South Carolina General Assembly
108th Session, 1989-1990
Journal of the House of Representatives

Tuesday, May 30, 1989
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 10:00 A.M.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

Almighty God and Father, Who has been with us all our days and promised to continue with us, guide us by Your truths that all our actions may be as an anchor of support to Your people. Grant Your wisdom in this Chamber until our work is done. Make us quick to discern the needs of Your people, wise in finding solutions, firm in the defense of the right, considerate and helpful of one another. Give us the ability to separate the fleeting from the enduring that we may be a blessing to the whole family of God as we hear and heed the words of the Psalmist: "One generation shall praise Your works to another, and shall declare Your mighty acts." (Psalm 145:4)

Hear us, O Lord, as we humbly pray. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

RULES AND REGULATIONS
WITHDRAWN AND RESUBMITTED

The following were received.

OFFICE OF THE SPEAKER OF
THE HOUSE OF REPRESENTATIVES

May 25, 1989
The Honorable Sandra K. McKinney
Clerk of the S.C.         (Doc. No. 1091)

House of Representatives

Dear Mrs. McKinney:

The Department of Health and Environmental control is this date hereby withdrawing and simultaneously resubmitting R-61-100, Non-Hazardous Solid Waste Management Planning. This Regulation is in the Agriculture and Natural Resources Committee.

Sincerely,
Robert J. Sheheen

OFFICE OF THE SPEAKER OF
THE HOUSE OF REPRESENTATIVES

May 25, 1989
The Honorable Sandra K. McKinney
Clerk of the S.C.         (Doc. No. 1039)

House of Representatives

Dear Mrs. McKinney:

The Department of Health and Environmental Control is this date hereby withdrawing and simultaneously resubmitting R. 61-68, Water Classification and Standards and R. 61-69, Classified Waters. These Regulations were referred to Agriculture and Natural Resources Committee.

Sincerely,
Robert J. Sheheen

Received as information.

OFFICE OF THE SPEAKER OF
THE HOUSE OF REPRESENTATIVES

The following was received.

May 29, 1989
The Honorable Sandra K. McKinney
Clerk of the S.C.         (Doc. No. 1148)

House of Representatives

Dear Mrs. McKinney:

Pursuant to Act 176 of 1977, I have received on May 26, 1989 regulations concerning Leasing of Real Property from the State Budget and Control Board.

They are hereby referred to the Committee on Ways and Means for consideration.

Sincerely,
Robert J. Sheheen

Received as information.

STATEMENT BY REP. KLAPMAN

Rep. KLAPMAN made a statement relative to the flowers on the rostrum given by him in memory of his wife, Arlene; Chick Rice and the servicemen who gave their lives in defense of their country, and thanked the members for their many kind expressions of sympathy during his recent time of sorrow.

POINT OF QUORUM

The question of a quorum was raised.

A quorum was later present.

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows.

Alexander, T.C.        Altman                 Bailey, G.
Bailey, J.             Bailey, K.             Baker
Barber                 Barfield               Baxley
Beasley                Bennett                Blackwell
Blanding               Boan                   Brown, H.
Brown, R.              Bruce                  Burch
Burriss, M.D.          Chamblee               Clyborne
Cole                   Cooper                 Corbett
Cork                   Corning                Davenport
Faber                  Fair                   Fant
Farr                   Felder                 Ferguson
Foster                 Gentry                 Gordon
Hallman                Harris, J.             Harris, P.
Harwell                Haskins                Hayes
Hearn                  Hendricks              Hodges
Huff                   Jaskwhich              Johnson, J.C.
Johnson, J.W.          Kay                    Keegan
Keesley                Keyserling             Kirsh
Klapman                Kohn                   Lanford
Limehouse              Littlejohn             Manly
Mappus                 Martin, D.             Martin, L.
Mattos                 McAbee                 McBride
McCain                 McEachin               McElveen
McGinnis               McKay                  McLellan
McLeod                 McTeer                 Neilson
Nesbitt                Nettles                Quinn
Rama                   Rhoad                  Rogers, J.
Rogers, T.             Rudnick                Sharpe
Sheheen                Simpson                Smith
Snow                   Stoddard               Sturkie
Tucker                 Vaughn                 Waites
Waldrop                Washington             Wells
Whipper                White                  Wilder
Wilkes                 Wilkins                Williams, D.
Williams, J.           Winstead               Wofford
Wright

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on May 30, 1989.

Ronald P. Townsend                  Harry M. Hallman
M.O. Alexander                      Joe E. Brown
Paul Short                          Jack Gregory
Marion P. Carnell                   Paul W. Derrick
T.M. Burriss                        Luther L. Taylor, Jr.
James E. Lockemy                    Donna Moss
Alex Harvin, III                    D. Elliott
Total Present-122

LEAVES OF ABSENCE

The SPEAKER granted Reps. MOSS and PHILLIPS a temporary leave of absence.

STATEMENT RE ATTENDANCE

I was not present during the session but arrived in time to attend the Committee meetings on Monday, May 29, 1989.

Rep. D. WILLIAMS

S. 321-COMMITTEE OF CONFERENCE APPOINTED
MESSAGE FROM THE SENATE

The following was received from the Senate.
Columbia, S.C., May 29, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it insists upon its amendments to S. 321:
S. 321 -Senators Setzler, Nell W. Smith, Martschink, Rose, Mitchell, Macaulay, Giese, Lourie, Thomas, Mullinax and McGill: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-18-15 SO AS TO PROVIDE A PROCESS WHEREBY SCHOOLS CAN BE GIVEN THE FLEXIBILITY OF RECEIVING EXEMPTION FROM CERTAIN STATE REGULATIONS AND BY AMENDING SECTION 59-18-20 SO AS TO ESTABLISH A COMPETITIVE SCHOOLWIDE INNOVATION GRANTS PROGRAM.
and asks for a Committee of Conference and has appointed Senators Setzler, Hayes and McConnell of the Committee of Conference on the part of the Senate.

Very respectfully,
President

Whereupon, the Chair appointed Reps. BEASLEY, NESBITT and JASKWHICH to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

H. 3695-FREE CONFERENCE REPORT RECEIVED

The following was received.

FREE CONFERENCE REPORT

The General Assembly, Columbia, S.C., May 29, 1989

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3695 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTIONS 38-77-30, AS AMENDED, 38-77-150, 38-77-160, AS AMENDED, 38-77-110, 38-77-140, 38-73-735, 38-73-10, 38-73-40, 38-73-720, 38-73-730, 38-73-750, 38-73-760, 38-73-770, 38-77-10, AS AMENDED, 38-77-910, 38-77-950, AS AMENDED, 38-77-280, AS AMENDED, 38-77-112, AS AMENDED, 38-77-580, AS AMENDED, 38-77-620, 38-77-920, 38-57-130, 38-55-170, 38-73-1210, 38-73-455, AS AMENDED, 38-77-590, AS AMENDED, 38-73-457, AS AMENDED, AND 38-57-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE'S INSURANCE LAWS, 56-9-330, 56-10-240, AS AMENDED, 56-10-40, 56-10-280, 56-1-80, AND 56-3-1350, RELATING TO THE MOTOR VEHICLE LAWS, 37-6-604 AND 37-6-605, RELATING TO THE DIVISION OF CONSUMER ADVOCACY IN THE DEPARTMENT OF CONSUMER AFFAIRS, 16-11-125, RELATING TO THE CRIME OF MAKING FALSE CLAIM OR STATEMENT IN SUPPORT OF A CLAIM TO OBTAIN INSURANCE BENEFITS FOR FIRE OR EXPLOSION LOSS, 16-11-130, RELATING TO THE CRIME OF BURNING PERSONAL PROPERTY TO DEFRAUD AN INSURER, 23-41-30, RELATING TO THE ARSON REPORTING-IMMUNITY ACT AND THE RELEASE OF INFORMATION BY AN INSURANCE COMPANY, AND ACT 683 OF 1988, RELATING TO THE WAITING PERIOD REQUIRED BY SECTION 38-73-960 AND ITS EXTENSION BY THE CHIEF INSURANCE COMMISSIONER, AND BY ADDING SECTIONS 38-77-341, 34-3-110, 38-77-114, 38-73-467, 38-77-25, 38-73-545, 38-73-550, 38-73-555, 38-77-111, 38-77-113, 38-73-1370, 38-73-1380, 38-73-1400, 38-73-1410, AND 38-73-1420 AND ARTICLE 48 TO CHAPTER 5, TITLE 56 (SAFETY BELTS AND PENALTY), SO AS TO ENACT THE "AUTOMOBILE INSURANCE REFORM ACT OF 1989"; TO DELETE SUBSECTION (E) OF SECTION 38-77-280, RELATING TO AUTHORIZATION FOR INSURERS OF AUTOMOBILE INSURANCE TO CHARGE A RATE FOR PHYSICAL DAMAGE INSURANCE COVERAGES DIFFERENT FROM THOSE PROVIDED FOR ELSEWHERE IN THE INSURANCE CODE AND TO THE PROVISION THAT NO POLICY OF AUTOMOBILE INSURANCE WHICH INCLUDES PHYSICAL DAMAGE INSURANCE COVERAGES OFFERED TO AN APPLICANT OR EXISTING POLICYHOLDER PURSUANT TO THIS SUBSECTION MAY BE CEDED TO THE REINSURANCE FACILITY: TO REPEAL SECTIONS 38-77-240, 38-77-250, 38-77-260, 38-77-270, 38-77-290, 38-77-300, AND 38-77-310, RELATING TO AUTOMOBILE INSURANCE: TO AMEND SECTION 16-1-10, AS AMENDED, RELATING TO CRIMES CLASSIFIED AS FELONIES, SO AS TO INCLUDE THE CRIME IN SECTION 16-11-125 (IF THE CLAIM IS FIVE HUNDRED DOLLARS OR MORE), THE CRIMES IN SECTION 16-11-130, AND THE CRIMES RELATING TO WILFULLY INCLUDING IN A PRIVATE PASSENGER AUTOMOBILE INSURANCE RATE FILING ANY EXPENSE OR LOSS WHICH WAS GENERATED IN WHOLE OR IN PART BY EITHER ANOTHER LINE OF INSURANCE OR GENERAL EXPENSES OR OVERHEAD APPLICABLE TO ALL LINES (EXCEPT UNDER CERTAIN CIRCUMSTANCES), OR RELATING TO ADOPTING A DIFFERENT METHOD OR USAGE OF ALLOCATING OR TREATING EXPENSES OR LOSSES FOR PURPOSES OF RATE FILINGS IN SOUTH CAROLINA FROM THAT WHICH IT USES IN OTHER STATES FOR SIMILAR LINES OF INSURANCE (EXCEPT UNDER CERTAIN CONDITIONS), OR RELATING TO GIVING A FALSE AFFIDAVIT THAT AN INSURANCE COMPANY'S EXPENSES ARE BEING ALLOCATED AND TREATED PROPERLY AND THAT PRIVATE PASSENGER AUTOMOBILE INSUREDS ARE NOT BEING CHARGED AN INEQUITABLE OR UNFAIR SHARE OF THE INSURER'S EXPENSES, ACQUISITION COSTS, OVERHEAD, OR OTHER EXPENSES; AND, IN ENACTING THE "AUTOMOBILE INSURANCE REFORM ACT OF 1989", TO INCLUDE 3669 SEPARATE, ADDITIONAL PROVISIONS DEALING WITH, AMONG OTHER THINGS, PROVISIONS THAT NO UNINSURED ON UNDERINSURED MOTORIST COVERAGE NEED BE PROVIDED IN SOUTH CAROLINA BY ANY EXCESS OR UMBRELLA POLICY OF INSURANCE, PROVIDING THAT WITHIN FORTY-FIVE DAYS AFTER THE EFFECTIVE DATE OF THIS ACT ALL LICENSED INSURERS AND LICENSED RATING ORGANIZATIONS AUTHORIZED TO WRITE PRIVATE PASSENGER AUTOMOBILE INSURANCE OR TO FILE PRIVATE PASSENGER AUTOMOBILE INSURANCE RATES ON BEHALF OF THEIR MEMBERS OR SUBSCRIBERS MUST SUBMIT TO THE CHIEF INSURANCE COMMISSIONER REVISED BASE RATES AND OBJECTIVE STANDARD RATES FOR PRIVATE PASSENGER AUTOMOBILE BODILY INJURY LIABILITY COVERAGE AND UNINSURED MOTORIST COVERAGE AND PROVIDING THAT THESE REVISED RATES MUST REFLECT A DECREASE IN THE APPROVED PREMIUM CHARGE FOR EACH OF THESE COVERAGES OF NOT LESS THAN SIX AND NINE-TENTHS PERCENT, REQUIRING THE CHIEF INSURANCE COMMISSIONER AT LEAST ANNUALLY TO CAUSE TO HAVE PUBLISHED AND MAKE AVAILABLE A REPRESENTATIVE SAMPLE OF THE PRIVATE PASSENGER PREMIUMS BEING CHARGED BY AT LEAST THE TWENTY INSURANCE COMPANIES HAVING THE LARGEST MARKET SHARE IN EACH TERRITORY TO FACILITATE PRICE COMPARISONS BY INSUREDS AND PROSPECTIVE INSUREDS WHO ARE SEEKING NEW COVERAGE, PROVIDING THAT NO RATE FILING FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE MAY INCLUDE OR BE BASED ACTUAL OR PROJECTED LOSS OR EXPENSE UPON DATA WHICH INCLUDES PAYMENTS MADE ON POLICIES WHEREIN THE AMOUNT OF THE SETTLEMENT, JUDGMENT, OR OTHER PAYMENT BY THE INSURER WAS IN EXCESS OF THE POLICY LIMITS EXCLUSIVE OF INTEREST AND COSTS, PROVIDING THAT NO RATE FILING FOR PRIVATE PASSENGER AUTOMOBILE INSURANCE MAY INCLUDE OR BE BASED UPON ACTUAL OR PROJECTED LOSS OR EXPENSE DATA WHICH INCLUDES PAYMENTS MADE AS A RESULT OF THE INSURER'S TORTIOUS BREACH OF ITS DUTY OF GOOD FAITH AND FAIR DEALING, PROVIDING THAT THERE IS NO PERSONAL INJURY PROTECTION COVERAGE MANDATED UNDER THE AUTOMOBILE INSURANCE LAWS OF THIS STATE BUT THAT IF AN INSURER OFFERS THIS COVERAGE, THE BENEFITS PAYABLE UNDER THE COVERAGE MAY BE ASSIGNED TO HOSPITALS, FUNERAL HOMES, PHYSICIANS, OR OTHER MEDICAL PROVIDERS, PROVIDING THAT MEDICAL PAYMENTS COVERAGE MAY BE OFFERED AS AN OPTIONAL COVERAGE UNDER THE AUTOMOBILE INSURANCE LAWS OF THE STATE BUT THAT THERE IS NO REQUIREMENT THAT MEDICAL PAYMENTS COVERAGE BE OFFERED AND THAT IF AN INSURER OFFERS THIS COVERAGE, THE BENEFITS PAYABLE UNDER THE COVERAGE MAY BE ASSIGNED TO HOSPITALS, FUNERAL HOMES, PHYSICIANS, OR OTHER MEDICAL PROVIDERS, REQUIRING THAT, TO INSURE THAT ALL AUTOMOBILE INSURANCE POLICIES ARE RATED TO REFLECT THE DRIVING RECORD OF ALL INSUREDS NAMED IN THE POLICY, ALL INSURERS OR THEIR AGENTS ARE REQUIRED TO OBTAIN A MOTOR VEHICLE REPORT ON EACH NAMED INSURED AT THE POINT OF SALE AND AT LEAST ANNUALLY AFTER THE SALE, AND REQUIRING THE CHIEF INSURANCE COMMISSIONER TO REVIEW ALL FORMS OF INSURANCE COVERED BY ANY SECTION OF THIS ACT AND TO ORDER RATE REDUCTIONS AS REQUIRED BY THIS ACT.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the bill do pass amended as follows:

Strike all before the enacting words and insert:

/Whereas, it is the purpose and intent of the General Assembly in enacting this legislation to reduce insurance losses, including those of the Reinsurance Facility, and, consequently, the cost of mandatory automobile insurance.

Now, therefore,/.

Amend further by striking all after the enacting words and inserting:

/SECTION 1. This act may be cited as the "Automobile Insurance Reform Act of 1989."

SECTION 2. Section 56-9-330(1) of the 1976 Code is amended to read:

(1) The department, shall upon request, and the payment of a fee of four two dollars shall furnish any person a certified abstract of the operating record of any person subject to the provisions of this chapter, which abstract shall must also fully designate the motor vehicles, if any, registered in the name of that person, and, if there shall be is no record of any conviction of that person for violating any laws relating to the operation of a motor vehicle or of any injury or damage caused by that person, the department shall so certify. The department, upon request and the payment of a reasonable fee, shall furnish a monthly listing by magnetic or other electronic media of all driver's license numbers that had driving violations posted on their records during the previous month. These abstracts shall are not be admissible as evidence in any action for damages or criminal proceedings arising out of motor vehicle accidents."

SECTION 3. Section 38-73-735 of the 1976 Code is amended to read:

"Section 38-73-735. In addition to risk and territorial classification plans promulgated or approved under Section 38-73-730, the commissioner may promulgate plans to afford credits or discounts to automobile insureds, or he may approve the credit or discount plans filed with him by insurers of automobile insurance. No automobile insurance credit or discount plan may be promulgated or approved by the commissioner unless: (1) the criteria for determining eligibility for credits or discounts under the plan are objective, clear, and unequivocal; (2) the criteria are based upon factually or statistically supported data; and (3) the credits or discounts provided under the plan will be afforded by the insurer on a nondiscriminatory basis to all insureds who are eligible therefor. If an insurance credit or discount plan is given to an insured pursuant to this section, the policy may not be ceded to the Reinsurance Facility in accordance with the facility's plan of operation."

SECTION 4. Section 56-10-240 of the 1976 Code, as last amended by Act 671 of 1988, is further amended to read:

"Section 56-10-240. If, during the period for which it is licensed, a motor vehicle is or becomes an uninsured motor vehicle, then the vehicle owner immediately shall obtain insurance on the vehicle or within five days after the effective date of cancellation or expiration of his liability insurance policy surrender the motor vehicle license plates and registration certificates issued for the motor vehicle. If five working days after the last day to pay an automobile liability insurance premium, whether it is the premium due date or a grace period that is granted customarily or contractually granted, a motor vehicle is an uninsured motor vehicle, the insurer shall give written notice, or notice by magnetic or electronic media in a manner considered satisfactory to the department, within ten days after such the five-day period ends, in addition to that notice previously given in accordance with law, by delivery under United States Post Office Certificate of Mailing bulk certified mail, return receipt requested, to the department of the cancellation or refusal to renew under the following circumstances:

(1) the lapse or termination of such insurance or security occurs within three months of issuance provided that this subsection only applies to new policies, and not renewal or replacement policies; or

(2) the lapse or termination occurs after three months for a resident who fails one or more of the objective standards prescribed in Section 38-73-455.

The department may, in its discretion, authorize insurers to utilize alternative methods of providing notice of cancellation of or refusal to renew to the department. The department may not thereafter reissue registration certificates and license plates for the that vehicle until satisfactory evidence has been filed by the owner or by the insurer who gave the cancellation or refusal to renew notice to the department that the vehicle is insured. Upon receiving information to the effect that a policy is canceled or otherwise terminated on any a motor vehicle registered in South Carolina, then the department shall suspend the license plates and registration certificate and shall initiate action as required within fifteen days of the notice of cancellation to pick up the license plates and registration certificate. Any A person who has had his license plates and registration certificate suspended by the department, but who at the time of suspension does possess possesses liability insurance coverage sufficient to meet the financial responsibility requirements as set forth in this chapter, has the right to immediately appeal the suspension immediately to the Chief Insurance Commissioner. If the Chief Insurance Commissioner commissioner determines that the person has sufficient liability insurance coverage, Chief Insurance Commissioner he shall notify the department, and the suspension is voided immediately. The department shall give notice by certified first class mail; return receipt requested, of the cancellation or suspension of registration privileges to the vehicle owner at his last known address. However, when license plates are surrendered pursuant to this section, they must be held at the department office in the county where the person who surrenders the plates resides.

If the vehicle owner unlawfully refuses to surrender the suspended items as required in this article, the department through its designated agents or by request to any a county or municipal law enforcement agency may take possession of the suspended license plates and registration certificate and may not thereafter reissue the registration until proper proof of liability insurance coverage is provided and until the owner has paid a reinstatement fee in the amount of one two hundred dollars for the first refusal under this section, and three hundred dollars for each subsequent refusal. A person who voluntarily surrenders his license plates and registration certificate before their suspension shall only be charged a reinstatement fee of five dollars.

Any A person wilfully failing to return his motor vehicle license plates and registration certificates as required in this section is guilty of a misdemeanor and, upon conviction, must be fined punished as follows:

(1) for a first offense, fined not less than one hundred dollars nor more than two hundred dollars or imprisoned for thirty days and, upon conviction of;

(2) for a second offense, be fined two hundred dollars or imprisoned for thirty days, or both, and;

(3) for a third and subsequent offenses must be offense, imprisoned for not less than forty-five days nor more than six months.

Only convictions which occurred within five ten years including and immediately preceding the date of the last conviction constitute prior convictions within the meaning of this section."

SECTION 5. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-161. No uninsured or underinsured motorist coverage need be provided in this State by any excess or umbrella policy of insurance."

SECTION 6. Section 38-73-10(a)(2) of the 1976 Code is amended to read:

"(2) empower the commissioner to fix, establish, and promulgate any uniform statistical plan or plans necessary or appropriate to obtain all automobile insurance loss and loss adjustment expense experience, other expense experience, and all other appropriate statistical and financial data from insurers, rating organizations, and advisory organizations engaged in an automobile insurance business in this State to the end that the State Rating and Statistical Division commissioner shall promulgate, not less than annually, the risk classification and territorial classification plan or plans to be used by all insurers of automobile insurance in this State and in order that the commissioner may test not less than annually, the class risk and territorial differentials previously established against the most recently available loss experience;".

SECTION 7. Section 38-73-40 of the 1976 Code is amended to read:

"Section 38-73-40. The commissioner shall may promulgate reasonable regulations and statistical plans, reasonably adapted to each of the rating systems on file with him, which may be modified from time to time and which must be used thereafter by each insurer in the recording and reporting of its loss and countrywide expense experience, in order that the experience of all insurers may be made available at least annually in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in Sections 38-73-330 and 38-73-430, as the case may be. The regulations and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this State and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating these regulations and plans, the commissioner shall give due consideration to the rating systems on file with him and, in order that such regulations and plans may be as uniform as is practicable among the several states, to the regulations and to the form of the plans used for rating systems in other states. The commissioner may designate one or more rating organizations or other agencies to assist him in gathering the experience and making compilations thereof. These compilations must be made available, subject to reasonable regulations plans promulgated by the commissioner, to insurers and rating organizations."

SECTION 8. Section 38-73-720 of the 1976 Code is amended to read:

"Section 38-73-720. The commissioner State Rating and Statistical Division is empowered may, through order, of the Commissioner to fix, establish, and promulgate fair and reasonable risk classifications and territories for automobile insurance risks in accordance with the criteria and standards mentioned in Section 38-73-730 and consistent with the purposes of this chapter and Chapter 77 of this title.

Before the beginning of the 1990 Session of the General Assembly, the commissioner shall promulgate by regulation a classification plan for automobile insurance for the establishment of rates and premiums. The classification plan when utilized by insurers of automobile insurance must be introduced actuarially on-balance so that no increase in income level is produced by the filed classification plans. Decreases for income levels are encouraged. The classification plan must be consistent with the classification plans approved for use on a countrywide basis by the rating organization having the largest number of members or subscribers in South Carolina. In addition, the commissioner shall not permit within the revised risk classification plan a distinction in bodily injury liability premiums charged or property damage liability premiums charged because of the type of private passenger automobile insured."

SECTION 9. Section 38-73-750 of the 1976 Code is amended to read:

"Section 38-73-750. Automobile insurers shall file with the State Rating and Statistical Division their plans or systems for allocating expenses and profit as respects the various kinds or types of automobile insurance risks and the classes of risks thereunder. However, no plan or system may be filed which is inconsistent with the classification of risks promulgated by the State Rating and Statistical Division commissioner. No plan or system may be filed or approved if the purpose or effect is to discriminate unfairly or unreasonably in respect to the allocation of expenses or profit between classes of risks or if the purpose or effect is to impose a burden or detriment upon the South Carolina Reinsurance Facility or to secure to the insurer using the plan or system an unfair or unreasonable competitive advantage to the detriment of the South Carolina Reinsurance Facility or other insurers. The Commissioner shall, after due notice and hearing, shall disapprove and disallow the further use of an inconsistent, discriminatory, burdensome, or competitively unfair plan or system for the allocation of expenses and profit."

