South Carolina General Assembly
114th Session, 2001-2002
Journal of the Senate

Tuesday, May 15, 2001

(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 10:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, in the first century the Community of the City of Corinth faced divisive issues. Hear St. Paul's words: Second Corinthians, Chapter 4:16:

"So, we do not lose heart. Even though our outer nature is wasting away, our inner nature is being RENEWED day by day."
Let us pray.

Our Father, You know us better than we know ourselves! Lengthening days and draining debates take their toll on the sharpness of our thinking and our physical stamina.

We pray profoundly, Lord: Give us the gifts of The Spirit that will enable us to say to each other:

"So we do not lose heart, sisters and brothers, even though our outer nature is wasting away, our inner nature is being renewed day by day."
Amen!

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

Doctor of the Day

Senator COURSON introduced Dr. Vince Degenhart of Columbia, S.C., Doctor of the Day.

Leave of Absence

On motion of Senator HUTTO, at 10:45 A.M., Senator MATTHEWS was granted a leave of absence from 5:00 - 11:00 P.M.

Leave of Absence

At 10:45 A.M., Senator HUTTO requested a leave of absence from 5:00 - 11:00 P.M.

RECALLED, AMENDED, READ THE SECOND TIME

H. 4018 (Word version) -- Reps. Stille, Carnell, Townsend and Klauber: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-709 SO AS TO DESIGNATE THE HISTORIC ABBEVILLE OPERA HOUSE IN ABBEVILLE, SOUTH CAROLINA, AS THE OFFICIAL STATE RURAL DRAMA THEATER.

Senator DRUMMOND asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.

There was no objection.

Senator DRUMMOND asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senators DRUMMOND and McCONNELL proposed the following amendment (PT\1527DW01), which was adopted:

Amend the bill, as and if amended, page 2, beginning on line 24, by striking Section 1-1-709 as contained in SECTION 1 and inserting:

/   "Section 1-1-709(A).   The Abbeville Opera House is designated as the official state rural drama theater of the State. The designation of the Abbeville Opera House as the official state rural drama theater of the State is an honorary designation and does not bind the State in any way.

(B)   The official designation does not create a new state agency or educational institution or qualify the Abbeville Opera House for state funds.

(C)   The official designation does not confer any liability of the State.

(D)   The official designation does not sanction by the State any activity, philosophy, or course of action conducted, published, or undertaken by the Abbeville Opera House." /

Amend title to conform.

Senator DRUMMOND explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

H. 4018--Ordered to a Third Reading

On motion of Senator DRUMMOND, H. 4018 was ordered to receive a third reading on Wednesday, May 16, 2001.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 680 (Word version) -- Senator Ravenel: A BILL TO AMEND ACT 340 OF 1967, AS AMENDED, RELATING TO THE CHARLESTON COUNTY SCHOOL DISTRICT, THE GOVERNING BODY THEREOF, AND THE MANNER IN WHICH ITS MEMBERS ARE ELECTED, SO AS TO REVISE THE AREA FROM WHICH A MEMBER OF THE BOARD SHALL BE ELECTED IN 2002 AND TO PROVIDE THAT THE GENERAL ASSEMBLY IN 2002, AND EVERY TEN YEARS THEREAFTER BASED ON THE RESULTS OF THE DECENNIAL CENSUS, SHALL ALSO PROVIDE BY LAW FOR FURTHER REAPPORTIONMENT OF THE NUMBER OF THE MEMBERS OF THE BOARD WHO MUST RESIDE IN SPECIFIED AREAS TO REFLECT POPULATION CHANGES SINCE THE LAST DECENNIAL CENSUS.
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Read the first time and ordered placed on the Local and Uncontested Calendar.

S. 681 (Word version) -- Senators Hutto and Matthews: A CONCURRENT RESOLUTION RECOGNIZING THE SOUTH CAROLINA INDEPENDENT SCHOOLS ATHLETIC ASSOCIATION CLASS 3-A STATE CHAMPIONSHIP SOFTBALL SQUAD FROM ORANGEBURG PREPARATORY SCHOOL ON ITS 6-5 TITLE VICTORY OVER NORTHWOOD ACADEMY OF CHARLESTON, AND CONGRATULATING THE LADY INDIANS AND COACHES ON THEIR GUTSY EMERGENCE FROM THE LOSER'S BRACKET TO GRAB THE CROWN THAT HAD ELUDED THEM SINCE 1987.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 682 (Word version) -- Senator Pinckney: A CONCURRENT RESOLUTION TO COMMEND THE JASPER COUNTY HISTORICAL SOCIETY FOR THE PUBLICATION AND OUTSTANDING SUCCESS OF ITS BOOK, "REFLECTIONS: A PICTORIAL HISTORY OF JASPER COUNTY".
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 683 (Word version) -- Senators Alexander, Anderson, Bauer, Branton, Courson, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hawkins, Hayes, Holland, Hutto, Jackson, Land, Leatherman, Leventis, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Pinckney, Rankin, Ravenel, Reese, Richardson, Ritchie, Ryberg, Saleeby, Setzler, Short, J. Verne Smith, Thomas, Verdin, Waldrep and Wilson: A CONCURRENT RESOLUTION TO MEMORIALIZE THE DEPARTMENT OF THE ARMY AND MONCRIEF ARMY HOSPITAL AT FORT JACKSON, SOUTH CAROLINA, TO REINSTATE THE VETERANS ADMINISTRATION COUNTY OFFICE COURIER SERVICE SO AS TO CONTINUE TO PROVIDE VETERANS WITH THE COUNTY OFFICE COURIER PROGRAM AS A PRESCRIPTION OPTION.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 684 (Word version) -- Senators Moore, Ryberg and Setzler: A CONCURRENT RESOLUTION TO HONOR WELDON WYATT OF AIKEN COUNTY FOR HIS ABUNDANT CONTRIBUTIONS TO THE ADVANCEMENT OF EDUCATION IN AIKEN COUNTY AND THE EDUCATION OF AIKEN COUNTY RESIDENTS AND TO CONGRATULATE HIM ON BEING SELECTED TO RECEIVE A JEFFERSON AWARD BY THE AMERICAN INSTITUTE FOR PUBLIC SERVICE.
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The Concurrent Resolution was adopted, ordered sent to the House.

H. 4101 (Word version) -- Reps. Scott, M. Hines, Allen, Allison, Altman, Askins, Bales, Barfield, Barrett, Battle, Bingham, Bowers, Breeland, G. Brown, J. Brown, R. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Freeman, Frye, Gilham, Gourdine, Govan, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, J. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Martin, McCraw, McGee, McLeod, Meacham-Richardson, Merrill, Miller, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Quinn, Rhoad, Rice, Riser, Rivers, Robinson, Rodgers, Rutherford, Sandifer, Scarborough, Sharpe, Sheheen, Simrill, Sinclair, D.C. Smith, F.N. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Snow, Stille, Stuart, Talley, Taylor, Thompson, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Weeks, Whatley, Whipper, White, Wilder, Wilkins, Witherspoon, A. Young and J. Young: A CONCURRENT RESOLUTION RECOGNIZING REVEREND DR. WILLIE E. GIVENS, JR., OF CHARLESTON COUNTY AS HE COMPLETES HIS TERM AS PRESIDENT OF THE SOUTH CAROLINA STATE BAPTIST EDUCATIONAL AND MISSIONARY CONVENTION.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4106 (Word version) -- Reps. Hosey, Rhoad, Allen, Allison, Altman, Askins, Bales, Barfield, Barrett, Battle, Bingham, Bowers, Breeland, G. Brown, J. Brown, R. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Freeman, Frye, Gilham, Gourdine, Govan, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, J. Hines, M. Hines, Hinson, Howard, Huggins, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Martin, McCraw, McGee, McLeod, Meacham-Richardson, Merrill, Miller, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Quinn, Rice, Riser, Rivers, Robinson, Rodgers, Rutherford, Sandifer, Scarborough, Scott, Sharpe, Sheheen, Simrill, Sinclair, D.C. Smith, F.N. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Snow, Stille, Stuart, Talley, Taylor, Thompson, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Weeks, Whatley, Whipper, White, Wilder, Wilkins, Witherspoon, A. Young and J. Young: A CONCURRENT RESOLUTION TO COMMEND AND HONOR THE "LADY HAWKS" OF BLACKVILLE-HILDA HIGH SCHOOL, IN BLACKVILLE, SOUTH CAROLINA, AND COACH FARRELL ZISSETTE ON THEIR OUTSTANDING SEASON AND CONGRATULATE THEM ON WINNING THE CLASS A GIRLS STATE BASKETBALL CHAMPIONSHIP FOR THE YEAR 2000-2001.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4107 (Word version) -- Reps. Hosey, Rhoad, Allen, Allison, Altman, Askins, Bales, Barfield, Barrett, Battle, Bingham, Bowers, Breeland, G. Brown, J. Brown, R. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Freeman, Frye, Gilham, Gourdine, Govan, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, J. Hines, M. Hines, Hinson, Howard, Huggins, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Martin, McCraw, McGee, McLeod, Meacham-Richardson, Merrill, Miller, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Quinn, Rice, Riser, Rivers, Robinson, Rodgers, Rutherford, Sandifer, Scarborough, Scott, Sharpe, Sheheen, Simrill, Sinclair, D.C. Smith, F.N. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Snow, Stille, Stuart, Talley, Taylor, Thompson, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Weeks, Whatley, Whipper, White, Wilder, Wilkins, Witherspoon, A. Young and J. Young: A CONCURRENT RESOLUTION TO COMMEND THE MEMBERS OF THE JEFFERSON DAVIS ACADEMY "LADY RAIDERS" BASKETBALL TEAM AND COACH ROBYNE JOYNER ON THEIR OUTSTANDING SEASON AND CONGRATULATE THEM ON WINNING THE SOUTH CAROLINA INDEPENDENT SCHOOLS ASSOCIATION REGION 1-A STATE CHAMPIONSHIP FOR THE YEAR 2000-2001.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4112 (Word version) -- Rep. Lucas: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY FOR THE DEDICATED WORK OF MRS. FAYE S. YARBOROUGH, OF HARTSVILLE, IN DARLINGTON COUNTY, ON BEHALF OF PEOPLE WITH DISABILITIES IN THE DARLINGTON COUNTY AREA AND THROUGHOUT THE STATE.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4116 (Word version) -- Rep. Rivers: A CONCURRENT RESOLUTION TO COMMEND THE JASPER COUNTY HISTORICAL SOCIETY FOR THE PUBLICATION AND OUTSTANDING SUCCESS OF ITS BOOK, "REFLECTIONS: A PICTORIAL HISTORY OF JASPER COUNTY".

