South Carolina General Assembly
115th Session, 2003-2004
Journal of the Senate

Wednesday, June 4, 2003
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

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

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

Beloved, hear St. Paul's words to the Philippians, Chapter 2:12:

"Therefore, my beloved, just as you have always obeyed...work out your own salvation with fear and trembling; for it is God who is at work in you, enabling you both to will and to work for His good pleasure."
Let us pray.

Father, help us to sublimate these odious tasks!

We thank You for the spirit of long suffering You have provided for all of us in these stressful days.

If any worthy task, today, becomes difficult, help us not to abandon it until we have found a resolution.

Help us to make our system work. We prefer this to having our decisions made by some evil dictatorial tyrant.

Have mercy on us.
Amen!

Point of Quorum

At 11:09 A.M., Senator J. VERNE SMITH made the point that a quorum was not present. It was ascertained that a quorum was not present.

RECESS

At 11:09 A.M., on motion of Senator J. VERNE SMITH, the Senate receded from business subject to the Call of the Chair.

At 11:41 A.M., the Senate resumed.

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

Presentation of Service Pins

In commemoration of continuous service with the State of South Carolina, Senator McCONNELL, PRESIDENT Pro Tempore of the Senate, along with Senator DRUMMOND, presented certificates and awarded service pins to the following Senate staff for their respective years of state service:

Sharon Gunter                 10 years

Jean Tisdale                 10 years

Jane Shuler                   10 years

Amy Alexander               20 years

Martha Craig                 20 years

Barbara Lengel               20 years

Lisa Nichols                 20 years

Becky Gunter                 30 years

Dorothy "Dottie" Miller         50 years

All were highly commended for their years of devoted and loyal service.

MESSAGE FROM THE GOVERNOR

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

Statewide Appointment

Initial Appointment, South Carolina Mining Council, with term to commence June 30, 2000, and to expire June 30, 2004

Mining Industry

James P. Daniel, P. O. Box 8834, Greenville, S.C. 29604 VICE James E. Neason

Referred to the Committee on Agriculture and Natural Resources.

Local Appointments

Initial Appointment, Darlington County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Deatrice B. Curtis, P. O. Box 185, Darlington, S.C. 29540 VICE Glenn Atkinson

Reappointment, Laurens County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Paul Dean Lyles, 3538 Highway 221-S, Laurens, S.C. 29360

Initial Appointment, Florence County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Rena Valarie C. White, 101 East Roughfork Street, Florence, S.C. 29501

Initial Appointment, Florence County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Jake Franklin Strickland, 3176 Old Creek Road, Scranton, S.C. 29591 VICE Shirley W. Vause (deceased)

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Harold A. Cuff, 2517 Marathon Drive, Columbia, S.C. 29209

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Willie H. Womble, Jr., 6706 Formosa Drive, Columbia, S.C. 29206

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Golie S. Augustus, P. O. Box 4181, Columbia, S.C. 29240

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

James K. Redding, 308 Stonegate Drive, Columbia, S.C. 29223-6412

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Valerie R. Stroman-Boyd, P. O. Box 9381, Columbia, S.C. 29290

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Michael R. Davis, 123 Saddlemount, Hopkins, S.C. 29061

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

George Anderson Surles, 113 Bostwick Ridge, Columbia, S.C. 29229

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Clevette L. Hudnell, 1400 Huger Street, Columbia, S.C. 29201

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Donald Jeffery Simons, 215 Willie Wilson Road, Eastover, S.C. 29044

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Melvin W. Maurer, 161 Midhurst Court, Irmo, S.C. 29063

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Phillip F. Newsom, 9890 Windsor Lake Blvd., Columbia, S.C. 29223

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Clemon L. Stocker, 135 American Ave., Hopkins, S.C. 29061

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Samuel Peay, 954 Campanella Drive, Columbia, S.C. 29203

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Kirby D. Shealy, Jr., 1825 St. Julian, 14-L, Columbia, S.C. 29204

VETO SUSTAINED

(R43, H3041 (Word version)) -- Reps. Witherspoon, Littlejohn, Kirsh, Umphlett, Coates and Cotty: AN ACT TO AMEND CHAPTER 11, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROTECTION OF GAME, BY ADDING SECTION 50-11-315 SO AS TO PROVIDE THAT ALL PERSONS HUNTING DEER MUST WEAR A HAT, SHIRT, COAT, OR VEST OF SOLID VISIBLE INTERNATIONAL ORANGE OR AT LEAST FORTY PERCENT VISIBLE INTERNATIONAL ORANGE, AND TO PROVIDE EXCEPTIONS.

The veto of the Governor was taken up for immediate consideration.

Senator GREGORY moved that the veto of the Governor be overridden.

Senator McCONNELL argued contra to the motion to override the veto.

Senator LAND argued in favor of the motion to override the veto.

The question was put: Shall the Act become law, the veto of the Governor to the contrary notwithstanding?

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

Ayes 20; Nays 24

AYES

Anderson                  Drummond                  Elliott
Glover                    Gregory                   Hayes
Holland                   Hutto                     Land
Leventis                  Matthews                  McGill
Moore                     O'Dell                    Patterson
Rankin                    Reese                     Ryberg
Setzler                   Short

Total--20

NAYS

Alexander                 Branton                   Courson
Cromer                    Fair                      Ford
Giese                     Grooms                    Hawkins
Knotts                    Kuhn                      Leatherman
Malloy                    Martin                    McConnell
Mescher                   Peeler                    Ravenel
Richardson                Ritchie                   Smith, J. Verne
Thomas                    Verdin                    Waldrep

Total--24

Having failed to receive the necessary vote, the veto by the Governor was sustained, and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 3, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.108, H. 4091 by a vote of 4 to 0:
(R108, H4091 (Word version)) -- Rep. Trotter: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAYS MISSED ON APRIL 22 AND 23, 2003, BY THE STUDENTS OF HOLLY SPRINGS ELEMENTARY SCHOOL IN PICKENS COUNTY, WHEN THE SCHOOL WAS CLOSED DUE TO EMERGENCY FLOOR REPAIR NECESSITATED BY SEVERE WATER DAMAGE, ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
Very respectfully,
Speaker of the House

Received as information.

VETO OVERRIDDEN

(R108, H4091 (Word version)) -- Rep. Trotter: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAYS MISSED ON APRIL 22 AND 23, 2003, BY THE STUDENTS OF HOLLY SPRINGS ELEMENTARY SCHOOL IN PICKENS COUNTY, WHEN THE SCHOOL WAS CLOSED DUE TO EMERGENCY FLOOR REPAIR NECESSITATED BY SEVERE WATER DAMAGE, ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.

The veto of the Governor was taken up for immediate consideration.

Senator MARTIN moved that the veto of the Governor be overridden.

The question was put: Shall the Act become law, the veto of the Governor to the contrary notwithstanding?

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

Ayes 46; Nays 0

AYES

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes
Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Ravenel
Reese                     Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

Total--46

NAYS

Total--0

The necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 3, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.101, H. 3436 by a vote of 2 to 0:
(R101, H3436 (Word version)) -- Reps. Young, Chellis, Bailey and Harrell: AN ACT TO ESTABLISH THE DORCHESTER COUNTY BOARD OF ELECTIONS AND REGISTRATION AND PROVIDE FOR ITS MEMBERSHIP AND GOVERNANCE, AND TO ABOLISH THE DORCHESTER COUNTY ELECTION COMMISSION AND THE DORCHESTER COUNTY BOARD OF VOTER REGISTRATION AND DEVOLVE ITS POWERS AND DUTIES IN THE BOARD ESTABLISHED BY THIS ACT.
Very respectfully,
Speaker of the House

Received as information.

VETO OVERRIDDEN

(R101, H3436 (Word version)) -- Reps. Young, Chellis, Bailey and Harrell: AN ACT TO ESTABLISH THE DORCHESTER COUNTY BOARD OF ELECTIONS AND REGISTRATION AND PROVIDE FOR ITS MEMBERSHIP AND GOVERNANCE, AND TO ABOLISH THE DORCHESTER COUNTY ELECTION COMMISSION AND THE DORCHESTER COUNTY BOARD OF VOTER REGISTRATION AND DEVOLVE ITS POWERS AND DUTIES IN THE BOARD ESTABLISHED BY THIS ACT.

The veto of the Governor was taken up for immediate consideration.

Senator MARTIN moved that the veto of the Governor be overridden.

The question was put: Shall the Act become law, the veto of the Governor to the contrary notwithstanding?

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

Ayes 46; Nays 0

AYES

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes
Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Ravenel
Reese                     Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

Total--46

NAYS

Total--0

The necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.

Doctor of the Day

Senator KUHN introduced Dr. R. Layton McCurdy of Charleston, S.C., Doctor of the Day.

Leave of Absence

At 4:15 P.M., Senator DRUMMOND requested a leave of absence from 7:00 - 11:00 P.M. tonight.

Leave of Absence

At 5:40 P.M., Senator CROMER requested a leave of absence from 5:45 - 8:00 P.M. this evening.

Expression of Personal Interest

Senator LAND rose for an Expression of Personal Interest.

RECALLED

H. 3462 (Word version) -- Reps. Edge, Barfield, Clemmons, Keegan, Viers and Witherspoon: A CONCURRENT RESOLUTION TO REQUEST APPROPRIATE FEDERAL AND STATE HIGHWAY OFFICIALS TO DESIGNATE CERTAIN HIGHWAYS IN SOUTH CAROLINA AS PART OF NEW INTERSTATE HIGHWAYS WHICH CONGRESS HAS AUTHORIZED AND WHICH ARE SCHEDULED TO COME WITHIN THE BOUNDARIES OF SOUTH CAROLINA.

Senator RYBERG asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation and order the Resolution placed on the Calendar for consideration tomorrow.

There was no objection.

RECALLED AND READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 4018 (Word version) -- Rep. Cato: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-180 SO AS TO DEFINE "PROFESSIONAL SPORTS TEAM PLAYER" AND "PLAYER" FOR PURPOSES OF THE SOUTH CAROLINA WORKERS' COMPENSATION LAW; AND TO ADD SECTIONS 42-1-330 AND 42-1-340 SO AS AUTHORIZE A PROFESSIONAL SPORTS TEAM PLAYER TO EXEMPT HIMSELF FROM THE WORKERS' COMPENSATION LAW UPON GIVING PROPER NOTICE AND TO PROVIDE FOR THE FORM AND THE MANNER IN WHICH THE NOTICE MUST BE GIVEN.

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

There was no objection.

The Bill was recalled from the Committee on Judiciary.

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

There was no objection.

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

On motion of Senator LEATHERMAN, with unanimous consent, the Bill was given a second reading with notice of general amendments on third reading, carrying over all amendments to third reading and ordered placed on the third reading Calendar for consideration tomorrow.

RECALLED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 4166 (Word version) -- Reps. Harrell, Bowers and McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 33-10-110 SO AS TO AUTHORIZE A CORPORATION, BY AMENDMENT OF ITS ARTICLES OF INCORPORATION, TO CONVERT TO A NONPROFIT PUBLIC BENEFIT CORPORATION OR A NONPROFIT MUTUAL BENEFIT CORPORATION, TO PROVIDE FOR THE EFFECTIVE DATE OF THE CONVERSION, THE REQUIREMENTS FOR THE AMENDMENTS TO THE ARTICLES, AND THE VOTING REQUIREMENT FOR ANY SHAREHOLDERS; AND TO AMEND SECTION 33-31-401, RELATING TO THE NAME OF A NONPROFIT CORPORATION, SO AS TO PROVIDE THAT A CORPORATION THAT CONVERTS TO NONPROFIT MAY CONTINUE TO USE ITS ORIGINAL NAME.

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

There was no objection.

The Bill was recalled from the committee.

Senator McCONNELL asked unanimous consent to give the Bill a second reading with notice of general amendments.

There was no objection.

RECALLED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 4286 (Word version) -- Rep. Walker: A BILL TO AMEND SECTION 7-7-490, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN SPARTANBURG COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS IN SPARTANBURG COUNTY, DESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD, AND PROVIDE THAT THE POLLING PLACES FOR THESE PRECINCTS MUST BE DETERMINED BY THE SPARTANBURG COUNTY ELECTION COMMISSION WITH THE APPROVAL OF A MAJORITY OF SPARTANBURG COUNTY LEGISLATIVE DELEGATION.

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

There was no objection.

The Bill was recalled from the committee.

Senator REESE asked unanimous consent to give the Bill a second reading with notice of general amendments.

There was no objection.

RECALLED, AMENDED, READ THE SECOND TIME

H. 3739 (Word version) -- Reps. Ceips, Whipper, M.A. Pitts, Altman, Anthony, Bailey, Battle, Cato, Clark, Dantzler, Duncan, Emory, Hamilton, Harrison, Haskins, Herbkersman, Keegan, Kirsh, Koon, Leach, Littlejohn, Mahaffey, Martin, McCraw, Miller, J.M. Neal, Phillips, Pinson, Rhoad, Richardson, Sinclair, Umphlett, Whitmire, Lourie and Owens: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-3905 SO AS TO PROVIDE THAT THE OPERATOR OF A MOTOR VEHICLE MUST ACTIVATE THE VEHICLE'S INTERIOR LIGHTS WHEN STOPPED BY A LAW ENFORCEMENT OFFICER, AND TO PROVIDE A PENALTY FOR A PERSON WHO FAILS TO COMPLY WITH THIS PROVISION.

Senator RANKIN asked unanimous consent to make a motion to recall the Bill from the Committee on Transportation.

There was no objection.

The Bill was recalled from the committee.

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

There was no objection.

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

Senator RANKIN proposed the following amendment (3739R001.LAR), which was adopted:

Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting:

/ SECTION   1.   Section 56-3-115 of the 1976 Code, as last amended by Act 333 of 1998, is further amended to read:

"Section 56-3-115.   The owner of a vehicle commonly known as a golf cart, if he has a valid driver's license, may obtain a permit from the department upon the payment of a fee of five dollars and proof of financial responsibility which permits his agent, employees, or him to:

(1)   operate the golf cart on a secondary highway or street within two miles of his residence or place of business during daylight hours only; and

(2)   cross a primary highway or street while traveling along a secondary highway or street within two miles of his residence or place of business during daylight hours only."     /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

The amendment was adopted.

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

H. 3739 -- Ordered to a Third Reading

On motion of Senator RANKIN, with unanimous consent, H. 3739 was ordered to receive a third reading on Thursday, June 5, 2003.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 525 (Word version) -- Senators Rankin and Elliott: A BILL TO AMEND ARTICLE 1 OF CHAPTER 32, TITLE 27, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VACATION TIME SHARING PLANS, SO AS TO REVISE, DELETE, AND ADD CERTAIN DEFINITIONS, REVISE PROVISIONS RELATING TO ADVERTISING AND CONVEYANCE OF VACATION TIME SHARING PLANS SO AS TO DELETE CERTAIN LICENSE REQUIREMENTS FOR SELLERS AND TO EXEMPT CERTAIN COMMUNICATIONS FROM ADVERTISEMENT AND PROMOTION RESTRICTIONS, REVISE THE TERMS OF THE NOTICE OF THE RIGHT TO CANCELLATION REQUIREMENTS IN CONTRACTS FOR THE PURCHASE OF VACATION TIME SHARING PLANS AND PROVIDE FOR THE EFFECTIVE DATE OF NOTICE OF CANCELLATION, ESTABLISH NEW PROCEDURES FOR THE DISTRIBUTION OF REFUNDS UPON CANCELLATION OF CONTRACTS AND ESTABLISHMENT AND MAINTENANCE OF ESCROW ACCOUNTS IN THAT CONNECTION, PROVIDE FOR MATTERS TO BE DISCLOSED IN CONTRACTS INCLUDING WARNINGS AGAINST RELIANCE ON THE PURCHASE AS AN INVESTMENT, DELETE THE REQUIREMENT OF AN EXAMINATION FOR REGISTRATION RELATING TO LICENSES FOR SELLERS OF VACATION TIME SHARING PLANS, EXEMPT EMPLOYEES OF THE SELLER FROM LICENSING REQUIREMENTS, PROVIDE FOR VICARIOUS LIABILITY OF THE CONTROLLING SELLER, TIGHTEN PROVISIONS RELATING TO POWERS OF THE SOUTH CAROLINA REAL ESTATE COMMISSION IN CONNECTION WITH THE INVESTIGATION OF AN APPLICATION FOR REGISTRATION OF A TIME SHARING PLAN INCLUDING ASSURANCES AND BONDING AGAINST ENCUMBRANCES, AND MAKE TECHNICAL CHANGES TO CONFORM THE ARTICLE; AND TO AMEND SECTION 27-50-30, RELATING TO EXEMPTIONS IN CONNECTION WITH THE RESIDENTIAL PROPERTY CONDITION DISCLOSURE ACT, SO AS TO EXEMPT FROM THE ACT A TRANSFER OF A VACATION TIME SHARING PLAN OR A VACATION MULTIPLE OWNERSHIP INTEREST.

