South Carolina General Assembly
113th Session, 1999-2000
Journal of the Senate


Printed Page 1870 . . . . . Thursday, March 30, 2000

Thursday, March 30, 2000
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

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

Beloved, hear the Psalmist's prayer in the paraphrase, "The Living Bible," Psalm 26 (1-3):

"Dismiss all the charges against me, Lord, for I have tried to

keep Your laws and have trusted You without wavering.

Cross-examine me, O Lord, and see that this is so; test my

motives and affections too."
Let us pray.

Dear Lord, we have promises to many people! Help us to keep those promises... if we can!

Daily, transform us from the kind of people the world would make of us into the kind of people that can truly be called the "people of God."

As we return to our homes and loved ones, grant to us release and renewal from the stresses of service beneath this lofty dome.
Amen.

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

Doctor of the Day

Senator PATTERSON introduced Dr. Gerald Wilson of Hartsville, S.C., Doctor of the Day.

RECALLED AND COMMITTED

H. 4470 (Word version) -- Reps. Cato, Battle, J. Brown, Cobb-Hunter, Harrison, Kirsh, Knotts, Leach, McCraw, Meacham-Richardson, Miller, Riser, Rodgers, Sandifer, R. Smith, Taylor, Walker, Bowers, Edge, Koon, McKay, Tripp, T. Brown and Huggins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-5-170 SO AS TO PROVIDE THAT THE KNOWING ACCEPTANCE OF PAYMENT FOR AN INSURANCE REFERRAL FROM A SERVICE PROVIDER, THE KNOWING PAYMENT BY A SERVICE PROVIDER FOR A REFERRAL, AND THE REGULAR


Printed Page 1871 . . . . . Thursday, March 30, 2000

PRACTICE BY A SERVICE PROVIDER OF WAIVING OR REBATING ALL OR PART OF A CLAIMANT'S CASUALTY OR PROPERTY INSURANCE DEDUCTIBLE ARE UNFAIR TRADE PRACTICES; AND TO AMEND SECTION 39-5-40, RELATING TO THE PRACTICES TO WHICH THIS ARTICLE DOES NOT APPLY, SO AS TO PROVIDE AN EXCEPTION THAT THE PRACTICES DESCRIBED IN SECTION 39-5-170 MAY BE REGULATED BY CHAPTER 57 OF TITLE 38 AND THIS ARTICLE.

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

There was no objection.

Senator HOLLAND asked unanimous consent to commit the Bill to the Committee on Banking and Insurance.

There was no objection.

The Bill was recalled and committed to the Committee on Banking and Insurance.

RECALLED AND ADOPTED

H. 4756 (Word version) -- Reps. Govan, Cobb-Hunter, Ott, Sharpe and Stuart: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF UNITED STATES HIGHWAY 601 FROM ITS INTERSECTION WITH INTERSTATE HIGHWAY 26 TO ITS INTERSECTION WITH SOUTH CAROLINA HIGHWAY 33 IN ORANGEBURG COUNTY IN HONOR OF DR. M. MACEO NANCE, JR., PRESIDENT EMERITUS OF SOUTH CAROLINA STATE UNIVERSITY, AND TO PLACE APPROPRIATE MARKERS OR SIGNS ON THE HIGHWAY REFLECTING THIS DESIGNATION.

Senator HUTTO asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.

There was no objection.

Senator HUTTO asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

Senator HUTTO asked unanimous consent to adopt the Concurrent Resolution.

There was no objection.


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

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1296 (Word version) -- Senators Bauer and Wilson: A BILL TO PROVIDE THAT THE PUBLIC SERVICE COMMISSION SHALL REQUIRE COUNTYWIDE TOLL FREE CALLING TO BE PROVIDED BY ALL TELEPHONE UTILITIES OPERATING WITHIN LEXINGTON COUNTY BY JULY 1, 2000, AND PROVIDE FOR RELATED MATTERS.
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Read the first time and referred to the Committee on Judiciary.

S. 1297 (Word version) -- Senators Short, Peeler, J. Verne Smith, Leventis, Drummond, Anderson, Moore, Rankin, Giese, Waldrep and Saleeby: A BILL TO AMEND SECTIONS 40-15-80 AND 40-15-85, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DENTISTS, DENTAL HYGIENISTS, AND DENTAL TECHNICIANS, SO AS TO FURTHER DEFINE CERTAIN DENTAL PROCEDURES AND CONDITIONS UNDER WHICH THEY MAY BE ADMINISTERED.
l:\s-res\lhs\016dent.whb.doc

Senator SHORT spoke on the Bill.

Read the first time and, on motion of Senator SHORT, with unanimous consent, ordered placed on the Calendar without reference.

H. 3993 (Word version) -- Reps. Rodgers, Clyburn, Gilham, Gourdine, Hinson, Kelley, Kennedy and Lloyd: A BILL TO AMEND SECTION 58-25-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ACTIVATION AND DISSOLUTION OF A REGIONAL TRANSPORTATION AUTHORITY, SO AS TO DEFINE THE NEW SOURCES OF REVENUE THAT REQUIRE THE ACTIVATION OF AN AUTHORITY TO BE APPROVED BY THE QUALIFIED ELECTORS WITHIN A PROPOSED SERVICE AREA; TO AMEND SECTION 58-25-35, AS AMENDED, RELATING TO COMPOSITION OF A REGIONAL TRANSPORTATION AUTHORITY, SO AS TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 58-25-40, AS AMENDED, RELATING TO A


Printed Page 1873 . . . . . Thursday, March 30, 2000

REGIONAL TRANSPORTATION AUTHORITY'S BOARD MEMBERS, OFFICERS, AND STAFF SO AS TO DELETE A REFERENCE TO THE TERM "RESIDENT SENATOR", AND TO PROVIDE THAT IF A REGIONAL TRANSPORTATION AUTHORITY EXPANDS INTO A CONTIGUOUS COUNTY, OR MUNICIPALITY, THE EXPANSION MUST BE APPROVED BY THE QUALIFIED ELECTORS IN THOSE COUNTIES AND MUNICIPALITIES ONLY; TO AMEND SECTION 58-25-50 AS AMENDED, RELATING TO THE POWERS AND DUTIES OF A REGIONAL TRANSPORTATION AUTHORITY, SO AS TO DELETE THE PROVISION RELATING TO THE AUTHORITY'S PREPARATION OF A PLAN TO COORDINATE PUBLIC TRANSPORTATION SERVICES PROVIDED BY EACH ENTITY IN THE AUTHORITY'S SERVICE AREA; AND TO AMEND SECTION 58-25-60, AS AMENDED, RELATING TO SOURCES OF FUNDS TO OPERATE A REGIONAL TRANSPORTATION AUTHORITY, SO AS TO PROVIDE ADDITIONAL SOURCES OF FUNDS THAT MAY BE USED TO OPERATE A REGIONAL TRANSPORTATION AUTHORITY WHICH INCLUDE A SALES TAX ON GASOLINE, A TAX PER GALLON OF GASOLINE SOLD, AND A GENERAL SALES TAX, AND TO DELETE THE REQUIREMENT THAT A MAJORITY OF THE MEMBERS OF THE GENERAL ASSEMBLY REPRESENTING A REGIONAL TRANSPORTATION AUTHORITY'S SERVICE AREA MUST APPROVE AN INCREASE IN THE MOTOR VEHICLE REGISTRATION FEE.

Read the first time and referred to the Committee on Transportation.

H. 4453 (Word version) -- Reps. McGee and McKay: A BILL TO AMEND SECTION 56-3-3310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF PURPLE HEART LICENSE PLATES, SO AS TO REVISE THE NUMBER OF LICENSE PLATES THAT MAY BE ISSUED TO A PURPLE HEART RECIPIENT.

Read the first time and referred to the Committee on Transportation.

