H 3124 General Bill, By J.L.M. Cromer, Cotty, W.D. Keyserling, Richardson, 
Meacham, Stille and Stuart

Similar(H 4376)
 A Bill to amend Section 38-73-470, as amended, Code of Laws of South Carolina,
 1976, relating to disposition of the uninsured motorist premium, so as to
 provide that three dollars, rather than one dollar, of the yearly premium for
 uninsured motorist coverage must be transferred to the Department of
 Insurance, rather than the Department of Public Safety, to provide funds for
 the costs of administering the provisions of Section 38-73-738, rather than
 Article 3, Chapter 10, Title 56; to amend the 1976 Code by adding Section
 38-73-738 so as to provide for a system whereby the Department of Insurance
 issues to each first time driver's license applicant who is at least fifteen
 years old but less than seventeen years old a driver training voucher, and
 provide for related matters; and to amend the 1976 Code by adding Section
 56-1-75 so as to provide that a driver's license cannot be issued to any
 person who is at least fifteen years old but under seventeen years old until
 the person has provided evidence of satisfactory completion of an approved
 driver training course as provided in Section 38-73-738, and provide for
 related matters.

   12/21/94  House  Prefiled
   12/21/94  House  Referred to Committee on Education and Public Works
   01/10/95  House  Introduced and read first time HJ-45
   01/10/95  House  Referred to Committee on Education and Public
                     Works HJ-46
   02/23/95  House  Committee report: Favorable with amendment
                     Education and Public Works HJ-1
   02/28/95  House  Debate adjourned HJ-22
   03/01/95  House  Committed to Committee on Labor, Commerce and
                     Industry HJ-13

COMMITTEE REPORT

February 23, 1995

H. 3124

Introduced by REPS. Cromer, Keyserling, Meacham, Stille, Richardson, Stuart and Cotty

S. Printed 2/23/95--H.

Read the first time January 10, 1995.

To whom was referred a Bill (H. 3124), to amend Section 38-73-470, as amended, Code of Laws of South Carolina, 1976, relating to disposition of the uninsured motorist premium, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

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

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

"Section 56-1-75. (A) The department shall not issue a driver's license to any person who is at least fifteen years of age but less than seventeen years of age until the applicant has provided the department satisfactory evidence of successful completion of an approved driver training course as provided in this section.

(B) This requirement does not apply to a beginner's permit as provided in Section 56-1-50; however, it must be complied with before the issuance of a special restricted license as provided for in Section 56-1-180.

(C) An `approved driver training course' for purposes of this section is a driver training course which has been approved by the South Carolina Department of Education, the South Carolina Department of Public Safety, or any other responsible educational agency and conducted by:

(1) a recognized secondary school, college, or university;

(2) instructors certified by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency; or

(3) any other school approved and supervised by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency.

(D) The requirements of the course must include the following minimum criteria:

(1) eight hours of classroom instruction for driver training school approved courses;

(2) six hours of actual on-street practice driving;

(3) instruction on the effects drugs and alcohol have on the operation of motor vehicles and the consequences of drug or alcohol impaired driving; and

(4) a relevant test on the course material.

(E) For purposes of this section `satisfactory evidence' is a certificate, on a form prescribed by the Department of Revenue and Taxation, signed by an official of the school, the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency, which certifies that:

(1) the person achieved a passing grade on a relevant test on the course material;

(2) the course was approved by and the instructors were certified by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency; and

(3) for schools other than recognized secondary schools, college, or universities, the school was approved and supervised by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency.

(F) Successful completion of a driver training course as provided in this section entitles the person to the driver training credit provided in Regulation 69-13.2(I) for youthful operators.

(G) The department, upon satisfactory proof that a minor who is at least fifteen years of age but less than seventeen years of age has become a resident of South Carolina and has a valid driver's license from his prior state of residence but has not completed a driver training course, may grant the minor a temporary driver's license under such terms considered necessary by the department to allow the minor to operate a motor vehicle of a specified type or class in this State in order to obtain the driver training course necessary for a driver's license in South Carolina."

SECTION 2. This act takes effect January 1, 1996, but does not apply to any person born before January 1, 1980./

Amend title to conform.

RONALD P. TOWNSEND, for Committee.

1. Estimated Cost to State-First Year$-0-

2. Estimated Cost to State-Annually Thereafter$-0-

House Bill 3124, if enacted, amends Section 38-73-470, Code of Laws of South Carolina, 1976, relating to disposition of the uninsured motorist premium to increase the amount of the premium to be used to provide funds for the costs of administering the provisions of Section 38-73-738; provide for transfer of this portion of the premium to the Department of Insurance, rather than the Department of Public Safety; amend by adding Section 38-73-738 that provides a procedure for the Department of Insurance to issue to a first time driver's license applicant age 15 but less than 17 years of age a driver training voucher; add Section 56-1-75 to provide that a driver's license not be issued to persons age 15 but less than 17 years of age until applicant has provided evidence of satisfactory completion of an approved driver training course as provided in Section 38-73-738.

