOTICES, AND TO REQUIRE NOTICE TO THE OWNER OF RECORD; TO AMEND SECTION 12-51-50, RELATING TO SALE OF PROPERTY IN INSTANCES OF DELINQUENT COUNTY TAXES, SO AS TO PROVIDE FOR SITES ALTERNATIVE TO THE COUNTY COURTHOUSE; TO AMEND SECTION 12-51-60, AS AMENDED, RELATING TO PAYMENT BY SUCCESSFUL BIDDER AND DISPOSITION OF PROCEEDS, SO AS TO REQUIRE NOTICE TO THE OWNER OF RECORD OF THE PROPERTY; AND TO AMEND SECTION 12-51-100, RELATING TO REDEMPTION AND REFUND OF PURCHASE PRICE, SO AS TO CONFORM IT TO SECTION 12-51-90.

Rep. BAUER proposed the following Amendment No. 2 (Doc Name P:\AMEND\JIC\6094HTC.97), which was adopted.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION ___.     SECTION     1.     Section 12-45-180 of the 1976 Code, as last amended by Act 60 of 1995, is further amended to read:

"Section 12-45-180.     (A)     When the taxes and assessments or any portion of the taxes and assessments charged against any property or person on the duplicate for the current fiscal year are not paid before the sixteenth day of January or thirty days after the mailing of tax notices, whichever occurs later, the county auditor shall add a penalty of three percent on the county duplicate and the county treasurer shall collect the penalty. If the taxes, assessments, and penalty are not paid before the second day of the next February, an additional penalty of seven percent must be added by the county auditor on the county duplicate and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of the next March, an additional penalty of five percent must be added by the county auditor on the county duplicate and collected by the county treasurer. If the taxes, assessments, and penalties are not paid before the seventeenth day of March, the county treasurer shall issue his tax execution to the officer authorized and directed to collect delinquent taxes, assessments, penalties, and costs for their collection as provided in Chapter 51 of this title and they must be collected as required by that chapter. The United States postmark is the determining date for mailed payments. If the county treasurer determines by proper evidence that the mailing of a tax payment was improperly postmarked, and such this error results in the imposition of a penalty provided herein, in this subsection, then such the penalty imposed herein may be waived by the county treasurer.

(B)     If title to real property is transferred during a tax year and the records of the county indicate that the tax notice was mailed or otherwise forwarded to the prior owner and the current owner received no timely notice of the tax due on the property, the treasurer shall waive any penalties imposed pursuant to subsection (A) of this section."/

Renumber sections to conform.

Amend title to conform.

Rep. BAUER explained the amendment.

The amendment was then adopted.

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

H. 3917--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3917 -- Rep. Klauber: A BILL TO AMEND SECTION 33-6-240, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CORPORATIONS, PARTNERSHIPS AND ASSOCIATIONS, SHARES AND DISTRIBUTIONS, AND SHARE OPTIONS, SO AS TO ADD PROVISIONS PROVIDING THAT IN THE CASE OF A PUBLIC CORPORATION THE TERMS AND CONDITIONS OF CERTAIN RIGHTS, OPTIONS, OR WARRANTS MAY INCLUDE RESTRICTIONS OR CONDITIONS THAT PRECLUDE OR LIMIT THE EXERCISE, TRANSFER, OR RECEIPT OF THE RIGHTS, OPTIONS, OR WARRANTS BY THE HOLDER OR HOLDERS OR BENEFICIAL OWNER OR OWNERS OF A SPECIFIED NUMBER OR PERCENTAGE OF THE OUTSTANDING VOTING SHARES OF THE PUBLIC CORPORATION.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\BBM\9442JM.97), which was adopted.

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

/SECTION     1.     Section 33-6-240 of the 1976 Code is amended to read:

"Section     33-6-240.     (A)     A corporation may issue rights, options, or warrants for the purchase of shares of the corporation. The board of directors shall determine the terms upon which the rights, options, or warrants are issued, their form and content, and the consideration for which the shares are to be issued.

(B)     In the case of a public corporation, the terms and conditions of such rights, options, or warrants may include, without limitation, restrictions or conditions that preclude or limit the exercise, transfer, or receipt of the rights, options, or warrants by the holder or holders or beneficial owner or owners of a specified number or percentage of the outstanding voting shares of the public corporation or by any transferee or any such holder or owner, or that invalidate or void the rights, options, or warrants held by the holder or owner or by the transferee. Determinations by the board of directors whether to impose, enforce, waive, or otherwise render ineffective any such restrictions or conditions may be judicially reviewed in an appropriate proceeding."

SECTION     2.     Section 33-7-102(a)(2) of the 1976 Code is amended to read:

"(2)     in the case of a corporation which is not a public corporation or of a public corporation which elects in its articles of incorporation, if the holders of at least ten percent of all the votes entitled to be cast on any issue proposed to be considered at the proposed special meeting sign, date, and deliver to the corporation's secretary one or more written demands for the meeting describing the purpose for which it is to be held."

SECTION     3.     Section 33-7-200 of the 1976 Code is amended to read:

"(b)     The shareholders' list must be available for inspection by any shareholder, beginning, in the case of corporations which are not public corporations, on the date on which notice of the meeting is given for which the list was prepared and, in the case of public corporations, not later than the fifth business day following such date, in either case, continuing through the meeting, at the corporation's principal office or at a place identified in the meeting notice in the city where the meeting is to be held. A shareholder, his agent, or attorney is entitled on written demand to inspect and, subject to the requirements of Section 33-16-102(c), to copy the list, during regular business hours and at his expense, during the period it is available for inspection."

SECTION     4.     Section 33-8-103(b) of the 1976 Code is amended to read:

"(b)     In the case of a corporation which is not a public corporation, If if a board of directors has power under the articles of incorporation or under a bylaw provision to fix or change the number of directors, the board may increase or decrease by thirty percent or less the number of directors last approved by the shareholders, but only the shareholders may increase or decrease by more than thirty percent the number of directors last approved by the shareholders."

SECTION     5.     Section 33-10-103(d) of the 1976 Code is amended to read:

"(d)     In the case of a corporation which is not a public corporation, If if the holders of at least ten percent of any class of voting shares of the corporation propose amendments to the articles of incorporation, the board of directors shall submit the proposed amendments to the shareholders at the next possible special or annual meeting."

SECTION     6.     Section 33-11-104(d) of the 1976 Code is amended to read:

"(d)     In the case of a corporation which is not a public corporation, The the parent may not deliver articles of merger to the Secretary of State for filing until at least thirty days after the date it mailed a copy of the plan of merger to each shareholder of the subsidiary who did not waive the mailing requirement."

SECTION     7.     Section 33-12-101 of the 1976 Code is amended to read:

"Section 33-12-101.     (a)     A corporation, on the terms and conditions and for the consideration determined by the board of directors, may:

(1)     sell, lease, exchange, or otherwise dispose of all, or substantially all, of its property in the usual and regular course of business; or

(2)     mortgage, pledge, dedicate to the repayment of indebtedness (whether with or without recourse), or otherwise encumber all, or substantially all, of its property whether or not in the usual and regular course of business.

(b)     A public corporation, on the terms and conditions and for the consideration determined by the board of directors, may transfer any or all of its property to a corporation, all the shares of which are owned by the public corporation.

(c)(b)     Unless the articles of incorporation require it, approval by the shareholders of a transaction described in subsection subsections (a) or (b) is not required."

SECTION     8.     Section 33-13-102 of the 1976 Code is amended to read:

"Section 33-13-102. (A)     A shareholder is entitled to dissent from, and obtain payment of the fair value of, his shares in the event of any of the following corporate actions:

(1)     consummation of a plan of merger to which the corporation is a party (i) if shareholder approval is required for the merger by Section 33-11-103 or the articles of incorporation and the shareholder is entitled to vote on the merger or (ii) if the corporation is a subsidiary that is merged with its parent under Section 33-11-104 or 33-11-108 or if the corporation is a parent that is merged with its subsidiary under Section 33-11-108;

(2)     consummation of a plan of share exchange to which the corporation is a party as the corporation whose shares are to be acquired, if the shareholder is entitled to vote on the plan;

(3)     consummation of a sale or exchange of all, or substantially all, of the property of the corporation other than in the usual and regular course of business, if the shareholder is entitled to vote on the sale or exchange, including a sale in dissolution, but not including a sale pursuant to court order or a sale for cash pursuant to a plan by which all or substantially all of the net proceeds of the sale must be distributed to the shareholders within one year after the date of sale;

(4)     an amendment of the articles of incorporation that materially and adversely affects rights in respect of a dissenter's shares because it:

(i)     alters or abolishes a preferential right of the shares;

(ii)     creates, alters, or abolishes a right in respect of redemption, including a provision respecting a sinking fund for the redemption or repurchase, of the shares;

(iii)     alters or abolishes a preemptive right of the holder of the shares to acquire shares or other securities;

(iv)     excludes or limits the right of the shares to vote on any matter, or to cumulate votes, other than a limitation by dilution through issuance of shares or other securities with similar voting rights; or

(v)     reduces the number of shares owned by the shareholder to a fraction of a share if the fractional share so created is to be acquired for cash under Section 33-6-104; or

(5)     in the case of corporations which are not public corporations, the approval of a control share acquisition under Article 1 of Chapter 2 of Title 35;

(6)     any corporate action to the extent the articles of incorporation, bylaws, or a resolution of the board of directors provides that voting or nonvoting shareholders are entitled to dissent and obtain payment for their shares.

(B)     Notwithstanding subsection (A), no dissenters' rights under this section are available for shares of any class or series of shares which, at the record date fixed to determine shareholders entitled to receive notice of a vote at the meeting of shareholders to act upon the agreement of merger or exchange, were either listed on a national securities exchange or designated as a national market system security on an interdealer quotation system by the National Association of Securities Dealers, Inc."

SECTION     9.     Section 33-1-400 of the 1976 Code is amended by adding:

"(28)     'Public corporation' means a corporation, a class of whose equity securities are registered with a federal agency under the Securities Exchange Act of 1934 or a successor act to the Securities Exchange Act of 1934."

SECTION     10.     This act takes effect upon approval by the Governor./

Amend title to conform.

Rep. KLAUBER explained the amendment.

The amendment was then adopted.

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

H. 3971--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 3971 -- Reps. Campsen, Woodrum, Young, Klauber, Altman and Harrison: A BILL TO AMEND SECTION 62-1-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EFFECTIVE DATE OF THE PROBATE CODE, SO AS TO CLARIFY THAT SUBSTANTIVE RIGHTS IN AN ESTATE ARE DETERMINED BY THE LAW IN EFFECT AT THE DATE OF DEATH; TO AMEND SECTION 62-1-201, RELATING TO THE DEFINITION OF "MINOR", SO AS TO EXCLUDE THOSE PERSONS UNDER THE AGE OF EIGHTEEN WHO ARE EITHER MARRIED OR EMANCIPATED; TO AMEND SECTION 62-1-302, AS AMENDED, RELATING TO SUBJECT MATTER JURISDICTION OF THE PROBATE COURT, SO AS TO PROVIDE THE PROBATE COURT EXCLUSIVE ORIGINAL JURISDICTION OVER ACCOUNTS AND DISPUTES ARISING UNDER THE UNIFORM GIFTS TO MINORS ACT; TO AMEND SECTION 62-1-308, AS AMENDED, RELATING TO APPEALS, SO AS TO PROVIDE FOR ALLOWING PARTIES NOT IN DEFAULT TO APPEAL DIRECTLY TO THE SOUTH CAROLINA SUPREME COURT; TO AMEND SECTION 62-1-403, RELATING TO THE REPRESENTATIVE CAPACITY OF PARENTS, SO AS TO ADD "UNBORN CHILD"; TO AMEND SECTION 62-2-109, AS AMENDED, RELATING TO THE MEANING OF "CHILD", SO AS TO CLARIFY WHEN AND HOW PATERNITY MAY BE ESTABLISHED; TO AMEND SECTION 62-2-302, AS AMENDED, RELATING TO PRETERMITTED CHILDREN, SO AS TO SUBSTITUTE "SPOUSE" FOR "PARENT OF THE OMITTED CHILD"; TO AMEND SECTION 62-2-501, RELATING TO WHO MAY MAKE A WILL, SO AS TO PROHIBIT MINORS, AS DEFINED IN SECTION 62-1-201 FROM MAKING A WILL; TO AMEND SECTION 62-2-802, RELATING TO THE DEFINITION OF "SURVIVING SPOUSE", SO AS TO NOT INCLUDE A COMMON LAW SPOUSE UNLESS HE OR SHE HAS BEEN ESTABLISHED AS SUCH BY AN ADJUDICATION COMMENCED WITHIN A SPECIFIED PERIOD; TO AMEND SECTION 62-2-803, RELATING TO THE EFFECTS OF HOMICIDE ON INTESTATE SUCCESSION, SO AS TO PROVIDE THAT A KILLER WHO DIES WITHIN ONE HUNDRED AND TWENTY HOURS OF THE DECEDENT IS CONSIDERED TO HAVE PREDECEASED THE DECEDENT; TO AMEND SECTION 62-3-203, AS AMENDED, RELATING TO THE PRIORITY AMONG PERSONS SEEKING APPOINTMENT AS A PERSONAL REPRESENTATIVE, SO AS TO REALIGN LANGUAGE CONVEYING THE PRIORITY OF A NOMINATOR TO THE NOMINEE WITH THE QUALIFICATION THAT PERSONS NOMINATED BY THE DECEDENT SHALL HAVE THE HIGHEST PRIORITY; TO AMEND SECTION 62-3-603, AS AMENDED, RELATING TO BOND REQUIRED OF PERSONAL REPRESENTATIVES, SO AS TO CLARIFY WHEN BOND IS REQUIRED; TO AMEND SECTION 62-3-610, RELATING TO THE TERMINATION OF APPOINTMENT OF A PERSONAL REPRESENTATIVE, SO AS TO CLARIFY THE PROCESS FOR RESIGNATION OF A PERSONAL REPRESENTATIVE; TO AMEND SECTION 62-3-614, RELATING TO THE APPOINTMENT OF A SPECIAL ADMINISTRATOR, SO AS TO PROVIDE FOR INFORMAL APPOINTMENT UPON THE APPLICATION OF A CREDITOR OF THE DECEDENT'S ESTATE; TO AMEND SECTION 62-3-719, AS AMENDED, RELATING TO THE COMPENSATION OF A PERSONAL REPRESENTATIVE, SO AS TO CLARIFY THAT COMPENSATION IS BASED UPON THE VALUE OF THE PROBATE ESTATE; TO AMEND SECTION 62-3-914, AS AMENDED, RELATING TO THE DISPOSITION OF UNCLAIMED ASSETS, SO AS TO DELETE THE TIME REQUIREMENT FOR FIRST NOTICE AND TO PROVIDE THAT UNCLAIMED DEVISES OF ONE HUNDRED DOLLARS OR LESS MAY BE TRANSFERRED TO THE SOUTH CAROLINA STATE TREASURER; TO AMEND SECTION 62-3-1001, RELATING TO PETITION FOR SETTLEMENT, SO AS TO CLARIFY THAT THE PROPOSAL FOR DISTRIBUTION PERTAINS ONLY TO ASSETS NOT YET DISTRIBUTED; TO AMEND SECTION 62-3-1101, RELATING TO THE EFFECT OF APPROVAL OF AGREEMENTS INVOLVING TRUSTS, INALIENABLE INTERESTS, OR INTERESTS OF THIRD PERSONS, SO AS TO CLARIFY THAT SETTLEMENTS PURSUANT TO THIS SECTION NEED NOT COMPLY WITH SECTION 62-5-433; TO AMEND SECTION 62-5-103, AS AMENDED, RELATING TO PAYMENT OR DELIVERY TO A MINOR OR INCAPACITATED PERSON, SO AS TO CLARIFY FOR WHAT PURPOSES SUMS RECEIVED ON BEHALF OF THE MINOR OR INCAPACITATED PERSON MAY BE USED; TO AMEND SECTION 62-5-104, RELATING TO THE DELEGATION OF A GUARDIAN'S POWERS, SO AS TO PROVIDE FOR THE POWERS TO BE DELEGATED TO ANOTHER PERSON FOR A PERIOD NOT TO EXCEED THIRTY DAYS; TO AMEND SECTION 62-5-310, AS AMENDED, RELATING TO TEMPORARY GUARDIANS, SO AS TO REQUIRE A HEARING TO REVIEW THE APPOINTMENT OF A TEMPORARY GUARDIAN WITHIN THIRTY DAYS OF THAT APPOINTMENT; TO AMEND SECTION 62-5-405, RELATING TO NOTICE OF APPOINTMENT OF A CONSERVATOR, SO AS TO REQUIRE THAT ONLY THE PERSON TO BE PROTECTED BE SERVED PERSONALLY WITH NOTICE AT LEAST TWENTY DAYS BEFORE THE HEARING; TO AMEND SECTION 62-5-424, RELATING TO THE POWERS OF THE CONSERVATOR, SO AS TO PROVIDE FOR LIMITED POWERS OF THE CONSERVATOR TO THOSE SET FORTH IN THE SECTION AND TO PROVIDE THAT A CONSERVATOR, WITH COURT APPROVAL, MAY ENCUMBER ASSETS FOR PERIODS WITHIN OR BEYOND HIS TERM OF CONSERVATORSHIP; TO AMEND SECTION 62-5-425, RELATING TO DISTRIBUTIVE DUTIES AND POWERS OF THE CONSERVATOR, SO AS TO CLARIFY THAT ONLY MAJORITY OR EMANCIPATION RESULTING FROM A PROCEEDING BEGUN PRIOR TO THE BEGINNING OF THE CONSERVATORSHIP, AND NOT MARRIAGE, END A CONSERVATORSHIP; TO AMEND SECTION 62-5-428, RELATING TO CLAIMS AGAINST PROTECTED PERSONS, SO AS TO PROVIDE THAT ANY CLAIM DENIED BY THE CONSERVATOR REMAINS BARRED UNLESS THE CLAIMANT FILES A PETITION WITH THE COURT WITHIN THIRTY DAYS OF RECEIPT OF THE NOTICE OF THE DISALLOWANCE; TO AMEND SECTION 62-5-501, AS AMENDED, RELATING TO POWERS OF ATTORNEY NOT AFFECTED BY DISABILITY, SO AS TO DELETE THE COURT'S REQUIREMENT OF AN INVENTORY AND A SURETY BOND; TO AMEND SECTION 62-7-705, AS AMENDED, RELATING TO THE RESIGNATION OF A TRUSTEE, SO AS TO PROVIDE FOR RESIGNATION ONLY UPON SPECIFIED CONDITIONS; TO AMEND SECTION 20-1-550, RELATING TO SERVICE UPON A NONRESIDENT OR ABSENT DEFENDANT IN AN ACTION TO ANNUL A MARRIAGE, SO AS TO ELIMINATE THE DUTY OF THE PLAINTIFF TO FORWARD NOTICE TO THE PROBATE COURT; TO AMEND SECTION 20-7-150, RELATING TO DEFINITIONS UNDER THE UNIFORM GIFTS TO MINORS ACT, SO AS TO CLARIFY THE DEFINITIONS OF "COURT" AND "MINOR"; AND TO REPEAL SECTION 14-23-650, RELATING TO THE DESCRIPTION OF DEVISED LANDS.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\GJK\20740AC.97), which was adopted.

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

/SECTION     1.     Section 62-1-100(b)(5) of the 1976 Code is amended to read:

"(5)     any a rule of construction or presumption provided in this Code applies to instruments executed and multiple-party accounts opened before the effective date unless there is a clear indication of a contrary intent."

SECTION     2.     Section 62-1-201(24) of the 1976 Code is amended to read:

"(24)     'Minor' means a person who is under eighteen years of age, excluding a person under the age of eighteen who is married or emancipated as decreed by the family court."

SECTION     3.     Section 62-1-302 of the 1976 Code, as last amended by Act 475 of 1992, is further amended to read:

"Section 62-1-302.     (a) To the full extent permitted by the Constitution, and except as otherwise specifically provided hereinafter, the probate court has exclusive original jurisdiction over all subject matter related to:

(1)     estates of decedents, including the contest of wills, construction of wills, and determination of heirs and successors of decedents and estates of protected persons;

(2)     protection of minors, (except that jurisdiction over the care, custody, and control of the persons of minors is governed by Section 62-5-201) and incapacitated persons, including the mortgage and sale of personal and real property owned by minors or incapacitated persons as well as gifts made pursuant to the South Carolina Uniform Gifts to Minors Act, Section 20-7-140 et seq., except that jurisdiction for approval of settlement of claims in favor of or against minors or incapacitated persons is governed by Section 62-5-433;

(3)     trusts, inter vivos or testamentary, including the appointment of successor trustees;

(4)     the issuance of marriage licenses, in form as provided by the Bureau of Vital Statistics of the Department of Health and Environmental Control; to record, index, and dispose of copies of marriage certificates; and the issuance of issue certified copies of such the licenses and certificates;

(5)     the performance of the duties of the clerk of the circuit and family courts of the county in which such the probate court is held when there is a vacancy in the office of clerk of court for any reason and in proceedings in eminent domain for the acquisition of rights-of-way by railway companies, canal companies, governmental entities, or public utilities when such the clerk is disqualified by reason of ownership of or interest in any lands over which it is sought to obtain such the rights-of-way;

(6)     the involuntary commitment of persons suffering from mental illness, mental retardation, alcoholism, drug addiction, and active pulmonary tuberculosis.

(b)     The court's jurisdiction over matters involving wrongful death or actions under the survival statute is concurrent with that of the circuit court and shall extend only to the approval of settlements as provided in Sections 15-51-41 and 15-51-42, and to the allocation of settlement proceeds among the parties involved in the estate.

(c)     Notwithstanding the exclusive jurisdiction of the probate court over the foregoing matters, any action or proceeding filed in the probate court and relating to the following subject matters, on motion of any a party, or by the court on its own motion, made not later than ten days following the date on which all responsive pleadings must be filed, must be removed to the circuit court and in such these cases the circuit court shall proceed upon the matter de novo:

(1)     formal proceedings for the probate of wills and for the appointment of personal representatives;

(2)     construction of wills;

(3)     actions to try title;

(4)     trusts; and

(5)     actions in which a party has a right to trial by jury and which involve an amount in controversy of at least five thousand dollars in value. The removal to the circuit court of an action or proceeding within the exclusive jurisdiction of the probate court applies only to the particular action or proceeding removed, and the probate court otherwise retains continuing exclusive jurisdiction.; and

(6)     actions concerning gifts made pursuant to the South Carolina Uniform Gifts to Minors Act, Section 20-7-140 et seq.

The removal to the circuit court of an action or proceeding within the exclusive jurisdiction of the probate court applies only to the particular action or proceeding removed, and the probate court otherwise retains continuing exclusive jurisdiction."

SECTION     4.     Section 62-1-308 of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"Section 62-1-308.     Except as provided in subsection (g), Appeals appeals from the probate court shall must be to the circuit court and shall be are governed by the following rules:

(a)     Any A person interested in any a final order, sentence, or decree of any a probate court and considering himself injured thereby by it may appeal therefrom to the circuit court in the same county. The notice of intention to appeal to the circuit court must be filed in the office of the circuit court and in the office of the probate court and a copy thereof served on all parties within ten days after receipt of written notice of the decision appealed from order, sentence, or decree of the probate court. The grounds of appeal must be filed in the office of the probate court and a copy thereof served on all parties within forty-five days after receipt of written notice of the order, sentence, or decree of the probate court.

(b)     Within thirty days after the grounds of appeal shall have has been filed in the office of the probate court, as provided in subsection (a), the probate court shall make a return to the appellate court of the testimony, proceedings, and judgment and file it in the appellate court. Upon the appeal being finally disposed of final disposition of the appeal, all such papers included in the return shall must be returned forwarded to the probate court.

(c)     When an appeal according to law is taken from any a sentence or decree of the probate court, all proceedings in pursuance of the order, sentence, or decree appealed from shall cease until the judgment of the circuit or Supreme Court is had.; but, If the appellant waives his appeal in writing waives his appeal before the entry of such the judgment, proceedings may be had in the probate court as if no appeal had been taken.

(d)     When the return shall have has been filed in the circuit court as provided in subsection (b), the court shall proceed to the hearing and determination of hear and determine the appeal according to the rules of law. The hearing shall must be strictly on appeal and no new evidence shall may be presented.

(e)     The final decision and judgment in cases appealed, as provided in this code, shall must be certified to the probate court by the circuit court or Supreme Court, as the case may be, and the same proceedings shall must be had in the probate court as though such the decision had been made in such probate court.

(f)     No A judge of any a probate court shall must not be admitted to have any voice in judging or determining any an appeal from his decision or be permitted to act as attorney or counsel thereon.

(g)     If the parties not in default consent either in writing or on the record at a hearing in the probate court, a party to a final order, sentence, or decree of a probate court who considers himself injured by it may appeal directly to the Supreme Court, and the procedure for the appeal must be governed by the South Carolina Appellate Court Rules."

SECTION     5.     Section 62-1-403(2)(ii) and (iii) of the 1976 Code are amended to read:

"(ii)     To the extent there is no conflict of interest between them or among persons represented, orders binding a conservator bind the person whose estate he controls; orders binding a guardian bind the ward if no conservator of his estate has been appointed; orders binding a trustee bind beneficiaries of the trust in proceedings to probate a will establishing or adding to a trust to review the acts or accounts of a prior fiduciary and in proceedings involving creditors or other third parties; and orders binding a personal representative bind persons interested in the undistributed assets of a decedent's estate in actions or proceedings by or against the estate. If there is no conflict of interest and no conservator or guardian has been appointed, a parent may represent his minor or unborn child.

(iii)     An A minor or unborn or unascertained person who is not otherwise represented is bound by an order to the extent his interest is adequately represented by another party having a substantially identical interest in the proceeding."

SECTION     6.     Section 62-2-109(2)(ii) of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"(ii)     the paternity is established by an adjudication commenced before the death of the father or within the later of eight months after the death of the father or six months after the probate of his estate the initial appointment of a personal representative of his estate and, if after his death, by clear and convincing proof, except that the paternity established under this subparagraph subitem (ii) is ineffective to qualify the father or his kindred to inherit from or through the child unless the father has openly treated the child as his and has not refused to support the child."

SECTION     7.     Section 62-2-302(a)(2) of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"(2)     when the will was executed the testator had one or more children and devised substantially all his estate to the other parent of the omitted child his spouse; or"

SECTION     8.     Section 62-2-501 of the 1976 Code is amended to read:

"Section 62-2-501.     Any A person married or eighteen or more years of age who is of sound mind and who is not a minor as defined in Section 62-1-201(24) may make a will."

SECTION     9.     Section 62-2-802(b) of the 1976 Code is amended by adding:

"(4)     a person claiming to be a common law spouse who has not been established to be a common law spouse by an adjudication commenced before the death of the decedent or within the later of eight months after the death of the decedent or six months after the initial appointment of a personal representative; if the action is commenced after the death of the decedent, proof must be by clear and convincing evidence."

SECTION     10.     Section 62-2-803 of the 1976 Code is amended by adding:

"(g)     For purposes of this section, the killer is considered to have predeceased the decedent if the killer dies within one hundred twenty hours after feloniously and intentionally killing the decedent."

SECTION     11.     Section 62-3-203(a)(7) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(7)     four months after the death of the decedent, upon application by the South Carolina Department of Revenue and Taxation, any a person suitable to the court. Any person with priority may nominate another, who shall have the same priority as the person making the nomination."

SECTION     12.     Section 62-3-203(a) of the 1976 Code, as last amended by Act 521 of 1990, is further amended by adding:

"(8)     Unless a contrary intent is expressed in the decedent's will, a person with priority under subsection (a) may nominate another, who shall have the same priority as the person making the nomination, except that a person nominated by the testator to serve as personal representative or successor personal representative shall have a higher priority than a person nominated pursuant to this item."

SECTION     13.     Section 62-3-603(A) of the 1976 Code, as last amended by Act 470 of 1994, is further amended to read:

"(A) Except as otherwise provided in this section, no bond is required of a personal representative or successor personal representative who is named in a will or when there is only a single beneficiary named in a will who is also appointed as the personal representative. Bond is required in the following cases:

(1)     upon the appointment of a special administrator;

(2)     upon the appointment of a personal representative of an intestate estate unless the court has determined at the time of appointment that there is only a single qualified surviving heir pursuant to the provisions of this Probate Code governing intestacy and that the heir is appointed as the personal representative;

(3)     upon appointment of a nonresident personal representative unless bond is expressly excused in the will;

(4)     when a personal representative is appointed to administer an estate under a will containing an express requirement of bond; or

(5)     when bond is required under Section 62-3-605;

(6)     upon appointment of a personal representative not named in a will, unless otherwise provided in the will or in this section or unless the personal representative is the sole beneficiary named in the will.

No bond is required of a banking corporation or trust company qualified under Section 34-15-10 when it is appointed to act as a personal representative except under item (4). Except as may be required pursuant to Section 62-3-605 or upon the appointment of a special administrator, a personal representative is not required to file a bond if:

(1)     all heirs and devisees agree to waive the bond requirement;

(2)     the personal representative is the sole heir or devisee;

(3)     the personal representative is a state agency, bank, or trust company, unless the will expressly requires a bond; or

(4)     the personal representative is named in the will, unless the will expressly requires a bond.

If, pursuant to Section 62-3-203(a), the court appoints as personal representative a nominee of a personal representative named in a will, or if bond is required under item (6) of this section, the court may in its discretion decide not to require bond."

SECTION     14.     Section 62-3-610 of the 1976 Code is amended to read:

"Section 62-3-610.     (a)     Unless otherwise provided, an order closing an estate as provided in Section 62-3-1001 terminates an appointment of a personal representative.

(b)     A personal representative may resign his position by filing a written statement of resignation with the court after he has given at least fifteen days and providing twenty days' written notice to the persons known to be interested in the estate. If no one applies or petitions for appointment of a successor representative within the time indicated in the notice, the filed statement of resignation is ineffective as a termination of appointment and in any event is effective only upon the appointment and qualification of a successor representative and delivery of the assets to him."

SECTION     15.     Section 62-3-614(1) of the 1976 Code is amended to read:

"(1)     informally by the court on the application of any an interested person when necessary:

(a)     to protect the estate of a decedent prior to the appointment of a general personal representative or if a prior appointment has been terminated as provided in Section 62-3-609; or

(b)     for a creditor of the decedent's estate to institute any proceeding under Section 62-3-803(c);"

SECTION     16.     Section 62-3-719 of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"Section 62-3-719.     (a)     A     Unless otherwise approved by the court for extraordinary services, a personal representative shall receive for his care in the execution of his duties receive a sum from the probate estate funds not to exceed five percent of the appraised value of the personal property of the probate estate plus the sales proceeds of real property of the probate estate received on sales directed or authorized by will or by proper court order, except upon sales to the personal representative as purchaser. The minimum commission payable is fifty dollars and no less, regardless of the value of the personal property of the estate.

(b)     Additionally, a personal representative is entitled to may receive a sum not to exceed more than five percent of the income earned by the probate estate in which he acts as fiduciary. No such additional commission is payable by any an estate if the probate judge determines that a personal representative has acted unreasonably in the accomplishment of the assigned duties, or that unreasonable delay has been encountered.

(c)     The provisions of this section do not apply in any a case where there is a contract providing for the compensation to be paid for such services, or where the will otherwise directs, or where the personal representative qualified to act prior to before June 28, 1984.

(d)     A personal representative also may renounce his right to all or any part of the compensation. A written renunciation of fee may be filed with the court.

(e)     If more than one personal representative is serving an estate, the court in its discretion shall apportion the compensation among the personal representatives, but the total compensation for all personal representatives of an estate must not exceed the maximum compensation allowable under subsections (a) and (b) for an estate with a sole personal representative.

(f)     For purposes of this section, 'probate estate' means the decedent's property passing under the decedent's will plus the decedent's property passing by intestacy. This subsection is intended to be declaratory of the law and governs the compensation of personal representatives currently serving and personal representatives serving at a later time."

SECTION     17.     Section 62-3-914 of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"Section 62-3-914.     (a)     If after the expiration of eight months from the appointment of the personal representative of any a decedent it appears to the satisfaction of the court by whom the appointment was granted that the personal representative of the estate is unable to ascertain the whereabouts of any a person supposed to be entitled to be as heir or devisee of the estate or whether any a person who, if living, would be entitled as heir or devisee of this estate be is dead or not alive, the court may issue a notice addressed to all persons interested in the estate as heirs or devisees calling on the person whose whereabouts or the fact of whose death is unknown, his personal representatives, or heirs or devisees, to appear before the court on a certain day and hour to be as specified in this notice and to show cause why the personal representative should not be ordered to distribute the estate as if the person whose whereabouts or the fact of whose death is unknown had died before the decedent, and notifying all persons entitled to the estate as heir or devisee, or otherwise, to appear on a designated day and time before the court to intervene for their interest in the estate. The day fixed in the notice, on which cause must be shown, must not be less than one month after the date of the first publication of the notice.

