South Carolina General Assembly
117th Session, 2007-2008
Journal of the Senate

Tuesday, May 20, 2008
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, 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:

In II Samuel we read that David, officiating as a priest:

"... danced before the Lord with all his might... "
(II Samuel 6:14a)

Please join me as we bow in prayer:

Loving God, as this Senate begins another week with only three weeks left in this 117th Session, presumably, there is an understandable tendency to want to follow David's lead and to dance. May indeed those celebration dances soon come for these Senators and their staff members, for they have together labored long and tirelessly for the people of this State. Meanwhile, however, steel them for the work that remains. Keep them focused and diligent and filled with a desire to honor You in all that they do. In Your loving name do we pray, O Lord.
Amen.

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

MESSAGE FROM THE GOVERNOR

The following appointments were transmitted by the Honorable Mark C. Sanford:

Statewide Appointments

Initial Appointment, South Carolina Advisory Council on Aging, with the term to commence June 30, 2007, and to expire June 30, 2011
At-Large:
Timothy E. Davis, 90 Hunters Pond Drive, Columbia, SC 29229 VICE Sarah E. Deitsch, Ph.D.

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Advisory Council on Aging, with the term to commence June 30, 2005, and to expire June 30, 2009
Area 3:
Patricia B. Jones, 1806 Timberlake Drive, Rock Hill, SC 29732 VICE James L. Jewell, M.D., C.M.D.

Referred to the Committee on Medical Affairs.

Initial Appointment, South Carolina Advisory Council on Aging, with the term to commence June 30, 2005, and to expire June 30, 2009
Area 1:
E. Lamar Bailes, 164 Linley Lane, P.O. Box 915, Oconee, SC 29691 VICE Eileen Hayward

Referred to the Committee on Medical Affairs.

Reappointment, South Carolina Crime Victims' Advisory Board, with the term to commence August 1, 2008, and to expire August 1, 2013
Crime Victim:
Barbara Keefe DeVane, 2218 Chadwick Drive, Florence, SC 29501

Referred to the Committee on Judiciary.

Reappointment, South Carolina Crime Victims' Advisory Board, with the term to commence September 1, 2006, and to expire September 1, 2011
Domestic Violence:
Dean G. Kilpatrick, Ph.D., 1026 Osceola Ave., Sullivans Island, SC 29482

Referred to the Committee on Judiciary.

Reappointment, South Carolina State Board of Cosmetology, with the term to commence September 1, 2006, and to expire September 1, 2010
Public:
Delores J. Gilmer, 1522 Theresa Dr., Charleston, SC 29412

Referred to the Committee on Labor, Commerce and Industry.

Reappointment, West Drought Response Committee, with the term to commence March 1, 2008, and to expire March 1, 2012
Domestic User:
Dennis Vernon Chastain, 5699 Highway 11, Pickens, SC 29671

Referred to the Committee on Agriculture and Natural Resources.

REGULATIONS WITHDRAWN AND RESUBMITTED

Document No. 3165
Agency: Department of Transportation
SUBJECT: Transportation Project Prioritization
Received by Lieutenant Governor January 14, 2008
Referred to Transportation Committee
Legislative Review Expiration May 13, 2008
Revised: June 4, 2008
120 Day Period Tolled
Withdrawn and Resubmitted May 15, 2008

Document No. 3167
Agency: Department of Transportation
SUBJECT: SCDOT Commission Approval of Actions
Received by Lieutenant Governor January 14, 2008
Referred to Transportation Committee
Legislative Review Expiration May 13, 2008
Revised: June 4, 2008
120 Day Period Tolled
Withdrawn and Resubmitted May 15, 2008

Document No. 3195
Agency: Department of Transportation
SUBJECT: Prequalification of Bidders
Received by Lieutenant Governor February 5, 2008
Referred to Transportation Committee
Legislative Review Expiration June 4, 2008
Revised: June 4, 2008
120 Day Period Tolled
Withdrawn and Resubmitted May 15, 2008

Expression of Personal Interest

Senator FORD rose for an Expression of Personal Interest.

RECALLED AND READ THE SECOND TIME

S. 1376 (Word version) -- Senators Hayes, Peeler, Gregory and Short: A BILL TO AMEND SECTION 7-7-530, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN YORK COUNTY, SO AS TO REVISE AND ADD CERTAIN VOTING PRECINCTS OF YORK COUNTY, AND TO REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

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

There was no objection and the Bill was recalled from the Committee on Judiciary.

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

There was no objection.

On motion of Senator HAYES, with unanimous consent, the Bill was read the second time, passed and ordered to a third reading.

S. 1376--Ordered to a Third Reading

On motion of Senator HAYES, with unanimous consent, S. 1376 was ordered to receive a third reading on Wednesday, May 21, 2008.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1387 (Word version) -- Senators Massey, Cromer and Setzler: A SENATE RESOLUTION TO CONGRATULATE DR. H.K. "PETE" STONE UPON THE OCCASION OF HIS RETIREMENT AS SUPERINTENDENT OF SALUDA COUNTY SCHOOLS, TO COMMEND HIM FOR HIS SIX YEARS OF OUTSTANDING AND DEDICATED SERVICE, AND TO WISH HIM MUCH SUCCESS AND HAPPINESS IN ALL HIS FUTURE ENDEAVORS.
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S. 1388 (Word version) -- Senator Courson: A SENATE RESOLUTION TO CONGRATULATE DR. ANDREW A. SORENSEN, PRESIDENT OF THE UNIVERSITY OF SOUTH CAROLINA, UPON THE OCCASION OF HIS RETIREMENT, TO COMMEND HIM FOR HIS SIX YEARS OF DEDICATED SERVICE, AND TO WISH HIM MUCH SUCCESS AND FULFILLMENT IN ALL HIS FUTURE ENDEAVORS.
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S. 1389 (Word version) -- Senator Land: A SENATE RESOLUTION CONGRATULATING THE CALHOUN ACADEMY CAVALIERS FOR WINNING THE 2008 SCISA CLASS AA STATE CHAMPIONSHIP TITLE, HONORING THE PLAYERS AND HEAD COACH ADAM JARECKI, COMMENDING THEM ON A SUCCESSFUL SEASON, AND WISHING THEM MUCH LUCK IN THE FUTURE.
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S. 1390 (Word version) -- Senator Cleary: A SENATE RESOLUTION TO RECOGNIZE AND HONOR THE WACCAMAW HIGH SCHOOL BOYS VARSITY TENNIS TEAM OF GEORGETOWN COUNTY, FOR A SUCCESSFUL SEASON AND TO CONGRATULATE THE PLAYERS AND COACHES FOR CLAIMING THE 2008 CLASS AA STATE CHAMPIONSHIP TITLE.
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S. 1391 (Word version) -- Senator Leatherman: A SENATE RESOLUTION CONGRATULATING THE WEST FLORENCE BOYS TENNIS TEAM FOR WINNING THE 2008 STATE AAAA TENNIS CHAMPIONSHIP TITLE AND WISHING THEM MUCH LUCK IN THE FUTURE.
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S. 1392 (Word version) -- Education Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO ADVANCED PLACEMENT, DESIGNATED AS REGULATION DOCUMENT NUMBER 3191, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1393 (Word version) -- Senator Leatherman: A SENATE RESOLUTION CONGRATULATING THE JOHNSONVILLE HIGH SCHOOL GIRL'S TRACK TEAM FOR WINNING THE 2008 STATE CHAMPIONSHIP AND WISHING THEM CONTINUED SUCCESS IN THE FUTURE.
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S. 1394 (Word version) -- Senator Sheheen: A BILL TO AMEND CHAPTER 1, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-1-435, THE "RELIGIOUS VIEWPOINTS ANTIDISCRIMINATION ACT".
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Read the first time and referred to the Committee on Education.

S. 1395 (Word version) -- Education Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO REQUIREMENTS FOR ADDITIONAL AREAS OF CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 3192, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.

