Journal of the Senate
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995

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| Printed Page 2060, Apr. 26 | Printed Page 2080, Apr. 26 |
Printed Page 2070 . . . . . Wednesday, April 26, 1995
Call of the Senate

Senator DRUMMOND moved that a call of the Senate be made. The following Senators answered the call:

Alexander         Cork             Drummond

Giese             Hayes            Lander

Leventis          Martin           McConnell

Moore             Passailaigue     Reese

Ryberg            Saleeby          Short

Smith, G.         Stilwell         Thomas

Waldrep

Motion Adopted

At 2:25 P.M., Senator McCONNELL asked unanimous consent to make a motion that the Senate stand in recess not to exceed ten minutes until a quorum was present.

Presence Recorded

Senators BRYAN, GREGORY, HOLLAND, J. VERNE SMITH, WILSON and SETZLER recorded their presence subsequent to the Call of the Senate.

At 2:29 P.M., a quorum being present, the Senate resumed.

Presence Recorded

Senators RANKIN, LAND, ELLIOTT, JACKSON, RICHTER, O'DELL, LEATHERMAN, PEELER, COURTNEY, MESCHER, RUSSELL, MATTHEWS, ROSE, PATTERSON, WASHINGTON, McGILL, GLOVER and FORD recorded their presence subsequent to a quorum being present.

RECALLED

S. 753 -- Senator Passailaigue: A BILL TO AMEND TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION, BY ADDING CHAPTERS 6, 8, AND 20, SO AS TO REVISE, REORGANIZE, AND RECODIFY STATE TAX LAWS IMPOSING THE INDIVIDUAL AND CORPORATE INCOME TAX, PROVIDING FOR THE WITHHOLDING OF INCOME TAXES, AND IMPOSING THE CORPORATION LICENSE TAX; TO AMEND TITLE 12 BY ADDING CHAPTERS 56 AND 58, WHICH SHALL CONTAIN RESPECTIVELY THE FORMER PROVISIONS OF ARTICLE 3 OF CHAPTER 54, THE SETOFF DEBT COLLECTION ACT AND

Printed Page 2071 . . . . . Wednesday, April 26, 1995
ARTICLE 5 OF CHAPTER 54, THE SOUTH CAROLINA TAXPAYERS' BILL OF RIGHTS; TO AMEND CHAPTER 54 OF TITLE 12 BY ADDING SECTIONS 12-54-15, 12-54-17, 12-54-42, 12-54-47, 12-54-85, 12-54-127, AND 12-54-135 SO AS TO MOVE ENFORCEMENT PROVISIONS TO THE CHAPTER CONSTITUTING THE UNIFORM METHOD OF COLLECTION AND ENFORCEMENT OF TAXES LEVIED AND ASSESSED BY THE SOUTH CAROLINA DEPARTMENT OF REVENUE AND TAXATION; BY ADDING SECTION 50-1-280, SO AS TO MOVE THE PROVISIONS RELATING TO THE NONGAME WILDLIFE AND NATURAL AREAS FUND TO THE APPROPRIATE LOCATION IN TITLE 50, RELATING TO FISH, GAME, AND WATERCRAFT; TO AMEND SECTION 12-4-330, AS AMENDED, RELATING TO WITNESSES BEFORE THE DEPARTMENT OF REVENUE AND TAXATION, SO AS TO ALLOW THE DIRECTOR AND DESIGNATED OFFICERS TO ADMINISTER OATHS AND TAKE ACKNOWLEDGMENTS; TO AMEND SECTIONS 11-35-5230, AS AMENDED, 12-37-220, AS AMENDED, 12-54-30, AS AMENDED, 12-54-40, AS AMENDED, 12-54-55, AS AMENDED, 12-54-120, AS AMENDED, 12-54-210, 12-54-240, AS AMENDED, 41-44-10, 41-44-20, AND 41-44-70, ALL RELATING TO TAXATION, SO AS TO CONFORM THE SECTIONS TO THE RECODIFIED CHAPTERS ADDED BY THIS ACT, TO PROVIDE THAT A REPEAL OF A SECTION OF THE 1976 CODE BY THIS ACT DOES NOT PREVENT THE ASSESSMENT OR COLLECTION OF ANY TAX, INTEREST, OR PENALTIES DUE BEFORE THE EFFECTIVE DATE OF THIS ACT, TO PROVIDE FOR THE CONTINUAL APPLICATION OF CERTAIN DEPARTMENT REGULATIONS PROMULGATED PURSUANT TO THE PREDECESSOR PROVISIONS OF THE CHAPTERS ADDED BY THIS ACT, TO PROVIDE FOR CROSS REFERENCES AND THE DUTIES OF THE CODE COMMISSIONER IN THE RECODIFICATION ACCOMPLISHED BY THIS ACT; AND TO REPEAL CHAPTERS 7, 9, AND 19 OF TITLE 12 AND SECTIONS 41-44-30, 41-44-40, 41-44-50, 41-44-90, AND 41-44-100, ALL OF THE 1976 CODE, AND ALL RELATING TO TAXATION, EFFECTIVE FOR TAXABLE YEARS BEGINNING AFTER 1995.