SECTION 10. Section 38-73-760 of the 1976 Code is amended to read:

"Section 38-73-760. (a) The commissioner shall, through the State Rating and Statistical Division, fix, establish, and shall promulgate any uniform statistical or plans that may be necessary or appropriate for the gathering and compilation of statistical data from insurers, rating organizations, or advisory organizations transacting or otherwise engaged in the automobile insurance business in the State. In promulgating any uniform statistical plan or plans consideration may be given to the extent reasonable or practicable to the rules and forms of the plans used for rating systems in other states. Upon the promulgation of any statistical plan or plans for automobile insurance in this State, the same must be adopted and used by every automobile insurer in this State and every automobile insurer shall constitute the State Rating and Statistical Division its statistical agent for automobile insurance in this State.

(b) The statistical plan or plans may be devised and promulgated so as to provide for any and all statistical and financial data necessary or appropriate to the implementation of the policy of this chapter or Chapter 77 of this title or to yield statistical data reasonably and fairly related to any of the purposes of this article, including, but not limited to, the fixing, establishing, and promulgating of risk and territorial classification plans for automobile insurance; determining the pure loss rate level indications for automobile insurance in South Carolina based upon all South Carolina loss experience and assisting in the translating of this information into usable form for insurance consumers in terms of the final rates or premium charges of each insurer of automobile insurance, determining the reasonability of loss adjustment expenses, other expenses and profit factors applied by insurers to their pure loss components in arriving at their final rates or premium charges for automobile insurance both for purposes of ensuring that the final rates or premium charges are adequate, not excessive, and not unfairly discriminatory and for ensuring that improper and undue burdens are not imposed upon the South Carolina Reinsurance Facility by way of excessive ceding commissions to ceding insurers; determining the amount, validity, and propriety of class and territorial differentials applied to the general pure loss rate levels and testing not less than annually the appropriateness of the existing differentials in the light of the most recent available loss experience data; determining the amount, validity, and propriety of surcharges and discounts referable to any uniform merit rating plan or system which may have been promulgated by the State Rating and Statistical Division commissioner or which may be under consideration for promulgation, and testing not less than annually, the appropriateness of the surcharges and discounts in the light of the most recent available loss experience data; determining the propriety or validity of any plan for the classification of risks which may be in effect or under consideration based upon the propensities of motor vehicles or classes or types of motor vehicles or their equipment to shield occupants from death or serious injury as a result of crash or based upon the relative invulnerability of the motor vehicles or classes or types of motor vehicles to extensive damage as a result of crash or their repairability at modest expense; or obtaining data relevant to studies being made or to be made by the State Rating and Statistical Division in connection with any of the foregoing or in connection with means and methods for providing appropriate rates for insurance consumers or fostering and encouraging competition among insurers.

(c) The functions and responsibilities of the State Rating and Statistical Division acting as statistical agent for automobile insurers may not be delegated, except that the commissioner may, as the result of competitive bidding, make an agreement with some suitable person, firm, corporation, or other organization for the gathering, compilation, recordation, or computerization of the statistical data. However, these functions are always subject to the supervision, direction, and control of the commissioner and the examination and oversight of insurers in respect to their obligations to furnish statistical data to him remain the direct responsibility of the commissioner and may never be delegated other than to the State Rating and Statistical Division.

(d) Any merit rating plan or system promulgated by the commissioner pursuant to the authority contained in subsection (b) likewise extends to and includes automobile collision insurance. However, nothing contained in this subsection (d) requires that the same percentage or dollar amounts for discounts or surcharges apply to collision coverage nor does it require that surcharges already assessed in respect to the- liability coverages of the policy again be assessed in respect to the collision coverage afforded by the same policy.

(e) The commissioner shall require all insurers transacting automobile insurance business in this State to assess surcharges and grant safe driver discounts of no less than twenty percent.

(f) All policies of automobile insurance issued in South Carolina shall must show on the initial policy or on an attachment to the initial policy and on all premium invoices or attached to all premium invoices, in a form to be approved by the commissioner, the amount of any surcharge (including loss of safe driver discount) that may be applicable to the policy as a result of any merit rating plan or system promulgated by the commissioner. Also to be included, presented in a fashion that is readily understandable, is the reason for the applicable surcharge or the loss of safe driver discount. The amount of the applicable safe driver discount also must be shown."

SECTION 11. Section 38-73-770 of the 1976 Code is amended to read:

"Section 38-73-770. Every classification plan fixed, established, and promulgated by the State Rating and Statistical Division commissioner must be so structured as to produce rates or premium charges which are adequate, not excessive and not unfairly discriminatory."

SECTION 12. Section 38-77-112 of the 1976 Code is amended to read:

"Section 38-77-112. Notwithstanding Sections 38-77-110, 38-77-920, and 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."

SECTION 13. The first paragraph of Section 38-77-580 of the 1976 Code is amended to read:

"The operations and affairs of the facility are under the direction and control of a governing board of seventeen twenty-one persons of whom three four must be residents of South Carolina appointed by the Governor of South Carolina to represent consumers. The commissioner shall appoint eight persons to represent the insurance industry; in appointing these persons, the commissioner shall select two persons from a list of not less than five persons nominated by the American Insurance Association from the officers or employees of insurers which are licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons from a list of not less than five persons nominated by the American Mutual Insurance Alliance from the officers or employees of insurers which are licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons from a list of not less than five persons nominated by the National Association of Independent Insurers from the officers or employees of insurers which are licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons, one of whom must be an officer or employee of a stock insurer licensed in South Carolina and not a member or subscriber of any of the said these organizations, and one of whom must be an officer or employee of a nonstock insurer licensed in South Carolina and not a member or subscriber of any the said these organizations; however, of the eight persons appointed to represent the insurance industry, not less than five must be residents of South Carolina and those who are not residents of South Carolina must have job responsibilities that include the supervision over South Carolina operations; not less than two must be officers or employees of insurers licensed to transact automobile insurance in South Carolina and domiciled therein. The commissioner shall appoint four persons to represent producers, all of whom must be residents of South Carolina; he shall select two such persons from a list of not less than five persons nominated by the stock agents' association and two persons from a list of not less than five persons nominated by the mutual agents' association. The commissioner shall appoint two persons to represent the designated agents, one of whom must be an officer of a premium service finance company and the other of whom must be a designated agent and both of whom must be residents of South Carolina. In addition the Consumer Advocate, the Chairman of the Senate Banking and Insurance Committee, and the Chairman of the House of Representatives Labor, Commerce and Industry Committee or their designees shall be ex-officio members of the governing board of the Reinsurance Facility. No person who is associated with any business within the meaning of Section 8-13-20, which is either subject to regulation by the Department of Insurance or which provides goods or services to the facility for compensation, is eligible for appointment to the board to represent consumers, except that any person serving on the board representing consumers on the effective date of this provision who would otherwise be disqualified from serving based on this provision may continue to serve for the remainder of his current term."

SECTION 14. Section 38-77-920 of the 1976 Code is amended to read:

"Section 38-77-920. Except as is specifically provided for otherwise by law, No no automobile insurer may refuse acceptance of automobile insurance for an insurable risk from any applicant nor require that certain classes or types of risks be placed through some particular agent or employee. However, this This section is not intended to preclude any insurer from recognizing and giving effect to the property rights of agents in expirations or renewals.

No agent who represents more than one insurer of automobile insurance may refuse to accept in behalf, of an insurer represented by him automobile insurance for an insurable risk where the applicant for insurance designates by name or description the insurer of his choice. However, if If the applicant relies upon the skill and judgment of the agent to place the risk in any insurer represented by the agent, the agent may place the risk in the insurer which he considers appropriate. No insurer may agree, collude, or conspire with an agent or give, offer, or promise an agent anything of value to place any risk or any class or type of risk under such circumstances in another insurer. Every such agreement is utterly void and every act of collusion or conspiracy constitutes an act of unfair competition by both the insurer and agent which, if proved, shall must result in the suspension or revocation of the license of each for not less than one year, in addition to any other penalties or liabilities applicable.

No automobile insurer authorized to transact automobile insurance in this State which offers automobile insurance through the mails or uses the mails in transacting automobile insurance on insurable risks situate in this State may restrict its mailings or offerings to certain counties, areas, or zip-code territories of this State. The commissioner is authorized and directed to examine an insurer's records at any time the commissioner considers it necessary to determine that the insurer is not so restricting or limiting its offerings."

SECTION 15. Section 37-6-604 of the 1976 Code is amended to read:

"Section 37-6-604. The functions and duties of the Division of Consumer Advocacy shall be are:

(1) To provide legal representation of the consumer interest before the state and federal regulatory agencies as hereinafter provided when such those agencies undertake to fix rates or prices for consumer products or services or to enact regulations or establish policies related thereto.

(2) To monitor existing regulations, rate structures and policies of that agency of special interest to consumers and report to the public through the news media proposed changes therein under consideration and the effect of such those changes on the lives of the citizens of the State.

(3) The annual report required of the Commission on Consumer Affairs shall must include a report on the activities of the Division of Consumer Advocacy.

(4) T o evaluate and act upon requests from consumers concerning the matters set forth in (1) and (2) above, except that any proceedings initiated by the advocate shall must be brought on behalf of the public at large and not for individuals; initiation or continuation of any proceedings shall must be at the sole discretion of the consumer advocate."

SECTION 16. Section 37-6-605 of the 1976 Code is amended to read:

"Section 37-6-605. In the performance of his assigned functions the advocate shall have reasonable access to records of all state agencies which are not classified by law as confidential and all state agencies shall cooperate with the advocate in the performance of his duties. In addition, the advocate shall have reasonable access to confidential records and information, provided he enters a proprietary agreement to insure their confidentiality. The South Carolina Department of Insurance and advocate also have access to records, information, and data of the insurance companies as well as all of their sister affiliates, subsidiaries, and parent companies. During the course of a rate-making or other proceeding before the South Carolina Department of Insurance or the Public Service Commission, the Consumer Advocate, as a party of record, may request in writing, in addition to all other methods of discovery as provided by law for proceedings before the South Carolina Department of Insurance or the Public Service Commission, the issuance by the Chief Insurance Commissioner or the Executive Director of the Public Service Commission of an order compelling a witness or company to either produce or allow inspection of documentary evidence relevant to the matter before the South Carolina Department of Insurance or the Public Service Commission. If the executive director issues or refuses to issues the order, the aggrieved party may appeal to the full commission. The written request, in addition to showing a general relevance and reasonable scope of the evidence sought, must also specify with particularity the books, accounts, papers, records, or other materials of the business desired and the facts expected to be proved thereby. Provided, however, that for For good cause shown, in lieu of a written request, the request for such an order may be made orally upon the record to the presiding officer at the hearing. Any objections to the issuance of the order must be filed with the commission within three days of being notified of the written request for such order. Any objections so filed must list the specific grounds for objection. The commission shall rule on the objections within ten days or the objection is denied."

SECTION 17. Section 38-77-110 of the 1976 Code is amended to read:

"Section 38-77-110. (A) Automobile insurers other than insurers designated and approved as specialized insurers by the commissioner may not refuse to write or renew automobile insurance policies for individual private passenger automobiles or small commercial risks. These policies may not be cancelled except for reasons which had they existed or been known when the policy was written would have rendered the risk not an insurable risk. Every automobile insurance risk constitutes an insurable risk unless the operator's permit of the named insured has been revoked or suspended and is at the time of application for insurance so revoked or suspended. However, no insurer is required to write or renew automobile insurance on any risk if there exists a valid and enforceable outstanding judgment secured by an insurer, an agent, or licensed premium service company on account of automobile insurance premiums which the applicant or insured or any principal operator who is a member of the named insured's household has failed or refused to pay unless the applicant or insured pays in advance the entire premium for the full term of the policy sought to be issued or renewed or the annual premium, whichever is the lesser. An insurer is not precluded from effecting cancellation of an automobile insurance policy, either upon its own initiative or at the instance of an agent or licensed premium service company, because of the failure of any named insured or principal operator to pay when due any automobile insurance premium or any installment payment. However, notice of cancellation for nonpayment of premium shall notify notifies the person to whom the notice is addressed that the notice is void and ineffective if payment of the full amount of the premium or premium indebtedness, whichever is the greater, is made to the insurer, agent, or licensed premium service company named in the notice by the otherwise effective date of cancellation. This notice of cancellation is not considered ineffective for being conditional, ambiguous, or indefinite.

(B) Notwithstanding subsection (A) of this section, no insurer is required to write private passenger automobile insurance with higher limits of coverage than:

(1) two hundred fifty thousand dollars, for bodily injury liability to one person in one accident,

(2) subject to the limit for one person, five hundred thousand dollars because of bodily injury to two or more persons in one accident,

(3) fifty thousand dollars because of injury to or destruction of property of others in any one accident,

(4) five hundred thousand dollars combined single limits for either or both bodily injury and property damage, if any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, has one or more of the conditions or factors prescribed in Section 38-73-455(A) existing and if an insurer, at its option, writes such a policy, the policy may not be ceded to the Reinsurance Facility.

(C) With regard to any coverage not required to be written by an insurer under the mandate to write, no insurer may refuse to write such policy, coverage, or endorsement of automobile insurance because of the race, color, creed, national origin, or ancestry of anyone who seeks to become insured."

SECTION 18. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-341. It is an unfair trade practice as defined in Section 39-5-20 to:

(1) knowingly and wilfully make or cause to be made any false statement or representation of a material fact for use in an application for payment or for use in determining the right to payment under this chapter;

(2) submit or cause to be submitted bills or requests for payment containing charges for services rendered which are substantially in excess of the person's customary charges or in applicable cases substantially in excess of the person's costs for such services, unless there is good cause for the bills or requests containing the charges or costs;

(3) submit bills or requests for payment for work covered by insurance which are in excess of those submitted for similar work not covered by insurance; or

(4) submit bills or requests for payment which are inflated for the purpose of relieving the insured of the obligation for making a payment for such goods and services as a result of a deductible or co-payment clause; or

(5) charge for copies of medical records or other records provided more than fifty cents per page, except that a minimum charge of ten dollars for furnishing copies of these records is authorized to be charged by insurers or health care providers."

SECTION 19. Section 56-10-40 of the 1976 Code is amended to read:

"Section 56-10-40. Every insurer writing automobile liability insurance in this State and every provider of other security approved and accepted by the Chief Commissioner Executive Director of the Department of Highways and Public Transportation in lieu of such insurance shall immediately notify the Chief Commissioner Executive Director of the Department of Highways and Public Transportation of the lapse or termination of any such insurance or security issued to or provided for a resident of this State in the following circumstances:

(1) the lapse or termination of such insurance or security occurs within three months of issuance provided that this subsection only applies to new policies, and not renewal or replacement policies; or

(2) the lapse or termination occurs after three months for a resident who fails one or more of the objective standards prescribed in Section 38-73-455. This notification must be in writing or magnetic media in a manner considered satisfactory to the department. Upon receipt of any such notice the Chief Commissioner Executive Director of the Department of Highways and Public Transportation shall make a reasonable effort to notify the person that his certificate of registration has been suspended and shall recover the certificate from such person and the motor vehicle registration plates from the vehicles concerned."

SECTION 20. Section 56-10-280 of the 1976 Code is amended to read:

"Section 56-10-280. All contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for a period of not less than six months. A contract or policy of insurance remains in full force and effect at least sixty days notwithstanding any power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured; however, a contract or policy may be cancelled within the first sixty days only under the following circumstances:

(1) a check or bank draft tendered by the insured for payment of premium is returned unpaid for insufficient funds or other reason by the insured's financial institution; or

(2) the insured produces satisfactory proof from the Department of Highways and Public Transportation that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration.

The provisions of this section do not prohibit refunds to the insured for cancellations after sixty days resulting from causes other than nonpayment of premium. Where an insurance company cancels a contract or policy pursuant to this section for nonpayment of premium under the circumstances described above which occurs within the fires sixty days, the insurance company or agent is entitled to charge and collect a fifteen dollar penalty in addition to that otherwise provided by law, and the penalty charge is not a premium charge."

SECTION 21. Section 38-77-160 of the 1976 Code is amended by adding:

"No action may be brought under the underinsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the underinsured motorist provision. The insurer has the right to appear and defend in the name of the underinsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record. In the event the automobile insurance insurer for the putative at-fault insured chooses to settle in part the claims against its insured by payment of its applicable liability limits on behalf of its insured, the underinsured motorist insurer may assume control of the defense of action for its own benefit. No underinsured motorist policy may contain a clause requiring the insurer's consent to settlement with the at-fault party."

SECTION 22. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-350. (A) Not later than September 1, 1989, the Chief Insurance Commissioner shall approve a form which automobile insurers shall use in offering optional coverages required to be offered pursuant to law to applicants for automobile insurance policies. This form must be used by insurers for all new applicants after December 1, 1989. The form, at a minimum, must provide for each optional coverage required to be offered:

(1) a brief and concise explanation of the coverage,

(2) a list of available limits and the range of premiums for the limits,

(3) a space for the insured to mark whether the insured chooses to accept or reject the coverage and a space for the insured to select the limits of coverage he desires,

(4) a space for the insured to sign the form which acknowledges that he has been offered the optional coverages,

(5) the mailing address and telephone number of the Insurance Department which the applicant may contact if the applicant has any questions that the insurance agent is unable to answer,

(B) If this form is properly completed and executed by the named insured it is conclusively presumed that there was an informed, knowing selection of coverage and neither the insurance company nor any insurance agent has any liability to the named insured or any other insured under the policy for the insured's failure to purchase any optional coverage or higher limits.

(C) An automobile insurer is not required to make a new offer of coverage on any automobile insurance policy which renews, extends, changes, supercedes, or replaces an existing policy. However, the first renewal notices for existing policies after December 1, 1989, must include the form provided in subsection (A).

(D) Compliance with this section satisfies the insurer and agent's duty to explain and offer optional coverages and higher limits and no person, including, but not limited to, an insurer and insurance agent is liable in an action for damages on account of the selection or rejection made by the named insured.

(E) If the insured fails or refuses to return an executed offer form within thirty days to the insurer, the insurer shall add on uninsured motorist and underinsured motorist coverages with the same policy limits as the insured's liability limits.

SECTION 23. Section 38-55-170 of the 1976 Code is amended to read:

"Section 38-55-170. Any person who knowingly causes to be presented to an insurer transacting business in this State a false claim for payment, or who knowingly assists, solicits, or conspires with another to present a false claim for payment, is guilty of a misdemeanor felony and, upon conviction, must be imprisoned for not more than five years or fined not more than five thousand dollars, or both."

SECTION 24. Section 16-11-125 of the 1076 Code is amended to read:

"Section 16-11-125. Any person who shall wilfully and knowingly present presents or cause causes to be presented a false or fraudulent claim, or any proof in support of such claim, for the payment of a fire loss or loss caused by an explosion, upon any contract of insurance or certificate of insurance which includes benefits for such a loss, or prepares, makes, or subscribes to a false or fraudulent account, certificate, affidavit, or proof of loss, or other documents or writing, with intent that such documents may be presented or used in support of such claim, shall be is guilty of a misdemeanor felony and, upon conviction, shall must be fined not more than ten thousand dollars or imprisoned for not more than five years or both in the discretion of the court.

The provisions of this section are supplemental to and not in lieu of existing law relating to falsification of documents and penalties therefor."

SECTION 25. Section 16-11-130 of the 1976 Code is amended to read:

"Section 16-11-130. Any person who (a) wilfully and with intent to injure or defraud an insurer sets fire to or burns or causes to be burned or (b) aids, counsels, or procures the burning of any goods, wares, merchandise, or other chattels or personal property of any kind, whether the property of himself or of another, which shall is at the time be insured by any person against loss or damage by fire is guilty of a felony and shall, upon conviction thereof, must be imprisoned be sentenced to the Penitentiary not less than one nor more than five years."

SECTION 26. The crimes in Sections 16-11-125, 16-11-130, and 38-55-170 of the 1976 Code and Section 32 of this act are added to the list of crimes classified as felonies in Section 16-1-10.

SECTION 27. Section 23-41-30 of the 1976 Code is amended to read:

"Section 23-41-30. (a) Any authorized agency may require, in writing, the insurance company at interest to release to the requesting agency any or all relevant information or evidence deemed important to the authorized agency which the company may have in its possession relating to the fire loss in question. Relevant information includes:

(1) Pertinent insurance policy information relevant to a fire loss under investigation and any application for such a policy;

(2) Policy premium payment records which are available;

(3) History of previous claims made by the insured;

(4) Material relating to the investigation of the loss, including statements of any person, proof of loss, and any other evidence relevant to the investigation.

(b) When an insurance company has reason to believe that a fire loss in which it has an interest may be of other than accidental cause, the company may notify, in writing, an authorized agency and provide it with any or all material developed from the company's inquiry into the fire loss; however, when such information includes possible evidence of arson or other unlawful burning involving specifically named persons, the information in all cases may be furnished to the solicitor in the circuit where the fire occurred and he shall furnish the information to other proper properly authorized agencies if he deems considers such action to be appropriate. When an insurance company provides any one of the authorized agencies with notice of a fire loss, it is sufficient notice for the purpose of this chapter.

(c) When an insurance company denies payment of a claim to an insured on grounds of arson, false swearing, material misrepresentation, fraud, or similar claim or defense such insurer shall in all cases notify in writing the Chief Insurance Commissioner. The commissioner may, after the investigation, notify an authorized agency if he considers the action to be appropriate.

(c) (d) The authorized agency provided with information pursuant to this chapter may release or provide such information to any agency asked to participate in the investigation.

(d)(e) Any insurance company providing information to an authorized agency pursuant to this chapter has the right to be informed, upon written request, as to the status of the case by such agency within a reasonable time, as determined by the authorized agency.

(e)(f) Any insurance company or authorized agency which notifies the Chief Insurance Commissioner or provides or releases information, whether oral or written, and any person acting in their behalf, pursuant to this chapter is immune from any liability arising out of such notification or release."

SECTION 28. Section 56-1-80 of the 1976 Code is amended to read:

"Section 56-1-80. Every application for a driver's license or permit shall must:

(1) be made upon the form furnished by the department;

(2) be accompanied by the proper fee, and acceptable proof of date and place of birth;

(3) contain the full name, date of birth, sex, race, and residence address of the applicant and briefly describe the applicant;

(4) state whether the applicant has been licensed as an operator or chauffeur and, if so, when and by what state or country; and

(5) state whether any such license has ever been suspended or revoked or whether an application has ever been refused and, if so, the date of and reason for such suspension, revocation, or refusal.

Whenever application is received from a person previously licensed in another state, the department shall request copy of the applicant's record from such the other state. When received, the record shall become becomes a part of the driver's record in this State with the same force and effect as though entered on the operator's record in this State in the original instance. Every person who obtains a driver's license for the first time in South Carolina, and every person who renews his driver's license in South Carolina must be furnished a written request form for completion and verification of liability insurance coverage.

The completed and verified form or an affidavit prepared by the department that neither he, nor any resident relative, owns a motor vehicle subject to the provisions of this chapter, must be returned to the department within thirty days from the date the license is issued or renewed. Failure to return the form or affidavit results in the suspension of the newly issued or renewed driver's license until a properly executed form or affidavit is returned to the department."

SECTION 20. The Chief Insurance Commissioner shall no less than annually cause to have published and make available a representative sample of the private passenger premiums being charged by at least the twenty insurance companies having the largest market share in each territory to facilitate price comparisons by insureds and prospective insureds who are seeking new coverage.

SECTION 30. Article 9, Chapter 73, Title 38 of the 1976 Code is amended by adding:

"Section 38-73-915. (A) The commissioner in reviewing rate filings may take into consideration recently passed legislation or recently rendered court decisions which will have an effect on insurance rates. The commissioner may use such information to reduce or increase the rate level of the insurer or the rating organization.

(B) The commissioner may order an insurer or rating organization to reduce or increase its current rate levels as a result of recently passed legislation or recently rendered court decisions. The commissioner shall give the insurer or rating organization and the Consumer Advocate thirty days notice of his intention to order a reduction or increase in an insurer's or rating organization's rate level. The insurer or rating organization or the Consumer Advocate may request a hearing under the Administrative Procedures Act to contest the proposed order. The Consumer Advocate may participate as a party in any such hearings."

SECTION 31. No rate filing for private passenger automobile insurance may include or be based upon actual or projected loss or expense data which includes payments made on policies, wherein the amount of the settlement, judgment, or other payment by the insurer was in excess of the policy limits, exclusive of interest and costs. No rate filing for private passenger automobile insurance may include or be based upon actual or projected loss or expense data which includes payments made as a result of the insurer's tortious breach of its duty of good faith and fair dealing.

SECTION 32. (A) No automobile insurer or representative of any automobile insurer may wilfully include in a private passenger automobile insurance rate filing any expense or loss which was generated in whole or part by either another line of insurance or general expenses or overhead applicable to all lines, unless the insurer has allocated properly the expense or loss among all its lines of insurance. The insurer's compliance with generally accepted accounting and actuarial principles constitutes a complete defense to an action brought under this section. No insurer may adopt a different method or usage of allocating or treating expenses or losses for purposes of rate filings in South Carolina from that which it uses in other states for similar lines of insurance, unless different treatment is required by statute or regulation.