Article 3, Chapter 10 of Title 56 provides enforcement duties of ensuring that all registered vehicles in the state have current insurance and for those vehicles that do not have current insurance the ability to suspend registrations. The South Carolina Department of Public Safety, Office of Financial Responsibility is responsible for administration of this Article.

Impact of this legislation upon the Department of Public Safety would be an estimated reduction of $4 million in "other funds" to the agency. Yet, statutes remain in effect that require DPS to continue the activities currently funded with these dollars. This reduction in funding would effect the ability of the department to enforce this article. Since the shifting of these resources is "other funds", the General Fund of the State is not affected.

Section 38-73-470 requires that three dollars of the yearly premium for uninsured motorist coverage be transferred to the Department of Insurance rather than the Department of Public Safety and used to provide funds for administering the driving training voucher program. The one dollar yearly premium for uninsured motorist coverage is approximately $2.7 million; thus, the three dollars of the yearly premium would generate $8.1 million.

Section 38-73-738 requires that the Department of Insurance issue to each first time driver's license applicant who is at least 15 years of age but less than 17 years of age, one driver training voucher. The voucher can be used to assist in the cost of taking a driver training course which the Department of Revenue and Taxation will require to be taken before issuing a special restricted license to anyone under 17 years of age. The driver training course shall be approved by the South Carolina Department of Education, the South Carolina Department of Public Safety, or any other responsible educational agency.

Implementing Sections 38-73-470 and 38-73-738 will require the Department of Insurance to create a new division to comply with collecting the three dollar yearly premium for uninsured motorist coverage and distributing driver training vouchers to qualified applicants. The Insurance Department estimates that based on beginner permits issued last year it is anticipated 50,000 individuals from this age group will participate in the voucher program. Using this assumption and a comparable division currently in operation in the Department of Insurance which deals with 40,000 people requesting licenses, an estimate of $328,915 to implement the program would be necessary.

Personal Service $180,566

Director; Accountant; Admin Assist (2);

Admin Spec (3); Data Processing Support (1/2)

Employer Contributions 50,149

Operating Expenses - recurring 58,200

Operating Expenses - non-recurring 40,000

TOTAL ESTIMATED COST FIRST YEAR $328,915

This estimate assumes (1) all applicants requesting training vouchers will apply through the Department of Insurance's office in Columbia, (2) most communication with applicants will be by mail since the Department of Insurance does not have county offices, and (3) provisions have not been made in data processing costs to provide direct links with agencies providing the driver training courses. If such links are needed or if travel to various locations within the state are required, estimates will be increased.

Section 56-1-75 is amended to require that the Department of Revenue and Taxation be provided with evidence of satisfactory completion of an approved driver training course before issuing a special restricted license to applicants under 17 years of age. The costs associated with these additional responsibilities will not significantly impact on the Department of Revenue and Taxation's operations.

The bill amends Section 38-73-470 by transferring a portion of the premiums paid for "uninsured motorist coverage" from the Department of Public Safety to the Department of Insurance for administration of Section 38-73-738, added by the bill.

Passage of House Bill 3124 would have no direct impact on the General Fund of the State since these funds are generated from premiums paid on uninsured motorist coverage.

Prepared By: Approved By:

Cheryl H. Morris George N. Dorn, Jr.

Frances H. Barr Director, Office of State Budget

James W. Trexler

State Budget Analyst

A BILL

TO AMEND SECTION 38-73-470, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO PROVIDE THAT THREE DOLLARS, RATHER THAN ONE DOLLAR, OF THE YEARLY PREMIUM FOR UNINSURED MOTORIST COVERAGE MUST BE TRANSFERRED TO THE DEPARTMENT OF INSURANCE, RATHER THAN THE DEPARTMENT OF PUBLIC SAFETY, TO PROVIDE FUNDS FOR THE COSTS OF ADMINISTERING THE PROVISIONS OF SECTION 38-73-738, RATHER THAN ARTICLE 3, CHAPTER 10, TITLE 56; TO AMEND THE 1976 CODE BY ADDING SECTION 38-73-738 SO AS TO PROVIDE FOR A SYSTEM WHEREBY THE DEPARTMENT OF INSURANCE ISSUES TO EACH FIRST TIME DRIVER'S LICENSE APPLICANT WHO IS AT LEAST FIFTEEN YEARS OLD BUT LESS THAN SEVENTEEN YEARS OLD A DRIVER TRAINING VOUCHER, AND PROVIDE FOR RELATED MATTERS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 56-1-75 SO AS TO PROVIDE THAT A DRIVER'S LICENSE CANNOT BE ISSUED TO ANY PERSON WHO IS AT LEAST FIFTEEN YEARS OLD BUT UNDER SEVENTEEN YEARS OLD UNTIL THE PERSON HAS PROVIDED EVIDENCE OF SATISFACTORY COMPLETION OF AN APPROVED DRIVER TRAINING COURSE AS PROVIDED IN SECTION 38-73-738, AND PROVIDE FOR RELATED MATTERS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 38-73-470 of the 1976 Code, as last amended by Sections 783 and 787 of Act 181 of 1993, is further amended to read:

"Section 38-73-470. One dollar Three dollars of the yearly premium for uninsured motorist coverage must be transferred to the South Carolina Department of Public Safety Insurance, payable on a quarterly basis, to provide funds for the costs of enforcing and administering the provisions of Article 3, Chapter 10, Title 56 Section 38-73-738."