H. 4650 (Word version) -- Reps. Hamilton, W. McLeod, Easterday, Leach and F. Smith: A BILL TO AMEND SECTION 59-149-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ELIGIBILITY REQUIREMENTS FOR A LIFE SCHOLARSHIP, SO AS TO DELETE THE REQUIREMENT THAT STUDENTS MUST


Printed Page 1874 . . . . . Thursday, March 30, 2000

PASS ALL COURSES REQUIRED FOR A STAR DIPLOMA; TO REPEAL SECTIONS 59-39-105 AND 59-39-190 RELATING TO THE REQUIREMENTS AND THE PROMULGATION OF REGULATIONS FOR THE STAR DIPLOMA; AND TO REPEAL SECTION 59-103-175, RELATING TO INCLUDING STAR DIPLOMA INFORMATION IN HIGH SCHOOL AND HIGHER EDUCATION AWARENESS COUNSELING, ALL SO AS TO REPEAL THE STAR DIPLOMA PROGRAM.

Read the first time and referred to the Committee on Education.

H. 4751 (Word version) -- Reps. Fleming, Allison, Altman, Cooper, Davenport, Keegan, Kelley, Koon, Lanford, Martin and Riser: A BILL TO AMEND SECTION 7-13-75, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO POLITICAL ACTIVITY OF MEMBERS OF LOCAL ELECTION COMMISSIONS, SO AS TO CLARIFY THAT A PERSON MAY PARTICIPATE ONLY IN THE POLITICAL MANAGEMENT OR IN A POLITICAL CAMPAIGN OVER WHICH THE PERSON HAS NO JURISDICTION.

Read the first time and referred to the Committee on Judiciary.

H. 4766 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BOARD OF CHIROPRACTIC EXAMINERS, RELATING TO ADOPTION OF PART IV OF THE NATIONAL BOARD OF CHIROPRACTIC EXAMINERS PRACTICAL EXAMINATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2463, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Read the first time and referred to the Committee on Medical Affairs.

H. 4770 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO SUMMER PROGRAMS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2424, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Read the first time and referred to the Committee on Education.


Printed Page 1875 . . . . . Thursday, March 30, 2000

H. 4816 (Word version) -- Reps. Meacham-Richardson, Delleney, McCraw and Simrill: A BILL TO ESTABLISH ELECTION DISTRICTS FROM WHICH CERTAIN MEMBERS OF THE BOARD OF TRUSTEES OF ROCK HILL SCHOOL DISTRICT NO. 3 OF YORK COUNTY MUST RESIDE, PROVIDE THAT ALL SEVEN MEMBERS OF THE BOARD MUST BE ELECTED AT LARGE FROM THE DISTRICT, PROVIDE A SCHEDULE FOR ELECTION OF TRUSTEES, THE METHOD OF DETERMINING CANDIDATES ELECTED, AND PROVIDE FOR FILING VACANCIES.

Read the first time and ordered placed on the Local and Uncontested Calendar without reference.

H. 4817 (Word version) -- Reps. Meacham-Richardson, Delleney, Kirsh, McCraw, Moody-Lawrence and Simrill: A BILL TO ESTABLISH FIVE SINGLE MEMBER ELECTION DISTRICTS FROM WHICH CERTAIN MEMBERS OF YORK SCHOOL DISTRICT NO. 1 OF YORK COUNTY MUST RESIDE AND BE ELECTED BY THE QUALIFIED ELECTORS OF EACH DISTRICT, PROVIDE THAT TWO MEMBERS MUST BE ELECTED AT-LARGE FROM THE SCHOOL DISTRICT, PROVIDE A SCHEDULE FOR THE ELECTION OF TRUSTEES, THE METHOD OF DETERMINING CANDIDATES, AND A PROCEDURE FOR FILLING VACANCIES.

Read the first time and ordered placed on the Local and Uncontested Calendar without reference.

H. 4833 (Word version) -- Rep. Hawkins: A CONCURRENT RESOLUTION TO HONOR THE MEN AND WOMEN PROUDLY SERVING IN THE SOUTH CAROLINA NATIONAL GUARD AND DECLARE APRIL 12, 2000, AS "SOUTH CAROLINA NATIONAL GUARD APPRECIATION DAY" IN APPRECIATION FOR THEIR SERVICE AND THEIR SACRIFICES.

The Concurrent Resolution was introduced and referred to the Committee on Invitations.

H. 4834 (Word version) -- Reps. Robinson, Rice, Trotter and Webb: A CONCURRENT RESOLUTION TO CONGRATULATE ALAN WARNER OF PICKENS UPON HIS RECEIPT OF THE "SPECIAL RECOGNITION FOR OUTSTANDING VOLUNTEERISM AWARD" PRESENTED BY THE SOUTH CAROLINA FEDERATION OF MUSEUMS.


Printed Page 1876 . . . . . Thursday, March 30, 2000

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

H. 4835 (Word version) -- Reps. Robinson, Rice, Trotter and Webb: A CONCURRENT RESOLUTION TO CONGRATULATE THE PICKENS COUNTY MUSEUM OF ART AND HISTORY UPON ITS RECEIPT OF THE "HISTORIC PRESERVATION HONOR AWARD" PRESENTED BY THE PALMETTO TRUST FOR HISTORIC PRESERVATION.

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

H. 4840 (Word version) -- Reps. Sharpe, Clyburn, Perry and R. Smith: A CONCURRENT RESOLUTION SALUTING AND THANKING DR. ROBERT E. ALEXANDER FOR HIS OUTSTANDING AND DEDICATED SERVICE AS CHANCELLOR OF THE UNIVERSITY OF SOUTH CAROLINA AIKEN, AND WISHING HIM SUCCESS AND HAPPINESS FOLLOWING HIS RETIREMENT.

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

H. 4842 (Word version) -- Rep. Bales: A CONCURRENT RESOLUTION RECOGNIZING MR. DANNY YOUNG OF RICHLAND COUNTY AND EXTENDING THE DEEPEST APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MR. YOUNG FOR HIS OUTSTANDING CONTRIBUTIONS TO THE EAST COLUMBIA DIXIE YOUTH BASEBALL AND SOFTBALL LEAGUE.

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

REPORTS OF STANDING COMMITTEES
Invitations Accepted

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

An invitation from the SC AVIATION ASSOCIATION to attend a buffet luncheon at the Capital City Club on Tuesday, April 4, 2000, upon adjournment and lasting until 2:00 P.M.


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Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

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

An invitation from the SC HORSEMEN'S COUNCIL to attend a reception at the Seibels House and Gardens on Tuesday, April 4, 2000, from 6:00 until 8:00 P.M.

Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

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

An invitation from the SC AARP LEGISLATIVE COMMITTEE to attend a luncheon in Room 221 Blatt Bldg. on Wednesday, April 5, 2000, upon adjournment and lasting until 1:30 P.M.


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Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

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

An invitation from SC STATE UNIVERSITY to attend a reception at Seawell's Restaurant on Wednesday, April 5, 2000, from 6:00 until 8:00 P.M.

Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

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

An invitation from the SC PETROLEUM COUNCIL, ASSOCIATION OF CONVENIENCE STORES, PANTRY, and BP AMOCO to attend a reception at the University House on Wednesday, April 5, 2000, from 8:00 until 9:00 P.M.


Printed Page 1879 . . . . . Thursday, March 30, 2000

Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

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

An invitation from the SC SCHOOL FOOD SERVICE ASSOCIATION to attend a breakfast drop-in, located in Room 221 of the Blatt Bldg. on Thursday, April 6, 2000, from 8:30 until 10:00 A.M.

Poll of the Invitations Committee
Polled 9; Ayes 9; Nays 0; Not Voting 1

AYES

Courson                   Wilson                    Matthews
Patterson                 O'Dell                    Passailaigue
McGill                    Washington                Reese

TOTAL--9

NAYS

TOTAL--0

Senator McCONNELL from the Committee on Medical Affairs submitted a favorable with amendment report on:

S. 780 (Word version) -- Senator McConnell: A BILL TO AMEND CHAPTER 7, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HOSPITALS, TUBERCULOSIS CAMPS, AND HEALTH SERVICES DISTRICTS BY ADDING ARTICLE 27 SO AS TO REQUIRE THE ATTORNEY GENERAL TO REVIEW


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TRANSFERS OF ASSETS OR CONTROL OF ASSETS BY NONPROFIT HEALTH CARE ENTITIES TO FOR-PROFIT ENTITIES, AND TO REQUIRE THAT SUCH ENTITIES NOTIFY THE ATTORNEY GENERAL NINETY DAYS PRIOR TO A CLOSING IN WHICH TRANSFERS OF ASSETS OR CONTROL OF ASSETS BETWEEN NONPROFIT HEALTH CARE ENTITIES IS BEING PROPOSED.