(b)     The notice must be published once a week for three successive weeks in a newspaper published in the county in which the court is held. The first publication of the notice must be made within ten days after the date of the notice and the newspaper must be designated by the court. The court has the right, in its discretion, to order the notice to be published once a week for three successive weeks in one other newspaper published in another place most likely to give notice to interested persons.

(c)     The publication of the notice as prescribed in subsection (b) must be proved by filing with the court copies of the newspapers containing the publication of the notice and the affidavit of the publishers or printers of the respective newspapers.

(d)     At the time fixed in the notice for cause to be shown, due proof of publication having been made and filed as required by subsection (c), if no person appears as therein required, the court must decree distribution of the estate to be made as if the person whose whereabouts or the fact of whose death is unknown had died before the decedent. Distribution so made by the personal representative is a full and complete discharge to the personal representative.

(e)     At the time fixed in the notice for cause to be shown, due proof of publication having been made and filed as required by subsection (c), if the person whose whereabouts or the fact of whose death was unknown appears, all further proceedings must be discharged.

(f)     If the identity of the person so appearing is disputed by the personal representative, any an heir or devisee of the decedent or the legal representatives of any an heir or devisee, the court must proceed to hear and determine the controversy. If the controversy is determined against the person so appearing, distribution of the estate must be made as prescribed in subsection (d); but if the controversy be is determined in favor of the party so appearing he is considered to be the person whose whereabouts or the fact of whose death was unknown. The determination in either case, however, is subject to appeal as provided in Section 62-1-308.

(g)     At the expiration of the time fixed in the notice for cause to be shown, due proof of publication having been made and filed as required by subsection (c), if any a person appears claiming to be heir, devisee, or personal representative of the person whose whereabouts or the fact of whose death is unknown or to be otherwise entitled to his estate and claiming a distributive share in the decedent's estate, the court shall proceed to hear and determine whether the person whose whereabouts or the fact of whose death is unknown died before or after the decedent, and if the determination is that the person whose whereabouts or the fact of whose death is unknown died before the decedent, distribution of the decedent's estate must be made accordingly; but if the court determines that the person whose whereabouts or the fact of whose death is unknown died after the death of the decedent, the distributive share of the person must be paid and delivered by the personal representative to the person legally entitled to receive it, the determination in either case, however, to be is subject to appeal as provided in Section 62-1-308.

(h)     Instead of the procedure required in this section, an unclaimed devise of one hundred dollars or less may be paid or transferred by the personal representative to the South Carolina State Treasurer."

SECTION     18.     SECTION 62-3-1001(a)(2) of the 1976 Code, as last amended by Act 143 of 1991, is further amended to read:

"(2)     a proposal for distribution of assets not yet distributed;"

SECTION     19.     Section 62-3-1101 of the 1976 Code is amended to read:

"Section 62-3-1101.     A compromise of any a controversy as to admission to probate of any an instrument offered for formal probate as the will of a decedent, the construction, validity, or effect of any a probated will, the rights or interests in the estate of the decedent, of any a successor, or the administration of the estate, if approved in a formal proceeding in the court for that purpose, is binding on all the parties thereto including those unborn, unascertained, or who could not be located. An approved compromise is binding even though it may affect a trust or an inalienable interest. A compromise does not impair the rights of creditors or of taxing authorities who are not parties to it. A compromise approved pursuant to this section is not a settlement of a claim subject to the provisions of Section 62-5-433."

SECTION     20.     Section 62-5-103 of the 1976 Code, as last amended by Act 521 of 1990, is further amended to read:

"Section 62-5-103.     Any A person under a duty to pay or deliver money or personal property to a minor or incapacitated person may perform this duty in amounts not exceeding ten thousand dollars per annum each year, by paying or delivering the money or property to:

(1)     the minor if he is married;

(2)     any a person having the care and custody of the minor or incapacitated person with whom the minor or incapacitated person resides;

(3)(2)     a guardian of the minor or incapacitated person; or

(4)(3)     a financial institution incident to a deposit in a federally insured savings account in the sole name of the minor or for the minor under the Uniform Gifts to Minors Act and giving notice of the deposit to the minor.

This section does not apply if the person making payment or delivery has actual knowledge that a conservator has been appointed or proceedings for appointment of a conservator of the estate of the minor or incapacitated person are pending. The persons, other than the minor or incapacitated person or any a financial institution under (4) (3) above, receiving money or property for a minor or incapacitated person, are obligated to apply the money to the support and education for the benefit of the minor or incapacitated person with due regard to (i) the size of the estate, the probable duration of the minority or incapacity, and the likelihood that the minor or incapacitated person, at some future time, may be able fully to manage his affairs and his estate; (ii) the accustomed standard of living of the minor or incapacitated person and members of his household; and (iii) other funds or sources used for the support of the minor or incapacitated person, but may not pay themselves except by way of reimbursement for out-of-pocket expenses for goods and services necessary for the minor's or incapacitated person's support. Money or other property received on behalf of a minor or incapacitated person may not be used by a person to discharge a legal or customary obligation of support that may exist between that person and the minor or incapacitated person. Any Excess sums must be preserved for future support benefit of the minor or incapacitated person, and any a balance not so used and any property received for the minor or incapacitated person must be turned over to the minor when he attains majority or to the incapacitated person when he is no longer incapacitated. Persons who pay or deliver in accordance with provisions of this section are not responsible for the proper application thereof of it."

SECTION     21.     Section 62-5-104 of the 1976 Code, as last amended by Act 65 of 1987, is further amended to read:

"Section 62-5-104.     A guardian of an incapacitated person, by a properly executed power of attorney, may delegate to another person, for a period not exceeding six months more than thirty days, any of his powers regarding care and custody of the incapacitated person."

SECTION     22.     Section 62-5-310(D) of the 1976 Code, as last amended by Act 483 of 1990, is further amended to read:

"(D)     If a temporary guardian is appointed without notice under this section, notice and a hearing to review the appointment must be held after notice and within fourteen thirty days after the appointment of the temporary guardian."

SECTION     23.     Section 62-5-405(a) of the 1976 Code is amended to read:

"(a)     On a petition for appointment of a conservator or other protective order, the person to be protected and his spouse and his adult children or, if none, his parents or nearest adult relatives if there be no parents, must be served personally with notice of the proceeding at least twenty days before the date of hearing. The spouse and the adult children of the person to be protected, or if none, his parents or nearest adult relatives if there are no parents, must be given notice of the proceeding at least twenty days before the hearing if they can be found within the State, or, if they cannot be found within the State, they must be given notice in accordance with Section 62-1-401. Waiver by the person to be protected is not effective unless he attends the hearing or waiver of notice is given by his attorney."

SECTION     24.     Section 62-5-424 of the 1976 Code, as last amended by Act 659 of 1988, is further amended to read:

"Section 62-5-424.     (a)     A conservator has all of the powers conferred herein and any additional powers conferred by law on trustees in this State.

(b)(A)     A conservator has power without court authorization or confirmation to invest and reinvest funds of the estate as would a trustee.

(c)(B)     A conservator, acting reasonably in efforts to accomplish the purpose for which he was appointed, may act without court authorization or confirmation, to:

(1)     collect, hold, and retain assets of the estate including land in another state, until, in his judgment, disposition of the assets should be made, and the assets may be retained even though they include an asset in which he is personally is interested;

(2)     receive additions to the estate;

(3)     invest and reinvest estate assets in accordance with subsection (b) (A);

(4)     deposit estate funds in a bank including a bank operated by the conservator;

(5)     make ordinary or extraordinary repairs or alterations in buildings or other structures, to demolish any improvement, to raze existing or erect new party-walls or buildings;

(6)     vote a security, in person or by general or limited proxy;

(7)     pay calls, assessments, and any other sums chargeable or accruing against or on account of securities;

(8)     sell or exercise stock subscription or conversion rights; to consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise whose stock or shares are publicly held;

(9)     hold a security in the name of a nominee or in other form without disclosure of the conservatorship so that title to the security may pass by delivery, but the conservator is liable for any an act of the nominee in connection with the stock so held;

(10)     insure the assets of the estate against damage or loss, and the conservator against liability with respect to third persons;

(11)     borrow money to be repaid from estate assets or otherwise; to advance money for the protection of the estate or the protected person, and for all expenses, losses, and liability sustained in the administration of the estate or because of the holding or ownership of any estate assets and the conservator has a lien on the estate as against the protected person for advances so made;

(12)     pay or contest any a claim except as limited by Section 62-5-433; to settle a claim by or against the estate of the protected person by compromise, arbitration, or otherwise except as limited by Section 62-5-433; and to release, in whole or in part, any a claim belonging to the estate to the extent that the claim is uncollectible.

(13)     pay taxes, assessments, and other expenses incurred in the collection, care, administration, and protection of the estate;

(14)     allocate items of income or expense to either estate income or principal, as provided by law, including creation of reserves out of income for depreciation, obsolescence, or amortization, or for depletion in mineral or timber properties;

(15)     pay any a sum distributable to a protected person or his dependent without liability to the conservator, by paying the sum to the distributee or by paying the sum for the use of the distributee either to his guardian or if none, to a relative or other person with custody of his person;

(16)     employ persons, including attorneys, auditors, investment advisors, or agents even though they are associated with the conservator to advise or assist him in the performance of his administrative duties; to act upon their recommendation without independent investigation; and instead of acting personally, to employ one or more agents to perform any an act of administration, whether or not discretionary;

(17)     prosecute or defend actions, claims, or proceedings in any jurisdiction for the protection of estate assets and of the conservator in the performance of his duties; and

(18)     execute and deliver all instruments which will accomplish or facilitate the exercise of the powers vested in the conservator.

(d)(C)     A conservator acting reasonably in efforts to accomplish the purpose for which he was appointed may act with court approval to:

(1)     continue or participate in the operation of any unincorporated business or other enterprise;

(2)     acquire an undivided interest in an estate asset in which the conservator, in any a fiduciary capacity, holds an undivided interest;

(3)     acquire or dispose of an estate asset including land in another state for cash or on credit, at public or private sale; and to manage, develop, improve, exchange, partition, change the character of, or abandon an estate asset;

(4)     subdivide, develop, or dedicate land to public use; to make or obtain the vacation of plats and adjust boundaries; to adjust differences in valuation on exchange or to partition by giving or receiving considerations; and to dedicate easements to public use without consideration;

(5)     enter for any purpose into a lease as lessor or lessee with or without option to purchase or renew for a term within or extending beyond the term of the conservatorship;

(6)     enter into a lease or arrangement for exploration and removal of minerals or other natural resources or enter into a pooling or unitization agreement;

(7)     grant an option involving disposition of an estate asset, to take an option for the acquisition of any asset;

(8)     undertake any other another act deemed considered necessary or reasonable by the conservator and the court for the preservation and management of the estate;

(9)     make gifts to charitable organizations and for other religious, charitable, eleemosynary, or educational purposes which are tax deductible as the protected person might have been expected to make, in amounts which do not exceed in total for any year twenty percent of the income from the estate, if and only if the estate is ample to provide for the purposes implicit in the distributions authorized by Section 62-5-425.;

(10)     encumber, mortgage, or pledge an asset for a term extending within or beyond the term of the conservatorship."

SECTION     25.     Section 62-5-425(b) of the 1976 Code is amended to read:

"(b)     When a minor who has not been adjudged disabled under Section 62-5-401(2) attains his majority or is emancipated, his conservator, after meeting all prior claims and expenses of administration, shall pay over and distribute all funds and properties to the former protected person as soon as possible. An individual under the age of eighteen who is also married shall remain a minor for purposes of this subsection until attaining majority or emancipation."

SECTION     26.     Section 62-5-428(a) of the 1976 Code is amended to read:

"(a)     A conservator must pay from the estate all just claims against the estate and against the protected person arising before or after the conservatorship upon their presentation and allowance. A claim may be presented by either of the following methods:

(1)     the claimant may deliver or mail to the conservator a written statement of the claim indicating its basis, the name and address of the claimant, and the amount claimed;

(2)     the claimant may file a written statement of the claim, in the form prescribed by rule, with the clerk of court and deliver or mail a copy of the statement to the conservator.

A claim is deemed considered presented on the first to occur of receipt of the written statement of claim by the conservator or the filing of the claim with the court. Failure of the conservator to mail notice to a claimant of action on his claim for sixty days after the time for original presentation of the claim has expired has the effect of a notice of disallowance. Every claim which is disallowed in whole or part by the conservator is barred so far as not allowed unless the claimant files a petition for allowance in the court or commences a proceeding against the conservator not later than thirty days after the mailing of the notice of disallowance or partial disallowance if the notice warns the claimant of the impending bar. The presentation of a claim tolls any statute of limitation relating to the claim until thirty days after its disallowance."

SECTION     27.     Section 62-5-501 of the 1976 Code, as last amended by Act 306 of 1992, is further amended to read:

"Section 62-5-501.     (A)     Whenever a principal designates another his attorney in fact by a power of attorney in writing and the writing contains (1) the words 'This power of attorney is not affected by physical disability or mental incompetence of the principal which renders the principal incapable of managing his own estate', (2) the words 'This power of attorney becomes effective upon the physical disability or mental incompetence of the principal', or (3) similar words showing the intent of the principal that the authority conferred is exercisable notwithstanding his physical disability or mental incompetence or either physical disability or mental incompetence, the authority of the attorney in fact is exercisable by him as provided in the power on behalf of the principal notwithstanding later physical disability or mental incompetence of the principal or later uncertainty as to whether the principal is dead or alive. The power may define 'physical disability' or 'mental incompetence' and may set forth the procedures for determining whether the principal is physically disabled or mentally incompetent. If no definition of mental incompetence or procedures for determining mental incompetence are set forth, and the authority of the attorney in fact relates solely to health care, mental incompetence is to be determined according to the standards and procedures for inability to consent under Section 44-66-20(6) of the Adult Health Care Consent Act. The authority of the attorney in fact to act on behalf of the principal must be set forth in the power and may relate to any act, power, duty, right, or obligation which the principal has or may acquire relating to the principal or any matter, transaction, or property, including the power to consent or withhold consent on behalf of the principal to health care. The attorney in fact has a fiduciary relationship with the principal and is accountable and responsible as a fiduciary. All acts done by the attorney in fact pursuant to the power during a period of physical disability or mental incompetence or uncertainty as to whether the principal is dead or alive have the same effect and inure to the benefit of and bind the principal or his heirs, devisees, legatees, and personal representative as if the principal were alive, mentally competent, and not disabled physically.

(B)     An instrument to which this section is applicable also may provide for successor attorneys in fact and provide conditions for their succession, which may include an authorization for the court to appoint a successor, and the succession may occur whether or not the principal then is physically disabled or mentally incompetent. The appointment of an attorney in fact under this section does not prevent a person or his representative from applying to the court and having a guardian or conservator appointed. Unless the power of attorney provides otherwise, appointment of a guardian terminates all or part of the power of attorney that relates to matters within the scope of the guardianship, and appointment of a conservator terminates all or part of the power of attorney that relates to matters within the scope of the conservatorship.

(C)     A power of attorney executed under the provisions of this section must be executed and attested with the same formality and with the same requirements as to witnesses as a will. In addition, the instrument must be recorded in the same manner as a deed in the county where the principal resides at the time the instrument is recorded. After the instrument has been recorded, whether recorded before or after the onset of the principal's physical disability or mental incompetence, it is effective notwithstanding the mental incompetence or physical disability. If the authority of the attorney in fact relates solely to the person of the principal, the instrument is effective without being recorded.

(D)     The court, in its discretion, and at any time after the onset of physical disability or mental incompetence, on motion of an interested party or on its own motion, may require that an inventory of all deposits, choses in action, and personal property must be filed with the court, and a surety bond must be posted by the attorney in fact in the manner and amount applicable to a protected person's estate.

(E)     A power of attorney as provided for under this section is valid if:

(1)     executed in compliance with this section; or

(2)     its execution complies with the law at the time of execution of the jurisdiction where the instrument was executed and it is recorded as required by subsection (C). Notwithstanding the provisions of Section 30-5-30, a valid power of attorney as provided for under this section which is executed in another jurisdiction may be recorded as though it complies with the provisions of subsection (C) of this section.

(F)(E)     A properly executed durable power of attorney that authorizes an attorney in fact to make health care decisions or other decisions regarding the principal is valid whether or not it was executed after May 14, 1990."

SECTION     28.     Section 62-7-705 of the 1976 Code, as added by Act 521 of 1990, is amended to read:

"Section 62-7-705.     Unless otherwise provided in the trust instrument, while continuing to act as a trustee, the trustee may not transfer his office to another or delegate the entire administration of the trust to a co-trustee or another. The trustee may resign upon approval of the court if:

(1)     the document so provides;

(2)     all beneficiaries consent; or

(3)     the court approves the resignation.

A beneficiary may consent if the beneficiary is not a minor or incapacitated person or the resignation is consented to by the representative of the minor or incapacitated person as described in Section 61-1-403(1) and (2)."

SECTION     29.     Section 20-1-550 of the 1976 Code is amended to read:

"Section 20-1-550.     When any a marriage has been contracted or solemnized in this State and any an action is brought under Sections 20-1-80, 20-1-510, and 20-1-530 seeking to annul such marriage it, the plaintiff may shall serve his complaint on the probate judge or other officer before whom the application for marriage license was made when the defendant is a nonresident of this State or has left the State and it is made to appear by the affidavit of one of the parties to the action that such defendant is a nonresident or cannot be found in this State. The probate judge or such other officer shall forward to the last address of the nonresident or absent defendant, as it appears from the application filed before him or from the affidavit of one of the parties, and such service shall be legal and complete from the time the complaint is so served upon the probate judge or other officer mentioned. If there is no last-known address, either from an examination of the application for the marriage license or from any other source, the defendant shall be served defendant by publication as provided in Sections 15-9-710 and 15-9-740. When such service is sought upon the probate judge or other officer before whom the application for a marriage license was made, a fee of one dollar shall be paid to the probate judge for service and the probate judge shall provide a book in which to keep a record of such service, the acceptance of which will be made upon the back of the original summons. The original summons shall must be filed in the office of the clerk of court of the county in which the action is pending, the probate judge keeping one of the copies of the summons and complaint in his office and forwarding the other to the nonresident or absent party.

Service by publication as provided in Sections 15-9-710 and 15-9-740 shall also be is available to a plaintiff in any such an action for annulment whose marriage was contracted or solemnized outside of this State when such the plaintiff was a resident of this State at the time of the marriage or has been a resident of this State for at least one year prior to the commencement of the action."

SECTION     30.     Section 20-7-150(4) and (11) of the 1976 Code are amended to read:

"(4) 'Court' means the circuit court or branch having jurisdiction.

(11) 'Minor' is a person who has not attained the age of eighteen years, excluding a person under the age of eighteen who is married or emancipated as decreed by the family court."

SECTION     31.     Section 14-23-650 of the 1976 Code is repealed.

SECTION     32.     This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend totals and title to conform.

Rep. YOUNG explained the amendment.

The amendment was then adopted.

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

S. 456--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

S. 456 -- Senators Wilson and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-1795 SO AS TO PROVIDE THAT IN THE CASE OF DOMESTICATING THE FOREIGN ADOPTION OF A FOREIGN CHILD, THE COURT SHALL TRANSMIT THE CERTIFICATE OF ADOPTION TO THE STATE REGISTRAR WITHOUT THE NECESSITY OF A HEARING UNLESS THE COURT FINDS THE REQUIRED DOCUMENTATION UNSATISFACTORY; AND TO REQUIRE COURT ADMINISTRATION IN CONSULTATION WITH THE DEPARTMENT OF SOCIAL SERVICES TO PREPARE AND MAKE AVAILABLE ADOPTION FORMS AND GUIDELINES FOR OBTAINING THE DOMESTICATION OF A FOREIGN ADOPTION.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\KGH\15254AC.97), which was adopted.

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

/SECTION     1.     The 1976 Code is amended by adding:

"Section 20-7-1795.     (A)     Notwithstanding the provisions of Section 20-7-1790(A) and (B), in the case of a child born in a foreign country who was not a United States citizen at birth and whose adoption was finalized in a foreign country, the court shall review the documentation as required by this section and, if it finds the documentation to be satisfactory, shall issue an order stating that the documentation required by this section has been submitted and is satisfactory and that the foreign adoption must be recognized and domesticated in South Carolina. The court shall transmit the order and the certificate of adoption to the State Registrar of Vital Statistics without the necessity of a hearing unless the court finds the documentation submitted pursuant to subsection (B) is unsatisfactory and such finding is stated in the order resulting from the hearing.

(B)     Documentation required to be submitted to the court includes, but is not limited to:

(1)     a verified petition seeking domestication of the foreign adoption;

(2)     a post foreign adoption home study completed by a person certified pursuant to Section 20-7-1750 which evaluates the adjustment and progress of the child and family since adoption;

(3)     naturalization papers, if available;

(4)     other documentation as the court may request as stated in materials developed pursuant to subsection (C).

(C)     Court Administration in consultation with the Department of Health and Environmental Control shall develop petition forms, including documentation required to be filed with the petition, and guidelines for obtaining the domestication of a foreign adoption. These forms and guidelines must be available to the public upon request at all county clerks of court offices and at Department of Health and Environmental Control offices.

(D)     The state registrar, upon receipt of the order and certificate of adoption shall take action as provided in Section 44-63-140 with respect to the issuance and filing of an amended certificate of birth."

SECTION     2.     Section 44-63-140 of the 1976 Code, as last amended by Act 341 of 1988, is further amended by adding at the end:

"(5)     When adoption is decreed in a foreign country of a person born in that country and the procedures set forth in Section 20-7-1795 are followed, upon receipt of the court order with its findings and the certificate of adoption, the state registrar shall prepare a 'Certificate of Foreign Birth'. The certificate, and any issued copy of the certificate, must be labeled 'Certificate of Foreign Birth' and must state the actual country of birth. A statement also must be included on the certificate, and any issued copy of the certificate, that it is not evidence of United States' citizenship for the person for whom it is issued."

SECTION     3.     This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Rep. YOUNG explained the amendment.

The amendment was then adopted.

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

S. 634--DEBATE ADJOURNED

Rep. SHEHEEN moved to adjourn debate upon the following Bill until Wednesday, May 21, which was adopted.

S. 634 -- Senators Thomas and Holland: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 20-7-6890, 20-7-6895, 20-7-6900, AND 20-7-6905, SO AS TO ESTABLISH THE YOUTH INDUSTRIES PROGRAM WITHIN THE DEPARTMENT OF JUVENILE JUSTICE AUTHORIZING THE DEPARTMENT TO CONTRACT WITH PRIVATE INDUSTRIES TO PROVIDE SERVICES RELATIVE TO PACKAGING, MANUFACTURING, AND PROCESSING GOODS AND TO ESTABLISH THE MANUFACTURING AND PROCESSING OF GOODS FOR STATE ENTITIES AND TO MAKE IT UNLAWFUL IN THIS STATE TO SELL GOODS MADE BY JUVENILE OFFENDERS AND TO PROVIDE EXCEPTIONS; TO AMEND SECTION 20-7-7815, RELATING TO THE PROHIBITION AGAINST COMMITTING TO THE DEPARTMENT OF JUVENILE JUSTICE A PERSON WHO IS SERIOUSLY HANDICAPPED BY MENTAL ILLNESS OR MENTAL RETARDATION, SO AS TO CHANGE THE REFERENCE FROM "PERSON" TO "JUVENILE" AND TO REQUIRE THE CONSENT OF THE JUVENILE PAROLE BOARD WHEN AN AGENCY TO WHICH A JUVENILE HAS BEEN COMMITTED SEEKS TO RELEASE THE CHILD; TO AMEND SECTION 20-7-8305, RELATING TO THE BOARD OF JUVENILE PAROLE, SO AS TO DELETE THE PROVISION THAT A JUVENILE HAS THE RIGHT TO APPEAR PERSONALLY BEFORE THE BOARD EVERY THREE MONTHS AND INSTEAD AUTHORIZE THE BOARD TO CONDUCT PAROLE HEARINGS BY TWO-WAY CLOSED CIRCUIT TELEVISION.

H. 3874--REQUESTS FOR DEBATE

The following Bill was taken up.

H. 3874 -- Reps. Campsen, Young and Woodrum: A BILL TO AMEND SECTION 16-11-620, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRIMINAL PENALTIES FOR TRESPASS AGAINST REAL PROPERTY, AND SECTION 15-67-610, RELATING TO CIVIL REMEDIES FOR TRESPASS AGAINST REAL PROPERTY, SO AS TO EXEMPT THE OWNER OR LESSEE OF CERTAIN LAND FROM CRIMINAL AND CIVIL LIABILITY WHEN HIS ENTRY ONTO ANOTHER'S LAND IS NECESSARY FOR IMPROVEMENTS, REPAIRS, OR MAINTENANCE, UNDER CERTAIN CIRCUMSTANCES.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\BBM\9168DW.97).

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

/SECTION     1.     The 1976 Code is amended by adding:

"Section 15-67-270.     (A)     When an owner or lessee of real property seeks to improve, repair, or maintain his property, and the property is so situated that the improvements, repairs, or maintenance cannot be accomplished without entering the premises of an adjoining property owner, and permission to enter the adjoining property has been denied, or unreasonable conditions have been placed upon the entry, the owner or lessee seeking to make the improvements, repairs, or maintenance may petition the circuit court for a license to enter the adjoining property.

(B)     The petition may not be filed until after a good faith effort to obtain permission to enter the adjoining property has been made. A good faith effort to obtain permission for entry is deemed to have been made if the request describes the nature and manner of the requested improvements, repairs, or maintenance, solicits specific dates for entry, and

(1)     the petitioner can present evidence of an actual request and denial of entry, or the imposition of unreasonable conditions upon entry; or

(2)     if the petitioner requests entry in writing by certified mail, return receipt requested, to the owner of record according to the tax records for the county in which the adjoining property is located, a period of forty-five days has expired since the written requests for entry was made, and the adjoining property owner has not responded to the request in writing. The court may waive the forty-five day period if service upon the owner of record has been accomplished and if the court finds the petitioner's property will suffer irreparable waste from imposition of the forty-five day period.

(C)     The petition must be accompanied by affidavits or other evidence setting forth the circumstances which make the entry necessary, the dates the entry is desired, and a description of the improvements, repairs, or maintenance which will be accomplished.

(D)     After an evidentiary hearing based upon a motion for immediate relief, the petition for license may be granted if the court finds that the grant of the license will not be an unreasonable infringement upon the adjoining property, and that the license is reasonably necessary for the improvement or preservation of the petitioner's property. If the court grants the license, it shall specify:

(1)     the nature of the improvements, repairs, or maintenance to be accomplished;

(2)     the manner in which the improvements, repairs, or maintenance will be accomplished;

(3)     the dates upon which the license begins and ends; and

(4)     any other terms and conditions the court deems appropriate to minimize disruption to the adjoining owner or lessee's use and enjoyment of his property.

(E)     Once the authorized improvements, repairs, or maintenance are commenced, they shall proceed expeditiously. The license shall terminate upon the earlier of the completion of the improvements, repairs, or maintenance set forth in the license, or the expiration of the license. The licensee shall in all respects restore the adjoining land to its condition prior to entry, and is liable for actual damages occurring as a result of the entry including, but not limited to, physical damage to the adjoining property and loss of revenue.

(F)     The court may require that an appropriate bond or other security be posted by the licensee, or that the licensee provide adequate liability and workers' compensation insurance to indemnify the adjoining property owner and lessee against claims arising from the work authorized by the license."

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

Amend title to read:

/TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-67-270 SO AS TO PROVIDE FOR A COURT-ORDERED LICENSE TO ENTER REAL PROPERTY TO EFFECT REPAIRS, MAINTENANCE, OR IMPROVEMENTS UPON A SHOWING OF REASONABLENESS, TO REQUIRE A GOOD FAITH EFFORT TO OBTAIN THE LANDOWNER'S CONSENT BEFORE PETITIONING THE COURT FOR LICENSE TO ENTER, TO DEFINE "GOOD FAITH EFFORT", AND TO SPECIFY LIMITATIONS ON THE SCOPE AND DURATION OF A COURT-ORDERED LICENSE./

Rep. CAMPSEN explained the amendment.

Reps. SHEHEEN, F. SMITH, SCOTT, NEAL, COBB-HUNTER, MOODY-LAWRENCE, J. SMITH, CAMPSEN, HARRELL, LOFTIS, LIMEHOUSE, EASTERDAY, HAMILTON, LEACH, R. SMITH, LAW and YOUNG requested debate on the Bill.

S. 452--AMENDED AND POINT OF ORDER

The following Bill was taken up.

S. 452 -- Senator McConnell: A BILL TO AMEND SECTION 38-11-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, INVESTMENTS AND THE DEFINITION OF "POLICYHOLDER OBLIGATIONS", SO AS TO DELETE THE REFERENCE TO "MANDATORY SECURITIES VALUATION RESERVE" AND SUBSTITUTE THEREFOR "ASSET VALUATION RESERVE"; TO AMEND SECTION 38-13-300, AS AMENDED, RELATING TO INSURANCE, EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS, REPORTS OF LOSS AND EXPENSE EXPERIENCE BY INSURERS, AND CERTAIN REGULATIONS, SO AS TO, AMONG OTHER THINGS, DELETE THE REQUIREMENT UPON THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO PROMULGATE THESE REGULATIONS, AUTHORIZE, RATHER THAN REQUIRE, THE DIRECTOR TO HAVE CERTAIN INSURERS RECORD AND REPORT LOSS AND EXPENSE EXPERIENCE AND CERTAIN OTHER DATA, AND ALLOW THE DIRECTOR TO HAVE CERTAIN INSURERS SUBMIT A REPORT SHOWING DIRECT WRITINGS AND CERTAIN OTHER INFORMATION, RATHER THAN REQUIRING THE INSURERS TO DO THIS; TO AMEND SECTION 38-13-310, RELATING TO INSURANCE, EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS, REPORTS OF LOSS AND EXPENSE EXPERIENCE BY INSURERS, AND THE SUPPLEMENTAL REPORT REQUIRED BY SECTION 38-13-300, SO AS TO PERMIT, RATHER THAN REQUIRE, THAT THE SUPPLEMENTAL REPORT INCLUDE CERTAIN SPECIFIED TYPES OF INSURANCE WRITTEN BY THE INSURER; TO AMEND SECTION 38-13-320, AS AMENDED, RELATING TO INSURANCE, EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS, REPORTS OF LOSS AND EXPENSE EXPERIENCE BY INSURERS, AND THE DATA IN THE SUPPLEMENTAL REPORT, SO AS TO, AMONG OTHER THINGS, PERMIT, RATHER THAN REQUIRE, THAT THE SUPPLEMENTAL REPORT INCLUDE CERTAIN SPECIFIED DATA BOTH AS TO SOUTH CAROLINA AND THE UNITED STATES FOR THE PREVIOUS YEAR ENDING ON DECEMBER THIRTY-FIRST; TO AMEND SECTION 38-13-340, AS AMENDED, RELATING TO INSURANCE, EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS, REPORTS OF LOSS AND EXPENSE EXPERIENCE BY INSURERS, AND REVIEW OF THE SUPPLEMENTAL REPORTS, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT THE INSURANCE DEPARTMENT'S ANNUAL COMPILATION AND REVIEW OF REPORTS SUBMITTED BY INSURERS BE IN ACCORDANCE WITH OR PURSUANT TO AN ORDER OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 38-19-50, AS AMENDED, RELATING TO DOMESTIC MUTUAL INSURERS, MEMBERS AND MEETINGS, AND USE OF PROXIES, SO AS TO PROVIDE THAT NO PROXY MAY BE USED BY A DOMESTIC MUTUAL INSURER UNLESS THE LANGUAGE AND FORM OF THE PROXY HAVE BEEN APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE, AND DELETE THE FIVE CONDITIONS SPECIFIED FOR THE USE OF THE PROXY; TO AMEND SECTION 38-33-30, AS AMENDED, RELATING TO THE INSURANCE LAWS, HEALTH MAINTENANCE ORGANIZATIONS, THE NECESSITY OF A CERTIFICATE OF AUTHORITY, AND FOREIGN CORPORATIONS, SO AS TO DELETE THE REQUIREMENT THAT EACH APPLICATION FOR A CERTIFICATE OF AUTHORITY BE FILED "IN TRIPLICATE"; TO AMEND SECTION 38-73-1060, AS AMENDED, RELATING TO THE INSURANCE LAWS, RATES, RATE-MAKING, AND RATE-FILING, AND STATUTORY PERMISSION TO USE RATES IN EXCESS OF THOSE WHICH ARE FILED, SO AS TO DELETE THE TERM "RATE IN EXCESS OF THAT PROVIDED BY A FILING OTHERWISE APPLICABLE" AND SUBSTITUTE THEREFOR "RATE DIFFERENT FROM THAT PROVIDED BY A FILING OTHERWISE APPLICABLE", AND ADD PROVISIONS WHICH PROVIDE THAT, UPON THE WRITTEN APPLICATION OF AN INSURED HAVING AGGREGATE INSURANCE PREMIUMS, OTHER THAN LIFE, ACCIDENT, AND HEALTH, IN EXCESS OF ONE HUNDRED THOUSAND DOLLARS, A POLICY FORM DIFFERENT FROM THAT PROVIDED BY A FILING OTHERWISE APPLICABLE MAY BE USED ON ANY SPECIFIC RISK, UNDER CERTAIN CONDITIONS; AND TO REPEAL SECTIONS 38-13-330 AND 38-13-370, RELATING TO INSURANCE, EXAMINATIONS, INVESTIGATIONS, RECORDS, AND REPORTS, REPORTS OF LOSS AND EXPENSE EXPERIENCE BY INSURERS, THE REQUIREMENT THAT, FOR THE FIRST YEAR ONLY IN WHICH THE INSURER IS REQUIRED TO FILE THE SUPPLEMENTAL REPORT, THE DATA REQUIRED BY CERTAIN ITEMS OF SECTION 38-13-320 SHALL INCLUDE THE PREVIOUS CALENDAR YEAR AND EACH OF THE PRECEDING TWO CALENDAR YEARS, AND THE REQUIREMENT THAT FIRST REPORTS REQUIRED UNDER SECTIONS 38-13-300 THROUGH 38-13-360 MUST BE FILED ON JULY 1, 1988, AND ON JULY FIRST OF EACH FOLLOWING YEAR.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\KGH\15255CM.97), which was adopted.