The Concurrent Resolution was adopted, ordered returned to the House.

CONCURRENCE

S. 384 (Word version) -- Senators Verdin, Branton, Ryberg, Patterson and Ritchie: A BILL TO AMEND SECTION 56-3-630, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF PUBLIC SAFETY CLASSIFYING CERTAIN MOTOR VEHICLES AS PRIVATE PASSENGER MOTOR VEHICLES, SO AS TO REVISE THE MAXIMUM EMPTY WEIGHT OF A TRUCK THAT THE DEPARTMENT SHALL CLASSIFY AS A PRIVATE PASSENGER MOTOR VEHICLE.

The House returned the Bill with amendments.

Senator VERDIN explained the House amendments.

On motion of Senator VERDIN, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

HOUSE CONCURRENCE

S. 681 (Word version) -- Senators Hutto and Matthews: A CONCURRENT RESOLUTION RECOGNIZING THE SOUTH CAROLINA INDEPENDENT SCHOOLS ATHLETIC ASSOCIATION CLASS 3-A STATE CHAMPIONSHIP SOFTBALL SQUAD FROM ORANGEBURG PREPARATORY SCHOOL ON ITS 6-5 TITLE VICTORY OVER NORTHWOOD ACADEMY OF CHARLESTON, AND CONGRATULATING THE LADY INDIANS AND COACHES ON THEIR GUTSY EMERGENCE FROM THE LOSER'S BRACKET TO GRAB THE CROWN THAT HAD ELUDED THEM SINCE 1987.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 682 (Word version) -- Senator Pinckney: A CONCURRENT RESOLUTION TO COMMEND JASPER COUNTY HISTORICAL SOCIETY FOR THE PUBLICATION AND OUTSTANDING SUCCESS OF ITS BOOK, "REFLECTIONS: A PICTORIAL HISTORY OF JASPER COUNTY".

Returned with concurrence.

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

ORDERED ENROLLED FOR RATIFICATION

The following Bills and Joint Resolutions were read the third time and, having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:

H. 3013 (Word version) -- Reps. Vaughn, Altman, Barrett, J. Brown, Cobb-Hunter, Cotty, Davenport, Harvin, Leach, Littlejohn, Loftis, Rodgers, Taylor, Wilder, Witherspoon, Walker, W.D. Smith, Harrison, Stille, Whatley, Clyburn and Robinson: A BILL TO AMEND ARTICLE 1, CHAPTER 11, TITLE 8, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL PROVISIONS FOR STATE OFFICERS AND EMPLOYEES, BY ADDING SECTION 8-11-17 SO AS TO AUTHORIZE SPECIFICALLY THE USE OF FLEXIBLE SCHEDULING BY A STATE AGENCY AND INSTITUTION IN DETERMINING AN EMPLOYEE'S MINIMUM FULL-TIME WORKWEEK SCHEDULE, INCLUDING HOURS BEFORE EIGHT-THIRTY A.M. AND AFTER FIVE P.M., SO LONG AS THE CAPACITY OF THE AGENCY OR INSTITUTION IS NOT IMPAIRED.

H. 3542 (Word version) -- Reps. Allison, Cotty, McCraw, J.R. Smith and Knotts: A JOINT RESOLUTION TO PROVIDE THAT LAPSED FUNDS OF THE DEPARTMENT OF EDUCATION INCLUDING EIA FUNDS FOR FISCAL YEAR 2000-2001 AND PRIOR YEARS MUST BE USED BY THE DEPARTMENT FOR STIPULATED PRIORITY EXPENDITURES AND TO PROVIDE THAT FUNDS APPROPRIATED FOR EIA TEACHER SALARIES AND RELATED FRINGE BENEFITS ARE EXEMPT FROM ANY REQUIRED SPENDING REDUCTIONS.

H. 3880 (Word version) -- Rep. Cato: A BILL TO AMEND ARTICLE 5, CHAPTER 77, TITLE 38 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, BY ADDING SECTION 38-77-640 SO AS TO CLARIFY AND FURTHER EXPLAIN THE CRITERIA FOR IMPOSITION OF A SURCHARGE ON LIABILITY INSURANCE PREMIUMS FOR RECOUPMENT OF FACILITY ASSESSMENTS OR LOSSES.

H. 3932 (Word version) -- Reps. Law, Hinson, Merrill and Dantzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 58-3-240 SO AS TO EXEMPT FROM THE PUBLIC SERVICE COMMISSION'S REGULATIONS THOSE UTILITY SERVICES, EXCEPT THE PROVISION OF ELECTRICAL SERVICE, PROVIDED TO AN INDUSTRIAL USER WHEN THE USER AND PROVIDER HAVE AGREED TO A WRITTEN CONTRACT FOR THE SERVICES, THE USER IS LOCATED IN AN INDUSTRIAL PARK, AND WHERE JURISDICTIONAL UTILITIES HAVE AGREED IN WRITING TO WAIVE THEIR RIGHT TO NOTICE AND OPPORTUNITY FOR A HEARING ON THE CONTRACT, AND REQUIRE THE PROVIDER OF UTILITY SERVICES TO FILE THE WRITTEN AGREEMENT WITH THE COMMISSION.

Senator RITCHIE explained the Bill.

H. 3287 (Word version) -- Reps. White, Barrett, J. Brown, Cato, Clyburn, Coates, Cobb-Hunter, Cooper, Harrell, Harrison, Hinson, Hosey, Kelley, Klauber, Martin, McCraw, Owens, Phillips, Rice, Robinson, Sharpe, Sinclair, Stille, Talley, Taylor, Thompson, Townsend, Trotter, Webb and Wilder: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 25-11-80 SO AS TO AUTHORIZE THE DEPARTMENT OF VETERANS AFFAIRS TO ESTABLISH ONE OR MORE STATE VETERANS' CEMETERIES IN THE STATE AND TO PROVIDE FOR THE MANNER IN WHICH THE CEMETERIES MUST BE ACQUIRED, MAINTAINED, AND OPERATED.

H. 3644 (Word version) -- Reps. Breeland, Gourdine, J. Hines, Robinson, Bales, Battle, R. Brown, Cato, Clyburn, M. Hines, Hosey, Klauber, Law, Littlejohn, Mack, Owens, Rhoad, Scarborough, Scott, Simrill, Trotter, Vaughn, Webb, Whipper and Altman: A JOINT RESOLUTION TO ESTABLISH A COMMITTEE TO STUDY CERTAIN ISSUES AFFECTING VETERANS AND PROVIDE FOR RELATED MATTERS INCLUDING, BUT NOT LIMITED TO, COMMITTEE MEMBERSHIP AND DUTIES, THE FILLING OF VACANCIES, AND COMMITTEE MEETINGS AND STAFFING.

HOUSE BILLS RETURNED

The following House Bills were read the third time and ordered returned to the House with amendments:

H. 3366 (Word version) -- Reps. Snow, Altman, Bales, Barfield, Breeland, R. Brown, Campsen, Edge, Gilham, Harvin, Keegan, Kelley, Limehouse, Miller, Rodgers, Scarborough, Vaughn, Whatley and Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 27-32-55 SO AS TO PROVIDE THAT NO OWNER OF AN INTEREST IN A VACATION TIME-SHARING UNIT MAY BE CHARGED AN UP-FRONT APPRAISAL FEE FOR THE RESALE OF HIS OWNERSHIP INTEREST BUT INSTEAD MAY ONLY BE CHARGED A MARKETING FEE OR COMMISSION UPON THE RESALE OF THE UNIT IN AN AMOUNT STIPULATED BY WRITTEN AGREEMENT BETWEEN THE OWNER AND HIS SALES AGENT, AND TO PROVIDE THAT ANY PERSON VIOLATING THE PROVISIONS OF THIS SECTION IS DEEMED TO HAVE COMMITTED AN UNFAIR TRADE PRACTICE AND IS SUBJECT TO ALL PENALTIES AND REMEDIES PROVIDED BY LAW FOR THIS VIOLATION.

By prior motion of Senator RICHARDSON, with unanimous consent

H. 3624 (Word version) -- Reps. Rodgers, Gilham, Lloyd and Rivers: A BILL TO PROVIDE THAT THE BEAUFORT COUNTY BOARD OF EDUCATION HAS THE AUTHORITY TO SET THE ANNUAL SALARY AND PER DIEM FOR ITS MEMBERS AFTER CONSIDERATION OF THE ISSUE AT THREE PUBLIC REGULARLY SCHEDULED MONTHLY MEETINGS AND AFTER ALLOWING PUBLIC COMMENT ON THE ISSUE, TO PROVIDE THAT THE COMPENSATION MAY NOT EXCEED THE COMPENSATION PAID TO MEMBERS OF THE BEAUFORT COUNTY COUNCIL, TO PROVIDE FURTHER THAT AFTER DECEMBER 31, 2001, NO INCREASE IN SALARY OR PER DIEM FOR BOARD MEMBERS MAY TAKE EFFECT UNTIL AFTER THE NEXT GENERAL ELECTION FOR SCHOOL BOARD MEMBERS, AND TO PROVIDE THAT THE BOARD MAY ESTABLISH REASONABLE MILEAGE AND EXPENSE REIMBURSEMENTS FOR ITS MEMBERS WHICH MAY NOT EXCEED THE MILEAGE AND EXPENSE REIMBURSEMENT AMOUNTS ESTABLISHED BY THE STATE FOR ITS EMPLOYEES.

By prior motion of Senator RICHARDSON

THIRD READING BILLS

The following Bills were read the third time and ordered sent to the House of Representatives:

S. 472 (Word version) -- Senator Alexander: A BILL TO PROVIDE THAT THE BOND OF THE SUPERINTENDENT OF EDUCATION FOR OCONEE COUNTY SHALL BE A MINIMUM OF ONE HUNDRED THOUSAND DOLLARS RATHER THAN TEN THOUSAND DOLLARS.

S. 349 (Word version) -- Senators Branton, Verdin, Leatherman, Peeler, McConnell, Giese, Grooms, Bauer, Waldrep, Wilson, Mescher, Ryberg, Fair, Hayes, Thomas and Martin: A BILL TO AMEND SECTION 12-21-2420, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RATE OF THE ADMISSIONS TAX AND EXEMPTIONS FROM THE ADMISSIONS TAX, SO AS TO PROVIDE THAT ENTRY INTO THE PIT AREA OF MOTOR SPEEDWAYS OR RACETRACKS FOR DRIVERS, CREW MEMBERS, SCOREKEEPERS OR OTHER SUPPORT STAFF, CAR OWNERS AND SPONSORS, AND FAMILY MEMBERS THEREOF IS EXEMPT FROM THE ADMISSIONS TAX UNDER CERTAIN CONDITIONS.