(B) The Chief Insurance Commissioner, at least once every four years, shall make or cause to be made, for each insurer which writes more than one percent of the private passenger market in South Carolina, an examination of each insurer's books, records, and accounts to ensure that the expenses are being allocated or treated properly. In lieu of an independent examination, the commissioner may request a sworn affidavit from the insurer's controller, accountant, or actuary that the companies' expenses are being allocated and treated properly and that private passenger automobile insureds are not being charged an inequitable or unfair share of the insurer's expenses, acquisition costs, overhead, or other expenses. The Chief Insurance Commissioner shall survey for the companies at appropriate intervals a comparison of the acquisition cost of private passenger business in South Carolina versus other similar states in which the companies do business.

(C) An insurer violating the provisions of this section is subject to a civil penalty of not less than twenty-five thousand dollars. A person who violates the provisions of this section is guilty of a felony and, upon conviction, must be imprisoned for not more than ten years or fined not less than ten thousand dollars, or both.

SECTION 33. Section 38-77-920 of the 1976 Code is amended to read:

"Section 38-77-920. No automobile insurer may refuse acceptance of automobile insurance for an insurable risk from any applicant nor require that certain classes or types of risks be placed through some particular agent or employee, except as provided for in Section 38-77-110. However, this This section is not intended to preclude any insurer from recognizing and giving effect to the property rights of agents in expirations or renewals.

No agent who represents more than one insurer of automobile insurance may refuse to accept in behalf of an insurer represented by him automobile insurance for an insurable risk where the applicant for insurance designates by name or description the insurer of his choice. However, if If the applicant relies upon the skill and judgment of the agent to place the risk in any insurer represented by the agent, the agent may place the risk in the insurer which he considers appropriate. No insurer may agree, collude, or conspire with an agent or give, offer, or promise an agent anything of value to place any risk or any class or type of risk under such circumstances in another insurer. Every such agreement is utterly void and every act of collusion or conspiracy constitutes an act of unfair competition by both the insurer and agent which, if proved, shall result results in the suspension or revocation of the license of each for not less than one year, in addition to any other penalties or liabilities applicable.

No automobile insurer authorized to transact automobile insurance in this State which offers automobile insurance through the mails or uses the mails in transacting automobile insurance on insurable risks situate in this State may restrict its mailings or offerings to certain counties, areas, or zip-code territories of this State. The commissioner authorized and directed to examine an insurer's records at any time the commissioner considers it necessary to determine that the insurer is not so restricting or limiting its offerings."

SECTION 34. There is no personal injury protection (PIP) coverage mandated under the automobile insurance laws of this State. Any reference to personal injury protection in Titles 38 or 56 of the 1976 Code of Laws or elsewhere is deleted. If an insurer sells no-fault insurance coverage which provides personal injury protection, medical payment coverage, or economic lose coverage, the coverage must not be assigned or subrogated and is not subject to a set-off.

SECTION 35. Section 38-73-465(B) of the 1976 Code, as reenacted by this act, is amended by adding an appropriately numbered item to read:

"________(a) In making a determination that an insurance rate is unfairly discriminatory, excessive, or unreasonable, the Insurance Department, in accordance with generally accepted and reasonable actuarial techniques, shall include consideration of expenses. Effective after June 30, 1989, expenses must be given effect in all private passenger automobile insurance rates by inclusion in rates of a level of expenses approximating an efficient company for the appropriate category in which each insurer qualifies. Insurers must be categorized by the marketing mechanism utilized, either as a nonagency insurer, captive agency insurer, or independent agency insurer. Nonagency insurers are those who market the automobile insurance policy primarily through the mail. Captive agency insurers are those who market the automobile insurance policy primarily through agents, compensated by salary or commission or both, but who are restricted by contract with the insurer from contracting with other insurers for marketing of automobile insurance. Independent agency insurers are those who market the automobile insurance policy primarily through agents who are not restricted by contract from marketing automobile insurance with other insurers.

(b) For purposes of this item, the maximum allowable expense level for each respective category is the weighted average for the past three years for which data is reported of the average expenses by insurer category for the top ten most efficient insurers in that category writing automobile insurance in this State. If there are not ten insurers in any given category, then the expense level is the weighted average for all the insurers in that category. The Chief Insurance Commissioner may reward an insurer actually achieving less than the maximum expense level allowable by allowing a higher underwriting profit than would otherwise result. However, this reward may not exceed the difference between the insurer's actual expense level achieved and the maximum level allowable in rates in a given year.

(c) The commissioner may extend the provisions of this item to other lines of property and casualty insurance, by order, after public hearing, when the determination is made that to do so is in the public interest."

SECTION 36. Whenever a person furnishes proof of liability insurance, or surrenders or has his registration or license tags confiscated for failure to produce proof of insurance, after the Department of Highways and Public Transportation receives notice of the lapse or termination of the required liability insurance, the department shall compare the effective date of the lapse or termination with the date of the proof of insurance or the date of the confiscation or surrender. If the department determines there was a lapse in the required coverage the department shall assess, in addition to other fines or penalties imposed by the law, a per diem fine in the amount of five dollars. The department shall collect and keep this fine to defer the costs of the financial responsibility program. The fine provided for in this section must not be assessed if the person furnishes proof, as documented by his sworn statement, that the motor vehicle upon which the coverage has lapsed or been terminated has not been operated upon the roads, streets, or highways of this State during the lapse or termination, and the lapse or termination is due to military service or illness as documented by a signed physician's statement. The total amount of the fine provided for in this section may not exceed two hundred dollars for a first offense.

SECTION 37. Section 56-3-1350 of the 1976 Code is amended to read:

"Section 56-3-1350. Whenever the department, as authorized under this chapter, cancels, suspends, or revokes the registration and license of a vehicle or the registration card, license plate, revalidation sticker, or other document issued by it pursuant to this chapter, the owner or person in possession of such the document shall immediately return it to the department. The department in all cases shall furnish the person returning the document with a receipt indicating the date of surrender."

SECTION 38. Section 38-73-465 of the 1976 Code is reenacted to read:

"Section 38-73-465. (A) In considering any rate filing or in reviewing any rate in effect for automobile insurance, or upon complaint or petition by the Consumer Advocate, or any other interested party, the Chief Insurance Commissioner if the petition for review is granted shall review the rate the previous three years experience with the rate being reviewed, or as much of the period as is available. If the insurer has realized an unfairly discriminatory, excessive, or unreasonable profit, in the opinion of the commissioner, the commissioner shall order the same removed and require that the individual rate maker, bureau or insurer to promulgate a rate which is not unfairly discriminatory, excessive, or unreasonable profit, in the opinion of the commissioner, the commissioner shall order the same removed and require that the individual rate maker, bureau, or insurer to promulgate a rate which is not unfairly discriminatory, excessive, or unreasonable and order a pro rata rebate of any unfairly discriminatory, excessive, or unreasonable amount charged together with interest at the rate of twelve percent per annum either in the form of a cash refund or as a credit toward the future premiums. The commissioner shall rescind the order of rebate only upon a showing that compliance would cause an insolvency.

(B) In making the determination that a rate is unfairly discriminatory, excessive, or unreasonable, the Insurance Department shall, in accordance with generally accepted and reasonable actuarial techniques, shall include consideration of the following factors:

1. past and prospective loss experience within and without this State;

2. past and prospective expenses;

3. the degree of competition among insurers for the risk insured;

4. investment income. reasonably expected by the insurer, consistent with the insurer's investment practices, from investable premiums anticipated in the filing, plus any other expected income from currently invested assets representing the amount expected on unearned premium reserves and loss reserves. The department may promulgate rules utilizing reasonable techniques of actuarial science and economics to specify the manner in which insurers shall calculate investment income attributable to such classes of insurance written in this State and the manner in which such investment income shall be used in the calculation of insurance rates. Such manner shall contemplate allowances for an underwriting profit factor and full consideration of investment income which produce a reasonable rate of return; however, investment income from invested surplus shall be considered; Investment income also must be given effect in all other property or casualty insurance rates and the commissioner may order the use of similar instructions and exhibits by replacement of that company's insurance data for other lines instead of the private passenger data referenced in this subitem. Companies shall supply the information requested in this item regardless of whether or not the references to the Annual Statements change.

Exhibit 1. Expected Underwriting Results with Unchanged Premium: This exhibit must display the following data and calculations:

i.     total limits premium at current level:

ii. forecasted losses:

iii. forecasted loss adjustment expenses:

iv. other underwriting expense:

v. underwriting result (profit or loss):
which must be calculated as total limits premium at current level by coverage, less losses, less loss adjustment expenses, less other underwriting expenses; and

vi. underwriting result (profit or loss) as a percent of premium, which must be calculated as the ratio of underwriting result to earned premium at current levels.

Exhibit 2. Analysis of Earnings Requirements: This exhibit must display the following information:

i. the amount of surplus allocated to each coverage for South Carolina private-passenger automobile insurance as calculated in investment income Exhibit 4, Line 4;

ii. the target rate of return on surplus which the filer believes is appropriate for the coverage in question. Testimony and evidence in support of this target rate of return must accompany the filing;

iii. the required dollar return on surplus to produce the target rate of return;

iv. the ratio of investment income to premium earned as calculated on Investment Income Exhibit 4, Line 11;

v. forecasted South Carolina premium earned by coverage;

vi. the expected dollar return from investment calculated by multiplying the ratio of investment income to premium earned by forecasted Premium earned;

vii. required underwriting return calculated as the required return on surplus less the dollar return from investment; and

viii. the ratio of the required underwriting return to forecasted premium earned.

EXHIBIT 1. EXPECTED UNDERWRITING

BODILY

PROPERTY

INJURY

DAMAGE

1. Earned Premium at

Current Level     $____________     $____________

2. Forecasted Loss     $____________     $____________

3. Forecasted Loss

Adjustment     $____________     $____________

4. Other Underwriting

Expenses     $____________     $____________

5. Underwriting Result     $____________     $____________

6. Underwriting Result

as a Percent of

Premium     ____________%     ____________%
RESULTS WITH UNCHANGED

COMPREHENSIVE     COLLISION

1. Earned Premium at

Current Level     $____________     $____________

2. Forecasted Loss     $____________     $____________

3. Forecasted Loss

Adjustment     $____________     $____________

4. Other Underwriting

Expenses     $____________     $____________

5. Underwriting Result     $____________     $____________

6. Underwriting Result

as a Percent of

Premium     ____________%     ____________%
EXHIBIT 2. ANALYSIS OF

BODILY     PROPERTY

INJURY     DAMAGE
1.     Surplus by Line,

Inv. Inc.

Exhibit 4, Line 4         $_____________     $_____________

2.     Target Rate of Return

on Surplus         _____________%     _____________%

3.     Required on Surplus

(1) x (2)         $_____________     $_____________

4.     Ratio of Investment

Income to Premium

Earned Inv. Inc.

Exhibit 4, Line 11

5.     Forecasted Premium

Earned         $_____________     $_____________

6.     Return from Investment

(4) x (5)         $_____________     $_____________

7.     Required Underwriting

Return (3) - (6)

8.     Ratio, Required Under-

writing to Premium

Earned (7) / (5)         _____________%     _____________%

EARNINGS REQUIREMENTS

COMPREHENSIVE     COLLISION
1.     Surplus by Line,

Inv. Inc.

Exhibit 4, Line 4         $_____________     $_____________

2.     Target Rate of Return

on Surplus         _____________%     _____________%

3.     Required on Surplus

(1) x (2)         $_____________     $_____________

4.     Ratio of Investment

Income to Premium

Earned Inv. Inc.

Exhibit 4, Line 11

5.     Forecasted Premium

Earned         $_____________     $_____________

6.     Return from Investment

(4) x (5)         $_____________     $_____________

7.     Required Underwriting

Return (3) - (6)

8.     Ratio, Required Under-

writing to Premium

Earned (7) / (5)         _____________%     _____________%
Instructions for Completing Investment
Income Exhibits

(A) Each filer shall provide the following exhibits pertaining to investment income associated with private passenger automobile insurance in the formats specified by Investment Income Exhibits 1, 2, 3, and 4.

1. Investment Income Exhibit 1: The filer shall provide the following information according to the format specified in Investment Income Exhibit 1, Investment Income from Loss and Loss Expense Reserves:

i. Net investment gain, from the filer's most recent annual statement, page 4, line 9a:

ii. cash and invested assets. from the filer's most recent annual statement, page 2, line 8A, for the two most recent years and mean cash and invested assets calculated for those two years:

iii. rate of return on investments calculated as the ratio of net investment gain to mean cash and invested assets:

iv. South Carolina loss reserves (Incl. IBNR) by coverage as of December thirty-first of the two most recent calendar years:

v. South Carolina loss adjustment expense reserves (Incl. IBNR) as of December thirty-first of the two most recent calendar years:

vi. mean loss and loss adjustment expense reserves for the period:

vii. premium earned by coverage;

viii. the ratio of loss and loss expense reserves to premium earned; and

ix. investment income from reserves as a percent of premium earned; and

2. Investment Income Exhibit 2: The filer shall provide the following information according to the format specified in Investment Income Exhibit 2. Investment Income from Unearned Premium Reserves:

i. South Carolina unearned premium reserves by coverage as of December thirty-first of the two most recent calendar years and the mean unearned premium reserve calculated for that period;

ii. premium earned by coverage;

iii. the ratio of unearned premium reserve to earned premium, by coverage;

iv. rate of return on investments; and

v. investment income as a percent of premium earned, by coverage.

3. Investment Income Exhibit 3: Each filer shall provide the following information according to the format specified in Investment Income Exhibit 3, Companywide Reserves, Surplus, and Invested Assets. The references on the exhibit pertain to the filer's most recent annual statement:

i. loss reserves for the moat recent calendar year;

ii. loss adjustment expenses reserves for the most recent calendar year and the ratio of unpaid loss adjustment expenses to unsaid losses;

iii. unearned premium reserves for the most recent calendar year;

iv. total reserves;

v. cash and invested assets as of December thirty-first of the most recent calendar year;

vi. surplus as of December thirty-first of the most recent calendar year;

vii. the percent of surplus invested, calculated as cash and invested assets less reserves divided by surplus; and

viii. the ratio of surplus to reserves.

4. Investment Income Exhibit 4: The filer shall provide the following information according to the format specified in Investment Income Exhibit 4, Investment Income as a percent of premium:

i. items 1 through 3 on the exhibit mean South Carolina premium, loss, and loss adjustment reserves, and the sum of these three components of reserves, by coverage;

ii. item 4 of the exhibit means the dollar amount of South Carolina surplus by coverage, calculated by multiplying total South Carolina reserves by coverage times the ratio of surplus to reserves;

iii. items 5 and 6 of the exhibit mean the dollar amount of invested South Carolina surplus by coverage, calculated as the product of South Carolina surplus times the percent of surplus invested;

iv. items 7 through 9 of the exhibit mean the sum of South Carolina reserves and surplus and the dollar amount of investment income earned on these reserves and surplus;

v. items 10 and 11 of the exhibit mean investment income as a percent of premium earned by coverage.

Charts to Follow
INVESTMENT INCOME EXHIBIT 1.
INVESTMENT INCOME FROM LOSS
AND LOSS EXPENSE RESERVES, SOUTH CAROLINA

1.     Net Investment Gain,

Annual Statement

P-4, Line 9a         $_________________
2.     Cash Invested Assets,

Annual Statement

P-2, Line 9a

a. As of *         $_________________

b. As of **         $_________________

Mean Cash & Invested Assets     $_________________
3.     Rate of Return on Investments (1./2c.) %

BODILY     PROPERTY

INJURY     DAMAGE
4.     S.C. Loss Reserves

a. As of *     $     $

b. As of **     $     $

5.     S.C. Loss Adjustment

Expense Reserves

a. As of *     $     $

b. As of **     $     $

6.     Mean Loss & LAX Reserves

a. As of *     $     $

b. As of **     $     $

7.     Premium Earned *     $     $

8.     Ratio Loss & LAX Reserves

to Earned Premium

(6./7.)     %     ___________%

9.     Investment Income as a

to Earned Premium

(6./7.)     ___________%     ___________%

* Current Calendar Year Available
** Previous Calendar Year Available

COMPREHENSIVE     PROPERTY

4.     S.C. Loss Reserves

a. As of *     $     $

b. As of **     $     $

5.     S.C. Loss Adjustment

Expense Reserves

a. As of *     $     $

b. As of **     $     $

6.     Mean Loss & LAX Reserves

a. As of *     $     $

b. As of **     $     $

7.     Premium Earned *     $     $

8.     Ratio Loss & LAX Reserves

to Earned Premium

(6./7.)     ___________%     ___________%

9.     Investment Income as a

to Earned Premium

(6./7.)     ___________%     ___________%

* Current Calendar Year Available
** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 2,
INVESTMENT INCOME
FROM UNEARNED PREMIUM RESERVE,
SOUTH CAROLINA

BODILY     PROPERTY

INJURY     DAMAGE

1.     S.C. Unearned Premium

Reserves

a. As of *     $____________     $____________

b. As of **     $____________     $____________

c. Mean Premium

Reserve

(1. + 1b.)/2     $____________     $____________

2.     Premium Earned *     $____________     $____________

3.     Ratio, Unearned Premium

Reserves to Earned

Premium (1c./2.)     ____________%     ____________%

4.     Rate of Return on

Investments

Investment Income

Exhibit 1, Line 3     ____________%     ____________%

5.     Investment Income as a

Percent of Premium

(3) x (4)     ____________%     ____________%

* Current Calendar Year Available
** Previous Calendar Year Available

COMPREHENSIVE     COLLISION

1.     S.C. Unearned Premium

Reserves

a. As of *     $____________     $____________

b. As of **     $____________     $____________

c. Mean Premium

Reserve

(1. + 1b.)/2     $____________     $____________

2.     Premium Earned *     $____________     $____________

3.     Ratio, Unearned Premium

Reserves to Earned

Premium (1c./2.)     ____________%     ____________%

4.     Rate of Return on

Investments

Investment Income

Exhibit 1, Line 3     ____________%     ____________%

5.     Investment Income as a

Percent of Premium

(3) x (4)     ____________%     ____________%

* Current Calendar Year Available
** Previous Calendar Year Available

INVESTMENT INCOME EXHIBIT 3. COMPANYWIDE
RESERVES, SURPLUS AND INVESTED ASSETS

ITEM     AMOUNT     REFERENCE
STATEMENT

1.     Loss Reserve         Page 10, Part 3A,

$____________     Line 32, Col. 5

2.     Loss Adjustment         Page 10, Part 3A,

Reserve*     $____________     Line 32, Col. 6

3.     Unearned Premium*         Page 7, Part 2,

$____________     Line 31, Col. 3

4.     Total Reserves

(1+2+3)     $____________

5.     Cash and Invested         Page 2, Line 8A,

Assets*     $____________     Col. 1

6.     Surplus*         Page 4, Line 32,

$____________     Col. 1

7.     Percent of Surplus

Invested ((5-4)/6)     ____________%

8.     Rate of Surplus to

Reserves (6/4)     ____________%

* Current Calendar Year Available

INVESTMENT INCOME EXHIBIT 4, INVESTMENT INCOME

AS A PERCENT OF PREMIUM, SOUTH CAROLINA

BODILY     PROPERTY

INJURY     DAMAGE
1.     Mean S.C. Premium
Reserve Investment Income
Exhibit 2, Line 1c.     $___________     $___________

2.     Mean S.C. Loss &
Loss Adj. Reserve Investment
Income Exhibit 1, Line 6     $___________     $___________

3.     Total S.C. Reserves     $___________     $___________

4.     S.C. Surplus,
(3) x Inv. Inc. Exhibit
3, Line 8     $___________     $___________

5.     Percent of Surplus
Invested Investment Income
Exhibit 3, Line 7     %     ___________%

6.     Invested Surplus,
(4)x(5)     $___________     $___________

7.     Sum, Reserves and
Invested Surplus (3)+(6)     $___________     $___________

8.     Rate of Return on
Investments Investment
Income Exhibit 1, Line 3     ___________%     ___________%

9.     Investment Income
Earned on Reserves and
Invested Surplus (7)x(8)     $___________     $___________

10.     Premium Earned,
Investment Income
Exhibit 1, Line 7     $___________     $___________

11.     Investment Income as
a % of Premium
Earned (9)/(10)     ___________%     ___________%

INVESTMENT INCOME EXHIBIT 4, INVESTMENT INCOME

AS A PERCENT OF PREMIUM, SOUTH CAROLINA

COMPREHENSIVE     COLLISION
1.     Mean S.C. Premium
Reserve Investment Income
Exhibit 2, Line 1c.     $___________     $___________

2.     Mean S.C. Loss &
Loss Adj. Reserve Investment
Income Exhibit 1, Line 6     $___________     $___________

3.     Total S.C. Reserves     $___________     $___________

4.     S.C. Surplus,
(3) x Inv. Inc. Exhibit
3, Line 8     $___________     $___________

5.     Percent of Surplus
Invested Investment Income
Exhibit 3, Line 7     %     ___________%

6.     Invested Surplus,
(4)x(5)     $___________     $___________

7.     Sum, Reserves and
Invested Surplus (3)+(6)     $___________     $___________

8.     Rate of Return on
Investments Investment
Income Exhibit 1, Line 3     ___________%     ___________%

9.     Investment Income
Earned on Reserves and
Invested Surplus (7)x(8)     $___________     $___________

10.     Premium Earned,
Investment Income
Exhibit 1, Line 7     $___________     $___________

11.     Investment Income as
a % of Premium
Earned (9)/(10)     ___________%     ___________%

The Chief Insurance Commissioner may reward an insurer actually achieving less than the maximum expense level allowable in rates after the initial three-year period by allowing a higher underwriting profit than would otherwise result from use of the instructions and exhibits set forth in this item. However, this reward my not exceed the difference between the insurer's actual expense level achieved and the maximum level allowable in rates a given year.

5. the reasonableness of the judgment reflected in the filing;

6. dividends, saving, or unabsorbed premium deposits allowed or returned to South Carolina policyholders, members, or subscribers;

7. the adequacy of loss reserves;

8. the cost of reinsurance;

9. trend factors, including trends in actual losses per insured unit for the insurer making the filing;

106. a reasonable margin for underwriting profit and contingencies which may be a negative margin;

117. other relevant factors such as those which impact upon the frequency or severity of claims or upon expenses or profits, percentage of surplus relative to earned premium, as well as additional factors to be considered as a result of the enactment of the Automobile Insurance Reform Act of 1989.

(C) After consideration of the rate factors provided in paragraph (B) a rate may be found by the department to be excessive, unreasonable, or unfairly discriminatory based upon the following standards: 1. Rates shall be deemed excessive if they are likely to produce a profit from South Carolina business that is unreasonably high in relation to the risk involved in the class of business or if expenses are unreasonably high in relation to services rendered. 2. Rates shall be deemed excessive if, among other things, the rate structure established by a stock insurance company provides for replenishment of surpluses from premiums, when the replenishment is attributable to investment losses. 3. Rates shall be deemed inadequate if they are clearly insufficient, together with the investment income attributable to them, to sustain projected losses and expenses in the class of business to which they apply. 4. A rate shall be deemed inadequate as to the premium charged to a risk or group of risks if discounts or credits are allowed which exceed a reasonable reflection of expense savings and reasonably expected loss experience from the risk or group of risks. 5. A rate shall be deemed unfairly discriminatory as a risk or group of risks if the application of premium discounts, credits, or surcharges among such risks does not bear a reasonable relationship to the expected loss and expense experience among the various risks.

(D)(C) In reviewing a rate filing, the department may require the insurer to provide at the insurer's expense all information necessary to evaluate the condition of the company and the reasonableness of the filing according to the criteria enumerated in this section and including statutorily-required notice provisions relative to rate filings.

SECTION 39. The 1976 Code is amended by adding:

"Section 38-77-350. (A) A person who is guilty of a violation, for a first offense, of Section 56-5-5310 for not having a taillight in good working order or a person who is guilty of a violation, for a first offense, of Section 56-5-1520 for driving too fast for conditions may not have his automobile insurance premiums increased as a result of that violation.

(B) A person violating Section 56-5-5310, for a first offense, has ten days to repair the taillight. If this person is found in violation of Section 56-5-5310 as stated in subsection (A), after the ten-day period, he must be punished as provided by law."

SECTION 40. The 1976 Code is amended by adding:

"Section 38-77-625. If an insured is involved in a motor vehicle accident where he is not the at-fault driver, insurer because of this occurrence."