Senator PASSAILAIGUE asked unanimous consent to make a motion to recall the Bill from the Committee on Finance.

There was no objection.

Printed Page 2072 . . . . . Wednesday, April 26, 1995
On motion of Senator PASSAILAIGUE, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

HOUSE CONCURRENCE

S. 787 -- Senators Rose, Alexander, Bryan, Cork, Courson, Courtney, Drummond, Elliott, Ford, Giese, Glover, Gregory, Hayes, Holland, Jackson, Land, Lander, Leatherman, Leventis, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Rankin, Reese, Richter, Russell, Ryberg, Saleeby, Setzler, Short, Greg Smith, J. Verne Smith, Stilwell, Thomas, Waldrep, Washington, Williams and Wilson: A CONCURRENT RESOLUTION TO EXPRESS TO THE PEOPLE OF OUR SISTER STATE OF OKLAHOMA THE HEARTFELT SYMPATHY OF THE PEOPLE OF SOUTH CAROLINA OVER THE TRAGIC LOSS OF LIFE AND TO OFFER OUR PRAYERS AND CONDOLENCES.

Returned with concurrence.

Received as information.

AMENDED, READ THE SECOND TIME

WITH NOTICE OF GENERAL AMENDMENTS

S. 628 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 38-73-1420, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF GOVERNORS OF THE SOUTH CAROLINA REINSURANCE FACILITY, SO AS TO DELETE CERTAIN LANGUAGE, AND PROVIDE AMONG OTHER THINGS, THAT THE COST REDUCTIONS REALIZED IN OPERATING RESULTS OF THE FACILITY SHALL BE APPLIED EXCLUSIVELY TO REDUCE THE RECOUPMENT CHARGES ON ALL POLICIES OF PRIVATE PASSENGER AUTOMOBILE INSURANCE WRITTEN IN SOUTH CAROLINA; TO AMEND SECTION 38-73-1425, AS AMENDED, RELATING TO THE FINAL RATE ON PREMIUM CHARGE FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE RISK CEDED TO THE REINSURANCE FACILITY, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE, AMONG OTHER THINGS, THAT IN CALCULATING THE FINAL RATE OR PREMIUM CHARGE, IT MUST BE BASED UPON THE COMBINED RATIO OF ALL INSURERS CEDING PRIVATE PASSENGER AUTOMOBILE INSURANCE RISKS TO THE FACILITY; TO AMEND SECTION 38-73-455, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE RATES, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT RATING PLANS MAY PROVIDE FOR DIFFERENT

Printed Page 2073 . . . . . Wednesday, April 26, 1995
RATES, RATING TIERS, AND RATING PLANS AMONG AFFILIATED COMPANIES; TO AMEND SECTION 38-77-950, AS AMENDED, RELATING TO UNREASONABLE OR EXCESSIVE USE OF THE REINSURANCE FACILITY BY AN INSURER, SO AS TO DELETE A REFERENCE TO "AN AUTOMOBILE INSURER"; TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-596 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT UPON NOTIFICATION TO THE GOVERNING BOARD OF THE REINSURANCE FACILITY, DESIGNATED PRODUCERS MAY CONTRACT WITH A VOLUNTARY MARKET OUTLET FOR ANY TYPE OF AUTOMOBILE INSURANCE CEDEABLE TO THE FACILITY; TO AMEND SECTION 38-77-280, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND COLLISION AND COMPREHENSIVE COVERAGES, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, AUTOMOBILE INSURERS, INCLUDING THOSE COMPANIES WRITING PRIVATE PASSENGER PHYSICAL DAMAGE COVERAGES ONLY, MAY, RATHER THAN "SHALL", MAKE COLLISION COVERAGE AND EITHER COMPREHENSIVE OR FIRE, THEFT, AND COMBINED ADDITIONAL COVERAGE AVAILABLE TO AN INSURED OR QUALIFIED APPLICANT WHO REQUESTS THE COVERAGE; TO AMEND SECTION 38-77-735, AS AMENDED, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE PLAN FOR CREDITS AND DISCOUNTS, SO AS TO DELETE CERTAIN LANGUAGE, AND PROVIDE THAT IF AN INSURANCE CREDIT OR DISCOUNT PLAN, OTHER THAN THAT PROMULGATED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE, IS GIVEN TO AN INSURED PURSUANT TO THIS SECTION, THE POLICY MAY NOT BE CEDED TO THE REINSURANCE FACILITY; AND TO PROVIDE THAT RECOUPMENT FEES FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE FOR THE TWELVE MONTHS ENDING JUNE 30, 1996, SHALL NOT EXCEED THE LEVEL CHARGED DURING THE TWELVE-MONTH PERIOD ENDING JUNE 30, 1995, AND THAT REINSURANCE FACILITY LOSSES UNRECOUPED DUE TO THIS PROVISION SHALL BE RECOUPED EVENLY DURING THE THREE-YEAR PERIOD BEGINNING JULY 1, 1996.