S. 1396 (Word version) -- Senator Jackson: A SENATE RESOLUTION TO RECOGNIZE EASTOVER'S SAINT PHILLIP A.M.E. CHURCH ON THE OCCASION OF ITS HISTORIC ONE HUNDRED SEVENTY-THIRD ANNIVERSARY AND TO COMMEND THE CHURCH FOR ALMOST TWO CENTURIES OF SERVICE TO THE COMMUNITY.
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REPORTS OF STANDING COMMITTEES

Senator COURSON from the Committee on Education submitted a favorable report on:

H. 4934 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO SCHOOL-TO-WORK TRANSITION ACT, DESIGNATED AS REGULATION DOCUMENT NUMBER 3137, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Senator COURSON from the Committee on Education submitted a favorable report on:

H. 4935 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO FREE TEXTBOOKS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3138, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Invitations Accepted

Wednesday - May 28, 2008 - 6:00-8:00 pm
Members of the Senate and staff, Homecoming Reception honoring Representative James Smith, Carolina Walk at Williams Brice Stadium, Friends of James Smith
(Accepted-May 20, 2008)

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

RECOMMITTED

S. 84 (Word version) -- Senators Bryant, Ryberg, Vaughn, Grooms, Verdin and Fair: A BILL TO AMEND SECTION 44-41-330 OF THE 1976 CODE, RELATING TO PREREQUISITES FOR THE PERFORMANCE OF AN ABORTION, INFORMATION TO BE PROVIDED, CERTIFICATION, WAITING PERIOD, SPECIAL PROVISIONS FOR MINORS OR MENTALLY INCOMPETENT PERSONS, RETENTION OF RECORDS, AND UNAVAILABILITY OF RECORDS, TO PROVIDE THAT THE PHYSICIAN WHO IS TO PERFORM THE ABORTION MUST VERIFY THE PROBABLE GESTATIONAL AGE OF THE EMBRYO OR FETUS BY USING AN OBSTETRIC ULTRASOUND, TO PROVIDE THAT THE IMAGES USED TO VERIFY THE PROBABLE GESTATIONAL AGE MUST BE REVIEWED WITH THE WOMAN SEEKING THE ABORTION, AND TO PROVIDE THAT THE WOMAN SEEKING THE ABORTION MUST CERTIFY IN WRITING BEFORE THE ABORTION IS PERFORMED THAT SHE HAS REVIEWED THE ULTRASOUND IMAGES.

Senator PEELER 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.

On motion of Senator PEELER, with unanimous consent, the Bill was recommitted to the Committee on Medical Affairs.

S. 1383 (Word version) -- Senator Hutto: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE BRIDGE THAT CROSSES THE NORTH FORK EDISTO RIVER IN ORANGEBURG COUNTY ALONG UNITED STATES HIGHWAY 321 "CARSON BRIDGE" AND ERECT APPROPRIATE MARKERS OR SIGNS AT THIS BRIDGE THAT CONTAIN THE WORDS "CARSON BRIDGE".

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

Message from the House

Columbia, S.C., May 15, 2008

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.206, S. 990 by a vote of 81 to 36:

(R206, S990 (Word version)) -- Senators Martin, Ford, Ritchie, Knotts, Cleary and Malloy: AN ACT TO AMEND SECTION 2-19-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC HEARINGS BEFORE THE JUDICIAL MERIT SELECTION COMMISSION, SO AS TO REQUIRE THAT WRITTEN STATEMENTS OF PROPOSED TESTIMONY OF ANYONE WISHING TO TESTIFY BEFORE THE JUDICIAL MERIT SELECTION COMMISSION HEARING BE FURNISHED BY THE PERSON WISHING TO TESTIFY NO LESS THAN TWO WEEKS INSTEAD OF FORTY-EIGHT HOURS PRIOR TO THE DATE AND TIME SET FOR THE HEARING UNLESS SUFFICIENT CAUSE IS SHOWN BY THE SUBMITTING INDIVIDUAL.
Very respectfully,
Speaker of the House

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.

On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.

HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 1058 (Word version) -- Senators Hayes, Courson, Lourie, Short, Sheheen and Ceips: A BILL TO AMEND ARTICLE 17, CHAPTER 7, TITLE 20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA CHILDREN'S TRUST FUND, SO AS TO ELIMINATE DUPLICATIVE DUTIES OF THE ORGANIZATION AND REVISE ITS GOVERNANCE BY RECONSTITUTING THE BOARD OF TRUSTEES AS A BOARD OF DIRECTORS CONSISTING OF SEVENTEEN MEMBERS, INCLUDING ELEVEN AT-LARGE MEMBERS APPOINTED BY THE GOVERNOR FROM NOMINEES MADE BY THE CURRENT BOARD MEMBERS PLUS ONE MEMBER FROM EACH OF THE STATE'S CONGRESSIONAL DISTRICTS, AND TO DELETE VARIOUS QUALIFICATIONS FOR SERVICE ON THE BOARD OF DIRECTORS AND TERM LIMITS ON SERVICE.
The House returned the Bill with amendments.

The Senate proceeded to a consideration of the Bill, the question being the concurrence in the House amendments.

Senator McCONNELL proposed the following amendment (1058R002.GFM), which was adopted:

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

/     SECTION   ___.   Section 6-29-1330(B) of the 1976 Code is amended to read:

"(B)   The advisory committee consists of five members appointed by the Governor with the advice and consent of the Senate. The advisory committee consists of:

(1)   a planner recommended by the South Carolina Chapter of the American Planning Association;

(2)   a municipal official or employee recommended by the Municipal Association of South Carolina;

(3)   a county official or employee recommended by the South Carolina Association of Counties;

(4)   a representative recommended by the University of South Carolina's Institute for Public Service and Policy Research; and

(5)   a representative recommended by Clemson University's Department of Planning and Landscape Architecture. Recommendations must be submitted to the Governor not later than the thirty-first day of December of the year preceding the year in which appointments expire. If the Governor rejects any person recommended for appointment or the Governor's appointment is not confirmed by the Senate, the group or association who recommended the person must submit additional names to the Governor for consideration."

SECTION   ___.   Section 13-7-840 of the 1976 Code is amended to read:

"Section 13-7-840.   The council shall consist of nine members. One at-large member shall be appointed by the Speaker of the House of Representatives and one at-large member shall be appointed by the President of the Senate. Seven members shall be appointed by the Governor with the advice and consent of the Senate as follows: Two shall be actively involved in the area of environmental protection; one shall have experience in the generation of power by nuclear means; one shall have experience in the field of nuclear activities other than power generation; two shall be scientists or engineers from the faculties of institutions of higher learning in the State; and one shall be from the public at large. The terms of the members of the council appointed by the Governor shall be coterminus with that of the appointing Governor, but they shall serve at the pleasure of the Governor.

Vacancies of the council shall be filled in the manner of the original appointment."

SECTION   ___.   Section 16-3-1160 of the 1976 Code is amended to read:

"Section 16-3-1160.   There is created a board to be known as the South Carolina Crime Victim's Advisory Board to consist of eleven members to be appointed by the Governor with the advice and consent of the Senate. Of the original seven members, at least two of the members shall have been admitted to practice law in this State for not less than five years next preceding their appointment, one member shall be a physician licensed to practice medicine under the laws of this State, and one member shall have at least four years' administrative experience in a court-related Victim's Assistance Fund, provided that such a qualified person is available. Of the four additional members, one must be a law enforcement officer with at least five years' administrative experience, one shall have at least five years' experience in directing sexual assault prevention or treatment services, one shall have at least five years' experience in providing services for domestic violence victims, and one shall have been a victim of crime.

The term of office of each appointed member is five years and until his successor is appointed and qualified. Of those seven members first appointed, two shall serve for a term of one year, two for a term of two years, one for a term of three years, one for a term of four years, and one for a term of five years, with the initial terms to be designated by the Governor when making the initial appointments. The initial terms of four additional members to be appointed as provided herein are for two, three, four, and five years, respectively, the initial term of each member to be designated by the Governor when making the appointment. The Governor shall select a chairman. The board may elect a secretary and other officers as deemed necessary.

Any vacancy must be filled for the remainder of the unexpired term by appointment in the same manner of the initial appointments.

The board shall meet at least twice each year' and must be subject to the call of the chairman, to consider improvements in and monitor the effectiveness of the Victim's Compensation Fund, and to review and comment on the budget and approve the regulations pertaining to the Victim's Compensation Fund of this article and the Victim/Witness Assistance Program of Article 14 of this chapter. The members of the board shall receive the same subsistence, mileage, and per diem as is provided by law for members of state boards, committees, and commissions, to be paid from the Victim's Compensation Fund as created by this article."

SECTION   ___.   Section 40-25-40(C) of the 1976 Code is amended to read:

"(C)   Members of the commission in subsection (B)(1)(a) through (d) must be appointed by the Governor with the advice and consent of the Senate. Before appointing the member in subsection (B)(1)(d), the Governor shall invite recommendations from the South Carolina Hearing Aid Society, the Commission on Aging, the Department of Consumer Affairs, the Department of Education, the Department of Vocational Rehabilitation, the Board of Commissioners of the School for the Deaf and the Blind, and other agencies or organizations which might have knowledge of qualified citizens to serve on the commission. The term of each member is four years. Before a member's term expires the Governor, with the advice and consent of the Senate, shall appoint a successor to assume his duties at the expiration of the term. A vacancy must be filled in the manner of the original appointment. The members annually shall designate one member as chairman and another as secretary. No member of the commission who has served two or more full terms may be reappointed until at least one year after the expiration of his most recent full term of office."