Amend the bill, as and if amended, by adding the following appropriately numbered SECTIONS to read:

/SECTION     _____.     Section 38-19-30 of the 1976 Code is amended to read:

"Section 38-19-30.     A domestic mutual insurer is owned by and must be operated in the interest of its members. Each member is entitled to one vote in the election of directors and on matters coming before corporate meetings of members, subject to reasonable minimum requirements as to duration of membership and amount of insurance held as may be made in the insurer's bylaws. With respect to the management, records, and affairs of the insurer a member has the same character of rights and relationship as a stockholder has toward a domestic stock insurer.     (A)     Except as otherwise provided by law, every domestic mutual insurer must be organized, governed, and operated as a domestic business corporation under and in accordance with the South Carolina Business Corporation Act of 1988, (the 'Business Corporation Act'). Without limiting the generality of the foregoing, the provisions of the Business Corporation Act concerning the rights and duties of a stock corporation and its shareholders in respect of one another shall apply to a domestic mutual insurer and its members as if the insurer were a stock corporation and its members were shareholders therein.

(B)     Notwithstanding subsection (A), as to any domestic mutual insurer existing on the effective date of this subsection and organized prior to that date under any South Carolina statute other than the Business Corporation Act, such domestic mutual insurer shall continue to be organized under such statute, and the Business Corporation Act applies to the governance and operation of that domestic mutual insurer only to the extent the Business Corporation Act does not conflict with the statute under which that domestic mutual insurer was organized or with any other insurance law of this State.

(C)     A corporation organized under Chapter 13 or Chapter 14 of Title 37 of the South Carolina Code of Laws (1962), or any predecessor statutes, and subsequently licensed as a domestic mutual insurer under the laws of this State, as of the date of the licensure and for all purposes, must be deemed to have been reconstituted as a domestic mutual insurer under the insurance laws of this State as then in effect and rechartered as a domestic business corporation under the business corporation law then in effect."

SECTION     _____.     Section 38-27-490(b) of the 1976 Code is amended to read:

"(b)     No setoff or counterclaim is allowed in favor of any person where:

(1)     the obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer;

(2)     the obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff; or

(3)     the obligation of the person is to pay an assessment levied against the members or subscribers of the insurer or is to pay a balance upon a subscription to the capital stock of the insurer or is in any other way in the nature of a capital contribution; or.

(4)     the obligation of the person is to pay premiums whether earned or unearned to the insurer."

SECTION     _____.     Section 38-57-160 of the 1976 Code is amended to read:

"Sections 38-57-130, 38-57-140, and 38-57-150 do not prohibit a licensed agent from giving to insureds, prospective insureds, and to others, for the purpose of advertising, any article of merchandise having a value of not more than five dollars and having an advertisement for the insurer or agent printed on it. Nothing within this section precludes any licensed agent from providing refreshments during a sales presentation which do not exceed ten dollars a person in cost."/

Renumber sections to conform.

Amend title to conform.

Rep. SEITHEL explained the amendment.

The amendment was then adopted.

LEAVE OF ABSENCE

The SPEAKER granted Rep. J. HINES a leave of absence.

Rep. INABINETT proposed the following Amendment No. 2 (Doc Name P:\AMEND\DKA\4626JM.97), which was ruled out of order.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION __.     The 1976 Code is amended by adding:

"Section 38-71-125.     Notwithstanding any other provision of law, an insurer doing business in this State under the provisions of this chapter, when honoring the claims or the billing of any principal or primary provider of services to the insured, also shall honor the legitimate claims and billings of any subcontractor-provider of any independent contractor-provider of the principal provider of services."/

Renumber sections to conform.

Amend title to conform.

Rep. INABINETT explained the amendment.

POINT OF ORDER

Rep. TRIPP raised a Point of Order that Amendment No. 2 was not germane to the Bill.

Rep. INABINETT argued contra.

SPEAKER WILKINS sustained the Point of Order and ruled the amendment out of order.

POINT OF ORDER

Rep. KNOTTS made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.

The SPEAKER sustained the Point of Order.

H. 3792--POINT OF ORDER

The following Bill was taken up.

H. 3792 -- Reps. Cato and Walker: A BILL TO AMEND SECTION 38-73-540, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, CASUALTY AND SURETY RATES, AND ASSIGNED RISKS, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT INSURERS THAT PARTICIPATE IN THE VOLUNTARY MARKET SHALL PARTICIPATE IN CERTAIN MECHANISMS PROVIDED FOR IN THIS SECTION AND SHALL PAY THEIR ASSESSMENTS, IF ANY.

POINT OF ORDER

Rep. KNOTTS made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.

The SPEAKER sustained the Point of Order.

H. 4082--POINT OF ORDER

The following Bill was taken up.

H. 4082 -- Reps. Easterday, Altman, Limbaugh, Robinson, G. Brown, Campsen, Wilder, Bauer, Limehouse, Haskins, Maddox, Kelley, Knotts, Rice, Walker, Sharpe, Loftis, Sandifer, Davenport, Hinson, Simrill, Rodgers, Woodrum, J. Smith, Hamilton, Beck, R. Smith, Seithel, Allison, Wilkins, McCraw, Leach, Harrell, Klauber, Riser, Barrett, Mullen, Young, Law, Webb, D. Smith, H. Brown, Harrison, Dantzler, Littlejohn, Keegan, Kinon, Phillips, Witherspoon, T. Brown, Townsend, Vaughn, McMahand, Meacham, Kirsh, Whatley, Boan, McLeod, Breeland, Jennings, Cato, Hawkins, Miller, Battle, Stoddard, F. Smith, Mack, Stille, Barfield, Howard, Hodges, Lanford, Jordan, Harvin and Felder: A BILL TO AMEND TITLE 58, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LAW ENFORCEMENT DEPARTMENT OF THE PUBLIC SERVICE COMMISSION, BY ADDING SECTION 58-3-380 SO AS TO PROHIBIT THE UNAUTHORIZED CHANGE OF A CUSTOMER'S UTILITY SERVICE PROVIDER AND TO ESTABLISH PENALTIES.

RULE 5.12 WAIVED

Rule 5.12 was waived by a division vote of 43 to 2.

POINT OF ORDER

Rep. BAUER made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.

The SPEAKER sustained the Point of Order.

H. 3690--REQUESTS FOR DEBATE WITHDRAWN

Reps. MOODY-LAWRENCE, SCOTT, NEAL and COBB- HUNTER, with unanimous consent, withdrew their requests for debate on the following Bill.

H. 3690 -- Rep. Askins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 47-3-640 SO AS TO PROVIDE THAT CANINES CERTIFIED TO WORK WITH LAW ENFORCEMENT OFFICERS OR FIRE SERVICE PERSONNEL FOR THE PURPOSE OF FIRE INVESTIGATIONS, TRAINING, OR OTHER RELATED MATTERS MUST BE PERMITTED TO STAY OVERNIGHT WITH THESE OFFICIALS WHEN THEY ARE STAYING IN A PLACE OF PUBLIC ACCOMMODATIONS ON OFFICIAL BUSINESS AND TO PROVIDE CIVIL PENALTIES FOR VIOLATIONS.

OBJECTION TO RECALL

Rep. KLAUBER asked unanimous consent to recall S. 281 from the Committee on Judiciary.

Rep. COBB-HUNTER objected.

H. 3694--SENATE AMENDMENTS AMENDED AND
RETURNED TO THE SENATE

The Senate amendments to the following Bill were taken up for consideration.

H. 3694 -- Ways and Means Committee: A BILL TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED BY THIS ACT.

Rep. H. BROWN proposed the following Amendment No. 1A (Doc Name P:\AMEND\GJK\20731AC.97), which was adopted.

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

/SECTION     1.     Item (f) of Section 3 of Act 1377 of 1968, as last amended by Section 5, Act 531 of 1994, is further amended by adding:

"1.     Higher Education Institutions

(a)     Chesterfield-Marlboro Technical College-

Instructional/Library     3,750,000

(b)     The Citadel-

Thompson Hall Replacement     6,282,000

(c)     Clemson University-

Central Energy Facility     10,000,000

(d)     Coastal Carolina-Humanities Building     11,775,000

(e)     College of Charleston-New Library     12,000,000

(f)     Francis Marion University-

Energy Facility Upgrade     875,250

(g)     Florence-Darlington Technical College-

Renovation/Parking Facility     5,700,000

(h)     Greenville Technical College-

Renovation of the Engineering/Technology

Building     5,225,000

(i)     Horry-Georgetown Technical College-

Conway Campus-Library/Support

Services Building     3,250,000

(j)     Horry-Georgetown Technical College-

Georgetown Campus Redesign     750,000

(k)     Midlands Technical College-

Phase II Classroom Building-Airport Campus     9,000,000

(l)     Medical University of South Carolina-

Deferred Maintenance     8,752,086

(m)     Lander University-Renovation of

Barratt Hall and Equipment     3,325,000

(n)     Technical College of the Lowcountry-

New Health Sciences (Nursing) Building     1,200,000

(o)     Piedmont Technical College-

Ed. Tech/Student Services/

Administration Building     4,750,000

(p)     South Carolina State University:

(1)     Business School     1,000,000

(2)     Fine Arts Building     2,500,000

(3)     Camp Daniels Renovation     600,000

(4)     Deferred Maintenance-

Steam Distribution System     875,000

(q)     State Board for Technical and Comprehensive

Education - All Technical Colleges Statewide

Deferred Maintenance and/or Equipment     10,000,000

(r)     Trident Technical College-

Palmer Campus Renovation     3,100,000

(s)     USC Aiken Campus-

(1)     Ruth Patrick Science Education Center     2,500,000

(2)     New Nursing Building     1,500,000

(t)     USC Beaufort Campus-

Deferred Maintenance/Renovation

Beaufort College Building     1,084,500

(u)     University of South Carolina-Columbia-

(1)     Graduate Sciences Research Center     4,384,065

(2)     Renovation/Deferred Maintenance-

Sloan, Hamilton, LeConte, Petigru,

Callcott, and other historic facilities     14,500,000

(v)     USC Lancaster Campus-

Library Expansion     4,000,000

(w)     USC Salkehatchie Campus-

Deferred Maintenance/Reroofing     535,000

(x)     USC School of Medicine-

Deferred Maintenance/Reroofing     350,000

(y)     USC Spartanburg Campus-

Hodge Center Renovation     1,987,500

(z)     USC Sumter Campus-

Deferred Maintenance     400,000

(aa)     USC Union Campus-

Deferred Maintenance     300,000

(bb)     Winthrop University-

Sciences/Math Building     6,750,000

(cc)     York Technical College-

Arts and Sciences/

Distance Learning Classroom Building     2,500,000

2.     Department of Corrections-Construction     54,700,000

3.     Department of Education-

Governor's School for Science and

Mathematics Building     5,000,000

4.     Department of Natural Resources-

Purchase of Jocasee Property     10,000,000

5.     Adjutant General-

Emergency Preparedness Division-

Relocation/Renovation     1,500,000

6.     Clemson PSA-

Agriculture Biotechnology Complex/

Greenhouses     17,000,000

7.     Department of Juvenile Justice

(a)     Coastal Reception and Evaluation

(R&E) Center     4,250,000

(b)     Evaluation Centers Modifications     160,000

(c)     Greenwood Facility Renovation     475,000

(d)     Marine Institute Programs and

Administration Building     500,000

(e)     Emergency Power Generators     750,000

(f)     Prison Industries Building     325,000

8.     ETV-Technology Building     5,500,000

9.     Department of Commerce-

Airport improvements     5,000,000

250,660,401"

SECTION     2.     Section 4 of Act 1377 of 1968, as last amended by Act 523 of 1992, is further amended to read:

"Section 4.         The aggregate principal indebtedness on account of bonds issued pursuant to this act may not exceed $1,895,539,125.10 $2,146,199,526.10. The limitation imposed by the provisions of this section does not apply to bonds issued on behalf of the Mental Health Commission as provided in Acts 1276 and 1272 of 1970, or to bonds issued on behalf of the Commission on Mental Retardation as provided in Act 1087 of 1970 or to bonds issued on behalf of the South Carolina Fire Academy. The limitation imposed by the provisions of this section is not considered to be an obligation of the contract made between the State and holders of bonds issued pursuant to this act, and the limitation imposed by the provisions of this section may be enlarged by acts amending it or reduced by the application of the Capital Reserve Fund or by amendments of this act. Within these limitations state capital improvement bonds may be issued under the conditions prescribed by this act."

SECTION 3.     Section 2-7-105 of the 1976 Code, as last amended by Act 33 of 1995, is further amended to read:

"Section 2-7-105.     State capital improvement bonds may be authorized by the General Assembly in odd-numbered years. A project may be authorized in the act only for a state agency or institution included in the annual general appropriations act."

SECTION 4.     Chapter 101, Title 59 of the 1976 Code is amended by adding:

"Section 59-101-370.     An institution of higher learning, including technical education colleges, receiving funds for new construction projects, not including funds provided for deferred maintenance or renovations, pursuant to authorizations for state capital improvement bonds shall match the state funds provided with at least twenty percent nonstate funds toward the total costs of the project identified in the bond authorization. This match requirement does not apply to any project that received A&E funding prior to July 1, 1995."

SECTION     5.     This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend totals and title to conform.

Rep. H. BROWN explained the amendment.

The amendment was then adopted.

Rep. EASTERDAY proposed the following Amendment No. 2A (Doc Name P:\AMEND\GJK\20669HTC.97), which was adopted.

Amend the bill, as and if amended, by adding a new section to be appropriately-numbered to read:

/SECTION     _____.     Notwithstanding any other provisions of this act or of law, the projects or items contained in Section 1 which are authorized to be funded through the issuance of state capital improvement bonds must instead be funded through the use of surplus 1997-98 general fund revenues. To the extent these sources of funds are not sufficient to fund all the authorized projects or items, state capital improvement bonds may be then be issued for these purposes./

Renumber sections to conform.

Amend totals and title to conform.

Rep. EASTERDAY explained the amendment.

The amendment was then adopted.

The Senate amendments, as amended, were then agreed to and the Bill ordered returned to the Senate.

H. 4111--ADOPTED AND SENT TO THE SENATE

The following Concurrent Resolution was taken up.

H. 4111 -- Reps. H. Brown, Limehouse, Seithel, Harrell, Woodrum, Limbaugh, Jennings, J. Hines, Wilkins, Felder, Young, M. Hines and Harvin: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE TO BE CONSTRUCTED AT THE INTERSECTION OF INTERSTATE HIGHWAY 95 AND STATE ROAD 83 IN FLORENCE COUNTY TO PROVIDE ACCESS TO HONDA CORPORATION'S SOUTH CAROLINA FACILITY IN HONOR OF WOODROW MAXIE "WOODY" MCKAY AND TO PLACE APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE REFLECTING THIS DESIGNATION.

Whereas, The Honorable Woodrow Maxie "Woody" McKay is the son of Woodrow A. and Louise Y. McKay; and

Whereas, he is married to the former Nancy Ward Tyler and together they are the proud parents of one son; and

Whereas, Woody is a 1977 graduate of the University of South Carolina; and

Whereas, he is the Chairman of the Board of the Darlington International Raceway; and

Whereas, Woody is a member of the Timmonsville Presbyterian Church; and

Whereas, he is also a member of numerous civic and business organizations; and

Whereas, Woody has served with distinction as a member of the South Carolina House of Representatives since 1979; and

Whereas, he played a key role in Honda Corporation's decision to locate a major manufacturing facility in South Carolina; and

Whereas, it is entirely fitting that the interchange to be constructed along Interstate Highway 95 in Florence County to provide access to the Honda Corporation's plant site be named in honor of Woody McKay in light of his contributions to our nation, State, and his local community. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the General Assembly of the State of South Carolina, by this resolution, requests the Department of Transportation to name the interchange to be constructed at the intersection of Interstate Highway 95 and State Road 83 in Florence County, which will provide access to Honda Corporation's South Carolina facility, the "Woody McKay Interchange" and to place appropriate markers or signs on the highway reflecting this designation.

Be it further resolved that a copy of this resolution be forwarded to The Honorable Woodrow Maxie "Woody" McKay.

The Concurrent Resolution was adopted and ordered sent to the Senate.

MOTION PERIOD

The motion period was dispensed with on motion of Rep. HASKINS.

Rep. YOUNG-BRICKELL moved that the House recede until 2:15 P.M., which was adopted.

THE HOUSE RESUMES

At 2:15 P.M. the House resumed, the SPEAKER in the Chair.

POINT OF QUORUM

The question of a quorum was raised. A quorum was later present.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 20, 1997
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. 637:
S. 637 -- Senators Peeler, Alexander and Lander: A BILL TO AMEND SECTION 50-1-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GAME ZONES OF THIS STATE, SO AS TO REVISE THE COMPOSITION OF GAME ZONES 1 AND 2; TO AMEND SECTION 50-11-310, AS AMENDED, RELATING TO THE OPEN SEASON FOR ANTLERED DEER, SO AS TO REVISE THE OPEN SEASON FOR TAKING DEER IN GAME ZONES 1, 2, AND 4, AND TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES IN GAME ZONES 1, 2, AND 4 SHALL ESTABLISH THE METHODS FOR HUNTING AND TAKING OF DEER AND SHALL SET OTHER RESTRICTIONS FOR HUNTING AND TAKING DEER; TO AMEND SECTION 50-11-390, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO DECLARE OPEN SEASONS AND SET BAG LIMITS AND METHODS OF HUNTING OF ANTLERLESS DEER, SO AS TO FURTHER PROVIDE FOR THE AUTHORITY OF THE DEPARTMENT IN THIS REGARD; AND TO REPEAL SECTION 50-11-395 RELATING TO THE ISSUANCE OF ANTLERLESS DEER PERMITS IN GAME ZONES 1, 2, AND 4.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 20, 1997
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. 38:
S. 38 -- Senators Land and Giese: A BILL TO AMEND SECTION 23-6-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CREATION OF THE HIGHWAY PATROL DIVISION, AND STATE POLICE DIVISION AND THEIR DISTINCTIVE UNIFORMS AND EMBLEMS, SO AS TO REQUIRE THE HIGHWAY PATROL DIVISION TO TRANSFER THE SERVICE REVOLVER OF AN ACTIVE DUTY TROOPER KILLED IN THE LINE OF DUTY TO HIS SURVIVING SPOUSE AT NO CHARGE UPON REQUEST ONCE THE REVOLVER HAS BEEN RENDERED INOPERABLE.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

S. 483--COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., May 20, 1997
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it nonconcurs in the amendments proposed by the House to S. 483:
S. 483 -- Senators Fair and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-635 SO AS TO PROVIDE THAT A PERSON ASSAULTING AN EMERGENCY MEDICAL SERVICE WORKER OR A FIREMAN PERFORMING HIS PROFESSIONAL DUTIES IS GUILTY OF A MISDEMEANOR AND TO PROVIDE PENALTIES.
Very respectfully,
President

On motion of Rep. HARRISON, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. CROMER, SCOTT and LANFORD to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

H. 3400--COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., May 20, 1997
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it nonconcurs in the amendments proposed by the House to H. 3400

H. 3400 -- GENERAL APPROPRIATION BILL
Very respectfully,
President

On motion of Rep. H. BROWN, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. H. BROWN, QUINN and HARRELL to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

H. 3402--COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate.

MESSAGE FROM THE SENATE

Columbia, S.C., May 20, 1997
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it nonconcurs in the amendments proposed by the House to H. 3402:
H. 3402 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1996-97.
Very respectfully,
President

On motion of Rep. H. BROWN, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. H. BROWN, QUINN and HARRELL to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

S. 254--AMENDED AND INTERRUPTED DEBATE

The following Bill was taken up.

S. 254 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR "UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED MOTORIST FUND; TO AMEND SECTION 38-73-470, AS AMENDED, RELATING TO PROPERTY, CASUALTY, AND INLAND MARINE INSURANCE, SURETY RATES, RATE-MAKING ORGANIZATIONS, AND DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT ONE DOLLAR OF THE YEARLY PREMIUM BE PLACED ON DEPOSIT WITH THE STATE TREASURER IN THE "UNINSURED ENFORCEMENT FUND"; TO AMEND SECTION 38-73-910, AS AMENDED, RELATING TO INSURANCE, RATES, RATE-MAKING, RATE FILING, AND NOTICE OF HEARING AS A PREREQUISITE TO GRANTING OF RATE INCREASES AND EXCEPTIONS, SO AS TO, AMONG OTHER THINGS, DELETE "AUTOMOBILE INSURANCE" FROM THE LIST OF LINES OR TYPES OF INSURANCE FOR WHICH IT IS PROVIDED THAT NO INCREASE IN PREMIUM RATES MAY BE GRANTED UNDER CERTAIN CONDITIONS AND CIRCUMSTANCES, AND PROVIDE THAT, EXCEPT AS PROVIDED IN THIS SECTION, OVERALL AVERAGE RATE LEVEL INCREASES OR DECREASES FOR ALL COVERAGES COMBINED OF SEVEN PERCENT ABOVE OR BELOW THE INSURER'S RATES IN EFFECT MAY TAKE EFFECT WITHOUT PRIOR APPROVAL WITH RESPECT TO RATES FOR AUTOMOBILE INSURANCE POLICIES; BY ADDING SECTION 38-73-736 SO AS TO PROVIDE THAT ANY SCHEDULE OF RATES, RATE CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE INSURANCE AS DEFINED IN SECTION 38-77-30 FILED WITH THE DEPARTMENT OF INSURANCE MUST PROVIDE FOR AN APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR THOSE INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF AGE AND OLDER AND WHO QUALIFY AS PROVIDED IN SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS AMENDED, RELATING TO THE DECLARATION OF THE PURPOSE OF THE AUTOMOBILE INSURANCE LAW, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ONE OF THE PURPOSES IS TO PROVIDE FOR AN ASSIGNED RISK PLAN KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN" FOR CERTAIN PERSONS; TO AMEND SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN DEFINITIONS AND PROVIDE DEFINITIONS FOR "CANCELLATION", "FACILITY PHYSICAL DAMAGE RATE", "INSTITUTIONAL SOURCE", "INSURER SUPPORT ORGANIZATION", AND "POLICY OF AUTOMOBILE INSURANCE"; BY ADDING SECTION 38-77-596 SO AS TO PROVIDE THAT THE GOVERNING BOARD OF THE SOUTH CAROLINA REINSURANCE FACILITY ANNUALLY SHALL DEVELOP AND FILE PRIVATE PASSENGER AUTOMOBILE LOSS COMPONENTS FOR AUTOMOBILE INSURANCE COVERAGES BASED ON THE TOTAL EXPERIENCE OF ALL RISKS CEDED TO THE FACILITY WHICH ARE ACTUARIALLY SOUND AND SUPPORTED BY STATISTICAL EVIDENCE; TO AMEND SECTION 38-77-112, AS AMENDED, RELATING TO THE AUTOMOBILE INSURANCE LAW, THE REQUIREMENT THAT AN APPLICANT FOR, OR POLICYHOLDER OF, SUCH INSURANCE HAVE A DRIVER'S LICENSE AND EXCEPTIONS SO AS TO, AMONG OTHER THINGS, REQUIRE THAT AT THE TIME OF APPLICATION AN INSURER OR AN AGENT RETAIN FOR A PERIOD OF THREE YEARS THE DRIVER'S LICENSE NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED COVERAGE AND FURNISH THIS INFORMATION TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE UPON REQUEST; TO AMEND SECTION 38-77-120, AS AMENDED, RELATING TO REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE REQUIRED NOTICE MUST PROVIDE FOR THE NOTIFICATION REQUIRED BY SECTION 38-77-390(B) AND PROVIDE FOR CERTAIN EXCEPTIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-121 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ANY APPLICATION FOR THE ORIGINAL ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF ANY MOTOR VEHICLE AS DEFINED IN SECTION 38-77-30 MUST HAVE A CERTAIN STATEMENT PRINTED ON OR ATTACHED TO THE FIRST PAGE OF THE APPLICATION FORM; BY ADDING SECTION 38-77-122 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN AUTOMOBILE INSURANCE POLICY AS DEFINED IN SECTION 38-77-30 BECAUSE OF THE APPLICANT'S AGE, SEX, LOCATION OF RESIDENCE IN SOUTH CAROLINA, RACE, COLOR, CREED, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, INCOME LEVEL, PREVIOUS REFUSAL OF AUTOMOBILE INSURANCE BY ANOTHER INSURER, PRIOR PURCHASE OF INSURANCE THROUGH THE SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN, OR LAWFUL OCCUPATION, INCLUDING MILITARY SERVICE; BY ADDING SECTION 38-77-123 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER SHALL REFUSE TO RENEW AN AUTOMOBILE INSURANCE POLICY BECAUSE OF CERTAIN SPECIFIED FACTORS AND THAT NOTHING IN THIS SECTION REQUIRES AN INSURER TO RENEW A POLICY OF AUTOMOBILE INSURANCE WHERE THE INSURED'S OCCUPATION HAS CHANGED SO AS TO MATERIALLY INCREASE THE RISK; BY ADDING SECTION 38-77-124 SO AS TO PROVIDE THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE OR FAIL TO RENEW A POLICY OF MOTOR VEHICLE LIABILITY INSURANCE SOLELY BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE INSURED SO LONG AS THE MOTOR VEHICLE IS LICENSED; BY ADDING SECTION 38-77-141 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO NEW POLICY OR ORIGINAL PREMIUM NOTICE OF INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED UNLESS IT CONTAINS A CERTAIN STATEMENT PRINTED IN BOLDFACE TYPE OR UNLESS THAT STATEMENT IS ATTACHED TO THE FRONT OF OR IS ENCLOSED WITH THE POLICY OR PREMIUM NOTICE; BY ADDING SECTION 38-77-142 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO POLICY OR CONTRACT OF BODILY INJURED OR PROPERTY DAMAGE LIABILITY INSURANCE COVERING LIABILITY ARISING FROM THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED IN SOUTH CAROLINA TO THE OWNER OF THE VEHICLE OR MAY BE ISSUED OR DELIVERED BY AN INSURER LICENSED IN SOUTH CAROLINA UPON A MOTOR VEHICLE THAT IS PRINCIPALLY GARAGED, DOCKED, OR USED IN THIS STATE UNLESS THE POLICY CONTAINS A PROVISION INSURING THE NAMED INSURED AND ANY OTHER PERSON USING OR RESPONSIBLE FOR THE USE OF THE MOTOR VEHICLE WITH THE EXPRESSED OR IMPLIED CONSENT OF THE NAMED INSURED AGAINST LIABILITY FOR DEATH OR INJURY SUSTAINED OR LOSS OR DAMAGE INCURRED WITHIN THE COVERAGE OF THE POLICY OR CONTRACT AS A RESULT OF NEGLIGENCE IN THE OPERATION OR USE OF THE VEHICLE BY THE NAMED INSURED OR BY ANY SUCH PERSON; BY ADDING SECTION 38-77-143 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT A POLICY OR CONTRACT OF BODILY INJURY OR PROPERTY DAMAGE LIABILITY INSURANCE RELATING TO THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE EXCLUDES COVERAGE TO PERSONS OTHER THAN THE NAMED INSURED OR DIRECTORS, STOCKHOLDERS, PARTNERS, AGENTS, OR EMPLOYEES OF THE NAMED INSURED, OR RESIDENTS OF THE HOUSEHOLD OF EITHER OF THESE GROUPS WHILE THOSE PERSONS ARE EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING, OR PARKING MOTOR VEHICLES IF THERE IS ANY OTHER VALID OR COLLECTIBLE INSURANCE APPLICABLE TO THE SAME LOSS COVERING THE PERSONS UNDER A POLICY WITH LIMITS AT LEAST EQUAL TO THE FINANCIAL RESPONSIBILITY REQUIREMENTS SPECIFIED IN SECTION 38-77-140; BY ADDING SECTION 38-77-151 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ALL FUNDS COLLECTED BY THE DIRECTOR OF THE DEPARTMENT OF REVENUE UNDER CHAPTER 10, TITLE 56 MUST BE PLACED ON DEPOSIT WITH THE STATE TREASURER AND HELD IN A SPECIAL FUND TO BE KNOWN AS THE "UNINSURED MOTORISTS FUND" TO BE DISBURSED AS PROVIDED BY LAW; BY ADDING SECTION 38-77-154 SO AS TO PROVIDE THAT THE UNINSURED MOTORISTS FUND SHALL BE UNDER THE SUPERVISION AND CONTROL OF THE DEPARTMENT OF INSURANCE, REQUIRE PAYMENTS FROM THIS FUND TO BE MADE ON WARRANTS OF THE COMPTROLLER GENERAL ISSUED ON VOUCHERS SIGNED BY A PERSON DESIGNATED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, AND SET FORTH THE PURPOSE OF THE FUND; BY ADDING SECTION 38-77-155 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE SHALL DISTRIBUTE MONIES ANNUALLY FROM THE UNINSURED MOTORISTS FUND AMONG THE SEVERAL INSURERS WRITING MOTOR VEHICLE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE ON MOTOR VEHICLES REGISTERED IN SOUTH CAROLINA; TO AMEND SECTION 38-77-140, RELATING TO BODILY INJURY AND PROPERTY DAMAGE LIMITS UNDER THE AUTOMOBILE INSURANCE LAW, SO AS TO RAISE THE MINIMUM LIMITS OF COVERAGE FOR INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND SECTION 38-77-150, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF AN ACTION BY THE INSURER, SO AS TO PROVIDE FOR A MINIMUM OF TEN THOUSAND RATHER THAN FIVE THOUSAND DOLLARS COVERAGE FOR INJURY TO OR DESTRUCTION OF THE PROPERTY OF THE INSURED IN ANY ONE ACCIDENT, AND PROVIDE THAT BENEFITS PAID PURSUANT TO THIS SECTION ARE SUBJECT TO SUBROGATION AND ASSIGNMENT IF AN UNINSURED MOTORIST HAS SELECTED THE OPTION TO BE UNINSURED BY PAYING THE FEE PURSUANT TO SECTION 56-10-510; TO AMEND SECTION 38-77-350, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND THE FORM REQUIRED TO BE USED IN THE OFFERING OF OPTIONAL COVERAGES, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION REGARDING POLICIES OF INSURANCE OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR THE REINSURANCE FACILITY TO REPLACE POLICIES PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER AND CONTAINING THE SAME COVERAGE LIMITS AS THE FORMER POLICIES; BY ADDING SECTION 38-77-370 SO AS TO PROVIDE THAT IF AN INDIVIDUAL, AFTER PROPER IDENTIFICATION, SUBMITS A WRITTEN REQUEST TO AN INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL THAT IS REASONABLY DESCRIBED BY THE INDIVIDUAL AND ABLE TO BE LOCATED AND RETRIEVED BY THE INSURANCE-SUPPORT ORGANIZATION, THE INSURANCE-SUPPORT ORGANIZATION, WITHIN THIRTY BUSINESS DAYS FROM THE DATE THE REQUEST IS RECEIVED, SHALL TAKE CERTAIN ACTION, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; BY ADDING SECTION 38-77-390 SO AS TO PROVIDE THAT IN THE EVENT OF A CANCELLATION OR NONRENEWAL OF AN AUTOMOBILE INSURANCE POLICY, INCLUDING CANCELLATIONS OR NONRENEWALS THAT INVOLVE POLICIES REFERRED TO IN SECTION 38-77-120, THE INSURER OR AGENT RESPONSIBLE FOR THE CANCELLATION OR NONRENEWAL SHALL GIVE CERTAIN WRITTEN NOTICE IN A FORM APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO THE APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED FOR COVERAGE, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; 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 MUST COMMENCE RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR THROUGH THE FACILITY, THAT THE SURCHARGE MUST BE A PERCENTAGE OF THE PREMIUM ADOPTED BY THE GOVERNING BOARD OF THE FACILITY, THAT THE CHARGES DETERMINED ON THE BASIS OF THE SURCHARGE MUST BE DISPLAYED AS A PART OF THE APPLICABLE PREMIUM CHARGES, AND THAT THE FACILITY SHALL CONVERT TO THE PERCENTAGE-OF-PREMIUM BASIS OF RECOUPMENT BY MARCH 1, 1998; TO AMEND SECTION 38-77-590, AS AMENDED, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND SECTION 38-77-595, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND CONDITIONS FOR DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT FOR "DESIGNATED PRODUCER", SO AS TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT PROVISIONS OF LAW CONCERNING "ASSIGNMENT OF RISKS"; TO PROVIDE THAT BEGINNING MARCH 1, 1998, INSURERS MAY NONRENEW A POLICY OF INSURANCE THAT THEY HAVE CURRENTLY CEDED TO THE SOUTH CAROLINA REINSURANCE FACILITY, AND PROVIDE THAT THIS PROVISION DOES NOT APPLY TO BUSINESS WRITTEN THROUGH THE DESIGNATED PRODUCERS; TO REPEAL ARTICLE 5, CHAPTER 77, TITLE 38, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND DESIGNATED PRODUCERS, EFFECTIVE JANUARY 1, 2005; TO REPEAL SECTION 38-73-450, RELATING TO THE FAIRNESS OF AUTOMOBILE INSURANCE RATES OR PREMIUM CHARGES AND BURDEN ON THE INSURER TO PROVE FAIRNESS, SECTION 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, SECTION 38-73-457, RELATING TO THE REQUIREMENT UPON AUTOMOBILE INSURERS AND RATING ORGANIZATIONS TO FILE INFORMATION ON BASE RATES, SECTION 38-73-460, RELATING TO THE EFFECT OF GAINS AND LOSSES INCURRED BY MEMBER INSURERS OF THE REINSURANCE FACILITY ON RATES FOR AUTOMOBILE INSURANCE, SECTION 38-73-465, RELATING TO AUTOMOBILE INSURANCE AND UNFAIRLY DISCRIMINATORY, EXCESSIVE, OR UNREASONABLE PROFITS OR RATES, SECTION 38-73-720, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE POWER TO ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS, SECTION 38-73-730, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND RISK CLASSIFICATION PLANS, SECTION 38-73-731, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, REMOVAL FROM THE YOUTHFUL DRIVER CLASSIFICATION, AND REFUND OF EXCESS PREMIUM PAID, SECTION 38-73-735, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE PLAN FOR CREDITS AND DISCOUNTS, SECTION 38-73-750, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS FILE WITH THE STATE RATING AND STATISTICAL DIVISION THEIR PLANS OR SYSTEMS FOR ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE RISKS AND THE CLASSES OF RISKS THEREUNDER, SECTION 38-73-760, RELATING TO INSURANCE, THE STATE-RATING AND STATISTICAL DIVISION, AND UNIFORM STATISTICAL PLANS, SECTION 38-73-770, RELATING TO INSURANCE AND THE REQUIREMENT THAT EVERY CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF INSURANCE BE SO STRUCTURED AS TO PRODUCE RATES OR PREMIUM CHARGES WHICH ARE ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY DISCRIMINATORY, SECTION 38-73-775, RELATING TO THE ANNUAL FILING OF THE PHYSICAL DAMAGE LOSS COMPONENT BY THE SOUTH CAROLINA REINSURANCE FACILITY, SECTION 38-77-110, RELATING TO THE "MANDATE TO WRITE", AUTOMOBILE INSURANCE COVERAGE, THE REQUIREMENT UPON INSURERS TO INSURE, AND EXCEPTIONS, SECTION 38-77-111, RELATING TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, SECTION 38-77-115, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE SIGNS REQUIRED IN AN AGENT'S PLACE OF BUSINESS, SECTION 38-77-145, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE PROVISION THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT MANDATED, SECTION 38-77-285, RELATING TO THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE COVERAGES ARE TO BE IN ONE POLICY, SECTION 38-77-360, RELATING TO THE PROHIBITION AGAINST AN INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER CERTAIN FIRST-OFFENSE VIOLATIONS, SECTION 38-77-600, RELATING TO AUTOMOBILE INSURANCE AND THE REINSURANCE FACILITY RECOUPMENT CHARGE, SECTION 38-77-605, RELATING TO THE REQUIREMENT THAT THE REINSURANCE FACILITY RECOUPMENT CHARGE MUST BE DISPLAYED IN A CERTAIN MANNER IN INSURANCE PREMIUM NOTICES OR BILLS, SECTION 38-77-610, RELATING TO AUTOMOBILE INSURANCE AND THE FILING OF REINSURANCE FACILITY RECOUPMENT CHARGES, SECTION 38-77-620, RELATING TO AUTOMOBILE INSURANCE AND THE INCLUSION OF FACILITY RECOUPMENT CHARGES IN AUTOMOBILE INSURANCE RATES, SECTION 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, AND ARTICLE 9, CHAPTER 77, TITLE 38, RELATING TO THE AUTOMOBILE INSURANCE LAW AND CERTAIN UNLAWFUL ACTS; AND TO PROVIDE THAT NONRENEWAL NOTICES MAY BE SENT BEFORE MARCH 1, 1998, FOR AUTOMOBILE INSURANCE POLICIES RENEWING ON OR AFTER THAT DATE.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name P:\AMEND\BBM\9432JM.97), which was adopted.