S. 439 (Word version) -- Senators J. Verne Smith, Leatherman and Wilson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 10-1-161 SO AS TO PROVIDE FOR THE LOWERING OF FLAGS FLOWN ATOP THE STATE CAPITOL BUILDING ON MEMORIAL DAY AND ON THE DAY ON WHICH FUNERAL SERVICES ARE HELD FOR CERTAIN PUBLIC OFFICIALS AND TO DEFINE HALF-STAFF.

S. 610 (Word version) -- Senator Moore: A BILL TO AMEND SECTION 25-21-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF TRUSTEES FOR THE VETERANS' TRUST FUND OF SOUTH CAROLINA, SO AS TO INCREASE THE NUMBER OF BOARD MEMBERS FROM ELEVEN TO NINETEEN, TO REQUIRE AT LEAST ELEVEN MEMBERS, RATHER THAN ALL OF THE MEMBERS, TO BE HONORABLY DISCHARGED VETERANS, AND TO DELETE THE PROVISION RESTRICTING MEMBERS FROM SERVING MORE THAN EIGHT CONTINUOUS YEARS ON THE BOARD.

Senator RICHARDSON explained the Bill.

SECOND READING BILL
WITH NOTICE OF GENERAL AMENDMENTS

The following Bill, having been read the second time with notice of general amendments, was ordered placed on the third reading Calendar:

H. 3974 (Word version) -- Rep. Cato: A BILL TO AMEND SECTION 37-17-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF PERSONS WHO SELL PRESCRIPTION DRUG DISCOUNT CARDS, SO AS TO PROVIDE THAT SUCH PERSONS MUST REGISTER AND REPORT TO THE DEPARTMENT OF CONSUMER AFFAIRS, RATHER THAN TO THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 38-5-80, AS AMENDED, RELATING TO REQUIREMENTS TO OBTAIN A LICENSE TO CONDUCT INSURANCE BUSINESS IN THIS STATE, SO AS TO CLARIFY WHAT BOOKS AND RECORDS OF AN INSURER MUST BE MAINTAINED IN THIS STATE; TO AMEND SECTION 38-31-20, AS AMENDED, RELATING TO DEFINITIONS IN THE SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT, SO AS TO INCLUDE NEW DEFINITIONS AND REVISE CERTAIN EXISTING DEFINITIONS; TO AMEND SECTION 38-31-60, RELATING TO THE POWERS AND DUTIES OF THE SOUTH CAROLINA PROPERTY AND CASUALTY GUARANTY ASSOCIATION, SO AS TO PROVIDE THAT THE ASSOCIATION'S OBLIGATION TO AN INSURED CEASES WHEN TEN MILLION DOLLARS HAS BEEN PAID TO OR ON BEHALF OF THE INSURED AND TO ALLOW FOR ALLOCATION OF PAYMENTS WHEN THERE IS MORE THAN ONE CLAIMANT WITH A COVERED CLAIM; TO AMEND SECTION 38-31-70, AS AMENDED, RELATING TO THE PLAN OF OPERATION FOR THE ADMINISTRATION OF THE GUARANTY ASSOCIATION, SO AS TO AUTHORIZE REPORTING AND THE DELEGATION OF CERTAIN AUTHORITY TO AN ASSOCIATION SIMILAR TO THE GUARANTY ASSOCIATION; TO AMEND SECTION 38-31-90, AS AMENDED, RELATING TO RIGHTS OF THE GUARANTY ASSOCIATION REGARDING CLAIMANTS PAID AND ASSETS OF INSOLVENT INSURERS, SO AS TO PROVIDE THAT THE ASSOCIATION HAS THE RIGHT TO RECOVER THE AMOUNT OF A CLAIM PAID FROM CERTAIN INSUREDS AND AFFILIATES OF AN INSOLVENT INSURER; TO AMEND SECTION 38-31-100, AS AMENDED, RELATING TO PROCEDURES REQUIRED TO BE FOLLOWED BY PERSONS ASSERTING CLAIMS AND TO LIMITATIONS ON CLAIMS, SO AS TO REVISE THESE PROVISIONS; TO AMEND SECTION 38-39-90, AS AMENDED, RELATING TO CANCELLATION OF INSURANCE CONTRACTS BY PREMIUM SERVICE COMPANIES AND THE CREDITING OF RETURN PREMIUMS WHICH RESULT IN A SURPLUS, SO AS TO ALLOW A REFUND OF SURPLUS TO AN AGENT OF AN INSURED AND TO PROVIDE THAT NO REFUND IS REQUIRED IF IT AMOUNTS TO LESS THAN FIVE DOLLARS, RATHER THAN THREE DOLLARS; TO AMEND SECTION 38-43-80, AS AMENDED, RELATING TO LICENSE FEES FOR AGENTS OF INSURERS, SO AS TO PROVIDE THAT FEES MUST BE PAID AS PRESCRIBED BY THE DEPARTMENT, RATHER THAN PAID IN ADVANCE; TO AMEND SECTION 38-55-30, AS AMENDED, RELATING TO THE AMOUNT OF RISK THAT AN INSURER OR CAPTIVE INSURER MAY EXPOSE ITSELF TO, SO AS TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO CAPTIVE INSURERS; TO AMEND SECTION 38-71-1370, AS AMENDED, RELATING TO THE APPLICATION OF GROUP ACCIDENT AND HEALTH INSURANCE PROVISIONS TO SMALL EMPLOYER INSURERS, SO AS TO EXCLUDE COVERAGE TO LATE ENROLLEES FOR A PERIOD OF TIME; TO AMEND SECTION 38-71-1980, RELATING TO EXPEDITED EXTERNAL REVIEWS, SO AS TO CHANGE AN INTERNAL CROSS REFERENCE; TO AMEND SECTION 38-87-40, AS AMENDED, RELATING TO REQUIREMENTS FOR OUT-OF-STATE CHARTERED RISK RETENTION GROUPS TO DO BUSINESS IN SOUTH CAROLINA, SO AS TO PROVIDE THAT SUCH GROUP IS SUBJECT TO TAXATION AS AN ADMITTED INSURER WOULD BE, RATHER THAN AS A FOREIGN ADMITTED INSURER WOULD BE; TO AMEND SECTION 38-90-60, RELATING TO INCORPORATION OPTIONS AND REQUIREMENTS FOR CAPTIVE INSURANCE COMPANIES, SO AS TO CHANGE A CROSS REFERENCE; TO AMEND SECTION 38-90-140, RELATING TO TAX PAYMENTS BY CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE THAT THESE TAXES MUST BE PAID TO THE DEPARTMENT OF INSURANCE RATHER THAN TO THE DIRECTOR OF THE DEPARTMENT; TO AMEND SECTION 38-90-180, RELATING TO THE APPLICATION OF CERTAIN PROVISIONS OF THE REHABILITATION AND LIQUIDATION ACT TO CAPTIVE INSURANCE COMPANIES, SO AS TO ALSO APPLY CERTAIN PROVISIONS OF THE ADMINISTRATIVE SUPERVISION OF INSURERS ACT TO THESE COMPANIES; TO AMEND SECTION 56-10-240, AS AMENDED, RELATING TO PROCEDURES THAT MOTOR VEHICLE INSUREDS AND INSURERS MUST FOLLOW IF A MOTOR VEHICLE SUBJECT TO FINANCIAL RESPONSIBILITY REQUIREMENTS BECOMES UNINSURED, SO AS TO PROVIDE THAT NOTICE MUST BE GIVEN TO THE DEPARTMENT OF INSURANCE IF THE LAPSE OR TERMINATION OCCURRED WITHIN THREE MONTHS OF THE ISSUANCE OF A NEW POLICY; AND TO AMEND SECTION 56-10-280, AS AMENDED, RELATING TO THE MINIMUM DURATION OF INSURANCE ISSUED TO MEET MOTOR VEHICLE FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO PROVIDE THAT IF A CHECK TENDERED BY THE INSURED IS RETURNED FOR INSUFFICIENT FUNDS, THE CANCELLATION IS EFFECTIVE AS OF THE POLICY INCEPTION OR RENEWAL DATE.

Senator THOMAS explained the Bill.

AMENDED, READ THE SECOND TIME

S. 627 (Word version) -- Senator Saleeby: A BILL TO PROVIDE FOR THE BUDGET AND TAX LEVIES OF FLORENCE COUNTY SCHOOL DISTRICT FOUR, AND TO PROVIDE FOR THE MANNER OF ELECTION OF THE BOARD OF TRUSTEES OF FLORENCE COUNTY SCHOOL DISTRICT FOUR; AND TO PROVIDE THAT FLORENCE COUNTY SCHOOL DISTRICT FOUR IS EXEMPTED FROM THE REQUIREMENTS OF ACT 806 OF 1952, AS AMENDED, RELATING TO THE ELECTION OF SCHOOL BOARD TRUSTEES, BUDGETS, AND APPROVAL OF TAX LEVIES.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator SALEEBY proposed the following amendment (NBD\11737AC01), which was adopted:

Amend the bill, as and if amended, by deleting SECTION 2 of the bill and inserting:

/SECTION   2.   Notwithstanding any other provision of law, the Board of Trustees of Florence County School District Four, beginning with the election for trustees in 2002, must be elected at the general election in November or on the first Tuesday following the first Monday in November in any year a November general election is held. The Florence County Election Commission shall conduct the election. The trustees whose terms expire in June of 2002, 2003, and 2004, continue to serve until their successors are elected and qualified following the elections provided for in the years 2002, 2003, and 2004, respectively. For the election to be held in June 2001, the polls must be open from 7:00 a.m. to 7:00 p.m./

Renumber sections to conform.

Amend title to conform.

Senator SALEEBY explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

S. 627--Ordered to a Third Reading

On motion of Senator SALEEBY, S. 627 was ordered to receive a third reading on Wednesday, May 16, 2001.