SECTION   ___.   Section 40-30-40(A) of the 1976 Code is amended to read:

SECTION   ___.   Section 43-21-10 of the 1976 Code is amended to read:

"Section 43-21-10.   There is created in the Office of the Governor, the Division on Aging. The division must be supported by an Advisory Council on Aging consisting of one member from each of the ten planning and service areas under the Division on Aging and five members from the State at large. The director of the division shall provide statewide notice that nominations may be submitted to the director from which the Governor shall appoint the members of the council, upon the advice and consent of the Senate. The members must be citizens of the State who have an interest in and a knowledge of the problems of an aging population. In making appointments to the council, consideration must be given to assure that the council is composed of appointees who are diverse in age, who are able and disabled, and who are active leaders in organizations and institutions that represent different concerns of older citizens and their families. The chair must be elected by the members of the advisory council from its members for a term of two years and until a successor is elected. Members of the council shall serve without compensation but shall receive mileage and subsistence authorized by law for members of boards, commissions, and committees. The advisory council shall meet at least once each quarter and special meetings may be called at the discretion of the director of the division. Rules and procedures must be adopted by the council for the governance of its operations and activities."

SECTION   ___.   Section 48-21-20(b) of the 1976 Code is amended to read:

"(b)   The council shall be composed of eleven members. One member shall be the State Geologist and one member shall be the Secretary of Commerce or his designee. Three members, appointed by the Governor with the advice and consent of the Senate, shall be representatives of mining industries; three members, appointed by the Governor with the advice and consent of the Senate, shall be representatives of nongovernmental conservation interests; two members, appointed by the Governor with the advice and consent of the Senate, shall be representatives of the Department of Health and Environmental Control who shall be knowledgeable in the principles of water and air resources management; and one member, appointed by the Governor, shall be his official representative to the Interstate Mining Compact Commission. Any public official appointed to the council shall serve ex officio. The term of office for the Secretary of Commerce or his designee and the Governor's official representative to the Interstate Mining Compact Commission shall be coterminous with that of the Governor. Of the remaining eight members appointed by the Governor, six shall be appointed for terms of six years, two shall be appointed for terms of two years and beginning July 1, 1976, the term of office for all new appointments and reappointments to these eight positions shall be for four years. The term of each member of the council shall expire on June thirtieth of the year in which his term expires. Any vacancy occurring on the council by death, resignation, or otherwise shall be filled for the unexpired term of the person creating the vacancy by the Governor."

SECTION   ___.   Section 48-45-80 of the 1976 Code is amended to read:

"Section 48-45-80.   There is hereby created an advisory committee to the Consortium Director to consist of seven members who shall serve for terms of four years and until their successors are appointed and qualified. Four members must be appointed by the Governor with the advice and consent of the Senate. The chairmen of the Senate Fish, Game and Forestry Committee, House Agriculture and Natural Resources Committee, and Department of Natural Resources Board shall each appoint one member upon the recommendation of a majority of the members of their respective committees and commission. The four members appointed by the Governor must be residents of coastal counties, no more than one from each county, and two must be associated with the commercial fishing industry."

SECTION   ___.   Section 49-23-60(A)(2) of the 1976 Code is amended to read:

"(2)   a local committee within each drought management area. The local committees shall consist of the following members to be appointed by the Governor with the advice and consent of the Senate to represent the following interests: counties, municipalities, public service districts, private water suppliers, agriculture, industry, domestic users, regional councils of government, commissions of public works, power generation facilities, special purpose districts and Soil and Water Conservation Districts; however, there may not be more than two members on a local committee from each county within the drought management area. The Governor may appoint additional members as necessary to ensure broadbased input on the committee and may make interim appointments when the General Assembly is not in session. The statewide committee shall coordinate planning and response only upon consultation with the appropriate local committee in the impacted drought management area during moderate, severe, and extreme drought declarations. The Governor shall appoint the chair of the Drought Response Committee. The department shall provide administrative support."

SECTION   ___.   Section 51-13-1720 of the 1976 Code is amended to read:

"Section 51-13-1720.   The authority shall be governed by a board of regents consisting of nine members, as follows:

(a) the resident Senator for Colleton County shall serve ex officio;

(b) the Representative in whose district the present Village of Jacksonborough is situate shall serve ex officio;

(c) four members resident in Colleton County appointed by the Governor upon recommendation of the Colleton County Legislative Delegation;

(d) one member resident in the First or Second Congressional District appointed by the Governor with the advice and consent of the Senate;

(e) one member resident in the Third or Fourth Congressional District appointed by the Governor with the advice and consent of the Senate;

(f) one member resident in the Fifth or Sixth Congressional District appointed by the Governor with the Advice and Consent of the Senate.

The terms of the members shall be for four years and until their successors are appointed and qualify except that those originally appointed to the board of regents, four shall serve two years and three shall serve for four years. The length of such terms shall be determined by lot. In the case of any vacancy, the vacancy shall be filled in the manner of the original appointment for the unexpired portion of the term only. The board of regents, upon being appointed, shall meet and elect a chairman and such other officers as it deems necessary from its membership."

SECTION   ___.   Section 51-18-40 of the 1976 Code is amended to read:

"Section 51-18-40.   There is created a War Between the States Heritage Trust Commission which must consist of nine members. Three members must be appointed from the Senate by the President Pro Tempore of the Senate; three members must be appointed from the House of Representatives by the Speaker of the House; and three members must be appointed by the Governor with the advice and consent of the Senate, one at the recommendation of War Between the States historical groups such as Sons of Confederate Veterans and Daughters of the Confederacy, one at the recommendation of African-American historical groups such as Avery Institute, and one from historical, preservation, and archeological groups such as the South Carolina Historical Society and Daughters of the American Revolution. The terms of the members shall be coterminous with the term of their appointing authority. The commission shall elect a chairman from among its membership and such other officers as it shall deem necessary."

SECTION   ___.   Section 51-18-60 of the 1976 Code is amended to read:

"Section 51-18-60.   The War Between the States Heritage Trust Advisory Board is hereby created to assist the commission in carrying out its duties and responsibilities under this chapter. The advisory board shall consist of eleven members who shall be chosen as follows and shall elect from its membership a chairman:

(1)   From the general public, six persons, one from each congressional district within the State, who shall be appointed by the Governor with the advice and consent of the Senate and serve for a term of six years. These persons shall be residents of the State who are recognized experts in the history and archeology of the State who have demonstrated an interest in historical, cultural, and natural preservation of historical sites and who have a background in South Carolina history and/or African-American history and/or Confederate history. The term 'expert' does not of necessity denote a professional but one learned and interested in the field.

(2)   From state government, the following persons or their designees:

(a)   the Chairman of the Board of the Department of Natural Resources;

(b)   the Director of the South Carolina Department of Parks, Recreation and Tourism;

(c)   the Chairman of the Board of the Department of Archives and History;

(d)   the Chairman of the Board of the State Museum Commission; and

(e)   the Curator or Director of the Confederate Relic Room.

Provided, however, of the initial appointees under this section, that of the six persons appointed under item (1) above, two shall serve for a term of two years, two for a term of four years, and two for a term of six years."

SECTION   ___.   Section 57-23-60 of the 1976 Code is amended to read:

"Section 57-23-60.   There is created a Scenic Highways Committee composed of eleven members as follows:

(1)   the Secretary of the Department of Transportation or the secretary's designee;

(2)   the Chairman of the South Carolina Department of Parks, Recreation and Tourism Commission or the chairman's designee;

(3)   two representatives of the outdoor advertising industry who are active members of an organization such as the Outdoor Advertising Association of South Carolina;

(4)   a representative of the South Carolina hotel and motel industry;

(5)   a representative of the agricultural industry who is active in an organization such as the State Farm Bureau;

(6)   a representative of the petroleum marketing industry;

(7)   a representative of the tourism industry in South Carolina;

(8)   a representative of highway beautification efforts, such as South Carolina Clean and Beautiful;

(9)   a representative involved with parks and recreation, such as the South Carolina Recreation and Parks Association;

(10)   a member of the general public.