Amend the bill, as and if amended, by striking SECTION 1 and inserting:

/SECTION     1.     Section 56-9-20 of the 1976 Code, as last amended by Act 459 of 1996, is further amended by adding the following appropriately-numbered item:

"( )     'Uninsured Motorist Fund' means a fund established for fees collected by the Director of the Department of Public Safety from registration of uninsured vehicles."/

Amend further, by striking Section 56-10-510, as contained in SECTION 2, beginning at line 12 on page 10 and ending at line 27 on page 11, and inserting:

/"Section 56-10-510.     In addition to any other fees prescribed by law, every person registering an uninsured motor vehicle, as defined in Section 56-9-20, at the time of registering or reregistering the uninsured vehicle, shall pay a fee of five hundred dollars. However, if the uninsured motor vehicle is being registered for a period of less than a full year, the uninsured motor vehicle fee must be prorated to conform to the registration period. This uninsured motor vehicle fee shall be increased annually based upon and in relation to the average rate level increases for private passenger automobile insurance coverages by insurers in this State. The Director of the Department of Insurance, by annual order, will set this exact fee. The application for registering an uninsured vehicle must have the following statements printed on or attached to the first page of the form, boldface, twelve point type: "THIS $500 FEE IS NOT AN INSURANCE PREMIUM AND YOU ARE NOT PURCHASING ANY INSURANCE BY PAYING THIS FEE. THIS $500 UNINSURED MOTORIST FEE IS FOR THE PRIVILEGE TO DRIVE AND OPERATE AN UNINSURED MOTOR VEHICLE ON THE SOUTH CAROLINA ROADS." This uninsured motorist notice required by this Section must also be given to the person registering an uninsured motor vehicle. The director shall prescribed the exact format of this notice by regulation and shall adjust the amount of this fee annually as part of the order by the Director of the Department of Insurance adjusting the uninsured motorist fee in relation to the average rate level increases for private passenger automobile insurance coverages by insurers in this State. Every person applying for registration of a motor vehicle and declaring it to be an insured motor vehicle, under the penalties set forth in Section 56-10-520, shall execute and furnish to the director his certificate that the motor vehicle is an insured motor vehicle as defined by the laws of this State, or that the director has issued to its owner, in accordance with Section 56-9-60, a certificate of self-insurance applicable to the vehicle sought to be registered. The director, or his designee, may require any registered owner of a motor vehicle declared to be insured or any applicant for registration of a motor vehicle to be an insured to submit a certificate of insurance on a form prescribed by the director. The director must forward the certificate of insurance or bond to the insurance company or surety company, whichever is applicable, for verification as to whether the policy or bond named in the certificate is currently in force. At that time, and not later than thirty days following receipt of the certificate of insurance, the insurance company or surety company must cause to be filed with the director a written notice if the policy or bond was not applicable as to the named insured. The director must prescribe the manner in which the written notice must be made. The refusal or neglect of any owner within thirty days to submit the certificate of insurance when required by the director or his designee or the notification by the insurance company or surety company that the policy or bond named in the certificate of insurance is not in effect, must require the director to suspend any driver's license and all registration certificates and license plates issued to the owner of the motor vehicle until the person:

(1)     has paid to the Director of the Department of Public Safety a fee of three hundred dollars to be disposed of as provided for in Sections 56-10-550 and 56-10-552 with respect to the motor vehicle determined to be uninsured; and

(2)     furnishes proof of financial responsibility for the future in the manner prescribed in Section 56-10-10, et seq. of this chapter. An order of suspension required by this section is not effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. When three years have elapsed from the effective date of the suspension required in this section, the director may relieve the person of the requirement of furnishing proof of future financial responsibility. If the director determines that the fee applicable to the registration of an uninsured motor vehicle has been paid on the vehicle in question on or before the date that the insurance certificate was requested, no suspension action must be taken. The director shall suspend the driver's license and all registration certificates and license plates of any person on receiving a record of his conviction of a violation of any provisions of Section 56-10-520, but the director shall dispense with the suspension when the person is convicted for a violation of Section 56-10-520 and the department's records show conclusively that the motor vehicle was insured or that the fee applicable to the registration of an uninsured motor vehicle has been paid by the owner before the date and time of the alleged offense."/

Amend further, by striking Section 56-10-530, as contained in SECTION 2, at lines 4-35 on page 13, and inserting:

/"Section 56-10-530.     When it appears to the director from the records of his office that an uninsured motor vehicle as defined in Section 56-9-20, subject to registration in the State, is involved in a reportable accident in the State resulting in death, injury, or property damage with respect to which motor vehicle the owner thereof has not paid the uninsured motor vehicle fee as prescribed in Section 56-10-510, the director shall, in addition to enforcing the applicable provisions of Section 56-10-10, et seq. of this chapter, suspend such owner's driver's license and all of his license plates and registration certificates until such person has complied with those provisions of law and has paid to the Director of the Department of Public Safety a reinstatement fee as provided by Section 56-10-510, to be disposed of as provided by Section 56-10-550, with respect to the motor vehicle involved in the accident and furnishes proof of future financial responsibility in the manner prescribed in Section 56-9-350, et seq.. However, no order of suspension required by this section must become effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. Notice of such suspension shall be made in the form provided for in Section 56-1-465. However, when three years have elapsed from the effective date of the suspension herein required, the director may relieve such person of the requirement of furnishing proof of future financial responsibility. The presentation by a person subject to the provisions of this section of a certificate of insurance, executed by an agent or representative of an insurance company qualified to do business in this State, showing that on the date and at the time of the accident the vehicle was an insured motor vehicle as herein defined or, presentation by such person of evidence that the additional fee applicable to the registration of an uninsured motor vehicle had been paid to the department before the date and time of the accident, is sufficient bar to the suspension provided for in this section."/

Amend further, by striking Section 56-10-535, as contained in SECTION 2, beginning at line 37 on page 13 and ending at line 19 on page 38, and inserting:

/"Section 56-10-535.     The director, upon receiving notice at the time of application or at any time during participation in the Fund that a titled owner of a motor vehicle has been convicted of one of the following violations: disobedience of any official traffic device, failure to stop for law enforcement officer when signaled, disobedience to any officer directing traffic, failure to stop for a school bus, leaving the scene of an accident where injury to person or damage to property results, theft or unlawful taking of a vehicle, racing on public highways, driving under the influence of intoxicating liquor or narcotic drugs or where injury to a person of over three hundred dollars per person or damage to property of the insured or other person of over seven hundred fifty dollars results, reckless driving where injury to a person of over three hundred dollars per person or damage to property of the insured or other person of over seven hundred fifty dollars results, homicide or assault arising out of the operation of a motor vehicle, any felony involving the use of a motor vehicle, the transporting of illegal whiskey or unlawful drugs or other controlled or narcotic substances, reckless homicide, wilful making of false statements in the application for license or registration, impersonating an applicant for license or registration, or procuring a license or registration through impersonation whether for himself or another; then shall require the owner to furnish proof of financial responsibility in the manner prescribed by the director.

However, when three years have elapsed from the effective date of any conviction for the above offenses, the director may relieve such person of the requirement of furnishing proof of future financial responsibility."/

Amend further, by striking Section 56-10-550, as contained in SECTION 2, beginning at line 37 on page 14 and ending at line 3 on page 15, and inserting:

/"Section 56-10-550.     Except as provided in Section 56-10-552, funds collected by the Director of the Department of Public Safety under the provisions of this chapter must be placed on deposit with the State Treasurer and held in a special fund to be known as the 'Uninsured Motorists Fund' to be disbursed as provided by law. The Director of the Department of Insurance as provided in Sections 38-77-151 and 38-77-154 may expend monies from such funds for the administration of Title 38."/

Amend further, by striking Section 56-10-551, as contained in SECTION 2, at lines 5-8, on page 15, and inserting:

/"Section 56-10-551.     When any insurance policy certified under this chapter is canceled or terminated, the insurer shall report the fact to the director within thirty days after the cancellation on a form prescribed by the director."/

Amend further, by striking Section 56-10-553, as contained in SECTION 2, beginning at line 25 on page 15 and ending at line 3 on page 16, and inserting:

/"Section 56-10-553.     (A)     The Department of Public Safety must collect data and maintain statistics on the total number of vehicles registered in the State as of June thirtieth of each year, the number of motorists who voluntarily paid the five hundred dollar fee at the time of registration during the fiscal year, the number of motorists who paid the penalty fee after being detected by the Department of Public Safety as being uninsured during the fiscal year, the number of certificates of insurance filed during the fiscal year, the net revenue collections for these fees by the fiscal year, the net funds available in the Uninsured Motorist Fund, and the net funds received from the Department of Insurance from the uninsured motorist fee during fiscal year.

(B)     The Department of Public Safety must implement programs designed to ensure full compliance with the financial responsibility laws. These programs must include random sampling of licensed drivers with moving violations requesting proof of insurance. Other programs may be added.

(C)     The Department of Public Safety must on a daily basis select a computerized random sample of five hundred of the registered vehicles in the State and mail to each owner a written request form to be completed by him and his insurance company or the agent issuing the policy to verify liability insurance coverage. The form must be in a manner prescribed by regulation of the department. The completed and verified form must be returned by the owner to the department within fifteen days from the date he receives it. Failure to return the form verified in the proper manner is prima facie evidence that the vehicle is uninsured, and vehicles determined to be uninsured under this section are subject to the provisions of state law dealing with uninsured vehicles.

(D)     The Department of Public Safety must provide an annual report to the General Assembly containing the information required in subsections (A) and (B) of this section."/

Amend Further, by striking SECTION 4 in its entirety and inserting:

/SECTION     4.     Section 38-73-910 of the 1976 Code, as last amended by Acts 300, 360, and 378 of 1996, is further amended to read:

"Section 38-73-910.     (A)     No increase in the premium rates may be granted for automobile, workers' compensation, fire, allied lines, and homeowners' insurance, nor for any other line or type of insurance with respect to which the director or his designee has, by order, made a finding that (a) legal or other compulsion upon the part of the insured to purchase the insurance interferes with competition, or (b) under prevailing circumstances there does not exist substantial competition, unless notice is given in all newspapers of general, statewide circulation at least thirty days in advance of the insurer's proposed effective date of the increase in premium rates. The notice shall state the amount of increase, the type and line of coverage, and the proposed effective date and shall allow any insured or affected party to request within fifteen days a public hearing upon the propriety of the rate increase request before the Administrative Law Judge Division. A copy of the notice must be sent to the Consumer Advocate.

However, the requirements of public notices and public hearings in this section do not apply to applications for rate increases when the applicant insurer had earned premiums in this State in the previous calendar year of less than two million dollars for the line or type of insurance for which the rate increase is sought or, if the rate increase is sought by a rating organization, the earned premiums in this State for all members and subscribers of the organization for whom an increase is sought were less than two million dollars for the previous calendar year for the line or type of insurance for which the rate increase is sought. The two million dollars must be increased by a factor equal to the increase in the consumer price index, all items, every three years.

However, a private insurer licensed to underwrite essential property insurance as defined by Section 38-75-310(1), notwithstanding any limitations included within this title, may file and use, pursuant to the provisions of Section 38-73-1095, any rates which result in insurance premium rates of ninety percent, or less, of the insurance premium rates then approved for the South Carolina Wind and Hail Underwriting Association for use within the coastal area of South Carolina as defined by Section 38-75-310(5).

(B)     Except as provided in subsection (c) of this section, overall average rate level increases or decreases, for all coverages combined, of seven percent above or below the insurer's rates in effect may take effect without prior approval on a file and use basis with respect to rates for automobile insurance policies. The seven percent cap does not apply on an individual insured basis.

(c)     Notwithstanding any other provisions of this chapter, for any policies governed by this section, filings that produce rate level changes within the limitation specified in subsection (B) of this section becomes effective without prior approval; provided, however, that (1) no more than one rate increase within the limitation specified in subsection (B) of this section may be implemented during any twelve-month period and (2) no rate increase within the limitation specified in subsection (B) of this section may be implemented until the onset of the new policy period and unless the insurer, at least thirty days in advance of the end of the policy period, mails or delivers to the named insured, at the address shown in the policy, a written notice of its intention to change the rate. The overall statewide rate change implemented under this section must be stated in the notice.

A rate increase or decrease falling within the limitation specified in subsection (B) of this section may become effective at any time after the date of the filing with the director. Any such filing is deemed to meet the requirements of this chapter. The director may, after a hearing before the director or his designee, find that such a filing is not in compliance with this chapter. In the event of such a finding, the director shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period thereafter in which the filing shall be deemed no longer effective. Any order issued pursuant to this section shall be on a prospective basis only and shall not affect any contract issued or made prior to the effective date of the order.

Rate filings falling outside the limitation specified in subsection (B) of this section will be subject to the prior approval of the director. The director shall approve or disapprove such filings in accordance with the provisions of Section 38-73-960 and 38-73-990.

(D)     Individual automobile insurance companies and member companies of an affiliated group of automobile insurers may utilize different filed rates for automobile insurance coverages in accordance with rating plans filed with and approved by the director. These rating plans may provide for different rates, rating tiers, and rating plans among affiliated companies. For the purpose of this section, an affiliated group of automobile insurers includes a group of automobile insurers under common ownership, management, or control. Each member of an affiliated group shall be considered a separate insurer for purposes of compliance with the laws governing the writing, cancellation, or renewal of an automobile insurance policy; provided, no nonrenewal notice is required when the premium for equivalent coverages is the same or less.

(E)     The Director of the Department of Insurance or his designee shall promulgate regulations implementing the provisions of this section.

(F)     On or before March 31, 2004, the Director of the Department of Insurance or his designee shall report to the General Assembly on the effectiveness of flexible rating for automobile insurance policies. The report which may not include data regarding a specific insurer or insurer group, except data that is public record, must analyze the impact of flexible rating on:

(1)     the extent and nature of competition;

(2)     size and significance of coverage;

(3)     level and range or rates and rate changes among insurers;

(4)     extent of consumer complaints to the Department of Insurance;

(5)     volume of cancellations and nonrenewals;

(6)     changes in the number of policies by territory and by class, including age and sex, in each territory; and

(7)     the number of new insured, nonrenewed insured and business written by each insurer."/

Amend further, by striking SECTION 6 in its entirety and inserting:

/SECTION     6.     Section 38-77-10 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-10.     In order to effect a complete reform of automobile insurance and insurance practices in South Carolina, the purposes of this chapter are to provide:

(1)     To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to bodily injury liability and property damage liability automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the department so long as all these applicants or insureds have satisfied the same objective standards as established in Sections 38-77-280 and 38-73-455;

(2)     To provide a Reinsurance Facility for automobile insurers in which all automobile insurers which provide bodily injury liability insurance, property damage liability insurance, or both, must participate to the end that the operating expenses and net profit or loss of the facility may be shared equitably by all the insurers transacting bodily injury liability and property damage liability automobile insurance business in this State giving appropriate consideration to degrees of utilization of the facility by the several insurers of bodily injury liability and property damage liability automobile insurance and to provide prohibitions or penalties in respect to excessive utilization of the facility. for an residual market mechanism, known as the South Carolina Automobile Insurance Plan, for every person who is legally entitled to automobile insurance but has not been able to obtain a motor vehicle liability policy to apply to the Director of the Department of Insurance to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State who shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility in this chapter;

(3)     To provide prohibitions and penalties in respect to unfairly discriminatory or unfairly competitive practices having as their purpose or effect evasion of the statutory mandate of coverage provided in this chapter or imposing an undue or unfair burden upon other automobile insurers through excessive utilization of the Facility. of the coverages as provided in this chapter; and

(4)     To provide medical, surgical, funeral, and disability insurance benefits without regard to fault to be offered under automobile insurance policies that provide bodily injury and property damage liability insurance, or other security, for motor vehicles registered in this State."/

Amend further, by striking SECTION 7 in its entirety and inserting:

/SECTION     7.     Section 38-77-30 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-30.     As used in this chapter, unless the context requires otherwise:

(1)     'Automobile insurance' means automobile bodily injury and property damage liability insurance, including medical payments and uninsured motorist coverage, and automobile physical damage insurance such as automobile comprehensive physical damage, collision, fire, theft, combined additional coverage, and similar automobile physical damage insurance and economic loss benefits as provided by this chapter written or offered by automobile insurers. An automobile insurance policy includes a motor vehicle liability policy as defined in item (7) of Section 56-9-20 and any nonowner automobile insurance policy which covers an individual private passenger automobile not owned by the insured, a family member of the insured, or a resident of the same household as the insured.

(2)     'Automobile insurer' means an insurer licensed to do business in South Carolina and authorized to issue automobile insurance policies.

(3)     'Bodily injury' includes death resulting therefrom.

(3.5)     'Cancellation' or 'to cancel' means a termination of a policy during the policy period.

(4)     'Damages' includes both actual and punitive damages.

(4.5)     'Facility physical damage rate' means the final rate or premium charge for physical damage coverage which must be established by adding the physical damage loss component developed under Section 38-77-596 to the expense component developed under Section 38-77-596.

(5)     'Facility' means the unincorporated, nonprofit, legal entity created by this chapter to reinsure policies of automobile insurance known as the South Carolina Reinsurance Facility.

(5.5)(a)     'Individual private passenger automobile' means the following types of motor vehicles owned by or leased under a long-term contract by an individual or individuals:

(I)     motor vehicles of the private passenger type or station wagon type;

(ii)     panel trucks, delivery sedans, vehicles with a pickup body, vans, or similar motor vehicles designed for use on streets and highways and so licensed; and

(iii)     motor homes, so long as the motor vehicles described in (ii) and (iii) are not used in the occupation, profession, or business of the insured other than farming and ranching.; and

(iv)     motorcycles.

(b)     A motor vehicle is not considered 'owned by or leased under a long-term contract by an individual or individuals' if the motor vehicle is owned by a partnership or corporation, unless the motor vehicle is owned by a farm family copartnership or a farm family corporation and is garaged principally on a farm or ranch.

(c)     A motor vehicle is not considered 'used in the occupation, profession, or business of the insured', because it is used in the course of driving to and from work.

(d)     Individual private passenger automobile does not include:

(I)     motor vehicles that are used for public or livery conveyance or rented to others without a driver;

(ii)     fire department vehicles, police vehicles, ambulances, and rescue squad vehicles which are publicly owned;

(iii)     motorcycles, motor-driven cycles, motor scooters, and mopeds;

(iv) dune buggies, all terrain vehicles, go carts, and snowmobiles;

(v)(iv)     golf carts; and

(vi)(v)     small commercial risks.

(6)     'Institutional source' means any person or governmental entity that provides information about an individual to an agent, insurer, or insurance-support organization other than:

(a)     an agent;

(b)     the individual who is the subject of the information; or

(c)     a natural person acting in a personal capacity rather than in a business or professional capacity.

(7)     'Insured' means the named insured and, while resident of the same household, the spouse of any named insured and relatives of either, while in a motor vehicle or otherwise, and any person who uses with the consent, expressed or implied, of the named insured the motor vehicle to which the policy applies and a guest in the motor vehicle to which the policy applies or the personal representative of any of the above.

(8)     'Insurance-support organization' means any person who regularly engages, in whole or in part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurer or agent for insurance transactions, including (I) the furnishing of consumer reports or investigative consumer reports to an insurer or agent for use in connection with an insurance transaction or (ii) the collection of personal information from insurers, agents, or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation, or material nondisclosure in connection with insurance underwriting or insurance claim activity. However, the following persons shall not be considered insurance-support organizations for purposes of this chapter: agents, governmental institutions, insurers, rating organizations, medical care institutions, and medical professionals.

(7)(9)     'Motor vehicle' means every self-propelled vehicle which is designed for use upon a highway, including trailers and semitrailers designed for use with these vehicles but excepting traction engines, road rollers, farm trailers, tractor cranes, power shovels and well-drillers, and every vehicle which is propelled by electric power obtained from overhead wires but not operated upon rails. For purposes of this chapter, the term automobile has the same meaning as motor vehicle.

(8)(10)     'Nonpayment of premium' means failure of the named insured to pay when due any of his obligations in connection with the payment of premiums on a policy, or any installment of the premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit, or failure to maintain membership in an organization if membership is a condition precedent to insurance coverage.

(10.5)     'Policy of automobile insurance' or 'policy' means a policy or contract for bodily injury or property damage liability insurance issued or delivered in this State covering liability arising from the ownership, maintenance, or use of any motor vehicle, insuring as the named insured one individual or husband and wife who are residents of the same household, and under which the insured vehicle designated in the policy is either:

(a)     a motor vehicle of a private passenger, station wagon, or motorcycle type that is not used commercially, rented to others, or used as a public or livery conveyance where the terms 'public or livery conveyance' do not include car pools, or

(b)     any other four-wheel motor vehicle which is not used in the occupation, profession, or business, other than farming, of the insured, or as a public or livery conveyance, or rented to others. The term 'policy of automobile insurance' or 'policy' does not include:

(I)     any policy issued through the South Carolina Automobile Insurance Plan,

(ii)     any policy covering the operation of a garage, sales agency, repair shop, service station, or public parking place,

(iii)     any policy providing insurance on an excess basis such as an umbrella policy, or

(iv)     any other contract providing insurance to the named insured even though the contract may incidentally provide insurance on motor vehicles.

(9)(11)     'Quota share reinsurance' means that form of reinsurance in which the reinsurer assumes a fixed percentage of the insured risk.

(10)(12)     'Renewal' or 'to renew' means the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, the renewal policy to provide types and limits of coverage at least equal to those contained in the policy being superseded, or the issuance and delivery of a certificate or notice extending the terms of a policy beyond its policy period or term with types and limits of coverage at least equal to those contained in the policy being extended. However, any policy with a policy period or term of less than six months or any period with no fixed expiration date is considered as if written for successive policy periods or terms of six months.

(11)(13)     'Small commercial risk' means:

(a)     Garage risks including nonmotor vehicle insurance when written in combination with automobile liability coverage.

(b)     Ambulance risks.

(c)     Commercial risks which have a load capacity less than ten thousand pounds manufacturer's gross vehicular weight greater than twenty thousand pounds and are not required to have a mandatory filing by a governmental authority other than an SR-22.

(d)     Church buses used by a church to transport adults or children to and from services and in activities incidental to church functions, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.

(e)     Privately owned school buses used to carry school children and students, their parents or guardians, members of the faculty, school board members, nurses, doctors, and dentists, as well as guests in connection with any school activity and operations incidental thereto, including games, outings, and similar road trips, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.

'Small commercial risk' does not include pulpwood trucks or dump trucks.

(12)     'Specialized insurer' means an insurer which specializes in certain types of business such as, but without limitation on the generality, commercial automobile business, and which may be relieved, with the approval of the director or his designee, of the obligation to write types of business inconsistent with this specialty, such as private passenger automobile business. However, no insurer may be approved as a specialized insurer or continue to be so approved unless it accepts all insurable risks falling within the types of business to which it confines its writings without distinctions among applicants or policyholders as to policy forms, terms, rates or services other than as the distinctions are reflected in the approved rating plan for the classification of risks. No insurer may be approved as a specialized insurer because it specializes in or purports to specialize in select or preferred risks. A specialized insurer may not cede risks to the Reinsurance Facility and thus does not recoup losses of the facility. Specialized insurers may be excused from using the merit rating plan and the uniform classification and territorial plans upon approval by the director or his designee.

(13)(14)     'Uninsured motor vehicle' means a motor vehicle as to which:

(a)     there is not bodily injury liability insurance and property damage liability insurance both at least in the amounts specified in Section 38-77-140, or

(b)     there is nominally that insurance, but the insurer writing the same successfully denies coverage thereunder, or

(c)     there was that insurance, but the insurer who wrote the same is declared insolvent, or is in delinquency proceedings, suspension, or receivership, or is proven unable fully to respond to a judgment, and

(d)     there is no bond or deposit of cash or securities in lieu of the bodily injury and property damage liability insurance.

(e)     the owner of the motor vehicle has not qualified as a self-insurer in accordance with the applicable provisions of law.

A motor vehicle is considered uninsured if the owner or operator is unknown. However, recovery under the uninsured motorist provision is subject to the conditions set forth in this chapter.

Any motor vehicle owned by the State or any of its political subdivisions is considered an uninsured motor vehicle when the vehicle is operated by a person without proper authorization.

(14)(15)     'Underinsured motor vehicle' means a motor vehicle as to which there is bodily injury liability insurance or a bond applicable at the time of the accident in an amount of at least that specified in Section 38-77-140 and the amount of the insurance or bond is less than the amount of the insureds' damages."

Amend further, by striking SECTION 8 in its entirety and inserting:

/SECTION     8.     The 1976 Code is amended by adding:

"Section 38-77-596.     (A)     The governing board of the South Carolina Reinsurance Facility annually shall develop and file private passenger automobile loss components and expense components which include provisions for profits and contingencies, which would combine for the final rate for automobile insurance coverages based on the total experience of all risks ceded to the facility which are actuarially sound and supported by statistical evidence. The governing board shall contract with independent actuarial services to develop the loss component. Due consideration must be given to actual loss experience within the facility for the most recent three-year period for which such information is available.

(B)     The loss component developed under this section is applicable to the risk and territorial classification plan adopted by the facility. Nothing in this section precludes the governing board of the facility from filing for approval, or the Director of the Department of Insurance from requiring the governing board to file for approval, variations in loss components and rates which are based upon differences in risk characteristics including, but not limited to, difference in driving records.

(c)     The governing board of the facility annually shall review the private passenger automobile loss components to determine if they are actuarially-sound and supported by the statistical evidence. If rate changes are required, the governing board shall submit appropriate filings for approval with the director. Facility rate increases on or after March 1, 1999, must be capped at an overall ten percent increase each year. This cap does not apply on an individual insured basis. These rate filings are subject to public hearing pursuant to applicable provisions of the Administrative Procedures Act."/

Amend further, by striking SECTION 9 in its entirety and inserting:

/SECTION     9.     Section 38-77-112 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:

"Section 38-77-112.     Notwithstanding Sections 38-77-110, 38-77-920, and Section 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. An insurer or an agent shall retain, for a period of three years, the driver's license numbers for all persons who have completed and submitted an application for insurance but who were refused coverage and shall furnish such information upon the request of the Director of the Department of Insurance or his designee. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must can be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."/

Amend further, by striking SECTION 10 in its entirety and inserting:

/SECTION     10.     Section 38-77-120(a) of the 1976 Code, as last amended by Section 806 of Act 181 of 1993, is further amended to read:

"(a)     No cancellation or refusal to renew by an insurer of a policy of automobile insurance is effective unless the insurer delivers or mails, to the named insured at the address shown in the policy, a written notice of the cancellation or refusal to renew. This notice:

(1)     must be approved as to form by the director or his designee prior to before use;

(2)     shall must state the date not less than fifteen days after the date of the mailing or delivering on which the cancellation or refusal to renew becomes effective;

(3)     shall must state the specific reason or reasons of the insurer for cancellation or refusal to renew and provide for the notification required by subsection (B) of Section 38-77-390. However, those notification requirements must not apply when the policy is being canceled or not renewed for the reason set forth in Section 38-77-123(B),

(4)     must inform the insured of his right to request in writing within fifteen days of the receipt of notice that the director review the action of the insurer. The notice of cancellation or refusal to renew must contain the following statement to inform the insured of such right:

'IMPORTANT NOTICE

Within fifteen days of receiving this notice, you or your attorney may request in writing that the director review this action to determine whether the insurer has complied with South Carolina laws in canceling or nonrenewing your policy. If this insurer has failed to comply with the cancellation or nonrenewal laws, the director may require that your policy be reinstated. However, the director is prohibited from making underwriting judgments. If this insurer has complied with the cancellation or nonrenewal laws, the director does not have the authority to overturn this action.'