Ordered for consideration tomorrow.

NONCONCURRENCE

S. 1034 (Word version) -- Senators Leatherman, Glover, Elliott, Land, McGill and Saleeby: A BILL TO AMEND SECTION 7-7-260, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN FLORENCE COUNTY, SO AS TO COMBINE THE BACK SWAMP AND QUINBY PRECINCTS AND REDESIGNATE A MAP NUMBER ON WHICH THE LINES OF THESE PRECINCTS ARE DELINEATED.

The House returned the Bill with amendments.

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

HOUSE CONCURRENCE

S. 1283 (Word version) -- Senators Wilson, Ryberg, Setzler, Bauer and Peeler: A CONCURRENT RESOLUTION RECOGNIZING THE LIFE AND DEATH OF JOSEPH DREW SMITH, AND HIS LASTING CONTRIBUTION TO BOATING SAFETY IN THE STATE OF SOUTH CAROLINA, BY NAMING THE NEW LAKE MURRAY MARINE PATROL STATION ON BUNDRICK ISLAND IN LEXINGTON COUNTY IN HIS HONOR.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 1294 (Word version) -- Senators Jackson and Land: A CONCURRENT RESOLUTION CONGRATULATING CALHOUN COUNTY HIGH


Printed Page 1881 . . . . . Thursday, March 30, 2000

SCHOOL SAINTS ON WINNING THE 2000 CLASS AA STATE CHAMPIONSHIP IN BASKETBALL.

Returned with concurrence.

Received as information.

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

ORDERED ENROLLED FOR RATIFICATION

The following Bill was read the third time and having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:

H. 4665 (Word version) -- Rep. Klauber: A BILL TO PROVIDE THAT STUDENTS WHO RESIDE IN AND ATTEND A PUBLIC SCHOOL IN GREENWOOD COUNTY WHO PARTICIPATE IN INTERSCHOLASTIC SOCCER OR AS A MEMBER OF A SCHOOL SOCCER SQUAD MAY PARTICIPATE IN ORGANIZED SOCCER WHICH IS INDEPENDENT OF THE CONTROL OF THE SCHOOL UNDER CERTAIN CONDITIONS, AND TO PROVIDE THAT A SCHOOL OR STUDENT IN THOSE SCHOOLS IS NOT INELIGIBLE FOR PARTICIPATION IN INTERSCHOLASTIC SOCCER BECAUSE OF THE PARTICIPATION OF THE STUDENT OF THE SCHOOL AS A MEMBER OF AN ORGANIZED SOCCER TEAM INDEPENDENT OF THE SCHOOL'S CONTROL.

THIRD READING BILL

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 1130 (Word version) -- Senator Leventis: A BILL TO AMEND ARTICLE 1, CHAPTER 3 OF TITLE 47, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION BY COUNTIES OF DOGS AND OTHER DOMESTIC PETS, SO AS TO, AMONG OTHER THINGS, MAKE THE ARTICLE SPECIFICALLY APPLICABLE TO CATS, PROVIDE FOR IMPOUNDING AND ADOPTION OF ANIMALS, INCREASE THE MAXIMUM PENALTY FOR VIOLATING SECTION 47-3-50, PROVIDE FOR THE PROMULGATION OF CERTAIN REGULATIONS BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, PROVIDE THAT WHENEVER AN ANIMAL


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SHELTER ACCEPTS OR COMES INTO POSSESSION OF A DOG OR CAT, THE SHELTER IMMEDIATELY AND THOROUGHLY MUST SCAN THE ANIMAL FOR ANY IMPLANTED MICROCHIP, OR SIMILAR DEVICE, WHICH PROVIDES EVIDENCE OF OWNERSHIP AND, UPON FINDING THIS DEVICE, IMMEDIATELY MAKE A GOOD FAITH EFFORT TO CONTACT THE IDENTIFIED OWNER, AND PROVIDE FOR RELATED MATTERS; AND TO AMEND ARTICLE 7, CHAPTER 3 OF TITLE 47, RELATING TO ANIMAL EUTHANASIA, SO AS TO AMONG OTHER THINGS, REVISE THE PROVISIONS OF LAW REGARDING THE ALLOWABLE METHODS OF EUTHANASIA AND AUTHORIZE A CERTIFIED EMPLOYEE OF THE DEPARTMENT OF NATURAL RESOURCES TO ADMINISTER EUTHANASIA, INCREASE THE MAXIMUM PENALTIES FOR VIOLATIONS OF THIS ARTICLE, AND AUTHORIZE THE ATTORNEY GENERAL TO BRING AN ACTION TO ENJOIN A VIOLATION OF THIS ARTICLE.

AMENDED, READ THE THIRD TIME, SENT TO THE HOUSE

S. 1242 (Word version) -- Agriculture and Natural Resources Committee: A BILL TO AMEND TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGRICULTURE BY ADDING CHAPTER 40 SO AS TO ESTABLISH THE "SOUTH CAROLINA GRAIN DEALERS GUARANTY FUND" INTO WHICH ASSESSMENTS ON FEED GRAINS OR OIL SEEDS MUST BE PAID FOR THE PURPOSE OF REIMBURSING GRAIN DEALERS FOR LOSSES INCURRED AS A RESULT OF THE BANKRUPTCY OF A SPECIFIED DEBTOR AND TO CONTINUE THE FUND THEREAFTER FOR THE BENEFIT OF GRAIN DEALERS WHO SUFFER LOSSES AGAINST OTHER DEBTORS FROM BANKRUPTCY, EMBEZZLEMENT, OR FRAUD, TO PROVIDE FOR THE MANNER IN WHICH AND PROCEDURES UNDER WHICH THESE REIMBURSEMENTS MUST BE PAID INCLUDING A PROVISION THAT THE INSURANCE RESERVE FUND IS AUTHORIZED TO LOAN MONIES TO PROVIDE FUNDING TO PAY CERTAIN CLAIMS; TO CHANGE THE NAME OF SOUTH CAROLINA DEALERS AND HANDLERS GUARANTY FUND TO THE SOUTH CAROLINA GRAIN PRODUCERS GUARANTY FUND; AND TO AMEND SECTION 46-41-200, RELATING TO THE SOUTH CAROLINA DEALERS


Printed Page 1883 . . . . . Thursday, March 30, 2000

AND HANDLERS GUARANTY FUND, SO AS TO CHANGE ITS NAME ACCORDINGLY.

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

Senator LEATHERMAN proposed the following amendment (BBM\9454HTC00), which was adopted:

Amend the bill, as and if amended, in Section 46-40-50(A), as contained in SECTION 1, page 4, line 6, by inserting after the period
/ The participants in the loan shall execute a document approved by the State Treasurer jointly and severably guaranteeing the loan. /

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

There being no further amendments, the Bill was read the third time and ordered sent to the House of Representatives.

AMENDED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 894 (Word version) -- Senator McGill: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEALTH, BY ADDING CHAPTER 128, SO AS TO ESTABLISH THE SOUTH CAROLINA YOUTH SMOKING PREVENTION COMMISSION AND FUND, TO PROVIDE FOR ITS MEMBERSHIP, DUTIES, THE DISTRIBUTION OF MONIES RECEIVED BY THE COMMISSION, THE DEVELOPMENT OF A STATE PLAN FOR YOUTH SMOKING PREVENTION, AND THE TYPES OF QUALIFIED PROGRAMS ELIGIBLE FOR GRANTS FROM THE FUND; AND TO AMEND SECTION 1-30-110, RELATING TO VARIOUS ENTITIES INCORPORATED INTO THE OFFICE OF THE GOVERNOR, SO AS TO ADD THE YOUTH SMOKING PREVENTION COMMISSION IN THAT OFFICE.