The House returned the Bill with amendments.

Senator RANKIN proposed the following amendment (JUD0525.005), which was adopted:

Amend the bill, as and if amended, page 9, beginning on line 14, in Section 27-32-40(A)(5)(b), as contained in SECTION 1, by striking lines 14 through 16 and inserting therein the following:

/   TRANSFER BY DEED AT ANY TIME IN CASE THE ACCOMMODATIONS OR FACILITIES PROVIDED IN THE CONTRACT OR COMPARABLE ACCOMMODATIONS OR FACILITIES ARE NO LONGER AVAILABLE.'   /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

The amendment was adopted.

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

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 746 (Word version) -- Senators McConnell, Moore and Ritchie: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, JUNE 18, 2003, AS THE TIME TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE SEVENTH JUDICIAL CIRCUIT, SEAT 2, WHOSE TERM EXPIRES JUNE 30, 2006.
l:\s-jud\bills\mcconnell\jud0100.gfm.doc

On motion of Senator RITCHIE, with unanimous consent, the Concurrent Resolution was introduced and ordered placed on the Calendar without reference.

S. 747 (Word version) -- Senators Patterson, Giese, Jackson and Courson: A SENATE RESOLUTION JOINING IN THE MANY TRIBUTES TO THE HONORABLE JASPER M. CURETON AS HE RETIRES FROM HIS SEAT ON THE SOUTH CAROLINA COURT OF APPEALS AND HONORING HIS COUNTLESS CONTRIBUTIONS TO THE CAUSE OF JUSTICE IN BOTH THE LEGAL SYSTEM AND IN SOCIETY.
l:\council\bills\nbd\11910mm03.doc

The Senate Resolution was adopted.

H. 3819 (Word version) -- Reps. Delleney, Haskins, Altman, G. Brown, Duncan, Emory, Frye, Hamilton, Keegan, Kirsh, Koon, Loftis, J. M. Neal, Pinson, E. H. Pitts, M. A. Pitts, Talley, Taylor, Toole, Vaughn, Viers, Walker, Simrill, Gilham and G. R. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-17-745 SO AS TO ENACT THE "PROHIBITION OF HUMAN CLONING ACT" TO MAKE IT UNLAWFUL FOR A PERSON TO PERFORM OR PARTICIPATE IN HUMAN CLONING, TO DERIVE ANY PRODUCT FROM HUMAN CLONING, OR TO SHIP, RECEIVE, TRANSPORT, TRANSFER, OR DISTRIBUTE IN INTERSTATE COMMERCE AN EMBRYO DERIVED FROM HUMAN CLONING, TO DEFINE CLONING, TO PROVIDE CRIMINAL PENALTIES, AND TO PROVIDE FOR SUSPENSION OF THE PROFESSIONAL LICENSE OF A PERSON VIOLATING THIS ACT.

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

H. 4346 (Word version) -- Reps. Keegan, Clemmons, Edge, Hayes, Viers, Witherspoon, Miller and Barfield: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME A PORTION OF OCEAN BOULEVARD IN SURFSIDE BEACH FROM 17TH AVENUE NORTH TO MELODY LANE, IN HONOR OF TERRY BENJAMIN COOPER OF HORRY COUNTY, AND INSTALL APPROPRIATE MARKERS OR SIGNS ON OCEAN BOULEVARD CONTAINING THE WORDS "THE TERRY COOPER BOULEVARD", SO THAT AS THE PUBLIC PASSES THEY WILL REMEMBER THE EXEMPLARY SERVICE OF THIS MODEL SOUTH CAROLINIAN.

On motion of Senator RANKIN, with unanimous consent, the Concurrent Resolution was adopted, ordered returned to the House.

H. 4353 (Word version) -- Reps. Cobb-Hunter, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO RECOGNIZE AND THANK REPRESENTATIVE JOHN J. "BUBBER" SNOW FOR HIS TIRELESS EFFORTS TO PROMOTE SOUTH CAROLINA'S BEACH MUSIC TRADITION IN SUCH A POSITIVE MANNER WHICH HAS BROUGHT TREMENDOUS CREDIT NOT ONLY TO THE ARTISTS INVOLVED BUT TO THE STATE OF SOUTH CAROLINA AS WELL.

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

H. 4357 (Word version) -- Reps. Neilson, J. Hines and Lucas: A CONCURRENT RESOLUTION TO EXPRESS THE STRONG BELIEF OF THE GENERAL ASSEMBLY OF SOUTH CAROLINA THAT THE MOUNTAIN DEW SOUTHERN 500 AND THE CAROLINA DODGE DEALERS 400 SHOULD REMAIN AT THE DARLINGTON RACEWAY AS FEATURED ATTRACTIONS DURING THE SAME YEAR.

Senator LEATHERMAN moved that the Concurrent Resolution be adopted.

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

Ayes 46; Nays 0

AYES

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes
Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Ravenel
Reese                     Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

Total--46

NAYS

Total--0

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

H. 4358 (Word version) -- Reps. Wilkins, J. Brown, Cato, Chellis, Govan, Harrell, Harrison, J. E. Smith, W. D. Smith, Townsend and Witherspoon: A CONCURRENT RESOLUTION TO PROVIDE THAT PURSUANT TO ARTICLE III, SECTION 21 OF THE CONSTITUTION OF THIS STATE AND SECTION 2-1-180 OF THE 1976 CODE WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 5, 2003, NOT LATER THAN 5:00 P.M., EACH HOUSE SHALL STAND ADJOURNED TO MEET ON TUESDAY, JUNE 17, 2003 AT 12:00 P.M., IN STATEWIDE SESSION, AND TO CONTINUE IN STATEWIDE SESSION, IF NECESSARY, UNTIL WEDNESDAY, JUNE 18, 2003, NOT LATER THAN 5:00 P.M., FOR THE CONSIDERATION OF SPECIFIED MATTERS; AND TO PROVIDE THAT WHEN EACH HOUSE ADJOURNS NOT LATER THAN 5:00 P.M., ON WEDNESDAY, JUNE 18, 2003, THE GENERAL ASSEMBLY SHALL STAND ADJOURNED SINE DIE.

On motion of Senator McCONNELL, with unanimous consent, the Concurrent Resolution was introduced and ordered placed on the Calendar without reference.

H. 4359 (Word version) -- Rep. Allen: A CONCURRENT RESOLUTION TO CONGRATULATE THE MEMBERS, MINISTERS, STAFF, AND FRIENDS OF THE OLD PILGRIM MISSIONARY BAPTIST CHURCH OF SIMPSONVILLE ON THE OCCASION OF THE CELEBRATION OF ITS ONE HUNDRED THIRTY-FIFTH ANNIVERSARY THIS YEAR.

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

H. 4363 (Word version) -- Rep. Harrell: A CONCURRENT RESOLUTION TO CONGRATULATE THE WEST ASHLEY HIGH SCHOOL "WILDCATS" GIRLS SOCCER TEAM OF CHARLESTON COUNTY ON WINNING BACK-TO-BACK CLASS AAAA STATE CHAMPIONSHIP TITLES AND TO COMMEND THE HARD WORK AND DETERMINATION OF THE PLAYERS, COACHES, AND STAFF FOR THEIR 2003 CLASS AAAA STATE CHAMPIONSHIP WIN.

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

H. 4364 (Word version) -- Rep. Harrell: A CONCURRENT RESOLUTION TO CONGRATULATE THE WEST ASHLEY HIGH SCHOOL "WILDCATS" GIRLS SOCCER TEAM OF CHARLESTON COUNTY ON WINNING BACK-TO-BACK CLASS AAAA STATE CHAMPIONSHIP TITLES AND TO COMMEND THE HARD WORK AND DETERMINATION OF THE PLAYERS, COACHES, STAFF, AND FAMILIES FOR THEIR 2003 CLASS AAAA STATE CHAMPIONSHIP WIN.

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

H. 4377 (Word version) -- Reps. Chellis, Young, Bailey and Harrell: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 17A IN DORCHESTER COUNTY FROM LUDEN DRIVE TO OLD ORANGEBURG ROAD AS THE "WILLIAM BOLAND BELL AND MARION EUGENE WRIGHT II HIGHWAY" IN HONOR OF THESE LAW ENFORCEMENT OFFICERS WHO LOST THEIR LIVES IN THE LINE OF DUTY, AND TO ERECT APPROPRIATE SIGNS OR MARKERS ALONG THIS PORTION OF THE HIGHWAY CONTAINING THE WORDS "WILLIAM BOLAND BELL AND MARION EUGENE WRIGHT II HIGHWAY".

On motion of Senator BRANTON, with unanimous consent, the Concurrent Resolution was adopted, ordered returned to the House.

H. 4381 (Word version) -- Reps. Quinn, Huggins and E. H. Pitts: A CONCURRENT RESOLUTION TO CONGRATULATE THE TOWN OF IRMO ON THE OCCASION OF THE THIRTIETH ANNIVERSARY OF THE IRMO OKRA STRUT FESTIVAL AND TO COMMEND THE IRMO OKRA STRUT FESTIVAL COMMISSION FOR THEIR WONDERFUL CONTRIBUTIONS TO THEIR COMMUNITY.

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

Message from the House

Columbia, S.C., June 3, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
S. 28 (Word version) -- Senators Knotts and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-5090 SO AS TO PROVIDE A DESIGNATION ON THE STATE INDIVIDUAL INCOME TAX RETURN ALLOWING A TAXPAYER TO MAKE A CONTRIBUTION TO THE SOUTH CAROLINA LAW ENFORCEMENT ASSISTANCE PROGRAM AND TO PROVIDE FOR THE USE OF THE CONTRIBUTIONS MADE PURSUANT TO THIS DESIGNATION.
asks for a Committee of Conference, and has appointed Reps. McGee, Battle and Cooper to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

S. 28 -- CONFERENCE COMMITTEE APPOINTED

S. 28 (Word version) -- Senators Knotts and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-5090 SO AS TO PROVIDE A DESIGNATION ON THE STATE INDIVIDUAL INCOME TAX RETURN ALLOWING A TAXPAYER TO MAKE A CONTRIBUTION TO THE SOUTH CAROLINA LAW ENFORCEMENT ASSISTANCE PROGRAM AND TO PROVIDE FOR THE USE OF THE CONTRIBUTIONS MADE PURSUANT TO THIS DESIGNATION.

Whereupon, Senators BRANTON, O'DELL and SETZLER were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:

H. 3231 (Word version) -- Reps. Gilham, Stille, Wilkins, Walker, Bales, M.A. Pitts, Cobb-Hunter, Richardson, Ceips, Cotty, Skelton, Owens, Haskins, Martin, Toole, Lourie, Huggins, E.H. Pitts, Talley, Mahaffey, Leach, Hamilton, Loftis, D.C. Smith, McLeod, Thompson and J.E. Smith: A BILL TO AMEND SECTION 56-5-2950, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A MOTOR VEHICLE DRIVER'S IMPLIED CONSENT TO CHEMICAL TESTS OF HIS BREATH, BLOOD, OR URINE FOR THE PURPOSE OF DETERMINING THE PRESENCE OF ALCOHOL OR DRUGS OR THE COMBINATION OF ALCOHOL AND DRUGS IN HIS SYSTEM, SO AS TO PROVIDE THAT A DRIVER WHO REGISTERS AN ALCOHOL CONCENTRATION OF EIGHT ONE-HUNDREDTHS OF ONE PERCENT OR MORE IS GUILTY OF DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, OR A COMBINATION OF ALCOHOL AND DRUGS.
asks for a Committee of Conference, and has appointed Reps. Gilham, Sinclair and Lucas to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

H. 3231 -- CONFERENCE COMMITTEE APPOINTED

H. 3231 (Word version) -- Reps. Gilham, Stille, Wilkins, Walker, Bales, M.A. Pitts, Cobb-Hunter, Richardson, Ceips, Cotty, Skelton, Owens, Haskins, Martin, Toole, Lourie, Huggins, E.H. Pitts, Talley, Mahaffey, Leach, Hamilton, Loftis, D.C. Smith, McLeod, Thompson and J.E. Smith: A BILL TO AMEND SECTION 56-5-2950, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A MOTOR VEHICLE DRIVER'S IMPLIED CONSENT TO CHEMICAL TESTS OF HIS BREATH, BLOOD, OR URINE FOR THE PURPOSE OF DETERMINING THE PRESENCE OF ALCOHOL OR DRUGS OR THE COMBINATION OF ALCOHOL AND DRUGS IN HIS SYSTEM, SO AS TO PROVIDE THAT A DRIVER WHO REGISTERS AN ALCOHOL CONCENTRATION OF EIGHT ONE-HUNDREDTHS OF ONE PERCENT OR MORE IS GUILTY OF DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, OR A COMBINATION OF ALCOHOL AND DRUGS.

Whereupon, Senators McCONNELL, MARTIN and HUTTO were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

NONCONCURRENCE

S. 477 (Word version) -- Senators Ritchie, Ford, Leventis and Richardson: A BILL TO ENACT THE "DOMESTIC VIOLENCE PREVENTION ACT OF 2003"; TO AMEND SECTION 16-1-60, RELATING TO VIOLENT CRIMES, SO AS TO INCLUDE CRIMINAL DOMESTIC VIOLENCE OF A HIGH AND AGGRAVATED NATURE AS A VIOLENT CRIME; TO AMEND ARTICLE 1, CHAPTER 25 OF TITLE 16, RELATING TO CRIMINAL DOMESTIC VIOLENCE OFFENSES, SO AS TO REDEFINE "HOUSEHOLD MEMBER"; TO DELETE FINES AS A PENALTY FOR THESE CRIMINAL DOMESTIC VIOLENCE OFFENSES AND TO AUTHORIZE SUSPENSION OF THE SENTENCE IMPOSED, EXCEPT MANDATORY MINIMUM SENTENCES WHERE APPLICABLE; TO REDEFINE CRIMINAL DOMESTIC VIOLENCE OF A HIGH AND AGGRAVATED NATURE; TO PROVIDE THAT A LAW ENFORCEMENT AGENCY MUST INVESTIGATE AN ALLEGATION OF CRIMINAL DOMESTIC VIOLENCE EVEN IF THE AGENCY WAS NOT NOTIFIED AT THE TIME OF THE VIOLATION; TO AMEND SECTION 17-22-50, RELATING TO PRETRIAL INTERVENTION, SO AS TO PROVIDE THAT A PERSON MUST NOT BE CONSIDERED FOR INTERVENTION IF HE HAS BEEN CHARGED WITH AN OFFENSE CONTAINED IN CHAPTER 25 OF TITLE 16; AND TO AMEND SECTION 56-7-15, RELATING TO UNIFORM TRAFFIC TICKETS, SO AS TO REQUIRE THAT AN OFFICER WHO EFFECTS AN ARREST, BY USE OF A UNIFORM TRAFFIC TICKET, FOR A VIOLATION OF CHAPTER 25 OF TITLE 16, MUST SUBSEQUENTLY COMPLETE AND FILE AN INCIDENT REPORT WITHIN FIFTEEN DAYS OF THE ISSUANCE OF THE TICKET.

The House returned the Bill with amendments.