All members of the committee shall serve for a term of two years and, with the exception of the appointments made pursuant to items (1) and (2), all appointments must be made by the Governor with the advice and consent of the Senate. Members of the committee shall serve without compensation or reimbursement."       /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

There being no further amendments, the Bill was ordered returned to the House with amendments.

CONCURRENCE

H. 4735 (Word version) -- Reps. Harrell, Cato, Funderburk, Loftis, Sandifer, Thompson, Owens, Harvin, Bedingfield, Leach, Bales, Whipper and R. Brown: A JOINT RESOLUTION TO CREATE THE SOUTH CAROLINA EDUCATIONAL BROADBAND SERVICE COMMISSION FOR THE PURPOSE OF OBTAINING AND EVALUATING PROPOSALS FROM COMMERCIAL ENTITIES FOR THE LEASING OF SPECTRUM CAPACITY LICENSED TO THE SOUTH CAROLINA EDUCATIONAL TELEVISION NETWORK, TO PROVIDE A PROCESS FOR APPROVAL OF THE LEASES, TO PROVIDE THAT ANY REVENUE RECEIVED FROM THE LEASE OF SPECTRUM CAPACITY SHALL BE DEPOSITED INTO THE STATE GENERAL FUND, TO EXEMPT THE LEASES FROM THE CONSOLIDATED PROCUREMENT CODE, AND TO PROVIDE FOR THE MEMBERSHIP, POWERS, AND DUTIES OF THE COMMISSION.

The House returned the Joint Resolution with amendments.

On motion of Senator RANKIN, 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.

NONCONCURRENCE

H. 3798 (Word version) -- Rep. G.R. Smith: A BILL TO AMEND SECTION 20-1-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A PERSON WHO MAY PERFORM MARRIAGE CEREMONIES, SO AS TO ALSO INCLUDE THE CHIEF OF A NATIVE AMERICAN INDIAN ENTITY RECOGNIZED BY THE SOUTH CAROLINA COMMISSION FOR MINORITY AFFAIRS.

The House returned the Bill with amendments.

On motion of Senator RITCHIE, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

RETURNED TO THE STATUS OF SPECIAL ORDER

S. 718 (Word version) -- Senators McConnell, Grooms, Setzler and Campsen: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE REQUIREMENT FOR THE STATE AND ITS POLITICAL SUBDIVISIONS TO HAVE BUDGET PROCESSES DESIGNED TO KEEP REVENUES AND EXPENDITURES IN BALANCE, THE LIMITATION ON STATE APPROPRIATIONS, AND THE LIMITATIONS ON STATE EMPLOYEES, SO AS TO DELETE THE EXISTING STATE SPENDING LIMITATION AND REQUIRE THE GENERAL ASSEMBLY TO REPLACE IT BY A LAW PROVIDING A LIMIT ON STATE SPENDING FOR A FISCAL YEAR THAT EQUALS THE TOTAL OF STATE APPROPRIATIONS IN THE PRIOR YEAR INCREASED BY THE TOTAL PERCENTAGE OF INCREASES IN STATE PERSONAL INCOME AND STATE POPULATION IN THE MOST RECENT YEAR FOR WHICH THIS INFORMATION IS AVAILABLE AND PROVIDE THAT THE GENERAL ASSEMBLY IN ENACTING THIS LIMIT SHALL DEFINE THE APPROPRIATIONS TO WHICH THE LIMIT APPLIES, AND THE METHOD OF AND SOURCES FOR CALCULATING THE LIMIT.

The Senate proceeded to a consideration of the Joint Resolution, the question being the adoption of the amendment proposed by the Committee on Judiciary.

Senator MARTIN spoke on the Resolution.

Amendment No. P-1

Senator LEATHERMAN proposed the following Amendment No. P-1 (718R001.HKL), which was adopted:

Amend the committee amendment, as and if amended, by striking the last sentence in item (1) of SECTION 1, and inserting:

/     Except for the use of balances greater than fifteen percent of the prior year's actual general fund revenue collection, any withdrawal from the Budget Stabilization Fund other than for revenue stabilization or declared emergencies shall be by affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less that three-fifths of the total membership in each branch. When the balance in the Budget Stabilization Fund is greater than fifteen percent of the prior year's actual general fund revenue collection, fifty percent of the overage must be used for debt retirement and fifty percent must be used for capital improvement projects.   /

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

Senator LEATHERMAN moved that the amendment be adopted.

Recorded Vote

Senators RITCHIE, MATTHEWS, SHEHEEN and McCONNELL desired to be recorded as voting against the adoption of the amendment.

Amendment No. P-2

Senator BRYANT proposed the following Amendment No. P-2 (718R002.KLB), which was laid on the table:

Amend the committee amendment, as and if amended, by striking the last sentence in item (1) of SECTION 1, and inserting:

/   Except for the use of balances greater than fifteen percent of the prior year's actual general fund revenue collection, any withdrawal from the Budget Stabilization Fund other than for revenue stabilization or declared emergencies shall be by affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch. When the balance in the Budget Stabilization Fund is greater than fifteen percent of the prior year's actual general fund revenue collection, the overage must be used for a tax rebate.   /

Renumber sections to conform.

Amend title to conform.

Senator BRYANT explained the amendment.

Senator SHORT moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. P-4

Senator BRYANT proposed the following Amendment P-4 (718R004.KLB), which was adopted:

Amend the committee amendment, as and if amended, by striking the last sentence in item (1) of SECTION 1, and inserting:

/   Except for the use of balances greater than fifteen percent of the prior year's actual general fund revenue collection, any withdrawal from the Budget Stabilization Fund other than for revenue stabilization or declared emergencies shall be by affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch. When the balance in the Budget Stabilization Fund is greater than fifteen percent of the prior year's actual general fund revenue collection, the overage may only be used for capital improvement projects, debt retirement, or a tax rebate.       /

Renumber sections to conform.

Amend title to conform.

Senator BRYANT explained the amendment.

Amendment No. P-5

Senator CAMPSEN proposed the following amendment (718R005.GEC), which was not adopted:

Amend the committee amendment, as and if amended, page [718-2] by striking lines 24-31 and inserting:

/   Budget Stabilization Fund in accordance with the limit. Except for the use of balances greater than fifteen percent of the prior year's actual general fund revenue collection, any withdrawal from the Budget Stabilization Fund other than for revenue stabilization or declared emergencies shall be by affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch. When the balance in the Budget Stabilization Fund is greater than fifteen percent of the prior year's actual general fund revenue collection, the overage may only be used for capital improvement projects, debt retirement, a tax rebate, or to address unfunded liabilities.       /

Renumber sections to conform.

Amend title to conform.

Senator CAMPSEN explained the amendment.

ACTING PRESIDENT PRESIDES

At 12:55 P.M., Senator MARTIN assumed the Chair.

The question then was the adoption of the amendment proposed by the Committee on Judiciary, as amended.

The Committee on Judiciary proposed the following amendment (JUD0718.012), which was adopted:

Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting the following:

SECTION   1. It is proposed that Section 7(c), Article X of the Constitution of this State be amended to read:

"(c)   The General Assembly shall prescribe by law a spending limitation on appropriations for the operation of state government which shall provide that annual increases in such appropriations may not exceed the average growth rate of the economy of the State as measured by a process provided for by the law which prescribes the limitations on appropriations; provided, however, the limitation may be suspended for any one fiscal year by a special vote as provided in this subsection.

During the regular session of the General Assembly in 1990 and during every fifth annual regular session thereafter, the General Assembly shall conduct and complete a review of the law implementing this subsection. During such session, only a vote of two-thirds of the members of each branch present and voting shall be required to change the existing limitation on appropriation. Unless that is done, the existing limitations shall remain unchanged.

(1)   The General Assembly by law shall prescribe a limitation on general fund appropriations providing that general fund revenue available for appropriations for a fiscal year must not exceed the total of the prior year's general fund revenue available for appropriations increased by the average of the previous ten years' annual revenue growth rates. The revenue exceeding this limit shall be distributed to a Budget Stabilization Fund. The law implementing the limit must specify the revenues and sources of revenue to which this limit applies, specify the method and agency responsible for calculating the limit, and the sources which must be used in obtaining the information required for the calculation, provide for enacted revenue adjustments that affect the limit, and provide for emergencies and other extraordinary economic and fiscal circumstances that would require an adjustment to the limit and may be implemented as provided in general law. The law shall establish and provide for the funding of the Budget Stabilization Fund from the appropriate revenues that exceed the limitation. The law shall provide that the funds accumulated in the Budget Stabilization Fund shall not exceed a maximum of fifteen percent of the prior year's actual general fund revenue collections. The law shall also provide for the withdrawal of funds from the Budget Stabilization Fund in accordance with the limit. Any withdrawal from the Budget Stabilization Fund other than for revenue stabilization, declared emergencies, or for use of balances greater than fifteen percent of the prior year's actual general fund revenue collections shall be by affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch.