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

The Medical Affairs Committee proposed the following amendment (894M001.TLM), which was adopted:

Amend the bill, as and if amended, page 2, line 31, by striking


Printed Page 1884 . . . . . Thursday, March 30, 2000

/ General Assembly / and inserting in lieu thereof the following:   /   Senate   /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the committee amendment.

The committee amendment was adopted.

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

SECOND READING BILLS

The following Bills and Joint Resolution, having been read the second time, were ordered placed on the third reading Calendar:

S. 1007 (Word version) -- Senators Holland and Giese: A BILL TO AMEND SECTION 16-3-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEATH PENALTY, SO AS TO MAKE THE OFFENSE OF AGGRAVATED STALKING AN AGGRAVATING CIRCUMSTANCE TO BE CONSIDERED BY THE COURT OR THE JURY IN DETERMINING IF THE DEATH PENALTY SHOULD BE IMPOSED.

S. 1250 (Word version) -- Senators Grooms, Matthews and Washington: A BILL TO AMEND ARTICLE 9, CHAPTER 1, TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-708 SO AS TO DESIGNATE THE SOUTH CAROLINA ARTISANS CENTER IN WALTERBORO AS THE OFFICIAL STATE FOLK ART AND CRAFTS CENTER.

Senator MOORE spoke on the Bill.

H. 3266 (Word version) -- Reps. D. Smith, J. Brown, W. McLeod and Miller: A BILL TO AMEND CHAPTER 56, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA HAZARDOUS WASTE MANAGEMENT ACT BY ADDING ARTICLE 7, SO AS TO ESTABLISH A VOLUNTARY CLEANUP PROGRAM AND TO PROVIDE FOR ITS PURPOSES AND THE PROCEDURES UNDER WHICH IT IS TO OPERATE.


Printed Page 1885 . . . . . Thursday, March 30, 2000

H. 4383 (Word version) -- Reps. Quinn, Gilham and Seithel: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-15-135 SO AS TO PROHIBIT PERSONS NOT LICENSED AS A DENTIST FROM PERFORMING CERTAIN ACTS RELATED TO DENTAL TREATMENTS IN THE OPERATION OF A DENTAL OFFICE OR PRACTICE AND TO PROVIDE PENALTIES, AND BY ADDING SECTION 40-15-83, SO AS TO REQUIRE DENTISTS TO MAINTAIN PATIENT RECORDS FOR AT LEAST FIVE YEARS AFTER WHICH THEY MAY BE DESTROYED.

Senator MOORE spoke on the Bill.

S. 1290 (Word version) -- Senator Hayes: A JOINT RESOLUTION TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD EFFECTIVE JULY 1, 2000, TO TRANSFER OWNERSHIP OF A SURPLUS NATIONAL GUARD ARMORY IN YORK, SOUTH CAROLINA, TO YORK COUNTY.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME

H. 3889 (Word version) -- Rep. Edge: A BILL TO AMEND CHAPTER 32, TITLE 27, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO VACATION TIMESHARING PLANS, BY ADDING ARTICLE 3, SO AS TO PROVIDE PROCEDURES FOR THE FORECLOSURE OF LIENS ON TIMESHARE ESTATES; AND TO DESIGNATE SECTIONS 27-32-10 THROUGH 27-32-250 AS ARTICLE 1, CHAPTER 32, TITLE 27, ENTITLED "VACATION TIME SHARING PLANS".

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

The Committee on Judiciary proposed the following amendment (JUD3889.003), which was adopted:

Amend the bill, as and if amended, beginning on page 1, line 24, by striking SECTION 1 in its entirety and inserting therein the following:

/   SECTION   1.   Chapter 32, Title 27 of the 1976 Code is amended by adding:


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  "Article 3

Timeshare Lien Foreclosures

Section 27-32-300.   This article may be cited as the 'Timeshare Lien Foreclosure Act'.

Section 27-32-305.   The purposes of this article are to:

(1)   recognize that timeshare estates are interests in real property used for vacation experience rather than for homestead purposes and that there are numerous timeshare estates in South Carolina;

(2)   recognize that the economic health and efficient operation of the vacation ownership industry are in part dependent upon the availability of an efficient and economical process for foreclosure;

(3)   recognize the need to assist vacation ownership resort owners' associations by simplifying and expediting the process of foreclosure of assessment liens and mortgage liens;

(4)   reduce court congestion and cost to taxpayers by establishing streamlined procedures for foreclosure of assessment liens and mortgage liens against timeshare estates;

(5)   establish those streamlined procedures by giving statutory recognition to the right of persons to privately contract for a power of sale as their remedy in lieu of a judicial foreclosure of liens on timeshare estates while specifically limiting the application of such nonjudicial foreclosure procedures to timeshare estates only.

Section 27-32-310.   As used in this article:

(1)   'Assessment lien' means:

(a)   a lien for delinquent assessments as to timeshare estates; or

(b)   a lien for unpaid taxes and special assessments.

(2)   'Claim of lien' means a claim of a recorded assessment lien.

(3)   'Junior interest holder' means any person who has a lien or interest of record prior to the recording of the notice of sale against a timeshare estate in the county in which the timeshare estate is located which is inferior to the mortgage lien or assessment lien being foreclosed under this article.

(4)   'Lienholder' means a holder of an assessment lien or a holder of a mortgage lien, as applicable.

(5)   'Mortgage lien' means a security interest in a timeshare estate created by a mortgage encumbering the timeshare estate.

(6)   'Mortgagee' means a person holding a mortgage lien.

(7)   'Mortgagor' means a person granting a mortgage lien.

(8)   'Notice address' means:


Printed Page 1887 . . . . . Thursday, March 30, 2000

(a)   as to an assessment lien, the address of the current obligor of a timeshare estate as reflected by the books and records of the timeshare plan.

(b)   as to a mortgage lien:

(i)     the address of the mortgagor set forth in the mortgage, the promissory note, or a separate document executed by the mortgagor at the time the mortgage lien was created, or the most current address of the mortgagor according to the records of the mortgagee; and

(ii)   the address of the current obligor of the timeshare estate as reflected by the books and records of the timeshare plan.

(c)   as to a 'junior interest holder', the address set forth in the recorded instrument creating the junior interest or lien or any recorded supplement thereto changing the address and written notification by the 'junior interest holder' to the foreclosing lienholder of a change in address.

(9)   'Obligor' means either the mortgagor, the person obligated under a claim of lien, or the record owner of the timeshare estate as the context requires.

(10)   'Power of sale' means:

(a)   an express written agreement in a mortgage identifying the mortgagor, mortgagee, and the trustee; or

(b)   an express written provision in a timeshare instrument identifying the managing entity and the trustee which authorizes the trustee to sell the timeshare estate without judicial action at a foreclosure sale regularly conducted and duly held in accordance with this article.

(11)   'Timeshare instrument' means the document or documents which provide the legal framework for the establishment of the method of interval ownership of the timeshare estate and is or are recorded at the office of Register of Deeds in the county in which the timeshare estate is located.

(12)   'Trustee' means any person entitled to exercise a power of sale.

Section 27-32-315.   (A)   A trustee may be any:

(1)   attorney who is an active licensed member of the South Carolina Bar in good standing or a law firm whose members include such an attorney; or

(2)   title insurance company, title insurance agent, or title insurance agency licensed to do business in this State.

(B)   An attorney who is a trustee under subsection (A)(1) may represent the lienholder foreclosing under this article in addition to performing the duties of a trustee under a power of sale.


Printed Page 1888 . . . . . Thursday, March 30, 2000

(C)   Successor trustees may be appointed by a lienholder at any time by recording a notice of substitution of trustee in the public records for the county in which the timeshare estate is located. From the time the substitution of trustee is recorded, the successor trustee succeeds to all the powers, duties, and authority of the original trustee and successor trustees, if any.