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

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:

S. 477 (Word version) -- Senators Ritchie, Ford, Leventis and Richardson: A BILL TO ENACT THE "DOMESTIC VIOLENCE PREVENTION ACT OF 2003"; TO AMEND SECTION 16-1-60, RELATING TO VIOLENT CRIMES, SO AS TO INCLUDE CRIMINAL DOMESTIC VIOLENCE OF A HIGH AND AGGRAVATED NATURE AS A VIOLENT CRIME; TO AMEND ARTICLE 1, CHAPTER 25 OF TITLE 16, RELATING TO CRIMINAL DOMESTIC VIOLENCE OFFENSES, SO AS TO REDEFINE "HOUSEHOLD MEMBER"; TO DELETE FINES AS A PENALTY FOR THESE CRIMINAL DOMESTIC VIOLENCE OFFENSES AND TO AUTHORIZE SUSPENSION OF THE SENTENCE IMPOSED, EXCEPT MANDATORY MINIMUM SENTENCES WHERE APPLICABLE; TO REDEFINE CRIMINAL DOMESTIC VIOLENCE OF A HIGH AND AGGRAVATED NATURE; TO PROVIDE THAT A LAW ENFORCEMENT AGENCY MUST INVESTIGATE AN ALLEGATION OF CRIMINAL DOMESTIC VIOLENCE EVEN IF THE AGENCY WAS NOT NOTIFIED AT THE TIME OF THE VIOLATION; TO AMEND SECTION 17-22-50, RELATING TO PRETRIAL INTERVENTION, SO AS TO PROVIDE THAT A PERSON MUST NOT BE CONSIDERED FOR INTERVENTION IF HE HAS BEEN CHARGED WITH AN OFFENSE CONTAINED IN CHAPTER 25 OF TITLE 16; AND TO AMEND SECTION 56-7-15, RELATING TO UNIFORM TRAFFIC TICKETS, SO AS TO REQUIRE THAT AN OFFICER WHO EFFECTS AN ARREST, BY USE OF A UNIFORM TRAFFIC TICKET, FOR A VIOLATION OF CHAPTER 25 OF TITLE 16, MUST SUBSEQUENTLY COMPLETE AND FILE AN INCIDENT REPORT WITHIN FIFTEEN DAYS OF THE ISSUANCE OF THE TICKET.
asks for a Committee of Conference, and has appointed Reps. Lucas, G.M. Smith and Coleman to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3255 (Word version) -- Rep. J.R. Smith: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF THE SCHOOL DISTRICT OF AIKEN COUNTY MUST BE SET BY THE GOVERNING BODY OF THE DISTRICT IN ITS SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3455 (Word version) -- Rep. Talley: A BILL TO AMEND SECTION 44-63-161, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNLAWFUL ACTS INVOLVING VITAL STATISTICS, SO AS TO INCREASE THE PENALTY FOR VIOLATING CERTAIN PROVISIONS OF THIS SECTION, AND TO MAKE TECHNICAL CHANGES.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
S. 581 (Word version) -- Senator Hawkins: A JOINT RESOLUTION TO NAME THE NEW NATIONAL GUARD ARMORY LOCATED ON THE UNIVERSITY OF SOUTH CAROLINA - SPARTANBURG CAMPUS THE "DARWIN H. SIMPSON UNIVERSITY READINESS CENTER" IN RECOGNITION OF MAJOR GENERAL SIMPSON'S PASSIONATE PURSUIT AND TIRELESS EFFORTS IN THE CREATION, FUNDING, AND IMPLEMENTATION OF THIS IMPORTANT NATIONAL GUARD ARMORY.
and has ordered the Resolution enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:

H. 3836 (Word version) -- Reps. Haskins, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO EXPRESS THE GENUINE APPRECIATION AND THANKS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY FOR THE STEADFAST SUPPORT AND LOYALTY OF SPAIN AS AN ALLY OF THE UNITED STATES THROUGHOUT THE IRAQI CRISIS, TO COMMEND THE LEADERS OF THE GOVERNMENT OF SPAIN FOR THEIR COURAGE IN THE FACE OF POPULAR OPPOSITION TO THE INVASION OF IRAQ TO REPLACE SADDAM HUSSEIN AND RID IRAQ OF WEAPONS OF MASS DESTRUCTION, AND TO URGE A CONTINUATION OF GOOD RELATIONS BETWEEN SPAIN AND THE UNITED STATES IN THE YEARS TO COME.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4269 (Word version) -- Reps. Cobb-Hunter, Ott and Rhoad: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF ORANGEBURG COUNTY CONSOLIDATED SCHOOL DISTRICTS THREE, FOUR, AND FIVE MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.99, S. 657 by a vote of 4 to 0:
(R99, S657 (Word version)) -- Senator Martin: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAYS MISSED ON APRIL 22 AND 23, 2003, BY THE STUDENTS OF HOLLY SPRINGS ELEMENTARY SCHOOL IN PICKENS COUNTY, WHEN THE SCHOOL WAS CLOSED DUE TO EMERGENCY FLOOR REPAIR NECESSITATED BY SEVERE WATER DAMAGE, ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 4, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.93, S. 334 by a vote of 2 to 0:
(R93, S334 (Word version)) -- Senator Alexander: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAY MISSED ON AUGUST 9, 2002, BY THE STUDENTS OF TAMASSEE ELEMENTARY SCHOOL, TAMASSEE-SALEM MIDDLE SCHOOL, AND TAMASSEE-SALEM HIGH SCHOOL OF THE SCHOOL DISTRICT OF OCONEE COUNTY WHEN THE SCHOOLS WERE CLOSED DUE TO WATERLINE PROBLEMS IS EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
Very respectfully,
Speaker of the House

Received as information.

HOUSE CONCURRENCES

S. 698 (Word version) -- Senator Malloy: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE LOCATED AT EXIT 131 ALONG INTERSTATE HIGHWAY 20 IN DARLINGTON COUNTY THE "LAURIE COKE LAWSON INTERCHANGE" AND TO INSTALL APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE CONTAINING THE WORDS "LAURIE COKE LAWSON INTERCHANGE".

Returned with concurrence.

Received as information.

S. 736 (Word version) -- Senator Leatherman: A CONCURRENT RESOLUTION TO EXPRESS THE APPRECIATION OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO THE PALMETTO BOOK ALLIANCE FOR ITS OUTSTANDING EFFORT IN CREATING THE SOUTH CAROLINA LITERARY TOUR.

Returned with concurrence.

Received as information.

RETURNED FROM THE HOUSE WITH AMENDMENTS
AMENDED, CONSIDERATION INTERRUPTED

S. 560 (Word version) -- Senators Leatherman, Ritchie, Knotts, Grooms, Verdin, Giese, Branton, Mescher, McConnell, McGill, J. Verne Smith, Alexander, Martin, Short, Moore, Ravenel, O'Dell, Drummond, Hayes, Setzler and Ford: A BILL TO ENACT THE SOUTH CAROLINA LIFE SCIENCES ACT, BY DEFINING A LIFE SCIENCES FACILITY AND PROVIDING THAT A LIFE SCIENCES FACILITY PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH ANNUAL CASH COMPENSATION AT LEAST ONE HUNDRED FIFTY PERCENT OF AVERAGE PER CAPITA INCOME IN THIS STATE IS ELIGIBLE FOR EMPLOYEE RELOCATION EXPENSE REIMBURSEMENT AND THE WAIVER ALLOWED ON THE LIMIT FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, TO ALLOW A TAXPAYER OPERATING A LIFE SCIENCES FACILITY TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF REVENUE NOT TO EXCEED FIFTEEN YEARS DURATION FOR ALLOCATION AND APPORTIONMENT FOR PURPOSES OF CORPORATE INCOME TAX, TO AMEND SECTION 12-37-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPRECIATION ALLOWANCE FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCREASE THE ANNUAL DEPRECIATION ALLOWANCE FOR USE OF CLEAN ROOMS FROM TEN TO FIFTEEN PERCENT AND TO PROVIDE A TWENTY PERCENT ANNUAL DEPRECIATION ALLOWANCE FOR MACHINERY AND EQUIPMENT USED FOR MANUFACTURING IN A LIFE SCIENCES FACILITY AND TO DEFINE "LIFE SCIENCES FACILITY", TO AMEND SECTIONS 11-41-20, 11-41-30, AND 11-41-70, RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE ITS FINDINGS, DEFINITIONS, AND NOTICE REQUIREMENTS TO ALLOW SUCH BONDS TO BE USED FOR INFRASTRUCTURE FOR A LIFE SCIENCES FACILITY IN A PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH AN ANNUAL CASH COMPENSATION AT LEAST TWICE PER CAPITA INCOME IN THE STATE AND PROVIDE THAT, WHILE INFRASTRUCTURE PROVIDED BY THESE BONDS MUST RELATE SPECIFICALLY TO THE PROJECT, SUCH INFRASTRUCTURE IS NOT REQUIRED TO BE LOCATED AT THE PROJECT, AND TO AMEND SECTION 11-41-120, RELATING TO FORMALITIES IN THE ISSUING OF THESE BONDS, SO AS TO REVISE THESE REQUIREMENTS.

The House returned the Bill with amendments.

Amendment No. 1

Senators McCONNELL, KUHN, FORD and ALEXANDER proposed the following Amendment No. 1 (SWB\5520CM03), which was adopted:

Amend the bill, as and if amended, in Section 11-41-30(2) as contained in Section 3C, page 6, by adding at the end of subitem (c) immediately after line 18:

/ (d)   'Project' also includes a four-year culinary arts program at Trident Technical College established pursuant to Section 59-53-425. Subject to the approval of the Department and notwithstanding the requirements provided in Section 11-41-30. This program is entitled to funding of no more than one hundred thousand dollars. /

Amend the bill further, as and if amended, by adding an appropriately numbered penultimate section to read:

/ SECTION   _____.   Article 5, Chapter 53, Title 59 of the 1976 Code is amended by adding:

"Section 59-53-425.   Notwithstanding any other provision of law, the governing commission of Trident Technical College may establish a four-year culinary curriculum program and award baccalaureate degrees in culinary arts for students graduating from this program. This program must be established pursuant to guidelines established by the State Board for Technical and Comprehensive Education in conjunction with the Commission on Higher Education. However, prior approval of either the State Board for Technical and Comprehensive Education or the Commission on Higher Education to establish this program is not required.

In Fiscal Year 2003-2004 funding for this program shall be provided by the State Board for Technical and Comprehensive Education from existing appropriations for instructional programs or from other sources as determined by the state board, only if any funds are available.

Beginning in Fiscal Year 2004-2005 and thereafter, formula funding for this program shall be provided by the State Board for Technical and Comprehensive Education from appropriations to be determined by the General Assembly in a manner consistent with funding for other similar third and fourth years of baccalaureate degrees." /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

Senator SETZLER argued contra to the adoption of the amendment.

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

Objection

At 1:25 P.M., with Senator RAVENEL retaining the floor, Senator KNOTTS asked unanimous consent to make a motion that the Senate recede until 2:15 P.M.

Senator MOORE objected.

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

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

Senator RYBERG argued contra to the adoption of the amendment.

Senator RYBERG moved to lay the amendment on the table.

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

Ayes 8; Nays 34

AYES

Drummond                  Giese                     Gregory
Reese                     Ryberg                    Setzler
Short                     Thomas

Total--8

NAYS

Alexander                 Anderson                  Branton
Cromer                    Elliott                   Fair
Ford                      Glover                    Grooms
Hawkins                   Hayes                     Holland
Hutto                     Jackson                   Knotts
Kuhn                      Land                      Leatherman
Leventis                  Malloy                    Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     Patterson
Peeler                    Rankin                    Ravenel
Richardson                Ritchie                   Verdin
Waldrep

Total--34

The Senate refused to table the amendment. The question then was the adoption of Amendment No. 1.

The amendment was adopted.

Objection

At 1:45 P.M., with Senator RAVENEL retaining the floor, Senator KNOTTS asked unanimous consent to make a motion that the Senate recede until 2:15 P.M.

Senator LEATHERMAN objected.

Amendment No. 4

Senator LEVENTIS proposed the following Amendment No. 4 (JUD560.001), which was adopted:

Amend the bill, as and if amended, page 6, line 15, in Section 11-41-30(2)(b), as contained in SECTION 3. C., by adding the following as a new paragraph at the beginning of line 15:

/   'Project' also includes USC-Sumter for the purposes of implementation of its four-year degree programs. Subject to the approval of the department and notwithstanding any other requirement concerning investment, USC-Sumter is eligible for funding of not more than one hundred thousand dollars to provide additional infrastructure and technology services at USC-Sumter in order to better serve the constituencies serviced by USC-Sumter.   /

Amend the bill further, as and if amended, by adding an appropriately numbered SECTION to read:

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

"Section   _____.   Notwithstanding any other provision of law, the University of South Carolina-Sumter is authorized to offer four-year degrees at the Sumter campus. The provisions of this section are contingent upon the local governments in USC-Sumter's service area providing additional funding for USC-Sumter of two hundred fifty thousand dollars per year. The degree programs as well as a schedule for their implementation must be established by USC-Sumter in conjunction with the Commission on Higher Education, and the Commission on Higher Education must promulgate regulations to effectuate the intent of this section. However, prior approval of the Commission on Higher Education to establish these degree programs is not required."     /

Renumber sections to conform.

Amend title to conform.

Senator LEVENTIS explained the amendment.

Objection

At 1:48 P.M., with Senator LEVENTIS retaining the floor, Senator RYBERG asked unanimous consent to make a motion that the Senate recede until 2:45 P.M.

Senator HUTTO objected.

Senator LEVENTIS continued explaining the amendment.

ACTING PRESIDENT PRESIDES

At 1:56 P.M., Senator RITCHIE assumed the Chair.

Senator LEVENTIS continued explaining the amendment.

ACTING PRESIDENT PRESIDES

At 1:57 P.M.,   Senator MARTIN assumed the Chair.

Senator GIESE spoke on the amendment.

Consideration was interrupted by recess, with Senator GIESE retaining the floor.

RECESS

At 2:12 P.M., with Senator GIESE retaining the floor, on motion of Senator JACKSON, the Senate receded from business until 3:00 P.M.

AFTERNOON SESSION

The Senate reassembled at 3:08 P.M. and was called to order by the PRESIDENT.

Point of Quorum

At 3:09.M., Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

Senator LEATHERMAN moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Ford
Giese                     Glover                    Gregory
Grooms                    Hawkins                   Hayes
Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Patterson                 Peeler
Pinckney                  Rankin                    Ravenel
Reese                     Richardson                Ritchie
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Verdin
Waldrep

A quorum being present, the Senate resumed.

AMENDED, AMENDMENT PROPOSED
CONSIDERATION INTERRUPTED

S. 560 (Word version) -- Senators Leatherman, Ritchie, Knotts, Grooms, Verdin, Giese, Branton, Mescher, McConnell, McGill, J. Verne Smith, Alexander, Martin, Short, Moore, Ravenel, O'Dell, Drummond, Hayes, Setzler and Ford: A BILL TO ENACT THE SOUTH CAROLINA LIFE SCIENCES ACT, BY DEFINING A LIFE SCIENCES FACILITY AND PROVIDING THAT A LIFE SCIENCES FACILITY PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH ANNUAL CASH COMPENSATION AT LEAST ONE HUNDRED FIFTY PERCENT OF AVERAGE PER CAPITA INCOME IN THIS STATE IS ELIGIBLE FOR EMPLOYEE RELOCATION EXPENSE REIMBURSEMENT AND THE WAIVER ALLOWED ON THE LIMIT FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, TO ALLOW A TAXPAYER OPERATING A LIFE SCIENCES FACILITY TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF REVENUE NOT TO EXCEED FIFTEEN YEARS DURATION FOR ALLOCATION AND APPORTIONMENT FOR PURPOSES OF CORPORATE INCOME TAX, TO AMEND SECTION 12-37-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPRECIATION ALLOWANCE FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCREASE THE ANNUAL DEPRECIATION ALLOWANCE FOR USE OF CLEAN ROOMS FROM TEN TO FIFTEEN PERCENT AND TO PROVIDE A TWENTY PERCENT ANNUAL DEPRECIATION ALLOWANCE FOR MACHINERY AND EQUIPMENT USED FOR MANUFACTURING IN A LIFE SCIENCES FACILITY AND TO DEFINE "LIFE SCIENCES FACILITY", TO AMEND SECTIONS 11-41-20, 11-41-30, AND 11-41-70, RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE ITS FINDINGS, DEFINITIONS, AND NOTICE REQUIREMENTS TO ALLOW SUCH BONDS TO BE USED FOR INFRASTRUCTURE FOR A LIFE SCIENCES FACILITY IN A PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH AN ANNUAL CASH COMPENSATION AT LEAST TWICE PER CAPITA INCOME IN THE STATE AND PROVIDE THAT, WHILE INFRASTRUCTURE PROVIDED BY THESE BONDS MUST RELATE SPECIFICALLY TO THE PROJECT, SUCH INFRASTRUCTURE IS NOT REQUIRED TO BE LOCATED AT THE PROJECT, AND TO AMEND SECTION 11-41-120, RELATING TO FORMALITIES IN THE ISSUING OF THESE BONDS, SO AS TO REVISE THESE REQUIREMENTS.