CARRIED OVER

S. 419 (Word version) -- Senators Pinckney, Drummond, Matthews, J. Verne Smith, Passailaigue, Ford, Glover, McConnell, Grooms and Jackson: A BILL TO AMEND SECTIONS 4-10-330, AS AMENDED, 4-10-340, AND 4-10-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BALLOT QUESTION AND REVENUE USES, TAX IMPOSITION AND TERMINATION, AND REVENUE DISTRIBUTION UNDER THE CAPITAL PROJECTS SALES TAX ACT, SO AS TO SPECIFICALLY AUTHORIZE THE TAX REVENUE TO BE USED TO PAY DEBT SERVICE ON BONDS ISSUED TO FUND THE APPROVED PROJECTS, TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL COLLECT THE TAX THROUGH THE QUARTER IN WHICH THE COUNTY CERTIFIES THAT NO BONDS REMAIN OUTSTANDING, TO PROVIDE THAT THE REFERENDUM QUESTION APPROVING A PROJECT MAY BE REVISED TO INCLUDE THE PRINCIPAL AMOUNT OF THE BONDS TO BE ISSUED FOR THE PROJECT WITH THE SOURCE TO PAY THE BONDS IF THE SALES TAX REVENUE IS INSUFFICIENT, TO PROVIDE THAT A QUESTION SO REVISED CONSTITUTES AN AUTHORIZATION TO ISSUE THE BONDS, TO PROVIDE ADDITIONAL REPORTING REQUIREMENTS ON THE USES OF QUARTERLY DISTRIBUTIONS OF THESE TAX REVENUES, AND TO PROVIDE FOR THE USE OF THESE REVENUES FOR THE REPAYMENT OF BONDS WHEN THE REQUIRED REFERENDUM AND REFERENDUM APPROVAL OCCURRED BEFORE THE EFFECTIVE DATE OF THIS ACT.

On motion of Senator MOORE, the Bill was carried over.

H. 3639 (Word version) -- Reps. Wilkins, Keegan and Kelley: A BILL TO AMEND SECTION 59-111-75, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MILITARY DEPARTMENT AND THE DEVELOPMENT OF A LOAN REPAYMENT PROGRAM TO ENABLE QUALIFIED STATE RESIDENTS TO ATTEND COLLEGE AS AN ENLISTMENT OR RETENTION INCENTIVE FOR THE NATIONAL GUARD, SO AS TO AUTHORIZE THE COMMISSION ON HIGHER EDUCATION TO DEVELOP AND MANAGE THE PROGRAM INSTEAD OF THE ADJUTANT GENERAL AND TO FURTHER PROVIDE FOR THE PROCEDURES, CONDITIONS, AND REQUIREMENTS OF THE PROGRAM; BY ADDING SECTION 59-114-75 SO AS TO PROVIDE THAT NATIONAL GUARD TUITION ASSISTANCE GRANTS MAY NOT BE MADE AFTER JUNE 30, 2001, AND TO PROVIDE FOR TRANSITIONAL PROVISIONS TO EFFECTUATE THE ABOVE INCLUDING A PROVISION THAT THE COMMISSION ON HIGHER EDUCATION SHALL BE RESPONSIBLE FOR ADMINISTERING TUITION ASSISTANCE GRANTS MADE BEFORE JULY 1, 2001.

On motion of Senator MOORE, the Bill was carried over.

H. 3696 (Word version) -- Rep. Harrison: A JOINT RESOLUTION TO AUTHORIZE THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION TO EXPEND UP TO ONE MILLION ONE HUNDRED SEVENTY-TWO THOUSAND SEVEN HUNDRED AND NINETY-FIVE DOLLARS OF THE FUNDS MADE AVAILABLE TO THE STATE UNDER SECTION 903 OF THE SOCIAL SECURITY ACT FOR THE PURPOSE OF DESIGNING AND ACQUIRING AN UNEMPLOYMENT TAX ACCOUNTING SYSTEM FOR USE BY THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION.

On motion of Senator LEVENTIS, the Joint Resolution was carried over.

H. 3900 (Word version) -- Reps. Vaughn, Kirsh, J.R. Smith, Koon, Dantzler, Davenport, Edge, Harvin, Keegan, Rivers and Bowers: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM THE STATE SALES AND USE TAX, SO AS TO INCLUDE AN EXEMPTION FOR MEALS OR FOODSTUFFS THAT ARE PREPARED OR PACKAGED THAT ARE SOLD TO PUBLIC OR NONPROFIT ORGANIZATIONS FOR CONGREGATE OR IN-HOME SERVICE TO THE HOMELESS OR NEEDY OR DISABLED ADULTS OVER EIGHTEEN YEARS OF AGE OR INDIVIDUALS OVER THE AGE OF SIXTY AND TO APPLY THIS EXEMPTION ONLY TO MEALS AND FOODSTUFFS ELIGIBLE FOR PURCHASE UNDER THE FEDERAL FOOD STAMP PROGRAM.

On motion of Senator PASSAILAIGUE, the Bill was carried over.

H. 4015 (Word version) -- Reps. Breeland, Whipper, Harrell, Weeks, Limehouse, Allison, Bowers, R. Brown, Dantzler, Emory, Gourdine, J. Hines, M. Hines, Hosey, Law, Lloyd, Mack, Meacham-Richardson, Miller, J.M. Neal, Rivers, Scarborough, Snow and Stuart: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-693 SO AS TO DESIGNATE PORGY AND BESS AS THE OFFICIAL OPERA OF THIS STATE AND TO PROVIDE THAT COPYRIGHTED OR PROPRIETARY MATERIAL FROM PORGY AND BESS MAY NOT BE USED WITHOUT THE PERMISSION OF THE OWNERS OF THAT MATERIAL.

On motion of Senator DRUMMOND, the Bill was carried over.

S. 601 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 37-17-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF PERSONS WHO SELL PRESCRIPTION DRUG DISCOUNT CARDS, SO AS TO PROVIDE THAT SUCH PERSONS MUST REGISTER AND REPORT TO THE DEPARTMENT OF CONSUMER AFFAIRS, RATHER THAN TO THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 38-5-80, AS AMENDED, RELATING TO REQUIREMENTS TO OBTAIN A LICENSE TO CONDUCT INSURANCE BUSINESS IN THIS STATE, SO AS TO CLARIFY WHAT BOOKS AND RECORDS OF AN INSURER MUST BE MAINTAINED IN THIS STATE; TO AMEND SECTION 38-31-20, AS AMENDED, RELATING TO DEFINITIONS IN THE SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT, SO AS TO INCLUDE NEW DEFINITIONS AND REVISE CERTAIN EXISTING DEFINITIONS; TO AMEND SECTION 38-31-60, RELATING TO THE POWERS AND DUTIES OF THE SOUTH CAROLINA PROPERTY AND CASUALTY GUARANTY ASSOCIATION, SO AS TO PROVIDE THAT THE ASSOCIATION'S OBLIGATION TO AN INSURED CEASES WHEN TEN MILLION DOLLARS HAS BEEN PAID TO OR ON BEHALF OF THE INSURED AND TO ALLOW FOR ALLOCATION OF PAYMENTS WHEN THERE IS MORE THAN ONE CLAIMANT WITH A COVERED CLAIM; TO AMEND SECTION 38-31-70, AS AMENDED, RELATING TO THE PLAN OF OPERATION FOR THE ADMINISTRATION OF THE GUARANTY ASSOCIATION, SO AS TO AUTHORIZE REPORTING AND THE DELEGATION OF CERTAIN AUTHORITY TO AN ASSOCIATION SIMILAR TO THE GUARANTY ASSOCIATION; TO AMEND SECTION 38-31-90, AS AMENDED, RELATING TO RIGHTS OF THE GUARANTY ASSOCIATION REGARDING CLAIMANTS PAID AND ASSETS OF INSOLVENT INSURERS, SO AS TO PROVIDE THAT THE ASSOCIATION HAS THE RIGHT TO RECOVER THE AMOUNT OF A CLAIM PAID FROM CERTAIN INSUREDS AND AFFILIATES OF AN INSOLVENT INSURER; TO AMEND SECTION 38-31-100, AS AMENDED, RELATING TO PROCEDURES REQUIRED TO BE FOLLOWED BY PERSONS ASSERTING CLAIMS AND TO LIMITATIONS ON CLAIMS, SO AS TO REVISE THESE PROVISIONS; TO AMEND SECTION 38-39-90, AS AMENDED, RELATING TO CANCELLATION OF INSURANCE CONTRACTS BY PREMIUM SERVICE COMPANIES AND THE CREDITING OF RETURN PREMIUMS WHICH RESULT IN A SURPLUS, SO AS TO ALLOW A REFUND OF SURPLUS TO AN AGENT OF AN INSURED AND TO PROVIDE THAT NO REFUND IS REQUIRED IF IT AMOUNTS TO LESS THAN FIVE DOLLARS, RATHER THAN THREE DOLLARS; TO AMEND SECTION 38-43-80, AS AMENDED, RELATING TO LICENSE FEES FOR AGENTS OF INSURERS, SO AS TO PROVIDE THAT FEES MUST BE PAID AS PRESCRIBED BY THE DEPARTMENT, RATHER THAN PAID IN ADVANCE; TO AMEND SECTION 38-55-30, AS AMENDED, RELATING TO THE AMOUNT OF RISK THAT AN INSURER OR CAPTIVE INSURER MAY EXPOSE ITSELF TO, SO AS TO PROVIDE THAT THIS SECTION DOES NOT APPLY TO CAPTIVE INSURERS; TO AMEND SECTION 38-71-1370, AS AMENDED, RELATING TO THE APPLICATION OF GROUP ACCIDENT AND HEALTH INSURANCE PROVISIONS TO SMALL EMPLOYER INSURERS, SO AS TO EXCLUDE COVERAGE TO LATE ENROLLEES FOR A PERIOD OF TIME; TO AMEND SECTION 38-71-1980, RELATING TO EXPEDITED EXTERNAL REVIEWS, SO AS TO CHANGE AN INTERNAL CROSS REFERENCE; TO AMEND SECTION 38-87-40, AS AMENDED, RELATING TO REQUIREMENTS FOR OUT-OF-STATE CHARTERED RISK RETENTION GROUPS TO DO BUSINESS IN SOUTH CAROLINA, SO AS TO PROVIDE THAT SUCH GROUP IS SUBJECT TO TAXATION AS AN ADMITTED INSURER WOULD BE, RATHER THAN AS A FOREIGN ADMITTED INSURER WOULD BE; TO AMEND SECTION 38-90-60, RELATING TO INCORPORATION OPTIONS AND REQUIREMENTS FOR CAPTIVE INSURANCE COMPANIES, SO AS TO CHANGE A CROSS REFERENCE; TO AMEND SECTION 38-90-140, RELATING TO TAX PAYMENTS BY CAPTIVE INSURANCE COMPANIES, SO AS TO PROVIDE THAT THESE TAXES MUST BE PAID TO THE DEPARTMENT OF INSURANCE RATHER THAN TO THE DIRECTOR OF THE DEPARTMENT; TO AMEND SECTION 38-90-180, RELATING TO THE APPLICATION OF CERTAIN PROVISIONS OF THE REHABILITATION AND LIQUIDATION ACT TO CAPTIVE INSURANCE COMPANIES, SO AS TO ALSO APPLY CERTAIN PROVISIONS OF THE ADMINISTRATIVE SUPERVISION OF INSURERS ACT TO THESE COMPANIES; TO AMEND SECTION 56-10-240, AS AMENDED, RELATING TO PROCEDURES THAT MOTOR VEHICLE INSUREDS AND INSURERS MUST FOLLOW IF A MOTOR VEHICLE SUBJECT TO FINANCIAL RESPONSIBILITY REQUIREMENTS BECOMES UNINSURED, SO AS TO PROVIDE THAT NOTICE MUST BE GIVEN TO THE DEPARTMENT OF INSURANCE IF THE LAPSE OR TERMINATION OCCURRED WITHIN THREE MONTHS OF THE ISSUANCE OF A NEW POLICY; AND TO AMEND SECTION 56-10-280, AS AMENDED, RELATING TO THE MINIMUM DURATION OF INSURANCE ISSUED TO MEET MOTOR VEHICLE FINANCIAL RESPONSIBILITY REQUIREMENTS, SO AS TO PROVIDE THAT, IF A CHECK TENDERED BY THE INSURED IS RETURNED FOR INSUFFICIENT FUNDS, THE CANCELLATION IS EFFECTIVE AS OF THE POLICY INCEPTION OR RENEWAL DATE.