(5)     must inform the insured of the possible availability of other insurance which may be obtained through his agent, through another insurer, or through the South Carolina Automobile Insurance Plan. It must also state that the Department of Insurance has available an automobile insurance buyer's guide regarding automobile insurance shopping and availability, and provide applicable mailing addresses and telephone numbers, including a toll-free number if available, for contacting the Department of Insurance.

Nothing in this subsection prohibits any insurer or agent from including in the notice of cancellation or refusal to renew, any additional disclosure statements required by state or federal laws, or any additional information relating to the availability of other insurance. The insurer must disclose in writing whether the insured is ceded to the facility."/

Amend further, by striking SECTION 11 in its entirety and inserting:

/SECTION     11.     The 1976 Code is amended by adding:

"Section 38-77-121.     (A)     Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle as defined in Section 38-77-30 must have the following statement printed on or attached to the first page of the application form, in boldface type: 'THE INSURER CAN CANCEL THIS POLICY FOR WHICH YOU ARE APPLYING WITHOUT CAUSE DURING THE FIRST 90 DAYS. THAT IS THE INSURER'S CHOICE. AFTER THE FIRST 90 DAYS, THE INSURER CAN ONLY CANCEL THIS POLICY FOR REASONS STATED IN THE POLICY.'

(B)     Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle defined in Section 38-77-30 that requires the insured to disclose information as to any previous cancellation or refusal to renew must also permit the insured to offer or provide a full explanation of the reason for the cancellation or refusal to renew.

(c)     The notice required by this section must accompany the initial declarations page in the event the applicant is not provided a written copy at the time of the application and the coverage has been bound by the insurer.

(D)     The insurer may cancel without cause at any time in the first ninety days during which the policy is in effect subject to Section 38-77-122.

This section does not apply to the renewal of any policy of insurance.

Section 38-77-122.     (A)     No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 because of any one or more of the following factors: the age, sex, race, color, creed, national origin, ancestry, marital status, income level. No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 solely because of any one of the following factors: the location of residence in this State, previous refusal of automobile insurance by another insurer, prior purchase of insurance through the South Carolina Automobile Insurance Plan, or lawful occupation, including the military service, of the person seeking the coverage. Nothing in this section prohibits any insurer from limiting the issuance of motor vehicle insurance policies only to persons engaging in or who have engaged in a particular profession or occupation, or who are members of a particular religious sect.

Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data.

(B)     Any insurer or agent who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer or agent is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer or agent to enforce this section.

Section 38-77-123.     (A)(1)     No insurer shall refuse to renew an automobile insurance policy because of any one or more of the following factors:

(a)     age;

(b)     sex;

(c)     race;

(d)     color;

(e)     creed;

(f)     national origin;

(g)     ancestry;

(h)     marital status;

(I)     income level.

(2)     No insurer shall refuse to renew an automobile insurance policy solely because of any one of the following factors:

(a)     lawful occupation, including the military service;

(b)     lack of driving experience, or number of years of driving experience;

(c)     lack of supporting business or lack of the potential for acquiring such business;

(d)     one or more accidents or violations that occurred more than thirty-six months immediately preceding the upcoming anniversary date;

(e)     one or more claims submitted under the uninsured motorists coverage of the policy where the uninsured motorist is known or there is physical evidence of contact;

(f)     single claim by a single insured submitted under the medical payments coverage or medical expense coverage due to an accident for which the insured was neither wholly nor partially at fault;

(g)     one or more claims submitted under the comprehensive or towing coverages. However, nothing in this section prohibits an insurer from modifying or refusing to renew the comprehensive or towing coverages at the time of renewal of the policy on the basis of one or more claims submitted by an insured under those coverages, provided that the insurer mails or delivers to the insured at the address shown in the policy written, notice of the change in coverage at least thirty days before the renewal; or

(h)     two or fewer motor vehicle accidents within a three-year period unless the accident was caused either wholly or partially by the named insured, a resident of the same household, or other customary operator.

The use of any one of the factors listed above shall be considered unfair discrimination if that factor is not actuarially justified or is not relevant to the risk or is a mere pretext for unfair discrimination.

(3)     Nothing contained in subsection (A)(1)(f), (g), and (h) of this subsection prohibits an insurer from refusing to renew a policy where a claim is false or fraudulent. Nothing in this section prohibits an insurer from setting rates in accordance with relevant actuarial data except that no insurer may set rates based in whole or in part on race, color, creed, national origin, or ancestry, income level.

(B)     No insurer shall cancel a policy except for one or more of the following reasons:

(1)     The named insured or any other operator who either resides in the same household or customarily operates a motor vehicle insured under the policy has had his driver's license suspended or revoked during the policy period or, if the policy is a renewal, during its policy period or the ninety days immediately preceding the last anniversary of the effective date.

(2)     The named insured fails to pay the premium for the policy or any installment of the premium, whether payable to the insurer or its agent either directly or indirectly under any premium finance plan or extension of credit.

(C)     There shall be no liability on the part of and no cause of action of any nature shall arise against the director or his designees; any insurer, its authorized representatives, its agents, or its employees; or any person furnishing to the insurer information as to reasons for cancellation or refusal to renew, for any statement made by any of them in complying with this section or for providing information pertaining to the cancellation or refusal to renew. For the purposes of this section, no insurer shall be required to furnish a notice of cancellation or refusal to renew to anyone other than the named insured, any person designated by the named insured, any other person to whom such notice is required to be given by the terms of the policy and the director.

(D)     Within fifteen days of receipt of the notice of cancellation or refusal to renew, any insured or his attorney shall be entitled to request in writing to the director that he review the action of the insurer in canceling or refusing to renew the policy of the insured. Upon receipt of the request, the director shall promptly begin a review to determine whether the insurer's cancellation or refusal to renew complies with the requirements of this section and of Section 38-77-120 if the notice was sent by mail. The policy must remain in full force and effect during the pendency of the review by the director except where the cancellation or refusal to renew is for the reason set forth in subitem (2) of subsection (B) of this section, in which case the policy terminates as of the effective date stated in the notice. Where the director finds from the review that the cancellation or refusal to renew has not complied with the requirements of this section or of Section 38-77-120, he shall immediately notify the insurer, the insured, and any other person to whom such notice was required to be given by the terms of the policy that the cancellation or refusal to renew is not effective. Nothing in this section authorizes the director to substitute his judgment as to underwriting for that of the insurer.

(E)     Each insurer shall maintain for at least three years, records of cancellation and refusal to renew and copies of every notice or statement referred to in Section 38-77-120 of this section that it sends to any of its insureds.

(F)     The provisions of this section do not apply to any insurer that limits the issuance of policies of motor vehicle liability insurance to one class or group of persons engaged in any one particular profession, trade, occupation, or business. Nothing in this section requires an insurer to renew a policy of automobile insurance if the insured does not conform to the occupational or membership requirements of an insurer who limits its writings to an occupation or membership of an organization. No insurer is required to renew a policy if the insured becomes a nonresident of South Carolina.

(G)     Any insurer who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer, agent, or broker to enforce this section.

Section 38-77-124.     No insurer or agent shall refuse to issue or fail to renew a policy of motor vehicle liability insurance solely because of the age of the motor vehicle to be insured, provided the motor vehicle is licensed.

Section 38-77-126.     Insurers must disclose to the insured if the rate level is higher than the lowest rate level tier for that insurer or the group to which the insurer is a member. The insurer must provide in writing the reason for the higher tier.

Section 38-77-141.     No new policy or original premium notice of insurance covering liability arising out of the ownership, maintenance, or use of a motor vehicle may be issued or delivered unless it contains the following statement printed in boldface type, or unless the statement is attached to the front of or is enclosed with the policy or premium notice:

'IMPORTANT NOTICE

IN ADDITION TO THE INSURANCE COVERAGE REQUIRED BY LAW TO PROTECT YOU AGAINST A LOSS CAUSED BY AN UNINSURED MOTORIST, IF YOU HAVE PURCHASED LIABILITY INSURANCE COVERAGE THAT IS HIGHER THAN THAT REQUIRED BY LAW TO PROTECT YOU AGAINST LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF THE MOTOR VEHICLES COVERED BY THIS POLICY, AND YOU HAVE NOT ALREADY PURCHASED UNINSURED MOTORIST INSURANCE COVERAGE EQUAL TO YOUR LIABILITY INSURANCE COVERAGE:

(1)     YOUR UNINSURED AND UNDERINSURED MOTORIST INSURANCE COVERAGE HAS INCREASED TO THE LIMITS OF YOUR LIABILITY COVERAGE AND THIS INCREASE WILL COST YOU AN EXTRA PREMIUM CHARGE; AND

(2)     YOUR TOTAL PREMIUM CHARGE FOR YOUR MOTOR VEHICLE INSURANCE COVERAGE WILL INCREASE IF YOU DO NOT NOTIFY YOUR AGENT OR INSURER OF YOUR DESIRE TO REDUCE COVERAGE WITHIN TWENTY DAYS OF THE MAILING OF THE POLICY OR THE PREMIUM NOTICE, AS THE CASE MAY BE;

(3)     IF THIS IS A NEW POLICY AND YOU HAVE ALREADY SIGNED A WRITTEN REJECTION OF SUCH HIGHER LIMITS IN CONNECTION WITH IT, PARAGRAPHS (1) AND (2) OF THIS NOTICE DO NOT APPLY.'

After twenty days, the insurer is relieved of the obligation imposed by this subsection to attach or imprint the foregoing statement to any subsequently delivered renewal policy, extension certificate, other written statement of coverage continuance, or to any subsequently mailed premium notice.

Section 38-77-142.     (A)     No policy or contract of bodily injury or property damage liability insurance covering liability arising from the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of the vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle that is principally garaged, docked, or used in this State unless the policy contains a provision insuring the named insured and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured against liability for death or injury sustained or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the vehicle by the named insured or by any such person. Each policy or contract of liability insurance, or endorsement to the policy or contract, insuring private passenger automobiles principally garaged, docked, or used in this State, that has as the named insured an individual or husband and wife who are residents of the same household and that includes, with respect to any liability insurance provided by the policy, contract, or endorsement for use of a nonowned automobile a provision requiring permission or consent of the owner of the automobile for the insurance to apply.

(B)     No policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of a vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle principally garaged or used in this State without an endorsement or provision insuring the named insured, and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured, against liability for death or injury sustained, or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the motor vehicle by the named insured or by any other person. If an insurer has actual notice of a motion for judgment or complaint having been served on an insured, the mere failure of the insured to turn the motion or complaint over to the insurer may not be a defense to the insurer, nor void the endorsement or provision, nor in any way relieve the insurer of its obligations to the insured, provided the insured otherwise cooperates and in no way prejudices the insurer.

Where the insurer has elected to provide a defense to its insured under such circumstances and files responsive pleadings in the name of its insured, the insured is not subject to sanctions for failure to comply with discovery pursuant to the South Carolina Rules of Civil Procedure unless it can be shown that the suit papers actually reached the insured, and that the insurer has failed after exercising due diligence to locate its insured, and as long as the insurer provides such information in response to discovery as it can without the assistance of the insured.

(c)     Any endorsement, provision, or rider attached to or included in any policy of insurance which purports or seeks to limit or reduce the coverage afforded by the provisions required by this section is void.

Section 38-77-143.     A policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle excludes coverage to persons other than (I) the named insured, or (ii) directors, stockholders, partners, agents, or employees of the named insured, or (iii) residents of the household of either (I) or (ii), while those persons are employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles if there is any other valid or collectible insurance applicable to the same loss covering the persons under a policy with limits at least equal to the financial responsibility requirements specified in Section 38-77-140. Such other insurance coverages shall be primary.

If the other valid or collectible insurance has limits less than the financial responsibility requirements specified in Section 38-77-140, then the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles is applicable to the extent necessary to equal the financial responsibility requirements specified in Section 38-77-140.

If there is no other valid or collectible insurance available, the coverage afforded a person other than the named insured while that person is employed or otherwise engaged in the business of selling, repairing, servicing, storing, or parking motor vehicles must apply, but the amount recoverable must not exceed the financial responsibility requirements specified in Section 38-77-140.

Section 38-77-151.     All funds collected by the Director of the Department of Revenue under the provisions of Chapter 10 of Title 56 must be placed on deposit with the State Treasurer and held in a special fund to be known as the 'Uninsured Motorists Fund' to be disbursed as provided by law. Interest earned by the 'Uninsured Motorists Fund' must be retained by that fund. The Director of the Department of Insurance, as provided in Sections 38-77-154 and 38-77-155, may expend such funds, for the administration of this chapter; provided, however, that the Department of Insurance shall retain ten percent of the Uninsured Motorists Fund to be used by the Department of Insurance to enforce the provisions of Title 38, including Sections 38-77-112, 38-77-122, and 38-77-123, to publish for consumers an automobile insurance buyer's guide, a brochure comparing automobile insurance premiums, and to provide for a public awareness campaign.

Section 38-77-154.     The Uninsured Motorists Fund shall be under the supervision and control of the Department of Insurance. Payments from the Uninsured Motorists Fund shall be made on warrants of the Comptroller General issued on vouchers signed by a person designated by the director. The purpose of the Uninsured Motorists Fund is to reduce the cost of the insurance required by Section 38-77-150 and to protect and educate consumers as provided by Section 38-77-151.

Section 38-77-155.     The director shall distribute monies annually from the Uninsured Motorists Fund among the several insurers writing motor vehicle bodily injury and property damage liability insurance on motor vehicles registered in this State. Monies must be distributed in the proportion that each insurer's premium income for the basic uninsured motorists limits coverage bears to the total premium income for basic uninsured motorists limits coverage written in this State during the preceding year. Premium income must be gross premiums less cancellation and return premiums for coverage required by Section 38-77-150. Only insurers that maintain records satisfactory to the director shall receive any payment from the Uninsured Motorists Fund. Records must be considered satisfactory if they adequately disclose the loss experience for the coverage."/

Amend further, by striking Section 38-77-390, as contained in SECTION 16, beginning at line 21 on page 39 and ending at line 28 on page 40, and inserting:

/"Section 38-77-390.     (A)     In the event of a cancellation or nonrenewal, including those that involve policies referred to in Section 38-77-120, the insurer or agent responsible for the cancellation or nonrenewal shall give a written notice in a form approved by the director that:

(1)     either provides the applicant, policyholder, or individual proposed for coverage with the specific reason or reasons for the cancellation or nonrenewal in writing or advises the person that upon written request he may receive the specific reason or reasons in writing; and

(2)     provides the applicant, policyholder, or individual proposed for coverage with a summary of the rights established under subsection (B) of this section and Section 38-77-380.

(B)     Upon receipt of a written request within ninety business days from the date of the mailing of notice or other communication of a cancellation or nonrenewal to an applicant, policyholder, or individual proposed for coverage, the insurer or agent shall furnish to the person within twenty-one business days from the date of receipt of the written request:

(1)     the specific reason or reasons for the cancellation or nonrenewal in writing, if that information was not furnished initially in writing pursuant to subsection (A)(1);

(2)     the specific items of personal and privileged information that support those reasons; however:

(a)     the insurer or agent shall not be required to furnish specific items of privileged information if it has a reasonable suspicion, based upon specific information available for review by the director, that the applicant, policyholder, or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation, or material nondisclosure; and

(b)     specific items of medical-record information supplied by a medical-care institution or medical professional must be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer or agent prefers; and

(3)     the names and addresses of the institutional sources that supplied the specific items of information given pursuant to subsection (B)(2) of this section. However, the identity of any medical professional or medical-care institution must be disclosed either directly to the individual or to the designated medical professional, whichever the insurer or agent prefers.

(c)     The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. However, the insurer or agent making the cancellation or nonrenewal shall remain responsible for compliance with the obligations imposed by this section.

(D)     When a cancellation or nonrenewal results solely from an insured's oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) of this section may be given orally."/

Amend further, by striking SECTION 17 and inserting:

/SECTION     17.     Section 38-77-530 of the 1976 Code, as last amended by Section 818 of Act 181 of 1993, is further amended to read:

"Section 38-77-530.     The plan of operation of the facility is subject to the approval of the director or his designee which may be granted only if the plan provides for equitable apportionment of the operating expenses and profits or losses among the members. The plan may, if the director or his designee considers it feasible and equitable, make provision for separate apportionments between private passenger automobile insurance business and commercial automobile insurance business, or, alternatively or in addition to that division, the plan may make provision for separate apportionments between automobile liability insurance business, including medical payments and uninsured motorist insurance, and automobile physical damage insurance business. Any such apportionments shall must give consideration to a comparison between the writings or car-year exposures of each insurer of automobile insurance and the total writings or car-year exposures of all automobile insurers or, in the case of any separate apportionments approved by the director or his designee, a comparison between the writings or car-year exposures of each insurer within the applicable category of automobile insurance and the writings or car-year exposures of all insurers within that category.

In connection with his approval of the plan, the director or his designee may require that the plan make provision for such comparisons for a one-year period or for a longer period not to exceed five years and may provide for weighing the experience so as to attach a greater weight to the more recent experience.

In connection with the approval of the plan's provisions respecting equitable apportionment of the operating expenses or gains or losses of the facility, the director or his designee may require that the plan make provision for a comparison between each insurer's percentage of the aggregate written premiums or car-year exposures respecting automobile insurance or any such category thereof and the insurer's percentage of total cessions to the facility of such insurance or category thereof so as to provide that the insurer's portion of the operating expenses or gains or losses must be the average of the two percentages; or the director or his designee may approve or require any other similar or comparable provision for the apportionment of the expenses or gains or losses of the facility which relates insurers' shares to their respective utilization of the facility.

The plan of operation, provided that insurers writing liability and physical damage coverages to include nonowners, must commence recoupment of facility assessments by way of a surcharge on liability insurance coverage on private passenger and commercial automobile business issued by a member or through the facility. Such surcharge must be a percentage of the premium adopted by the governing board of the facility; however, the amount of the percentage of premium surcharge for the recoupment of facility assessments adopted by such board cannot exceed ten percent of the liability insurance coverage premium per insured motor vehicle or risk annually. The charges determined on the basis of the surcharge must be displayed as a part of the applicable premium charge for liability insurance coverage.

(1)     Any recoupment charge paid by policyholders must be considered premium for the purpose of calculating premium taxes and commissions and is subject to normal policy cancellation procedures.

(2)     Any net operating gains resulting from the operation of the facility must be retained by the facility, and the gains and any investment income derived from the gains must be used to offset future operating losses.

(3)     The total funds recouped by all insurers less commission and premium tax expenses and time value of money considerations must be paid to the Reinsurance Facility in accordance with the plan of operation. The governing board shall redistribute the funds to the insurers based upon each insurer's share of the Reinsurance Facility losses. Recoupment must be used solely for the purpose of recovering past facility operating deficits. The plan of operation must provide that the amount ultimately received by an individual company is not more than the company's share of the Reinsurance Facility losses, plus the time value of money.

(4)     The Reinsurance Facility shall convert to the percentage-of-premium basis of recoupment by March 1, 1999.

(5)     Servicing carrier contracts for business written by designated producers may, at the carrier's option, be extended to March 1, 2002, upon the same terms and conditions as their current contracts."/

Amend further, by striking SECTION 18 in its entirety and inserting:

/SECTION     18.     Section 38-77-590 of the 1976 Code, as last amended by Sections 821-825 of Act 181 of 1993, is further amended to read:

"Section 38-77-590.     (a)     Not more than six months after July 9, 1974, or at an earlier time as the director or his designee considers necessary by reason of complaints regarding want of access to automobile insurance in particular areas or want of outlets for producers, the director or his designee shall survey the various areas of the State to ascertain if sufficient marketing outlets exist in all areas or are available to all producers. Upon a finding by the director or his designee that insufficient marketing outlets exist in particular areas or that certain producers have been deprived of a market for risks previously serviced by them, the director or his designee may, after consultation with the facility, designate one or more insurers to service the areas through agents appointed by them or may designate the producers as the agents of any insurer. The arrangements shall must include provision for one hundred percent quota share reinsurance through the facility of any automobile insurance policy marketed through the arrangements, at the option of the insurer, and the reinsurance is not subject to the statutory provisions or regulations regarding excessive utilization of the facility.

(b)     After the effective date of this section, those producers previously designated by the director or his designee may continue to serve in that capacity under the jurisdiction and control of the governing board of the facility, except that any change in the rate of commissions allowed designated producers is subject to the approval of the director or his designee.

(c)     A producer may be designated by the governing board of the facility upon application for designation and is eligible for designation upon a finding by the governing board that the applicant meets the following qualifications:

(1)     The applicant has been, for ten continuous years, a licensed resident property and casualty insurance agent and agency owner or principal with authority from one or more licensed insurers to write liability and physical damage insurance on private passenger automobiles;

(2)     At the time of application the applicant is servicing and owns the renewals on private passenger and commercial automobile insurance business, the net premiums on which exceeded seventy-five thousand dollars of potential cedeable automobile insurance during any one of the previous five calendar years preceding the application;

(3)     Neither the applicant, nor any employee of the applicant or the applicant's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, has any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedeable to the facility;

(4)     The applicant has not contributed to his termination as agent by any insurer because of any illegal breach of agency agreement or other related, improper, or unethical conduct; and

(5)     The books, records, and accounts of the insurance business of the applicant have been audited at the expense of the applicant and found by the governing board to be indicative of a financially sound operation.

(d)     Prior to Before designation as a producer, the applicant shall furnish at his expense a bond in an amount of not less than fifty thousand dollars for the faithful performance of the duties as a producer, executed by the applicant as principal and a corporate surety licensed to do business in this State as surety, and shall also have effective errors and omissions insurance by an insurer licensed to do business in this State, with the bond and errors and omissions insurance being subject to approval by the governing board.

(e)     The governing board shall assign a specific location to each producer designated. The governing board shall determine from the director or his designee the locations assigned by him to those producers whom the director or his designee has designated. Designated producers may not open or maintain any other locations without the written authorization of the governing board; provided, however, that an applicant maintaining multiple offices on June 4, 1987, is entitled to maintain two locations as a designated agent which he owned and operated at that time and through which premiums in at least the amount of seventy-five thousand dollars were written. The governing board shall terminate the designation, and the director or his designee shall revoke all agents' licenses of any producer who does not comply with this requirement upon demand by the governing board. Upon termination, the producer's expirations on designated business become the property of the facility.

(f)     The designation of a producer by the director or his designee or the governing board is transferable to a spouse, child, parent, brother, or sister of the producer upon the designated producer's retirement, incapacity, or death. The duties of a designated producer may be performed by one or more qualified employees of the producer or the producer's corporate agency.

(g)     Neither a designated producer, nor any employee of a designated producer or the producer's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, may have any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedeable to the facility. The governing board shall terminate the designation of any producer, and the director or his designee shall revoke all licenses of the producer and of any other insurance agent and premium service company knowingly involved in this connection. Upon termination, the producer's expirations on designated business become the property of the facility.

(h)     A designated carrier who fails a claims audit shall have no new designated producer assignments until the time it passes a re-audit within a reasonable time prescribed by the governing board. If this carrier fails two claims audits, including a re-audit, within any three-year period that carrier is disqualified for renewal of its contract with the facility upon expiration of its existing contract.

A producer designated under this section may not write new private passenger and commercial automobile insurance business to be placed in the facility after March 1, 1999. A policy with an effective date after March 1, 2002 shall not be accepted by the facility."/

Amend further, by striking SECTION 19 in its entirety and inserting:

/SECTION     19.     Section 38-77-595 of the 1976 Code, as added by Act 524 of 1990, is amended by adding:

"A producer designated under this section may not write new private passenger and commercial automobile insurance business to be placed in the facility after March 1, 1999. A policy with an effective date after March 1, 2002 shall not be accepted by the facility."/

Amend further, by striking SECTION 20 in its entirety and inserting:

/SECTION     20.     Title 38, Title 77 of the 1976 Code is amended by adding:

"CHAPTER 91
Joint Underwriting Association for
Private Passenger and Commerce Automobile Insurance

Section 38-91-10.     The purposes of this chapter are to:

(a)     promote the public welfare by establishing a mechanism to provide automobile insurance to those required to have such insurance,

(b)     to provide controls over such mechanism in order to lower expenses and prevent abuses,

(c)     to provide for competitive bidding of servicing carriers,

(d)     to provide controls over the application process to prevent fraud and inaccuracies as well as other improper practices.

Section 38-91-30.     As used in this Chapter:

(a)     "Association" means the joint underwriting association established pursuant to the Provisions of this Act.

(b)     "Automobile insurance" means direct insurance against injury or damage arising out of the ownership, operation, maintenance or use of motor vehicles, or insurance against loss for damage to motor vehicles. Private passenger automobile insurance and commercial automobile insurance are two distinct kinds of automobile insurance.

(c)     "director" means the director of the insurance Department.

(d)     "Plan of Operation" means the plan of operation approved pursuant to the provisions of this Act or ordered by the director.

(e)     "Qualified applicant" means (1) a resident of this state who owns a motor vehicle registered in this state or has a valid driver's license or is required to file proof of financial responsibility under [cite financial responsibility law] in order to register his motor vehicle or obtain a driver's license, or (2) a non-resident of this state who owns a vehicle registered or principally garaged in this state; provided, however, that no one shall be a qualified applicant if he has any unpaid premium due for prior automobile insurance or if any person who usually drives the motor vehicle to be insured does not hold or is not eligible to obtain a driver's license under suspension.

(f)     "residual market mechanism" means a means of providing a market for insureds in South Carolina were the voluntary market is adequate.

Section 38-91-110.     (a)     A joint underwriting association is hereby created consisting of all insurers authorized to write and engaged in writing automobile insurance within this state. Each insurer shall be a member of the Association and shall remain a member as a condition of its authority to continue to transact such insurance in this state.

(b)     The purpose of the Association shall be to guarantee that automobile insurance will be available to any qualified applicant who is unable to procure such insurance through ordinary methods while preserving to the public the benefits of competition among financially sound automobile insurers by encouraging maximum use of the normal private insurance system.

(c)     Pursuant to the provisions of this Act and its Plan of Operation is empowered on behalf of its members:

(1)     To issue automobile insurance policies to qualified applicants or to arrange for the issuance of such policies through members of the Association.

(2)     To establish procedures for the sharing among the members of profit or loss on Association business and other costs, charges, expenses, liabilities, income, property and other assets of the Association. The assessment of members for their appropriate shares may be based on the member's premium volume or exposure units for business other than Association business or on a combination of such bases or on any other equitable basis with allowances for incentive programs for insurers to write in the voluntary market business written in the association. Allowances may be provided for existing debits and credits under any automobile insurance plans replaced or terminated as a result of this legislation.

(3)     To reinsure Association business

(4)     To establish the compensation to be paid to any licensed resident insurance agent or broker.

(5)     To join , advise, assist, associate, cooperate and contract with its members and with such organizations , associations, insurers, governmental agencies and others as may be necessary or proper to accomplish the purpose of the Association.

(6)     To sue and be sued in the name of the association. No judgement against the Association shall create any direct liability in the individual participating members thereof.

(7)     To do anything not specifically enumerated above or related thereto which is otherwise necessary or proper to accomplish the purpose of the Association.

Section 38-91-130.     (a)     Within ninety days after the effective date of this Act, the director or his designee shall call the first, or organizational meeting, of the Association and seat an Advisory Board (hereinafter referred to as the Board).

The initial Board shall consist of three individuals who are licensed agents or brokers and four consumer representatives to be appointed by the Director of Public Safety or his designee and one member from the Department of Insurance. The representative from the Department of Insurance will be a non-voting board member. Association members will be chosen as follows:

One insurer which is a member of and selected by the American Insurance Association;

    One insurer which is a member of and selected by the Alliance of American Insurers

One insurer which is a member of and selected by the National Association of Independent Insurers;

One insurer which is not affiliated with the forgoing organizations and which is elected by such nonaffiliated insurers voting in person or by proxy.

One insurer which is a domestic appointed by the Director regardless of affiliation.

The terms of office for the initial and subsequent members of the Board shall be as provided in the Plan of Operation. Such Plan shall provide for the appointment by the director of three individual s who are licensed as agents or brokers in this state. The Board shall elect a chairperson who is not an insurer representative.

No more than one representative of a domestic insurer may serve on the board at any one time. No insurer may serve on the board if such insurer is a servicing carrier for the Association or is a member of a group of insurers which has one insurer as a servicing carrier unless the carrier or group of carriers participates in the voluntary automobile market with a level at least twice the premium level for the SC Automobile Insurance Plan. If a servicing contract is awarded mid-term, then the affected representative must resign at next board meeting.

(b)     Within sixty days after the organizational meeting, the Board shall file with the director or his designee for his approval, a proposed Plan of Operation, consistent with the provisions of this Act, which shall provide for the prompt and efficient provision of automobile insurance to qualified applicants unable to procure such insurance through ordinary methods. Distinct and separate plans may be filed for private passenger automobile insurance and commercial automobile insurance. The Plan(s) of Operation shall provide for, among other matters, preliminary assessments of members for initial expenses to commence operations, establishment of necessary facilities, the operation of the Association, assessments of members to defray losses and expenses, compensation to licensed agents or brokers, eligibility requirements, the coverages and amounts of insurance to be provided and premium payment plans. The Plan(s) of Operation must be approved by the Department as evidenced by a returned copy stamped approved by the Department. The Plan(s) of Operation must include a provision that all meetings of the board will be held in Columbia if approval is given by the director. Approval must consist of request stamped approved by the Department.

(c)     If the director or his designee shall disapprove all or any part of the proposed Plan of Operation, he shall do so in writing, specifying in what respect the Plan of Operation fails to meet the requirements of this Act. Unless the Board takes other appropriate legal action to contest the disapproval, it shall within thirty days thereafter file for his review an appropriately revised Plan of Operation.

(d)     If, after a hearing , the director or his designee finds that any activity or practice of insurers participating in the association or any other residual market mechanism is unfair, unreasonable, or otherwise inconsistent with the provisions of this title, the director or his designee must issue a written order specifying in what respects such activity or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this title and require the discontinuance of such activity or practice. The director or his designee may establish a residual market mechanism by written order if the director or his designee finds that the existing residual market mechanism is unfair, unreasonable, or inconsistent with the provisions of this chapter.

(e)     Any revision of the Proposed Plan of Operation or any subsequent amendments to an approved Plan of Operation shall be subject to the provisions in subsection (c) relating to the initial Plan of Operation.

(f)     If no Plan of Operation is submitted to the director or his designee within sixty days after the organizational meeting, the director or his designee shall, after consulting with the representatives of the industry, prepare and promulgate a Plan of Operation in accordance with the requirements of this Act which shall continue in force until superseded by a Plan of Operation effective in accordance with subsections (b) and (c).

Section 38-91-210.     (a)     Any qualified applicant shall, on or after the effective date of the Plan of Operation, be entitled to apply for coverage through the Association. The application may be made on his behalf by any licensed resident agent or broker authorized by him. Every licensed resident agent or broker shall offer to place insurance through the Association for any qualified applicant for whom he is unable to procure such insurance thought he markets available to him. Coverage limits may be provided up to $250,000 per person and $500,000 per accident for bodily injury, $100,000 property damage or a combined single limit of $500,000 and fire, theft, comprehensive and collision coverage.

(b)     If the Association determines that the applicant is a qualified applicant eligible under the Plan of Operation, then the Association, upon receipt of the premium, or such portion thereof as is prescribed in the Plan of Operation, shall issue or cause to be issued a policy of automobile insurance and policy periods as are available under the Plan of Operation as may be requested.

If the director or his designee finds, after a hearing, with respect to any specified geographical area in the state, that a large number of persons are failing to gain the benefits of the Association because they do not have the services of an agent or broker, the Association shall provide service to assist the public in applying to the Association for insurance.

(c)     The Association shall monitor applications submitted to the Association in order too ascertain if applications are correct, complete and reflect that actual risk of the insured. The Association shall select a sub-committee of three board members who will review applications. The sub-committee may develop and enforce requirements on applications and if requirements are not met by agents submitting applications, shall suspend the ability of that agent to bind applications for thirty days as well as prescribe audit fees to be applied to applications from particular agents. In the event of three suspensions for a particular agent in any five year period, the ability of that agent to bind applications shall be suspended for three years. In the event of four suspensions for agents in a particular agency in any five year period, the ability of that agency to bind applications shall be suspended for three years. Appeals of the sub-committee shall be made to the full board and then the director or his designee.

The Association shall monitor agents to ensure that insureds are nor forced to purchase other insurance coverages in order for the agent to submit the application to the Association. The Association or the Director of Insurance may require agents to disclose all policies written in conjunction with a policy through the Association.