SECTION 41. A. Section 38-73-1350 of the 1976 Code is amended to read:

"Section 38-73-1350. Notwithstanding the provisions of Sections 38-73- 1370, 38-73-1380, 38-73-1400, 38-73-1410, 38-73-1420, and 38-73-1430, after public hearing the Chief Insurance Commissioner may prohibit Cooperation cooperation among or within property/casualty rating or advisory organizations by insurers or among or within these rating or advisory organizations and insurers in rate making or in other matters within the scope of this chapter is authorized, so long as the filings resulting from the cooperation are subject to all the provisions of this chapter which are applicable to filings generally. The commissioner may review such cooperative activities and practices, and, if, after a hearing, he finds that any activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects the activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter and requiring the discontinuance of the activity or practice, except to the extent that these organizations may compile and disseminate only historic loss methodologies, upon a finding by the commissioner that the anti-competitive effects of this cooperation outweigh practical constraints of prohibitions. All property/casualty filings are subject to prior approval by the Chief Insurance Commissioner. The provisions of Title 1, Chapter 23 (Administrative Procedures Act) apply to all property/casualty rate filings."

B. Article 11, Chapter 73, Title 38 of the 1976 Code is amended by adding:

"Section 38-73-1370. After June 30, 1989, no rating organization may file a rate increase with the commissioner for any previously approved final rate or premium charge for any private passenger automobile insurance coverage. A rating organization may file the pure loss component of the rate or premium charge for any private passenger automobile insurance coverage, by class and territory, for the approval of the commissioner. After a public hearing, the commissioner may approve the pure loss component of the rate or premium charge for use by the members or subscribers of the rating organization. No member or subscriber may use the approved pure loss component of the rate or premium charge unless and until the expense component of the rate or premium charge has also been filed with and approved by the commissioner pursuant to Section 38-73-1380.

Section 38-73-1380. After June 30, 1989, no member or subscriber of a rating organization may utilize a rate or premium charge for any private passenger automobile insurance coverage unless and until the final rate or premium charge has been filed and approved by the commissioner. After the effective date of this section, the final rate or premium charge is the pure loss component filed and approved by a rating organization on behalf of its members or subscribers added to the expense component of the rate or premium charge, filed with and approved by the commissioner, by each member or subscriber of a rating organization independently.

No expense component filed by a member or subscriber of a rating organization may be approved by the commissioner unless it has been the subject of a public hearing, if that member's or subscriber's total written private passenger automobile insurance premium during the previous calendar year equaled or exceeded one percent of the total written private passenger automobile insurance premium in this State during the previous calendar year.

Section 38-73-1400. (1) After June 30, 1989, the 'pure loss component' of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to calendar/accident year incurred losses (the sum of paid losses plus loss reserves including' incurred but not reported loss reserves) and loss adjustment expense (those expenses directly related to the payment of claims) in this State, trended to include both the past and prospective loss experience. If the insurer writes one percent or more of the written premium for automobile insurance during the previous calendar year, that insurer must file its own trending methodology as independently derived.

(2) The 'expense component' of the final rate or premium charge for private passenger automobile insurance is that portion of the final rate or premium charge applicable to production costs (including commissions and other acquisition expenses), underwriting costs, administrative costs (including the actual costs of taxes, licenses and fees), and profit margin in this State.

(3) The 'final rate or premium charge' is the approved pure loss component added to the approved expense component. In the determination of whether the pure loss component should be approved and in the determination of whether the expense component should be approved, neither may be inadequate, excessive, nor unfairly discriminatory and the commissioner shall take into account investment income from unearned premium and loss reserves, surplus and realized capital gains.

Section 38-73-1410. After June 30, 1989, upon the effective date of this section, nothing herein should be construed to require a rating organization or its members or subscribers to immediately refile final rates or premium charges previously approved by the commissioner for private passenger automobile insurance coverages. Members or subscribers of a rating organization are authorized to continue to use automobile insurance rates or premium charges, approved before the effective date of this section, or decreases from those rates or premium charges filed by the rating organization and, subsequently, approved after the effective date of this section.

Section 38-73-1420. After June 30, 1989, the Board of Governors of the South Carolina Reinsurance Facility shall file an expense component for private passenger automobile insurance rate or premium charges after the rating organization with the largest number of members or subscribers has filed a pure loss component for private passenger automobile insurance with the commissioner. Upon the approval of such component, those automobile insurers designated pursuant to Section 38-77-590(A), for risks written by them through producers designated pursuant to that same section, shall utilize these final rate or premium charges. Automobile insurers designated pursuant to Section 38-77-590(A) are not required to use those same final rates or premium charges for risks written through their agents not appointed pursuant to Section 38-77-590.

Section 38-73-1430. After June 30, 1989, the commissioner may extend the provisions of Sections 38-73-1370, 38-73-1380, 38-73-1400, and 38-73-1410 to other lines of property and casualty insurance, by order, after public hearing, when the determination is made that to do so is in the public interest."

SECTION 42. Section 38-77-590 of the 1976 Code is amended by adding:

"(h) A designated carrier who fails a claims audit shall have no new designated producer assignments until the time it passes a re-audit within a reasonable time prescribed by the governing board. If this carrier fails two claims audits, including a re-audit, within any three-year period that carrier is disqualified for renewal of its contract with the facility upon expiration of its existing contract."

SECTION 43. If any provision of this act or the application of it to any person or circumstance is held invalid, the remainder of the act and the application of that provision to other persons or circumstances is not affected.

SECTION 44. Section 38-77-950 of the 1976 Code is amended to read:

"Section 38-77-950. It is the intent of this chapter that the facility shall may not be excessively nor unreasonably utilized by automobile insurers for unfairly competitive purposes or for purposes of unfairly discriminating against certain classes or types of automobile insurance risks having the same or similar objective risk characteristics as other risks in the same class under the rating plan for the classification of risks promulgated by the department, nor for the purpose of discriminating against such risks or any risks in certain rating territories. The commissioner shall prohibit unreasonable or excessive utilization of the facility.

A prima facie case of excessive or unreasonable utilization shall be is established upon a showing that an automobile insurance insurer or a group of such insurers under the same management has ceded or is about to cede more than forty thirty-five percent of total direct cedeable written premiums on South Carolina automobile insurance as reported in the most recently filed annual statement(s) of such insurer or group.

Upon the written request of the policyholder, all insurance companies doing business in this State shall give written notice to the policyholder informing him whether or not he and any driver under the policy is in the facility."

SECTION 45. A. Section 38-77-600 of the 1976 Code is amended to read:

"Section 38-77-600. The rate or premium charged by insurers of private passenger automobile insurance must include a facility recoupment charge, which must be added to the appropriate base rate or objective standards rate prescribed in Sections 38-73-455 and 38-73-457. The operating losses of the facility for a twelve-month period must be recouped in the subsequent twelve-month period.

(1) Prior to December first of each year, the governing board of the facility shall calculate the recoupment amount, by coverage, by dividing the net facility operating loss, adjusted to reflect industry average prudently incurred expenses, consistent with the provisions of Section 38-73-465, and the time value of money, by mandated coverage for the preceding facility accounting year, by the total number of earned car years in South Carolina, by coverage, for the same period of time. .386 multiplied by the recoupment is to be bourne by risks having zero surcharge points under the Uniform Merit Plan promulgated by the commissioner. This dollar The amount remainder of the recoupment (.614) multiplied by the recoupment) represents R in the formula, P01X + 2P12X + 3P23X + 4P34X + 5P45X + 6P6 6X + 7P 7X + 8P 8X + 9P 9X + 10P 10X =R. In this formula to be utilized in determining the facility recoupment charge:

(a) P01 is the percentage of risks which have zero one surcharge point points under the Uniform Merit Rating Plan promulgated by the commissioner;

(b) P12 is the percentage of risks which have one two surcharge point points under the Uniform Merit Rating Plan;

(c) P23 is the percentage of risks which are subject to a surcharge of two three points under the Uniform Merit Rating Plan;

(d) P34 is the percentage of risks which are subject to a surcharge of three to eight four points under the Uniform Merit Rating Plan;

(e) P45 is the percentage of risks subject to a surcharge of nine or more five points under the Uniform Merit Rating Plan;

(f) P 6 is the percentage of risks subject to a surcharge of six points under the Uniform Merit Rating Plan;

(g) P 7 is the percentage of risks subject to a surcharge of seven points under the Uniform Merit Rating Plan;

(h) P 8 is the percentage of risks subject to a surcharge of eight points under the Uniform Merit Rating Plan;

(i) P 9 is the percentage of risks subject to a surcharge of nine points under the Uniform Merit Rating Plan;

(j) P 10 or more is the percentage of risks subject to a surcharge of ten or more points under the Uniform Merit Rating Plan;

(f)(k) is the dollar amount by coverage, to be charged all risks having zero one surcharge points point under the Uniform Merit Rating Plan promulgated by the commissioner. This dollar amount, by coverage, is the facility recoupment charge to be added to the base rate or objective standards rate prescribed in Sections 38-73-455 and 38-73-457 for all risks which have zero one surcharge points point.

(2) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which have one surcharge point under the Merit Rating Plan is calculated by multiplying X by a factor of one.

(2)(3) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which have one two surcharge point points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of two.

(3)(4) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of two three points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of three.

(4)(5) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of three to eight four points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of four.

(5)(6) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of nine or more five points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of five.

(7) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of six points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of six.

(8) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of seven points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of seven.

(9) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of eight points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of eight.

(10) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of nine points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of nine.

(11) The facility recoupment charge by coverage to be added to the base rate or objective standards rate for all risks which are subject to a surcharge of ten or more points under the Uniform Merit Rating Plan is calculated by multiplying X by a factor of ten.

(6)(12) In determining the number of surcharge points a risk has for the purposes of this section, no surcharge points assigned under the Uniform Merit Rating Plan because the principal operator of the automobile has not been licensed in any state for at least one year immediately preceding the writing of the risk or as a result of a failure of any motor vehicle equipment requirement may be considered.

(13) This section applies to all private passenger automobile insurance policies issued or renewed after June 30, 1989. However, insurers unable to comply with the provisions of this section and renewal provisions required by law may comply with this section at any time after June 30, 1989, but in no event later than October 1, 1989."

B. Section 38-77-620 of the 1976 Code is amended to read:

"Section 38-77-620. The facility recoupment charges approved or established pursuant to Section 38-77-610 must be added to the approved base rate and objective standards rate in effect for each automobile insurer. The combined rate or premium charge is effective on July first of each year and the recoupment charges must remain constant until July first of the following year. The base rate and objective standards rate may change in accordance with

Section 38-73-457 and the other applicable requirements of this title pertaining to the approval of rates or premium charges. Facility recoupment charges must be considered in accordance with the following:

(1) Any recoupment charge paid by policyholders must be considered premium for the purpose of calculating premium taxes and commissions and is subject to normal policy cancellation procedures.

(2) Any net operating gains resulting from the operation of the facility must be retained by the facility, and the gains and any investment income derived from the gains must be used to offset future operating losses.

(3) The total funds recouped by all insurers less commission and premium tax expenses and time value of money considerations must be paid to the Reinsurance facility in accordance with the plan of operation. The governing board shall redistribute the funds to the insurers based upon each insurer's share of the Reinsurance Facility losses. Recoupment must be used solely for the purpose of recovering past facility operating deficits. The plan of operation must provide that the amount ultimately received by an individual company is not more than the company's share of the Reinsurance Facility losses, plus the time value of money.

(4) In the making and approval of rates for small commercial automobile risks, as defined in Section 38-77-30, consideration must be given to the net gains or losses incurred by insurers as a result of participation in the operating results and actual, prudently incurred expenses, respectively, of the facility."

SECTION 46. Section 38-73-465 of the 1976 Code as reenacted by this act is amended by adding:

"D. As a result of the enactment of the Automobile Insurance Reform Act of 1989, automobile insurance rates must be decreased on the policy anniversary date of each insured after September 30, 1989, by five percent after elimination of the appropriate amount of the recoupment charge. After the first year following the reductions, an insurer may apply to the Chief Insurance Commissioner for a rate adjustment, based on its actual experience, and include consideration of the time value of money. In every filing following the effective date of this section for an increase in automobile insurance rates, every insurer shall include in that filing a rate report under this methodology. Every rate filing, after that time, is effective only after prior approval of the Chief Insurance Commissioner, consistent with provisions of Chapter 23 of Title 1."

SECTION 47. (A) Chapter 5, Title 56 of the 1976 Code is amended by adding:

"Article 48
Safety Belts

Section 56-5-6510. As used in this article:

(1) 'Motor vehicle' means a passenger car, truck, van, or recreational vehicle required to be equipped with safety belts by Federal Motor Vehicle Safety Standard No. 208 (49 CFR 571.208), manufactured after July, 1966.

(2) 'Driver' means a person who drives or is in actual physical control of a motor vehicle.

Section 56-5-6520. The driver and every occupant of a motor vehicle, when it is being operated on the public streets and highways of this State, shall wear a fastened safety belt which complies with all provisions of federal law for their use. The driver is charged with the responsibility of requiring each occupant over six and under seventeen years of age to wear a safety belt.

Section 56-5-6530. The provisions of this article do not apply to:

(1) a driver or occupant who possesses a written verification from a physician that he is unable to wear a safety belt for physical or medical reasons;

(2) medical or rescue personnel attending to injured or sick individuals in an emergency vehicle when operating in an emergency situation as well as the injured or sick individuals;

(3) school, church, or day care buses;

(4) public transportation vehicles except taxis;

(5) occupants of vehicles in parades;

(6) United States mail carriers;

(7) an occupant for which no safety belt is available because all belts are being used by other occupants;

(8) a driver or occupant frequently stopping or leaving a motor vehicle for pick up or delivery purposes;

(9) occupants of the back seat of a motor vehicle unless the vehicle is equipped with a shoulder harness in addition to the lap belt;

(10) children under six years of age who must be properly restrained as provided by Article 47, Chapter 5 of Title 56.

Section 56-5-6540. (A) A person violating the provisions of this article, upon conviction, must be fined not more than ten dollars, all or part of which may be suspended. No court costs may be assessed against the person convicted. No person may be fined more than twenty dollars for any one incident of one or more violations of the provisions of this article. No custodial arrest for a violation of this article may be made, except upon a warrant issued for failure to appear in court when summoned or for failure to pay an imposed fine. A conviction for violation of this article does not constitute a criminal offense.

(B) A law enforcement officer may not stop a driver for a violation of this article in the absence of another violation of the motor vehicle laws except when the stop is made in conjunction with a driver's license check or registration check conducted at a checkpoint established to stop all drivers on a certain road for a period of time. A citation for a violation of this article must not be issued without citing the violation that initially caused the officer to effect the enforcement stop.

(C) A violation of this article does not constitute negligence per se or contributory negligence and is not admissible as evidence in a civil action.

Section 56-5-6550. No points provided for in Section 56-1-720 or any other provision of law may be assessed for a violation of this article.

(B) For six months after the effective date of this section, only warnings may be issued for violations of Article 48, Chapter 5, Title 56, Code of Laws of South Carolina, 1976.

(C)(1) The School Bus Transportation Study Committee created pursuant to Senate Bill 1152 of 1988, in addition to its other duties, shall continue to meet during fiscal year 1989-90 to evaluate the feasibility of installing lap seat belts and lap/shoulder safety belts on small school buses and school vans weighing less than ten thousand pounds, on large school buses manufactured after April 1, 1977, and on large and small school buses and school vans purchased by the State Department of Education after July 1, 1990. The committee also has the following responsibilities:

(a) Determine the feasibility of, cost of, and appropriate anchorage requirements for installing lap seat belts and lap/shoulder safety belts on large and small school buses and school vans as defined above;

(b) Determine if mandatory usage of seat belts on large and small school buses will improve the safety of school bus passengers and could be enforced;

(c) Study the potential liability, if any, of installing and Mandating seat belt usage on large and small school buses and school vans as defined above;

(d) Determine the effect that installation of and mandatory usage of seat belts on school buses would have on teaching students to form the 'buckle-up' habit when riding in or driving a motor vehicle.

(2) The committee shall report its findings to the House Education and Public Works Committee, the Senate Education Committee, the Department of Education, and the South Carolina Department of Highways and Public Transportation by January 1, 1990. All state agencies shall provide services the committee may require in conducting its study of seat belt installation and usage on school buses."

SECTION 48. For the purpose of recovering motor vehicle registration plates as required by Section 56-10-40 of the 1976 Code, the department may contract with or make working arrangements with local law enforcement agencies including sheriffs and municipal law enforcement departments for them to confiscate these plates, upon a contract or working arrangement being agreed to. The local law enforcement agencies are authorized to confiscate these plates. The local law enforcement agencies must be paid for this service in the manner agreed upon between them and the executive director from funds of the department which are to be used for this purpose.

SECTION 49. Section 38-77-280 of the 1976 Code, is further amended to read:

"Section 38-77-280. (A) Except as provided in subsection (B), all automobile insurers, including those insurance companies writing private passenger physical damage coverages only, shall make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to any an insured or qualified applicant who requests such the coverage.

Collision coverage must have a mandatory deductible of two hundred fifty dollars, but an insured or qualified applicant, at his option, may select an additional deductible in appropriate increments up to one thousand dollars.

Comprehensive coverage or fire, theft, and combined additional coverages may not be subject to any must have a mandatory deductible of two hundred fifty dollars, but an insured, at his option, may select a an additional deductible of from fifty to one thousand dollars in appropriate increments up to one thousand dollars. This deductible does not apply to auto safety glass. It is an unfair trade practice, as described in Sections 38-57-30 and 38-57-40, for an insurer or an agent to sell collision insurance with a fifty dollar deductible or, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible unless the insured is notified at the time of application of the savings which may be realized if the applicant or the insured selects a higher deductible. This notice is required only at the time of the initial sale and must be in a form approved by the Chief Insurance Commissioner. An insurer may offer insureds lower deductibles at the insurer's option.

(B) Notwithstanding subsection (A) and Sections 38-77-110 and 38-77-920, automobile insurers may refuse to write automobile physical damage insurance coverage, including automobile comprehensive physical damage, collision, fire, theft, and combined additional coverage, for any applicant or existing policyholder, on renewal, for a motor vehicle customarily operated by an individual, either the named insured or any other operator not excluded in accordance with Section 38-77-340 and who resides in the same household, where one or more of the conditions or factors prescribed in Section 38-73-455 exist. In addition, automobile insurers may refuse to write physical damage insurance coverage to any applicant or existing policyholder, on renewal, who has collected benefits provided under any automobile insurance physical damage coverage during the thirty-six months immediately preceding the effective date of coverage, for two or more total fire losses or two or more total theft losses.

(C) Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be cancelled at any time during the policy period by reason of the factors or conditions described in Section 38-73-455(A) or Section 38-77-280 (B) which existed prior to before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.

(D) No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.

(E) Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed and approved by the Chief Insurance Commissioner. Any applicant or existing policyholder, to be charged this different rate, must be denied the coverage pursuant to subsection (B) at the rate provided in Section 38-33-457 Section 38-73-457. No policy of automobile insurance which includes physical damage insurance coverages offered to an applicant or existing policyholder pursuant to this paragraph may be ceded to the facility.

(F) A carrier may not cede collision coverage, comprehensive coverage, or fire, theft, and combined additional coverages with a deductible of less than two hundred fifty dollars. An insured or qualified applicant may select an additional deductible in appropriate increments up to one thousand dollars. However, the mandatory deductible does not apply to safety glass."

SECTION 50. Section 38-59-40 of the 1976 Code is amended to read:

"Section 38-59-40. (1) In the event of a claim, loss, or damage which is covered by a policy of insurance or a contract of a nonprofit hospital service plan or a medical service corporation and the refusal of the insurer, plan, or corporation to pay the claim within ninety days after a demand has been made by the holder of the policy or contract and a finding on suit of the contract made by the trial judge that the refusal was without reasonable cause or in bad faith, the insurer, plan, or corporation is liable to pay the holder, in addition to any sum or any amount otherwise recoverable, all reasonable attorneys' fees for the prosecution of the case against the insurer, plan, or corporation. The amount of reasonable attorneys' fees must be determined by the trial judge and the amount added to the judgment. The amount of the attorneys' fees may not exceed one-third of the amount of the judgment or the sum of two thousand five hundred dollars, whichever is less.

(2) If attorneys' fees are allowed and, on appeal to the Supreme Court by the defendant, the judgment is affirmed, the Supreme Court shall allow to the respondent an additional sum as the court adjudges reasonable as attorneys' fees of the respondent on the appeal.

(3) Nothing in this section may be construed to alter or affect the Tyger River Pine Co. v. Maryland Casualty Co., 161 53E 491, 163 SC 229, doctrine.

(4) This section applies to cases filed or removed to federal court and cases appealed in the federal court system."

SECTION 51. Article 3, Chapter 77, Title 38 of the 1976 Code is amended by adding:

"Section 38-77-111. An automobile insurer may cede the coverages of an automobile insurance policy that it is mandated to write to the Reinsurance Facility but it may not cede coverages under a policy that it is not mandated by law to write. However, if an insurer cedes a coverage it is mandated to write by law, it shall cede all coverages under that policy that it is mandated to write."

SECTION 52. Section 38-77-30(14) of the 1976 Code, as last amended by Act 399 of 1988, is further amended to read:

"(14) 'Underinsured motor vehicle' means a motor vehicle as to which there is bodily injury liability insurance or a bond applicable to at the time of the accident in an amount of at least that specified in Section 38-77-140 and the amount of the insurance or bond: is less than the amount of the insureds' damages (a) is less than the limit for underinsured motorist coverage under the insured's policy; or (b) has been reduced by payments to persons, other than an insured, injured in the accident to an amount less than the limit for underinsured motorist coverage under the insured's policy."

SECTION 53. Section 38-77-170 of the 1976 Code is amended to read:

"Section 38-77-170. If the owner or operator of any motor vehicle which causes bodily injury or property damage to the insured is unknown, there is no right of action or recovery under the uninsured motorist provision, unless:

(1) the insured or someone in his behalf has reported the accident to some appropriate police authority within a reasonable time, under all the circumstances, after its occurrence;

(2) the injury or damage was caused by physical contact with the unknown vehicle, or the accident must have been witnessed by someone other than the owner or operator of the insured vehicle; provided however, the witness must sign an affidavit attesting to the truth of the facts of the accident contained in the affidavit;

(3) the insured was not negligent in failing to determine the identity of the other vehicle and the driver of the other vehicle at the time of the accident.

The following statement must be prominently displayed on the face of the affidavit provided in subitem (2) above: A FALSE STATEMENT CONCERNING THE FACTS CONTAINED IN THIS AFFIDAVIT MAY SUBJECT THE PERSON MAKING THE FALSE STATEMENT TO CRIMINAL PENALTIES AS PROVIDED BY LAW."

SECTION 54. Section 38-39-70(a)(2) of the 1976 Code is amended to read:

"(2) Must be dated, and signed by the insured, and notarized by a notary public;".

SECTION 55. Section 38-77-630 of the 1976 Code is amended to read:

"Section 38-77-630. (A) A policy, other than a renewal policy, may be ceded to the South Carolina Reinsurance Facility only when the application is accompanied by either a renewal notice from another insurer or a motor vehicle report (MVR), issued within sixty days of the date of the binder at the point of sale, together with the full premium correctly reflecting the facts shown on the MVR or consistent with the premium quoted in the renewal notice.

(B) To facilitate compliance with this requirement, a carrier may shall require an applicant other than a renewal applicant, to obtain the MVR or a renewal notice from the insurance carrier who provided the insurance coverage then in effect and present it to the agent upon making an application. In those cases, the applicant must be credited for the amount paid for the MVR.

(C) In the case of an applicant who holds a valid driver's license from another state but is not yet licensed in this State, a copy of this out-of-state driver's license may be submitted with the application in lieu of the MVR or renewal notice above required in this section. The MVR, renewal notice, or copy of the applicant's driver's license, as applicable, must be kept with the application by the carrier in that the manner as the facility may require requires."

SECTION 56. Section 38-73-470 is repealed effective March 1, 1991.

SECTION 57. Sections 38-77-240, 38-77-250, 38-77-290, 38-77-300, 38-77-310, and subsections (b) and (c) of Section 38-77-260 are repealed.

SECTION 58. Sections 17, 20, 28, 44, 49, 51, 52, and 55 of this act take effect October 1, 1989.

SECTION 59. Except as otherwise specifically provided herein, this act takes effect July 1, 1989.

/s/ Edward E. Saleeby             /s/ Robert B. Brown
/s/ Thomas L. Moore               /s/ Theodore T. Mappus, Jr.
/e/ Mike Mullinax                 /s/ James J. Bailey
On Part of the Senate.              On Part of the House.

Reps. R. BROWN, J. BAILEY and MAPPUS explained the Conference Report.

RULE 3.9 INVOKED

Rep. McLELLAN moved that Rule 3.9 be invoked. The motion was seconded by ten members and the SPEAKER ordered that the absent members be sent for.

Reps. R. BROWN, MAPPUS and J. BAILEY continued explaining the Free Conference Report.

Rep. WALDROP spoke against the Free Conference Report and moved to adjourn debate upon the Report.