On motion of Senator THOMAS, the Bill was carried over.

AMENDMENT PROPOSED, CARRIED OVER

H. 3515 (Word version) -- Reps. Sandifer, Robinson, Allison, Altman, Askins, Barfield, Barrett, Bingham, Carnell, Cato, Chellis, Cobb-Hunter, Cooper, Dantzler, Harrell, Huggins, Keegan, Kelley, Kirsh, Klauber, Law, Leach, Martin, Meacham-Richardson, J.M. Neal, Phillips, Rice, Riser, Simrill, D.C. Smith, W.D. Smith, Snow, Talley, Taylor, Thompson, Trotter, Walker, Whipper, Wilder, A. Young, McLeod, Davenport, Emory, Sinclair and Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-19-235 SO AS TO PROVIDE THAT A NONRESIDENT EMBALMER OR FUNERAL DIRECTOR MAY BE LICENSED IN THIS STATE IF THE LICENSURE REQUIREMENTS OF HIS STATE ARE SUBSTANTIALLY SIMILAR TO REQUIREMENTS OF THIS STATE AND TO REQUIRE FIVE YEARS OF PRACTICE AND PASSAGE OF AN EXAMINATION FOR LICENSURE WHEN THE LICENSURE REQUIREMENTS IN ANOTHER STATE ARE NOT SUBSTANTIALLY SIMILAR TO REQUIREMENTS IN THIS STATE; TO ADD SECTION 40-19-265 SO AS TO ESTABLISH PERMIT REQUIREMENTS FOR FUNERAL HOMES, BRANCH FUNERAL HOMES, RETAIL SALES OUTLETS, AND CREMATORIES; TO AMEND SECTION 40-19-10, AS AMENDED, RELATING TO THE SOUTH CAROLINA STATE BOARD OF FUNERAL SERVICE, SO AS TO REQUIRE ALL FUNERAL DIRECTORS AND EMBALMERS SERVING ON THE BOARD TO BE FULL-TIME EMPLOYEES OF A FUNERAL ESTABLISHMENT; TO AMEND SECTION 40-19-20, AS AMENDED, RELATING TO DEFINITIONS CONCERNING EMBALMERS AND FUNERAL DIRECTORS, SO AS TO REVISE, AMONG OTHER DEFINITIONS, "BRANCH FUNERAL HOME", "DISPOSITION", AND "MANAGER" AND TO DEFINE ADDITIONAL TERMS; TO AMEND SECTION 40-19-110, AS AMENDED, RELATING TO GROUNDS FOR MISCONDUCT, SO AS TO PROHIBIT SOLICITING THE SALE OF FUNERAL MERCHANDISE AND TO CLARIFY OTHER GROUNDS; TO AMEND SECTION 40-19-230, RELATING TO QUALIFICATIONS FOR LICENSURE, SO AS TO CHANGE THE ACCREDITING BODY FOR EMBALMING COLLEGES AND TO CONFORM PROVISIONS TO THE REVISED LICENSURE REQUIREMENTS FOR OUT-OF-STATE EMBALMERS AND FUNERAL DIRECTORS; TO AMEND SECTION 40-19-270, RELATING TO PERMITS AND INSPECTIONS OF FUNERAL ESTABLISHMENTS AND CREMATORIES, SO AS TO APPLY CERTAIN OF THESE PROVISIONS TO RETAIL SALES OUTLETS; TO AMEND SECTION 40-19-280, RELATING TO THE REQUIREMENT THAT A PERSON BE LICENSED TO HOLD HIMSELF OUT AS PRACTICING FUNERAL SERVICE OR OPERATING A FUNERAL ESTABLISHMENT, SO AS TO APPLY THIS LICENSURE REQUIREMENT TO A PERSON OPERATING A CREMATORY OR A RETAIL SALES OUTLET; AND TO AMEND SECTION 40-19-290, RELATING TO DISCLOSURE OF INFORMATION AND EXPENSES TO CLIENTS BY FUNERAL ESTABLISHMENTS, SO AS TO ALSO REQUIRE CREMATORIES TO DISCLOSE SUCH INFORMATION AND EXPENSES TO ITS CLIENTS.

The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.

Senator PINCKNEY proposed the following amendment (PINCKNEY-3515-01):

Amend the bill, as and if amended, page 4 by deleting lines 26, 27, and 28 and inserting the following:

/       The South Carolina Funeral Directors Association may recommend five members, the South Carolina Morticians Association may recommend five members, and an individual or           /

Renumber sections to conform.

Amend title to conform.

Senator PINCKNEY explained the amendment.

On motion of Senator MOORE, the Bill was carried over.

AMENDMENT PROPOSED, CARRIED OVER

H. 3529 (Word version) -- Reps. Stille, Townsend, Carnell, Allison, Littlejohn, Sandifer and Walker: A BILL TO AMEND SECTIONS 59-4-20 AND 59-4-40, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS AND FUND ADMINISTRATION FOR PURPOSES OF THE SOUTH CAROLINA TUITION PREPAYMENT PROGRAM ACT, SO AS TO FURTHER DEFINE "TUITION" AND TO PROVIDE THAT THE CONTENTS OF THE REVOLVING FUND, INCLUDING ANY RIGHT OF REFUND OR ANY OTHER RIGHT ACCRUED BY A PERSON IN THE FUND IS EXEMPT FROM LEGAL PROCESS AND IS UNASSIGNABLE.

The Senate proceeded to a consideration of the amendment, the question being the third reading of the Bill.

Senators RANKIN, MOORE, REESE, WILSON, HUTTO, SETZLER and LEVENTIS proposed the following amendment (3529R003.LAR):

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

/ SECTION   1.   Section 59-4-20(10) of the 1976 Code, as amended by Act 410 of 2000, is further amended to read:

"(10)   'Tuition', for purposes of this chapter only, means the credit-hour charges imposed by a public higher education institution in this State and all mandatory fees required as a condition of enrollment of all students registration or matriculation, credit-hour charges, and mandatory college fees, including athletic or activity, medical or infirmary, and capital improvement fees, imposed by a public higher education institution in this State as a condition of enrollment of all full-time, undergraduate students regardless of class. Tuition does not under any circumstance include the expenses for student housing, meal plans, books, class or lab supplies and equipment, uniforms and laundry, transportation, course-specific fees, or any other fees or charges the program did not consider in the determination of the annual contract pricing structure, regardless of how these fees are characterized by the institution."

SECTION   2.   Section 59-4-40 of the 1976 Code, as amended by Act 410 of 2000, is further amended to read:

"Section 59-4-40.   (A)   The fund is a nonpublic special, revolving fund established and maintained by the State of South Carolina. The fund consists of monies received from contributors, other monies acquired from governmental and private sources, and proceeds from the investments of the fund. The fund may expend funds for the purposes of this chapter only and may not be considered public funds. There must be a separate accounting for each designated beneficiary.

(B)   The fund must be invested as directed by the treasurer. However, earnings in the fund or a portion of the fund may not be used as security for a loan. An attempt to use the fund, a contract, or a portion of either as security for a loan is void. The fund may receive amounts transferred from a Uniform Gift to Minors Act, Uniform Trust to Minors Act, or other account established for the benefit of a minor provided that the beneficiary of such an account is identified as the legal owner of the South Carolina Tuition Prepayment Program contract upon attaining majority age. The fund, contributions to the fund, and the right of a person to a refund of contributions or any other right accrued or accruing to any person under the provisions of this chapter are exempt from attachment, garnishment, levy, and sale under any means or final process issued by any court or bankruptcy proceeding and are unassignable except as specifically otherwise provided in this chapter. The fund may be invested in a manner authorized by law. The funds may be invested and reinvested in any of the following:

(1)   securities authorized pursuant to Article 7, Chapter 9, Title 11;

(2)   equity securities of a corporation that is registered on a national securities exchange, as provided in the Securities Exchange Act, 1934, or a successor act, or quoted through the National Association of Securities Dealers Automatic Quotations System, or a similar service; and

(3)   securities issued by an investment company registered under the Investment Company Act of 1940, or a successor act.

(C)   The custody and management of the fund is must be directed by the treasurer and invested in accordance with the written investment policies approved by the treasurer. The earnings from fund investments become a part of the fund and may be expended for the purposes of this chapter only."

SECTION   3.   Title 59 of the 1976 Code is amended by adding:

  "CHAPTER 2

South Carolina Tuition Savings Program Act

Section 59-2-10.   This chapter may be cited as the 'South Carolina Tuition Savings Program Act' (SCTSP).

Section 59-2-20.   The General Assembly finds and declares as follows:

(1)   Education costs at institutions of higher learning are difficult for many to afford and difficult to predict. As a result, the ability of individuals and families to plan for future educational expenses has been adversely affected.

(2)   It is in the best interest of the citizens of this State to foster higher education in order to provide well-educated citizens.

(3)   It is in the best interest of the citizens of this State to encourage state residents to enroll in institutions of higher learning.

(4)   Providing a mechanism to help assure the higher education of the citizens of this State is necessary and desirable for the public health, safety, and welfare.