(D)   The recorded notice of substitution of trustee must identify:

(1)   the mortgage or timeshare instrument;

(2)   the names of the original parties to the mortgage or timeshare instrument;

(3)   the date of recordation of the mortgage or timeshare instrument;

(4)   the official record book and page number where the mortgage or timeshare instrument is recorded;

(5)   the name of the successor trustee; and

(6)   the name of the trustee being replaced. The notice must recite acceptance by the successor trustee of his or her duties and must be dated, signed, and acknowledged by the lienholder and the successor trustee. A notice of substitution of trustee is valid for purposes of this article when made and recorded in accordance with this section. A resignation of the original or prior trustee is not required.

(E)   The lienholder may not serve as the trustee.

Section 27-32-320.   (A)   In order to foreclose a mortgage lien pursuant to this article, the following conditions must have been met:

(1)   The mortgage recorded in the public records of the county in which the timeshare estate being foreclosed is located must contain the following statement in conspicuous type:

'There is a mortgage lien against your timeshare estate which must be repaid in accordance with this mortgage. Your failure to make timely payments required by this mortgage may result in foreclosure of the mortgage lien. The mortgagor acknowledges that, if the obligations established by this mortgage are not satisfied and the mortgagor does not cure the default in accordance with the terms hereof, the mortgage lien created by this mortgage may be foreclosed through a nonjudicial procedure in accordance with Article 3 of Chapter 32 of Title 27 of the Code of Laws of South Carolina. The mortgagor understands that he or she will not be subject to a deficiency judgment or personal liability for the mortgage lien resulting from a nonjudicial foreclosure procedure even if the sale of his or her timeshare estate resulting from the foreclosure for the mortgage lien is insufficient to satisfy the amount of the mortgage lien. The mortgagor further acknowledges that the trustee


Printed Page 1889 . . . . . Thursday, March 30, 2000

will send the notice required by this procedure to the mortgagor's notice address, and the mortgagor agrees to inform the mortgagee of any change in the mortgagor's address. The mortgagor consents to notification by certified or registered mail and agrees that any person at the mortgagor's notice address may acknowledge receipt of any correspondence received in connection with this procedure. The mortgagor understands that the trustee may notify mortgagor of the commencement of the procedure by publication if delivery of the notice is not accepted at the notice address. If the mortgagor sends the trustee a written objection to the nonjudicial procedure stating the reasons for such objection, the matter will be transferred to a judicial foreclosure procedure, but the mortgagor understands and agrees that in the judicial foreclosure procedure, he or she may be subject to a deficiency judgment or personal liability for the mortgage lien if the sale of his or her timeshare estate resulting from the foreclosure is insufficient to satisfy the amount of the mortgage lien. The mortgagor further understands and agrees that in the judicial foreclosure procedure if the court finds that there is a complete absence of a justifiable issue of either law or fact raised by the objection or defense, the mortgagor may be personally liable for the costs and attorney's fees incurred by the mortgagee in the judicial foreclosure.'

(2)   The mortgage, promissory note, or a separate instrument signed by the mortgagor must contain the mortgagor's notice address.

(B)   In order to foreclose an assessment lien pursuant to this article, the following conditions must have been met:

(1)   The timeshare instrument recorded in the public records of the county in which the timeshare estate being foreclosed is located must contain the following statement in conspicuous type:

'Each obligor understands that, if the obligations owed for assessments of the association and for ad valorem taxes and special assessments are not satisfied and the obligor does not timely cure the default, the assessment lien may be foreclosed through a nonjudicial procedure in accordance with Article 3 of Chapter 32 of Title 27 of the Code of Laws of South Carolina. The obligor understands that he or she will not be subject to a deficiency judgment or personal liability for the assessment lien resulting from a nonjudicial foreclosure procedure, even if the sale of his or her timeshare estate resulting from the foreclosure for the assessment lien is insufficient to offset the amount of the assessment lien. The obligor acknowledges the trustee will send the notice required by this procedure to the obligor's notice address, and the obligor agrees to inform the managing entity of any change in


Printed Page 1890 . . . . . Thursday, March 30, 2000

the obligor's address. The obligor consents to notification by certified or registered mail and agrees that any person at the obligor's notice address may acknowledge receipt of any correspondence received in connection with this procedure. The obligor understands that the trustee may notify the obligor of the commencement of the procedure by publication if delivery of the notice is not accepted at the notice address. If the obligor sends the trustee a written objection to the nonjudicial procedure stating the reasons for the objection, the matter will be transferred to a judicial foreclosure procedure, but the obligor understands and agrees that in the judicial foreclosure procedure, the obligor may be subject to a deficiency judgment or personal liability for the assessment lien if the sale of his or her timeshare estate resulting from the foreclosure of the assessment lien is insufficient to offset the amount of the assessment lien. The obligor further understands and agrees that in the judicial foreclosure procedure for the assessment lien, if the court finds that there is a complete absence of a justifiable issue of either law or fact raised by the obligor's objection or defense, the obligor may be personally liable for the costs and attorney's fees incurred by the assessment lienholder in the judicial foreclosure.'

(2)   The public offering statement text must contain the following statement in conspicuous type:

'There is a lien or lien right against each timeshare estate to secure the payment of assessments or other amounts due from obligors to the association in accordance with the operating budget and special assessments and to secure payment of assessments for ad valorem real estate taxes. A purchaser's failure to make the required payments may result in foreclosure of an assessment lien. Assessment liens may be foreclosed in accordance with judicial procedures established by law or with a nonjudicial procedure established by Article 3 of Chapter 32 of Title 27 of the Code of Laws of South Carolina. By purchasing a timeshare estate in the timeshare plan described in this public offering statement, a purchaser acknowledges and agrees that any assessment lien against the timeshare estate owned by a purchaser may be foreclosed by a nonjudicial procedure and agrees that the notice of a foreclosure by a nonjudicial procedure may be made by the use of certified or registered mail. The purchaser is required to provide an address for the delivery of all notices required by law and to inform the managing entity of any changes in the purchaser's notice address.'

(3)   As to any timeshare instrument recorded prior to the effective date of this article, an amendment to the timeshare instrument must include the notice required by item (1) of this subsection and upon


Printed Page 1891 . . . . . Thursday, March 30, 2000

approval of the amendment to the timeshare instrument, a copy of the amendment must be sent by the managing entity to each timeshare estate obligor. The amendment must be approved by the association by the vote required for amendments to the timeshare instrument as provided in the timeshare instrument or, if there is no such provision, on the affirmative vote of fifteen percent of the obligors of the association. If an amendment is adopted, the notice required under item (2) of this subsection is not required to be given to persons who are obligors on the date the amendment to the timeshare instrument is adopted.

(C)   (1)   This subsection applies only to mortgage lienholders of record who possess non-performing mortgages in timeshare estates originating on or before December 31, 1990, and who have no successors in interest of record or whose successor in interest in the then existing mortgages was the Resolution Trust Corporation.

(2)   Mortgage lienholders as defined in item (1) of this subsection are considered to have received notice of the intent to sell the timeshare estate pursuant to this article when the notice of the intent to sell is sent certified mail, return receipt requested, to the last known address of the corporate offices of the mortgage lienholder of record in the county Register of Deeds office where the timeshare estate is located. The notice shall provide a complete property description of the timeshare estate as well as the date and time for the sale. If the date and time of the sale is not available at the time that the notice of intent to sell is mailed, a second notice must be sent providing that information. In any event, the mortgage lienholder must be provided at least thirty days' notice of the date and time of the sale.

(3)   At the conclusion of the foreclosure sale, the issuance of the trustee's deed is considered to terminate all other interests, and the successful bidder receives clear and unencumbered title to the timeshare estate. In addition, the trustee must prepare the necessary release and satisfaction and file it with the trustee's deed at the appropriate Register of Deeds office.