Rep. R. BROWN moved to table the motion to adjourn debate and demanded the yeas and nays, which were taken resulting as follows:

Yeas 57; Nays 53

Those who voted in the affirmative are:

Alexander, M.O.        Alexander, T.C.        Altman
Bailey, J.             Bailey, K.             Barber
Beasley                Bennett                Blackwell
Boan                   Brown, R.              Cork
Farr                   Foster                 Gregory
Harris, J.             Hayes                  Hendricks
Hodges                 Huff                   Jaskwhich
Johnson, J.W.          Keegan                 Keyserling
Kirsh                  Klapman                Kohn
Manly                  Mappus                 Martin, D.
Martin, L.             Mattos                 McEachin
McElveen               McLellan               McTeer
Neilson                Nesbitt                Nettles
Rama                   Rogers, J.             Rogers, T.
Rudnick                Sheheen                Short
Simpson                Smith                  Snow
Taylor                 Tucker                 Waites
Washington             Whipper                White
Wilkes                 Wilkins                Winstead

Total - 57

Those who voted in the negative are:

Bailey, G.             Baker                  Barfield
Baxley                 Blanding               Brown, G.
Brown, H.              Brown, J.              Bruce
Burch                  Burriss, M.D.          Carnell
Chamblee               Clyborne               Cole
Cooper                 Corbett                Corning
Davenport              Elliott                Faber
Fair                   Fant                   Felder
Gentry                 Gordon                 Hallman
Harris, P.             Harwell                Haskins
Hearn                  Johnson, J.C.          Kay
Keesley                Lanford                Limehouse
Littlejohn             McAbee                 McBride
McCain                 McGinnis               McLeod
Quinn                  Rhoad                  Sharpe
Stoddard               Sturkie                Townsend
Vaughn                 Waldrop                Wilder
Wofford                Wright

Total - 53

So the motion to adjourn debate was tabled.

POINT OF ORDER

Rep. HASKINS raised the Point of Order that the Free Conference Report was out of order as it was not in compliance with Rule 5.15 in that it had not been printed in the Journal.

The SPEAKER sustained the Point of Order.

RULE 5.15 NOT WAIVED

Rep. HUFF moved to waive Rule 5.15.

The yeas and nays were taken resulting as follows:

Yeas 55; Nays 50

Those who voted in

Alexander, M.O.        Alexander, T.C.        Bailey, J.
Bailey, K.             Barber                 Baxley
Beasley                Bennett                Boan
Brown, R.              Chamblee               Cork
Elliott                Farr                   Foster
Gentry                 Gregory                Harris, J.
Hayes                  Hearn                  Hendricks
Hodges                 Huff                   Jaskwhich
Johnson, J.W.          Keyserling             Klapman
Kohn                   Mappus                 Martin, L.
Mattos                 McEachin               McElveen
McLellan               McTeer                 Neilson
Nesbitt                Nettles                Rama
Rogers, J.             Rogers, T.             Rudnick
Sheheen                Short                  Simpson
Smith                  Stoddard               Tucker
Waites                 Washington             Whipper
White                  Wilder                 Wilkins
Winstead

Total-55

Those who voted in the negative are

Altman                 Bailey, G.             Baker
Barfield               Blackwell              Blanding
Brown, G.              Brown, H.              Brown, J.
Burch                  Burriss, M.D.          Carnell
Clyborne               Cole                   Cooper
Corbett                Corning                Davenport
Faber                  Fair                   Fant
Felder                 Ferguson               Gordon
Hallman                Harris, P.             Harwell
Haskins                Johnson, J.C.          Kay
Keegan                 Keesley                Kirsh
Lanford                Limehouse              Littlejohn
McAbee                 McBride                McCain
McGinnis               McLeod                 Quinn
Sharpe                 Sturkie                Townsend
Vaughn                 Waldrop                Wilkes
Wofford                Wright

Total-50

So, having failed to receive the necessary two-thirds vote, Rule 5.15 was not waived.

The SPEAKER then ordered the Free Conference Report printed in the Journal.

SPECIAL INTRODUCTION

Reps. RHOAD and WILDER introduced Mr. Woody Binnicker and Mr. Bobby Frierson from Denmark and recognized them for their accomplishments as parachute jumper and pilot in setting the world's record for the number of parachute jumps from a plane in a twenty-four-hour period.

H. 4125-AMENDED, ADOPTED AND
SENT TO THE SENATE

On motion of Rep. J. ROGERS with unanimous consent, the following was taken up for immediate consideration:

H. 4125 - Reps. Sheheen, J. Rogers, McLellan, Wilkins, R. Brown, Moss, Beasley, Bennett and Huff: A CONCURRENT RESOLUTION TO PROVIDE THAT WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 1, 1989, AT 5:00 P.M. THEY SHALL STAND ADJOURNED TO MEET AT 10:00 A.M. ON JUNE 6, 7, 8, 9, 13, 14, 15, AND 16, 1989, FOR CONSIDERATION OF LOCAL UNCONTESTED MATTERS HAVING UNANIMOUS CONSENT OF THE MEMBERS OF AFFECTED DELEGATIONS AND FOR THE CONSIDERATION OF CONGRATULATORY OR SYMPATHY RESOLUTIONS AND TO PROVIDE THAT WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON FRIDAY, JUNE 16, 1989, THEY SHALL STAND ADJOURNED TO MEET IN REGULAR STATEWIDE SESSION AT 11:30 A.M. ON TUESDAY, JUNE 20, 1989, TO PROVIDE FOR THOSE ITEMS OF LEGISLATIVE BUSINESS IN ORDER ON JUNE 20 THROUGH JUNE 22, 1989, TO PROVIDE THAT THE PRESIDING OFFICERS OF EACH RESPECTIVE HOUSE MAY CALL THEIR HOUSE INTO SESSION FOR CERTAIN MATTERS BETWEEN JUNE 1, 1989, AND JUNE 20, 1989, AND TO PROVIDE THAT WHEN THE GENERAL ASSEMBLY ADJOURNS ON THURSDAY, JUNE 22, 1989, NO LATER THAN 5:00 P.M., IT SHALL STAND ADJOURNED SINE DIE.

Be it resolved by the House of Representatives, the Senate concurring:

That the mandatory sine die adjournment date for the General Assembly prescribed in Section 2-1-180 of the 1976 Code is extended, as authorized by that Code Section, to permit the General Assembly to continue in session under the following terms and conditions:

(1)When the respective Houses adjourn on Thursday, June 1, 1989, at 5:00 p.m., they shall stand adjourned to meet at 10:00 a.m. on June 6, 7, 8, 9, 13, 14, 15, and 16, 1989, for consideration of local uncontested matters which have unanimous consent of the members of the delegation affected by the legislation, and for consideration of resolutions expressing sympathy or congratulations.

(2)When the respective Houses of the General Assembly adjourn on June 16, 1989, they shall stand adjourned to meet in regular statewide session at 11:30 a.m. on Tuesday, June 20, 1989, and may continue in session daily for the consideration of:

(a) gubernatorial vetoes;

(b) receipt and confirmation of appointments;

(c) appointment of conference and free conference committees;

(d) consideration of conference and free conference reports;

(e) ratification of acts;

(f) local matters if the affected delegation is unanimous;

(g)elections previously set by the General Assembly;

(h) consideration of joint resolutions proposing amendments to the Constitution of South Carolina.

However, the presiding officers of the respective houses may, between June 1, 1989, and June 20, 1989, call their respective houses into session only for the consideration of matters provided for in this resolution.

(3)When the General Assembly adjourns on Thursday, June 22, 1989, no later than 5:00 p.m., and it may stay in session no later than 5:00 p.m., it shall stand adjourned sine die.

Rep. L. MARTIN proposed the following Amendment No. 1 (Doc. No. 5252U), which was adopted.

Amend the Concurrent Resolution, as and if amended, item (2), page 2, by adding an appropriately lettered subitem to read:

/( ) bills granting authority to the Secretary of State to restore charters./

Renumber subitems to conform.

Amend title to conform.

Rep. L. MARTIN explained the amendment.

The amendment was then adopted.

The Concurrent Resolution, as amended, was adopted and ordered sent to the Senate.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 30, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has appointed Senators McLeod, Moore and Bryan of the Committee of Free Conference on the part of the Senate on S. 267:
S. 267 -- Senator McLeod: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 95 SO AS TO PROVIDE FOR THE MANAGEMENT OF INFECTIOUS WASTE TO AMEND SECTION 51, PART II OF ACT 658 OF 1988, RELATING TO THE COMMERCIAL DISPOSAL OF INFECTIOUS WASTE BY INCINERATION, SO AS TO PROVIDE FOR THE TREATMENT OF INFECTIOUS WASTE INSTEAD OF COMMERCIAL DISPOSAL.
Very respectfully,
President

Received as information.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 30, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has appointed Senators Hayes, Pope and Stilwell of the Committee of Free Conference on the part of the Senate on H. 3099:
H. 3099 -- Rep. Hayes: A BILL TO AMEND SECTION 38-53-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SURRENDER OF A DEFENDANT WHEN THE SURETY HOLDING THE BOND WISHES TO REMOVE THE BOND, SO AS TO PROVIDE FOR A HEARING BEFORE A JUDICIAL OFFICER BEFORE THE DEFENDANT'S RECOMMITMENT TO CUSTODY.
Very respectfully,
President

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 30, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on H. 3099:
H. 3099 -- Rep. Hayes: A BILL TO AMEND SECTION 38-53-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SURRENDER OF A DEFENDANT WHEN THE SURETY HOLDING THE BOND WISHES TO REMOVE THE BOND, SO AS TO PROVIDE FOR A HEARING BEFORE A JUDICIAL OFFICER BEFORE THE DEFENDANT'S RECOMMITMENT TO CUSTODY.
Very respectfully,
President

H. 3099-ORDERED ENROLLED FOR RATIFICATION

The report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification.

SPEAKER PRO TEMPORE IN CHAIR
H. 3739 SENATE AMENDMENTS AMENDED
AND RETURNED TO THE SENATE

The Senate Amendments to the following Bill were taken up for consideration.

H. 3739 -- Reps. Sheheen, Huff, Rama, Felder, Smith, Hodges, G. Brown, Tucker, Wilder, Harvin, Keesley, Snow, Waites, Mappus, McCain, McEachin, McElveen, Jaskwhich, McLellan, Elliott, J.W. Johnson, Hendricks, Rhoad, McAbee, Burch, J. Bailey, Harwell, Wright, T. Rogers, R. Brown, Stoddard, McGinnis, Nettles, Lockemy, Gregory and Keyserling: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10 TO TITLE 4 SO AS TO PROVIDE FOR THE LEVY OF A SALES AND USE TAX IN A COUNTY AREA BY SETTING FORTH DEFINITIONS, PURPOSES, AND REQUIREMENTS FOR A REFERENDUM, COLLECTION, USES, AND DISTRIBUTION.

Rep. SHEHEEN proposed the following Amendment No. 28 (Doc. No. 5249U), which was adopted.

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

/SECTION 1. Title 4 of the 1976 Code is amended by adding:

"CHAPTER 10
Local Sales and Use Tax

Section 4-10-10. For purposes of this chapter:

(l) 'County area' means a county and all municipalities within its geographical boundaries.

(2) 'County' means the unincorporated areas of a county area or county government as the use of the term dictates.

(3) 'Ordinary millage' means the millage levied by a county or municipality on real and personal property to pay the operating costs of providing services including, but not limited to, courts and judicial administration; law enforcement and criminal justice administration; correctional facilities; fire protection; disaster preparedness; land use planning and code enforcement; solid waste collection and disposal; hospital, health, and emergency medical services, indigent care, and other public health and social services; parks, recreational activities and facilities, and zoological gardens; transportation; road construction, maintenance, and repair; water, sanitary sewer, storm drainage and sediment control, and other public works; technical education centers; libraries; voter registration and elections; economic development; and general administration.

(4) 'Municipality' means a municipal corporation created pursuant to Chapter 1 of Title 5 or a municipal government as the use of the term dictates.

(5) 'Minimum distribution' means an amount equal to one million five hundred thousand dollars for the first distribution and thereafter adjusted annually on a cumulative basis by a percentage equal to the increase in revenues credited to the Education Improvement Act Fund for the most recently completed fiscal year over the revenues credited to that fund in the preceding fiscal year.

(6) 'Population' means population as determined in the most recent United States Decennial Census.

Section 4-10-20. A county, upon referendum approval, may levy a sales and use tax of one percent on the gross proceeds of sales within the county area which are subject to tax under Chapter 35 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The sale of items with a maximum tax levied in accordance with Sections 12-35-516, 12-35-518, 12-35-519, and Article 11 of Chapter 35 of Title 12 are exempt from the local sales and use tax. The adopted rate also applies to tangible personal property subject to the use tax in Section 12-35-810. Taxpayers required to remit taxes under Section 12-35-810 shall identify the county or municipality in the county area in which tangible personal property purchased at retail is stored, used, or consumed in this State. Utilities are required to report sales in the county or municipality in which consumption of the tangible personal property occurs. A taxpayer subject to the tax imposed by Article 3, Chapter 35 of Title 12, who owns or manages rental units in more than one county or municipality shall separately report in his sales tax return the total gross proceeds from business done in each county or municipality.

Section 4-10-25. The gross proceeds of sales of tangible personal property delivered before the imposition date of the tax levied under Section 4-10-20 in a county, either under the terms of a construction contract executed before the imposition date, or a written bid submitted before the imposition date, culminating in a construction contract entered into before or after the imposition date, are exempt from the local sales and use tax provided in Section 4-10-20 if a verified copy of the contract is filed with the Tax Commission within six months after the imposition of the local sales and use tax.

Section 4-10-30. (A) The county election commission in each county shall conduct a referendum on the second Tuesday in November on the question of implementing the local option sales and use tax within the county area. The state election laws apply to the referendum mutatis mutandis. The county election commission shall publish the results of the referendum and certify them to the county council. The sales and use tax must not be imposed in the county area, unless a majority of the qualified electors voting in the referendum approve the question.

(B) The ballot must read substantially as follows:

'Must a one percent sales and use tax be levied in __________ County for the purpose of rolling back county and municipal ad valorem property taxes and for the purpose of funding county and municipal operations in the_________ County area?

Yes []
No []

(C) If the question is not approved at the initial referendum, the county council may call for another referendum on the question. However, following the initial referendum, a referendum for this purpose must not be held more often than once in twelve months and must be held on the second Tuesday in November.

(D) Two weeks before the referendum is held, however, the county council shall have published in a newspaper of general circulation, the dollar savings on the yearly property tax bill the proposed rollback will give to the following groups of property owners in their county:

(1) a primary residence valued at fifty thousand dollars and one hundred thousand dollars;

(2) a commercial facility valued at one hundred thousand dollars;

(3) an industrial facility valued at one million dollars.

The information and format must be prepared by the South Carolina Tax Commission and must show the above information for the respective county and for each municipality within that county.

Section 4-10-40. (A) The revenue allocated to the Property Tax Rollback Fund as provided for in Section 4-10-90, must be distributed to the county and the municipalities in the county area as follows:

(1) sixty-seven percent to the county;

(2) thirty-three percent to the municipalities in the county area so that each municipality receives an amount equal to what its percentage of population bears to the total population in all the municipalities in the county area.

(B) The revenue received by a county or municipality from the Property Tax Rollback Fund must be used to adjust the ordinary millage rate of the county and municipality as applied to all real and personal property not exempt from taxation. Annually, a county or municipality receiving revenue from the Property Tax Rollback Fund shall compute the ordinary millage rate which when combined with other revenues reasonably expected to be received by the county or municipality during the year, other than the revenue received from the Local Sales and Use Tax Fund, as provided for in Section 4-10-90, provides revenues sufficient to defray the expenses funded by the ordinary millage levy. The millage rate so ascertained then must be reduced by a millage rate which, if levied against all real and personal property which is not exempt from taxation in the county area or municipality, produces an amount equal to the funds received by the county or municipality from the Property Tax Rollback Fund. The rollback of ordinary millage rates must be based on actual sales and use tax collection allocated to the Property Tax Rollback Fund for the preceding fiscal year. A county and municipality may use revenue received from the County/Municipal Revenue Fund, as provided for in Section 4-10-90, to further reduce the ordinary millage rate.

(C) The ad valorem tax bill of the county and the municipality must show the:

(1) total millage rate as first computed without taking into consideration the revenue received from the Local Sales and Use Tax Fund;

(2) adjustment in the millage rate resulting from the revenue received from the Property Tax Rollback Fund;

(3) final adjusted millage rate.

(D) All interest accruing to the funds received by a county or a municipality from the Property Tax Rollback Fund must be used to adjust the millage rate as provided for in this section.

(E) If the ordinary millage rate levied by the county or municipality is reduced to zero, then revenue derived from the Property Tax Rollback Fund may be used by the county or municipality for a lawful public purpose, including the retirement of bonded indebtedness.

(F) Ad valorem taxation for primary and secondary schools is not affected by the provisions of this section.

(G) If a municipality has adopted or adopts a redevelopment plan for a tax increment financed redevelopment project pursuant to Chapter 6 of Title 31, a deficiency resulting from the application of this section in the tax allocation fund or separate fund established to pay project costs must be funded from the municipality's allocation from the County/Municipal Revenue Fund each year so as to provide full funding for the project. A tax increment financing bond holder, agent, or trustee may enforce this requirement.

Section 4-10-50. (A) The revenue generated in a county area and set aside and allocated to the County/Municipal Revenue Fund must be distributed to the county and the municipalities in the county area as follows:

(1) fifty percent based upon the location of the sale;

(2) fifty percent based on population.

(B) The population of the county is the population of the county area, and the population of the municipalities is the population within the corporate boundaries of the municipalities in the county area.

Section 4-10-60. (A) At the end of each fiscal year and before August first a percentage, to be determined by the State Treasurer, must be withheld from those county areas collecting five million dollars or more from the sales and use tax authorized by this chapter, and that amount must be distributed to assure that each county area receives a minimum distribution. The difference between the minimum distribution and the actual collections within a county area must be distributed to the eligible units within the county area based on population as provided for in this chapter.

(B) The amount withheld from those county areas collecting five million dollars or more must be apportioned among the county and the municipalities in the county area in the same proportion as those units received remittances as provided in this chapter. An amount withheld in excess must be distributed back to the county areas whose collections exceed five million dollars based on the ratio of the funds available to the collections by each county area.

(C) As a condition precedent to a county area being subject to an assessment by the State Treasurer or being a recipient of revenue pursuant to this section, the county area must have implemented the sales and use tax as authorized by this chapter.

(D) If the total number of county areas adopting the sales and use tax authorized by this chapter, which are projected by the South Carolina Tax Commission to collect five million dollars or more, generate fifty percent or less of the projected total statewide collections from the levy of a one percent sales and use tax, then those county areas generating five million dollars or more must be assessed five percent of the amount generated in the county area, and that amount must be used as a supplement to those county areas generating less than the minimum distribution. The supplement to those county areas generating less than the minimum distribution must be distributed so that each county area receives an amount equal to what its percentage of population bears to the total population in all of the county areas generating less than the minimum distribution which have implemented the sales and use tax authorized by this chapter. Once the amount of the supplement has been determined for each of the county areas to be supplemented, then the supplement must be distributed to the eligible units within the county area based on population as provided for in this chapter. However, the supplement to the county area combined with collections within the county area may not exceed the minimum distribution.

Section 4-10-80. Annually by August fifteenth the State Treasurer shall report to the county chief administrative officers, county treasurers, and municipal clerks in those county areas which levy the sales and use tax authorized by this chapter the total amount of revenue collected as reported by the Tax Commission in the county area for the preceding fiscal year.

Section 4-10-90. (A) The Tax Commission shall administer and collect the local sales and use tax in the manner that sales and use taxes are administered and collected pursuant to Chapter 35 of Title 12. The commission may prescribe forms and promulgate regulations in conformity with this chapter, including tables prescribing the amount to be added to the sales price. The county shall notify the Tax Commission and the State Treasurer through delivery of a certified copy of a resolution adopted by the county following the referendum within ten days of the date of the referendum for the tax to be imposed at the beginning of the next quarter. Failure to deliver the resolution within the ten days shall cause a delay of the imposition until the first day of the subsequent calendar quarter. Notwithstanding the provisions of this subsection, the local sales and use tax may not be imposed before July first following the first referendum held pursuant to Section 4-10-30.

(B) All revenues collected by the Tax Commission on behalf of a county area pursuant to this chapter must be remitted to the State Treasurer to be credited to a Local Sales and Use Tax Fund which is separate and distinct from the state general fund. After deducting the amount of refunds made and the costs to the Tax Commission of administering the tax, not to exceed one half of one percent of the fund, the State Treasurer shall deposit the revenue into the Local Sales and Use Tax Fund which consists of two separate funds: the Property Tax Rollback Fund and the County/Municipal Revenue Fund. Fifty percent of the revenue generated in a county area by the sales and use tax must be allocated to the Property Tax Rollback Fund and fifty percent to the County/Municipal Revenue Fund. The State Treasurer shall distribute monthly the revenues according to the provisions of this chapter.

(C) The Tax Commission shall furnish data to the State Treasurer and to the governing bodies of the counties and municipalities receiving revenues for the purpose of calculating distributions and estimating revenues. The information which may be supplied to counties and municipalities includes, but is not limited to, gross receipts, net taxable sales, and tax liability by taxpayers. Information by taxpayer received by appropriate county or municipal officials is considered confidential and is governed by the provisions of Section 12-54-240. Anyone violating this section is subject to the penalties provided in Section 12-54-240. If because of refunds by the Tax Commission or for any other reason, an overpayment is made to a county or municipality, the State Treasurer shall withhold from subsequent payments a sufficient amount to adjust for the overpayment and direct funds to the proper entity. However, all corrections of allocations from the Local Sales and Use Tax Fund must be made within the current fiscal year.

Section 4-10-100. In county areas where the local sales and use tax is imposed, an additional five thousand dollars is added to the homestead exemption allowed pursuant to Section 12-37-250. The reimbursement provisions applicable to the homestead exemption do not apply to revenue losses resulting from this additional exemption."

SECTION 2. Section 12-35-580 of the 1976 Code is amended by adding at the end:

"For the purposes of this section the imposition of a local option sales tax provided for in Chapter 10 of Title 4 may not be taken into account."

SECTION 3. This act takes effect upon approval by the Governor./

Amend title to conform.

Rep. SHEHEEN explained the amendment.

The amendment was then adopted.

The Senate Amendments, as amended, were then agreed to and the Bill ordered returned to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4126 - Reps. McBride, Taylor, T. Rogers, Faber, M.D. Burriss, Waites, J. Brown, Corning, T.M. Burriss, Quinn and Hearn: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE REVEREND DR. JAMES ARTHUR HOLMES OF COLUMBIA FOR THE OUTSTANDING SERVICE AND CONTRIBUTIONS HE HAS PROVIDED TO HIS LOCAL COMMUNITY AND THE STATE OF SOUTH CAROLINA.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4127 -- Rep. Harvin: A CONCURRENT RESOLUTION EXPRESSING THE DEEPEST SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY AT THE DEATH OF THE HONORABLE JOSEPH HENRY KING, M.D., OF CLARENDON COUNTY AND EXTENDING HEARTFELT SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The following was introduced:

H. 4128 -- Reps. Harvin, Clyborne and McTeer: A CONCURRENT RESOLUTION CONGRATULATING THE SOUTH CAROLINA STATE BOARD FOR TECHNICAL AND COMPREHENSIVE EDUCATION FOR ITS ROLE IN CAUSING SOUTH CAROLINA TO BE CHOSEN BY THE "KEEP AMERICA WORKING" PROJECT OF THE AMERICAN ASSOCIATION OF COMMUNITY AND JUNIOR COLLEGES AS THE TOP STATE/EMPLOYER/INDUSTRY PARTNERSHIP.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

HOUSE RESOLUTION

On motion of Rep. FAIR, with unanimous consent, the following was taken up for immediate consideration:

H. 4129 -- Rep. Fair: A HOUSE RESOLUTION TO AUTHORIZE THE YOUNG MEN'S CHRISTIAN ASSOCIATION TO USE THE CHAMBER OF THE HOUSE OF REPRESENTATIVES AND THE CONFERENCE AND HEARING ROOMS OF THE BLATT BUILDING ON THURSDAY, NOVEMBER 30, 1989, FRIDAY, DECEMBER 1, 1989, AND SATURDAY, DECEMBER 2, 1989, TO CONDUCT A YOUTH IN GOVERNMENT PROGRAM.