The Senate resumed consideration of the Bill, the question being the adoption of Amendment No. 4 (JUD450.001) proposed by Senator LEVENTIS.

Senator GIESE continued arguing contra to the adoption of the amendment.

Senator ELLIOTT spoke on the amendment.

Senator LEVENTIS moved that the amendment be adopted.

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

Ayes 26; Nays 15

AYES

Anderson                  Branton                   Cromer
Drummond                  Elliott                   Ford
Holland                   Hutto                     Jackson
Knotts                    Kuhn                      Land
Leventis                  Malloy                    Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     O'Dell
Patterson                 Rankin                    Ravenel
Reese                     Short

Total--26

NAYS

Alexander                 Courson                   Fair
Giese                     Gregory                   Grooms
Hayes                     Leatherman                Peeler
Ritchie                   Ryberg                    Setzler
Smith, J. Verne           Verdin                    Waldrep

Total--15

The amendment was adopted.

Amendment No. 5

Senator RITCHIE proposed the following Amendment No. 5 (GJK\ 20723SD03), which was adopted:

Amend the bill, as and if amended, by adding the following new SECTIONS to be appropriately numbered to read:

/   SECTION   ____.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 45

Venture Capital Investment Act of South Carolina

Section 11-45-10.   This chapter may be cited as the 'Venture Capital Investment Act of South Carolina'.

Section 11-45-20.   The General Assembly desires to increase the availability of equity, near-equity, or seed capital in amounts of one hundred million dollars or more for emerging, expanding, relocating, and restructuring enterprises in the State, so as to help strengthen the state's economic base, and to support the economic development goals of this State as described in the strategic plan of the Department of Commerce to be published annually beginning in 2003. The General Assembly also desires to address the long-term capital needs of small-sized and medium-sized firms, to address the needs of micro enterprises, to expand availability of venture capital, and to increase international trade and export finance opportunities for South Carolina based companies.

Section 11-45-30.   For purposes of this chapter:

(1)   'Authority' means the South Carolina Department of Commerce.

(2)   'Certificate' means a document executed by the fund verifying a tax credit for any year to which a lender is entitled.

(3)   'Equity, near-equity, or seed capital' means capital invested in common or preferred stock, debt with equity conversion rights, royalty rights, limited partnership interests, limited liability company interests, and any other securities or rights that evidence ownership in private business.

(4)   'Fund' means the South Carolina Venture Capital Fund.

(5)   'Investor' means any corporation, limited liability company, or unincorporated business entity, including a general or limited partnership, that is selected by the fund to receive investments from the fund and then make venture capital investments therewith that meet the requirements of this chapter. An investor or a senior member of its management team must be a legal resident of this State and have a minimum of five years' experience in venture capital investing. In addition, substantially all of an investor's business activity shall be venture capital investing.

(6)   'Innovation Fund' means the South Carolina Technology Innovation Fund.

(7)   'Person' means any individual, corporation, partnership, or other lawfully organized entity.

(8)   'Research and development' means laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improvements to existing products. Research and development also includes intellectual property, information technology, or technology transfer endeavors. The term does not include efficiency surveys, management studies, consumer surveys, economic surveys, advertising, or promotion, or research in connection with literary, historical, or similar projects.

(9)   'Tax credit' means a credit against a lender's bank tax liability pursuant to Chapter 11, Title 12, or insurance premium tax liability pursuant to Chapter 7, Title 38 or other tax liability under Title 38, as the case may be, or in the case of a repeal or reduction by the State of the tax liability imposed by these sections, any other tax imposed upon such a lender by this State.

(10)   'Venture capital' means equity, near-equity, and seed capital financing including, without limitation, early stage research and development capital for startup enterprises, and other equity, near-equity, or seed capital for growth and expansion of entrepreneurial enterprises.

(11)   'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, insurance and insurance companies subject to a state premium tax liability under Chapter 7 of Title 38, and a captive insurance company regulated under Chapter 90 of Title 38.

(12)   'Capital commitment' means the amount of money committed by the fund to an investor for a term of up to ten years, which term may be extended to provide for an orderly liquidation of the investor's portfolio investments.

Section 11-45-40.   (A)   There is created, within the authority, a separate and distinct fund to be an independent instrumentality exercising essential public functions, and to be known as the 'fund' as defined in Section 11-45-30(4).

(B)(1)   The fund must be governed by a board composed of seven directors one of whom must be appointed by the Speaker of the House of Representatives, one of whom must be appointed by the Chairman of the House Ways and Means Committee, one of whom must be appointed by the President Pro Tempore of the Senate, one of whom must be appointed by the Chairman of the Senate Finance Committee, and three of whom must be appointed by the Governor, one of whom shall serve as chairman. No sitting member of the General Assembly may be appointed to serve on the board in any capacity including an ex officio capacity. Directors must be selected based upon outstanding knowledge and leadership, must be knowledgeable in the management of money and finance, and must possess experience in the management of investments similar in nature and in value to those of the fund. Directors serve for a term of office of four years and until their successors are appointed and qualify, except that of the initial directors appointed, the member appointed by the Speaker of the House of Representatives shall serve for an initial term of two years, the members appointed by the President Pro Tempore of the Senate shall serve for an initial term of two years, and one member appointed by the Governor shall serve for an initial term of two years so as to allow the terms of the directors to be staggered.

(2)   The directors have the authority to govern the fund in accordance with the requirements of this chapter.

(3)   A conflict of interest is considered to exist if a director of the fund, an officer, agent, or employee thereof, or any for-profit firm or corporation in which a director, officer, agent, or employee of the fund, or any member of his immediate family, as defined in Section 2-17-10(7), is an officer, partner, or principal stockholder engages in business activity with the fund either directly or indirectly in which the director, officer, agent, employee, or firm would personally benefit. In this case, the director, officer, agent, or employee shall refrain from any involvement of any type in regard to the activity including, but not limited to, discussing the proposed activity with another person associated with the entity desiring to engage in the activity with the fund, negotiating any aspects of the proposed activity with the fund, voting on any matter pertaining to the activity, and communicating with other board members, officers, agents, or employees of the fund concerning the activity. When a conflict arises, the director, officer, agent, or employee involved in the conflict, at the discretion of the board, shall resolve the conflict or resign from the position creating the conflict. Directors, officers, agents, and employees of the fund are subject to all provisions of Chapter 17, Title 2 and Chapter 13, Title 8, and the provisions of this item are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

(C)   The fund must be located within the Department of Commerce and is separate and distinct from the state general fund. The monies deposited in the accounts of the fund must be managed and invested by the directors with the assistance, if necessary, of professionals in the area of financial management and selected by a process as determined by the board of directors.

Section 11-45-50.   (A)   The fund must seek capital commitments to the fund in accordance with procedures approved by the State Budget and Control Board. The fund may retain an amount annually not to exceed one percent of the capital commitments received for expenses incurred by the fund. Capital contributions received by the fund must be in cash or in immediately available funds and are to be used only as provided by this chapter.

(B)   The fund shall retain any fees earned after repayment to lenders to use as a contingency fund for future obligations to lenders and to fulfill additional capital commitments. If at any time a principal or interest payment is due and the fund has insufficient monies to repay same, the fund shall issue tax credit certificates in an amount to meet the obligation as provided for below, and tax credits as stipulated in subsection (C) are hereby established in these required amounts.

(C)   These tax credits may be used to offset the lenders' state bank tax or premium tax liability in the event the fund does not meet its obligation to repay the lenders' cash investment together with required interest at the date and time the payment is due. These tax credits may be carried forward without limitation but are not refundable.

(D)   The tax credits may also be transferred among bank or insurance company lenders for consideration, and then used by the subsequent holder. These tax credits shall take the form of a certificate issued by the board of the fund stating the amounts, year, and conditions of the tax credits reflected on the certificate.

(E)   The board in accepting loans to the fund giving rise to these tax credits shall ensure that no more than fifty million dollars in total tax credit certificates are issued and outstanding at any one time with no more than ten million dollars in tax credit certificates being redeemable for any one year.

(F)   The fund is authorized to use the proceeds of loans received from lenders, together with other available monies, for making investments with venture capital investors and for paying and funding services as necessary.

(G)   No part of the fund may inure to the benefit of or be distributed to its employees, officers, or board of directors, or to members of their immediate families as this term is defined in Section 2-17-10(7), except that the fund is authorized to pay reasonable compensation for services provided by employees of the fund and out-of-pocket expenses incurred by its employees, officers, or board members, as long as such compensation does not create a conflict of interest pursuant to Section 11-45-40. The provisions of this subsection are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

Section 11-45-60.   The fund shall solicit from investors plans for the investing of capital in the fund in accordance with the requirements of this chapter. The fund shall consider and select the investment plans and shall select investors qualified to:

(1)   make the most effective and efficient utilization of the investment; and

(2)   invest in venture capital investments, requiring equity, near-equity, or seed capital which promote the economic development goals of this State as described in the strategic plan of the Department of Commerce adopted and published as of that date.

Section 11-45-70.   In order for the board of directors of the fund to place monies of the fund with an investor for the purpose of making a venture capital investment, the following requirements must be met:

(1)   No investment by an investor in any one investment may exceed five million dollars or fifteen percent of the committed capital of the investor, whichever is less. In addition, an investor must agree to invest at least an amount equal to the fund's capital commitment to such investor in South Carolina based companies.

(2)(a)   While the board of directors of the fund shall give preference to investors, otherwise qualified, that maintain either a headquarters or an office staffed by an investment professional in South Carolina, investments may be made with investors not principally located in South Carolina; provided, that the investors are otherwise qualified under this chapter and have other venture capital investments in South Carolina or in South Carolina based companies at least equal to the total amount of monies placed with that investor by the fund.

(b)   'South Carolina based companies' for purposes of this section means any corporation, limited liability company, or unincorporated business organization, including a general or limited partnership, that has its principal place of business located in this State and has at least fifty percent of its gross assets and fifty percent of its employees located in this State at the time of the initial investment. If a corporation, limited liability company, or unincorporated business organization is a member of an affiliated group, the gross assets and the number of employees of all of the members of the affiliated group, wherever those assets and employees are located, shall be included for the purpose of determining the percentage of the corporation's, company's, or organization's gross assets and employees located in this State.

(3)   When selecting investors with which to place the fund's venture capital investments, the board of directors shall give preference to investors that have on or before the date of the fund's capital commitment, aggregate capital commitments of at least three times the amount of the fund's capital commitment. An investor's capital commitments for purposes of this requirement include private, federal, or other nonstate funds secured by the investor.

(4)   Investors must develop a repayment plan based on expected liquidity events of its portfolio investments. All repayments must occur within ten years, subject to extension as described in Section 11-45-30(12).

(5)   No investment may violate the provisions of Section 11, Article X of the Constitution of this State.

Section 11-45-80.   In addition to and apart from the other duties and functions of the fund, there is created under the administration of the board of directors of the fund, another fund entitled the South Carolina Technology Innovation Fund which shall receive that funding as may be provided by law. The board shall contract with a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, for administration of the Innovation Fund.

The Innovation Fund must be used by the board to:

(1)   award small grants for the best and most creative ideas from South Carolina research universities' technology incubators with the awards to be available for eligible students and innovative knowledge-based enterprises that are located in a research university incubator. These grants are to be awarded to inspire and encourage knowledge-based technology and intellectual property transfers from research university faculty and students to the marketplace;

(2)   design a major education, marketing, and public relations program to ensure that residents of South Carolina, members of the General Assembly, and potential venture capital investors understand and support the requirements for participation in the fund, the strategic need for venture capital funding, and for grant support for deserving entrepreneurs.

Section 11-45-90.   (A)   The board shall provide loan, investment, tax credit, and expense reports at least quarterly during the fiscal year to the Governor, the General Assembly, and other appropriate officials and entities.

(B)   In addition to the quarterly reports provided in subsection (A), the board shall provide an annual report to the Governor, the General Assembly, and other appropriate officials and entities containing at a minimum the following information:

(1)   monies from the fund placed in venture capital investments with approved investors cumulatively and during that fiscal year;

(2)   the extent of current loan obligations including principal and interest requirements;

(3)   the amount and time lines of tax credit certificates issued both cumulatively and during that fiscal year;

(4)   a description of a material interest held by a director, officer, or employee of the fund with respect to the investments or assets of the fund;

(5)   a schedule of the rates of return, net of total investment expense, on assets of the fund overall and on assets aggregated by category over the most recent one-year, three-year, five-year, and ten-year periods, to the extent available; and

(6)   a schedule of the sum of total investment expense and total general administrative expense for the fiscal year expressed as a percentage of the fair value of assets of the fund on the last day of the fiscal year, and an equivalent percentage for the preceding five fiscal years, if applicable.

(C)   These disclosure requirements are cumulative to and do not replace other reporting requirements provided by law.

Section 11-45-100.   The fund has the power to promulgate regulations and make a contract, execute a document, perform an act, or enter into a financial or other transaction necessary to implement this chapter."

SECTION   ____.   Upon certification to the Secretary of State by the President of the Palmetto Seed Capital Corporation that the remaining investments of the private sector limited partners of the Palmetto Seed Capital Fund Limited Partnership have been liquidated, Chapter 44 of Title 41 of the 1976 Code is repealed, and any remaining public assets and liabilities of the Palmetto Seed Capital Corporation shall be transferred to the South Carolina Venture Capital Fund herein created.

SECTION   ____.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of Chapter 45 of Title 11 of the 1976 Code, is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of Chapter 45 of Title 11 of the 1976 Code, the General Assembly hereby declaring that it would have passed Chapter 45 of Title 11 of the 1976 Code, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective. /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Amendment No. 6

Senators RITCHIE, LAND, LEATHERMAN, MOORE, ALEXANDER, McGILL, MARTIN and COURSON proposed the following amendment (BBM\9901SL03):

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

/ SECTION   __.   Sections 59-101-1 through 59-101-410 of the 1976 Code are designated as Article 1, General Provisions.

SECTION   __.   Chapter 101, Title 59 of the 1976 Code is amended by adding:

  "Article 3

Public Institutions of Higher Learning

Infrastructure Restructuring Act

Section 59-101-710.   A public institution of higher learning may spend federal and other nonstate appropriated sources of revenue to provide lump-sum bonuses at levels outlined in a plan approved by the governing body of the respective public institution of higher learning and according to guidelines established in the plan. The public institution of higher learning must maintain documentation to show that the use of federal funds for this purpose is in compliance with federal law. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to the respective retirement systems.

Section 59-101-720.   A public institution of higher learning may offer educational fee waivers to no more than four percent of the total student body.

Section 59-101-730.   Notwithstanding another provision of law, and in recognition and support of the opportunities for economic development presented through the expansion of research activities, a public institution of higher learning may establish research grant positions funded by federal grants, public charity grants, private foundation grants, research grants, medical school practice plans, individual private gifts, externally generated revenue for service or testing activities, and grant generated revenue or a combination of these, without regard to the authorized number of full-time equivalency (FTE) positions allocated to the public institution of higher learning, provided that:

(1)   state funds must not be used to fund any portion of research grant positions. FTE positions funded solely or partially by state or other funding sources shall remain subject to the number of FTE positions authorized for each public institution of higher learning;

(2)   research grant positions shall not occupy FTE positions;

(3)   research grant positions may be established using other funds during the proposal development or pre-award stages of grant funding in anticipation of specific grant or project funding;

(4)   research grant positions may be established for multiple years; however, research grant positions are limited to and may not exist beyond the duration of the funding for the project or grant or any subsequent renewal. At the discretion of the public institution of higher learning other funds may be used to fund continued employment between the expiration of one grant and the subsequent renewal of the same or similar grant or the award of an additional grant. When funding for the project or grant ends or is insufficient to continue payments under the conditions of the project or grant, research grant employees must be terminated and these positions must cease to exist. Research grant employees are exempt from the provisions of Sections 8-17-310 through 8-17-380;

(5)   persons occupying research grant positions may be eligible for all benefits, not to exceed those benefits available to covered state employees, provided that funds are available within the grant or project or by use of grant-generated revenue;

(6)   persons occupying research grant positions are employed at-will and do not have grievance rights afforded to covered state employees or faculty of the respective public institution of higher learning. Research grant employees are not entitled to compensation beyond the date of termination, other than for the part of the project or grant that has been performed; and

(7)   discretionary determinations by a public institution of higher learning as to whether to hire an employee pursuant to this section are final and not subject to administrative or judicial appeal.