Section 38-91-220.     (a)     The classifications, rules, rating plans and policy forms proposed for use for automobile insurance issued by or through the Association may be made by the Association or by any licensed rating organization and shall be filed with the director or his designee. Such filings may incorporate by reference any other material on file with the director.

(b)     The classifications, rules, rates, rating plans and policy forms proposed for use for automobile insurance issued by or through the Association shall be subject to appropriate statutes concerning approval of filings including 38-77-910. The Association and every member shall be required to use the classifications, rules, rates, rating plans and policy forms so approved for automobile insurance issued by or through the Association for business written through the Association.

(c)     The rates used for the South Carolina Automobile Insurance Plan must be actuarially sound, self-supporting and provide adequate premiums to pay losses and expenses associated with the South Carolina Automobile Insurance Plan. Any deficits incurred by the plan should be recovered prospectively by rate changes for the South Carolina Automobile Insurance Plan.

Section 38-91-230.     (A)     Effective March 1, 1999, the Association shall file private passenger automobile loss components for automobile insurance coverages based on the total experience of all risks ceded to the South Carolina Reinsurance Facility which are actuarially sound and supported by statistical evidence. The Association shall contract with independent actuarial services to develop such loss component. Due consideration must be given to actual loss experience within the reinsurance facility for the most recent three-year period for which such information is available. The loss component developed under this section is applicable to the risk and territorial classification plan adopted by the Association.

(B)     In the initial year of operation, the expense component use to develop the final rte or premium charge when combined with the loss component filed in subsection (A) shall be that expense component filed in accordance with Section 38-73-1420 by the governing board of the Reinsurance Facility.

(c)     After the initial year of operation, rates, rating plans, and rating rules must be based upon the Underwriting Association's loss and expense experience and investment income. The resultant final rate or premium charges must be on an actuarially sound basis and must be calculated to be self-supporting.

Section 38-91-310.     The Board shall have all power to direct the operation of the Association, except as may be specifically delegated to others or reserved to the members in the Plan of Operation and may delegate ministerial duties, hire a manager and contract for goods and services from others.

Section 38-91-320.     The association shall file in the office of the department annually, by March first, a statement which contains information with respect to its transactions, condition, operations, and affairs during the preceding year. The statement shall contain such matters and information as are prescribed by the director or his designee and must be in the form he directs. The director or his designee may, at any reasonable time, require the association to furnish additional information with respect to its transactions, condition, or any matter connected therewith considered to be material and of assistance in evaluating the scope, operation, and experience of the association.

Section 38-91-330.     The director or his designee shall make an examination into the financial condition and affairs of the association at least annually and shall file a report thereon with the department, the Governor, and the General Assembly. The expenses of the examination must be paid by the association.

Section 39-91-340.     The servicing carriers for the Association may be competitively bid as provided for in this subsection. Separate bidding processes may be done for private passenger and commercial automobile insurance. If the carriers are competitively bid, then the director or his designee must appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. The committee must include incentive and disincentive programs that encourage proper claims processing of policies and claims handling. Insurers, or other vendors in conjunction with a licensed insurer, may submit bids. The committee or committees must evaluate and award contracts pursuant to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section.

Section 38-91-410.     (a)     Any applicant for an Association policy, any person insured under such a policy and any member of the Association may request a hearing and ruling the Board of the Association on any alleged violation of the Plan of Operation or any alleged improper act or ruling of the Association directly affecting it as to coverage or premium or in the case of a member directly affecting its assessment. Any member of the Association may request a hearing and ruling on the application to him of the Plan of Operation. Any such member may request the Board to act upon or to rule upon any proposed change in or addition to the Plan of Operation. The final action of the Board in respect of any such proposed changes or additions shall be deemed a formal ruling for purposes of applying sections (b) and (c) below. The request for hearing must be made with thirty days after the date of the alleged violation or improper act or ruling. The hearing shall be held within thirty days after the receipt of the request. The hearing may be held by a panel appointed by the Chairman of the Advisory Board consisting of not less than three members thereof, of which one must be a consumer representatives, and the ruling of a majority of the panel shall be deemed to be the formal ruling of the Board, unless the full Board on its own motion shall modify or rescind the action of the panel.

(b)     Any formal ruling by the Board may be appealed to the director or his designee by filing notice of appeal with the Association and director within thirty days after issuance of the ruling.

(c)     The director, after a hearing if requested in the notice of appeal, shall issue an order approving the action or decision, disapproving the action or decision, or directing the Board to reconsider the ruling.

(d)     In any hearing held pursuant to this section by the Board or the director or his designee, the Board or the Commissioner as the case may be, shall issue a ruling or order within thirty days after the close of the hearing.

(e)     All rulings or orders of the director or his designee under this section shall be subject to appeal to circuit court."/

Amend further, by striking SECTION 21 in its entirety and inserting:

/If a provision of this act or its application to a person or circumstance is held to be unconstitutional or otherwise invalid, the remainder of this act and the application of that provision to other persons or circumstances are not affected, and it must be conclusively presumed that the General Assembly would have enacted the remainder of this act without the invalid or unconstitutional provision./

Amend further, by striking SECTIONS 23, 24, 25, and 26 and inserting the following:

/SECTION     23.     The 1976 Code is amended by adding:

"Section 38-77-395.     There is no liability on the part of and no cause of action of any nature may arise against the director or his designees, any insurer, or the authorized representatives, agents, and employees of either or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation or refusal to write or renew, for any statement made by any of them in complying with this article, or for the providing of information pertaining thereto, unless the person asserting the cause of action establishes that the person against whom the cause of action is asserted was motivated by express malice or gross negligence."

SECTION     24.     The 1976 Code is amended by adding:

"Section 39-5-200.     (A)     An insurer, its agent, or an insurance broker doing business in this State may not require a person to use a particular insurance premium finance company or other installment plan for which a finance charge or other fee in connection with an installment payment has been or will be imposed.

(B)     An insurer, its agent, or an insurance broker doing business in this State may not refuse to issue a policy of insurance solely because the premiums for the policy have been advanced by a premium finance company licensed in this State.

(c)     An insurer or its agent doing business in this State shall not reduce commission or intimidate or retaliate against a producer, agent, broker, or insured who uses premium financing by denying the producer, agent, broker, or insured the same rights accorded producers, agents, brokers, or insureds who pay premiums in a different manner."

SECTION     25.     Beginning March 1, 1999, insurers may nonrenew a policy that they have currently ceded to the South Carolina Reinsurance Facility. This provision does not apply to business written through the designated producers. Insurers may no longer cede to the facility after October 1, 1999. If a provision of this act or its application to a person or circumstance is held to be unconstitutional or otherwise invalid, the remainder of this act and the application of that provision to other persons or circumstances are not affected, and it must be conclusively presumed that the General Assembly would have enacted the remainder of this act without the invalid or unconstitutional provision. Insurers are not required to cede to the facility after March 1, 1999, and business ceded after March 1, 1999, must be renewal business to the facility. All renewal business ceded after March 1, 1999, must be ceded at the rate level approved for the reinsurance facility after combining its expense component with the loss component referenced in Section 38-77-596.

SECTION     26.     Article 5 of Chapter 77, Title 38 of the 1976 Code is repealed effective January 1, 2006.

SECTION     27.     Sections 38-73-450, 38-73-455, 38-73-457, 38-73-460, 38-73-465, 38-73-720, 38-73-730, 38-73-731, 38-73-735, 38-73-750, 38-73-760, 38-73-770, 38-73-775, 38-77-110, 38-77-111, 38-77-115, 38-77-145, 38-77-285, 38-77-360, 38-77-600, 38-77-605, 38-77-610, 38-77-620, and 38-77-625 and Article 9 of Chapter 77 of Title 38 of the 1976 Code are repealed.

SECTION     28.     The provisions of this act take effect as follows: (a) Sections 1, 2, and 3 on February 1, 1999; (b) Sections 4 through 17 and Sections 19, 21, 23, 25, and 27 on March 1, 1999; and (c) Sections 3, 18, 20, 22, 24 and 26 upon approval by the Governor, except as may be otherwise specifically provided in any of those sections.

Nonrenewal notices may be sent before March 1, 1999, for policies renewing on or after March 1, 1999./

Renumber sections to conform.

Amend totals and title to conform.

Rep. CATO explained the amendment.

Rep. CATO spoke in favor of the amendment.

LEAVE OF ABSENCE

The SPEAKER granted Rep. YOUNG a temporary leave of absence.

Rep. CATO explained the Bill.

SPEAKER PRO TEMPORE IN CHAIR

Rep. CATO continued speaking.

LEAVE OF ABSENCE

The SPEAKER Pro Tempore granted Rep. BAILEY a leave of absence for the remainder of the day.

Rep. CATO continued speaking.

LEAVE OF ABSENCE

The SPEAKER Pro Tempore granted Rep. BYRD a leave of absence to attend a funeral.

Rep. CATO continued speaking.

SPEAKER IN CHAIR

Rep. KNOTTS spoke against the amendment.

Rep. KNOTTS spoke against the amendment.

Rep. GOVAN spoke against the amendment.

Rep. FELDER spoke in favor the amendment.

Rep. MACK spoke against the amendment.

Rep. KNOTTS moved to table the amendment.

Rep. CATO demanded the yeas and nays, which were taken resulting as follows:

Yeas 7; Nays 96

Those who voted in the affirmative are:

Bauer                  Cave                   Davenport
Fleming                Govan                  Knotts
Mack

Total--7

Those who voted in the negative are:

Allison                Altman                 Barfield
Barrett                Battle                 Baxley
Beck                   Boan                   Bowers
Brown, G.              Brown, H.              Brown, J.
Brown, T.              Campsen                Carnell
Cato                   Chellis                Cooper
Cotty                  Cromer                 Dantzler
Delleney               Easterday              Edge
Felder                 Gamble                 Gourdine
Hamilton               Harrell                Harrison
Harvin                 Haskins                Hawkins
Hinson                 Hodges                 Jordan
Keegan                 Kelley                 Kennedy
Kinon                  Kirsh                  Klauber
Koon                   Law                    Leach
Lee                    Limbaugh               Limehouse
Littlejohn             Loftis                 Maddox
Martin                 Mason                  McCraw
McLeod                 McMahand               McMaster
Meacham                Miller                 Moody-Lawrence
Mullen                 Neilson                Phillips
Pinckney               Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Sandifer               Seithel
Sharpe                 Sheheen                Simrill
Smith, D.              Smith, F.              Smith, J.
Smith, R.              Spearman               Stille
Stoddard               Stuart                 Townsend
Tripp                  Trotter                Vaughn
Walker                 Webb                   Whatley
Wilder                 Wilkes                 Wilkins
Woodrum                Young                  Young-Brickell

Total--96

So, the House refused to table the amendment.

The question then recurred to the adoption of the amendment, which was agreed to.

RECORD FOR VOTING

There are many reasons for which I do not vote for this amendment. But the notable reasons are, first, this insurance plan does not guarantee lower rates. In fact Rep. CATO, the committee chairman who took up this Bill, admits that auto insurance premiums will rise under this plan. Second, this Bill allows drivers to pay a $500 fee to drive uninsured. Basically, this would make insured drivers who have accidents with at fault drivers who have paid the $500 fee file claims against their uninsured motorist coverage thereby increasing their insurance premiums. This Bill has many other flaws I could note; however, space and time do not allow me to address them in this Journal.

Rep. RONALD N. FLEMING

Reps. DELLENEY and KNOTTS proposed the following Amendment No. 2 (Doc Name P:\AMEND\PT\1267DW.97), which was adopted.

Amend the report of the Committee on Labor, Commerce and Industry, as and if amended, SECTION 20, page 254-38, line 11, by striking /Section 39-91-340/ and inserting / Section 38-91-340 /.

Amend further, SECTION 20, page 254-38, line 24, by adding the following sentence:

/A serving carrier may be an entity other than a licensed insurance carrier if that entity can prove to the satisfaction of the director that it has the experience and capability to perform the duties of a servicing carrier./

Renumber sections to conform.

Amend title to conform.

Rep. DELLENEY explained the amendment.

LEAVE OF ABSENCE

The SPEAKER granted Rep. NEILSON a temporary leave of absence.

Rep. DELLENEY continued speaking.

Rep. WALKER spoke against the amendment.

Rep. MASON moved to table the amendment.

Rep. DAVENPORT demanded the yeas and nays, which were taken resulting as follows:

Yeas 24; Nays 81

Those who voted in the affirmative are:

Allison                Barrett                Bauer
Beck                   Bowers                 Brown, J.
Easterday              Edge                   Fleming
Hamilton               Harrell                Haskins
Hawkins                Kirsh                  Koon
Leach                  Loftis                 Mason
Robinson               Rodgers                Seithel
Smith, D.              Spearman               Walker

Total--24

Those who voted in the negative are:

Altman                 Barfield               Battle
Baxley                 Boan                   Breeland
Brown, G.              Brown, H.              Brown, T.
Campsen                Carnell                Cato
Chellis                Cobb-Hunter            Cooper
Cotty                  Cromer                 Dantzler
Davenport              Delleney               Felder
Gamble                 Gourdine               Govan
Harrison               Harvin                 Hinson
Hodges                 Howard                 Inabinett
Jordan                 Keegan                 Kelley
Kennedy                Kinon                  Klauber
Knotts                 Law                    Limbaugh
Limehouse              Littlejohn             Lloyd
Mack                   Martin                 McCraw
McLeod                 McMahand               McMaster
Meacham                Miller                 Moody-Lawrence
Mullen                 Parks                  Phillips
Pinckney               Quinn                  Rhoad
Rice                   Riser                  Sandifer
Scott                  Sheheen                Simrill
Smith, F.              Smith, J.              Smith, R.
Stille                 Stoddard               Stuart
Townsend               Tripp                  Trotter
Vaughn                 Webb                   Whatley
Whipper                Wilder                 Wilkes
Woodrum                Young                  Young-Brickell

Total--81

So, the House refused to table the amendment.

The question then recurred to the adoption of the amendment, which was agreed to.

Rep. WALKER proposed the following Amendment No. 3 (Doc Name P:\AMEND\GJK\20733DW.97), which was tabled.

Amend the report of the Committee on Labor, Commerce and Industry, as and if amended, in SECTION 25, page 254-40, line 20, by striking /October 1, 1999/ and inserting /March 1, 2000/

Renumber sections to conform.

Amend totals and title to conform.

Rep. WALKER explained the amendment.

Rep. CATO moved to table the amendment, which was agreed to.

Rep. KNOTTS proposed the following Amendment No. 5 (Doc Name P:\AMEND\BBM\9444JM.97), which was tabled.

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 "Safe Driver's Responsibility Act".

SECTION     2.     The 1976 Code is amended by adding:

"Section 38-73-738.     (A)     A licensed driver who is a resident of this State shall receive one safe driving credit for each year in which he receives no points for driving violations under Section 56-1-720. The driver may accumulate a maximum total of four safe driving credits.

(B)(1)     For each year for which a licensed resident driver maintains one safe driving credit, he shall pay not more than seventy-five percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title.

(2)     For each year for which a licensed resident driver maintains a total of two safe driving credits, he shall pay not more than fifty percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title.

(3)     For each year for which a licensed resident driver maintains a total of three safe driving credits, he shall pay not more than twenty-five percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title.

(4)     For each year for which a licensed resident driver maintains the allowable maximum four safe driving credits, he shall pay none of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title and he must be designated a 'safe driver' under this section.

(C)     An insurance company doing business in this State shall not charge an insured any merit rating plan points or any surcharge points for any merit rating, credit, or discount plan for automobile insurance purposes for a period of time longer than any point under Section 56-1-720, which gave rise to the imposition of such insurance points, remains upon the operating record of the insured in accordance with the provisions of Title 56.

(D)     For the purposes of the enforcement and administration of the provisions of this section and notwithstanding any other provision of Title 38 or Title 56, the liability portion of the automobile insurance provided for and required under the laws of this State applies and attaches directly to an insured's driver's license and not to the motor vehicle. When such person applies for the issuance or the renewal of a South Carolina driver's license, he must present satisfactory proof of the existence of such liability insurance coverage; otherwise, he shall not be issued a license or a renewal of his license, as is applicable under the circumstances. If the person's liability insurance coverage is, at any time, revoked, canceled, or nonrenewed, the person's insurer shall immediately notify the department or agency which issues or renews driver's licenses of the fact of such revocation, cancellation, or nonrenewal, and that department or agency shall suspend the person's driver's license until such time as the person presents to the department or agency satisfactory proof of liability insurance coverage.

(E)     An insurance company shall not place a 'safe driver', as defined in subsection (B)(4) of this section, in the Reinsurance Facility."

SECTION     3.     This act takes effect upon approval by the Governor./

Amend title to conform.

Rep. KNOTTS explained the amendment.

LEAVE OF ABSENCE

The SPEAKER granted Rep. HODGES a leave of absence.

Rep. KNOTTS continued speaking.

Rep. CATO moved to table the amendment.

Rep. KNOTTS demanded the yeas and nays, which were taken resulting as follows:

Yeas 61; Nays 38

Those who voted in the affirmative are:

Allison                Altman                 Barfield
Barrett                Battle                 Beck
Boan                   Brown, J.              Campsen
Cato                   Cooper                 Cromer
Dantzler               Easterday              Edge
Felder                 Gamble                 Hamilton
Harrison               Haskins                Hawkins
Hinson                 Jordan                 Keegan
Kelley                 Kinon                  Kirsh
Law                    Leach                  Lee
Limbaugh               Limehouse              Loftis
Martin                 Mason                  McCraw
McMahand               McMaster               Meacham
Mullen                 Phillips               Riser
Robinson               Rodgers                Sandifer
Scott                  Seithel                Simrill
Smith, D.              Smith, R.              Spearman
Stoddard               Townsend               Tripp
Trotter                Vaughn                 Webb
Wilkins                Woodrum                Young
Young-Brickell

Total--61

Those who voted in the negative are:

Bauer                  Baxley                 Bowers
Breeland               Brown, T.              Cobb-Hunter
Cotty                  Davenport              Delleney
Fleming                Gourdine               Govan
Harvin                 Howard                 Inabinett
Kennedy                Knotts                 Koon
Lloyd                  Mack                   Maddox
McLeod                 Miller                 Moody-Lawrence
Neal                   Parks                  Pinckney
Rhoad                  Rice                   Sheheen
Smith, F.              Smith, J.              Stille
Stuart                 Whatley                Whipper
Wilder                 Wilkes

Total--38

So, the amendment was tabled.

Rep. KNOTTS proposed the following Amendment No. 6 (Doc Name P:\AMEND\BBM\9449JM.97), which was tabled.

Amend the report, as and if amended, by striking lines 25 through 41 on page 254-1, and all of pages 254-2 through 254-40, and lines 1 through 5 on page 254-41.

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

/SECTION     1.     The 1976 Code is amended by adding:

"Section 38-73-736.     Any schedule of rates, rate classifications, or rating plans for automobile insurance as defined in Section 38-77-30 filed with the Department of Insurance must provide for an appropriate reduction in premium charges for those insured persons who are fifty-five years of age and older and who qualify as provided in Section 38-73-737."

SECTION     2.     The 1976 Code is amended by adding:

"Section 38-77-596.     (A)     The governing board of the South Carolina Reinsurance Facility annually shall develop and file private passenger automobile loss components for automobile insurance coverages based on the total experience of all risks ceded to the facility which are actuarially sound and supported by statistical evidence. The governing board shall contract with independent actuarial services to develop the loss component. Due consideration must be given to actual loss experience within the facility for the most recent three-year period for which such information is available.

(B)     The loss component developed under this section is applicable to the risk and territorial classification plan adopted by the facility. Nothing in this section precludes the governing board of the facility from filing for approval, or the Director of the Department of Insurance from requiring the governing board to file for approval, variations in loss components and rates which are based upon differences in risk characteristics including, but not limited to, difference in driving records.

(C)     The governing board of the facility annually shall review the private passenger automobile loss components to determine if they are actuarially-sound and supported by the statistical evidence. If rate changes are required, the governing board shall submit appropriate filings for approval with the director. All rate increases on or after March 1, 1998, must be capped at an overall ten percent increase each year. This cap does not apply on an individual insured basis. These rate filings are subject to public hearing pursuant to applicable provisions of the Administrative Procedures Act."

SECTION     3.     Section 38-77-112 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:

"Section 38-77-112.     Notwithstanding Sections 38-77-110, 38-77-920, and Section 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. At the time of application, an insurer or an agent shall retain, for a period of three years, the driver's license numbers for all applicants who were refused coverage and shall furnish such information upon the request of the Director of the Department of Insurance or his designee. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must can be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."

SECTION     4.     Section 38-77-140 of the 1976 Code is amended to read:

"Section 38-77-140.     No automobile insurance policy may be issued or delivered in this State to the owner of a motor vehicle or may be issued or delivered by an insurer licensed in this State upon any motor vehicle then principally garaged or principally used in this State, unless it contains a provision insuring the persons defined as insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles within the United States or Canada, subject to limits exclusive of interest and costs, with respect to each motor vehicle, as follows: fifteen thousand dollars because of bodily injury to one person in any one accident, and, subject to the limit for one person, thirty thousand dollars because of bodily injury to two or more persons in any one accident, and five ten thousand dollars because of injury to or destruction of property of others in any one accident. Nothing in this article prevents an insurer from issuing, selling, or delivering a policy providing liability coverage in excess of these requirements."

SECTION     5.     Section 38-77-150 of the 1976 Code, as last amended by Section 807 of Act 181 of 1993, is further amended to read:

"Section 38-77-150.     (A)     No automobile insurance policy or contract may be issued or delivered unless it contains a provision by endorsement or otherwise, herein referred to as the uninsured motorist provision, undertaking to pay the insured all sums which he is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle, within limits which may be no less than the requirements of Section 38-77-140. The uninsured motorist provision must also provide for no less than five ten thousand dollars' coverage for injury to or destruction of the property of the insured in any one accident but may provide an exclusion of the first two hundred dollars of the loss or damage. The director or his designee may prescribe the form to be used in providing uninsured motorist coverage and when prescribed and promulgated no other form may be used.

(B)     No action may be brought under the uninsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the uninsured motorist provision. The insurer has the right to appear and defend in the name of the uninsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record.

(C)     Benefits paid pursuant to this section are subject to subrogation and assignment if an uninsured motorist has selected the option to be uninsured by paying the fee pursuant to Section 56-10-510."

SECTION     6.     Section 38-77-280 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-280.     (A)     All automobile insurers, including those insurance companies writing private passenger physical damage coverages only, Any automobile insurer may, at their its own election, make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage at such rates and under such rules as have been approved by the director. Automobile insurers contracted pursuant to Section 38-77-590 for risks written by them through producers assigned by the facility governing board pursuant to that section may make available collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage. Notwithstanding Section 38-77-590(g), a designated producer may have one or more voluntary outlets for automobile physical damage.

(B)     Any automobile physical damage insurance coverage deductible or policy deductible does not apply to automobile safety glass.

(C)     Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in the uniform merit rating plan which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.

(D)     No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.

(E)     Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed with the department and approved by the director or his designee. Notwithstanding Section 38-77-111, automobile physical damage insurance coverage may be ceded to the facility. However, automobile physical damage coverages ceded to the facility by an insurer or servicing carrier must be at the facility physical damage rate as defined in Section 38-77-30.

(F)(D)     In determining the premium rates to be charged on physical damage coverage or single interest collision coverage, it is unlawful to consider race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. Nor may an insurer, agent, or broker refuse to write or renew physical damage insurance coverage or single interest collision coverage based upon race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director. If the Director of the Department of Insurance or the director's designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or the director's designee may impose a fine of up to two hundred thousand dollars. The director or the director's designee at any time may examine an insurer, agent, or broker to enforce this section. The expense of examination must be paid by the insurer, agent, or broker."

SECTION     7.     Section 38-77-350(C) of the 1976 Code, as last amended by Act 496 of 1994, is further amended to read:

"(C)     An automobile insurer is not required to make a new offer of coverage on any automobile insurance policy which renews, extends, changes, supersedes, or replaces an existing policy. However, the first renewal notices for existing policies after December 1, 1989, must include the form provided in subsection (A). A policy of automobile insurance offered or issued by a new servicing carrier for the South Carolina Reinsurance Facility to replace a policy previously issued by a former servicing carrier and containing the same coverage limits as the former policy constitutes a valid replacement policy that does not require the new servicing carrier or agent to make a new offer of coverage or to obtain a new application from the insured."

SECTION     8.     The 1976 Code is amended by adding:

"Section 38-77-370.     (A)     If an individual, after proper identification, submits a written request to an insurance-support organization for access to recorded personal information about the individual that is reasonably described by the individual and reasonably able to be located and retrieved by the insurance-support organization, the insurance-support organization, within thirty business days from the date the request is received shall:

(1)     inform the individual of the nature and substance of the recorded personal information in writing, by telephone, or by other oral communication, whichever the insurance-support organization prefers;

(2)     permit the individual to see and obtain a copy of the recorded personal information pertaining to him or to obtain a copy of the recorded personal information by mail, whichever the individual prefers, unless the recorded personal information is in coded form, in which case an accurate translation in plain language must be provided in writing;

(3)     disclose to the individual the identity, if recorded, of those persons to whom the insurance-support organization has disclosed the personal information within two years before the request, and if the identity is not recorded, the names of those insurance-support organizations or other persons to whom the information is disclosed normally; and

(4)     provide the individual with a summary of the procedures by which he may request correction, amendment, or deletion of recorded personal information.

(B)     Any personal information provided pursuant to subsection (A) of this section must identify the source of the information if it is an institutional source.

(C)     Medical record information supplied by a medical care institution or medical professional and requested under subsection (A) of this section, together with the identity of the medical professional or medical care institution that provided the information, must be supplied either directly to the individual or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer, agent, or insurance-support organization prefers. If it elects to disclose the information to a medical professional designated by the individual, the insurer, agent, or insurance-support organization shall notify the individual, at the time of the disclosure, that it has provided the information to the medical professional.

(D)     Except for personal information provided under this Section, an insurer, agent, or insurance-support organization may charge a reasonable fee to cover the costs incurred in providing a copy of recorded personal information to individuals.

(E)     The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. With respect to the copying and disclosure of recorded personal information pursuant to a request under subsection (A) of this section, an insurer, agent, or insurance-support organization may make arrangements with an insurance-support organization or a consumer reporting agency to copy and disclose recorded personal information on its behalf.

(F)     The rights granted to individuals in this section must extend to all natural persons to the extent information about them is collected and maintained by an insurer, agent, or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection must not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.

(G)     For purposes of this section, 'insurance-support organization' does not include 'consumer reporting agency'.

Section 38-77-390.     (A)     In the event of a cancellation or nonrenewal, including those that involve policies referred to in Section 38-77-120, the insurer or agent responsible for the cancellation or nonrenewal shall give a written notice in a form approved by the director that:

(1)     either provides the applicant, policyholder, or individual proposed for coverage with the specific reason or reasons for the cancellation or nonrenewal in writing or advises the person that upon written request he may receive the specific reason or reasons in writing; and

(2)     provides the applicant, policyholder, or individual proposed for coverage with a summary of the rights established under subsection (B) of this section and Section 38-77-380.

(B)     Upon receipt of a written request within ninety business days from the date of the mailing of notice or other communication of a cancellation or nonrenewal to an applicant, policyholder, or individual proposed for coverage, the insurer or agent shall furnish to the person within twenty-one business days from the date of receipt of the written request:

(1)     the specific reason or reasons for the cancellation or nonrenewal in writing, if that information was not furnished initially in writing pursuant to subsection (A)(1);

(2)     the specific items of personal and privileged information that support those reasons; however:

(a)     the insurer or agent shall not be required to furnish specific items of privileged information if it has a reasonable suspicion, based upon specific information available for review by the director, that the applicant, policyholder, or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation, or material nondisclosure; and

(b)     specific items of medical-record information supplied by a medical-care institution or medical professional must be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer or agent prefers; and

(3)     the names and addresses of the institutional sources that supplied the specific items of information given pursuant to subsection (B)(2) of this section. However, the identity of any medical professional or medical-care institution must be disclosed either directly to the individual or to the designated medical professional, whichever the insurer or agent prefers.

(C)     The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. However, the insurer or agent making the cancellation or nonrenewal shall remain responsible for compliance with the obligations imposed by this section.

(D)     When a cancellation or nonrenewal results solely from an oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) of this section may be given orally."

SECTION     9.     An insurer, its agent, or an insurance broker doing business in this State may not make or permit any discrimination in favor of individuals between insureds of the same class and risk involving the same hazards in the amount of the payment of premiums or rates charged for policies of insurance except as provided in Sections 38-57-140, 38-65-310, and 38-71-1110, in the dividends or other benefits payable, or in any other of the terms and conditions of the contracts it makes. An insurer, its agent, or an insurance broker may not make a contract of insurance or agreement as to a contract other than as plainly expressed in the policy issued. An insurer or its officer, agent, solicitor, or representative or an insurance broker may not pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the taking of insurance any special favor or advantage in the dividends or other benefits to accrue from the policy, any paid employment or contract for services of any kind, or any valuable consideration or inducement not specified in the policy contract of insurance, or give, sell, or purchase or offer to give, sell, or purchase, as inducement to the taking of insurance of in connection therewith, any stocks, bonds, or other securities of an insurer or other corporation, association, or partnership, any dividends or profits to accrue from them, or anything of value not specified in the policy.

SECTION     10.     Chapter 10, Title 56 of the 1976 Code is amended by adding:

"Section 56-10-225.     (A)     A person whose application for registration and licensing of a motor vehicle has been approved by the department must maintain in the motor vehicle at all times proof that the motor vehicle is an insured vehicle in conformity with the laws of this State and Section 56-10-510.

(B)     The owner of a motor vehicle must maintain proof of financial responsibility in the motor vehicle at all times and it must be displayed upon demand of a police officer or any other person duly authorized by law.

(C)     A person who fails to maintain the proof in his motor vehicle as required by subsection (A) is guilty of a misdemeanor and, upon conviction, is subject to the same punishment as provided by law for failure of the person driving or in control of a motor vehicle to carry the vehicle registration card and to display the registration card upon demand. A person failing to maintain in his vehicle the proof required pursuant to subsection (A), within thirty days of being cited for such failure, shall provide proof of insurance or have his driver's license suspended until satisfactory proof is provided. Further, this proof must be provided every quarter for one year after being cited for driving without proof of liability insurance. Failure to provide this proof when required shall cause his driver's license to be suspended until satisfactory proof is provided.

(D)     The penalties provided in subsection (C) are in addition to, and not in lieu of, any other penalty, of whatever nature, provided by law for failing to act as required in subsection (A)."

SECTION     11.     The 1976 Code is amended by adding:

"Section 38-73-738.     (A)     A licensed driver who is a resident of this State shall receive one safe driving credit for each year in which he receives no points for driving violations under Section 56-1-720. The driver may accumulate a maximum total of four safe driving credits.

(B)(1)     For each year for which a licensed resident driver maintains one safe driving credit, he shall pay not more than seventy-five percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title.

(2)     For each year for which a licensed resident driver maintains a total of two safe driving credits, he shall pay not more than fifty percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title.

(3)     For each year for which a licensed resident driver maintains a total of three safe driving credits, he shall pay not more than twenty-five percent of the recoupment fee otherwise chargeable or applicable to him pursuant to the provision of this title.

(4)     For each year for which a licensed resident driver maintains the allowable maximum four safe driving credits, he shall pay none of the recoupment fee otherwise chargeable or applicable to him pursuant to the provisions of this title and he must be designated a 'safe driver' under this section.

(C)     An insurance company doing business in this State shall not charge an insured any merit rating plan points or any surcharge points for any merit rating, credit, or discount plan for automobile insurance purposes for a period of time longer than any point under Section 56-1-720, which gave rise to the imposition of such insurance points, remains upon the operating record of the insured in accordance with the provisions of Title 56.

(D)     For the purposes of the enforcement and administration of the provisions of this section and notwithstanding any other provision of Title 38 or Title 56, the liability portion of the automobile insurance provided for and required under the laws of this State applies and attaches directly to an insured's driver's license and not to the motor vehicle. When such person applies for the issuance or the renewal of a South Carolina driver's license, he must present satisfactory proof of the existence of such liability insurance coverage; otherwise, he shall not be issued a license or a renewal of his license, as is applicable under the circumstances. If the person's liability insurance coverage is, at any time, revoked, canceled, or nonrenewed, the person's insurer shall immediately notify the department or agency which issues or renews driver's licenses of the fact of such revocation, cancellation, or nonrenewal, and that department or agency shall suspend the person's driver's license until such time as the person presents to the department or agency satisfactory proof of liability insurance coverage.

(E)     An insurance company shall not place a 'safe driver', as defined in subsection (B)(4) of this section, in the Reinsurance Facility."

SECTION     12.     This act takes effect November 1, 1997./

Amend title to conform.

Rep. KNOTTS explained the amendment.

Rep. CATO moved to table the amendment, which was agreed to by a division vote of 58 to 26.