(2)   Upon implementation of the provisions of this subsection by law, such law may be adopted by a majority vote of each branch of the General Assembly, and subsequently shall not be amended or repealed except by the special vote as provided in this subsection.

(3)   The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting, but not less than three-fifths of the total membership in each branch."

SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:

"Must Section 7, Article X of the Constitution of this State be amended, relating to the requirement for the State and its political subdivisions to have budget processes designed to keep revenues and expenditures in balance and the limitation on state appropriations, so as to amend the existing state spending limitation and require the General Assembly to replace it by general law providing a limit on general fund appropriations so that general fund revenue available for appropriations must not exceed a total of the prior year's general fund revenue increased by the average of the previous ten years' annual growth rates, providing for the creation of a Budget Stabilization Fund from the revenue exceeding the limit, providing for the specification of revenues and sources of revenue to which the limit shall apply, providing for enacted revenue adjustments that affect the calculation, providing for emergencies and other extraordinary economic and fiscal circumstances that would require an adjustment to the limit, providing for procedures to implement, providing for a limit of revenues in the Budget Stabilization Fund that shall not exceed fifteen percent of that year's actual general fund revenue collections, and providing for the withdrawal of the funds from the Budget Stabilization Fund; and to provide for the vote required for adoption of the implementing legislation and the special vote required for subsequent amendment or repeal?

Yes   []

No   []

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

Renumber sections to conform.

Amend title to conform.

The committee amendment was adopted, as amended.

The question then was the second reading of the Resolution.

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

Ayes 30; Nays 14

AYES

Alexander                 Bryant                    Campbell
Campsen                   Ceips                     Cleary
Courson                   Cromer                    Elliott
Fair                      Gregory                   Grooms
Hayes                     Knotts                    Leatherman
Martin                    Massey                    McConnell
O'Dell                    Peeler                    Rankin
Reese                     Ritchie                   Ryberg
Scott                     Setzler                   Sheheen
Thomas                    Vaughn                    Verdin

Total--30

NAYS

Anderson                  Drummond                  Ford
Hutto                     Jackson                   Land
Leventis *                Lourie                    Malloy
Matthews                  Patterson                 Pinckney
Short                     Williams

Total--14

*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.

The Bill was read the second time, passed and ordered to a third reading.

The Bill was returned to the Calendar in the status of Special Order.

THE SENATE PROCEEDED TO THE SPECIAL ORDERS.

CARRIED OVER IN THE STATUS OF SPECIAL ORDER

S. 1220 (Word version) -- Senators McConnell, Gregory, Ford, Martin, Ritchie, Sheheen, Lourie, Campbell, Setzler and Campsen: A BILL TO AMEND SECTION 11-11-410, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO IMPLEMENTATION OF THE LIMIT ON STATE SPENDING IMPOSED PURSUANT TO SECTION 7(C), ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, SO AS TO REVISE THIS LIMIT BY IMPOSING AN ANNUAL LIMIT ON THE APPROPRIATION OF STATE GENERAL FUND REVENUES BY ADJUSTING SUCH REVENUES BY A ROLLING TEN-YEAR AVERAGE IN ANNUAL CHANGES IN GENERAL FUND REVENUES AND THE CREATION OF A SEPARATE BUDGET STABILIZATION FUND IN THE STATE TREASURY TO WHICH MUST BE CREDITED ALL GENERAL FUND REVENUES IN EXCESS OF THE ANNUAL LIMIT, THE REVENUES OF WHICH MUCH FIRST BE USED TO STABILIZE GENERAL FUND REVENUES AVAILABLE FOR APPROPRIATION, TO PROVIDE FOR SUSPENSION OF THIS APPROPRIATIONS LIMIT IN EMERGENCIES AND DEFINE EMERGENCIES, TO PROVIDE THAT A CASH BALANCE IN THE BUDGET STABILIZATION FUND IN EXCESS OF FIFTEEN PERCENT OF GENERAL FUND REVENUES OF THE MOST RECENT COMPLETED FISCAL YEAR MAY BE APPROPRIATED IN SEPARATE LEGISLATION FOR VARIOUS NONRECURRING PURPOSES, AND TO DEFINE SURPLUS GENERAL FUND REVENUES.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.

Amendment No. P-1

Senator LEATHERMAN proposed the following Amendment No. P-1 (1220R001.HKL), which was adopted:

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

/     SECTION   1.   Section 11-11-410 of the 1976 Code is amended to read:

"Section 11-11-410.   (A)   State appropriations in any fiscal year may not exceed appropriations authorized by the spending limitation prescribed in this section. State appropriations subject to the spending limitation are those appropriations authorized annually in the State General Appropriation Act and acts supplemental thereto which fund general, school, and highway purposes. A statement of total 'General, School, and Highway Revenues' must be included in each annual General Appropriation Act. As used in this section the appropriations so limited as defined above must be those funded by 'General, School, and Highway Revenues' that must be defined as such in the 1985-86 General Appropriation Act; it being the intent of this section that all additional nonfederal and nonuser fee revenue items must be included in that category as they may be created by act of the General Assembly.

(B)   The limitation on state appropriations prescribed in subsection (A) is an amount equal to either those state appropriations authorized by the spending limit for the previous fiscal year increased by the average percentage rate of growth in state personal income for the previous three completed calendar years or nine and one-half percent of the total personal income of the State for the calendar year ending before the fiscal year under consideration, whichever is greater. As used in this section, 'state personal income' means total personal income for a calendar year as determined by the Budget and Control Board or its successor based on the most recent data of the United States Department of Commerce or its successors. During the initial year this spending limit is in effect, the actual state appropriations for general, school, and highway purposes for the fiscal year 1985-1986 must be used as the base figure for computation of the spending limitation if the average rate of growth method is used.

(C)   The Comptroller General, or any other authorized agency, commission, or officer, may not approve or issue warrants which would allow disbursements above the amount appropriated for general fund purposes unless and until the General Assembly authorizes expenditures in excess of the limitation through procedures provided for in this article. This subsection may not apply to funds transferred from the reserve fund to the general fund.

(D)   The Division of Research and Statistical Services of the Budget and Control Board shall annually compute and certify to the General Assembly a current figure to limit appropriations as provided in subsection (B) of this section prior to the Budget and Control Board's submission of its recommended budget to the House Ways and Means Committee.

(E)   Notwithstanding the provisions of subsection (A) of this section, the General Assembly may declare a financial emergency and suspend the spending limitation for any one fiscal year for a specific amount by a special vote as provided in this subsection by enactment of legislation which relates only to that matter. The authorized state appropriations for the fiscal year following the suspension must be determined as if the suspension had not occurred and, for purposes of determining subsequent limits, must be presumed to have been the maximum limit which could have been authorized if such limitation had not been suspended.

The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting but not less than three-fifths of the total membership in each branch.

As used in this section:

(1)   'Annual limit' means the total of general fund revenues that may be appropriated in the next state fiscal year. This annual limit is calculated by adjusting general fund revenues available for appropriation in the annual general appropriations act for the current fiscal year by a percentage equal to the average annual percentage change in the total of general fund revenues over the preceding ten completed state fiscal years as calculated by the Board of Economic Advisors. For purposes of the annual limit, a legislated increase or decrease in general fund revenues as estimated by the BEA must be added to or subtracted from the then applicable annual limit.

(2)   'BEA' means the Board of Economic Advisors established pursuant to Article 9, Chapter 9 of Title 11, or any successor agency performing similar functions.

(3)   'Budget Stabilization Fund' or 'BSF' means a fund established in the State Treasury separate and distinct from the general fund of the State and all other funds to which must be credited automatically general fund revenues accruing in a fiscal year in excess of the annual limit. Earnings on the BSF must be credited to it and balances in the BSF carry forward in it to succeeding fiscal years. Earnings on the BSF shall be counted towards the calculation of the fifteen percent balance provided for in subsection (C)(3).

(4)   'Emergency' means:

(a)   the existence of an operating deficit in the general fund of the State for a completed fiscal year after the exhaustion of the Capital Reserve Fund as made in a finding by the Budget and Control Board upon sequestering the Capital Reserve Fund;

(b)   a catastrophic event outside the control of the General Assembly including, but not limited to, a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;

(c)   compliance with an order or decree entered by a court of competent jurisdiction; and

(d)   compliance with a federal statute or regulation imposing a nonfunded mandate on this State.