Section 59-101-740.   A public institution of higher learning may offer and fund, from any source of revenue, health insurance to full-time graduate assistants according to a plan approved by the governing body of the respective public institution of higher learning.

Section 59-101-750.   The board of trustees of a public institution of higher learning is vested with the power of eminent domain. The authority granted in this section applies only to private lands. The lands condemned must be used by the public institution of higher learning in the performance of its functions in the acquisition, construction, and operation of facilities for the public institution of higher learning, and is subject to the approval of the State Budget and Control Board.

Section 59-101-760.   Notwithstanding another provision of law, a public institution of higher learning is not required to seek approval from the Attorney General before retaining outside counsel independent of other state agency or office processes.

Section 59-101-770.   A public institution of higher learning may negotiate for its annual audit and quality review process with reputable certified public accountant firms selected from a list preapproved by the State Auditor's office."

SECTION   __.   Section 59-147-30 of the 1976 Code, as last amended by Act 302 of 1996, is further amended to read:

"Section 59-147-30.   (A)   Subject to the approval of the State Budget and Control Board by resolution duly adopted, the university may issue revenue bonds of the university for the purpose of financing or refinancing in whole or in part the cost of acquisition, construction, reconstruction, renovation and improvement of land, buildings, and other improvements to real property and equipment for the purpose of providing facilities serving the needs of the university including, but not limited to, dormitories, apartment buildings, dwelling houses, bookstore and other university operated stores, laundry, dining halls, cafeterias, parking facilities, student recreational, entertainment and fitness related facilities, inns, conference and other nondegree educational facilities and similar auxiliary facilities of the university and any other facilities which are auxiliary to any of the foregoing excluding, however, athletic department projects which primarily serve varsity athletic teams of the university.

(B)   For purposes of this chapter, 'permanent improvement' is defined as:

(1)   acquisition of land, regardless of cost;

(2)   acquisition, as opposed to the construction, of buildings or other structures, regardless of cost;

(3)   construction of additional facilities and work on existing facilities for any given project including their renovation, repair, maintenance, alteration, demolition in those instances in which the total cost of all work involved is $500,000 or more;

(4)   architectural and engineering and other types of planning, and design work, regardless of cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and are not to be included;

(5)   capital lease purchase of a facility acquisition or construction; and

(6)   equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract should be included as a part of a project.

A permanent improvement that meets the above definition must become a project, regardless of the source of funds. However, an agency that has been authorized or appropriated capital improvement bond, capital reserve fund, state appropriated funds or state infrastructure bond fund by the General Assembly for capital improvements shall process a permanent improvement project, regardless of the amount."

SECTION   __.   Section 11-35-710 of the 1976 Code as last amended by Act 264 of 2000, is further amended by adding appropriately numbered items at the end:

"( )   The construction of a facility on land owned or occupied by a public institution of higher learning, as defined in Section 59-103-5, where the land is under an initial lease to a third party for a term of at least fifteen but not more than forty years, provided that:

(a)   the third party is not a foundation or eleemosynary organization affiliated with the public institutions of higher learning;

(b)   the lease of the land from the public institution of higher learning to the third party complies with the State Leasing Procedures of the South Carolina Budget and Control Board;

(c)   public funds are not used in the construction of the facility;

(d)   there is no obligation on the public institution of higher learning to lease space in the facility;

(e)   if the public institution of higher learning decides to lease space in the facility, the lease of space complies with the State Leasing Procedures of the South Carolina Budget and Control Board; and

(f)   at or before the end of the term of the land lease, and at the discretion of the public institution of higher learning with approval of the South Carolina Budget and Control Board, construction on the land will be turned over to the public institution of higher learning or the land restored to a developable condition.

(g)   the lease of the land from the public institution of higher learning to the third party does not involve the construction of a health care facility as defined in Section 44-7-130 that has not been approved by the South Carolina Budget and Control Board.

( )   The three sectors of public institutions of higher learning shall submit a procurement process to the State Commission on Higher Education to be submitted for approval by the State Budget and Control Board. These processes shall include provisions for audit and recertification."

SECTION   __.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 51.

South Carolina Research University Infrastructure Act

Section 11-51-10.   This chapter may be cited as the 'South Carolina Research University Infrastructure Act'.

Section 11-51-20.   The General Assembly finds:

(1)   That by Section 4, Act 10 of 1985, the General Assembly ratified an amendment to Article X, Section 13(6)(c), of the Constitution of this State, 1895. As amended, Article X, Section 13(6)(c) limits the issuance of certain general obligation debt of the State such that the maximum annual debt service on general obligation bonds of the State, excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, may not exceed five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.

(2)   Article X, Section 13(6)(c), as amended, further provides that the percentage rate of general revenues of the State by which general obligation bond debt service is limited may be reduced to four or increased to seven percent by legislative enactment passed by two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.

(3)   That pursuant to Article X, Section 13(6)(c), the General Assembly, in Act 254 of 2002, increased to five and one-half percent the percentage rate of the general revenues of the State by which general obligation bond debt service is limited with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure for economic development within the State.

(4)   Facility and infrastructure constraints prevent the advancement of research projects as well as restrict the ability of the research universities, as defined in Section 11-51-30, to retain faculty and generate research dollars. A dedicated source of funds to repay general obligation debt authorized pursuant to this chapter would provide a consistent funding stream for capital improvements at the research universities and allow for improved planning of capital expenditures to meet the mission of the research universities.

(5)   In order to advance economic development and create a knowledge based economy, thereby increasing job opportunities, and to facilitate and increase research within the State at the research universities, it is in the interest of the State that, pursuant to Article X, Section 13(6)(c), that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to six percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation debt issued pursuant to the provisions of this chapter.

(6)   That Article X, Section 13(5) of the Constitution of this State, 1895, authorizes the General Assembly to authorize general obligation debt by two-thirds vote of the members of each House of the General Assembly, subject to such conditions or restrictions limiting the incurring of such indebtedness contained in the authorization to incur such indebtedness, and the provisions of Article X, Section 13(3) of the Constitution of this State.

(7)   That Article X, Section 13(5) provides additional constitutional authority for the bonds authorized by this chapter and the designated principal amount of general obligation bonds to be issued pursuant to the debt limit as it existed prior to this chapter.

Section 11-51-30.   As used in this chapter:

(1)   'Facilities and administration costs' means depreciation and use allowances, interest on debt associated with buildings, equipment and capital improvements, operation and maintenance expenses, library expenses, general administration expenses, departmental administration, sponsored projects administration, and student administration and services.

(2)   'General obligation debt' means any indebtedness of the State which must be secured in whole or in part by a pledge of the full faith, credit and taxing power of the State, including, but not limited to, bonds, notes and other evidences of indebtedness, and issued pursuant to the provisions of this chapter.

(3)   'Research Centers of Excellence Review Board' means the board created pursuant to Section 2-75-10.

(4)   'Research infrastructure project' or 'project' means a project that would advance economic development and create a knowledge based economy, thereby increasing job opportunities, or facilitate and increase externally funded research at the research universities, including, but not limited to, land acquisition, acquisition or construction of buildings, equipment, furnishings, site preparation, road and highway improvements, water and sewer infrastructure, and other things necessary or convenient to advance economic development or to facilitate and increase research at the research universities.

(5)   'Research universities' means Clemson University, The Medical University of South Carolina, and the University of South Carolina - Columbia.

(6)   'State Board' means the South Carolina State Budget and Control Board.

Section 11-51-40.   To obtain funds for allocation to the research universities for the financing of research infrastructure projects, there may be issued general obligation debt pursuant to the conditions prescribed by this chapter.

Section 11-51-50.   (A)   Pursuant to the provisions of Article X, Section 13(6)(c) of the Constitution of this State, 1895, as amended, and by enactment of this chapter, the General Assembly provides that general obligation debt may be issued pursuant to this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds and bonds issued pursuant to this chapter, outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, will not exceed six percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds. The State may not issue general obligation bonds, excluding economic development bonds and bonds authorized pursuant to this chapter, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on these general obligation bonds, outstanding and being issued, exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.

(B)   At the time of issuance of general obligation debt pursuant to this chapter, the maximum annual debt service on such general obligation debt outstanding or being issued must not exceed one-half of one percent of the general revenues of this State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.

(C)   With respect to the first seven hundred million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsections (A) and (B) of this section, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5) of the Constitution of this State, 1895.

Section 11-51-60.   In the event the research infrastructure project is used for a purpose other than as approved by the Research Centers of Excellence Review Board pursuant to Section 11-51-80(2), the research university for which the research infrastructure project was originally established shall reimburse the State a percentage of debt service on the general obligation debt issued to finance the debt, the percentage to be equal to the percentage of the research infrastructure project which is used for an unapproved purpose. Amounts reimbursed to the State pursuant to this section must be applied, as directed by the State Board, to the debt service on the applicable general obligation debt, either currently or by way of defeasance, or to the general fund of the State.

Section 11-51-70.   As a condition precedent to the issuance of general obligation debt pursuant to the provisions of this chapter, the Research Centers of Excellence Review Board shall certify to the State Board that at least fifty percent of the cost of such research infrastructure project is being provided by private, federal, municipal, county or other local government sources. This portion of the cost, in the discretion of the Research Centers of Excellence Review Board, may be in the form of cash; cash equivalent; buildings including sale-lease back; gifts in kind including, but not limited to, land, roads, water and sewer, and maintenance of infrastructure; facilities and administration costs; equipment; or furnishings.

Section 11-51-80.   Before the issuance of general obligation debt, the Research Centers of Excellence Review Board shall provide the Joint Bond Review Committee and the State Board the following:

(1)   a description of the research infrastructure project for which general obligation debt is requested to be issued;

(2)   a certification by the Research Centers of Excellence Review Board that the provisions of Section 11-51-70 have been met, that the source of funding has been identified, and that the research infrastructure project complies with the provisions of this chapter;

(3)   the total cost of the research infrastructure project and the principal amount of general obligation debt requested to be issued;

(4)   a tentative time schedule setting forth the period of time during which the proceeds of the general obligation debt requested to be issued will be expended;

(5)   a debt service schedule showing the annual principal and interest requirements, at a projected current rate of interest, on the requested general obligation debt;

(6)   the total amount of the general obligation debt issued pursuant to this chapter; and

(7)   a debt service schedule showing the principal and interest requirements for the general obligation debt outstanding and the proposed general obligation debt at a projected current rate of interest.

Section 11-51-90.   The principal amount of the general obligation debt must be provided to each of the research universities on a competitive basis by the Research Centers of Excellence Review Board.

Section 11-51-100.   Following the receipt of the information presented pursuant to Section 11-51-80, and after approval by the Joint Bond Review Committee, the State Board, by resolution duly adopted, shall effect the issuance of general obligation debt, or pending the issuance of the general obligation debt, effect the issuance of general obligation debt anticipation notes pursuant to Chapter 17 of this title.

Section 11-51-110.   To effect the issuance of general obligation debt, the State Board shall adopt a resolution providing for the issuance of general obligation debt pursuant to the provisions of this chapter. The authorizing resolution must include:

(1)   a schedule showing the aggregate principal amount of general obligation debt issued, the annual principal payments required to retire the general obligation debt, and the interest on the general obligation debt;

(2)   the amount of general obligation debt proposed to be issued;

(3)   a schedule showing future annual principal requirements and estimated annual interest requirements on the general obligation debt to be issued;

(4)   a certificate evidencing that the provisions of Section 11-51-70 of this chapter have been or will be met; and

(5)   a certificate of the State Auditor as to the general fund revenues of the State for the fiscal year next preceding, excluding revenues pledged to the payment of State Highway Bonds and State Institution Bonds.

Section 11-51-120.   The general obligation debt must bear the date and mature at the time that the State Board resolution provides, except that the general obligation debt may not mature more than thirty years from its date of issue. The general obligation debt may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Board before its issue. The general obligation debt may bear interest payable at the times and at the rates determined by the state board.

Section 11-51-125.(A)   In addition to the research infrastructure projects eligible for funding from the proceeds of bonds authorized pursuant to this chapter, an amount equal to thirty million dollars of these bonds is authorized at the following public institutions of higher learning in the amounts specified for each institution:

The Citadel                                       $2,179,635

Coastal Carolina                                   2,220,590

College of Charleston                               2,951,776

Francis Marion                                   1,659,281

Lander                                             996,885

SC State                                         2,660,194

USC-Aiken                                         449,988

USC-Beaufort                                       286,919

USC-Spartanburg                                 1,112,877

USC-Lancaster                                     587,116

USC-Salkehatchie                                   331,867

USC-Sumter                                       632,846

USC-Union                                         250,000

Winthrop                                         2,992,607

Aiken TC                                         676,225

Central Carolina TC                                 628,050

Denmark TC                                       250,000

Florence-Darlington TC                               433,288

Greenville TC                                     1,282,796

Horry-Georgetown TC                             1,468,903

Midlands TC                                     1,301,269

Northeastern TC                                     250,000

Orangeburg-Calhoun TC                             258,644

Piedmont TC                                       703,599

Spartanburg TC                                     471,696

TC of the Low Country                               250,000

Tri-County TC                                     777,884

Trident TC                                       1,219,106

Williamsburg TC                                   250,000

York TC                                           465,958

Total   $30,000,000

(B)   Amounts authorized for each institution pursuant to subsection (A) of this section must be used by the institution for buildings maintenance projects. The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. All such projects must be approved by the Joint Bond Review Committee and the state board.

Section 11-51-130.   General obligation debt issued pursuant to this chapter is exempt from taxation as provided in Section 12-2-50.

Section 11-51-140.   General obligation debt issued pursuant to this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, State Treasurer, and Secretary of State may sign the general obligation debt by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon the general obligation debt. The delivery of the general obligation debt executed and authenticated, as provided in the State Board resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication.

Section 11-51-150.   For the payment of the principal of and interest on the general obligation debt issued and outstanding pursuant to this chapter there is pledged the full faith, credit, and taxing power of this State, and in accordance with the provisions of Section 13(4), Article X of the Constitution of this State, 1895, the General Assembly allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal of and interest on the general obligation debt authorized by this chapter.

Section 11-51-160.   General obligation debt must be sold by the Governor and the State Treasurer upon sealed proposals, after publication of a summary notice of the sale one or more times at least seven days before the sale, in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The general obligation debt may be awarded upon the terms and in the manner as prescribed by the State Treasurer. The right is reserved to reject bids and to re-advertise the general obligation debt for sale. For the purpose of bringing about successful sales of the general obligation debt, the State Treasurer may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. Expenses incident to the sale of the general obligation debt must be paid from the proceeds of the sale of the general obligation debt.

Section 11-51-170.   The proceeds of the sale of general obligation debt must be received by the State Treasurer and applied by him to the purposes for which issued, but the purchasers of the general obligation debt are in no way liable for the proper application of the proceeds to the purposes for which they are intended.

Section 11-51-180.   It is lawful for executors, administrators, guardians, and other fiduciaries to invest monies in their hands in general obligation debt issued pursuant to this chapter.

Section 11-51-190.   The proceeds received from the issuance of general obligation debt, after deducting the costs of issuance, must be expended only for the purpose of providing research infrastructure projects."

SECTION   __.   Chapter 75, Title 2 of the 1976 Code, is amended by adding:

"Section 2-75-90.   (A)   Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50 of the 1976 Code, to meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided for in subsection (B) that are derived from private, federal, municipal, county, or local government sources, excluding state appropriations to the institution, tuition, or fees. Subject to the restrictions in subsection (B), only federal dollars received after July 1, 2003, may be used to meet the endowed professorships matching requirement.

(B)   The matching funds in subsection (A) may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other sciences and research that create well-paying jobs and enhanced economic opportunities for the people of South Carolina and that are approved by the Research Centers of Excellence Review Board."