The Senate resumed consideration of the Bill. The question being the adoption of Amendment No. 18 (BBM\10217JM.95) previously proposed by Senator SALEEBY, which was adopted, as perfected.

Printed Page 2074 . . . . . Wednesday, April 26, 1995
Senator SALEEBY spoke on the amendment.

Senator MARTIN argued contra to the adoption of the amendment.

Senator BRYAN spoke on the amendment.

Amendment No. 18A

Senator RYBERG proposed the following Amendment No. 18A (628R010.WGR), which was adopted:

Amend the amendment bearing Document No. BBM\10217JM.95 by deleting SECTIONS 10 and 11 in their entirety and renumbering the remaining sections to conform.

Amend title to conform.

Senator BRYAN explained the amendment.

Senator BRYAN moved that the amendment be adopted.

Senator LAND moved to lay the amendment on the table.

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

Ayes 9; Nays 32

AYES

Glover            Holland          Land

Lander            McGill           Patterson

Reese             Saleeby          Smith, J.V.

TOTAL--9

NAYS

Alexander         Bryan            Cork

Courtney          Drummond         Elliott

Giese             Gregory          Hayes

Jackson           Leatherman       Leventis

Martin            McConnell        Mescher

Moore             O'Dell           Passailaigue

Peeler            Rankin           Richter

Rose              Russell          Ryberg

Setzler           Short            Smith, G.

Stilwell          Thomas           Waldrep

Washington        Wilson

TOTAL--32


Printed Page 2075 . . . . . Wednesday, April 26, 1995
The Senate refused to table the amendment. The question then was the adoption of the amendment.

Amendment No. 18A was adopted.

Senator MOORE spoke on the Bill.

Senator MOORE moved to continue the Bill.

Senator SALEEBY moved to table the motion to continue.

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

Ayes 28; Nays 12

AYES

Alexander         Bryan            Courtney

Drummond          Elliott          Giese

Hayes             Jackson          Land

Lander            Matthews         McConnell

McGill            Mescher          Passailaigue

Patterson         Rankin           Richter

Rose              Russell          Ryberg

Saleeby           Short            Smith, G.

Smith, J.V.       Stilwell         Waldrep

Washington

TOTAL--28

NAYS

Cork              Glover           Gregory

Holland           Martin           Moore

O'Dell            Peeler           Reese

Setzler           Thomas           Wilson

TOTAL--12

The motion to continue was laid on the table.

Printed Page 2076 . . . . . Wednesday, April 26, 1995
Amendment No. 18B

Senators RICHTER, WILSON, RUSSELL, RYBERG and PEELER proposed the following Amendment No. 18B (628R009.LER), which was adopted:

Amend the amendment bearing Document No. BBM\10217JM.95 by adding a new SECTION 18 to read as follows:

/SECTION 18. Section 38-3-10 of the 1976 Code is amended to read:

"Section 38-3-10. (A) Effective July 1, 1995, through June 30, 1996, There there is established a separate and distinct department of this State, known as the Department of Insurance. The department must be managed and operated by a director appointed by the Governor upon the advice and consent of the Senate. The director is subject to removal by the Governor as provided in Section 1-3-240(B). The director shall be selected with special reference to his training, experience, technical knowledge of the insurance industry, and demonstrated administrative ability. The director may appoint or designate the person or persons who shall serve at the pleasure of the director to carry out the objectives or duties of the department as provided by law. Furthermore, the director may bestow upon his designee or deputy director any duty or function required of him by law in managing or supervising the Department of Insurance.
(B) Effective January 1, 1997, the department must be operated under the management and direction of a statewide officer designated as the Commissioner of Insurance. The office must be elected for a four-year term beginning with the 1996 general election. Candidates for the office of Commissioner of Insurance shall file for election and be nominated in accordance with the provisions applicable to the nomination and election of statewide constitutional officers, mutatis mutandis."/

Renumber remaining sections to conform.