SECTION 2. The 1976 Code is amended by adding:

"Section 38-73-738. (A) Upon request, the Department of Insurance shall issue to each first time driver's license applicant who is at least fifteen years of age but less than seventeen years of age one driver training voucher. There must be one uniform voucher printed in triplicate on a form determined by the department. The voucher must contain the following information:

(1) holder's name and address;

(2) holder's birth date;

(3) holder's social security number;

(4) the date issued and expiration date;

(5) the signature of the holder;

(6) the name and address of the school district or driver training school;

(7) the use date;

(8) the signature of the school official; and

(9) validation date by the department.

(B) The Director of the Department of Insurance is authorized to promulgate regulations to implement the provisions of (A), including setting the amount of the voucher under this section for the driver education schools licensed by and operating in this State.

(C) If sufficient funds are not collected to pay the costs of operating the voucher system in any one year, the program may be temporarily suspended until adequate funds have accumulated for administration of the voucher system.

(D) `An approved driver training course' for purposes of this section is a driver training course which has been approved by the South Carolina Department of Education, the South Carolina Department of Public Safety, or any other responsible educational agency and was conducted by:

(1) a recognized secondary school, college, or university;

(2) instructors certified by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency; or

(3) any other school approved and supervised by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency.

(4) The requirements of the course must include the following minimum criteria:

(a) eight hours of classroom instruction for commercial driver training school approved courses; thirty hours of classroom instruction for a public or private secondary school course;

(b) six hours of actual on-street practice driving;

(c) instruction on the effects drugs and alcohol have on the operation of motor vehicles and the consequences of drug or alcohol impaired driving; and

(d) a relevant test on the course material.

(E) For purposes of this section `satisfactory evidence' is a certificate, signed by an official of the school, the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency, which certifies that:

(1) the person achieved a passing grade on a relevant test on the course material;

(2) the course was approved by and the instructors were certified by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency; and

(3) for schools other than recognized secondary schools, colleges, or universities, the school was approved and supervised by the South Carolina Department of Education, the South Carolina Department of Public Safety, or other responsible educational agency.

(F) Successful completion of a driver training course as provided in this section entitles the person to the driver training credit provided in Regulation 69-13.2(I) for youthful operators.

(G) An applicant for a driver's license who is at least fifteen years of age but less than seventeen years of age is required to successfully complete a driver training course before obtaining a driver's license and to provide certification of completion to the Department of Revenue and Taxation.

(H) Notwithstanding any other provision of law, every driver training school licensed by the State must provide, for the value of the voucher presented, the required class as specified by the Department of Insurance for driver education program purposes, and, if an applicant as described in subsection (A) of this section fails to successfully complete the driver training course as described in this section, the applicant must be entitled, for purposes of the driver training voucher, to one makeup of the driver training course at no cost to him.

(I) The Director of the Department of Insurance may temporarily suspend the program provided for in this section in any area of the State if he determines that sufficient numbers of certified teachers for the course are not available in a particular area."

SECTION 3. The 1976 Code is amended by adding:

"Section 56-1-75. (A) The department shall not issue a driver's license to any person who is at least fifteen years of age but less than seventeen years of age until the applicant has provided the department with evidence of satisfactory completion of an approved driver training course as provided in Section 38-73-738. To defray the cost of taking the course, the applicant may request a driver training voucher from the Department of Insurance as provided for in Section 38-73-738. The Department of Revenue and Taxation shall inform applicants for beginner's permits and driver's licenses of the availability of the voucher.

(B) This requirement does not apply to a beginner's permit as provided in Section 56-1-50; however, it must be complied with before the issuance of a special restricted license as provided for in Section 56-1-180.

(C) The department, upon satisfactory proof that a minor who is at least fifteen years of age but less than seventeen years of age has become a resident of South Carolina and has a valid driver's license from his prior state of residence but has not completed a driver training course, may grant the minor a temporary driver's license under such terms considered necessary by the department to allow the minor to operate a motor vehicle of a specified type or class in this State in order to obtain the driver training course necessary for a driver's license in South Carolina."

SECTION 4. Section 2 of this act takes effect August 1, 1996. Section 3 of this act takes effect October 1, 1996.

SECTION 5. Except as otherwise specifically provided herein, this act takes effect October 1, 1995.