SECTION   __.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective. /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator KUHN argued contra to the adoption of the amendment.

Objection

With Senator KUHN retaining the floor, Senator RITCHIE asked unanimous consent to take up S. 477 for immediate consideration for the purpose of nonconcurring.

Senator KUHN objected.

Senator KUHN argued contra to the adoption of the amendment.

ACTING PRESIDENT PRESIDES

At 4:39 P.M.,   Senator MARTIN assumed the Chair.

Senator KUHN argued contra to the adoption of the amendment.

Objection

With Senator KUHN retaining the floor, Senator McCONNELL asked unanimous consent to take up H. 3530 for immediate consideration.

Senator KUHN objected.

Senator KUHN argued contra to the adoption of the amendment.

RECESS

At 5:02 P.M., with Senator KUHN retaining the floor, on motion of Senator MOORE, the Senate receded from business not to exceed three minutes.

At 5:04 P.M., the Senate resumed.

With Senator KUHN retaining the floor, Senator COURSON asked unanimous consent to make a motion to take up H. 3530 for immediate consideration.

There was no objection.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE WITH AMENDMENTS

H. 3530 (Word version) -- Reps. Cato, Wilkins, Sandifer, Young, Cotty, Edge and Owens: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 58-3-27 SO AS TO PROHIBIT MEMBERSHIP ON AND RESTRICT EMPLOYMENT BY THE PUBLIC SERVICE COMMISSION OF A PERSON ASSOCIATED WITH A REGULATED BUSINESS; BY ADDING SECTION 58-3-35 SO AS TO PROVIDE FOR ETHICS STANDARDS AND REQUIREMENTS FOR PUBLIC SERVICE COMMISSIONERS; BY ADDING SECTION 58-3-65 SO AS TO ESTABLISH AN ADVISORY STAFF AND AN ADVOCACY STAFF FOR THE COMMISSION AND DESCRIBE THEIR RESPONSIBILITIES; AND BY ADDING SECTION 58-3-400 SO AS TO PROHIBIT EX PARTE COMMUNICATIONS WITH AND BY A COMMISSIONER OR ADVISORY STAFF IN CONNECTION WITH A PENDING PROCEEDING; TO AMEND SECTION 58-3-20, AS AMENDED, RELATING TO ESTABLISHMENT OF THE PUBLIC SERVICE COMMISSION, SO AS TO PROVIDE FOR QUALIFICATIONS, SCREENING, AND TERMS OF MEMBERSHIP; TO AMEND SECTION 58-3-24, AS AMENDED, RELATING TO PERSONS INELIGIBLE TO SERVE ON THE PUBLIC SERVICE COMMISSION, SO AS TO ALLOW A MEMBER OF THE GENERAL ASSEMBLY TO SERVE FOUR YEARS AFTER HE HAS NOT FILED FOR REELECTION TO THE GENERAL ASSEMBLY; TO AMEND PART 6, CHAPTER 6, TITLE 37, RELATING TO THE DIVISION OF CONSUMER ADVOCACY OF THE DEPARTMENT OF CONSUMER AFFAIRS, SO AS TO DELETE ANY RESPONSIBILITIES OF THE DIVISION IN CONNECTION WITH THE PUBLIC SERVICE COMMISSION; TO AMEND SECTION 8-13-90, RELATING TO SEEKING OR OFFERING PLEDGES OF VOTES, SO AS TO PROHIBIT THE DIRECT OR INDIRECT SEEKING OF A PLEDGE OR COMMUNICATION ABOUT SCREENING UNTIL CANDIDATES FOR THE OFFICE ARE DETERMINED; AND TO REPEAL SECTION 58-3-60 RELATING TO EMPLOYMENT OF STAFF FOR THE PUBLIC SERVICE COMMISSION.

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

Amendment No. 2

Senator MOORE proposed the following Amendment No. 2 (SWB\ 5600CM03), which was adopted:

Amend the bill, as and if amended, by striking SECTIONS 1 through 11 in their entirety.

Amend the bill further, by adding the following appropriately numbered SECTIONS:

/SECTION   __.   Section 58-27-865 of the 1976 Code, as last amended by Act 348 of 1996, is further amended to read:

"Section 58-27-865.   (A)   The words 'fuel cost' as used in this section shall include the cost of fuel, fuel costs related to purchased power, and the cost of SO2 emission allowances as used and shall be reduced by the net proceeds of any sales of SO2 emission allowances by the utility.

(B)   In order to clarify the intent of this statue, 'fuel costs related to purchased power', as used in Section (A) shall include:

(1)   costs of firm generation capacity purchases, which are defined as purchases made to cure a capacity deficiency or to maintain adequate reserve levels. 'Costs of firm generation capacity purchases' shall include either:

(a)   the actual cost of fuel for energy delivered under firm generation capacity purchases, if identifiable by the seller; otherwise,

(b)   the total delivered costs of firm generation capacity purchased excluding only generation capacity reservation charges and generation capacity option charges.

(2)   the total delivered cost of economy purchases of electric power, including without limitation, transmission charges. 'Economy purchases' are defined as purchases made to displace higher cost generation, at a price which is less than the purchasing utility's avoided variable costs for the generation of an equivalent quantity of electric power.

(C)   The commission shall direct each electrical utility which incurs fuel cost for the sale of electricity to submit to the commission, within such time and in such form as the commission may designate, its estimates of fuel costs for the next twelve months. The commission may hold a public hearing at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel cost should be granted. Upon investigation of the estimate and conducting public hearings in accordance with law, the commission shall direct each company to place in effect in its base rate an amount designed to recover, during the succeeding twelve months, the fuel costs determined by the commission to be appropriate for that period, adjusted for the over-recovery or under-recovery from the preceding twelve-month period. The commission shall direct the electrical utilities to send notice to the utility customers with the antecedent billing of the time and place of the public hearings to be held every twelve months, and the commission shall again direct the electrical utilities to send notice to the utility customers with the next billing if the utility is granted a rate increase by the commission.

(C)(D)   The commission shall direct the electrical utilities to account monthly for the differences between the recovery of fuel costs through base rates and the actual fuel costs experienced, by booking the difference to unbilled revenues with a corresponding deferred debit or credit, the balance of which will be included in the projected fuel cost component of the base rates for the succeeding period. The commission shall direct the electrical utilities to submit monthly reports of fuel costs and monthly reports of all scheduled and unscheduled outages of generating units with a capacity of one hundred megawatts or greater.

(D)(E)   Upon request by the commission staff, the electrical utilities, or the Consumer Advocate, a public hearing must be held by the commission at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel costs should be granted. If the request is by an electrical utility for a rate increase, the commission shall direct the utility to send notice of the request and hearing to all customers with the next billing, and if the commission grants the rate request subsequent to the request and hearing, the commission shall direct the utility to send notice of the amount of the increase or decrease to all customers with the next billing.

(E)(F)   The commission may offset, to the extent considered appropriate, the cost of fuel recovered through sales of power pursuant to interconnection agreements with neighboring electrical utilities against fuel costs to be recovered.

(F)(G)   The commission shall disallow recovery of any fuel costs that it finds without just cause to be the result of failure of the utility to make every reasonable effort to minimize fuel costs or any decision of the utility resulting in unreasonable fuel costs, giving due regard to reliability of service, economical generation mix, generating experience of comparable facilities, and minimization of the total cost of providing service. There shall be a rebuttable presumption that an electrical utility made every reasonable effort to minimize cost associated with the operation of its nuclear generation facility or system, as applicable, if the utility achieved a net capacity factor of ninety-two and one-half percent or higher during the period under review. The calculation of the net capacity factor shall exclude reasonable outage time associated with reasonable refueling, reasonable maintenance, reasonable repair, and reasonable equipment replacement outages; the reasonable reduced power generation experienced by nuclear units as they approach a refueling outage; the reasonable reduced power generation experienced by nuclear units associated with bringing a unit back to full power after an outage; Nuclear Regulatory Commission required testing outages unless due to the unreasonable acts of the utility; outages found by the commission not to be within the reasonable control of the utility; and acts of God. The calculation also shall exclude reasonable reduced power operations resulting from the demand for electricity being less than the full power output of the utility's nuclear generation system. If the net capacity factor is below ninety-two and one-half percent after reflecting the above specified outage time, then the utility shall have the burden of demonstrating the reasonableness of its nuclear operations during the period under review.

(G)(H)   The commission is authorized to promulgate, in accordance with the provisions of this section, all regulations necessary to allow the recovery by electrical utilities of all their prudently incurred fuel costs as precisely and promptly as possible, in a manner that tends to assure public confidence and minimize abrupt changes in charges to consumers.

SECTION   __.   A.   Section 58-9-2200(6) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"(6)   'Service address' means the location of the telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a retail customer. If this location is not a defined location, as in the case of mobile phones, paging systems, maritime systems, and the like, 'service address' means the location of the retail customer's primary use of the telecommunications equipment or the billing address as provided by the customer gives to the service provider, provided that the billing address is within the licensed service area of the service provider. A sale of postpaid calling services is sourced to the origination point of the telecommunications signal as first identified by either (i) the seller's telecommunications system; or (ii) information received by the seller from its service provider, if the system used to transport such signals is not that of the seller."

B.   Section 58-9-2200 of the 1976 Code, as added by Act 112 of 1999, is amended by adding an appropriately numbered item at the end to read:

"( )   'Postpaid calling service' means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number that is not associated with the origination or termination of the telecommunications service."

C.   Section 58-9-2220(2) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"(2)(a)   The maximum business license tax that may be levied by a municipality on the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality for a business license tax year beginning after 2003 is one and one-quarter of one percent. is the lesser of seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services or the maximum business license tax rate as calculated by the Board of Economic Advisors pursuant to subsection (b). For a business in operation for less than one year, the amount of business license tax authorized by this section must be computed based on a twelve-month projected income.

(b)   The Board of Economic Advisors from the appropriate municipal records shall determine actual total municipal revenues from business license taxes, franchise fees, and other fees contractually imposed on the sale of telecommunications services and received from telecommunications companies in 1998, and actual total revenues received by municipalities in 1999, 2000, 2001, 2002, and 2003 from such taxes and fees imposed on the gross income derived from the sale of retail telecommunications services. The board shall determine an annual average growth rate applicable to such revenues by averaging the annual growth rates applicable to these revenues for 1999-2000, 2000-2001, 2001-2002, and 2002-2003 and shall apply that average growth rate to the 1998 actual revenues compounded annually to derive an estimated 2004 total revenue. The tax rate to be calculated by the board is the fraction produced by dividing the 2004 estimated revenue as determined above by gross income in 2003 derived from the sale of retail telecommunications services in municipalities in this State.

(c) If the maximum business license tax rate that may be levied by a municipality on retail telecommunications services, as determined by the Board of Economic Advisors, is calculated or determined to exceed seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services a joint telecommunications study committee shall review the maximum business license tax calculation, as determined by the Board of Economic Advisors, and verify the maximum business license tax calculation. Upon verification of the maximum business license tax calculation, the joint telecommunications study committee must sponsor a joint resolution to allow a municipality to levy the maximum business license tax rate greater than seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunications services.

(d)   The joint telecommunications study committee shall consist of six members of the General Assembly: three Senators appointed by the President Pro Tempore of the Senate and three Representatives appointed by the Speaker of the House. The joint telecommunications study committee shall utilize the staff and resources of the Labor, Commerce and Industry Committee of the House of Representatives and the Judiciary Committee of the Senate. The joint telecommunications study committee is authorized to verify the maximum business license tax rate determined by the Board of Economic Advisors."

D.   Section 58-9-2230 of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"Section 58-9-2230.   (A)   A municipality must shall manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose a fair and reasonable franchise or consent fee on a telecommunications company for use of the public streets and public property to provide telecommunications service unless the telecommunications company has an existing contractual, constitutional, statutory, or other right to construct or operate in the public streets and public property including, but not limited to, consent previously granted by a municipality. Any such A fair and reasonable franchise or consent fee which may be imposed upon a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I--1--1,000--$ 100.00

Tier II--1,001--3,000--$ 200.00

Tier III--3,001--5,000--$ 300.00

Tier IV--5,001--10,000--$ 500.00

Tier V--10,001--25,000--$ 750.00

Tier VI--Over 25,000--$1,000.00

This franchise or consent fee is in lieu of any permit fee, encroachment fee, degradation fee, or other fee assessed on a telecommunications provider for its occupation of or work within the public right-of-way.

(B)   A municipality must shall manage its public rights-of-way on a competitively neutral and nondiscriminatory basis and may impose an administrative fee upon a telecommunications company which that is not subject to subsection (A) in this section and that constructs or installs or has previously constructed or installed facilities in the public streets and public property to provide telecommunications service. Any such The fee which may be imposed on a telecommunications company shall not exceed the annual sum as set forth in the following schedule based on population:

Tier I--   1--1,000--$ 100.00

Tier II--1,001--3,000--$ 200.00

Tier III--3,001--5,000--$ 300.00

Tier IV--5,001--10,000--$ 500.00

Tier V--10,001--25,000--$ 750.00

Tier VI--Over 25,000--$1,000.00

This administrative fee is in lieu of any permit fee, encroachment fee, degradation fee, or other fee assessed on a telecommunications provider for its occupation of or work within the public right-of-way.

(C)   No A municipality shall not levy any tax, license, fee, or other assessment on, with respect to, or measured by the receipts from any a telecommunications service, other than (a) (1) the business license tax authorized by this article, and (b) (2) franchise fees as defined and regulated under 47 U.S.C. Section 542; provided, however, that nothing herein shall in this subsection restrict restricts the right of any a municipality to impose ad valorem taxes, service fees, sales taxes, or other taxes and fees lawfully imposed on other businesses within the municipalities. This subsection does not prohibit a municipality from assessing upon a telecommunications company fees of general applicability such as sanitation fees, building permit fees, and zoning permit fees that are not related to the telecommunications company's occupation of or work within the public right-of-way.

(D)   A telecommunications company, including a mobile telecommunications company providing mobile telecommunications services, shall not be deemed is not considered to be using public streets or public property unless it has constructed or installed physical facilities in public streets or on public property,. provided that the The use of public streets or public property under lease, site license, or other similar contractual arrangement between a municipality and a telecommunications company shall does not constitute the use of public streets or public property under for purposes of this article. Without limiting the generality of the foregoing, a telecommunications company shall not be deemed is not considered to be using public streets or public property under for purposes of this article solely because of its use of airwaves within a municipality. Should any If a telecommunications company, including a telecommunications company providing mobile telecommunications services, request requests of a municipality permission to construct or install physical facilities in public streets or on public property, such that request shall must be considered by such the municipality in a manner that is competitively neutral and nondiscriminatory as amongst among all telecommunications companies." /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

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

The Senate resumed consideration of Amendment No. 6 to S. 560.

PRESIDENT PRESIDES

At 5:31 P.M., the PRESIDENT assumed the Chair.

Senator KUHN resumed arguing contra to the adoption of Amendment No. 6.

With Senator KUHN retaining the floor, Senator McCONNELL asked unanimous consent to take up H. 4358 for immediate consideration.

There was no objection.

AMENDED, ADOPTION OF RESOLUTION FAILED

H. 4358 (Word version) -- Reps. Wilkins, J. Brown, Cato, Chellis, Govan, Harrell, Harrison, J.E. Smith, W.D. Smith, Townsend and Witherspoon: A CONCURRENT RESOLUTION TO PROVIDE THAT PURSUANT TO ARTICLE III, SECTION 21 OF THE CONSTITUTION OF THIS STATE AND SECTION 2-1-180 OF THE 1976 CODE WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 5, 2003, NOT LATER THAN 5:00 P.M., EACH HOUSE SHALL STAND ADJOURNED TO MEET ON TUESDAY, JUNE 17, 2003 AT 12:00 P.M., IN STATEWIDE SESSION, AND TO CONTINUE IN STATEWIDE SESSION, IF NECESSARY, UNTIL WEDNESDAY, JUNE 18, 2003, NOT LATER THAN 5:00 P.M., FOR THE CONSIDERATION OF SPECIFIED MATTERS; AND TO PROVIDE THAT WHEN EACH HOUSE ADJOURNS NOT LATER THAN 5:00 P.M., ON WEDNESDAY, JUNE 18, 2003, THE GENERAL ASSEMBLY SHALL STAND ADJOURNED SINE DIE.