(5)   'General fund revenues' means the revenues of state-imposed taxes and fees, earnings on investments, and miscellaneous revenues to the State accruing in the fiscal year to which the annual limit applies, all of which by law must be credited to the general fund of the State and used for the general operation of state government. General fund revenues also include those revenues credited to the general fund of the State but which by law are required to be appropriated from the general fund of the State for a specific purpose or purposes. By way of illustration but not limitation, general fund revenues do not include revenues of taxes, user fees, other fees, or miscellaneous revenues required by law to be credited to funds in the State Treasury separate and distinct from the general fund of the State and which by law must be appropriated for some special use or uses, whether or not those uses include the general operation of state government. By way of illustration but not limitation, revenues credited to the following separate funds in the State Treasury are not general fund revenues:

(a)   the General Reserve Fund and the Capital Reserve Fund established respectively pursuant to Section 36(A) and (B), Article III of the Constitution of this State and Sections 11-11-310 and 11-11-320;

(b)   the State Highway Fund and the State Non-Federal Aid State Highway Fund established pursuant to Section 57-11-20;

(c)   the Education Improvement Act of 1984 Fund established pursuant to Section 59-21-1010(B);

(d)   the Trust Fund for Tax Relief established pursuant to Section 11-11-150(B);

(e)   the Homestead Exemption Fund established pursuant to Section 11-11-155; and

(f)   the State Institution Bonds and State Highway Bonds Debt Service Fund established pursuant to Section 11-11-340.

(6)   'OSB' means the Office of State Budget of the State Budget and Control Board, or a successor agency performing similar functions.

(B)   Except as provided in subsection (D) of this section, the General Assembly may not appropriate general fund revenues for a fiscal year in an amount that totals more than the annual limit. The annual limit applies in all stages of the budget process, including the Governor's proposed budget, and this compliance must be certified by the OSB in an addendum to the Governor's proposed budget, the Ways and Means Committee's report on the annual general appropriations bill, the bill as it passes the House of Representatives, the Senate Finance Committee's report on the bill, the bill as it passes the Senate, and the report of a conference or free conference committee on the bill. The same certification must accompany any other bill or joint resolution appropriating general fund revenues.

(C)(1)   When the BEA makes or adjusts a forecast of state revenues, that forecast or adjustment must include a forecast or adjustment of general fund revenues as defined pursuant to subsection (A)(5) of this section, not including a BSF transfer and the then applicable annual limit. If the forecast or adjustment of the general fund revenues is less than the annual limit, there is transferred for that fiscal year whatever BSF balance is available to offset as much of this projected shortfall as the balance permits, but in no case more than the amount necessary, that when added to the forecast, equals the annual limit. This transfer must be accomplished by a separate line item in the annual general appropriations bill.

(2)   If revenues in the General Reserve Fund established pursuant to Section 36(A), Article III of the Constitution of this State and Section 11-11-310 are used to offset a year-end operating deficit, and a balance then exists in the BSF, then the Comptroller General shall transfer so much of the BSF balance as is available to the General Reserve Fund to replace revenues used from the General Reserve Fund. This transfer does not replace or supplant the minimum replenishment amount otherwise required to be made to the General Reserve Fund.

(3)(a)   Cash balances in the BSF not exceeding fifteen percent of general fund revenues for the last completed fiscal year as certified by OSB may be appropriated by the General Assembly in separate legislation upon an affirmative recorded vote in the House of Representatives and the Senate by two-thirds of the members present and voting, but not less than three-fifths of the total membership of the House of Representatives and the Senate.

(b)   Cash balances in the BSF in excess of fifteen percent of general fund revenues for the last completed fiscal year as certified by the OSB shall be appropriated by the General Assembly for capital improvement projects and the retirement of debt, in an equal amount, in separate legislation solely for that purpose receiving an affirmative majority vote in the House of Representatives and the Senate.

(D)   If there is a finding of an emergency, the annual limit may be exceeded for a fiscal year and a concomitantly larger transfer made from the BSF to the general fund of the State for that fiscal year up to the amount by which the annual limit is exceeded. General fund revenue appropriations above the annual limit pursuant to a finding of an emergency are not included in the calculation of the annual limit. Transfers to the BSF for a fiscal year for which there is a finding of an emergency apply only to general fund revenues accruing in excess of the annual limit plus the amount by which the annual limit is exceeded. An emergency exists if the General Assembly makes a finding enacted as part of the annual general appropriations act or other act or joint resolution appropriating general fund revenues which:

(1)   specifies the emergency; and

(2)   which is adopted by an affirmative recorded vote in the House of Representatives and the Senate.

(E)   In any a year when surplus funds general fund revenues are collected, such revenue this surplus may be appropriated by the General Assembly to match funds for public education, public welfare, public health, road and highway construction, rehabilitation, replacement, or maintenance financed in part with federal participation funding or federal grants or tolls, or to accelerate the retirement of bonded indebtedness pursuant to subsection (C)(3)(b) or transferred to the general fund reserve, or tax relief or for avoiding the issuance of bonds for projects that are authorized but not issued or any combination of these purposes without regard to the spending limitation imposed by this section. For the purposes of this section, surplus funds general fund revenues mean that portion of such revenues, as defined in subsection (A)(5) of this section, over and above revenues authorized for appropriation in subsection (B) that are available for appropriation and have not been appropriated and that are not required to be credited to the BSF."       /

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The question then was the adoption of the amendment proposed by the Committee on Judiciary.

The Committee on Judiciary proposed the following amendment (JUD1220.002), which was adopted:

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

/   SECTION   1.   Section 11-11-410 of the 1976 Code is amended to read:

"Section 11-11-410.   (A)   State appropriations in any fiscal year may not exceed appropriations authorized by the spending limitation prescribed in this section. State appropriations subject to the spending limitation are those appropriations authorized annually in the State General Appropriation Act and acts supplemental thereto which fund general, school, and highway purposes. A statement of total 'General, School, and Highway Revenues' must be included in each annual General Appropriation Act. As used in this section the appropriations so limited as defined above must be those funded by 'General, School, and Highway Revenues' that must be defined as such in the 1985-86 General Appropriation Act; it being the intent of this section that all additional nonfederal and nonuser fee revenue items must be included in that category as they may be created by act of the General Assembly.

(B)   The limitation on state appropriations prescribed in subsection (A) is an amount equal to either those state appropriations authorized by the spending limit for the previous fiscal year increased by the average percentage rate of growth in state personal income for the previous three completed calendar years or nine and one-half percent of the total personal income of the State for the calendar year ending before the fiscal year under consideration, whichever is greater. As used in this section, 'state personal income' means total personal income for a calendar year as determined by the Budget and Control Board or its successor based on the most recent data of the United States Department of Commerce or its successors. During the initial year this spending limit is in effect, the actual state appropriations for general, school, and highway purposes for the fiscal year 1985-1986 must be used as the base figure for computation of the spending limitation if the average rate of growth method is used.

(C)   The Comptroller General, or any other authorized agency, commission, or officer, may not approve or issue warrants which would allow disbursements above the amount appropriated for general fund purposes unless and until the General Assembly authorizes expenditures in excess of the limitation through procedures provided for in this article. This subsection may not apply to funds transferred from the reserve fund to the general fund.

(D)   The Division of Research and Statistical Services of the Budget and Control Board shall annually compute and certify to the General Assembly a current figure to limit appropriations as provided in subsection (B) of this section prior to the Budget and Control Board's submission of its recommended budget to the House Ways and Means Committee.

(E)   Notwithstanding the provisions of subsection (A) of this section, the General Assembly may declare a financial emergency and suspend the spending limitation for any one fiscal year for a specific amount by a special vote as provided in this subsection by enactment of legislation which relates only to that matter. The authorized state appropriations for the fiscal year following the suspension must be determined as if the suspension had not occurred and, for purposes of determining subsequent limits, must be presumed to have been the maximum limit which could have been authorized if such limitation had not been suspended.

The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting but not less than three-fifths of the total membership in each branch.

As used in this section:

(1)   'Annual limit' means the total of general fund revenues that may be appropriated in the next state fiscal year. This annual limit is calculated by adjusting general fund revenues available for appropriation in the current fiscal year, including BSF transfers pursuant to subsection (C)(1) of this section by a percentage equal to the average annual percentage change in the total of general fund revenues over the preceding ten completed state fiscal years as calculated by the Board of Economic Advisors. For purposes of the annual limit, a legislated increase or decrease in general fund revenues as estimated by the BEA must be added to or subtracted from the then applicable annual limit.