Reps. CATO, JENNINGS, BAXLEY, COBB-HUNTER, CLYBURN and KNOTTS proposed the following Amendment No. 8 (Doc Name P:\AMEND\BBM\9167JM.97), which was adopted.

Amend the bill, as and if amended, by striking Sections 38-77-122, 38-77-123, and 38-77-124, as contained in SECTION 11, beginning on page 254-18 at line 28 and ending on page 254-22 at line 2, and inserting the following:

/Section 38-77-122.     (A)     No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 because of any one or more of the following factors: the age, sex, location of residence in this State, race, color, creed, national origin, ancestry, marital status, or income level. No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 solely because of any one of the following factors: the previous refusal of automobile insurance by another insurer, prior purchase of insurance through the South Carolina Automobile Insurance Plan, or lawful occupation, including the military service, of the person seeking the coverage. Nothing in this section prohibits any insurer from limiting the issuance of motor vehicle insurance policies only to persons engaging in or who have engaged in a particular profession or occupation, or who are members of a particular religious sect.

Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data.

(B)     In determining the premium rates to be charged for an automobile insurance policy as defined in Section 38-77-30, it is unlawful to consider race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. Nor may an insurer, agent, or broker refuse to write or renew an automobile insurance policy as defined in Section 38-77-30 based upon race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director. Any insurer or agent who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer or agent is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer or agent to enforce this section. The expense of examination must be paid by the insurer, agent, or broker.

Section 38-77-123.     (A)(1)     No insurer shall refuse to renew an automobile insurance policy because of any one or more of the following factors:

(a)     age;

(b)     sex;

(c)     location of residence in this State;

(d)     race;

(e)     color;

(f)     creed;

(g)     national origin;

(h)     ancestry;

(I)     marital status;

(j)     income level.

(2)     No insurer shall refuse to renew an automobile insurance policy solely because of any one of the following factors:

(a)     lawful occupation, including the military service;

(b)     lack of driving experience, or number of years of driving experience;

(c)     lack of supporting business or lack of the potential for acquiring such business;

(d)     one or more accidents or violations that occurred more than thirty-six months immediately preceding the upcoming anniversary date;

(e)     one or more claims submitted under the uninsured motorists coverage of the policy where the uninsured motorist is known or there is physical evidence of contact;

(f)     single claim by a single insured submitted under the medical payments coverage or medical expense coverage due to an accident for which the insured was neither wholly nor partially at fault;

(g)     one or more claims submitted under the comprehensive or towing coverages. However, nothing in this section prohibits an insurer from modifying or refusing to renew the comprehensive or towing coverages at the time of renewal of the policy on the basis of one or more claims submitted by an insured under those coverages, provided that the insurer mails or delivers to the insured at the address shown in the policy written, notice of the change in coverage at least thirty days before the renewal; or

(h)     two or fewer motor vehicle accidents within a three-year period unless the accident was caused either wholly or partially by the named insured, a resident of the same household, or other customary operator.

(3)     Nothing contained in subsection (A)(1)(f), (g), and (h) of this subsection prohibits an insurer from refusing to renew a policy where a claim is false or fraudulent. Nothing in this section prohibits an insurer from setting rates in accordance with relevant actuarial data except that no insurer may set rates based in whole or in part on race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director. Any insurer or agent who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer or agent is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer or agent to enforce this section. The expense of examination must be paid by the insurer, agent, or broker.

(B)     No insurer shall cancel a policy except for one or more of the following reasons:

(1)     The named insured or any other operator who either resides in the same household or customarily operates a motor vehicle insured under the policy has had his driver's license suspended or revoked during the policy period or, if the policy is a renewal, during its policy period or the ninety days immediately preceding the last anniversary of the effective date.

(2)     The named insured fails to pay the premium for the policy or any installment of the premium, whether payable to the insurer or its agent either directly or indirectly under any premium finance plan or extension of credit.

(C)     There shall be no liability on the part of and no cause of action of any nature shall arise against the director or his designees; any insurer, its authorized representatives, its agents, or its employees; or any person furnishing to the insurer information as to reasons for cancellation or refusal to renew, for any statement made by any of them in complying with this section or for providing information pertaining to the cancellation or refusal to renew. For the purposes of this section, no insurer shall be required to furnish a notice of cancellation or refusal to renew to anyone other than the named insured, any person designated by the named insured, any other person to whom such notice is required to be given by the terms of the policy and the director.

(D)     Within fifteen days of receipt of the notice of cancellation or refusal to renew, any insured or his attorney shall be entitled to request in writing to the director that he review the action of the insurer in canceling or refusing to renew the policy of the insured. Upon receipt of the request, the director shall promptly begin a review to determine whether the insurer's cancellation or refusal to renew complies with the requirements of this section and of Section 38-77-120 if the notice was sent by mail. The policy must remain in full force and effect during the pendency of the review by the director except where the cancellation or refusal to renew is for the reason set forth in subitem (2) of subsection (B) of this section, in which case the policy terminates as of the effective date stated in the notice. Where the director finds from the review that the cancellation or refusal to renew has not complied with the requirements of this section or of Section 38-77-120, he shall immediately notify the insurer, the insured, and any other person to whom such notice was required to be given by the terms of the policy that the cancellation or refusal to renew is not effective. Nothing in this section authorizes the director to substitute his judgment as to underwriting for that of the insurer.

(E)     Each insurer shall maintain for at least three years, records of cancellation and refusal to renew and copies of every notice or statement referred to in Section 38-77-120 of this section that it sends to any of its insureds.

(F)     The provisions of this section do not apply to any insurer that limits the issuance of policies of motor vehicle liability insurance to one class or group of persons engaged in any one particular profession, trade, occupation, or business. Nothing in this section requires an insurer to renew a policy of automobile insurance if the insured does not conform to the occupational or membership requirements of an insurer who limits its writings to an occupation or membership of an organization. No insurer is required to renew a policy if the insured becomes a nonresident of South Carolina.

(G)     Any insurer who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. The director or his designee at any time may examine an insurer, agent, or broker to enforce this section.

Section 38-77-124.     (A)     Notwithstanding the provisions of Sections 38-77-122 and 38-77-123, an insurer may refuse to issue refuse to issue or renew an automobile insurance policy as defined in Section 38-77-30 on the basis of location of residence where the insurance where insurer has filed with the director a territorial plan setting forth the precise geographic areas of the state in which it will issue or renew policies. This territorial plan may not limit issuances or renewals to areas at any level smaller than a county, except that an insurer may include in its territorial plan an area smaller than an county which is contiguous to a whole county contained within the territorial plan provided that the inclusion in the territorial plan of any such area at a level smaller than a county does not have the effect of excluding populations based upon any factors set out in Section 38-77-122(A) or Section 38-77-123(A)(1). The director must reject any territorial plan which violates the provisions of this section.

(B)     No insurer or agent shall refuse to issue or fail to renew a policy of motor vehicle liability insurance solely because of the age of the motor vehicle to be insured, provided the motor vehicle is licensed./

Amend further, by striking item (5.5)(d) of Section 38-77-30, as contained in SECTION 7, at lines 24 - 34 on page 254-11 and inserting:

/"(d)     Individual private passenger automobile does not include:

(i)     motor vehicles that are used for public or livery conveyance or rented to others without a driver;

(ii)     fire department vehicles, police vehicles, ambulances, and rescue squad vehicles which are publicly owned;

(iii)     motorcycles, motor-driven cycles, motor scooters, and mopeds;

(iv)     dune buggies, all-terrain vehicles, go carts, and snowmobiles;

(v)     golf carts; and

(vi)     small commercial risks./

Amend further, by striking Section 38-77-30(13)(c), at lines 37-40 on page 254-13 of the Committee Report and as contained in SECTION 7, and inserting:

/(c)     Commercial risks which have a load capacity less than ten thousand pounds manufacturer's gross vehicular weight less than twenty thousand pounds and are not required to have a mandatory filing by a governmental authority other than an SR-22./

Amend further, by striking /38-77-910/ at line 42 on page 254-36 of the Committee Report, as contained in Section 38-91-220(b) of SECTION 20, and inserting /Section 38-73-910/. Thus, Section 38-91-220(b), beginning at line 39 on page 254-36 and ending at line 4 on page 254-37, shall read as follows:

/(b)     The classifications, rules, rates, rating plans and policy forms proposed for use for automobile insurance issued by or through the Association shall be subject to appropriate statutes concerning approval of filings including Section 38-73-910. The Association and every member shall be required to use the classifications, rules, rates, rating plans and policy forms so approved for automobile insurance issued by or through the Association for business written through the Association./

Amend further, by striking the word /three/ at line 37 and at line 39 on page 254-4, as contained in Section 56-10-535, SECTION 2, and inserting /six/.

Amend further, by striking the words /seven hundred fifty/ at line 38 and at line 41 on page 254-4, as contained in Section 56-10-535, SECTION 2, and inserting /one thousand/.

Amend title to conform.

Rep. CATO explained the amendment.

The question then recurred to the adoption of the amendment.

Rep. SCOTT demanded the yeas and nays, which were taken resulting as follows:

Yeas 103; Nays 0

Those who voted in the affirmative are:

Allison                Altman                 Barfield
Barrett                Battle                 Bauer
Baxley                 Beck                   Boan
Bowers                 Breeland               Brown, G.
Brown, H.              Brown, J.              Brown, T.
Campsen                Cato                   Cave
Chellis                Cobb-Hunter            Cooper
Cotty                  Cromer                 Dantzler
Davenport              Delleney               Easterday
Edge                   Fleming                Gamble
Gourdine               Govan                  Hamilton
Harrison               Harvin                 Haskins
Hawkins                Hinson                 Howard
Inabinett              Jordan                 Keegan
Kelley                 Kennedy                Kinon
Kirsh                  Knotts                 Koon
Law                    Leach                  Lee
Limbaugh               Limehouse              Lloyd
Loftis                 Mack                   Maddox
Martin                 McCraw                 McLeod
McMahand               McMaster               Meacham
Miller                 Moody-Lawrence         Mullen
Neal                   Parks                  Phillips
Pinckney               Quinn                  Rhoad
Rice                   Riser                  Robinson
Rodgers                Sandifer               Scott
Seithel                Sharpe                 Sheheen
Simrill                Smith, D.              Smith, F.
Smith, J.              Smith, R.              Spearman
Stille                 Stoddard               Stuart
Townsend               Tripp                  Trotter
Vaughn                 Walker                 Webb
Whatley                Whipper                Wilder
Wilkins                Woodrum                Young
Young-Brickell

Total--103

Those who voted in the negative are:

Total--0

So, the amendment was adopted.

STATEMENT FOR JOURNAL

I had an emergency dental appointment and had I been present, I would have voted in favor of Amendment No. 8.

Rep. DENNY W. NEILSON

Rep. MEACHAM proposed the following Amendment No. 11 (Doc Name P:\AMEND\BBM\9160JM.97), which was tabled.

Amend the bill, as and if amended, Section 38-77-30(1), as contained in SECTION 7, on page 254-10, before the /./ on line 30, by inserting / , and also includes the personal protection policy as defined in Section 38-78-30(C) /

Amend further, by adding the following appropriately numbered SECTION to read:

/SECTION     _____.     A.     Title 38 of the 1976 Code is amended by adding:

"CHAPTER 78
Consumer Freedom of Choice in
Motor Vehicle Insurance

Section 38-78-10.     This chapter may be cited as the 'Consumer Freedom of Choice in Motor Vehicle Insurance Act'.

Section 38-78-20.     (A)     Under existing law, the ability of a person to recover losses incurred as a result of a motor vehicle accident is limited by factors over which the accident victim has no control. The recovery is dependent on the conduct of the other driver, the amount of liability insurance carried by the other driver, and the financial resources of the other driver. Two individuals who have received identical injuries may recover markedly different amounts. Under existing law, many individuals receive little or no compensation for their losses.

(B)     This chapter gives motorists the right to choose the kinds of personal protection available in case of an automobile accident and the amount of financial protection they deem appropriate and affordable. Instead of being forced to buy traditional fault liability insurance to protect strangers, motorists will have the opportunity to buy a new personal protection policy to protect themselves and their family members regardless of fault in the event of a motor vehicle accident. Motorists will also have the right to reject the provisions of this chapter, and thus retain all rights to sue and be sued for both economic and noneconomic loss based on fault, under the existing fault liability insurance system.

(C)     The interaction between traditional fault liability insurance and the personal protection policy is as follows:

(1)     Motorists who choose the traditional fault liability insurance and who are involved in an accident with any other motorist essentially will retain the system existing now where they have the opportunity to claim and sue based on fault for both economic and noneconomic damages. They will also remain subject to being sued for such liability to others based on fault.

(2)     Motorists who choose the new personal protection policy system established by this chapter and who are involved in an accident with a motorist who has chosen traditional fault liability insurance will be promptly compensated for their own economic losses regardless of fault. A personal protection insured can claim against and sue the other motorist, based on fault, for economic damages if the damages exceed their personal protection limits and for noneconomic damages if their injury exceeds the verbal threshold. They will also remain in this circumstance subject to being sued for such liability to others based on fault.

(3)     Two motorists who each choose the personal protection policy and who are involved in an accident with each other will be promptly compensated under their own policies for their own economic losses regardless of fault. In this situation, the two motorists who have chosen the personal protection policy do not have the right to claim and sue for full damages based on fault unless the injury exceeds the verbal threshold but if either suffers a loss in excess of his or her policy's benefit levels, that person retains the right to claim and sue for uncompensated economic loss based on fault.

(4)     If a motorist who has chosen fault liability insurance is involved in an accident with an uninsured motorist, the policyholder can be compensated for losses under the uninsured motorist provisions of his or her own policy based on fault and has the right to claim against and sue the uninsured motorist for full damages based on fault. The uninsured motorist forfeits any right to claim for property damage up to ten thousand dollars and for noneconomic loss against the motorist who has chosen fault liability insurance, except where the motorist choosing fault liability insurance was driving under the influence of alcohol or illegal drugs or committed intentional misconduct.

(5)     If a motorist who has chosen the personal protection policy is involved in an accident with an uninsured motorist, the policyholder will be promptly compensated for economic losses under his or her personal protection policy regardless of fault and has the right to claim against and sue the uninsured motorist for noneconomic damages based on fault if the injury exceeds the verbal threshold. The uninsured motorist forfeits any right to claim for the first ten thousand dollars of property damage and for noneconomic loss against the motorist who has chosen the personal protection policy, except where such motorist was driving under the influence of alcohol or illegal drugs or committed intentional misconduct.

(D)     The initial rate to be charged by each automobile insurer for the basic personal protection policy required by this act shall be at least fifteen percent lower than the approved rate for the minimum limits prescribed by Sections 38-77-140 and 38-77-150 by class and territory for each automobile insurance risk in effect on September 30, 1998. The rate for the basic personal protection policy cannot be increased for automobile insurance policies issued or renewed with effective dates between October 1, 1998, through September 30, 1999.

(E)     A motorist who purchases the personal protection policy will have five thousand dollars of property damage liability insurance as part of his mandatory coverage.

(F)     To the extent the terms of Section 38-78-20 may differ from the terms of Section 38-78-30, the terms of Section 38-78-30 govern.

Section 38-78-30.     As used in this chapter, unless the context otherwise requires:

(A)     'Accidental bodily injury' means bodily injury, sickness, or disease, or death resulting therefrom, arising out of the ownership, operation, or use of a motor vehicle, or while occupying such vehicle, which is accidental as to the person insured.

(B)     'Added personal protection' means an optional policy, plan, or coverage for personal protection which each insurer issuing motor vehicle liability insurance in this State shall make available in the limits set by Section 38-77-110(B)(5).

(C)     'Basic personal protection' means a policy, plan, or coverage for personal protection which provides benefits for net loss resulting from accidental bodily injury resulting from a motor vehicle accident and liability coverage in at least the amounts prescribed by Section 38-77-140. Basic personal protection benefits consist of the following, with an aggregate limit of fifteen thousand dollars per person arising out of one motor vehicle accident:

(1)     medical expenses;

(2)     loss of income from work, up to two hundred dollars per week;

(3)     replacement services loss, up to one hundred dollars per week;

(4)     death benefits of five thousand dollars if the death of the injured person occurs within one year after the date of a motor vehicle accident and was a direct result of the accident.

Each basic personal protection insurer is permitted to incorporate in added personal protection benefits coverage such terms, conditions, and exclusions as may be consistent with the premiums charged.

Motorcycles may not be covered by a personal protection policy.

(D)     'Cause of action for injury' means a claim for accidental bodily injury for economic or noneconomic loss, or both, caused by the negligent conduct or intentional misconduct of another person, and includes a claim by any person other than a person suffering accidental bodily injury based on such injury including, but not limited to, loss of consortium, companionship, or any derivative claim.

(E)     'Director' means the Director of the Department of Insurance or his designee.

(F)     'Dependent' means all persons related to another person by blood, marriage, adoption, or otherwise who reside in the same household at the time of the accidental bodily injury and receive financial services or support for him or her.

(G)     'Economic loss' means actual pecuniary loss and actual monetary expenses incurred by or on behalf of an injured person as the result of an accidental bodily injury consisting only of medical expense, work loss, replacement services loss, and death benefits.

(H)     'Governmental unit' means the United States government, the government of the State of South Carolina, and any agency, authority, board, department, division, commission, institution, bureau, or like governmental entity of either such government, or any local government in this State, and such units thereof including, but not limited to, counties, cities, towns, and other regional governments.

(I)     'Injured person' means a person who sustains accidental bodily injury when eligible for benefits under a policy providing personal protection. The term also includes, where appropriate, the personal representative of an estate.

(J)     'Intentional misconduct' means conduct whereby harm is intentionally caused or attempted to be caused by one who acts or fails to act for the purpose of causing harm or with knowledge that harm is substantially certain to follow when such conduct caused or substantially contributed to the harm claimed for. A person does not intentionally cause or attempt to cause harm

(1) merely because his or her act or failure to act is done with the realization that it creates a grave risk of causing harm or

(2) if the act or omission causing bodily harm is for the purpose of averting bodily harm to oneself or another person.

(K)     'Loss of income from work' means eighty percent loss of gross income from the work the injured person would have continued to perform if he or she had not been injured, reduced by any income from substitute work actually performed by him or her or by income he or she would have earned in available appropriate substitute work he or she was capable of performing but unreasonably failed to undertake. In order to be eligible for these benefits, the injured person must have been in an occupational status, earning or producing income, immediately prior to the accident. Loss of income from work does not include any loss after the death of the injured person, and payment for the period of disability shall not exceed two years from the date of the accident.

Loss of income from work may be excluded from an insured's policy, at the policyholder's request, with an appropriate reduction in the premium.

(L)     'Medical expenses' means usual and customary amounts incurred by an injured person for necessary medical, surgical, radiological, dental, chiropractic, ambulance, hospital, medical rehabilitation and professional nursing services, eyeglasses, hearing aids, and prosthetic devices. Medical expense may include nonmedical remedial treatment rendered in accordance with a recognized religious method of healing. The words 'incurred by' include medical expenses incurred on behalf of an injured person by a parent or guardian if the injured person is a minor or incompetent, or by a surviving spouse if the injured person is deceased. Personal protection insurers may review medical expenses to assure that the expenses are reasonable and necessary according to generally accepted standards of medical practice. Under basic personal protection and added personal protection, medical expenses are promptly payable to the injured person for covered expenses incurred within two years after the date of the accident. 'Medical expenses' do not include:

(1)     that portion of a charge for a room in a hospital, clinic, or convalescent or nursing home, or any other institution engaged in providing nursing care and related services, in excess of a reasonable and customary charge for semi-private accommodations, unless medically required; or

(2)     treatments, services, products, or procedures that are experimental in nature, or for research, or not primarily designed to serve a medical purpose, or which are not commonly and customarily recognized throughout the medical profession and within the United States as appropriate treatment of the accidental bodily injury, or which are not performed by a professional licensed by the professional's licensing board pursuant to Title 40.

(M)     'Medical rehabilitation' means rehabilitation services which are reasonable and necessary to reduce the disability and help to restore the pre-accident level of physical functioning of the injured person.

(N)     'Motor vehicle' is defined by Section 38-77-30(7).

(O)     'Noneconomic loss' means any loss other than economic loss and includes, but is not necessarily limited to, pain, suffering, inconvenience, physical impairment, mental anguish, emotional pain and suffering, hedonic damages, and loss of any of the following: earning capacity, consortium, society, companionship, comfort, protection, marital care, parental care, filial care, attention, advice, counsel, training, guidance, or education. Noneconomic loss does not include economic loss caused by pain and suffering or by physical impairment.

(P)     'Occupying' means to be in or upon a motor vehicle or engaged in the immediate act of entering into or alighting from the motor vehicle.

(Q)     'Operation or use' means operation or use of a motor vehicle as a motor vehicle including, incident to its operation or use as a vehicle, occupying it. Operation or use of a motor vehicle does not cover conduct within the course of a business of manufacturing, selling, or maintaining a motor vehicle, including repairing, servicing, washing, loading, or unloading, nor does it include such conduct not within the course of such a business, unless such conduct occurs while occupying a motor vehicle.

(R)     'Owner' means the person or persons, other than a lienholder or secured party, who owns or has title to a motor vehicle or is entitled to the use and possession of a motor vehicle subject to a security interest held by another person. Owner does not include (i) a lessee under a lease not intended as security, or (ii) the United States of America or any agency thereof, except with respect to motor vehicles for which it has elected to provide insurance.

(S)     'Person' includes an organization, public or private.

(T)     'Personal protection' means a policy, plan, or coverage which provides basic or added personal protection benefits for loss resulting from accidental bodily injury, regardless of fault.

(U)     'Personal protection insured' means:

(1)     a person identified by name as an insured in a contract providing personal protection benefits;

(2)     while residing in the same household with a named insured, the following persons:

(a)     a spouse or other relative of a named insured; or

(b)     a minor in the custody of a named insured. A person resides in the same household if he or she usually makes his or her home in the same family unit, even though he or she temporarily lives elsewhere;

(3)     a person with respect to accidents within this State who sustains accidental bodily injury while occupying or when struck as a pedestrian by a motor vehicle insured for personal protection, unless the person has rejected the coverage under Section 38-78-120.

(V)     'Personal protection insurer' means an automobile insurer providing personal protection benefits.

(W)     'Replacement services loss' means expenses reasonably incurred in obtaining ordinary and necessary services from others, not members of the injured person's household, in lieu of those the injured person would have performed for the benefit of the household. Replacement services loss does not include any loss incurred after the death of an injured person, and the disability period shall not exceed two years from the date of the accident.

(X)     'Resident relative' means a person related to the owner of a motor vehicle by blood, marriage, adoption, or otherwise and residing in the same household. A person resides in the same household if he or she usually makes his or her home in the same family unit, even though temporarily living elsewhere.

(Y)     'Serious injury' means an accidental bodily injury which results in death, serious and permanent loss of an important bodily function, permanent and serious bodily injury determined objectively within reasonable medical probability, or serious and permanent disfigurement.

(Z)     'Uncompensated economic loss' means that portion of economic loss arising out of an accidental bodily injury of an injured person which exceeds the benefits provided by a personal protection insurer under a policy providing such benefits (except for loss incurred by a deductible under such a policy) and collateral sources.

(aa)     'Uninsured motorist' means the owner or operator of a motor vehicle uninsured for either basic personal protection or liability insurance at the limits prescribed by this state's financial responsibility laws or who otherwise fails to comply with the financial responsibility laws of this State.

(bb)     'Uninsured motor vehicle' means a motor vehicle required to be registered as to which (i) there is no bodily injury liability insurance and property damage liability insurance, (ii) no bond has been given or cash or securities delivered in lieu thereof, (iii) the owner has not qualified as a self-insurer, and (iv) there is no basic or added personal protection insurance as defined in Section 38-78-30.

(cc)     'Reasonable and necessary' means usual and customary charges for necessary medical treatment.

(dd)     'Permanent' means an injury whose effects cannot be eliminated by further time for recovery or by further treatment and care, including surgery.

(ee)     'Prevailing party' means the insured deemed to be the 'prevailing party' for purposes of this section if the award is at least the amount requested in writing of the insurer not less than ten days prior to the trial. The insurer shall be deemed to be the prevailing party if the award is no more than the amount offered by the insurer in writing not less than ten days prior to the trial. There shall be 'no prevailing party' if the award is more than offered by the insurer, but less than requested by the insured.

(ff)     'Reasonable proof' means itemized medical bills or other medical records necessary to determine specific patient information, dates of treatment, a specific diagnosis, the specific services rendered and the specific charges for each of the services rendered. If an insurer requests information in addition to the proof submitted, they must specifically identify the additional information needed and why it is needed.

(gg)     'Serious' means only an injury which has a substantial bearing on the injured person's ability to resume substantially all of his normal activities and lifestyle.

Section 38-78-40. Each motor vehicle required to be registered in this State shall be insured for basic personal protection as defined by Section 38-78-30(C) and security for payment of tort liabilities as required by Section 38-77-140, unless the owner of the motor vehicle exercises his or her right of rejection under Section 38-78-120. This insurance may be provided by a contract of insurance or by qualifying as a self-insurer in compliance with Section 56-9-60. An insurance policy written by a personal protection insurer under this chapter to provide basic personal protection is deemed to include all coverages required by this chapter, including the minimum tort liability coverage. Coverage under basic personal protection meets the requirements of this state's financial responsibility laws.

Section 38-78-50.     Every personal protection insured must be offered uninsured motorist coverage as required by Section 38-77-150. Additional uninsured motorist coverage and underinsured motorist coverage must be offered to the insured as required by Section 38-77-160. All other provisions, rights, and obligations in Sections 38-77-150 and 38-77-160 apply to the personal protection insured and the insurer. A personal protection insured may not recover under the uninsured motorist provision of the personal protection policy if the personal protection insured was at fault in the accident. Noneconomic damages may only be recovered under this provision if the threshold as defined in Section 38-78-110 is reached.

Section 38-78-55.     Regardless of the number of motor vehicles involved, policies issued, persons covered, claims made, or premiums paid, the liability limits for multiple coverages under one or more automobile insurance policies must not be combined or added together to determine the maximum limit of coverage available to an injured person. Unless the insurance policy or contract clearly provides otherwise, the policy or contract may provide that if two or more policies, plans, or coverages apply equally to the same accident, the highest limit of liability applicable is the maximum amount available to an injured person under any one of the policies, plans, or coverages.

Section 38-78-60.     (A)     A personal protection insurer shall pay to a personal protection insured benefits for accidental bodily injury sustained within the United States, its territories, or possessions or Canada.

(B)     A personal protection policy issued in this State contains coverage such that it satisfies the liability insurance requirements of the financial responsibility laws of any other state or Canadian province in which the insured motor vehicle is operated.

Section 38-78-70.     (A)     A personal protection insurer has no obligation to provide benefits to or on behalf of an injured person who at the time of the accident:

(1)     was involved in a motor vehicle accident while committing a felony or while voluntarily occupying a motor vehicle that he or she knew to be stolen. If the person dies as a result of his or her own intentional misconduct, his or her survivors are not entitled to personal protection for loss arising from the decedent's injury or death;

(2)     was driving under the influence of alcohol or illegal drugs;

(3)     was occupying an uninsured motor vehicle owned by the person;

(4)     was guilty of intentional misconduct. If the person dies as a result of his or her own intentional misconduct, his or her survivors are not entitled to personal protection for loss arising from the decedent's injury or death;

(5)     has rejected the limitation on his or her right to sue under Section 38-78-120;

(6)     was an uninsured motorist;

(7)     was operating or occupying a motor vehicle with three or fewer load-bearing wheels;

(8)     was operating an insured vehicle without the express or implied consent of the owner; or

(9)     was injured while occupying a motor vehicle owned by, or furnished or available for the regular use of the injured person or the injured person's resident spouse or relative, if such motor vehicle is not described in the policy under which a claim is made, or is not a newly acquired or replacement motor vehicle covered under the terms of the policy.

(B)     A personal protection insurer may include in personal protection coverage any person under subsection (A) if the insurer states its intent to do so clearly on the policy.

Section 38-78-80.     At the option of the personal protection insurer, personal protection benefits are payable to any of the following persons:

(1)     the injured person;

(2)     the parent or guardian of the injured person, if the injured person is a minor or incompetent;

(3)     a survivor, executor, or administrator of the injured person; or

(4)     any other person or organization rendering the services for which payment is due.

Section 38-78-90.     (A)     Subject to Section 38-78-80, a person who is entitled to receive personal protection benefits may claim the benefits in the following order up to the limits of personal protection in the listed category:

(1)     personal protection covering the motor vehicle involved in the accident, if the person injured was an occupant of or was struck by the motor vehicle. If the personal protection insurer providing such insurance disclaims coverage, the injured person shall be entitled to benefits under any contract of personal protection insurance under which he is a personal protection insured and the insurer making such payments shall be entitled to contest the disclaimer and seek full reimbursement from the insurer disclaiming coverage;

(2)     the personal protection under which the injured person is or was an insured.

(B)     If two or more insurers at the same priority level are obligated to pay personal injury benefits, the insurer against whom the claim is first made shall pay the claim and may thereafter, recover pro rata contributions from any other insurer at the same priority level for the cost of the payments and for processing the claim. Disputes among insurers may be resolved only by inter-company arbitration or inter-company agreement. For purposes of this section, an unoccupied parked motor vehicle is not a motor vehicle involved in an accident unless it is parked in such a way as to cause an unreasonable risk of injury.

Section 38-78-100.     (A)     A personal protection insurer is obligated to indemnify an injured person, except that benefits payable for the same accidental bodily injury under state-mandated disability coverage or workers' compensation or similar occupational compensation act shall be subtracted from the personal protection benefits payable to the injured person.

(B)     A basic personal protection insurer must offer a deductible to the named insured of a personal protection policy in the amounts of two hundred fifty dollars, five hundred dollars, and one thousand dollars to apply with respect to a claim by the named insured or a person residing in the same household with the named insured. If the named insured accepts such offer, the rate must be reduced for such coverage in an amount filed by the insurer and approved by the director. The named insured is not required to accept the offer and may choose personal protection coverage without a deductible other than for property damage caused by an uninsured motorist.

Section 38-78-110.     (A)     Any person who registers, operates, maintains, or uses a motor vehicle on the public roadways of this State and their resident relatives shall, as a condition of such registration, operation, maintenance, or use of such motor vehicle and use of the public roadways shall be conclusively presumed to have accepted the limitations on his tort rights and liabilities in this chapter unless he has filed a rejection under Section 38-78-120.

(B)     Tort liability with respect to accidents occurring in this State and arising out of the ownership, maintenance, or use of a motor vehicle is abolished with respect to any person entitled to benefits pursuant to Section 38-78-30(C) except to the extent such person has sustained an injury as defined in subsection (C) of this section or except to the extent such person has sustained actual economic loss in excess of the limits of any applicable personal protection policy. However, no person may recover noneconomic loss for personal injury except as provided in subsection (C).

(C)     In any action of tort brought against the owner, registrant, operator, or occupant of a motor vehicle with respect to which security has been provided as required in this chapter, or against any person or organization legally responsible for his acts or omissions, a plaintiff may recover damages in tort for pain, suffering, mental anguish, and inconvenience because of bodily injury, sickness, or disease arising out of the ownership, maintenance, operation, or use of such motor vehicle only in the event that the injury reaches one of the following thresholds:

(1)     the injury or disease consists in whole or in part of permanent and serious disfigurement;

(2)     permanent and serious bodily injury, determined objectively, within reasonable medical probability;

(3)     permanent and serious loss of an important bodily function; or

(4)     death.

(D)     In any action where the defendant contends that the plaintiff's injury does not meet the standards set forth in subsection (C), either party may seek summary judgment on that issue. If a motion is made, the court may determine at least thirty days before the date set for trial whether there is a material issue of fact as to whether the injury meets the standards of subsection (C) or if not, render summary judgment in accordance with the undisputed facts. If the facts regarding the nature of the injury are undisputed, the question as to whether or not the facts render the injury as meeting the standards of subsection (C) is a question of law to be decided by the court. In any action to be tried before a jury where the defendant contends the plaintiff's injury is not a serious and permanent injury but the defendant concedes or the court determines that there is a material issue of fact as to whether the plaintiff's injury meets the standards of subsection (C) then, upon motion of the defendant, that issue shall be separately tried and no other evidence as to plaintiff's noneconomic loss shall be received until that issue has been resolved. After resolution of that issue, the amount of the plaintiff's noneconomic loss may be tried before the same jury or a different jury, as the court may in its discretion decide.

Section 38-78-120.     (A)     Any person may refuse to consent to the limitations on his tort rights and liabilities. To ensure preservation of the right to choose to reject any limitations on tort rights and liability contained in this chapter, any person may execute a form approved by the director for rejecting such limitations. Within sixty days after the enactment of this chapter, a temporary committee composed of the director, the Consumer Advocate, two representatives of the South Carolina Bar, (one specializing in the defense of claims and one specializing in the prosecution of claims) appointed by the Governor, a representative of an automobile insurer appointed by the Consumer Advocate, a member of the judiciary appointed by the Chief Justice of the Supreme Court, an insurance agent appointed by the director, and one person specializing in readability appointed by the Governor shall formulate the rejection form to be used by all insurers in South Carolina. The rejection forms for personal protection insurance shall meet the readability index of no higher than the ninth grade level on the Flesch Reading Ease Test. The committee shall also develop a brochure at no higher than the ninth grade level that must be enclosed with the policyholder's renewal notice the first time the policy is renewed after the effective date of this chapter.