The Senate proceeded to a consideration of the Concurrent Resolution, the question being the adoption of the Resolution.

Amendment No. 1

Senators McCONNELL and MOORE proposed the following amendment (DKA\3655DW03), which was adopted:

Amend the concurrent resolution, as and if amended, Section (A), page 2, by deleting item (9) in its entirety and inserting:

/ (9)   receipt and consideration of any resolution setting a Public Service Commission election and scheduling and conducting a joint assembly in the Hall of the House of Representatives for the purpose of holding this election. /

Amend further by deleting Section (C), page 2 and inserting:

/   (C)(1)   The Senate and the House of Representatives shall meet in joint assembly in the Hall of the House of Representatives on Tuesday, June 17, 2003, at 1:00 p.m. to elect a successor to the Honorable Donald W. Beatty, Judge of the Circuit Court for the Seventh Judicial Circuit, Seat 2, whose term expires June 30, 2006.

(2)   All nominations must be made by the Chairman of the Judicial Merit Selection Commission and no further nominating or seconding speeches may be made by members of the General Assembly on behalf of any candidate.

(D)   When each house adjourns not later than 5:00 p.m. on Wednesday, June 18, 2003, the General Assembly shall stand adjourned Sine Die. /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

RECESS

At 5:44 P.M., with Senator McCONNELL retaining the floor, on motion of Senator MOORE, with unanimous consent, the Senate receded from business not to exceed two minutes.

At 6:25 P.M., the Senate resumed.

Senator McCONNELL continued explaining the amendment.

The amendment was adopted.

The question then was the adoption of the Concurrent Resolution, as amended:

Parliamentary Inquiry

Senator HUTTO made a Parliamentary Inquiry as to whether or not a two-thirds vote was required to adopt the Concurrent Resolution.

The PRESIDENT stated that a two-thirds vote of those present and voting would be required to adopt the Concurrent Resolution.

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

Ayes 25; Nays 21

AYES

Alexander                 Branton                   Courson
Cromer *                  Fair                      Giese
Gregory                   Grooms *                  Hawkins
Hayes                     Knotts                    Kuhn
Leatherman                Martin                    McConnell
Mescher                   Peeler                    Ravenel
Richardson                Ritchie                   Ryberg
Smith, J. Verne           Thomas                    Verdin
Waldrep

Total--25

NAYS

Anderson                  Drummond                  Elliott
Ford                      Glover                    Holland
Hutto                     Jackson                   Land *
Leventis                  Malloy                    Matthews
McGill                    Moore                     O'Dell
Patterson                 Pinckney                  Rankin
Reese                     Setzler                   Short

Total--21

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

Having failed to receive the necessary vote, the Concurrent Resolution, as amended, was not adopted.

MOTION ADOPTED

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed that, when it adjourns today, it stand adjourned to meet at 10:00 A.M. tomorrow.

OBJECTION

S. 407 (Word version) -- Senators Richardson, Hutto and Moore: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 61-6-1640 SO AS TO PROVIDE AN ESTABLISHMENT LICENSED TO SERVE MINIBOTTLES IS AUTHORIZED TO CONDUCT SAMPLINGS OF WINES IN EXCESS OF SIXTEEN PERCENT ALCOHOL, CORDIALS, AND DISTILLED SPIRITS, IF THE SAMPLING IS CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.

Senator RICHARDSON asked unanimous consent to take up S. 407 for immediate consideration.

Senator RAVENEL objected.

OBJECTION

S. 317 (Word version) -- Senators Elliott, Rankin, Short, Reese and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 TO CHAPTER 6, TITLE 44 SO AS TO CREATE THE INTERSTATE BULK PRESCRIPTION DRUG PROGRAM WITH NEIGHBORING STATES TO PROVIDE PRESCRIPTION DRUGS AT A REDUCED COST TO SENIOR AND DISABLED RESIDENTS WHO DO NOT HAVE PRESCRIPTION DRUG COVERAGE.

Senator KNOTTS asked unanimous consent to take up S. 317 for immediate consideration.

Senator J. VERNE SMITH objected.

The Senate resumed consideration of Amendment No. 6 to S. 560.

Senator KUHN resumed arguing contra to the adoption of the amendment.

Motion Adopted

With Senator KUHN retaining the floor, Senator McCONNELL asked unanimous consent to proceed to a Call of the Uncontested Calendar.

There was no objection.

Motion Adopted

Senator RYBERG asked unanimous consent to make a motion that, after a Call of the Uncontested Calendar had been completed, the Senate would stand adjourned.
There was no objection.

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

ORDERED ENROLLED FOR RATIFICATION

The following Bills and Joint Resolution were read the third time and, having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:

H. 3641 (Word version) -- Rep. J.R. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 34-43-60 SO AS TO PROVIDE THAT THE PROVISIONS OF THE SOUTH CAROLINA COMMUNITY ECONOMIC DEVELOPMENT ACT MUST TERMINATE AFTER THE FIFTH YEAR OF GRANTS AND LOANS ARE RECEIVED AND AT LEAST FIVE MILLION DOLLARS IN TAX CREDITS ARE USED; AND TO REPEAL SECTION 4 OF ACT 314 OF 2000, RELATING TO SUNSET PROVISIONS FOR THE ACT.

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

There was no objection.

H. 3941 (Word version) -- Reps. Bowers, Lloyd and R. Brown: A JOINT RESOLUTION TO POSTPONE UNTIL PROPERTY TAX YEARS BEGINNING AFTER 2003 THE IMPLEMENTATION OF THE REVISED VALUES DETERMINED IN THE COUNTYWIDE APPRAISAL AND EQUALIZATION PROGRAM CONDUCTED IN COLLETON COUNTY IN 2001.

By prior motion of Senator MATTHEWS

H. 3254 (Word version) -- Reps. G.M. Smith, Weeks and Coates: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF SUMTER COUNTY SCHOOL DISTRICTS 2 AND 17 MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE SCHOOL DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

By prior motion of Senator LEVENTIS, with unanimous consent

H. 3470 (Word version) -- Rep. Frye: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF SALUDA SCHOOL DISTRICT ONE MUST BE SET BY THE BOARD OF TRUSTEES OF THE DISTRICT IN ITS SOLE DISCRETION, PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

By prior motion of Senator CROMER, with unanimous consent

H. 4280 (Word version) -- Reps. Edge and Clemmons: A BILL TO AMEND SECTION 7-7-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN HORRY COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN HORRY COUNTY AND REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD.

By prior motion of Senator ELLIOTT, with unanimous consent

H. 4285 (Word version) -- Reps. Battle and M. Hines: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF THE SCHOOL DISTRICTS OF MARION COUNTY MUST BE SET BY THE COUNTY SCHOOL BOARD IN ITS SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

By prior motion of Senator GLOVER, with unanimous consent

HOUSE BILL RETURNED

The following House Bill was read the third time and ordered returned to the House with amendments:

H. 3199 (Word version) -- Reps. J.E. Smith, Harrison, Cobb-Hunter, Altman, Bailey, Richardson and Cotty: A BILL TO AMEND SECTION 20-7-510, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS REQUIRED TO REPORT CHILD ABUSE AND NEGLECT, SO AS TO INCLUDE A MEMBER OF THE CLERGY; AND TO AMEND SECTION 20-7-550, AS AMENDED, RELATING TO PRIVILEGED COMMUNICATIONS WHICH APPLY AND DO NOT APPLY WITH REGARD TO REPORTING CHILD ABUSE OR NEGLECT, SO AS TO REQUIRE A PRIEST TO REPORT EXCEPT IF THE COMMUNICATION IS PROTECTED BY THE STATUTORILY PRESCRIBED PRIEST-PENITENT PRIVILEGE IN SECTION 19-11-90.

H. 4269 (Word version) -- Reps. Cobb-Hunter, Ott and Rhoad: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF ORANGEBURG COUNTY CONSOLIDATED SCHOOL DISTRICTS THREE, FOUR, AND FIVE MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

By prior motion of Senator HUTTO, with unanimous consent

H. 4269 -- Third Reading Reconsidered

Having voted on the prevailing side, Senator HUTTO asked unanimous consent to make a motion to reconsider the vote whereby the Bill was given third reading.

There was no objection.

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

There was no objection.

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

Senator HUTTO proposed the following amendment (4269R002.CBH), which was adopted:

Amend the bill, as and if amended, by striking SECTION 1 and inserting the following:

/   SECTION   1.   Notwithstanding the provisions of Section 59-5-71 of the 1976 Code, or any regulation or action of the State Board of Education to the contrary, beginning with school year 2003-2004, the starting date and ending date for the annual school term of Allendale County School District, Bamberg County School Districts One and Two, Barnwell County School Districts Nineteen, Twenty-Nine, and Forty-Five, Calhoun County School District, Hampton County School Districts One and Two, and Orangeburg County Consolidated School Districts Three, Four, and Five must be set by the board of trustees of each respective district in their sole discretion provided that the annual school term must comply with all requirements of Section 59-1-420 relating to length of the school term.                 /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

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

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3909 (Word version) -- Reps. Lucas and Cotty: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 4 TO CHAPTER 19, TITLE 56 SO AS TO PROVIDE A UNIFORM PROCEDURE TO RETIRE THE TITLE CERTIFICATE TO CERTAIN MANUFACTURED HOMES AFFIXED TO REAL PROPERTY AND TO PROVIDE FOR THE CREATION OF A PROCEDURE BY WHICH A MANUFACTURED HOME AFFIXED TO REAL PROPERTY MAY BE SUBJECT TO A MORTGAGE ON THE REAL PROPERTY TO WHICH THE MANUFACTURED HOME IS AFFIXED.

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

There was no objection.

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

Senator KNOTTS proposed the following amendment (SWB\5584CM03), which was adopted:

Amend the bill, as and if amended, Section 56-10-270(A) as contained in SECTION 3 by striking Section 56-10-270(A) and inserting:

/"Section 56-10-270.   (A)   Any person knowingly operating an uninsured motor vehicle subject to registration in this State or any person knowingly allowing the operation of an uninsured motor vehicle subject to registration in this State is guilty of a misdemeanor and, upon conviction, must: for a first offense, be fined not less than one hundred dollars nor more than two hundred dollars or imprisoned for thirty days; for a second offense, be fined two hundred dollars or imprisoned for thirty days, or both; and for a third or subsequent offense must be imprisoned for not less than forty-five days nor more than six months. Only convictions which occurred within five years including and immediately preceding the date of the last conviction constitute prior convictions within the meaning of this section. An uninsured motor vehicle includes an insured vehicle with respect to which the operator has been excluded for coverage pursuant to the provisions of Section 38-77-340. /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time and ordered returned to the House with amendments.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3257 (Word version) -- Reps. Lourie, J.E. Smith, J. Brown, Bales, Cotty, Scott, Howard, J.H. Neal and Rutherford: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF RICHLAND COUNTY SCHOOL DISTRICT ONE AND RICHLAND COUNTY SCHOOL DISTRICT TWO MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

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

There was no objection.

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

Senator HAYES proposed the following amendment (SWB\5572CM03), which was adopted:

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

/SECTION   __.   Notwithstanding the provisions of Section 59-5-71 of the 1976 Code, or any regulation or action of the State Board of Education to the contrary, beginning with school year 2003-2004, the starting date and ending date for the annual school term of York County School Districts One through Four must be set by the board of trustees of each respective district in their sole discretion provided that the annual school term must comply with all requirements of Section 59-1-420 relating to length of the school term. /

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3926 (Word version) -- Reps. Limehouse, Howard, Sandifer, Koon, Harrell, Scarborough, J.E. Smith, Govan, Townsend, J.M. Neal, Cato, Rhoad, E.H. Pitts, Altman, Battle, Bingham, Bowers, Breeland, Chellis, Clark, Clemmons, Dantzler, Edge, Emory, Freeman, Gourdine, Hamilton, Harrison, Haskins, Herbkersman, J. Hines, Jennings, Leach, Littlejohn, Mahaffey, McLeod, Merrill, Miller, Moody-Lawrence, Owens, Parks, M.A. Pitts, Rice, Richardson, Rivers, Rutherford, Simrill, Skelton, D.C. Smith, J.R. Smith, W.D. Smith, Snow, Stewart, Talley, Toole, Tripp, Umphlett, Vaughn, Walker, Whitmire, Wilkins, Bales and Bailey: A BILL TO AMEND SECTION 59-149-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DURATION OF LIFE SCHOLARSHIPS, SO AS TO PROVIDE THAT A STUDENT RECEIVING A LIFE SCHOLARSHIP ON AND AFTER SEPTEMBER 11, 2001, WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVES AND WHO IS CALLED TO ACTIVE DUTY AFTER THIS DATE IN CONNECTION WITH THE CONFLICT IN IRAQ OR THE WAR ON TERRORISM SHALL HAVE ADDITIONAL SEMESTERS TO COMPLETE HIS ELIGIBILITY EQUAL TO THE SEMESTER HE WAS ACTIVATED PLUS ANY ADDITIONAL SEMESTERS OR PORTIONS OF SEMESTERS MISSED AS A RESULT OF THE ACTIVATION.

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

Senator RANKIN proposed the following amendment (3926R001.LAR), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:

/     SECTION _____.   The State shall agree to meet the obligations to beneficiaries if monies in the fund fail to offset the obligations of the South Carolina Tuition Prepayment Program. If there is not enough money in the fund to pay the tuition and required fees of the institution of higher education in which a beneficiary enrolls as provided by the tuition prepayment program contract, the General Assembly shall appropriate to the fund the amount necessary for the treasurer to pay the applicable amount of tuition and required fees of the institution. In the event that the General Assembly determines the program to be financially infeasible, the General Assembly may discontinue the program. Any qualified beneficiary who has been accepted by and is enrolled or is within five years of enrollment in an institution of higher learning or any in-state or out-of-state regionally accredited private four or two-year college or an out-of-state regionally accredited, state-supported, not-for-profit four or two-year college or university shall be entitled to exercise the complete benefits for which he has contracted. All other contract holders shall receive a refund pursuant to Section 59-4-65.   /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

The amendment was adopted.

Senator GREGORY proposed the following amendment (DKA\3642CM03), which was adopted:

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

/ SECTION   __.   Chapter 29, Title 59 of the 1976 Code is amended by adding:

"Section 59-29-165. All students attending a high school in this State that is sustained or in any manner supported by public funds must receive instruction in the area of personal finance. The State Department of Education will assist the school districts in identifying suitable materials for instruction." /

Renumber sections to conform.

Amend title to conform.

Senator GREGORY explained the amendment.

The amendment was adopted.

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

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3867 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 14-25-165, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DRAWING AND COMPOSING A JURY IN MUNICIPAL COURT, SO AS TO INCREASE THE SIZE OF THE POOL FROM WHICH JURORS ARE SELECTED, AND TO DELETE A PROVISION FOR DRAWING A JURY FOR A SINGLE TRIAL WHICH REQUIRES PEREMPTORY CHALLENGES IN ADVANCE OF THE TRIAL DATE; TO AMEND SECTIONS 22-2-80 AND 22-2-90, BOTH AS AMENDED, RELATING TO SELECTION OF A JURY IN MAGISTRATES COURT, SO AS TO INCREASE THE SIZE OF THE JURY POOL FROM WHICH A JURY IS SELECTED; TO AMEND SECTION 22-2-100, RELATING TO THE PROCEDURE FOR SELECTING PRIMARY AND ALTERNATE JURORS IN MAGISTRATES COURT, SO AS TO CHANGE LANGUAGE CONSISTENT WITH OTHER CHANGES MADE IN SECTION 14-25-165; AND TO AMEND SECTION 22-2-120, RELATING TO THE SELECTION OF ADDITIONAL JURORS IN MAGISTRATES COURT AT THE TIME OF TRIAL, SO AS TO DELETE ARCHAIC LANGUAGE.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the previously proposed amendment printed on May 29, 2003.

Senator PEELER asked unanimous consent to withdraw the previously proposed amendment of May 29, 2003.

There was no objection.

The amendment was withdrawn.