(2)   'BEA' means the Board of Economic Advisors established pursuant to Article 9, Chapter 9 of Title 11, or any successor agency performing similar functions.

(3)   'Budget Stabilization Fund' or 'BSF' means a fund established in the State Treasury separate and distinct from the general fund of the State and all other funds to which must be credited automatically general fund revenues accruing in a fiscal year in excess of the annual limit. Earnings on the BSF must be credited to it and balances in the BSF carry forward in it to succeeding fiscal years.

(4)   'Emergency' means:

(a)   the existence of an operating deficit in the general fund of the State for a completed fiscal year after the exhaustion of the Capital Reserve Fund as made in a finding by the Budget and Control Board upon sequestering the Capital Reserve Fund;

(b)   a catastrophic event outside the control of the General Assembly including, but not limited to, a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;

(c)   compliance with an order or decree entered by a court of competent jurisdiction; and

(d)   compliance with a federal statute or regulation imposing a nonfunded mandate on this State.

(5)   'General fund revenues' means the revenues of state-imposed taxes and fees, earnings on investments, and miscellaneous revenues to the State accruing in the fiscal year to which the annual limit applies, all of which by law must be credited to the general fund of the State and used for the general operation of state government, but not including any amounts credited to the BSF. General fund revenues also include those revenues credited to the general fund of the State but which by law are required to be appropriated from the general fund of the State for a specific purpose or purposes. By way of illustration but not limitation, general fund revenues do not include revenues of taxes, user fees, other fees, or miscellaneous revenues required by law to be credited to funds in the State Treasury separate and distinct from the general fund of the State and which by law must be appropriated for some special use or uses, whether or not those uses include the general operation of state government. By way of illustration but not limitation, revenues credited to the following separate funds in the State Treasury are not general fund revenues:

(a)   the General Reserve Fund and the Capital Reserve Fund established respectively pursuant to Section 36(A) and (B), Article III of the Constitution of this State and Sections 11-11-310 and 11-11-320;

(b)   the State Highway Fund and the State Non-Federal Aid State Highway Fund established pursuant to Section 57-11-20;

(c)   the Education Improvement Act of 1984 Fund established pursuant to Section 59-21-1010(B);

(d)   the Trust Fund for Tax Relief established pursuant to Section 11-11-150(B);

(e)   the Homestead Exemption Fund established pursuant to Section 11-11-155; and

(f)   the State Institution Bonds and State Highway Bonds Debt Service Fund established pursuant to Section 11-11-340.

(6)   'OSB' means the Office of State Budget of the State Budget and Control Board, or a successor agency performing similar functions.

(B)   Except as provided in subsection (D) of this section, the General Assembly may not appropriate general fund revenues for a fiscal year in an amount that totals more than the annual limit. The annual limit applies in all stages of the budget process, including the Governor's proposed budget, and this compliance must be certified by the OSB in an addendum to the Governor's proposed budget, the Ways and Means Committee's report on the annual general appropriations bill, the bill as it passes the House of Representatives, the Senate Finance Committee's report on the bill, the bill as it passes the Senate, and the report of a conference or free conference committee on the bill. The same certification must accompany any other bill or joint resolution appropriating general fund revenues.

(C)(1)   When the BEA makes or adjusts a forecast of state revenues, that forecast or adjustment must include a forecast or adjustment of general fund revenues as defined pursuant to subsection (A)(5) of this section, not including a BSF transfer and the then applicable annual limit. If the forecast or adjustment of the general fund revenues is less than the annual limit, there is transferred for that fiscal year whatever BSF balance is available to offset as much of this projected shortfall as the balance permits, but in no case more than the amount necessary, that when added to the forecast, equals the annual limit. This transfer must be accomplished by a separate line item in the annual general appropriations bill.

(2)   If revenues in the General Reserve Fund established pursuant to Section 36(A), Article III of the Constitution of this State and Section 11-11-310 are used to offset a year-end operating deficit, and a balance then exists in the BSF, then the Comptroller General shall transfer so much of the BSF balance as is available to the General Reserve Fund to replace revenues used from the General Reserve Fund. This transfer does not replace or supplant the minimum replenishment amount otherwise required to be made to the General Reserve Fund.

(3)(a)   Cash balances in the BSF not exceeding fifteen percent of general fund revenues for the last completed fiscal year as certified by OSB may be appropriated by the General Assembly in separate legislation upon an affirmative recorded vote in the House of Representatives and the Senate by two-thirds of the members present and voting, but not less than three-fifths of the total membership of the House of Representatives and the Senate.

(b)   Cash balances in the BSF in excess of fifteen percent of general fund revenues for the last completed fiscal year as certified by the OSB may be appropriated by the General Assembly for capital improvements, retirement of debt, non-recurring tax rebates, and other nonrecurring purposes in separate legislation solely for that purpose receiving an affirmative majority vote in the House of Representatives and the Senate.

(D)   If there is a finding of an emergency, the annual limit may be exceeded for a fiscal year and a concomitantly larger transfer made from the BSF to the general fund of the State for that fiscal year up to the amount by which the annual limit is exceeded. General fund revenue appropriations above the annual limit pursuant to a finding of an emergency are not included in the calculation of the annual limit. Transfers to the BSF for a fiscal year for which there is a finding of an emergency apply only to general fund revenues accruing in excess of the annual limit plus the amount by which the annual limit is exceeded. An emergency exists if the General Assembly makes a finding enacted as part of the annual general appropriations act or other act or joint resolution appropriating general fund revenues which:

(1)   specifies the emergency; and

(2)   which is adopted by an affirmative recorded vote in the House of Representatives and the Senate.

(E)   In any a year when surplus funds general fund revenues are collected, such revenue this surplus may be appropriated by the General Assembly to match funds for public education, public welfare, public health, road and highway construction, rehabilitation, replacement, or maintenance financed in part with federal participation funding or federal grants or tolls, or to accelerate the retirement of bonded indebtedness in the manner, for the purposes, and at the times provided by law, or transferred to the general fund reserve, or tax relief or for avoiding the issuance of bonds for projects that are authorized but not issued or any combination of these purposes without regard to the spending limitation imposed by this section. For the purposes of this section, surplus funds general fund revenues mean that portion of such revenues, as defined in subsection (A)(5) of this section, over and above revenues authorized for appropriation in subsection (B) that are available for appropriation and have not been appropriated and that are not required to be credited to the BSF."

SECTION   2.   This act takes effect upon ratification of an amendment to Section 7(c), Article X of the Constitution of this State authorizing its terms and first applies for appropriations for the first state fiscal year beginning more than one year after that date, prior to which the unamended version of Section 11-11-410 of the 1976 Code continues to apply.     /

Amend title to conform.

The committee amendment was adopted, as perfected.

Amendment No. 1

Senators RITCHIE and MARTIN proposed the following Amendment No. 1 (JUD1220.003), which was carried over:

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

/   SECTION   1.   Section 11-11-410 of the 1976 Code is amended to read:

"Section 11-11-410.   (A)   State appropriations in any fiscal year may not exceed appropriations authorized by the spending limitation prescribed in this section. State appropriations subject to the spending limitation are those appropriations authorized annually in the State General Appropriation Act and acts supplemental thereto which fund general, school, and highway purposes. A statement of total 'General, School, and Highway Revenues' must be included in each annual General Appropriation Act. As used in this section the appropriations so limited as defined above must be those funded by 'General, School, and Highway Revenues' that must be defined as such in the 1985-86 General Appropriation Act; it being the intent of this section that all additional nonfederal and nonuser fee revenue items must be included in that category as they may be created by act of the General Assembly.

(B)   The limitation on state appropriations prescribed in subsection (A) is an amount equal to either those state appropriations authorized by the spending limit for the previous fiscal year increased by the average percentage rate of growth in state personal income for the previous three completed calendar years or nine and one-half percent of the total personal income of the State for the calendar year ending before the fiscal year under consideration, whichever is greater. As used in this section, 'state personal income' means total personal income for a calendar year as determined by the Budget and Control Board or its successor based on the most recent data of the United States Department of Commerce or its successors. During the initial year this spending limit is in effect, the actual state appropriations for general, school, and highway purposes for the fiscal year 1985-1986 must be used as the base figure for computation of the spending limitation if the average rate of growth method is used.