Section 27-32-325.   A trustee may exercise a power of sale provided that:

(1)   the requirements of Section 27-32-320 have been met and any substitution of trustee is filed for record in the public records of the county in which the timeshare estate is located;

(2)   there is a default by the obligor under a provision of the mortgage, the timeshare instrument, or applicable law which authorizes foreclosure in the event of default;


Printed Page 1892 . . . . . Thursday, March 30, 2000

(3)   there is no lis pendens recorded and pending regarding a judicial action for foreclosure of the mortgage lien or the assessment lien against the same timeshare estate, and the trustee has not been served notice of the filing of any action to enjoin the power of sale procedure;

(4)   if an assessment lien is to be foreclosed, a claim of lien, together with all amendments and assignments, if any, is recorded in the public records of the county in which the timeshare estate is located;

(5)   the trustee has sent written notice of default and intent to sell the timeshare estate to the obligor's and junior interest holder's notice addresses as required by Section 27-32-330 with the following statement in conspicuous type:

'If you fail to cure the default or take other appropriate action with regard to this matter within thirty calendar days after the date of this notice, you will risk losing your interest in this timeshare estate through a nonjudicial foreclosure procedure. However, under the nonjudicial procedure, you will not be subject to a deficiency judgment or personal liability for the lien being foreclosed even if the sale of your timeshare estate resulting from the nonjudicial foreclosure is insufficient to satisfy the amount of the lien being foreclosed. You may object to the sale of your timeshare estate through the nonjudicial foreclosure procedure and require foreclosure of your timeshare interest to proceed through the judicial process. An objection must be made in writing and received by the trustee before the end of the thirty-day time period. You must state the reason for your objection and include your address on the written objection. In a judicial foreclosure proceeding that results from your objection, you may be subject to a deficiency judgment and personal liability for the lien being foreclosed if the sale of your timeshare estate resulting from the judicial foreclosure is insufficient to satisfy the amount of the lien being foreclosed. Furthermore, you also may be subject to a personal money judgment for the costs and attorney's fees incurred by the lienholder in the judicial foreclosure proceeding if the court finds that there is a complete absence of a justifiable issue of either law or fact raised by your objections or defenses. You have the right to cure your default at any time before the sale of your timeshare estate by payment of all past due loan payments or assessments, accrued interest, late fees, taxes, and all fees and costs incurred by the lienholder and trustee, including attorney's fees and costs, in connection with the default';

(6)   the default being foreclosed, mortgage lien, assessment lien, or both, is clearly identified in the written notice required in item (5);


Printed Page 1893 . . . . . Thursday, March 30, 2000

(7)   a period of at least thirty calendar days has elapsed since the sending of the notice of default and intent to sell by the trustee without receipt by the trustee of a written objection to the sale.

(a)   If the trustee receives a written objection to the sale from the obligor setting forth a specific objection to a sale of the timeshare estate by the trustee, the trustee may not proceed under this article. When a trustee is prohibited from proceeding under this article, the lienholder is required to file a foreclosure action as provided in Article 7 of Chapter 3 of Title 29.

(b)   If the court determines that there was a complete absence of justifiable issues of either law or fact raised by the objection received by the trustee under this section or the defenses raised in the subsequent judicial foreclosure proceeding, the lienholder is entitled to entry of a separate personal judgment against the obligor for reasonable attorney's fees and costs incurred by the mortgagee or managing entity, as applicable, in the judicial foreclosure action;

(8)   the notice of sale required by Section 27-32-335 has been recorded in the public records of the county in which the timeshare estate is located.

Section 27-32-330.   (A)   In any foreclosure proceeding under this article, the trustee is required to notify the obligor including persons in this State, outside of this State, or in foreign countries by delivering a written notice of default and intent to sell under Section 27-32-325 to the notice addresses of the obligor and junior interest holders, as applicable, by certified or registered mail, as follows:

(1)   The trustee must place a copy of the notice of default and intent to sell in a sealed envelope with adequate postage addressed to the obligor, the record owner of the timeshare estate if different from the obligor, and any junior interest holders.

(2)   The envelope must be placed in the mail as certified or registered mail, return receipt requested.

(3)   Notice under this section is considered perfected upon the signing of the return receipt by a person at the notice address.

(B)   If the certified or registered mail sent pursuant to subsection (A) is returned with an endorsement or stamp showing 'refused', the trustee may send the notice by first class mail to the notice address. The failure to claim certified or registered mail is not refusal of notice within the meaning of this subsection. Notice pursuant to this subsection must be delivered as follows:

(1)   the trustee must place a copy of the notice of default and intent to sell in a sealed envelope with adequate postage addressed to


Printed Page 1894 . . . . . Thursday, March 30, 2000

the obligor, the record owner of the timeshare estate if different form the obligor, and any junior interest holders;

(2)   the envelope must be mailed by first class mail with the return address of the trustee on the envelope;

(3)   notice under this subsection is considered perfected upon the mailing of the envelope.

(C)   If notice is perfected under subsection (A), the trustee must file an affidavit setting forth the manner of notice as part of the certificate of compliance set forth in Section 27-32-340. The affidavit must state the nature of the process, the date on which the process was mailed by certified or registered mail, the name and address on the envelope containing the notice, the fact that the notice was mailed certified or registered mail, return receipt requested, the name of the person who signed the return receipt, if known, and the basis for that knowledge. The return receipt from the certified or registered mail must be attached to the affidavit.

(D)   If notice is perfected under subsection (B), the trustee must file an affidavit setting forth the manner of notice as part of the certificate of compliance set forth in Section 27-32-340. The affidavit must state the nature of the notice, the date on which the notice was mailed by certified or registered mail, the name and address on the envelope containing the notice, the fact that the notice was mailed certified or registered mail and was returned with the endorsement or stamped 'refused', the date, if known, on which the notice was 'refused', the date on which the notice was mailed by first class mail, the name and address on the envelope containing the notice that was mailed by first class mail, and the fact that the notice was mailed by first class mail with the return address of the trustee on the envelope. The return envelope from the attempt to mail notice by certified or registered mail and the return envelope, if any, from the attempt to mail the envelope by first class mail must be attached to the affidavit.

(E)   If the trustee is unable to perfect notice pursuant to either subsection (A) or subsection (B) because the copy of the notice mailed by certified or registered mail is returned by the United States Post Office as 'undeliverable' or for any other reason and if by a diligent search and inquiry the trustee cannot obtain a different address for the obligor for service required by subsection (A), the trustee may perfect notice by publication in a newspaper of general circulation in the county in which the timeshare estate is located. The notice must appear once a week for two successive weeks. A copy of the notice must be sent to the obligor by first class mail to the notice address of the obligor


Printed Page 1895 . . . . . Thursday, March 30, 2000

and to any other address of the obligor obtained through the trustee's diligent search and inquiry. If notice is perfected by publication under this subsection, the trustee must attach an affidavit of publication to the certificate of compliance set forth in Section 27-32-340 and must state that the notice was perfected by publication after diligent search and inquiry was made for the obligor's address, attaching the returned envelope with the notation from the United States Post Office. No other action of the trustee is necessary to perfect notice. If the diligent search and inquiry has produced an address different from the notice address, that address may be used in lieu of the notice address of the obligor for subsequent mailings required under this article.

Section 27-32-335.   (A)   The notice of sale must set forth:

(1)   the names and notice addresses of the obligor, the record owner of the timeshare estate if different from the obligor, and the junior interest holders;

(2)   the name and address of the trustee;

(3)   a description of the existence of a default under the mortgage, the timeshare instrument, or applicable law;

(4)   the official record book and page numbers where the mortgage or the claim of lien is recorded;

(5)   the legal description of the timeshare estate;

(6)   the amount secured by the mortgage or the assessment lien, whichever is being foreclosed, accrued interest, and late charges as of the date of notice of sale and including a per diem amount to account for further accrual of interest and late charges, advances for the payment of taxes, insurance, and maintenance of the timeshare estate, and cost of the sale including a title search fee and reasonable trustee's and attorney's fees and costs;

(7)   a statement of the trustee's intention to sell the timeshare estate to satisfy the obligation;

(8)   the date, time, and place of sale to be held after 9:00 a.m. but before 4:00 p.m. on a regular business day not less than thirty days after the recording of the notice of sale.

(B)   The right of the obligor to cure the default or the right of the junior interest holder to redeem its interest continues up to the date the trustee issues the certificate of sale in accordance with Section 27-32-345.