(5)   The purposes of this chapter are to:

(a)   provide wide and affordable access to the public institutions of higher learning for the residents of this State;

(b)   encourage attendance at institutions of higher learning and help individuals plan for educational expenses;

(c)   provide a program of savings trust agreements to apply distributions toward qualified higher education expenses at eligible educational institutions, as defined in Section 529 of the Internal Revenue Code, as amended, or other applicable federal law;

(d)   provide for the creation of a trust fund, as an instrumentality of the State of South Carolina, to assist qualified students in financing costs of attending institutions of higher education;

(e)   encourage timely financial planning for higher education by the creation of savings trust accounts;

(f)   provide a choice of programs to persons who determine that the overall educational needs of their families are best suited to a prepaid tuition contract under the South Carolina Tuition Prepayment Program, or a savings trust agreement under this chapter, or both;

(g)   provide a savings program for those who wish to save to meet postsecondary educational needs beyond the traditional baccalaureate curriculum.

Section 59-2-30.   The following terms have the meanings below unless the context clearly indicates otherwise:

(1)   'SCTSP Trust Fund' means the special fund designated as the 'South Carolina College Investment Trust Fund' and administered by the Office of State Treasurer.

(2)   'Account owner' means a person, corporation, trust, charitable organization, or other such entity who contributes to or invests money in a savings trust account under SCTSP established pursuant to this chapter on behalf of a beneficiary and who is listed as the owner of the savings trust account.

(3)   'Beneficiary' means a beneficiary of a savings trust agreement who meets the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, as well as any regulations established by the Office of State Treasurer.

(4)   'Contributor' means any person, corporation, trust, charitable organization, or other such entity who contributes money or makes a payment to a savings trust account established pursuant to this chapter on behalf of a beneficiary.

(5)   'Director' means the head of the South Carolina Tuition Prepayment Program and SCTSP who is appointed and supervised by the State Treasurer.

(6)   'Institution of higher learning' means any institution of higher learning which is an eligible education institution as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or any other applicable federal law.

(7)   'Tuition' means the quarter, semester, or term charges and all required fees imposed by an institution of higher learning as a condition of enrollment by all students.

(8)   'Savings trust account' means an account established by an account owner pursuant to this chapter on behalf of a beneficiary in order to apply distributions from the account toward qualified higher education expenses at eligible educational institutions, as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.

(9)   'Savings trust agreement' means the agreement entered into between the Office of State Treasurer and the account owner establishing a savings trust account.

(10)   'State Treasurer' means the South Carolina State Treasurer.

(11)   'Qualified higher education expense' means any higher education expense as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law.

(12)   'Qualified withdrawal' means a withdrawal by an account owner or beneficiary for qualified higher education expenses or as otherwise permitted under Section 529 of the Internal Revenue Code of 1986, as amended, without a penalty required thereunder.

Section 59-2-40.   The Office of State Treasurer shall have responsibility over both SCTSP and the South Carolina Tuition Prepayment Program (SCTPP) established under Chapter 4 of this title.

Section 59-2-50.   In addition to the powers granted by any other provision of this chapter, the Office of State Treasurer shall have the powers necessary to carry out the purposes and provisions of this chapter and the purposes and objectives of the trust fund including, but not limited to, the following:

(1)   adopt those regulations as are necessary to implement the provisions of this chapter, subject to applicable federal laws and regulations, including regulations regarding transfers of funds between accounts established under prepaid tuition contracts and savings trust agreements;

(2)   execute contracts and other necessary instruments;

(3)   impose reasonable limits on the number of contract participants in the trust fund at any given period of time;

(4)   contract for necessary goods and services, to employ necessary personnel, and to engage the services of consultants and other qualified persons and entities for administrative and technical assistance in carrying out the responsibilities of the trust funds under terms and conditions that the State Treasurer deems reasonable, to include contract terms for periods of up to ten years which contract may be terminated, extended, or renewed with these entities for a term determined by the State Treasurer, but in no event shall such contract exceed a term of ten years at any one time;

(5)   solicit and accept gifts, as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, as well as any regulations established by the Office of State Treasurer, and to participate in any other way in any federal, state, or local governmental programs in carrying out the purposes of this chapter;

(6)   define the terms and conditions under which payments may be withdrawn or refunded from the trust fund and impose reasonable charges for such withdrawal or refund;

(7)   impose reasonable time limits on the use of savings trust account distributions provided by the program;

(8)   regulate the receipt of contributions or payments to the trust fund;

(9) establish agreements or other transactions with federal, state, and local agencies, including state institutions of higher learning;

(10)   segregate contributions and payments to the fund into various accounts and funds;

(11)   require and collect administrative fees and impose reasonable penalties, not to exceed the minimum penalties required under Section 529 of the Internal Revenue Service Code of 1986, as amended, for withdrawal of funds for nonqualified higher educational expenses or for entering into a savings trust agreement on a fraudulent basis;

(12)   require that account owners of savings trust agreements verify, under oath, any requests for contract conversions, substitutions, transfers, cancellations, or refund requests;

(13)   solicit proposals and contract for the marketing of the SCTSP Program, provided that any materials produced by a marketing contractor for the purpose of marketing the program must be approved by the State Treasurer prior to being made available to the public, and neither the State nor the Office of State Treasurer shall be liable for misrepresentation of the program by a marketing contractor;

(14)   delegate responsibility for administration of the comprehensive investment plan to contractors or consultants the State Treasurer determines to be qualified;

(15)   create as a part of the comprehensive investment plan various age-based investment options for the contributor to choose among on an annual basis, given that the investment options meet the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, and neither a contributor or beneficiary is directly or indirectly directing the investment of any contribution to the program;

(16)   establish procedures to allow for transfer of funds from an existing South Carolina Tuition Prepayment Program account for any other college savings account as allowable under Section 529 of the Internal Revenue Code of 1986, as amended;

(17)   to make all necessary and appropriate arrangements with colleges and universities or other entities in order to fulfill its obligations under savings trust agreements; and

(18)   establish other policies, procedures, and criteria necessary to implement and administer the provisions of this chapter in compliance with Section 529 of the Internal Revenue Code of 1986, as amended, and other applicable federal and state law.

Section 59-2-60.   (A)   The Office of State Treasurer shall make savings trust agreements available to the public, under which account owners or other contributors may make contributions on behalf of beneficiaries. These contributions and investment earnings on these contributions may be used for any qualified higher educational expenses of a designated beneficiary. There is no guarantee by the State that the contributions, together with the investment return on the contributions, if any, will be adequate to pay for qualified education expenses in full.

(B)   Each savings trust agreement made pursuant to this chapter must include the following terms and provisions:

(1)   the maximum and minimum contributions allowed on behalf of each beneficiary for the payment of qualified higher education expenses at eligible institutions, both as defined in Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law, so that in no case shall the maximum allowable contribution be less than the amount allowable for gift tax exclusion under Section 529 of the Internal Revenue Code of 1986, as amended;

(2)   provisions for withdrawals, refunds, transfers, and any penalties;

(3)   the name, address, and date of birth of the beneficiary on whose behalf the savings trust account is opened;

(4)   terms and conditions for a substitution of the beneficiary originally named;

(5)   terms and conditions for termination of the account, including any refunds, withdrawals, or transfers, applicable penalties, and the name of the person entitled to terminate the account;

(6)   the time period during which the beneficiary must use benefits from the savings trust account;

(7)   all other rights and obligations of the account owner and the SCTSP Trust Fund; and

(8)   any other terms and conditions which the State Treasurer deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law or regulations.

Section 59-2-70.   (A)   There is created a South Carolina Tuition Savings Trust Fund separate and distinct from the state general fund, the SCTSP Trust Fund, to be administered by the Office of State Treasurer. The SCTSP Trust Fund shall consist of money remitted in accordance with savings trust agreements. The trust fund shall receive and hold all payments, contributions, and deposits intended for it as well as all earnings thereon until disbursed as provided hereunder.

(B)   The amounts on deposit in the trust fund do not constitute property of the State. Amounts on deposit in the trust fund must not be commingled with other state funds and the State shall have no claim to or interest in such funds. Savings trust agreements or any other contract entered into by or on behalf of the trust fund do not constitute a debt or obligation of the State and no account owner shall be entitled to any amounts except for those amounts on deposit in or accrued to their account.

(C)   The SCTSP Trust Fund shall continue in existence as long as it holds any funds belonging to an account owner or otherwise has any obligations to any person or entity until its existence is terminated by law and remaining assets on deposit are returned to account owners or transferred to the State as provided by law.

(D)   The Office of State Treasurer shall administer the fund, including, without limitation, the keeping of records, the management of bank accounts and other investments, the transfer of funds and the safekeeping of securities evidencing investments. These functions may be administered pursuant to a management agreement with a qualified entity or entities.

(E)   Payments received by the Office of State Treasurer on behalf of beneficiaries from account owners and other contributors shall be placed in the trust fund.

(F)   The State Treasurer shall cause there to be maintained separate records and accounts for individual beneficiaries as may be required under Section 529 of the Internal Revenue Code of 1986, as amended, and any other applicable federal law.

(G)   Account owners and any other contributors shall only be permitted to contribute cash or any other form of payment or contribution as may be permitted under Section 529 of the Internal Revenue Code of 1986, as amended, and approved by the State Treasurer. The director shall cause the program to maintain adequate safeguards against contributions in excess of what may be required for Qualified Higher Education Expenses. The trust fund is specifically authorized to receive and deposit into the trust fund any monetary gift made by an individual by testamentary disposition including, without limitation, any specific gift or bequeath made by will, trust, or other disposition to the extent permitted under Section 529 of the Internal Revenue Code of 1986, as amended. The trust fund may receive amounts transferred from an UGMA, UTMA, or other account established for the benefit of a minor provided that the trust beneficiary of such an account is identified as the legal owner of the SCTSP Trust Fund account upon attaining majority age.

(H)   The account owner retains ownership of all amounts on deposit in his or her account with the program up to the date of distribution on behalf of a designated beneficiary unless otherwise provided herein. Earnings derived from investment of the contributions shall be considered to be held in trust in the same manner as contributions, except as applied for purposes of the designated beneficiary. Amounts on deposit therein shall be available for expenses and penalties imposed by the Office of State Treasurer for the program as disclosed in the savings trust agreement.

(I)   The assets of the SCTSP Trust Fund shall be preserved, invested, and expended solely pursuant to and for the purposes of this chapter and shall not be loaned or otherwise transferred or used by the State of South Carolina for any other purpose.

Section 59-2-80.   (A)   All property and income of the SCTSP Trust Fund, as an instrumentality of the State, shall be exempt from all taxation by the State and by its political subdivisions.

(B)   Any interest, dividends, gains, or income accruing on the payments made pursuant to a savings trust agreement under the terms of this chapter or on any account in the SCTSP Trust Fund shall be excluded from the gross income of any such account owner, contributor, or beneficiary for purposes of South Carolina income taxes, to the extent such amounts remain on deposit in the SCTSP Trust Fund or are withdrawn pursuant to a qualified withdrawal. The SCTSP Trust Fund and Tuition Prepayment Program under Chapter 4 of this title shall constitute the only programs established pursuant to Section 529 of the Internal Revenue Code of 1986, as amended.