Amend title to conform.

Senator RICHTER explained the amendment.

Senator ALEXANDER argued contra to the adoption of the amendment.

Senator ALEXANDER moved to lay the amendment on the table.

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

Ayes 13; Nays 28

AYES

Alexander         Courtney         Giese

Gregory           Hayes            Jackson

Leventis          Rankin           Saleeby





Printed Page 2077 . . . . . Wednesday, April 26,
1995



Smith, J.V.       Stilwell         Thomas

Waldrep

TOTAL--13

NAYS

Bryan             Cork             Elliott

Ford              Glover           Holland

Land              Lander           Leatherman

Martin            Matthews         McConnell

McGill            Mescher          Moore

O'Dell            Passailaigue     Patterson

Peeler            Reese            Richter

Rose              Russell          Ryberg

Setzler           Smith, G.        Washington

Wilson

TOTAL--28

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator LEVENTIS argued in favor of the adoption of the amendment.

Senator LEVENTIS moved to lay the amendment on the table.

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

Ayes 17; Nays 23

AYES

Alexander         Courtney         Drummond

Giese             Gregory          Hayes

Jackson           Land             Leventis

Patterson         Reese            Saleeby

Short             Smith, G.        Smith, J.V.

Stilwell          Waldrep

TOTAL--17

NAYS

Bryan             Cork             Elliott

Ford              Glover           Lander





Printed Page 2078 . . . . . Wednesday, April 26,
1995



Leatherman        Martin           McConnell

McGill            Mescher          Moore

O'Dell            Passailaigue     Peeler

Rankin            Richter          Rose

Russell           Ryberg           Setzler

Washington        Wilson

TOTAL--23

The Senate refused to table the amendment. The question then was the adoption of Amendment No. 18B.

Amendment No. 18B was adopted.

Amendment No. 18C

Senator MATTHEWS asked unanimous consent to take up Amendment No. 18C for immediate consideration.

There was no objection.

Senators MATTHEWS, WASHINGTON, PATTERSON, GLOVER, and FORD proposed the following Amendment No. 18C (JIC\5883HTC.95), which was adopted:

Amend the amendment bearing Document No. BBM\10217JM.95, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION ___. Section 38-77-590 of the 1976 Code, as last amended by Section 823 of Act 181 of 1993, is further amended by adding:

"(i) Notwithstanding any other provisions of this section or of this article, the governing board of the facility shall determine an average volume of business by designated producers using a methodology designed to eliminate from the calculation extremes of low and high volume that would skew the average. Where the designated producers in an area of the State exceed this average volume, the governing board shall add additional otherwise qualified designated producers without regard to the criteria for designation provided in this section. In making these additional designations, the governing board shall survey the representation of minorities among designated producers in each area of the State and where minorities are underrepresented with respect to the population of the area, shall use the designation of these additional producers to make up for the disparity."/

Renumber sections to conform.

Amend title to conform.

Printed Page 2079 . . . . . Wednesday, April 26, 1995
Senator MATTHEWS explained the amendment.

Amendment No. 18C was adopted.

Senator MARTIN spoke on the Bill.

The question then was the adoption of Amendment No. 18, as perfected.

Senator MARTIN spoke on the amendment.

Senator MARTIN moved to table Amendment No. 18, as perfected.

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

Ayes 12; Nays 29

AYES

Alexander         Cork             Leatherman

Leventis          Martin           McConnell

Moore             O'Dell           Passailaigue

Peeler            Setzler          Smith, G.

TOTAL--12

NAYS

Bryan             Courtney         Drummond

Elliott           Ford             Giese

Glover            Gregory          Hayes

Jackson           Land             Lander

Matthews          McGill           Mescher

Patterson         Rankin           Reese

Richter           Rose             Russell

Ryberg            Saleeby          Short

Smith, J.V.       Stilwell         Waldrep

Washington        Wilson

TOTAL--29

The Senate refused to table the amendment. The question then was the adoption of Amendment No. 18, as perfected.

Amendment No. 18, as perfected, was adopted.

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