(C)   The Comptroller General, or any other authorized agency, commission, or officer, may not approve or issue warrants which would allow disbursements above the amount appropriated for general fund purposes unless and until the General Assembly authorizes expenditures in excess of the limitation through procedures provided for in this article. This subsection may not apply to funds transferred from the reserve fund to the general fund.

(D)   The Division of Research and Statistical Services of the Budget and Control Board shall annually compute and certify to the General Assembly a current figure to limit appropriations as provided in subsection (B) of this section prior to the Budget and Control Board's submission of its recommended budget to the House Ways and Means Committee.

(E)   Notwithstanding the provisions of subsection (A) of this section, the General Assembly may declare a financial emergency and suspend the spending limitation for any one fiscal year for a specific amount by a special vote as provided in this subsection by enactment of legislation which relates only to that matter. The authorized state appropriations for the fiscal year following the suspension must be determined as if the suspension had not occurred and, for purposes of determining subsequent limits, must be presumed to have been the maximum limit which could have been authorized if such limitation had not been suspended.

The special vote referred to in this subsection means an affirmative vote in each branch of the General Assembly by two-thirds of the members present and voting but not less than three-fifths of the total membership in each branch.

As used in this section:

(1)   'Annual limit' means the total of general fund revenues that may be appropriated in the next state fiscal year. This annual limit is calculated by adjusting general fund revenues available for appropriation in the annual general appropriations act for the current fiscal year by a percentage equal to the average annual percentage change in the total of general fund revenues over the preceding ten completed state fiscal years as calculated by the Board of Economic Advisors. For purposes of the annual limit, a legislated increase or decrease in general fund revenues as estimated by the BEA must be added to or subtracted from the then applicable annual limit.

(2)   'BEA' means the Board of Economic Advisors established pursuant to Article 9, Chapter 9 of Title 11, or any successor agency performing similar functions.

(3)   'Budget Stabilization Fund' or 'BSF' means a fund established in the State Treasury separate and distinct from the general fund of the State and all other funds to which must be credited automatically general fund revenues accruing in a fiscal year in excess of the annual limit.

(4)   'Emergency' means:

(a)   the existence of an operating deficit in the general fund of the State for a completed fiscal year after the exhaustion of the Capital Reserve Fund as made in a finding by the Budget and Control Board upon sequestering the Capital Reserve Fund;

(b)   a catastrophic event outside the control of the General Assembly including, but not limited to, a natural disaster, severe weather event, act of God, or act of terrorism, fire, war, or riot;

(c)   compliance with an order or decree entered by a court of competent jurisdiction; and

(d)   compliance with a federal statute or regulation imposing a nonfunded mandate on this State.

(5)   'General fund revenues' means the revenues of state-imposed taxes and fees, earnings on investments, and miscellaneous revenues to the State accruing in the fiscal year to which the annual limit applies, all of which by law must be credited to the general fund of the State and used for the general operation of state government. General fund revenues also include those revenues credited to the general fund of the State but which by law are required to be appropriated from the general fund of the State for a specific purpose or purposes. By way of illustration but not limitation, general fund revenues do not include revenues of taxes, user fees, other fees, or miscellaneous revenues required by law to be credited to funds in the State Treasury separate and distinct from the general fund of the State and which by law must be appropriated for some special use or uses, whether or not those uses include the general operation of state government. By way of illustration but not limitation, revenues credited to the following separate funds in the State Treasury are not general fund revenues:

(a)   the General Reserve Fund and the Capital Reserve Fund established respectively pursuant to Section 36(A) and (B), Article III of the Constitution of this State and Sections 11-11-310 and 11-11-320;

(b)   the State Highway Fund and the State Non-Federal Aid State Highway Fund established pursuant to Section 57-11-20;

(c)   the Education Improvement Act of 1984 Fund established pursuant to Section 59-21-1010(B);

(d)   the Trust Fund for Tax Relief established pursuant to Section 11-11-150(B);

(e)   the Homestead Exemption Fund established pursuant to Section 11-11-155; and

(f)   the State Institution Bonds and State Highway Bonds Debt Service Fund established pursuant to Section 11-11-340.

(6)   'OSB' means the Office of State Budget of the State Budget and Control Board, or a successor agency performing similar functions.

(B)   Appropriations for a fiscal year must not exceed the Annual Limit. The revenue exceeding this limit shall be distributed to a Budget Stabilization Fund, which shall be funded from the appropriate revenues that exceed the limitation.

(C)   Except as provided in subsection (D) of this section, the General Assembly may not appropriate general fund revenues for a fiscal year in an amount that totals more than the annual limit. The annual limit applies in all stages of the budget process, including the Governor's proposed budget, and this compliance must be certified by the OSB in an addendum to the Governor's proposed budget, the Ways and Means Committee's report on the annual general appropriations bill, the bill as it passes the House of Representatives, the Senate Finance Committee's report on the bill, the bill as it passes the Senate, and the report of a conference or free conference committee on the bill. The same certification must accompany any other bill or joint resolution appropriating general fund revenues.

(D)(1)   When the BEA makes or adjusts a forecast of state revenues, that forecast or adjustment must include a forecast or adjustment of general fund revenues as defined pursuant to subsection (A)(5) of this section, not including a BSF transfer and the then applicable annual limit. If the forecast or adjustment of the general fund revenues is less than the annual limit, there is transferred for that fiscal year whatever BSF balance is available to offset as much of this projected shortfall as the balance permits, but in no case more than the amount necessary, that when added to the forecast, equals the annual limit. This transfer must be accomplished by a separate line item in the annual general appropriations bill.

(2)   If revenues in the General Reserve Fund established pursuant to Section 36(A), Article III of the Constitution of this State and Section 11-11-310 are used to offset a year-end operating deficit, and a balance then exists in the BSF, then the Comptroller General shall transfer so much of the BSF balance as is available to the General Reserve Fund to replace revenues used from the General Reserve Fund. This transfer does not replace or supplant the minimum replenishment amount otherwise required to be made to the General Reserve Fund.

(3)(a)   Cash balances in the BSF not exceeding fifteen percent of general fund revenues for the last completed fiscal year as certified by OSB may be appropriated by the General Assembly in separate legislation upon an affirmative recorded vote in the House of Representatives and the Senate by two-thirds of the members present and voting, but not less than three-fifths of the total membership of the House of Representatives and the Senate.

(b)   Cash balances in the BSF in excess of fifteen percent of general fund revenues for the last completed fiscal year as certified by the OSB shall be appropriated by the General Assembly for capital improvements, retirement of debt, non-recurring tax rebates, and other nonrecurring purposes in separate legislation solely for that purpose receiving an affirmative majority vote in the House of Representatives and the Senate.

(E)   If there is a finding of an emergency, the annual limit may be exceeded for a fiscal year and a concomitantly larger transfer made from the BSF to the general fund of the State for that fiscal year up to the amount by which the annual limit is exceeded. General fund revenue appropriations above the annual limit pursuant to a finding of an emergency are not included in the calculation of the annual limit. Transfers to the BSF for a fiscal year for which there is a finding of an emergency apply only to general fund revenues accruing in excess of the annual limit plus the amount by which the annual limit is exceeded. An emergency exists if the General Assembly makes a finding enacted as part of the annual general appropriations act or other act or joint resolution appropriating general fund revenues which:

(1)   specifies the emergency; and

(2)   which is adopted by an affirmative recorded vote in the House of Representatives and the Senate.

(F)   In any a year when surplus funds general fund revenues are collected, such revenue this surplus may be appropriated by the General Assembly to match funds for public education, public welfare, public health, road and highway construction, rehabilitation, replacement, or maintenance financed in part with federal participation funding or federal grants or tolls, or to accelerate the retirement of bonded indebtedness pursuant to subsection (D)(3)(b) or transferred to the general fund reserve, or tax relief or for avoiding the issuance of bonds for projects that are authorized but not issued or any combination of these purposes without regard to the spending limitation imposed by this section. For the purposes of this section, surplus funds general fund revenues mean that portion of such revenues, as defined in subsection (A)(5) of this section, over and above revenues authorized for appropriation in subsection (B) that are available for appropriation and have not been appropriated and that are not required to be credited to the BSF."

SECTION   2.   This act takes effect for fiscal year beginning 2009-2010.   /

Amend title to conform.

Senator RITCHIE explained the amendment.

On motion of Senator RITCHIE, with unanimous consent, Amendment No. 1 was carried over.

On motion of Senator RITCHIE, with unanimous consent, the Bill was carried over.

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that, when the Senate adjourns today, it stand adjourned to meet tomorrow at 11:00 A.M.