(C)   The earnings portion of any withdrawals from an account that are not qualified withdrawals shall be included in the gross income of the resident recipient of the withdrawal for purposes of South Carolina income taxes in the year of the withdrawal.

(D)   Contributions to a savings trust account created under this chapter by a resident of this State or a nonresident required to file a State of South Carolina income tax return for any year are deductible from South Carolina income subject to tax for that year up to the limit of maximum contributions allowed to such accounts under Section 529 of the Internal Revenue Code of 1986, as amended, including funds transferred to a savings trust account from another qualified college savings account, as allowable under Section 529 of the Internal Revenue Code of 1986, as amended, to the extent that the transferred funds where not permitted a State income tax reduction previously under state law.

Section 59-2-90.   (A)   The Office of State Treasurer has authority to establish a comprehensive investment plan for the purposes of this chapter, to invest any funds of the trust fund in any instrument, obligation, security, or property that constitutes legal investments and to name and use depositories for its investments and holdings. The comprehensive investment plan shall specify the investment policies to be utilized by the State Treasurer in its administration of the funds.

Notwithstanding any provisions of law, the Office of State Treasurer shall invest or cause to be invested amounts on deposit in the trust fund in a manner reasonable and appropriate to achieve the objectives of the program, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. The Office of State Treasurer shall give due consideration to the risk, expected rate of return, term or maturity, diversification of total investments, liquidity and anticipated investments in and withdrawals from the trust fund.

(B)   All investments shall be acquired at prices not exceeding the prevailing market values for such securities.

(C)   Any limitations herein set forth shall be applicable only at the time of purchase and shall not require the liquidation of any investment at any time. All investments shall be clearly marked to indicate ownership by the trust fund and to the extent possible shall be registered in the name of the trust fund.

(D)   Subject to the above terms, conditions, limitations, and restrictions, the Office of State Treasurer shall have power to sell, assign, transfer, and dispose of any of the securities and investments of the trust fund. The State Treasurer may employ or contract with investment managers, evaluation services, or other such services as determined by the Office of State Treasurer to be necessary for the effective and efficient operation of the trust fund.

(E)   Except as otherwise provided herein, no employee of the trust fund shall have any direct or indirect interest in the income, gains, or profits of any investment made by the trust fund, nor shall any such person receive any pay or emolument for his services in connection with any investment made by the trust fund.

(F)   Under the authority granted in Section 59-2-50, the State Treasurer may establish criteria for investment managers, mutual funds, or other entities to act as contractors or consultants to the Office of State Treasurer. The State Treasurer may contract, either directly or through these contractors or consultants, to provide such services as may be a part of the comprehensive investment plan or as may be deemed necessary or proper by the State Treasurer including, but not limited to, providing consolidated billing, individual and collective record keeping and accounting, and asset purchase, control, and safekeeping. Any fees charged by and any reimbursement of expenses to any managing entity may not exceed one and one-half percent of the annual contributions to each savings trust account.

(G)   No account owner, contributor, contributors, or beneficiary may directly or indirectly direct the investment of any account except as may be permitted under Section 529 of the Internal Revenue Code of 1986, as amended.

(H)   The Office of State Treasurer may approve different investment plans and options to be offered to participants to the extent permitted under Section 529 of the Internal Revenue Code of 1986, as amended, and consistent with the objectives of this chapter and may require the assistance of investment counseling prior to participation in different options.

Section 59-2-100.   (A)   The State Treasurer shall furnish without charge to each account owner an annual statement of:

(1)   the amount contributed by the account owner under the savings trust agreement;

(2)   the annual earnings and accumulated earnings on the savings trust account; and

(3)   any other terms and conditions which the State Treasurer deems necessary or appropriate, including those necessary to conform the savings trust account with the requirements of Section 529 of the Internal Revenue Code of 1986, as amended, or other applicable federal law or regulations.

(B)   The State Treasurer shall furnish an additional statement complying with subsection (A) to an account owner or beneficiary on written request. The State Treasurer may charge a reasonable fee for each statement furnished under this subsection.

(C)   The Office of State Treasurer shall prepare or cause to be prepared an annual report setting forth in appropriate detail an accounting of the funds and a description of the financial condition of the program at the close of each fiscal year. Such report shall be submitted to the Governor and the General Assembly. In addition, the Office of State Treasurer shall make the report available to account owners of savings trust agreements. The accounts of the fund shall be subject to annual audits by the State Auditor or his designee.

Section 59-2-110.   This chapter is not a promise or guarantee that the beneficiary will be:

(a)   admitted to any institution of higher learning;

(b)   allowed to continue enrollment at an institution of higher learning; or

(c)   graduated from an institution of higher learning.

Section 59-2-120.   Nothing in this chapter or in any savings trust agreement entered into pursuant to this chapter shall be construed as a promise or guarantee by the State or any agency thereof that either qualified higher education expenses in general or any specific qualified higher education expense shall be covered in full by contributions or earnings on any savings trust account. Savings trust accounts and agreements entered into pursuant to this chapter are not guaranteed by the full faith and credit of the State of South Carolina.

Section 59-2-130.   Notwithstanding any provision of law, no moneys on deposit in the SCTSP Trust Fund shall be considered an asset of either the parent, guardian, or student for purposes of determining an individual's eligibility for a need based grant, a need based scholarship, or a need based work opportunity offered or administered by any state agency except as may be required by the funding source of such financial aid.

Section 59-2-140.   The SCTSP Trust Fund, contributions to the SCTSP Trust Fund, and the right of a person to a refund of contributions or any other right accrued or accruing to any person under the provisions of this chapter are exempt from attachment, garnishment, levy, and sale under any means or final process issued by any court or bankruptcy proceeding and are unassignable except as specifically otherwise provided in this chapter.

Section 59-2-150.   The provisions of this chapter are severable. If any part of this chapter is declared invalid or unconstitutional, such declaration shall not affect the parts which remain."

SECTION   4.   This act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

On motion of Senator RANKIN, the Bill was carried over.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO A CONSIDERATION OF H. 3687, THE GENERAL APPROPRIATION BILL.

DEBATE INTERRUPTED

H. 3687--GENERAL APPROPRIATION BILL

The Senate proceeded to a consideration of the Bill, the question being the adoption of the Report proposed by the Senate Finance Committee.

Senator LEATHERMAN spoke on the Report.

Notice of Motion

Senator HUTTO, under the provisions of Rule 43, gave notice of a motion to suspend all of the Rules of the Senate.

Objection

Senator LEATHERMAN asked unanimous consent to make a motion to delete Proviso 72.87 of Part 1B of the Bill.

Senator HUTTO objected.

Senator LEATHERMAN spoke on the Report.

RECESS

At 12:12 P.M., with Senator LEATHERMAN retaining the floor, on motion of Senator RYBERG, with unanimous consent, the Senate receded from business not to exceed ten minutes.

At 12:30 P.M., the Senate resumed.

Senator LEATHERMAN spoke on the Report.

RECESS

At 12:30 P.M., on motion of Senator LEATHERMAN, the Senate receded from business until 1:30 P.M.

On motion of Senator LEATHERMAN, debate was interrupted by the recess.

AFTERNOON SESSION

The Senate reassembled, at 1:34 P.M., and was called to order by the PRESIDENT.

DEBATE INTERRUPTED

H. 3687--GENERAL APPROPRIATION BILL

The Senate resumed consideration of the Bill, the question being the adoption of the Report proposed by the Senate Finance Committee.

Senator LEATHERMAN spoke on the Report.

Point of Quorum

At 1:35 P.M., Senator LEVENTIS made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator LEVENTIS moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Bauer
Branton                   Courson                   Drummond
Fair                      Ford                      Giese
Glover                    Gregory                   Grooms
Hawkins                   Hayes                     Holland
Hutto                     Land                      Leatherman
Leventis                  Martin                    Matthews
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Passailaigue
Patterson                 Peeler                    Rankin
Ravenel                   Reese                     Richardson
Ritchie                   Ryberg                    Saleeby
Setzler                   Short                     Smith, J. Verne
Thomas                    Verdin                    Waldrep
Wilson

A quorum being present, the Senate resumed.

Recorded Presence

Senators ELLIOTT, JACKSON and PINCKNEY recorded their presence subsequent to the Call of the Senate.

Senator LEATHERMAN spoke on the Report.

Objection
Proviso 69A.2

Senator LEATHERMAN asked unanimous consent to make a motion to delete Proviso 69A.2 of Part 1B.

Senator LEATHERMAN explained the proviso.

Senator LAND objected.

Objection
Proviso 69A.2

Senator LEATHERMAN asked unanimous consent to make a motion to adopt Proviso 69A.2 of Part 1B.

Senators SETZLER and WILSON objected.

Objection
Proviso 72.87

Senator LEATHERMAN asked unanimous consent to make a motion to delete Proviso 72.87 of Part 1B and fund $20 million for personal property tax relief.

Senator LEATHERMAN explained the proviso.

Senator LAND objected.

Under Rule 43, Senator LEATHERMAN moved to suspend Rules 24A and 24B regarding the Report of the Senate Finance Committee on the General Appropriation Bill.

Point of Order

Senator PASSAILAIGUE raised a Point of Order that the motion was out of order inasmuch as the suspension must apply equally to all amendments and he further stated that to have a suspension apply to one class of amendments would require unanimous consent.

Senator LEATHERMAN spoke on the Point of Order.

Parliamentary Inquiry

Senator MOORE made a Parliamentary Inquiry as to whether the motion pertained to solely the Report of the Senate Finance Committee.

Senator LEATHERMAN restated the motion.

Senators MOORE and McCONNELL spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Senator PASSAILAIGUE appealed the decision of the PRESIDENT.

ACTING PRESIDENT PRESIDES

At 1:58 P.M., Senator McCONNELL assumed the Chair.

The question then was: "Shall the ruling of the PRESIDENT be overridden?"

Under Rule 11, Senator LEVENTIS requested that the motion by Senator LEATHERMAN be submitted in writing to the Desk and, further, that it be distributed to the members.

Senator PASSAILAIGUE argued contra to the decision of the PRESIDENT.

Point of Order

Senator GROOMS raised a Point of Order that the Senator was not speaking directly to the question.

The ACTING PRESIDENT took the Point of Order under advisement.

Senator PASSAILAIGUE continued arguing contra to the decision of the PRESIDENT.

Parliamentary Inquiry

Senator MOORE made a Parliamentary Inquiry as to whether or not the two-hour limit on debate included questions directed to the speaker.

The ACTING PRESIDENT stated that the time for debate was limited to two hours.