Whereas, forty-two states have successful Youth in Government programs and in 1989 over forty-one thousand young people participated in model legislative programs sponsored by the Young Men's Christian Association; and

Whereas, the Youth in Government program is designed to provide a first-hand experience in the state legislature and government affairs for high school students; and

Whereas, students taking part in the program will run for statewide office, pass legislation, and organize their own government; and

Whereas, the purpose of the Young Men's Christian Association's Youth in Government program is to encourage our youth to develop enthusiasm and appreciation about government and community affairs. Now, therefore, Be it resolved by the House of Representatives:

That the members of the House authorize the Young Men's Christian Association to use the House Chamber and the conference and hearing rooms of the Blatt Building on Thursday, November 30, 1989, Friday, December 1, 1989, and Saturday, December 2, 1989, to conduct a Youth in Government Program. No charge may be imposed for the use of the House Chamber or the Blatt Building conference or hearing rooms by the Young Men's Christian Association for this purpose.

Be it further resolved that State House security forces and the Sergeant at Arms of the House shall provide assistance and access as necessary for this meeting in accordance with applicable procedures.

The Resolution was adopted.

INTRODUCTION OF BILLS

The following Bills were introduced, read the first time, and referred to appropriate committees:

H. 4130 -- Reps. Wright, Cork, Quinn, Hearn and Rama: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10 TO CHAPTER 25 OF TITLE 50 SO AS TO REGULATE THE LAWFUL NOISE LEVEL AND THE EXHAUST SYSTEMS OF MOTORS USED TO PROPEL WATERCRAFT; AND TO REPEAL ARTICLE 11, CHAPTER 25 OF TITLE 50 RELATING TO MOTORBOATS ON LAKE WYLIE.

Referred to Committee on Labor, Commerce and Industry.

H. 4131 -- Rep. Quinn: A BILL TO AMEND ACT 140 OF 1969, AS AMENDED, RELATING TO SCHOOL DISTRICTS AND THE COUNTY LIBRARY IN RICHLAND COUNTY, SO AS TO PROVIDE THAT BEFORE THE ALTERATION OF THE BOUNDARIES OF THE SCHOOL DISTRICTS IN RICHLAND COUNTY, A REFERENDUM IN EACH SCHOOL DISTRICT IN RICHLAND COUNTY AFFECTED BY THE CHANGE MUST BE CONDUCTED, PROVIDE FOR A METHOD OF INITIATING THE REFERENDUM, PROVIDE THAT THE RICHLAND COUNTY LEGISLATIVE DELEGATION SHALL INTRODUCE APPROPRIATE LEGISLATION ADDRESSING THE ALTERATION OF THE BOUNDARIES OF THE SCHOOL DISTRICTS IN THE COUNTY IF A MAJORITY OF THE QUALIFIED ELECTORS IN EACH DISTRICT AFFECTED BY THE CHANGE IN RICHLAND COUNTY FAVOR THEIR ALTERATION, PROVIDE A SCHEDULE FOR CONDUCTING THE REFERENDUM, AND TO PROVIDE THAT IF THE GENERAL ASSEMBLY BY ACT ALTERS ANY SCHOOL DISTRICT BOUNDARIES IN RICHLAND COUNTY OTHER THAN AS PROVIDED ABOVE, THESE ALTERATIONS MUST BE APPROVED BY THE QUALIFIED ELECTORS OF THE DISTRICTS CONCERNED BEFORE THEY MAY TAKE EFFECT.

On motion of Rep. QUINN, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 4132 -- Rep. J.W. Johnson: A BILL TO AMEND SECTION 24-21-480, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RESTITUTION CENTER PROGRAM, SO AS TO REVISE THE LENGTH OF TIME THE OFFENDER MUST BE IN THE PROGRAM FOR VARIOUS OFFENSES.

Referred to Committee on Judiciary.

H. 4133 -- Rep. Sharpe: A BILL TO AMEND SECTION 56-5-2940, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PENALTY FOR DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, SO AS TO PROVIDE THAT THE PRESIDING JUDGE WHEN SETTING THE MINIMUM IMPRISONMENT TERMS OR PUBLIC SERVICE PERIODS IN INCREMENTS MAY ALLOW THE DEFENDANT TO SERVE THESE TERMS OR PERIODS ONLY ON WEEKDAY NIGHTS AND NOT ON WEEKENDS, AND TO PROVIDE EXCEPTIONS.

Referred to Committee on Judiciary.

REPORT OF STANDING COMMITTEE

Rep. FOSTER, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report, on:

S. 784 -- Senator Lourie: A JOINT RESOLUTION TO DIRECT THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO ERECT CERTAIN DIRECTIONAL SIGNS IN RICHLAND COUNTY RELATING TO THE LOCATION OF THE LUTHERAN THEOLOGICAL SOUTHERN SEMINARY.

S. 784 - ORDERED TO THIRD READING

On motion of Rep. HASKINS, with unanimous consent, the following Joint Resolution was taken up for immediate consideration.

S. 784 -- Senator Lourie: A JOINT RESOLUTION TO DIRECT THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO ERECT CERTAIN DIRECTIONAL SIGNS IN RICHLAND COUNTY RELATING TO THE LOCATION OF THE LUTHERAN THEOLOGICAL SOUTHERN SEMINARY.

The Joint Resolution was read the second time and ordered to third reading.

Rep. L. MARTIN moved that the House recede until 2:00 P.M., which was adopted.

THE HOUSE RESUMES

At 2:00 P.M. the House resumed, the SPEAKER in the Chair.

POINT OF QUORUM

The question of a quorum was raised.

A quorum was later present.

MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 30, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on S. 643, and the Report having been adopted by both Houses:
S. 643 - Senator Lindsay: A BILL TO AMEND SECTIONS 37-2-416 AND 37-3-408, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHANGE IN TERMS OF REVOLVING CHARGE AND LOAN ACCOUNTS, SO AS TO DELETE THE REQUIREMENT THAT A CONSUMER INCURS ADDITIONAL DEBT AFTER NOTIFICATION OF A CHANGE IN TERMS, AND REQUIRE THE WRITTEN DISCLOSURE OF A CHANGE IN TERMS TO STATE THAT IF THE CONSUMER DOES NOT WANT TO CONTINUE THE REVOLVING ACCOUNT UNDER THE NEW TERMS THE CREDITOR WILL TERMINATE THE ACCOUNT AND PERMIT THE CONSUMER TO PAY THE EXISTING BALANCE UPON THE TERMS IN EFFECT BEFORE THE CHANGE IN TERMS ON THE WRITTEN REQUEST OF THE CONSUMER.
has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

S. 267-FREE CONFERENCE POWERS GRANTED

Rep. SHARPE moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request.

S. 267 -- Senator McLeod: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 95 SO AS TO PROVIDE FOR THE MANAGEMENT OF INFECTIOUS WASTE; TO AMEND SECTION 51, PART II OF ACT 658 OF 1988, RELATING TO THE COMMERCIAL DISPOSAL OF INFECTIOUS WASTE BY INCINERATION, SO AS TO PROVIDE FOR THE TREATMENT OF INFECTIOUS WASTE INSTEAD OF COMMERCIAL DISPOSAL.

The yeas and nays were taken resulting as follows:

Yeas 88; Nays 0

Those who voted in the affirmative are:

Alexander, M.O.        Alexander, T.C.        Altman
Bailey, G.             Bailey, J.             Baker
Barber                 Barfield               Baxley
Beasley                Bennett                Blackwell
Blanding               Boan                   Brown, G.
Brown, H.              Bruce                  Burch
Carnell                Chamblee               Clyborne
Cole                   Cooper                 Cork
Davenport              Fair                   Fant
Farr                   Felder                 Gentry
Glover                 Gordon                 Gregory
Hallman                Harris, J.             Harris, P.
Harwell                Hayes                  Hendricks
Hodges                 Jaskwhich              Johnson, J.C.
Johnson, J.W.          Keegan                 Keesley
Keyserling             Kohn                   Limehouse
Littlejohn             Lockemy                Mappus
Martin, D.             Martin, L.             Mattos
McAbee                 McCain                 McEachin
McElveen               McLeod                 McTeer
Moss                   Nesbitt                Nettles
Quinn                  Rama                   Rhoad
Rogers, T.             Sharpe                 Sheheen
Short                  Simpson                Smith
Snow                   Stoddard               Townsend
Tucker                 Vaughn                 Waites
Washington             Wells                  Whipper
White                  Wilder                 Wilkes
Williams, D.           Winstead               Wofford
Wright

Total-88

Those who voted in the negative are:

Total-0

So, the motion to resolve the Committee of Conference into a Committee of Free Conference was agreed to.

The Committee of Conference was thereby resolved into a Committee of Free Conference, the SPEAKER appointed Reps. SHARPE, McTEER and BENNETT to the Committee of Free Conference and a message was ordered sent to the Senate accordingly.

S. 267-FREE CONFERENCE REPORT ADOPTED

The following was received.

FREE CONFERENCE REPORT

The General Assembly, Columbia, S.C., May 30, 1989

THE COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 267 - Senator McLeod: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 95 SO AS TO PROVIDE FOR THE MANAGEMENT OF INFECTIOUS WASTE; TO AMEND SECTION 51, PART II OF ACT 658 OF 1988, RELATING TO THE COMMERCIAL DISPOSAL OF INFECTIOUS WASTE BY INCINERATION, SO AS TO PROVIDE FOR THE TREATMENT OF INFECTIOUS WASTE INSTEAD OF COMMERCIAL DISPOSAL.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the bill do pass amended as follows:

Strike all after the enacting words and insert:

/SECTION 1. Title 44 of the 1976 Code is amended by adding:

"CHAPTER 93
Infectious Waste Management

Section 44-93-10. This chapter may be cited as the 'South Carolina Infectious Waste Management Act'.

Section 44-93-20. (A) 'Infectious waste' or 'waste' means:

(1) sharps;

(2) cultures and stocks of infectious agents and associated biologicals;

(3) human blood and blood products;

(4) pathological waste;

(5) contaminated animal carcasses, body parts, and bedding of animals intentionally exposed to pathogens; and

(6) isolation waste pursuant to the 'Guidelines for Isolation Precautions in Hospitals', Centers for Disease Control.

Nothing in this chapter prohibits a generator of infectious wastes from designating and managing wastes in addition to those listed above as infectious wastes.

(B) 'Infectious waste management' means the systematic control of the collection, source separation, storage, transportation, treatment, and disposal of infectious wastes.

(C) 'Board' means the South Carolina Board of Health and Environmental Control which is charged with responsibility for implementation of the Infectious Waste Management Act.

(D) 'Commissioner' means the commissioner of the department or his authorized agent.

(E) 'Containment' means the packaging of infectious waste or the containers in which infectious waste is placed.

(F) 'Department' means the Department of Health and Environmental Control, including personnel of the department authorized by the board to act on behalf of the department or board.

(G) 'Dispose' means to discharge, deposit, inject, dump, spill, leak, or place any infectious waste into or on any land or water including groundwater so that the substance may enter the environment or be emitted into the air or discharged into any waters, including groundwater.

(H) 'Facility' means a location or site within which infectious waste is treated, stored, or disposed of.

(I) 'Generator' means the person producing infectious waste except waste produced in a private residence.

(J) 'Generator facility' means a facility that treats infectious waste that is owned or operated by a combination or association of generators, a nonprofit professional association representing generators or a nonprofit corporation controlled by generators, nonprofit foundation of hospitals or nonprofit corporations wholly owned by hospitals, if the waste is generated in this State and treatment is provided on a nonprofit basis.

(K) 'Person' means an individual, partnership, co-partnership, cooperative, firm, company, public or private corporation, political subdivision, agency of the State, county, or local government, trust, estate, joint structure company, or any other legal entity or its legal representative, agent, or assigns.

(L) 'Storage' means the actual or intended holding of infectious wastes, either on a temporary basis or for a period of time, in the manner as not to constitute disposing of the wastes.

(M) 'Transport' means the movement of infectious waste from the generation site to a facility or site for intermediate storage.

(N) 'Treatment' means a method, technique, or process designed to change the physical, chemical, or biological character or composition of infectious waste so as to sufficiently reduce or eliminate the infectious nature of the waste.

(O) 'Expand' means an increase in the capacity of the facility or an increase in the quantity of infectious waste received by a facility that exceeds a permit condition.

Section 44-93-30. The department shall promulgate regulations, procedures, or standards necessary to carry out the provisions of this chapter and to protect the health and safety of the public, the health of living organisms and the environment from the effects of improper, inadequate, or unsound infectious waste management. The regulations must address, without limitation, criteria for determining whether waste is within the definition of infectious waste, standards for containment, storage, and treatment of infectious waste, report and recordkeeping requirements, procedures and requirements for registration as generators, facilities, and transporters of infectious waste, and for conditions and issuance of permits.

Section 44-93-40. To carry out the provisions and purposes of this chapter, the department may establish and collect registration and permit fees in connection with the provisions of this chapter; conduct inspections, investigations, obtain samples, and conduct research with respect to the operation and maintenance of a site or facility in which infectious waste is generated or managed; and issue, deny, revoke, suspend, or modify registration, permits, or orders under such conditions as it may prescribe for the operation of infectious waste treatment facilities or sites. No permit or registration may be revoked without first providing an opportunity for a hearing as provided pursuant to Article 3, Chapter 23 of Title 1, the Administrative Procedures Act.

Section 44-93-50. The commissioner, upon receipt of information that an aspect of infectious waste management, within a publicly or privately-owned property, may present an imminent or substantial hazard to the health of persons or to the environment, may take such action as he determines necessary to protect the health of persons or the environment. The action the commissioner may take may include, but is not limited to:

(1) entering the premises at any time where the infectious waste is located in order to assess what actions may be necessary;

(2) issuing or modifying an order directing the person responsible for the waste to take the steps necessary to prevent the act or eliminate the practice which constitutes the hazard;

(3) commencing an action enjoining the acts or practices. Upon a showing by the department that a person has engaged in the acts or practices, a permanent or temporary injunction, restraining order, or other order may be granted;

(4) inspecting and obtaining samples from a person of any wastes, including samples from a vehicle in which wastes are being transported, as well as samples of a container or label. If available, upon request, the department shall provide a sample of equal volume or weight to the owner, operator, or agent in charge of the waste. The department also shall provide the owner, operator, or agent in charge with a copy of the results of an analyses of the samples once the results have been evaluated properly by the department to determine their validity.

Section 44-93-60. (A) Storage of infectious waste must be in such a manner and location which affords protection from animals and weather conditions and which minimize exposure to the public.

(B) Infectious waste must be segregated from other waste at the point of origin and maintained in separate containers until it is treated.

(C) Infectious waste must be contained in approved disposable or reusable containers that are appropriate for the type and quantity of waste, must withstand handling, transfer, and transportation without impairing the integrity of the container, must be closed tightly and secured, and are compatible with selected storage and treatment processes.

(D) Sharps must be contained in rigid, puncture-resistant containers which are secured tightly to preclude loss of the contents.

(E) Containers of infectious waste must be labeled properly, clearly identifiable as infectious waste, and readily distinguishable from other waste.

(F) Infectious waste must be stored under conditions and for periods of time as provided pursuant to regulations.

Section 44-93-70. (A) Infectious waste must be transported in such a manner that the integrity of the waste containers is maintained and that occupational hazards are minimized.

(B) No infectious waste may be received for transportation or transported into or within this State if it is not properly contained, identified, labeled, and manifested pursuant to department regulations.

Section 44-93-80. (A) Infectious waste treated must be treated at a facility meeting the requirements of Section 44-93-120.

(B) Infectious waste must be treated as soon as practicable by one of the following treatment methods in accordance with the regulations promulgated under this chapter and any other applicable state or federal law and regulations:

(1) incineration;

(2) steam sterilization;

(3) chemical disinfectant; or

(4) any other department approved treatment method.

(C) After treatment, the waste may be disposed of as any other waste if it is not subject to any other state or federal regulation.

(D) The following infectious waste may be disposed of pursuant to regulation before treatment:

(1) an approved liquid or semi-liquid waste may be discharged directly into a department-approved wastewater disposal system; and

(2) recognizable human anatomical remains may be disposed of by interment.

Section 44-93-90. (A) All in-state generators of infectious waste shall register with the department within ninety days after regulations are promulgated by the department.

(B) Pursuant to regulations, all generators of infectious waste shall place proper, clearly legible, generator identification on all labels and containers of infectious waste before transfer or transportation.

Section 44-93-100. All in-state generators that produce less than fifty pounds of infectious waste a month are exempt from the provisions of this chapter except they shall comply with:

(1) the provisions of Section 44-93-90(A) of this chapter; and

(2) the management of the following infectious waste

(a) sharps must be contained in rigid puncture-resistant containers and may be disposed of as other solid waste;

(b) cultures and human blood and blood products must be managed pursuant to this chapter and any regulations promulgated under this chapter;

(c) all other infectious waste may be disposed of as other solid waste.

Section 44-93-110. It is unlawful for a person who owns or operates a waste treatment, storage, or disposal facility within this State to accept any infectious waste generated in a jurisdiction which prohibits by law the treatment, storage, or disposal of that infectious waste within that jurisdiction.

Section 44-93-120. Upon promulgation of regulations as specified in Section 44-93-30, no person may operate an infectious waste treatment or disposal facility or generator facility without first obtaining a permit as required by department regulations.

Section 44-93-125. No person may expand or construct a new facility without a permit issued by the department. To obtain a permit, the applicant shall demonstrate the need for a facility or expansion. To determine if there is a need, infectious waste generated out-of-state may not be considered without department approval.

This section does not apply to:

(1) facilities owned by counties, municipalities, or public service districts which accept only infectious waste generated in this State;

(2) facilities that are owned or operated by the generator of the waste and this waste is generated in this State;

(3) generator facilities; or

(4) facilities currently operating under permits issued by the department, or to the renewal of existing permits issued by the department if there is no expansion of the capacity as prescribed in the conditions of the permit.

Section 44-93-130. (A) The commissioner may refuse to issue or renew a registration to transport infectious waste or a permit to operate a facility if he finds that within five years of the application for a registration or permit, the applicant has been:

(1) convicted of a crime involving moral turpitude by a court of law and all appeals have been exhausted;

(2) convicted pursuant to a violation of this chapter or any other laws of this State pertaining to solid or hazardous waste punishable as a felony; or

(3) adjudicated in contempt of a court order pertaining to the enforcement of a provision of this chapter or any other state or federal laws governing hazardous waste.

(B) The commissioner may issue a registration or permit if the person has affirmatively demonstrated rehabilitation. The commissioner, in making this determination, shall consider whether:

(1) the person has established formal controls and environmental auditing programs which would enhance compliance and prevent the occurrence of future violations; and

(2) the personal conduct of the person after the conviction or adjudication as it relates to the provisions and purposes of this chapter and any subsequent recommendations of other persons since rehabilitation.

Section 44-93-140. Following the promulgation of the regulations required pursuant to Section 44-93-30, it is unlawful for a person to fail to comply with this chapter or with a procedure or requirement set forth in the regulations.

Section 44-93-150. (A) Whenever the department finds that a person is in violation of a permit, regulation, standard, or requirement under this chapter, the department may issue an order requiring the person to comply with the permit, regulation, standard, or requirement or the department may bring civil action for injunctive relief in the appropriate court; or, the department may request that the Attorney General bring civil or criminal enforcement action under subsection (B) or (C) of this section. Violation of a court order issued pursuant to this section is contempt of the issuing court and punishable as provided by law. The department also may invoke civil penalties as provided in this section for violations of the provisions of this chapter, including an order, permit, regulation, or standard. After exhaustion of administrative remedies, a person against whom a civil penalty is invoked by the department may appeal the decision of the department or board to the Court of Common Pleas.

(B) A person who violates a provision of Section 44-93-140 is liable for a civil penalty not to exceed ten thousand dollars a day of violation.

(C) A person who wilfully violates a provision of Section 44-93-140 is guilty of a misdemeanor and, upon conviction, must be fined not more than ten thousand dollars for each day of violation or imprisoned for not more than one year, or both. If the conviction is for a second or subsequent offense, the punishment must be by a fine not to exceed twenty-five thousand dollars for each day of violation or imprisonment not to exceed two years, or both.

(D) Each day of noncompliance with an order issued pursuant to this chapter or noncompliance with a permit, regulation, standard, or requirement pursuant to this chapter constitutes a separate offense.

Section 44-93-160. (A) There is imposed a fee on the commercial treatment of infectious waste in this State equal to eighteen dollars a ton on the pretreatment weight of infectious waste generated outside of this State and thirteen dollars a ton on the pretreatment weight of infectious waste generated within this State.

(B) The owner or operator of a commercial facility treating infectious waste shall submit, not later than the tenth day of each month, to the Department of Health and Environmental Control:

(1) a report detailing the total weight of infectious waste received for treatment during the preceding month and its point of origin;

(2) a check made payable to the department for the fee due for the preceding month;

(3) in case of failure to file a return on or before the date prescribed by law or failure to pay a fee on or before the date prescribed by law, there must be added a penalty of twenty-five percent of the amount of fee due. The department may revoke a permit to operate for failure to pay any fees, penalties, or interest required by law. Upon payment the department may reinstate the permit to an operator of a commercial treatment facility treating infectious waste in this State. The penalty provided by this item may be reduced or waived by the department for reasonable cause;

(C) A person treating infectious waste who fails to remit the fee or penalty as provided by law must be charged interest at the rate of one percent a month. Interest must be calculated on the full amount of the fee or portion of it, exclusive of penalties, from the time the fee or penalty was due and paid in its entirety.

Section 44-93-170. The department shall establish an Infectious Waste Contingency Fund to insure the availability of funds for response actions necessary at commercial infectious waste treatment facilities and necessary from accidents in the transportation of infectious waste and to defray the cost of governmental response action associated with infectious waste. This fund must be financed by the fees imposed pursuant to Section 44-93-160. The revenue derived from the fees on waste must be credited to the Infectious Waste Contingency Fund, pursuant to the following: an amount equal to two-thirds of the fees collected must be deposited into the fund and an amount equal to one third of the fees collected must be held in a separate and distinct account within the fund for the purpose of being returned to each county in which the fee imposed by Section 44-93-160 is collected. When the amount of fees held in the Infectious Waste Contingency Fund meets or exceeds one million dollars, two-thirds of all subsequent fees collected must be remitted to the Hazardous Waste Contingency Fund as established in Section 44-66-160(A) to assist in defraying the costs of governmental response actions at uncontrolled hazardous waste sites, with the remaining one-third of all subsequent fees collected continuing to be placed into a separate and distinct account for counties as provided for in this item. Interest earned by the fund must be credited to the fund and that portion of interest earned attributable to the county account must be credited to the county account. Interest credited to the county account must be distributed in the same proportion as funds are distributed to counties pursuant to this section. Proceeds of the county account returned to a county pursuant to this section must be released by the State Treasurer upon the written request of a majority of the legislative delegation of the recipient county.

Section 44-93-180. The department shall assign as may be necessary a health inspector to serve at a commercial infectious waste treatment facility located in South Carolina for the purpose of assuring the protection of the health and safety of the public by monitoring the receipt, handling, treatment, and disposal of infectious waste at these sites.

The department shall establish a fee schedule to cover the costs of implementing this inspection program. The fee must be collected from the commercial infectious waste facilities based upon the amount of infectious waste received.

Section 44-93-190. This chapter does not apply to the treatment or disposal of hazardous waste regulated under the South Carolina Hazardous Waste Management Act.

Section 44-93-200. Sections 44-93-160, 44-93-170, and 44-93-180 do not apply to infectious waste treated by hospitals or generator facilities if the waste is generated in this State and treated on a nonprofit basis. A hospital or generator facility that is involved in the business of treating infectious waste for other individuals or entities shall only apportion and collect payments and fees proportionate to the amount of waste disposed of by those individuals or entities."

SECTION 2. Section 51, Part II of Act 658 of 1988 is repealed.

SECTION 3. This act takes effect upon approval by the Governor./

/s/ Peden B. McLeod               /s/ Charles R. Sharpe
/s/ Thomas L. Moore               /s/ Douglas E. McTeer, Jr.
/s/ James E. Bryan, Jr.           /s/ L. Edward Bennett
On Part of the Senate.            On Part of the House.

Renumber sections to conform.

Amend title to conform.

Rep. SHARPE explained the Report.

The Free Conference Report was adopted and a message was ordered sent to the Senate accordingly.

S. 671-RECONSIDERED AND DEBATE ADJOURNED

The following Bill was taken up.

S. 671 -- Senator Hayes: A BILL TO AMEND ACT 271 OF 1981, AS AMENDED, RELATING TO THE BOARD OF TRUSTEES OF ROCK HILL SCHOOL DISTRICT NO. 3, SO AS TO DELETE PROVISIONS WHICH STIPULATE WHEN ELECTED MEMBERS OF THE BOARD TAKE OFFICE, WHAT PUBLIC NOTICE OF THE ELECTIONS IS REQUIRED, AND THE DATES BY WHICH A CANDIDATE MUST FILE NOTICE OF HIS CANDIDACY.

Rep. HAYES moved to reconsider the vote whereby the Bill was given a third reading, which was agreed to.

Rep. HAYES moved to adjourn debate upon the Bill until Wednesday, May 31, which was adopted.