(B)     The form shall establish the effective date of such a rejection. Any rejection by a person who is under a legal disability shall be made on behalf of such person by a parent, legal guardian, conservator, or committee and shall remain in effect until revoked or until the person is no longer under legal disability, whichever is sooner. The failure of such guardian, parent, conservator, or committee of a person under a legal disability to file a rejection, within six months from the date that this chapter would otherwise become applicable to such person, is deemed to be an affirmative acceptance of the limitations on tort liability. Any person who at the time of an accident does not have basic personal protection but has not formally rejected such limitations and has in effect security equivalent to that required by Section 38-77-140 is deemed to have fully rejected the tort limitations for that accident only.

(C)     A rejection of tort limitations must be immediately filed with the insurance company or agent who provides the insurance policy and is effective on the effective date of the policy. The rejection applies to any motor vehicle accident occurring on or after that date. The rejection remains effective until it is revoked in writing on a form approved by the director at the time of renewal or issuance of a new policy by the purchase of a tort policy. The revocation of the rejection is effective until it is withdrawn in a manner prescribed by the director. The rejection form must be provided by the insurer or agent to the insured upon the written request of the insured or the request of a person with the legal capacity to ask for the insured.

(D)     The director shall establish and maintain a program designed to assure that all consumers are adequately informed about the comparative cost of personal protection insurance and liability insurance for those persons who choose to reject limitations on tort rights and liabilities, as well as the benefits, rights, and responsibilities of insureds under each type of insurance.

(E)     A person who has personal protection coverage or who rejects tort limitations on a form approved by the director is bound by that choice and is precluded from claiming liability of any party based on being inadequately informed as to the coverage or rejection. This restriction also applies to relatives residing in the same household who are covered by the same policy.

(F)     Each motor vehicle insurer issuing motor vehicle liability insurance in this State may require that all policies within a household be either personal protection policies or liability policies which satisfy the financial responsibility laws of this State. However, policies purchased separately by members of the same household may be different policies.

(G)     To further insure preservation of the right to reject the limitations on tort rights contained in this chapter, the director shall establish procedures whereby any person who does not own a motor vehicle and who is not a resident relative of such an owner may, after sustaining accidental bodily injury, execute a form prescribed by the director for rejecting such limitation within sixty days after the date of the accident. If any personal protection benefits are paid before the rejection is effective, the personal protection insurer has a right of subrogation for any payments made through a tort recovery.

Section 38-78-125.     (A)     A person may bring a cause of action for injury against a person who caused him actual economic loss, for any uncompensated economic loss.

(B)     A person suffering accidental bodily injury while occupying or when struck by a motor vehicle which is insured for personal protection and who is not at the time of the accident covered by a rejection of limitations on tort rights and liabilities under Section 38-78-120 and is not an uninsured motorist may receive personal protection benefits applicable to the motor vehicle and has a right to claim uncompensated economic loss against the personal protection insured. A person who files a claim under this subsection has the same rights and duties as a personal protection insured with respect to a claim by that insured.

(C)     An uninsured injured motorist may not claim in tort for property damage except for such damage that exceeds ten thousand dollars or for noneconomic damages, unless the motor vehicle operator is driving under the influence of alcohol or illegal drugs or is guilty of intentional misconduct. An uninsured motorist retains fault liability with respect to others. A person driving under the influence of alcohol or illegal drugs may not claim in tort for either economic or noneconomic damages against a person who has rejected tort limitations. A person who rejects tort limitations shall not collect personal protection benefits unless he or she has revoked his or her rejection under Section 38-78-120(C).

(D)     A personal protection insured has a cause of action against another personal protection insured for property damage to recover any required deductible.

Section 38-78-140.     (A)     Personal protection benefits are payable monthly as loss accrues. Loss accrues not when the injury occurs but as work loss, replacement services loss, or medical expense is incurred. The benefits are overdue if they are not paid within thirty days after the personal protection insurer receives reasonable proof of the fact and the amount of loss sustained, except that a personal protection insurer may accumulate claims for a period not to exceed thirty days, in which case benefits are not overdue if they are paid within twenty days after the period of accumulation. If reasonable proof is not supplied for the whole claim, the amount supported by reasonable proof is overdue if it is not paid within thirty days after the proof is received by the insurer. Any part or all of the remainder of the claim that is later supported by reasonable proof is overdue if it is not paid within thirty days after the proof is received by the insurer. To determine the extent to which any benefits are overdue, a payment is treated as made on the date a draft or other valid instrument is mailed or, if not so posted, the date of delivery. The personal protection insurer may pay personal protection benefits directly to a person who supplies necessary products, services, or accommodations to the injured person. All overdue payments shall bear an annual eighteen percent interest rate.

(B)     In addition to the interest payments, if the insured has filed suit to recover overdue payments, the insured shall be entitled to reasonable attorney's fees and costs incurred in such suit. The recovery set forth here is the exclusive remedy for an insurer's failure to pay or delay in paying personal protection benefits for conduct of an insurer arising out of the manner in which the insurer denied or delayed payment. An attorney shall not charge a separate fee to collect benefits except those incurred in connection with the suit for overdue payments. In any action by or on behalf of an insurer, a provider or an insured, attorney's fees shall be awarded only to the prevailing party.

(C)     An insurer who rejects a claim for basic personal protection benefits shall give to the claimant prompt written notice of the rejection, specifying the reason.

Section 38-78-150.     (A)     Personal protection benefits except medical benefits are exempt from garnishment, attachment, execution, or any other process or claim to the extent that wages or earnings are exempt under any applicable law.

(B)     An agreement for assignment of any right to personal protection benefits payable in the future, except for medical benefits, is unenforceable except to the extent that the benefits are for the cost of products, services, or accommodations provided or to be provided by the assignee or that the benefits are for loss of income from work or replacement services and are assigned to secure payment of alimony, maintenance, or child support.

Section 38-78-160. An insurer is allowed a reasonable attorney fee for defending a claim for benefits that is fraudulent or so excessive as to have no reasonable foundation. The fee may be treated as an offset against benefits due or which thereafter accrue. The insurer may recover from the claimant any part of the fee not offset or otherwise paid.

Section 38-78-170. An insurer under a policy of personal protection insurance may require written notice to be given as soon as practicable after an accident involving a secured vehicle for which it provides coverage.

Section 38-78-190.     If no personal protection benefits have been paid other than death benefits, a person may bring an action against the personal protection insurer not later than two years after the accidental bodily injury occurred. If personal protection benefits have been paid, a person may bring an action to recover further benefits not later than two years after the last payment of benefits or four years after the date the accidental bodily injury occurred, whichever is earlier.

Section 38-78-200.     (A)     If the mental or physical condition of an injured person is material to any claim for past or future personal protection benefits, the injured person shall submit to reasonable mental or physical examinations by a physician or physicians designated by the insurer, at the insurer's expense. The examinations shall take place at a reasonably convenient time and location. A personal protection insurer may include provisions of this nature in a personal protection policy.

(B)     If after a request by a personal protection insurer a person refuses to submit to reasonable mental and physical examinations by a physician or physicians designated by the insurer or refuses to undergo mental or rehabilitation services payable by the insurer, the insurer, on written notice, may deny benefits applicable to the period during which the person refuses to submit to the examination.

Section 38-78-210.     (A)     On request by a claimant or personal protection insurer, an employer shall provide information on a form approved by the director, including the work records and earnings, regarding an employee who has filed a claim for personal protection benefits. On request of the claimant or insurer the information must cover the period specified by the claimant or insurer making the request and may include a reasonable period before, and the entire period after, the injury.

(B)     The claimant, upon request by the insurer, must provide to the insurer the names and addresses of the physicians and medical facilities rendering diagnosis or treatment in regard to the injury or to a relevant injury and the claimant shall authorize the insurer to inspect and copy any relevant medical records.

(C)     Every physician or other health care provider including, but not limited to, a hospital, clinic, or other medical institution providing, before or after an injury resulting from a motor vehicle accident upon which a claim for personal protection benefits is based, any products, services, or accommodations in relation to that or any other injury, or in relation to a condition claimed to be connected with that or any other injury shall, if requested to do so by the personal protection insurer against whom the claim has been made, furnish a written report of the history, condition, treatment, and the dates and costs of such treatment, of the injured person. Every such physician or other health care provider, hospital, clinic, or other medical institution shall also promptly produce and permit the inspection and copying of its records regarding such history, condition, and treatment, and the dates and costs of treatment. A physician providing such information to a personal protection insurer shall be entitled to a fee of fifty cents per page for providing copies of the medical record, provided a minimum fee of ten dollars plus postage is authorized. Physicians may charge other reasonable fees for the production of other reports or information requested by the personal insurance carrier.

(D)     No cause of action for violation of a physician-patient privilege or invasion of the right of privacy is allowed against any physician or other health care provider, hospital, clinic, or other medical institution complying with the provisions of this section.

(E)     The person requesting records and a sworn statement under this section shall pay all reasonable costs connected therewith.

(F)     A court may order or prohibit discovery of any records under this section in case of any dispute as to the right of a claimant or insurer to discover the information required to be disclosed by this section.

Section 38-78-240.     A physician or other health care provider including, but not limited to, a hospital, clinic, or other health care institution rendering treatment to an injured person, may charge only a reasonable amount for the products, services, and accommodations rendered. The charge shall not exceed the amount the person or institution customarily charges for the products, services, and accommodations in cases not involving automobile insurance.

Section 38-78-260.     The director shall adopt rules which encourage personal protection insurers to institute incentives for personal protection insureds to install, maintain, and make use of injury-reducing devices such as seat and harness belts, air bags, and child restraint systems.

Section 38-78-280.     (A)     Each insurer authorized to transact business or transacting business in this State shall file with the director a form approved by the director which states that any contract of motor vehicle liability insurance, wherever issued, covering the maintenance or use of a motor vehicle while the motor vehicle is in this State, is deemed to satisfy Section 38-78-40 once the vehicle has been continuously present in this State for thirty days unless the named insured has rejected the limitations on tort rights and liabilities under Section 38-78-120.

(B)     If a person is entitled to personal protection benefits or their equivalent under the requirements of more than one state, the person shall elect to recover under the laws of one state. The election represents the exclusive source of recovery of all personal protection benefits, or their equivalent, paid or payable under the financial responsibility requirements of that or any other state.

Section 38-78-290.     All insurance coverages provided under this chapter are subject to such terms, conditions, and exclusions which have been approved by the director.

Section 38-78-325.     The director may promulgate regulations for effective administration which are fair, equitable, and consistent with the purpose of this chapter."

B.     Subsection A. Of this section takes effect March 1, 1999./

Renumber sections to conform.

Amend title to conform.

Rep. MEACHAM explained the amendment.

POINT OF ORDER

Rep. BAXLEY: "I would like to raise a Point of Order that under House Rule 9.3 this amendment is not germane to the Bill."

Rep. MEACHAM: " Mr. Speaker, this is auto insurance reform, we are simply giving the public another choice to save 506 million dollars next year."

Rep. BAXLEY: "First of all, this Bill (S. 254) deals with the pricing of insurance, it creates mechanisms that involve the cost of insurance and competition in the industry. What Mrs. Meacham's amendment does is actually enact tort reform dealing with the substantive issues of liability and who is at fault and under what circumstances individuals may recover, which is not what the thrust of S.254 does. I would also point out to you, Mr. Speaker, that there is a House precedence which is immediately on point. On May 5, 1992, the House was considering at that time a Bill which would lift the mandate to write. A Point of Order was raised that it was not germane to the Bill. I would point out to you that the Speaker at that time acknowledged that part of the amendment did in fact cover part of the Bill, but the thrust of the amendment was such that it was not germane to the title of the Bill and he sustained the Point of Order. Finally, on that point I would point out to you that under Rule 9.3, the House Rules say that the Speaker is to be guided by the precedence of the House."

Rep. MEACHAM: "Mr. Speaker, he brought up one of my arguments on price. My amendment directly relates to price because it mandates a 15% reduction in price. Also, in Section 38-77-145 that is already in the law that allows what I am trying to do."

SPEAKER WILKINS: "I anticipated this Point of Order and I am prepared to rule. Unless someone else wants to be heard, I am going to overrule the Point of Order for this reason: The Bill incorporates and deals with sweeping changes to the automobile insurance laws of the State. Amendment No. 11 offers an alternate insurance plan or system - No Fault. I believe under the rules and under the precedents I am required to look at the substantial effect and impact of the amendment as it relates to the Bill. I believe both the Bill and the amendment substantially impact the operations, restrictions, coverage, and administration of the South Carolina Automobile Insurance System. For that reason, I think it is germane. I do think there is a significant difference, Mr. Baxley, in this ruling and Mr. Sheheen's May 5, 1992 Point of Order. In that situation, former Rep. Larry Martin had attempted to amend a very simple Bill (S.385) that only affected insurers' right to refuse physical damage coverage. This Bill was very limited in what it covered. It was not an overall rewrite of the Automobile Insurance as S. 254 that is before us today. So, the Speaker correctly ruled the amendment, which was No Fault, out of order. I think here you have a totally different situation. You have both a Bill and an amendment that offer totally sweeping changes to the automobile insurance system in South Carolina. I do think there is a difference, so I am going to overrule your Point of Order."

Rep. MEACHAM continued speaking.

Rep. CATO moved to table the amendment.

Rep. DAVENPORT demanded the yeas and nays, which were taken resulting as follows:

Yeas 68; Nays 32

Those who voted in the affirmative are:

Altman                 Barfield               Barrett
Battle                 Bauer                  Baxley
Beck                   Boan                   Breeland
Brown, G.              Brown, J.              Campsen
Cato                   Cave                   Cobb-Hunter
Cromer                 Dantzler               Delleney
Edge                   Felder                 Fleming
Gourdine               Govan                  Harvin
Hawkins                Howard                 Inabinett
Jordan                 Kennedy                Kinon
Kirsh                  Knotts                 Lee
Limbaugh               Limehouse              Littlejohn
Lloyd                  Mack                   Maddox
Martin                 Mason                  McCraw
McMahand               McMaster               Miller
Moody-Lawrence         Neal                   Pinckney
Rhoad                  Robinson               Rodgers
Sandifer               Scott                  Seithel
Sharpe                 Sheheen                Smith, D.
Smith, F.              Smith, J.              Smith, R.
Stoddard               Vaughn                 Webb
Whipper                Wilkes                 Wilkins
Woodrum                Young

Total--68

Those who voted in the negative are:

Bowers                 Brown, H.              Brown, T.
Chellis                Cooper                 Cotty
Davenport              Easterday              Gamble
Hamilton               Hinson                 Keegan
Kelley                 Koon                   Law
Leach                  Loftis                 McLeod
Meacham                Mullen                 Phillips
Quinn                  Rice                   Riser
Simrill                Spearman               Stuart
Townsend               Tripp                  Whatley
Wilder                 Young-Brickell

Total--32

So, the amendment was tabled.

Reps. HOWARD and CATO proposed the following Amendment No. 12 (Doc Name P:\AMEND\BBM\9487JM.97), which was adopted.

Amend the bill, as and if amended, by adding the following appropriately numbered SECTION to read:

/SECTION     _____.     The 1976 Code is amended by adding:

"Section 38-77-342.     Notwithstanding any other provision of law, whenever an automobile insurer maintains and uses a list of preferred automobile repair businesses, then that insurer is required to treat every automobile repair business that is not on the list in the same manner as, and for all purposes equally with, any automobile repair business that is on the list. Failure of the insurer to comply with this section shall subject the insurer to the loss of the privilege of doing business in this State for a period of six months."/

Renumber sections to conform.

Amend title to conform.

Rep. HOWARD explained the amendment.

POINT OF ORDER

Rep. SIMRILL raised a Point of Order that Amendment No. 12 was not germane to the Bill.

Rep. SCOTT argued contra.

SPEAKER WILKINS overruled the Point of Order.

Rep. HOWARD continued speaking.

The amendment was then adopted.

Rep. J. SMITH proposed the following Amendment No. 14 (Doc Name P:\AMEND\BBM\9491AC.97), which was tabled.

Amend the bill, as and if amended, by

striking SECTION 6, as contained on lines 9 through 41 of page 254-9 and lines 1 through 13 of page 254-10, and inserting:

/SECTION     6.     Section 38-77-10 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-10.     In order to effect a complete reform of automobile insurance and insurance practices in South Carolina, the purposes of this chapter are to provide:

(1)     To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to bodily injury liability and property damage liability automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the department filed with and approved by the director of the Department of Insurance or his designee so long as all these applicants or insureds have satisfied the same objective standards as established in Sections Section 38-77-280 and 38-73-455 38-77-15;

(2)     To provide a Reinsurance Facility for bodily injury liability and property damage liability automobile insurers in which all automobile insurers which provide bodily injury liability insurance, property damage liability insurance, or both, must participate to the end that the operating expenses and net profit or loss of the facility may be shared equitably by all the insurers transacting bodily injury liability and property damage liability automobile insurance business in this State giving appropriate consideration to degrees of utilization of the facility by the several insurers of bodily injury liability and property damage liability automobile insurance and to provide prohibitions or penalties in respect to excessive utilization of the facility. for an assigned risk plan, known as the South Carolina Automobile Insurance Plan, for every person who is legally entitled to automobile insurance but has not been able to obtain a motor vehicle liability policy to apply to the director of the Department of Insurance to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State who shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility in this chapter;

(3)     To provide prohibitions and penalties in respect to unfairly discriminatory or unfairly competitive practices having as their purpose or effect evasion of the statutory mandate of coverage provided in this chapter or imposing an undue or unfair burden upon other automobile insurers through excessive utilization of the Facility. Of the coverages as provided in this chapter; and

(4)     To provide medical, surgical, funeral, and disability insurance benefits without regard to fault to be offered under automobile insurance policies that provide bodily injury and property damage liability insurance, or other security, for motor vehicles registered in this State."/

Amend further, by adding the following appropriately numbered SECTION:

/SECTION     _____.     The 1976 Code is amended by adding:

"Section 38-77-15.     Notwithstanding Section 38-77-110, no automobile insurer is required to write or renew coverage for automobile insurance as defined in Section 38-77-30 for an applicant or existing policyholder if one of the conditions or factors in items (1) through (8) is present.

The named insured or an operator who is not excluded in accordance with Section 38-77-340 and who resides in the same household or customarily operates an automobile insured under the same policy, individually:

(1)     has obtained a policy of automobile insurance or a continuation thereof through material misrepresentations within the preceding thirty-six months;

(2)     has had convictions for driving violations on three or more separate occasions within thirty-six months immediately preceding the effective date of coverage as reflected by the Department of Public Safety; or

(3)     has had two or more 'chargeable' accidents within the thirty-six months immediately preceding the effective date of coverage. A chargeable accident is defined as one resulting in bodily injury to a person in excess of six hundred dollars a person, death, or damage to the property of the insured or other person in excess of one thousand dollars. These thresholds must be adjusted periodically by regulation of the director of the Department of Insurance upon changes in the Consumer Price Index. Accidents occurring under the circumstances enumerated below are not considered chargeable if:

(a)     the automobile was lawfully parked. An automobile rolling from a parked position is not considered as lawfully parked but is considered as operated by the last operator;

(b)     the applicant or other operator or owner was reimbursed by or on behalf of a person responsible for the accident or has a judgment against this person;

(c)     the automobile of an applicant or other operator was struck in the rear by another vehicle and the applicant or other operator has not been convicted of a moving traffic violation in connection with the accident;

(d)     the operator of the other automobile involved in the accident was convicted of a moving violation and the applicant or other operator was not convicted of a moving traffic violation in connection with the accident;

(e)     an automobile operated by the applicant or other operator is damaged as a result of contact with a 'hit and run' driver, if the applicant or other operator reports the accident to the proper authority within twenty-four hours or, if the person is injured, as soon as the person is physically able to do so;

(f)     accidents involving damage by contact with animals or fowl;

(g)     accidents involving physical damage limited to and caused by flying gravel, missiles, or falling objects; or

(h)     accidents occurring as a result of the operation of an automobile in response to an emergency if the operator at the time was responding to a call of duty as a paid or volunteer member of a police or fire department, first aid squad, or a law enforcement agency. This exception does not include an accident occurring after the private passenger motor vehicle ceases to be used in response to the emergency;

(4)     has had one or more 'chargeable' accidents and two convictions for driving violations, all occurring on separate occasions, within the thirty-six months immediately preceding the effective date of coverage as reflected by the motor vehicle record of each insured driver as maintained by the Department of Public Safety; or

(5)     has been convicted of or forfeited bail during the thirty-six months immediately preceding the effective date of coverage for operating a motor vehicle while in an intoxicated condition or while under the influence of drugs; or

(6)     has been convicted or forfeited bail during the thirty-six months immediately preceding the effective date for:

(a)     a felony involving the use of a motor vehicle;

(b)     criminal negligency resulting in death, homicide, or assault arising out of the operation of a motor vehicle;

(c)     leaving the scene of an accident without stopping to report;

(d)     theft or unlawful taking of a motor vehicle;

(e)     operating during a period of revocation or suspension of registration or license;

(f)     knowingly permitting an unlicensed person to drive;

(g)     reckless driving;

(h)     the making of material false statements in the application for licenses or registration;

(i)     impersonating an applicant for license or registration or procuring a license through impersonation, whether for himself or another;

(j)     filing a false or fraudulent claim or knowingly aiding or abetting another in the presentation of such a claim;

(k)     failure to stop a motor vehicle when signaled by means of a siren or flashing light by a law enforcement vehicle;

(7)     has for thirty or more consecutive day during the twelve months preceding the effective date of coverage owned or operated the vehicle to be insured (or if newly acquired, the automobile it replaces) without liability coverage in violation of the laws of this state; or

(8)     has used the insured automobile as follows or if the insured automobile is:

(a)     used in carrying passengers for hire or compensation, except that the use of an automobile for a car pool must not be considered use of an automobile for hire or compensation;

(b)     used in the business of transportation of flammables or explosives;

(c)     used in illegal operation; or

(d)     no longer principally used and garaged within the State, but not to include students who are operating a motor vehicle registered in this State while attending an institution located in another state."/

Amend further, by striking SECTION 9, as contained on lines 4 through 34 of page 254-16, and inserting:

/SECTION     9.     Section 38-77-112 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:

"Section 38-77-112.     Notwithstanding Sections Section 38-77-110, 38-77-920, and 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. At the time of application, an insurer or an agent shall retain, for a period of three years, the driver's license numbers for all persons who have completed and submitted an application for insurance but who were refused coverage and shall furnish such information upon the request of the director of the Department of Insurance or his designee. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must can be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."/

Amend further, SECTION 27, page 254-40, line 36, by striking /38-77-110,/ and on line 37 by striking /38-77-115,/.

Amend further, SECTION 11, by striking Section 38-77-121, as contained on lines 2 through 27 of page 254-18, and by striking Section 38-77-123, as contained on lines 10 through 42 on page 254-19 and lines 1 through 41 on page 254-20 and lines 1 through 40 on page 254-21.

Amend further, SECTION 11, by striking Section 38-77-122, as contained on lines 28 through 42 of page 254-18 and lines 1 through 9 of page 254-19, and inserting:

/"Section 38-77-122.     An insurer may set rates in accordance with relevant actuarial date, except that no insurer may set rates based in whole or in part on race, color, creed, national origin, ancestry, economic status, income level, or place of residence at any level smaller than a county."/

Amend further, by adding the following appropriately numbered SECTION:

/SECTION     _____.     Section 38-77-110 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-110.     (A)     Automobile insurers other than insurers designated and approved as specialized insurers by the director or his designee may not refuse to write or renew automobile insurance policies for bodily injury liability and property damage liability coverage for individual private passenger automobiles or small commercial risks. These policies may not be canceled except for reasons which had they existed or been known when the policy was written would have rendered the risk not an insurable risk. Every automobile insurance risk constitutes an insurable risk unless the operator's permit of the named insured has been revoked or suspended and is at the time of application for insurance so revoked or suspended. However, no insurer is required to write or renew automobile insurance on any risk if there exists a valid and enforceable outstanding judgment secured by an insurer, an agent, or licensed premium service company on account of automobile insurance premiums which the applicant or insured or any principal operator who is a member of the named insured's household has failed or refused to pay unless the applicant or insured pays in advance the entire premium for the full term of the policy sought to be issued or renewed or the annual premium, whichever is the lesser. An insurer is not precluded from effecting cancellation of an automobile insurance policy, either upon its own initiative or at the instance of an agent or licensed premium service company, because of the failure of any named insured or principal operator to pay when due any automobile insurance premium or any installment payment. However, notice of cancellation for nonpayment of premium notifies the person to whom the notice is addressed that the notice is void and ineffective if payment of the full amount of the premium or premium indebtedness, whichever is the greater, is made to the insurer, agent, or licensed premium service company named in the notice by the otherwise effective date of cancellation. This notice of cancellation is not considered ineffective for being conditional, ambiguous, or indefinite.

(B)     Notwithstanding subsection (A) of this section, no insurer is required to write private passenger automobile insurance with higher limits of coverage than:

(1)     two hundred fifty thousand dollars, for bodily injury liability to one person in one accident,

(2)     subject to the limit for one person, five hundred thousand dollars because of bodily injury to two or more persons in one accident,

(3)     fifty thousand dollars because of injury to or destruction of property of others in any one accident,

(4)     five hundred thousand dollars combined single limits for either or both bodily injury and property damage, if any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, has one or more of the conditions or factors prescribed in Section 38-73-455(A) existing and if an insurer, at its option, writes such a policy, the policy may not be ceded to the Reinsurance Facility.

(C)     With regard to any coverage not required to be written by an insurer under the mandate to write, no insurer may refuse to write such policy, coverage, or endorsement of automobile insurance because of the race, color, creed, religion, national origin, or ancestry, location of residence in this State, economic status, or income level of anyone who seeks to become insured.

(D)     Except as provided in this section and as is specifically provided for otherwise by law, no automobile insurer may refuse acceptance of bodily injury liability and property damage liability automobile insurance for an insurable risk from an applicant nor require that certain classes or types of risk be placed through a particular agent or employee. This section is not intended to preclude an insurer from recognizing and giving effect to the property rights of agents in expirations or renewals.

(E)     No agent who represents more than one insurer of bodily injury liability and property damage liability insurance may refuse to accept in behalf of an insurer represented by him bodily injury liability and property damage liability insurance for an insurable risk where the applicant for insurance designates by name or description the insurer of his choice. If the applicant relies upon the skill and judgement of the agent to place the risk in an insurer which he considers appropriate. No insurer may agree, collude, or conspire with an agent or give, offer, or promise an agent anything of value to place any risk or any class or type of risk under such circumstances in another insurer. Every such agreement is utterly void and every act of collusion or conspiracy constitutes an act of unfair competition by both the insurer and the agent which, if proved, must result in the suspension of the license of each for not less than one year, in addition to any other penalties or liabilities applicable.

(F)     No automobile insurer authorized to transact bodily injury liability and property damage liability insurance in this State which offers bodily injury liability and property damage liability insurance through the mails or uses the mails in transacting bodily injury liability and property damages liability insurance on insurable risks situate in this State may restrict its mailings or offerings to certain counties, areas, or zip code territories of this State. The director or his designee is directed to examine an insurer's records at a time the director or his designee considers it necessary to determine that the insurer is not so restricting or limiting its offerings.

(G)     An insurer, its agent, or an insurance broker doing business in this State may not make or permit any discrimination in favor of individuals between insureds of the same class and risk involving the same hazards in the amount of the payment of premiums or rates charged for policies of insurance except as provided in Section 38-57-140, 38-65-310, and 38-71-1110, in the dividends or other benefits payable, or in any other of the terms and conditions of the contracts it makes. An insurer, it agent, or an insurance broker may not make a contract of insurance or agreement as to a contract other than as plainly expressed in the policy issued. An insurer or its officer, agent, solicitor, or representative or an insurance broker may not pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the taking of insurance any special favor or advantage in the dividends or other benefits to accrue from the policy, any paid employment or contract for services of any kind, or any valuable consideration or inducement not specified in the policy contract of insurance, or give, sell, or purchase or offer to give, sell, or purchase, as inducement to the taking of insurance of in connection therewith, any stocks, bonds, or other securities of an insurer or other corporation, association, or partnership, any dividends or profits to accrue from them, or anything of value not specified in the policy."/

Renumber sections to conform.

Amend title to conform.

Rep. J. SMITH explained the amendment.

Rep. CATO moved to table the amendment.

Rep. COBB-HUNTER demanded the yeas and nays, which were taken resulting as follows:

Yeas 76; Nays 27

Those who voted in the affirmative are:

Allison                Altman                 Barfield
Barrett                Bauer                  Beck
Boan                   Brown, H.              Brown, J.
Campsen                Cato                   Chellis
Cooper                 Cotty                  Cromer
Dantzler               Delleney               Easterday
Edge                   Felder                 Fleming
Gamble                 Hamilton               Harrison
Harvin                 Hawkins                Hinson
Jordan                 Keegan                 Kelley
Kinon                  Kirsh                  Knotts
Koon                   Law                    Leach
Lee                    Limbaugh               Limehouse
Littlejohn             Loftis                 Martin
Mason                  McCraw                 McLeod
McMahand               McMaster               Meacham
Mullen                 Neilson                Phillips
Rice                   Riser                  Robinson
Rodgers                Sandifer               Scott
Seithel                Sharpe                 Sheheen
Simrill                Smith, R.              Spearman
Stoddard               Stuart                 Townsend
Tripp                  Trotter                Vaughn
Webb                   Whatley                Wilder
Wilkins                Woodrum                Young
Young-Brickell

Total--76

Those who voted in the negative are:

Battle                 Baxley                 Bowers
Breeland               Brown, G.              Brown, T.
Cave                   Cobb-Hunter            Davenport
Gourdine               Govan                  Howard
Inabinett              Kennedy                Lloyd
Mack                   Maddox                 Miller
Moody-Lawrence         Neal                   Parks
Pinckney               Rhoad                  Smith, F.
Smith, J.              Whipper                Wilkes

Total--27

So, the amendment was tabled.

Rep. CATO moved cloture on the entire matter, which was agreed to.

Rep. SHEHEEN moved that the House do now adjourn, which was adopted.

Further proceedings were interrupted by adjournment, the pending question being consideration of amendments, cloture having been ordered.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4073 -- Reps. Davenport, Walker, Lee, Hawkins, Allison and Littlejohn: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO PROVIDE THAT THE MAXIMUM SPEED LIMIT ALONG INTERSTATE HIGHWAY 85 FROM MILE POINT 68.8 TO MILE POINT 77.4 IN SPARTANBURG COUNTY IS SIXTY-FIVE MILES AN HOUR AND INSTALL APPROPRIATE MARKERS OR SIGNS AT PLACES ALONG THIS STRETCH OF HIGHWAY TO INFORM MOTORISTS OF THE MAXIMUM SPEED LIMIT.

H. 4159 -- Rep. R. Smith: A CONCURRENT RESOLUTION EXPRESSING THE BEST WISHES OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE MEMBERS OF THE BEECH ISLAND HISTORICAL SOCIETY AS THIS GROUP OBSERVES ON MAY 24, 1997, THE ELEVENTH ANNUAL BEECH ISLAND HERITAGE DAY.

H. 4168 -- Rep. Davenport: A CONCURRENT RESOLUTION TO RECOGNIZE THE ACHIEVEMENTS OF JOSHUA DAVID FLOWE OF INMAN, SOUTH CAROLINA, UPON HIS EARNING OF THE RANK OF EAGLE SCOUT.

H. 4169 -- Reps. Davenport and Littlejohn: A CONCURRENT RESOLUTION TO CELEBRATE WITH DR. JIMMY ROBBINS OF SPARTANBURG COUNTY ON THE ANNIVERSARY OF HIS THIRTY-FIVE YEARS OF FAITHFUL SERVICE TO THE MOUNTAIN VIEW BAPTIST CHURCH IN COWPENS.

H. 4167 -- Reps. Koon and Allison: A CONCURRENT RESOLUTION TO CONGRATULATE MRS. EDNA BEDENBAUGH OF LEXINGTON UPON HER SELECTION AS THE 1997 MS. SOUTH CAROLINA SENIOR AMERICA AND TO WISH HER THE VERY BEST OF LUCK IN THE MS. USA SENIOR AMERICA NATIONAL COMPETITION TO BE HELD IN SEPTEMBER.

ADJOURNMENT

At 5:45 P.M. the House in accordance with the motion of Rep. KELLEY adjourned in memory of George Bishop III of Horry County, to meet at 10:00 A.M. tomorrow.

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