(C)   The trustee must send a copy of the notice of sale on the date it is submitted for recording, by first class mail, postage prepaid, to the notice addresses of the obligor, the owner, if different from the obligor,


Printed Page 1896 . . . . . Thursday, March 30, 2000

and the junior interest holders. In addition, a copy of the notice of sale must be sent by certified or registered mail to the lienholder.

(D)   Except as provided in this article, no notice is required to be given to any person claiming an interest subsequent to the recording of the notice of sale as set forth in this section. The recording of the notice of sale has the same force and effect as the filing of a lis pendens in a judicial proceeding.

(E)   The trustee must publish the notice of sale in a newspaper of general circulation in the county in which the sale is to be held once a week for two consecutive weeks prior to the date of the sale. The last publication must occur at least five days prior to the sale.

Section 27-32-340.   (A)   On the date the trustee conducts a sale, the trustee must execute a duly acknowledged certificate of compliance and must record the certificate of compliance in the public records of the county in which the timeshare estate is located.

(B)   In the certificate of compliance, the trustee must:

(1)   set forth the manner of delivery of the notice of default and intent to sell under Section 27-32-330 with the required affidavit, state that the notice contained the conspicuous language required by Section 27-32-325, state that the default was not cured and the timeshare estate was not redeemed, and state that the trustee did not receive any written objection within the period required under Section 27-32-325.

(2)   confirm that the notice of sale was published as required by subsection (D) of Section 27-32-335 and attach an affidavit of publication for the notice of sale.

(3)   confirm that the notice of sale was mailed pursuant to Section 27-32-335 together with a list of the parties to whom the notice of sale was mailed and the address used for each party.

(C)   In furtherance of the execution and recording of the certificate of compliance required pursuant to this section, the trustee is entitled to rely upon an affidavit or certification from the lienholder as to the facts and circumstances of default and failure to curb the default.

Section 27-32-345.   (A)   The sale of a timeshare estate by public auction must be held in the county in which the timeshare estate is located, on the date and at the time and place designated in the notice of sale.

(B)   Any person, including the lienholder, may bid at the sale. The trustee may bid for the lienholder but not for himself or herself. If the trustee designates another person to bid for the lienholder, the trustee may conduct the sale and act as the auctioneer.


Printed Page 1897 . . . . . Thursday, March 30, 2000

(C)   The person conducting the sale may postpone the sale from time to time. In such case, notice of postponement must be given by oral public proclamation thereof by the person conducting the sale at the time and place last appointed for the sale. The notice of sale regarding the postponed sale must be mailed and recorded pursuant to Section 27-32-330. The effective date of the initial notice of sale for purposes of Section 27-32-330 is not affected by a postponed sale.

(D)   The buyer must pay in cash or certified funds at the day of sale the price bid to the person acting as the auctioneer. The lienholder must receive a credit on its bid for the amount set forth in the notice of sale as required by Section 27-32-330.

(E)   Upon the issuance of the trustee's deed, the buyer at the sale is entitled to possession and use of the timeshare estate in accordance with the timeshare instrument. Foreclosure by an assessment lienholder does not affect the interest of the mortgage lienholder except as provided in Section 27-32-320(C). Any other person thereafter claiming possession of the timeshare estate is considered to be a tenant at sufferance, and the buyer is entitled, upon application to a court of competent jurisdiction, to a writ of possession.

(F)   On the date of the sale and upon receipt of the amount bid, the trustee must issue to the buyer a certificate of sale stating that a foreclosure conforming to the requirements of this article has occurred, including the time, place, and date of the sale; that the property was sold; the amount of the mortgage lien or the assessment lien, as applicable; the amount of the purchase price; and the name and address of the successful bidder. A copy of the certificate of sale must be mailed by certified or registered mail, postage prepaid, to all persons entitled to receive a notice of sale under Section 27-32-330.

Section 27-32-350.   (A)   A sale conducted pursuant to Section 27-32-345 forecloses and terminates all interest in the timeshare estate of all persons to whom notice is given under Sections 27-32-325 and 27-32-330 and of any other person claiming by, through, or under such person. A failure to give notice to any person entitled to notice does not affect the validity of the sale as to persons notified. A person entitled to notice but not given notice has the rights of a person not made a defendant in a judicial foreclosure. Any subsequent foreclosure required by failure to notify a party under Section 27-32-330 may be conducted under this article.

(B)   On the issuance of a certificate of sale pursuant to Section 27-32-345, all rights of redemption foreclosed pursuant to this article terminate.


Printed Page 1898 . . . . . Thursday, March 30, 2000

(C)   The lienholder has no right to any deficiency judgment against the obligor after a sale of the obligor's timeshare estate under this article as to the lien foreclosed.

(D)   The validity of the sale is presumed upon the recording of the certificate of compliance and issuance of the certificate of sale.

Section 27-32-355.   Ten days after a sale, absent the filing and service on the trustee of a judicial action to enjoin issuance of the trustee's deed to the timeshare estate or objecting to the sale on the grounds that the requirements of this article were not met by the trustee, the trustee must issue a trustee's deed to the purchaser at the sale. This deed must be recorded in the Register of Deeds office in the county in which the timeshare estate is located. In addition, the trustee must prepare the necessary release or satisfaction of any lien extinguished by the sale and file those documents and the trustee's deed at the appropriate Register of Deeds office.

Section 27-32-360.   (A)   The trustee must apply the proceeds of the sale as follows:

(1)   to the expenses of the sale, including compensation of the trustee and a reasonable fee by the person who conducted the sale, if applicable;

(2)   to the amount owed set forth in the notice as required by Section 27-32-335;

(3)   to all junior interest holders as their liens or interests may appear of record in the order of priority;

(4)   the surplus, if any, to an obligor entitled to such surplus.

(B)   In disposing of the proceeds of sale, the trustee may rely on the information provided in the public records as to the claims of junior interest holders and, in the event of a dispute or uncertainty over such claims, the trustee has the discretion to submit the matter to adjudication by court, by interpleader, or otherwise. All costs and fees, including attorney's fees and costs, of adjudication must be paid out of the proceeds of sale after payment of the amounts required to be paid by items (1) and (2) of subsection (A).

Section 27-32-365.   (A)   The trustee's deed must include the name and address of the trustee, the name and address of the buyer, the name of the obligor, including the owner of the timeshare estate on the date of the recordation of the notice of sale, and the name and address of the preparer of the trustee's deed. The trustee's deed must recite that the certificate of compliance was recorded after the regular conduct of a sale, and shall contain no warranties of title from the trustee.


Printed Page 1899 . . . . . Thursday, March 30, 2000

(B)   Upon the recording of the trustee's deed, the certificate of compliance and trustee's deed together are conclusive evidence of the truth of the matters set forth therein.

(C)   The trustee's deed conveys to the purchaser all right, title, and interest in the timeshare estate that the obligor had, or had the power to convey, at the time of the execution of the mortgage or recording of the claim of lien together with all right, title, and interest in the owner or his successors in interest acquired after the execution of the mortgage or recording of the claim of lien.

(D)   If an action is filed based on any claim that the trustee failed to follow the procedures in this article or that the sale was otherwise improper, it is presumed that the trustee was acting solely as the agent of the lienholder, and any liability resulting therefrom is the sole responsibility of the lienholder, mortgagee or managing entity and not the trustee.

Section 27-32-370.   (A)   The procedures set forth in this article do not impair or otherwise affect the continuing right to bring a judicial action to foreclose a mortgage lien or claim of lien which has not been satisfied by a sale conducted pursuant to Section 27-32-345.

(B)   Nothing in this article shall be construed to impair the right of any person to assert his or her legal and equitable rights in a court of competent jurisdiction; however, no such action may be pursued to set aside a sale or void a trustee's deed subsequent to the recordation of the trustee's deed.

(C)   The procedures in this article must be given effect in the context of any reference to judicial foreclosure proceedings or procedures set forth in this chapter.

(D)   If any provision of this article or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this article which can be given effect without the invalid provision or application. To this end, the provisions of this article are declared severable.