H. 3762-RECONSIDERED, SENATE AMENDMENTS
AMENDED, AND SENT TO THE SENATE

The following Bill was taken up.

H. 3762 -- Reps. Hearn, J.W. Johnson and Lockemy: A BILL TO AMEND SECTION 42-5-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WORKERS' COMPENSATION AND THE TAX ON SELF-INSURERS, SO AS TO PROVIDE THAT THE REQUIRED REPORT BE MADE BY THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE SELF-INSURER'S FISCAL YEAR, PROVIDE AUTHORITY TO THE WORKERS' COMPENSATION COMMISSION TO ASSESS A PENALTY AGAINST A SELF-INSURER WHO FAILS TO PAY THE TAX BY THE REQUIRED DATE, AND PROVIDE FOR THE WITHDRAWAL OF THE PRIVILEGE OF SELF-INSURING IN SOUTH CAROLINA UNDER CERTAIN CONDITIONS.

Rep. HEARN moved to reconsider the vote whereby the House concurred in the Senate Amendments, which was agreed to.

Rep. HEARN proposed the following Amendment No. 1 (Doc. No. 5230U), which was adopted.

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

/SECTION 1. Section 42-5-190 of the 1976 Code is amended to read:

"Section 42-5-190. Every employer carrying his own risk under the provisions of Section 42-5-20 shall report under oath to the South Carolina Workers' Compensation Commission his actual cost incurred under the provisions of this title. The report must be made in the form prescribed by the commission and at the time provided by law for premium reports by insurance carriers by the fifteenth day of the third month following the close of the self-insurer's fiscal year. The commission shall assess against the actual cost incurred a maintenance tax computed by taking four and one-half percent of the actual cost of operating under the provisions of this title as determined by the commission. For fiscal year 1990-91, the maintenance tax is at the rate of three and one-half percent. For fiscal year 1991-92 and thereafter, the maintenance tax is at the rate of two and one-half percent. The assessments must be paid to the commission which, in turn, shall deposit them with the State Treasurer. In the event of failure to pay the tax within fifteen days of the date set forth in this section, the commission may assess against the self-insurer a penalty of five percent of the unpaid tax. If the self-insurer fails to pay the tax and penalty within fifteen days of notice by the commission. interest must be added to the amount of the deficiency at the rate of five percent for each month or fraction of a month from the date the tax was due originally until the date the deficiency is paid and the commission may initiate proceedings to withdraw the privilege of self-insuring in this State. The total maximum interest to be charged may not exceed twenty-five percent. The penalty under this section is payable to the commission and the interest must be remitted to the general fund."

SECTION 2. This act takes effect upon approval by the Governor./

Amend title to conform.

The Senate Amendments, as amended, were then agreed to and the Bill ordered returned to the Senate.

SENT TO THE SENATE

The following Bills and Joint Resolutions were taken up, read the third time, and ordered sent to the Senate.

H. 4090 - Rep. Harvin: A BILL TO REVISE THE MANNER IN WHICH CERTAIN MEMBERS OF THE BOARD OF TRUSTEES OF EAST CLARENDON SCHOOL DISTRICT NUMBER THREE IN CLARENDON COUNTY ARE ELECTED AND TO PROVIDE FOR THE TERMS OF THESE MEMBERS.

H. 4020 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO WATER UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1107, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4021 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO SEWERAGE UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1106, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4022 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA, RELATING TO TELECOMMUNICATIONS UTILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1085, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4047 -- Rep. Corbett: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF SEA BANKS HOMEOWNERS ASSOCIATION, INC., IN HORRY COUNTY.

H. 3546 -- Reps. Mappus, Kohn, Holt, Rama, Whipper, Winstead, Barber, Hallman, J. Bailey, Washington and D. Martin: A BILL TO AMEND SECTION 55-9-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF THE AERONAUTICS COMMISSION AND POLITICAL SUBDIVISIONS OF THIS STATE IN REGARD TO THE ESTABLISHMENT OF AIRPORTS, SO AS TO GRANT TO THE POLITICAL SUBDIVISIONS OF THIS STATE BUT NOT TO THE AERONAUTICS COMMISSION CERTAIN ADDITIONAL POWERS IN REGARD TO THE LEASING OF REAL PROPERTY ACQUIRED FOR AIR TRANSPORTATION AND FACILITIES PURPOSES.

ORDERED TO THIRD READING

The following Bill and Joint Resolution were taken up, read the second time, and ordered to a third reading:

S. 804 - Senator Pope: A BILL TO REPEAL ACT 735 OF 1936 WHICH ESTABLISHED THE NEWBERRY COUNTY PARK COMMISSION.

H. 4054 - Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO CLASSIFIED WATERS - LYNCHES RIVER, DESIGNATED AS REGULATION DOCUMENT NUMBER 1054, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 804-ORDERED TO BE READ THIRD
TIME TOMORROW

On motion of Rep. WALDROP, with unanimous consent, it was ordered that S. 804 be read the third time tomorrow.

ORDERED ENROLLED FOR RATIFICATION

The following Bills and Joint Resolutions were read the third time, passed and, having received three readings in both Houses, it was ordered that the title of each be changed to that of an Act, and that they be enrolled for ratification.

S. 763 -- Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE COASTAL COUNCIL, RELATING TO BEACH RESTORATION FUND APPLICATION PROCEDURES AND CRITERIA, DESIGNATED AS REGULATION DOCUMENT NUMBER 1140, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 764 - Senator Moore: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF SAMUEL H. SWINT POST # 77 OF THE AMERICAN LEGION IN AIKEN COUNTY.

S. 442 -- Senator Waddell: A BILL TO AMEND SECTION 49-5-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CRIMINAL PENALTIES AND INJUNCTIVE RELIEF UNDER THE GROUNDWATER USE ACT, SO AS TO AUTHORIZE THE SOUTH CAROLINA WATER RESOURCES COMMISSION TO IMPOSE CIVIL PENALTIES AND TAKE CERTAIN CIVIL ADMINISTRATIVE ACTION FOR VIOLATIONS OF THE ACT, AND TO PROVIDE THE MANNER IN WHICH THESE CIVIL PENALTIES MAY BE APPLIED.

S. 614 - Fish, Game and Forestry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE WILDLIFE AND MARINE RESOURCES DEPARTMENT, RELATING TO OPERATIONS OF FIELD TRIALS, DESIGNATED AS REGULATION DOCUMENT NUMBER 1103, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

RETURNED TO THE SENATE WITH AMENDMENT

The following Bills were taken up, read the third time, and ordered returned to the Senate with amendments.

S. 502 - Senators Nell W. Smith, Moore and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-2382 SO AS TO PROVIDE FOR A MEMBER NOT TO BE LIABLE FOR DAMAGES IN THE DISCHARGE OF HIS DUTIES AFTER PARTICIPATING IN A TRAINING PROGRAM OF THE SYSTEM FOR THE REVIEW OF THE FOSTER CARE OF CHILDREN; AND TO AMEND SECTION 20-7-2385, RELATING TO LOCAL FOSTER CARE REVIEW BOARDS, SO AS TO PROVIDE FOR MEMBERS' TERMS TO CONTINUE UNTIL THEIR SUCCESSORS ARE APPOINTED AND QUALIFY AND FOR NOTICE OF A BOARD VACANCY BY CERTIFIED INSTEAD OF REGISTERED MAIL.

S. 201 -- Senators Lindsay, McConnell, Lourie, Williams, Martin, O'Dell and Mullinax: A BILL TO AMEND SECTIONS 58-13-910 AND 58-13-920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPECIAL OFFICERS AND CONSTABLES OF RAILWAYS OR OTHER COMMON CARRIERS, SO AS TO PROVIDE THAT THEY MAY BE RESIDENTS OF OTHER STATES IF THEY ARE COMMISSIONED IN OTHER STATES WHERE THE RAILWAY OR COMMON CARRIER OPERATES AND MEET LAW ENFORCEMENT TRAINING STANDARDS OF THIS STATE AND THAT THE COMMISSIONS OF RESIDENTS EXTEND BEYOND THE TERM OF THE APPOINTING GOVERNOR.

S. 637 -- Senators Bryan, Hayes, Peeler and Fielding: A BILL TO AMEND SECTION 43-33-330, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA PROTECTION AND ADVOCACY SYSTEM FOR THE HANDICAPPED, INC., SO AS TO PROVIDE THAT FOUR ADDITIONAL MEMBERS MAY BE ELECTED BY THE BOARD.

S. 498 -- Senators Drummond, Hayes and Pope: A BILL TO AMEND SECTION 49-1-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALE OF DRIFTED OBJECTS, SO AS TO DELETE PROVISIONS RELATING TO WATERCRAFT; TO AMEND SECTIONS 50-23-10, 50-23-30, 50-23-60, 50-23-120, 50-23-170, 50-23-200, 50-23-205, 50-23-270, AND 50-23-280, RELATING TO TITLING OF WATERCRAFT AND OUTBOARD MOTORS, SO AS TO DELETE BOATS AND OTHER WATERCRAFT FROM PROVISIONS REGULATING MATERIALS FOUND DRIFTING, TO CHANGE AND ADD DEFINITIONS, TO EXEMPT COMMERCIAL BARGES, WINDSURFERS, AND WATERCRAFT PROPELLED EXCLUSIVELY BY HUMAN POWER OR WITH OARS, PADDLES, OR SIMILAR DEVICES FROM TITLING REQUIREMENTS, TO CHANGE PROCEDURES FOR APPLYING FOR A TITLE CERTIFICATE, TO PROVIDE FOR APPLICATION FOR DUPLICATE CERTIFICATES, TO PROVIDE A LATE FEE, TO PROVIDE FOR THE FORM OF THE MANUFACTURER'S OR IMPORTER'S CERTIFICATE, TO DEFINE "HOMEMADE WATERCRAFT OR OUTBOARD MOTOR", TO CHANGE PROVISIONS RELATING TO SERIAL NUMBERS AND IDENTIFICATION NUMBERS, TO ESTABLISH ACTS WHICH PROHIBIT THE LAWFUL OPERATION OF WATERCRAFT OR OUTBOARD MOTORS, TO PROVIDE THAT IT IS UNLAWFUL TO DEAL WITH A WATERCRAFT OR OUTBOARD MOTOR BY A PERSON WHO HAS REASON TO BELIEVE IT IS STOLEN, TO PROVIDE FOR DISPOSAL OF STOLEN, ABANDONED, JUNKED, ADRIFT, DESTROYED, OR SALVAGED WATERCRAFT OR OUTBOARD MOTORS, AND TO INCREASE PENALTIES FOR VIOLATIONS; TO AMEND THE 1976 CODE BY ADDING SECTIONS 50-23-135, 50-23-185, 50-23-275, AND 50-23-290 SO AS TO PROVIDE FOR TITLING ABANDONED, JUNKED, ADRIFT, AND SALVAGED WATERCRAFT OR OUTBOARD MOTORS, TO PROVIDE FOR THE INSPECTION OF FACILITIES INVOLVED WITH WATERCRAFT AND OUTBOARD MOTORS, TO REQUIRE TITLING OF WATERCRAFT OR OUTBOARD MOTORS NOT PREVIOUSLY TITLED, AND TO PROVIDE FOR CONDITIONAL TITLES.

H. 3629-TABLED

The following Bill was taken up.

H. 3629 -- Reps. Beasley, J. Rogers, M.O. Alexander, T.C. Alexander, Altman, G. Bailey, J. Bailey, K. Bailey, Baker, Barber, Barfield, Bennett, Boan, G. Brown, H. Brown, J. Brown, R. Brown, Burch, T.M. Burriss, Carnell, Corning, Davenport, Faber, Fair, Fant, Farr, Felder, Ferguson, Foster, Glover, Gordon, Gregory, Hallman, J. Harris, Harwell, Haskins, Hayes, Hendricks, Hodges, Huff, Jaskwhich, J.C. Johnson, J.W. Johnson, Kay, Keegan, Keyserling, Lockemy, Manly, D. Martin, McBride, McEachin, McElveen, McGinnis, McLellan, McLeod, McTeer, Moss, Neilson, Nesbitt, Nettles, Phillips, Quinn, Rama, Rhoad, T. Rogers, Rudnick, Short, Simpson, Snow, Stoddard, Townsend, Waites, Washington, Wells, Whipper, White, Wilder, Wilkes, Wilkins, D. Williams, J. Williams, Winstead, Wofford, Wright, Limehouse, Harvin, Sharpe, Klapman, Mappus and Hearn: A BILL TO ENACT THE "TARGET 2000-SCHOOL REFORM FOR THE NEXT DECADE" ACT BY AMENDING SECTION 59-5-65, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWER AND RESPONSIBILITY OF THE STATE BOARD OF EDUCATION TO ESTABLISH THE MINIMUM STANDARDS FOR STUDENT CONDUCT, ATTENDANCE, AND ACHIEVEMENT, SO AS TO REVISE PROVISIONS REQUIRING THE STATE BOARD OF EDUCATION TO IMPLEMENT REGULATIONS PROVIDING AT LEAST ONE-HALF DAY EARLY CHILDHOOD DEVELOPMENT PROGRAMS FOR FOUR-YEAR OLD CHILDREN WHO HAVE PREDICTED SIGNIFICANT READINESS DEFICIENCIES BY MAKING THESE REGULATIONS APPLICABLE TO ALL SCHOOL DISTRICTS AND REQUIRING THAT SPECIAL EFFORTS BE MADE TO RECRUIT CHILDREN WHOSE PARTICIPATION IS DIFFICULT TO OBTAIN; TO ADD SECTION 59-1-451 SO AS TO PROVIDE FOR PARENT EDUCATION PROGRAMS; TO AMEND SECTION 59-20-40, AS AMENDED, RELATING TO DETERMINATION OF ANNUAL ALLOCATIONS UNDER THE EDUCATION FINANCE ACT, SO AS TO PROVIDE THAT NOT LATER THAN THE 1990-91 SCHOOL YEAR, THE GENERAL ASSEMBLY SHALL APPROPRIATE SUFFICIENT FUNDS TO PROVIDE COMPENSATORY AND REMEDIAL PROGRAMS FOR ALL STUDENTS WHO FAIL TO MEET THE STATEWIDE MINIMUM STANDARDS IN READING, WRITING, AND MATHEMATICS, TO PROVIDE THAT ARTS EDUCATION MUST BE CONSIDERED IN THE WEIGHTINGS USED TO PROVIDE FOR THE RELATIVE COST DIFFERENCES BETWEEN PROGRAMS, AND TO PROVIDE FOR THE MANNER IN WHICH FUNDS GENERATED FROM THIS ARTS WEIGHTING MUST BE USED; TO ADD ARTICLE 5 TO CHAPTER 65, TITLE 59 SO AS TO ESTABLISH A SCHOOL DROP-OUT PREVENTION AND RECOVERY PROGRAM; TO AMEND SECTIONS 56-1-40, 56-1-50, 56-1-180, AND TO ADD SECTION 56-1-45 SO AS TO PROHIBIT THE ISSUING OF DRIVERS' LICENSES TO PERSONS UNDER EIGHTEEN YEARS OF AGE WHO ARE NOT HIGH SCHOOL GRADUATES, WHO HAVE NOT EARNED A G.E.D. CERTIFICATE, OR WHO DO NOT PROVIDE DOCUMENTATION THAT THEY ARE PROPERLY ENROLLED IN SCHOOL AND IN COMPLIANCE WITH ATTENDANCE REQUIREMENTS, TO REQUIRE THE SUSPENSION OF THE DRIVER'S LICENSES OF SPECIFIED STUDENTS UNDER CERTAIN CONDITIONS AND TO PROVIDE EXCEPTIONS; TO ADD SECTION 59-63-70 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL IMPLEMENT CERTAIN ACTIVITIES DESIGNED TO ENCOURAGE YOUNG PEOPLE TO CONSIDER POST-SECONDARY EDUCATION OR TRAINING; TO AMEND SECTION 59-26-20, RELATING TO THE DUTIES OF THE STATE BOARD OF EDUCATION AND THE COMMISSION ON HIGHER EDUCATION, SO AS TO PROVIDE THAT BEGINNING WITH THE 1991-92 SCHOOL YEAR, STUDENTS WHO ARE PURSUING CERTAIN COLLEGE INSTRUCTIONAL OR ADMINISTRATIVE CURRICULUMS SHALL SUCCESSFULLY COMPLETE TRAINING AND DEVELOPMENT EXPERIENCES IN TEACHING HIGHER ORDER THINKING SKILLS, AND SHALL SUCCESSFULLY COMPLETE TRAINING IN METHODS OF MAKING SCHOOL IMPROVEMENT COUNCILS AN ACTIVE AND EFFECTIVE FORCE IN IMPROVING SCHOOLS; TO AMEND SECTION 59-26-30, RELATING TO THE DEVELOPMENT OF TEACHER EXAMINATIONS AND EVALUATION INSTRUMENTS BY THE STATE BOARD OF EDUCATION, SO AS TO FURTHER PROVIDE FOR THESE TEACHER EXAMINATIONS AND EVALUATION INSTRUMENTS; TO ADD SECTION 59-31-600 SO AS TO ESTABLISH CERTAIN STANDARDS FOR TEXTBOOK ADOPTIONS; TO AMEND SECTION 59-29-180, RELATING TO THE EMPHASIS ON HIGHER ORDER PROBLEM SOLVING SKILLS, SO AS TO PROVIDE THAT THE STATE DEPARTMENT OF EDUCATION SHALL ASSIST THE SCHOOL DISTRICTS IN THE LOCATION AND DEVELOPMENT OF MATERIALS AND AIDS WHICH MAY BE USED FOR THESE PURPOSES; TO ADD SECTION 59-1-450 SO AS TO PROVIDE THAT WHEN SELECTING CERTAIN ACHIEVEMENT TESTS FOR STATEWIDE TESTING, THE STATE BOARD OF EDUCATION SHALL SELECT TESTS WITH A SUFFICIENT NUMBER OF ITEMS WHICH MAY BE RESCORED TO EVALUATE THE STUDENT'S HIGHER ORDER THINKING SKILLS; TO ADD SECTION 59-30-110 SO AS TO PROVIDE THAT WHEN TEST ITEMS FOR THE BASIC SKILLS ASSESSMENT PROGRAM ARE REVISED, THE STATE BOARD OF EDUCATION SHALL INCLUDE TEST ITEMS WHICH MAY BE RESCORED TO EVALUATE A STUDENT'S HIGHER ORDER THINKING SKILLS; TO AMEND SECTION 59-3-90, RELATING TO IN-SERVICE TRAINING PROGRAMS FOR TEACHERS, SO AS TO INCLUDE HIGHER ORDER THINKING AND PROBLEM-SOLVING SKILLS IN THESE IN-SERVICE TRAINING PROGRAMS; TO AMEND SECTION 59-29-170, RELATING TO PROGRAMS FOR TALENTED STUDENTS, SO AS TO PROVIDE THAT BEGINNING WITH THE 1991-92 SCHOOL YEAR, ALL GIFTED AND TALENTED STUDENTS AT THE ELEMENTARY AND SECONDARY LEVELS WHO ARE NOT INCLUDED IN STATE FUNDED ADVANCED PLACEMENT PROGRAMS MUST BE PROVIDED THE PROGRAMS FOR TALENTED STUDENTS CONTAINED IN THIS SECTION; TO ADD SECTION 59-18-15 SO AS TO PROVIDE FOR THE MANNER IN WHICH A SCHOOL WHICH HAS RECEIVED AN INCENTIVE GRANT TWICE DURING A THREE-YEAR PERIOD MUST BE GIVEN THE FLEXIBILITY OF RECEIVING AN EXEMPTION FROM THE REQUIREMENTS OF THE DEFINED MINIMUM PROGRAM AND FROM THE REPORTING REQUIREMENTS OF THE BASIC SKILLS ASSESSMENT PROGRAM; TO AMEND SECTION 59-18-20, RELATING TO THE COMPETITIVE GRANTS PROGRAM FOR IMPROVEMENT OF INSTRUCTION, SO AS TO ALSO ESTABLISH A COMPETITIVE SCHOOLWIDE INNOVATION GRANTS PROGRAM; TO ADD SECTION 59-18-25 SO AS TO ESTABLISH A "CENTER FOR THE ADVANCEMENT OF TEACHING AND SCHOOL LEADERSHIP" AT SELECTED PUBLIC COLLEGES OR UNIVERSITIES; TO ADD SECTION 59-25-55 SO AS TO REQUIRE THE SOUTH CAROLINA CENTER FOR TEACHER RECRUITMENT TO ESTABLISH A PROGRAM FOR THE PURPOSE OF EXPANDING THE NUMBER OF HIGH ACHIEVING MINORITY STUDENTS ENTERING AND COMPLETING TEACHER EDUCATION PROGRAMS; TO ADD SECTION 59-18-31 SO AS TO PROVIDE THAT BY THE 1991-92 SCHOOL YEAR, THE STATE BOARD OF EDUCATION IN CONSULTATION WITH THE SELECT COMMITTEE SHALL DEVELOP ADDITIONAL CRITERIA WHICH MUST BE USED TO EVALUATE THE QUALITY OF EDUCATION IN THE SCHOOL DISTRICTS; TO ADD SECTION 59-18-11 SO AS TO FURTHER PROVIDE FOR THE CRITERIA SCHOOLS SHALL MEET IN ORDER TO QUALIFY FOR SCHOOL INCENTIVE AWARDS; TO ADD SECTION 59-6-15 SO AS TO ESTABLISH THE BUSINESS-EDUCATION PARTNERSHIP FOR EXCELLENCE IN EDUCATION AND ITS BUSINESS-EDUCATION SUBCOMMITTEE AND TO PROVIDE FOR THEIR MEMBERSHIP, DUTIES, AND FUNCTIONS; TO AMEND SECTION 59-6-20, AS AMENDED, RELATING TO THE DUTIES OF THE GOVERNOR AND STATE SUPERINTENDENT OF EDUCATION AND OTHER OFFICIALS AND ENTITIES IN REGARD TO THE SOUTH CAROLINA EDUCATION IMPROVEMENT ACT OF 1984, AND SECTION 59-6-30 RELATING TO CERTAIN ASSESSMENTS AND REPORTS CONCERNING THE EDUCATION IMPROVEMENT ACT, SO AS TO DELETE REFERENCES TO CERTAIN ELIMINATED COMMITTEES, SUBCOMMITTEES AND PARTNERSHIPS, TO INCLUDE IN THOSE SECTIONS THE DUTIES AND RESPONSIBILITIES OF THE BUSINESS-EDUCATION PARTNERSHIP AND ITS BUSINESS-EDUCATION SUBCOMMITTEE IN REGARD TO THE EDUCATION IMPROVEMENT ACT, AND PROVIDE FOR THE REQUIREMENTS OF CERTAIN FUNDING; TO AMEND SECTION 59-24-30, RELATING TO THE PARTICIPATION OF SCHOOL SUPERINTENDENTS AND PRINCIPALS IN SEMINARS FOR THE IMPROVEMENT OF ADMINISTRATIVE SKILLS AND INSTRUCTIONAL LEADERSHIP, SO AS TO FURTHER PROVIDE FOR THESE SEMINARS; TO AMEND SECTION 59-24-50, RELATING TO THE DEVELOPMENT TRAINING PROGRAMS FOR SCHOOL ADMINISTRATORS, SO AS TO FURTHER PROVIDE FOR THESE TRAINING PROGRAMS; TO AMEND SECTION 59-24-120, RELATING TO APPRENTICESHIP SCHOOL PRINCIPAL PROGRAMS, SO AS TO FURTHER PROVIDE FOR THESE PROGRAMS; TO AMEND SECTION 59-20-60, AS AMENDED, RELATING TO SPENDING PRIORITIES UNDER THE EDUCATION FINANCE ACT, THE ESTABLISHMENT OF SCHOOL IMPROVEMENT COUNCILS, AND AUDITS AND REPORTS SUBMITTED UNDER THE ACT, SO AS TO PROVIDE THAT ELECTIONS OF MEMBERS TO SCHOOL IMPROVEMENT COUNCILS MUST OCCUR DURING THE SECOND WEEK IN OCTOBER, AND TO PROVIDE THAT THE INFORMATION FORWARDED TO THE STATE DEPARTMENT OF EDUCATION SHALL ALSO IDENTIFY AT LEAST ONE MEMBER OF EACH SCHOOL IMPROVEMENT COUNCIL WHO SHALL RECEIVE AND DISTRIBUTE COUNCIL-RELATED INFORMATION TO OTHER COUNCIL MEMBERS; TO ADD SECTION 59-1-452 SO AS TO ESTABLISH A PUBLIC SCHOOL EMPLOYEES COST-SAVINGS PROGRAM FOR THE PURPOSE OF MAKING CASH AWARDS TO SCHOOL DISTRICT EMPLOYEES FOR COST SAVING IDEAS; TO ADD SECTION 59-6-16 SO AS TO REQUIRE THE BUSINESS-EDUCATION SUBCOMMITTEE TO APPOINT A LEADERSHIP NETWORK OF REPRESENTATIVES FROM THE PRIVATE SECTOR AND TO PROVIDE FOR THE FUNCTIONS OF THE LEADERSHIP NETWORK; TO AMEND SECTION 59-5-65, AS AMENDED, RELATING TO CERTAIN POWERS AND RESPONSIBILITIES OF THE STATE BOARD OF EDUCATION, SO AS TO PROVIDE THAT THE STATE BOARD OF EDUCATION SHALL WORK WITH THE LEADERSHIP NETWORK ESTABLISHED BY THE BUSINESS-EDUCATION SUBCOMMITTEE; AND TO ADD SECTION 59-24-41 SO AS TO PROVIDE FOR CERTAIN PRACTICES WHICH A PRINCIPAL MUST DEMONSTRATE TO RECEIVE A MINIMUM SATISFACTORY PERFORMANCE RATING BEGINNING WITH THE 1991-92 SCHOOL YEAR.