Senator PASSAILAIGUE continued arguing contra to the decision of the PRESIDENT.

Parliamentary Inquiry

Senator RICHARDSON made a Parliamentary Inquiry as to whether or not Rule 7 provided for equal time for debate by both proponents and opponents.

The ACTING PRESIDENT stated that the time for debate was limited to two hours.

Senator PASSAILAIGUE continued arguing contra to the decision of the PRESIDENT.

Parliamentary Inquiry

Senator MOORE made a Parliamentary Inquiry as to what the next order of business would be after disposition of the appeal of the decision of the PRESIDENT and disposition of the motion to suspend Rules 24A and 24B regarding the Report of the Senate Finance Committee to the General Appropriation Bill.

The ACTING PRESIDENT stated that, after disposition of those matters, the next order of business would be consideration of any perfecting amendments to the Report of the Senate Finance Committee to the General Appropriation Bill.

Senator PASSAILAIGUE continued arguing contra to the decision of the PRESIDENT.

The ACTING PRESIDENT indicated that the time had arrived to vote on the question: "Shall the ruling of the PRESIDENT be overridden?"

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 20; Nays 26

AYES

Anderson                  Drummond                  Ford
Glover                    Holland                   Hutto
Jackson                   Land                      Leventis
Matthews                  Moore                     O'Dell
Passailaigue              Patterson                 Pinckney
Rankin                    Reese                     Saleeby
Setzler                   Short

Total--20

NAYS

Alexander                 Bauer                     Branton
Courson                   Elliott                   Fair
Giese                     Gregory                   Grooms
Hawkins                   Hayes                     Leatherman
Martin                    McConnell                 McGill
Mescher                   Peeler                    Ravenel
Richardson                Ritchie                   Ryberg
Smith, J. Verne           Thomas                    Verdin
Waldrep                   Wilson

Total--26

The decision of the PRESIDENT was upheld.

PRESIDENT PRESIDES

At 4:06 P.M., the PRESIDENT assumed the Chair.

The question then was the motion by Senator LEATHERMAN to suspend Rules 24A and 24B regarding the Report of the Senate Finance Committee on the General Appropriation Bill.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 72.87 of Part 1B was out of order inasmuch as it was not germane to the Bill.

Senator MARTIN spoke on the Point of Order.

72.87. (GP: Personal Property Tax Relief Fund) Notwithstanding the provisions of Section 12-37-2735 of the 1976 Code, the amount credited to the Personal Tax Relief Fund is reduced from twenty million dollars to zero. If the Personal Property Tax Exemption Sales Tax is imposed in a county and a sales tax rate of two percent of gross proceeds of sales is insufficient to offset the property tax not collected, sufficient amounts must be credited to the Trust Fund for Tax Relief established pursuant to Section 11-11-150 of the 1976 Code to provide the reimbursement to offset such a shortfall in the manner provided in Section 4-10-540(A) of the 1976 Code.

Parliamentary Inquiry

Senator LAND made a Parliamentary Inquiry as to what Bill was under consideration.

The PRESIDENT stated that H. 3687, the General Appropriation Bill, was under consideration.

Point of Order

Senator LAND raised a Point of Order that the motion submitted to the Desk under Rule 11 and distributed to the members was out of order inasmuch as it referenced H. 3697 rather than H. 3687.

Senator McCONNELL spoke on the Point of Order.

The PRESIDENT sustained the Point of Order raised by Senator McCONNELL and Proviso 72.87 of Part 1B was ruled out of order.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 69A.2 of Part 1B was out of order inasmuch as it was not germane to the Bill.

69A.2. (AS-CG: Residential Exemption Reimbursement) Notwithstanding the provisions of Section 12-37-251(B)(1) of the 1976 Code, the amount credited to Trust Fund for Tax Relief for the reimbursement required pursuant to Section 12-37-251(B)(2) of the 1976 Code, is the amount so credited in the prior fiscal year.

The PRESIDENT sustained the Point of Order and Proviso 69A.2 of Part 1B was ruled out of order.

Point of Order

Senator PASSAILAIGUE raised a Point of Order that the Report of the Senate Finance Committee to H. 3687, the General Appropriation Bill, was out of order inasmuch as it was violative of Section 12-37-2735, S.C. Code of Laws, 1976, as amended.

Senators MARTIN, PASSALAIGUE, J. VERNE SMITH, RICHARDSON and THOMAS spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Point of Order

Senator PASSAILAIGUE raised a Point of Order that Proviso 1.4 of Section 1 was out of order inasmuch as it was violative of Section 12-43-220, S.C. Code of Laws, 1976, as amended.

Parliamentary Inquiry

Senator LEVENTIS made a Parliamentary Inquiry as to whether or not it was timely to raise the Point of Order prior to taking a final vote on the entire Bill.

Parliamentary Inquiry

Senator MOORE made a Parliamentary Inquiry as to whether or not the motion by Senator LEATHERMAN regarding the suspension of Rules 24A and 24B pertaining to the Report of the Senate Finance Committee on H. 3687, the General Appropriation Bill, was still pending.

Senator LEATHERMAN spoke on the Inquiry.

The PRESIDENT sustained the Point of Order raised by Senator LAND that the motion did not accurately reflect the Bill number.

RECESS

At 4:27 P.M., on motion of Senator J. VERNE SMITH, the Senate receded from business not to exceed ten minutes.

At 4:45 P.M., the Senate resumed.

Point of Order Withdrawn

On motion of Senator PASSAILAIGUE, with unanimous consent, the Point of Order raised regarding Proviso 1.4 being out of order inasmuch as it was violative of Section 12-43-220, S.C. Code of Laws, 1976, as amended, was withdrawn.

Motion Adopted

On motion of Senator PEELER, with unanimous consent, the scrivener's error contained in the motion by Senator LEATHERMAN which was submitted to the Desk under Rule 11 was to be resubmitted to the body and corrected as follows:

"Mr. PRESIDENT, under the provisions of Rule 43, I move that we suspend Rules 24A and 24B in respect to the Senate Finance Committee Report on H. 3687."

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 55.4 of Part 1B was out of order inasmuch as it was violative of Rule 24A in that it amends or suspends permanent law.

55.4.   (ALJ: Restricting Inmate Administrative Appeals) An administrative law judge of the Division shall preside over all hearings of appeals from only those final decisions of the Department of Corrections involving major disciplinary proceedings involving the loss of good time credits exceeding one-hundred and twenty (120) days; the calculation of sentence related credits, excluding the forfeiture of credits upon the recommendation of circuit court pursuant to Sections 24-27-200 and 210; and the calculation of a sentence. Review by an administrative law judge of final decisions in the above matters shall be done in the same manner prescribed in Section 1-23-380(A) for circuit court review of final agency decisions, with the presiding administrative law judge exercising the same authority as the circuit court; provided, however, that a party aggrieved by a final decision of an administrative law judge in such a case is entitled to judicial review of that decision by the circuit court under the provisions of Section 1-23-380(A) and pursuant to Section 1-23-610(C). Inmates shall have no right to appeal decisions of the Department of Corrections to the Administrative Law Judge Division involving any other matter. The Administrative Law Judge Division shall not hear appeals from any inmate of the Department of Corrections, except as provided above, nor hear appeals from any inmate or other person supervised by the Department of Juvenile Justice or the Department of Probation, Parole and Pardon Services, nor hear appeals concerning the final decisions of the Board of Paroles and Pardons concerning the denial or revocation of parole or any form of community supervision. Notwithstanding the general effective date of Part I.B. of this Act, this paragraph takes effect only upon review and approval of the Judicial Council.

The PRESIDENT sustained the Point of Order.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 65.2 of Part 1B was out of order inasmuch as it was violative of Rule 24A in that it amends or suspends permanent law.

65.2 (SEC: Administrative Costs) The commission is authorized to charge administrative costs to individuals found in violation of the Ethics, Government Accountability and Campaign Reform Act of 1991, as amended. Such funds may be retained and expended within the agency's budget to help offset the costs of investigating and prosecuting violations and the administrative costs associated with these violations. These funds may be carried forward and expended for the same purposes.

The PRESIDENT sustained the Point of Order.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 36.23 of Part 1B was out of order inasmuch as it was violative of Rule 24A in that it amends or suspends permanent law.

36.23. (DPS: Driver's License Suspension) (A) Upon satisfactory resolution of an out-of-state motor vehicle violation, a person's driver's license suspension must be vacated if:

(1) his driver's license was suspended for an out-of-state motor vehicle violation, or an administrative error associated with an out-of state motor vehicle violation, and the nonpayment of a fine associated with the violation; and

(2) he is charged with driving under suspension pursuant to the non-resolution of the out-of-state motor vehicle violation.

(B)   The burden of proof is on the driver to obtain the relief contained in subsection (A).

(C) A South Carolina fine associated with the out-of-state violation must be paid within ninety days of notice, or result in a first suspension of the person's South Carolina driver's license. However, if the out-of-state violation is proven to be an administrative error, the driver is not subject to any South Carolina fines and must be refunded any fine he has paid. Funds appropriated to the Department of Public Safety cannot be used to provide the refunds.

The PRESIDENT sustained the Point of Order.

Point of Order

Senator McCONNELL raised a Point of Order that Proviso 56DD.36 of Part 1B was out of order inasmuch as it was violative of Rule 24A in that it amends or suspends permanent law.

56DD.36.   (GOV: SLED - Per Se) Notwithstanding any other provision of law, the State Law Enforcement Division shall not be required to implement the compulsory testimony provisions of Section 56-5-2934 of the 1976 Code of the Illegal Per Se statutes until such time as the General Assembly is able to adequately fund the program or by June 30, 2003, whichever comes first, and until personnel are properly trained for the courtroom testimony.

The PRESIDENT sustained the Point of Order.

Senator PASSAILAIGUE spoke on the Bill.

Parliamentary Inquiry

Senator RICHARDSON made a Parliamentary Inquiry as to whether the Senator was speaking on the Bill.

The Senator indicated that he was speaking on the Bill.

Senator PASSAILAIGUE spoke on the Bill.

ACTING PRESIDENT PRESIDES

At 6:55 P.M., Senator HAWKINS assumed the Chair.

Senator PASSAILAIGUE spoke on the Bill.

On motion of Senator LEATHERMAN, with unanimous consent, debate was interrupted by adjournment, with Senator PASSAILAIGUE retaining the floor.

MOTION ADOPTED

On motion of Senators LEVENTIS and LAND, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. Lewis Heyward Fort of Sumter, S.C.

ADJOURNMENT

At 7:26 P.M., on motion of Senator LEATHERMAN, the Senate adjourned to meet tomorrow at 10:30 A.M.

* * *

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