(E)   Notwithstanding anything to the contrary, a managing entity must release the address of the owner of a timeshare estate to a lienholder who can demonstrate that the timeshare estate is subject to an assessment lien or a mortgage lien held by the lienholder. This information may be used by the lienholder solely for purposes of complying with the foreclosure procedures described in this article." /

Renumber sections to conform.

Amend title to conform.


Printed Page 1900 . . . . . Thursday, March 30, 2000

Senator RANKIN explained the committee amendment.

The committee amendment was adopted.

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

H. 3889--Objection

Senator RANKIN asked unanimous consent to give the Bill a third reading on the next legislative day.

Senator McCONNELL objected.

ADOPTED

S. 1286 (Word version) -- Senators McConnell, Saleeby and Moore: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MAY 24, 2000, IMMEDIATELY FOLLOWING THE ELECTION OF COMMISSIONERS TO THE SOUTH CAROLINA CONSUMER AFFAIRS COMMISSION, AS THE TIME FOR ELECTING A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE FIFTH JUDICIAL CIRCUIT, SEAT 3, WHOSE UNEXPIRED TERM EXPIRES JUNE 30, 2003; AND TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 3, WHOSE UNEXPIRED TERM EXPIRES JUNE 30, 2003.

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

CARRIED OVER

The following Bills were carried over:

S. 1272 (Word version) -- Judiciary Committee: A BILL TO AMEND SECTION 16-3-85, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSE OF CHILD ABUSE AND NEGLECT, SO AS TO PROVIDE THAT THE OFFENSE PERTAINS TO ANY PERSON WHO COMMITS ABUSE AND NEGLECT WHICH RESULTS IN THE DEATH OF A CHILD; AND BY ADDING SECTION 16-3-95, SO AS TO PROVIDE FOR THE OFFENSE OF INFLICTING GREAT BODILY INJURY UPON A CHILD AND TO PROVIDE PENALTIES FOR VIOLATIONS OF THE OFFENSE; AND TO AMEND SECTION 16-1-60, SO AS TO PROVIDE THAT THE OFFENSES OF INFLICTING GREAT BODILY INJURY UPON A CHILD AND ALLOWING GREAT


Printed Page 1901 . . . . . Thursday, March 30, 2000

BODILY INJURY TO BE INFLICTED UPON A CHILD ARE ADDED TO THE LIST OF VIOLENT CRIMES.

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

S. 1279 (Word version) -- Senator Leventis: A BILL TO AMEND SECTION 44-56-470, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGISTRATION AND FEES FOR DRYCLEANING FACILITIES, SO AS TO REVISE THE DATE BY WHICH A DRYCLEANING FACILITY OWNER OR OPERATOR MUST RECEIVE CERTAIN CERTIFICATIONS AND THE DATE BY WHICH THEY MUST INSTALL CONTAINMENT STRUCTURES AROUND EQUIPMENT ITEMS IN WHICH DRYCLEANING SOLVENTS ARE USED; AND TO AMEND ACT 119 OF 1995, RELATING TO DRYCLEANING FACILITY RESTORATION, THE DRYCLEANING RESTORATION TRUST FUND, AND THE REGULATION AND REGISTRATION OF DRYCLEANING FACILITIES, SO TO DELETE THE PROVISION WHICH REPEALS THE ACT ON JULY 1, 2005.

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

S. 1282 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND SECTIONS 38-79-130, AS AMENDED, AND 38-79-480, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING RESPECTIVELY TO THE POWERS OF THE SOUTH CAROLINA MEDICAL MALPRACTICE LIABILITY JOINT UNDERWRITING ASSOCIATION AND LIMITS ON RECOVERY FOR CLAIMS MADE AGAINST A PERSON OR ENTITY INSURED BY THE ASSOCIATION SO AS TO INCREASE THE LIMITS FROM ONE HUNDRED THOUSAND DOLLARS TO TWO HUNDRED THOUSAND DOLLARS FOR EACH CLAIMANT AND FROM THREE HUNDRED THOUSAND DOLLARS TO SIX HUNDRED THOUSAND DOLLARS FOR ALL CLAIMANTS UNDER ONE POLICY IN ANY ONE YEAR; TO AMEND SECTION 38-79-250, AS AMENDED, RELATING TO OBLIGATIONS OF MEMBERS TERMINATED FROM THE ASSOCIATION, SO AS TO PROVIDE THAT THE STATE IS NOT RESPONSIBLE FOR ANY COSTS, EXPENSES, LIABILITIES, JUDGMENTS, OR OTHER OBLIGATIONS OF THE ASSOCIATION; TO AMEND SECTION 38-79-260, AS AMENDED, RELATING TO THE GOVERNING BOARD OF THE ASSOCIATION, SO AS TO REDUCE THE NUMBER OF MEMBERS ON THIS BOARD FROM


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TWENTY-ONE TO THIRTEEN AND TO REQUIRE THE BOARD TO DEVELOP A PLAN OF OPERATION SUBJECT TO APPROVAL BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 38-79-430, AS AMENDED, RELATING TO CREATION OF THE BOARD OF GOVERNORS TO MANAGE AND OPERATE THE SOUTH CAROLINA PATIENT'S COMPENSATION FUND, SO AS TO REQUIRE THE BOARD TO DEVELOP A PLAN OF OPERATION SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE DEPARTMENT OF INSURANCE; AND TO AMEND SECTION 38-79-450, RELATING TO FEES FOR MEMBERSHIP IN THE SOUTH CAROLINA PATIENT'S COMPENSATION FUND, SO AS TO REQUIRE MEMBERS TO PAY ANY DEFICIT OF THE FUND AND TO PROVIDE THAT THE STATE IS NOT RESPONSIBLE FOR ANY COSTS, EXPENSES, LIABILITIES, JUDGMENTS, OR OTHER OBLIGATIONS OF THE FUND.

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

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

RECALLED AND READ THE SECOND TIME

S. 1288 (Word version) -- Senator Leventis: A BILL TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION SHALL CLOSE PERMANENTLY THE SOUTHERN ACCESS OF ROAD 43-506 AT THE POINT WHERE IT INTERSECTS WITH ROAD 43-251 IN SUMTER COUNTY.

Senator LEVENTIS asked unanimous consent to make a motion to recall the Bill from the Sumter County Delegation.

There was no objection.

The Bill was recalled from the Sumter County Delegation.

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

S. 1288--Ordered to a Third Reading

On motion of Senator LEVENTIS, with unanimous consent, S. 1288 was ordered to receive a third reading on Friday, March 31, 2000.


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Motion to Ratify Adopted

At 11:35 A.M., Senator DRUMMOND asked unanimous consent to make a motion to invite the House of Representatives to attend the Senate Chamber for the purpose of ratifying Acts at a mutually convenient time.

There was no objection and a message was sent to the House accordingly.

RATIFICATION OF ACTS

Pursuant to an invitation the Honorable Speaker and House of Representatives appeared in the Senate Chamber on March 30, 2000, at 12:15 P.M. and the following Act was ratified:

(R260, S. 1055 (Word version)) -- Senator Moore: AN ACT TO AMEND ARTICLE 1, CHAPTER 13, TITLE 50 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROTECTION OF FISH, BY ADDING SECTION 50-13-25 SO AS TO ESTABLISH LAWFUL CATCH LIMITS FOR BASS AND OTHER FISH, TO ESTABLISH A MINIMUM SIZE LIMIT FOR BASS, AND TO RESTRICT THE USE OF FISHING DEVICES FOR SLADE LAKE IN EDGEFIELD COUNTY.
L:\COUNCIL\ACTS\1055DW00.DOC

MOTION ADOPTED

On motion of Senators WILSON and COURSON, with unanimous consent, the Senate stood adjourned out of respect to the memory of Caroline Goggans Dixon of Columbia, S.C.

Time Fixed

Senator DRUMMOND moved that, when the Senate adjourns on Friday, March 31, 2000, it stand adjourned to meet next Tuesday, April 4, 2000, at 12:00 Noon, which motion was adopted.

ADJOURNMENT

At 12:20 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of


Printed Page 1904 . . . . . Thursday, March 30, 2000

Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

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