Rep. BEASLEY moved to table the Bill, which was agreed to.

S. 428-AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

S. 428 -- Senator Drummond: A BILL TO AMEND SECTION 50-13-235, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STRIPED BASS (ROCKFISH), SO AS TO PROVIDE THAT THE WILDLIFE AND MARINE RESOURCES DEPARTMENT MAY SET AND PUBLISH THE DAILY CREEL LIMITS AND SIZE LIMITS FOR STRIPED BASS AND BLACK BASS; TO AMEND SECTION 50-13-285, RELATING TO PENALTIES, SO AS TO PROVIDE THAT THE PENALTIES ASSESSED BY THE SECTION INCLUDE CONVICTIONS OF SECTION 50-13-235; AND TO REPEAL SECTIONS 50-13-220 AND 50-13-230 RELATING TO STRIPED BASS.

AMENDMENT NO. 1-ADOPTED

Debate was resumed on Amendment No. 1, which was proposed on Monday, May 29, 1989, by the Committee on Agriculture and Natural Resources.

Rep. RHOAD explained the amendment.

The amendment was then adopted.

Rep. SNOW proposed the following Amendment No. 2, which was ruled out of order.

Requesting the South Carolina Department of Wildlife and Marine Resources to monitor the threat of Lyme Disease in this state and region and make a report of its findings and appropriate recommendations to the House Committee on Medical, Military, Public and Municipal Affairs and the Senate Medical Affairs Committee no later than December 16, 1989.

Whereas, Lyme disease, first described in 1976 by Dr. Allen Steere, has since 1984 surpassed Rocky Mountain spotted fever as the most common tick-borne disease and as it has spread from the Northeastern United States into most states of the United States has become a serious public health concern; and

Whereas, the disease is caused by the spirochete Borrelia burgdorferi and transmitted by the bite of the Ixodes dammini tick and is characterized by three clinical stages--early disease, including flu-like symptoms and a characteristic skin lesion; stage two--cardiac and neurological disease and stage three-arthritic and chronic neurological syndromes; and

Whereas, the growing concern about Lyme Disease requires appropriate action to determine the extent of the threat of Lyme Disease in this State so that appropriate and timely measures may be taken by public and private agencies to combat the threat; and

Whereas, the South Carolina Wildlife and Marine Resources Department has an ongoing relationship with the Southeastern Cooperative Wildlife Disease Study at the University of Georgia. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the South Carolina Department of Wildlife and Marine Resources shall monitor the Lyme Disease threat in this State and region in coordination with the Southeastern Cooperative Wildlife Disease Study at the University of Georgia by, among other methods, collection of ticks from appropriate wildlife species and subsequent analysis of the ticks to determine the prevalence of the Lyme Disease spirochete; and

Be it further resolved that, based on its monitoring of the Lyme Disease situation in this State and region, the department shall make a report and appropriate and timely recommendations to the House Medical, Military, Public and Municipal Affairs Committee and Senate Medical Affairs Committee no later than December 15, 1989, on actions necessary to combat Lyme Disease.

Be it further resolved that a copy of this resolution be forwarded to Dr. James A. Timmerman, Jr., Executive Director of the South Carolina Department of Wildlife and Marine Resources.

Rep. SNOW explained the amendment.

POINT OF ORDER

Rep. KLAPMAN raised the Point of Order that Amendment No. 2 was out of order as it was not germane to the Bill.

The SPEAKER sustained the Point of Order and ruled the Amendment out of order.

The Bill, as amended, was read the second time and ordered to third reading.

H. 3402-DEBATE ADJOURNED

Rep. McBRIDE moved to adjourn debate upon the following Bill until Wednesday, May 31, which was adopted.

H. 3402 - Reps. Faber and McBride: A BILL TO REQUIRE CANDIDATES FOR THE POSITION OF LAW ENFORCEMENT OFFICER TO UNDERGO PSYCHOLOGICAL SCREENING IN THE USE OF DEADLY FORCE AND FIREARMS, AS PART OF BASIC TRAINING, BEFORE BEING COMMISSIONED OR EMPLOYED AS A LAW ENFORCEMENT OFFICER; TO REQUIRE THE PSYCHOLOGICAL SCREENING TO BE ADMINISTERED BY THE SOUTH CAROLINA CRIMINAL JUSTICE ACADEMY; AND TO PROVIDE FOR THE PROMULGATION OF REGULATIONS.

H. 4053-DEBATE ADJOURNED

Rep. SHARPE moved to adjourn debate upon the following Joint Resolution until Wednesday, May 31, which was adopted.

H. 4053 - Agriculture and Natural Resources Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO HAZARDOUS WASTE MANAGEMENT, DESIGNATED AS REGULATION DOCUMENT NUMBER 1126, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 686 DEBATE ADJOURNED

The following Bill was taken up.

S. 686 -- General Committee: A BILL TO AMEND SECTION 40-6-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSE FEES FOR AUCTIONEERS AND AUCTION FIRMS, SO AS TO PROVIDE THAT THE LICENSE FEES FOR AUCTIONEERS, APPRENTICE AUCTIONEERS, AND AUCTION COMPANIES ARE ONE HUNDRED FIFTY DOLLARS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc. No. 6837k).

Amend the bill, as and if amended, by adding an appropriately numbered section as follows:

SECTION______. Section 40-6-40 of the 1976 Code is amended to read:

Section 40-6-40. Of the initial five members, one member must be appointed to serve for a term of one year, two members must be appointed to serve for a term of two years, and two members must be appointed to serve for a term of three years. At least three of the initial five members of the commission must be experienced auctioneers and must be active in the auction profession. Beginning July 1, 1977, at least three members of the commission must be licensed auctioneers. Any action taken by the commission may be taken by a vote of any three of its members. A quorum consists of three members. The members shall elect from among themselves a chairman who shall serve for a term of one year and until his successor is elected and qualifies. No member may serve more than two successive terms as chairman. The members of the commission shall receive the same per diem, mileage, and subsistence as is provided by law for members of state boards, committees, and commissions. The commission shall employ an executive director, who shall have a minimum of five years experience as an auctioneer, an investigator, or investigators, and other employees as it considers necessary to carry out the duties prescribed by this act. All employees serve at the pleasure of the commission. The commission shall issue, suspend, and revoke licenses for auctioneers and apprentice auctioneers as provided in this act and may promulgate regulations as may be necessary to carry out the provisions of this Chapter.

Renumber sections to conform.

Amend title to conform.

Rep. LIMEHOUSE explained the amendment.

Rep. GORDON moved to adjourn debate upon the Bill until Wednesday, May 31, which was adopted.

H. 3662-AMENDED AND DEBATE ADJOURNED

The following Bill was taken up.

H. 3662 - Rep. Harvin: A BILL TO AMEND SECTION 38-1-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE INSURANCE LAWS OF THIS STATE, SO AS TO INCLUDE "JOB PROTECTION INSURANCE" IN THE DEFINITION OF "CASUALTY INSURANCE", TO SET FORTH WHAT JOB PROTECTION INSURANCE DOES NOT APPLY TO, TO EXEMPT INDIVIDUALS WHO SOLICIT JOB PROTECTION INSURANCE ON BEHALF OF CERTAIN INSURANCE CARRIERS FROM HAVING TO TAKE AND PASS A WRITTEN EXAMINATION IN ORDER TO BE LICENSED, AND TO PROVIDE THAT COVERAGES PROVIDED UNDER THIS TYPE OF INSURANCE ARE NOT SUBJECT TO GUARANTY FUNDS UNLESS SPECIFICALLY INDICATED IN THE LAWS GOVERNING THOSE FUNDS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc. No. 4622U), which was adopted.

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

/SECTION 1. Section 38-1-20(9) of the 1976 Code is amended to read:

"(9) 'Casualty insurance' means every insurance against legal liability of the insured for bodily injury to or death of other persons, including workers' compensation insurance, and for damages to or loss or destruction of the property of others; medical payments insurance when written in conjunction with any insurance covering liability for the deaths or bodily injuries of others; guaranteeing the fidelity of persons holding positions of public or private trust; loss of or damage to property caused by burglary, theft, larceny, robbery, fraud, or any unlawful taking or accretion of property owned by or entrusted to the insured; loss of or damage to property of the insured resulting from the explosion of or damage to any fired or unfired boiler or other pressure vessel, engine, turbine, compressor, pump, wheel, any apparatus generating, transmitting, or using electric power, and any machinery or equipment connected with any of the foregoing; loss resulting from nonpayment of debts owed to merchants or other persons extending credit; and legal insurance.; and job protection insurance."

SECTION 2. The 1976 Code is amended by adding:

"Section 38-43-101. An agent of a casualty insurer who sells only job protection insurance as defined in Section 38-75-610 is not required to take the written examination required by Section 38-43-100."

SECTION 3. Section 38-43-105(e) is amended to read:

"(e) This section applies to residents applying for a license to engage in the sale of insurance except those persons who have previously been licensed for a period of five years or more and those persons applying for a license limited to the following types of insurance only or a combination thereof:

(1) credit life or credit accident and health;

(2) credit property;

(3) crop hail;

(4) automobile physical damage;

(5) mortgage guaranty or mortgage redemption, or both;

(6) title;

(7) travel accident and baggage;

(8) federal crop insurance program;

(9) job protection insurance."

SECTION 4. Chapter 75, Title 38 of the 1976 Code is amended by adding:

"Article 8
Job Protection Insurance

Section 38-76-610. Job protection insurance means the business of providing monthly benefits to employees of the railroad industry or to bus drivers and truck drivers employed by common carriers for loss of wages arising from their discharge or suspension as a penalty or method of discipline imposed by the individual employer. Benefit funds administered by and through labor unions for their members are not considered job protection insurance."

SECTION 5. This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Rep. KOHN explained the amendment.

The amendment was then adopted.

Rep. LIMEHOUSE proposed the following Amendment No. 2 (Doc. No. 4987U), which was adopted.

Amend the report, as and if amended, Section 38-75-610, as contained in SECTION 4, page 3662-3, line 3, after /employer./ by inserting:

/Coverages provided under job protection insurance are not subject to guaranty funds as may be provided under the laws of this State unless specifically indicated in the laws governing those funds./

Amend title to conform.

Rep. LIMEHOUSE explained the amendment.

The amendment was then adopted.

Rep. HUFF moved to adjourn debate upon the Bill until Wednesday, May 31, which was adopted.

H. 3739--COMMITTEE OF CONFERENCE APPOINTED
MESSAGE FROM THE SENATE

The following was received.
Columbia, S.C., May 30, 1989

Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the House to H. 3739:
H. 3739 -- Reps. Sheheen, Huff, Rama, Felder, Smith, Hodges, G. Brown, Tucker, Wilder, Harvin, Keesley, Snow, Waites, Mappus, McCain, McEachin, McElveen, Jaskwhich, McLellan, Elliott, J.W. Johnson, Hendricks, Rhoad, McAbee, Burch, J. Bailey, Harwell, Wright, T. Rogers, R. Brown, Stoddard, McGinnis, Nettles, Lockemy, Gregory and Keyserling: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 10 TO TITLE 4 SO AS TO PROVIDE FOR THE LEVY OF A SALES AND USE TAX IN A COUNTY AREA BY SETTING FORTH DEFINITIONS, PURPOSES, AND REQUIREMENTS FOR A REFERENDUM, COLLECTION, USES, AND DISTRIBUTION.
Very respectfully,
President

On motion of Rep. FELDER, the House insisted upon its amendments.

Whereupon, the Chair appointed Reps. GENTRY, BOAN and McCAIN to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

ORDERED TO THIRD READING

The following Bill was taken up, read the second time, and ordered to a third reading:

H. 4117 -- Rep. L. Martin: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF DACUSVILLE RECREATION ASSOCIATION OF PICKENS COUNTY.

H. 3600-FREE CONFERENCE POWERS REJECTED

Rep. McLELLAN moved that the Committee of Conference on the following Bill be resolved into a Committee of Free Conference and briefly explained the Conference Committee's reasons for this request.

H. 3600
(THE GENERAL APPROPRIATIONS BILL)

Rep. T. ROGERS spoke against the request.

Rep. T. ROGERS moved that the House resolve itself into a Committee of the Whole.

Rep. FELDER demanded the yeas and nays, which were taken resulting as follows:

Yeas 95; Nays 21

Those who voted in the affirmative are:

Alexander, M.O.        Altman                 Bailey, G.
Bailey, J.             Bailey, K.             Baker
Barber                 Barfield               Beasley
Blackwell              Blanding               Boan
Brown, G.              Brown, J.              Bruce
Burch                  Burriss, M.D.          Carnell
Chamblee               Clyborne               Cole
Cooper                 Corbett                Cork
Davenport              Derrick                Elliott
Faber                  Fant                   Farr
Felder                 Ferguson               Foster
Gentry                 Glover                 Gordon
Harris, J.             Harris, P.             Harvin
Harwell                Haskins                Hayes
Hearn                  Huff                   Johnson, J.C.
Kay                    Keegan                 Keesley
Keyserling             Kohn                   Koon
Lanford                Limehouse              Littlejohn
Lockemy                Manly                  Mappus
Martin, D.             Mattos                 McAbee
McBride                McGinnis               McLeod
McTeer                 Moss                   Neilson
Nesbitt                Phillips               Quinn
Rama                   Rhoad                  Rogers, J.
Rogers, T.             Rudnick                Sharpe
Sheheen                Smith                  Snow
Stoddard               Taylor                 Townsend
Tucker                 Vaughn                 Waites
Waldrop                Washington             Wells
Whipper                Wilkes                 Wilkins
Williams, D.           Williams, J.           Winstead
Wofford                Wright

Total-95

Those who voted in the negative are:

Alexander, T.C.        Baxley                 Brown, H.
Burriss, T.M.          Corning                Gregory
Hallman                Hendricks              Hodges
Jaskwhich              Kirsh                  Klapman
Martin, L.             McCain                 McEachin
McElveen               McLellan               Nettles
Short                  Simpson                Wilder

Total--21

So, the motion to resolve itself into a Committee of the Whole was agreed to.

COMMITTEE OF THE WHOLE

The SPEAKER appointed Rep. J. ROGERS, Chairman of the Committee.

THE COMMITTEE RISES

At 5:30 P.M., the Committee arose by a division vote of 69 to 41.

SPEAKER IN CHAIR

Rep. LIMEHOUSE spoke against the request.

Rep. LIMEHOUSE moved that the House resolve itself into a Committee of the Whole, which was agreed to by a division vote of 69 to 41.

COMMITTEE OF THE WHOLE

The SPEAKER appointed Rep. J. ROGERS, Chairman of the Committee.

THE COMMITTEE RISES

At 7:20 P.M., the Committee arose by a division vote of 71 to 27.

MOTION ADOPTED

Rep. SHEHEEN moved that a Report of the Committee of the Whole be printed in the Journal, which was agreed to.

COMMITTEE OF THE WHOLE REPORT

Rep. McEACHIN moved that Section 16 of Part II of the Appropriations Bill be stricken which was not agreed to by a division vote of 24 to 68.

Rep. T. ROGERS moved that the 10.6 million dollar income tax increase which the conferees have agreed to impose on a portion of the population, state retirees, be returned to state retirees in benefits or annuities which was agreed to by a division vote of 63 to 49.

Rep. BAKER moved that the capital gains provision be stricken from the Bill which was agreed to by a division vote of 81 to 20.

Rep. SHEHEEN moved that the House express its sentiments that it does not wish to include an early retirement provision for state employees in the Appropriations Bill which was agreed to by a division vote of 50 to 48.

Rep. T. ROGERS moved that the homestead exemption for persons 65 years of age or older be increased from $20,000 to $25,000 which was agreed to by a division vote of 85 to 14.

Rep. M.D. BURRISS moved that the conferees be instructed to protect the rights of the retired military and federal employees to collect refunds of taxes collected illegally and to repeal Section 48 which was agreed to by a division vote of 68 to 18.

SPEAKER IN CHAIR

Rep. McEACHIN moved that the House do now adjourn.

Rep. HASKINS demanded the yeas and nays, which were taken resulting as follows:

Yeas 13; Nays 90

Those who voted in the affirmative are:

Baker                  Blanding               Burriss, M.D.
Burriss, T.M.          Davenport              Hearn
Lanford                Littlejohn             McCain
McEachin               McLeod                 Nettles
Rhoad

Total-13

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Altman
Bailey, G.             Bailey, J.             Bailey, K.
Barber                 Barfield               Baxley
Bennett                Blackwell              Boan
Brown, G.              Brown, H.              Brown, J.
Burch                  Carnell                Chamblee
Clyborne               Cole                   Cooper
Corbett                Cork                   Elliott
Faber                  Fair                   Felder
Foster                 Gentry                 Glover
Gregory                Hallman                Harris, J.
Harris, P.             Harvin                 Harwell
Haskins                Hayes                  Hendricks
Hodges                 Huff                   Jaskwhich
Johnson, J.C.          Johnson, J.W.          Kay
Keegan                 Keesley                Kirsh
Klapman                Kohn                   Koon
Limehouse              Lockemy                Manly
Mappus                 Martin, D.             Martin, L.
McAbee                 McBride                McElveen
McGinnis               McLellan               McTeer
Moss                   Neilson                Nesbitt
Phillips               Quinn                  Rama
Rogers, T.             Rudnick                Sharpe
Sheheen                Short                  Simpson
Smith                  Snow                   Sturkie
Townsend               Tucker                 Vaughn
Waites                 Waldrop                Wells
Whipper                White                  Wilkes
Winstead               Wofford                Wright

Total-90

So, the House refused to adjourn.

MOTION REJECTED

Rep. FABER moved to rescind Rule 3.9, which was rejected by a division vote of 27 to 81.

The question then recurred to the motion to grant free conference powers.

Reps. FELDER and WILKES spoke against the request.

Rep. WILKES moved that the House resolve itself into a Committee of the Whole.

Rep. T. ROGERS demanded the yeas and nays, which were taken resulting as follows:

Yeas 60; Nays 49

Those who voted in the affirmative are:

Altman                 Bailey, G.             Bailey, J.
Bailey, K.             Barber                 Barfield
Blanding               Brown, G.              Brown, J.
Burch                  Burriss, M.D.          Carnell
Chamblee               Cole                   Cooper
Corbett                Cork                   Derrick
Elliott                Faber                  Felder
Ferguson               Foster                 Gentry
Glover                 Harris, J.             Harris, P.
Harvin                 Harwell                Huff
Kay                    Keegan                 Keesley
Koon                   Littlejohn             Lockemy
Martin, D.             McAbee                 McBride
McGinnis               McLeod                 Moss
Neilson                Nesbitt                Rogers, J.
Rogers, T.             Rudnick                Sharpe
Smith                  Snow                   Sturkie
Taylor                 Tucker                 Waites
Waldrop                Washington             Wilkes
Williams, D.           Winstead               Wright

Total-60

Those who voted in the negative are:

Alexander, M.O.        Alexander, T.C.        Baker
Baxley                 Beasley                Blackwell
Boan                   Brown, H.              Burriss, T.M.
Clyborne               Davenport              Fair
Gregory                Hallman                Haskins
Hayes                  Hearn                  Hendricks
Hodges                 Jaskwhich              Johnson, J.C.
Johnson, J.W.          Keyserling             Kirsh
Klapman                Lanford                Manly
Mappus                 Martin, L.             Mattos
McCain                 McEachin               McElveen
McLellan               Nettles                Phillips
Quinn                  Rama                   Rhoad
Sheheen                Short                  Simpson
Townsend               Vaughn                 Wells
Whipper                White                  Wilkins
Wofford

Total-49

So, the motion to resolve itself into a Committee of the Whole was agreed to.

COMMITTEE OF THE WHOLE

The SPEAKER appointed Rep. J. ROGERS, Chairman of the Committee.

THE COMMITTEE RISES

At 8:05 P.M., the Committee arose.

MOTION ADOPTED

Rep. SHEHEEN moved that a Report of the Committee of the Whole be printed in the Journal, which was agreed to.

COMMITTEE OF THE WHOLE REPORT

Rep. T. ROGERS moved that the House version of the 25 year retirement for state employees be included in the Appropriations Bill, which was agreed to by a division vote of 64 to 49.

SPEAKER IN CHAIR

The question then recurred to the motion to grant free conference powers.

The yeas and nays were taken resulting as follows:

Yeas 60; Nays 54

Those who voted in the affirmative are:

Alexander, M.O.        Alexander, T.C.        Altman
Bailey, G.             Bailey, J.             Bailey, K.
Barber                 Barfield               Baxley
Beasley                Bennett                Blackwell
Brown, H.              Brown, J.              Burch
Carnell                Chamblee               Elliott
Faber                  Farr                   Ferguson
Foster                 Gentry                 Glover
Harris, J.             Harris, P.             Harvin
Harwell                Hendricks              Johnson, J.C.
Johnson, J.W.          Keyserling             Kirsh
Klapman                Manly                  Mappus
Martin, D.             Mattos                 McAbee
McBride                McGinnis               McKay
McLellan               McTeer                 Neilson
Nesbitt                Rhoad                  Rogers, J.
Rogers, T.             Rudnick                Sheheen
Simpson                Snow                   Taylor
Waites                 Washington             Whipper
White                  Williams, D.           Wright

Total-60

Those who voted in the negative are:

Baker                  Blanding               Boan
Brown, G.              Bruce                  Burriss, M.D.
Burriss, T.M.          Clyborne               Cole
Cooper                 Corbett                Cork
Corning                Davenport              Derrick
Fair                   Felder                 Gregory
Hallman                Haskins                Hayes
Hearn                  Hodges                 Huff
Jaskwhich              Kay                    Keegan
Keesley                Koon                   Lanford
Littlejohn             Lockemy                Martin, L.
McCain                 McEachin               McElveen
McLeod                 Moss                   Nettles
Phillips               Quinn                  Rama
Sharpe                 Short                  Smith
Sturkie                Townsend               Tucker
Vaughn                 Waldrop                Wilkes
Wilkins                Winstead               Wofford

Total-54

So, having failed to receive the necessary two-thirds vote, the request for free conference powers was rejected.

Rep. LANFORD moved that the House do now adjourn, which was adopted.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4124 - Reps. J. Rogers, McEachin, Gentry and D. Martin: A CONCURRENT RESOLUTION TO FIX TUESDAY, JUNE 20, 1989, AT 12:00 NOON AS THE TIME FOR ELECTING A SUCCESSOR FOR THE FAMILY COURT CIRCUIT, SEAT 3, JUDGE OF THE FIFTH JUDICIAL WHOSE TERM EXPIRES IN 1989.

H. 4126 -- Reps. McBride, Taylor, T. Rogers, Faber, M.D. Burriss, Waites, J. Brown, Corning, T.M. Burriss, Quinn and Hearn: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE REVEREND DR. JAMES ARTHUR HOLMES OF COLUMBIA FOR THE OUTSTANDING SERVICE AND CONTRIBUTIONS HE HAS PROVIDED TO HIS LOCAL COMMUNITY AND THE STATE OF SOUTH CAROLINA.

H. 4127 -- Rep. Harvin: A CONCURRENT RESOLUTION EXPRESSING THE DEEPEST SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY AT THE DEATH OF THE HONORABLE JOSEPH HENRY KING, M.D., OF CLARENDON COUNTY AND EXTENDING HEARTFELT SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

H. 4128 -- Reps. Harvin, Clyborne and McTeer: A CONCURRENT RESOLUTION CONGRATULATING THE SOUTH CAROLINA STATE BOARD FOR TECHNICAL AND COMPREHENSIVE EDUCATION FOR ITS ROLE IN CAUSING SOUTH CAROLINA TO BE CHOSEN BY THE "KEEP AMERICA WORKING" PROJECT OF THE AMERICAN ASSOCIATION OF COMMUNITY AND JUNIOR COLLEGES AS THE TOP STATE/EMPLOYER/INDUSTRY PARTNERSHIP.

ADJOURNMENT

At 8:15 P.M. the House in accordance with the motion of Rep. LANFORD adjourned to meet at 10:00 A.M. tomorrow.


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