Senators McCONNELL and PEELER proposed the following amendment (JUD3867.003), which was adopted:

Amend the bill, as and if amended, page 5, after line 11, by adding an appropriately numbered SECTION to read:

/   SECTION ___.   Section 22-2-5 of the 1976 Code is further amended to read:

"Section 22-2-5.   (A)   The South Carolina Court Administration, in cooperation with the technical college system, shall select and administer an eligibility examination to test basic skills of persons seeking an initial appointment as magistrate on or after July 1, 2001. In determining the persons to be recommended to the Governor for initial appointments as magistrates on or after July 1, 2001, a senatorial delegation must use the results of these eligibility examinations to assist in its selection of nominees. No person is eligible to be appointed as a magistrate unless he receives a passing score on the eligibility examination. The results of these eligibility examinations are valid for six months before and six months after the time the appointment is to be made.

(B)   The court administration shall must establish guidelines for exempting persons from taking the examination if certain prescribed educational equivalency requirements have been met.

(C)   The court administration, in cooperation with the technical college system, shall must develop an optional examination preparatory course. The technical college system may assess a reasonable fee from each participant who takes the examination or the preparatory course in order to pay for administering the examination and course. The planning and development of the eligibility examination and optional examination preparatory course shall begin on or after July 1, 2000.

(D)   The provisions of this section must not be implemented until the eligibility test is offered at locations which are no more than fifty miles away from any applicant seeking an initial appointment as a magistrate."   /

Renumber sections to conform.

Amend title to conform.

Senator PEELER explained the amendment.

The amendment was adopted.

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

ACTING PRESIDENT PRESIDES

At 7:29 P.M., Senator MARTIN assumed the Chair.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3426 (Word version) -- Reps. Cobb-Hunter, Jennings, Bingham, Toole, Neilson, Clark and Bales: A BILL TO AMEND SECTIONS 1-31-10 AND 1-31-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEMBERSHIP, POWERS, AND DUTIES OF THE STATE COMMISSION FOR MINORITY AFFAIRS, SO AS TO ADD TWO STATEWIDE APPOINTEES TO THE COMMISSION, DELETE OBSOLETE LANGUAGE, AND INCLUDE AFRICAN AMERICANS, NATIVE AMERICAN INDIANS, HISPANICS/LATINOS, ASIANS, AND OTHERS WITHIN THE MINORITY COMMUNITY AND TO FURTHER PRESCRIBE CERTAIN POWERS AND DUTIES OF THE STATE COMMISSION FOR MINORITY AFFAIRS RELATING TO RECOGNITION OF NATIVE AMERICAN INDIAN ENTITIES, ESTABLISHING CERTAIN ADVISORY COMMITTEES, AND SEEKING FUNDING FOR IMPLEMENTING PROGRAMS AND SERVICES FOR AFRICAN AMERICANS, NATIVE AMERICAN INDIANS, HISPANICS/LATINOS, AND OTHER MINORITY GROUPS AND TO PROVIDE THAT THE ADDITIONAL DUTIES ASSIGNED TO THE COMMISSION ARE CONTINGENT UPON FUNDING.

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

Senators McCONNELL and MOORE proposed the following amendment (JUD3426.006), which was adopted:

Amend the bill, as and if amended, page 1, beginning with line 31, by striking all after the title and inserting therein the following:

  /   Part I

Study Committee on Budget and Control Board Organization

SECTION   1.   (A)   There is created a Study Committee on the organization of the Budget and Control Board to be composed of:

(1)   three Senators to be appointed by the President Pro Tempore of the Senate;

(2)   three members of the House of Representatives to be appointed by the Speaker of the House of Representatives; and

(3)   three persons to be appointed by the Governor.

(B)   The study committee shall make a study of the offices, divisions, programs, and components administered by the Budget and Control Board to consider if any office, division, program, or component is better suited for inclusion in a department of the executive branch of government.

(C)   The members of the study committee shall not receive compensation, but are entitled to receive mileage, per diem, and subsistence.

(D)   The study committee must be appointed no later than July 1, 2003, and shall submit a report containing its findings and recommendations to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives no later than December 31, 2003. Upon submission of the report, the study committee is abolished.

(E)   The study committee must be staffed by personnel as provided and assigned by the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the State Budget and Control Board.

  Part II

Commission for Minority Affairs

SECTION   2.   The General Assembly finds that:

(1)   The Commission for Minority Affairs was established in 1993 with powers and duties to aid the minority community.

(2)   The minority population of South Carolina continues to grow and becomes more diverse such that the needs of other minority groups, who too are experiencing poverty and deprivation at disproportionate rates compared to the majority population.

(3)   These groups, Hispanics/Latinos, Native American Indians, Asians, and other minority groups seek government services and assistance that culturally and linguistically are appropriate.

(4)   Minority populations have as a part of their community local groups which seek the assistance of governmental entities, such as the commission.

(5)   These local groups throughout the State are initiating programs to relieve the socio-economic deprivation of African Americans and other minority groups in their communities.

(6)   These community-based groups have requested the assistance of the commission's staff and have indicated that they would benefit greatly from clear state-based leadership.

SECTION   3.   Section 1-31-10 of the 1976 Code is amended to read:

"Section 1-31-10.   There is created a State Commission for Minority Affairs consisting of seven nine members and the Governor ex officio. The Governor shall must appoint one person from each of the six congressional districts of the State and one person three persons from the State at-large upon the advice and consent of the Senate. The Governor shall designate the chairman. The members serve for a term of four years and until their successors are appointed and qualify. Of the members first appointed, those appointed from the even-numbered congressional districts serve for a term of two years; those appointed from the odd-numbered congressional districts and the member appointed at-large serve for a term of four years. A vacancy must be filled in the same manner as original appointment for the remainder of the unexpired term. A majority of the members of the commission must be African American."

SECTION   4.   Section 1-31-40 is amended to read:

"Section 1-31-40.   (A)   The commission shall:

(1)   provide the minority community consisting of African Americans, Native American Indians, Hispanics/Latinos, Asians, and others with a single point of contact for statistical and technical assistance in the areas of research and planning for a greater economic future;

(2)   work with minority officials on the state, county, and local levels of government in disseminating statistical data and its impact on their constituencies;

(3)   provide for publication of a statewide statistical abstract on minority affairs;

(4)   provide statistical analyses for members of the General Assembly on the state of minority communities as the State experiences economic growth and changes;

(5)   provide the minority community with assistance and information on Voting Rights Act submissions in the State, as well as other related areas of concern to the minority community.;

(6)   determine, approve, and acknowledge by certification state recognition for Native American Indian entities; however, notwithstanding their state certification, the tribes have no power or authority to take any action which would establish, advance, or promote any form of gambling in this State;

(7)   establish advisory committees representative of minority groups, as the commission considers appropriate to advise the commission;

(8)   act as liaison with the business community to provide programs and opportunities to fulfill its duties under this chapter;

(9)   seek federal and other funding on behalf of the State of South Carolina for the express purpose of implementing various programs and services for African Americans, Native American Indians, Hispanics/Latinos, Asians, and other minority groups;

(10)   promulgate regulations as may be necessary to carry out the provisions of this article including, but not limited to, regulations regarding State Recognition of Native American Indian entities in the State of South Carolina; and

(7)(11)   perform other duties necessary to implement programs.

(B)   The commission may delegate these powers and duties as necessary.

(C)   Nothing in this chapter recognizes, creates, extends, or forms the basis of any right or claim of interest in land or real estate in this State for any Native American tribe which is recognized by the State."

SECTION   5.   Of the two members added to the Commission for Minority Affairs by the amendment to Section 1-31-10, as amended by this act, one must be appointed for an initial term of two years, which must be noted on the appointment, and until his successor is appointed and qualifies. Thereafter, the members shall serve for the term provided by law.

  Part III

Severability Clause

SECTION   6.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

  Part IV

Time Effective

SECTION   7.   This act takes effect upon approval by the Governor, except that the additional duties given to the Commission for Minority Affairs by the amendments to Section 1-31-40 as contained in this act do not apply unless sufficient additional funds, as determined by the commission, are appropriated or otherwise made available to the commission to implement these additional duties.     /

Renumber sections to conform.

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

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

ACTING PRESIDENT PRESIDES

At 7:42 P.M., Senator RICHARDSON assumed the Chair.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3777 (Word version) -- Reps. Scott, Harrison, Simrill, J.E. Smith, J.H. Neal, Bales, Cotty, Govan, McLeod, Parks, Hosey, Duncan, Rutherford, Taylor, Whipper, Allen, Altman, Anthony, Bailey, Barfield, Battle, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Dantzler, Davenport, Delleney, Edge, Emory, Freeman, Gilham, Gourdine, Hagood, Hamilton, Harrell, Harvin, Haskins, Hayes, Herbkersman, J. Hines, Hinson, Howard, Huggins, Jennings, Kennedy, Kirsh, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Mack, Mahaffey, Martin, McGee, Merrill, Miller, Moody-Lawrence, J.M. Neal, Neilson, Ott, Owens, Perry, E.H. Pitts, Quinn, Rhoad, Rice, Sheheen, Richardson, Skelton, Rivers, Scarborough, Sinclair, D.C. Smith, F.N. Smith, J.R. Smith, W.D. Smith, Snow, Stewart, Stille, Talley, Thompson, Toole, Townsend, Tripp, Umphlett, Vaughn, Walker, Weeks, Wilkins and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 7-13-1655 SO AS TO PROVIDE THAT THE STATE ELECTION COMMISSION SHALL ADOPT ONE VOTING SYSTEM TO BE USED TO CONDUCT ELECTIONS IN THIS STATE AND DEFINE "VOTING SYSTEM"; TO AMEND SECTION 7-13-1320, RELATING TO THE PROCUREMENT AND USE OF VOTE RECORDERS, SO AS TO RESTRICT THEIR USAGE ONLY IN ABSENTEE VOTING; TO AMEND SECTIONS 7-13-1330 AND 7-13-1620, BOTH AS AMENDED, RELATING TO THE VOTING MACHINE APPROVAL PROCESS, SO AS TO DELETE REFERENCES TO A MACHINE BEING APPROVED BY AN INDEPENDENT TESTING AUTHORITY; AND TO REPEAL SECTION 7-13-1310 RELATING TO THE USE OF VOTE RECORDERS, SECTION 7-13-1650 RELATING TO EXPERIMENTAL USE OF VOTING MACHINES, AND 7-13-1660 RELATING TO THE ACQUISITION AND USE OF APPROVED VOTING MACHINES BY A COUNTY OR MUNICIPALITY.

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

Senators McCONNELL, MOORE and ALEXANDER proposed the following amendment (JUD3777.050), which was adopted:

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

/   SECTION   1.   Section 2-17-20(A) of the 1976 Code is amended to read:

"(A)   Any person who acts as a lobbyist shall must, within fifteen days of being employed, appointed, or retained as a lobbyist, register with the State Ethics Commission as provided in this section. Each person registering shall must pay a fee of fifty one hundred dollars and present to the State Ethics Commission a communication reflecting the authority of the registrant to represent the person by whom he is employed, appointed, or retained. If a partnership, committee, association, corporation, labor organization, or any other organization or group of persons registers as a lobbyist, then it must identify each person who will act as a lobbyist on its behalf during the covered period. There is no registration fee for a lobbyist who is a full-time employee of a state agency and limits his lobbying to efforts on behalf of that particular state agency."

SECTION   2.   Section 2-17-20(C) of the 1976 Code is amended to read:

"(C)   Each lobbyist who ceases to engage in lobbying requiring him to register under pursuant to the provisions of this section must shall file a written statement with the State Ethics Commission acknowledging the termination of lobbying. The written statement of termination is effective immediately, except that the provisions of Sections 2-17-80(A)(5), 2-17-80(B)(5), 2-17-110(C), and 2-17-110(F) continue in force and effect for the remainder of the calendar year in which the lobbyist was registered, regardless of the date of the termination statement filed with the State Ethics Commission. Each lobbyist who files a written statement of termination under pursuant to the provisions of this section must file reports required by this chapter for any reporting period during which he the lobbyist was registered under pursuant to the provisions of this section."

SECTION   3.   Section 2-17-25(A) of the 1976 Code is amended to read:

"(A)   Any lobbyist's principal shall must, within fifteen days of employing, appointing, or retaining a lobbyist, register with the State Ethics Commission as provided in this section. Each person registering shall must pay a fee of fifty one hundred dollars. If a partnership, committee, an association, a corporation, labor organization, or any other organization or group of persons registers as a lobbyist's principal, then it must identify each person who will act as a lobbyist on its behalf during the covered period. If the State is a lobbyist's principal, the State is exempt from paying a registration fee and filing a lobbyist's principal registration statement."

SECTION   4.   Section 2-17-25(C) of the 1976 Code is amended to read:

"(C)   Each lobbyist's principal who ceases to authorize lobbying requiring him to register under pursuant to this section must file a written statement with the State Ethics Commission acknowledging the termination of lobbying. The written statement of termination is effective immediately, except that the provisions of Sections 2-17-80(A)(5), 2-17-80(B)(5), 2-17-110(C), and 2-17-110(F) continue in force and effect for the remainder of the calendar year in which the lobbyist's principal was registered, regardless of the date of the termination statement filed with the State Ethics Commission. Each lobbyist's principal who files a written statement of termination under pursuant to this section must shall file reports required by this chapter for any reporting period during which he the lobbyist's principal was registered under pursuant to this section."

SECTION   5.   The first paragraph of Section 2-17-30(A) of the 1976 Code is amended to read:

"Each lobbyist, no later than April tenth June thirtieth and October tenth January thirty-first of each year, must file a report with the State Ethics Commission covering that lobbyist's lobbying during that filing period. The filing periods shall be are from January first to March May thirty-first for the April tenth June thirtieth report, and shall be are from April June first to September thirtieth December thirty-first for the October tenth January thirty-first report. Any lobbying activity not reflected on the October tenth June thirtieth report and not reported on a statement of termination pursuant to Section 2-17-20(C) must be reported no later than December thirty-first of that January thirty-first of the succeeding year. Each report must be in a form prescribed by the State Ethics Commission and be limited to and contain:"

SECTION   6.   The first paragraph of Section 2-17-35(A) of the 1976 Code is amended to read:

"Except as otherwise provided by Section 2-17-90(E), each lobbyist's principal, no later than April tenth June thirtieth and October tenth January thirty-first of each year, must file a report with the State Ethics Commission covering that lobbyist's principal's expenditures attributable to lobbying during that filing period. The filing periods shall be are from January first to March May thirty-first for the April tenth June thirtieth report, and shall be are from April June first to September thirtieth December thirty-first for the October tenth January thirty-first report. Any lobbying activity not reflected on the October tenth June thirtieth report and not reported on a statement of termination pursuant to Section 2-17-25(C) must be reported no later than December thirty-first of that January thirty-first of the succeeding year. Each report must be in a form prescribed by the State Ethics Commission and be limited to and contain:"

SECTION   7.   The first paragraph of Section 2-17-40(A) of the 1976 Code is amended to read:

"Each state agency or department shall must, no later than April first June thirtieth and October first January thirty-first of each year, file a report with the State Ethics Commission covering that agency's lobbying during that filing period. The filing periods are from January first to May thirty-first for the June thirtieth report, and are from June first to December thirty-first for the January thirty-first report. Any lobbying activity not reflected on the June thirtieth report and not reported on a statement of termination pursuant to Section 2-17-25(C) must be reported no later than January thirty-first of the succeeding year. Each report must be in a form prescribed by the State Ethics Commission and be limited to and contain:"

SECTION   8.   Section 2-17-90(A)(1) of the 1976 Code is amended to read:

"(1)   as to members of the General Assembly, a function to which a member of the General Assembly is invited if the entire membership of the House, the Senate, or the General Assembly is invited, or one of the committees, subcommittees, joint committees, legislative caucuses or their committees or subcommittees, or county legislative delegations of the General Assembly of which the legislator is a member is invited. However, the Speaker of the House and Speaker Pro Tempore of the House may be included in an invitation to one of the above groups. In addition, invitations may be extended and accepted when the invitation is extended to all members in attendance at (a) national and regional conventions and conferences of organizations for which the General Assembly pays annual dues as a membership requirement and (b) American Legislative Exchange Council conventions and conferences;"

SECTION   9.   Section 2-17-90(A) of the 1976 Code is amended by adding:

"(7)   as to cabinet officers, a function to which all cabinet officers are invited."

SECTION   10.   Section 2-17-90(B) of the 1976 Code is amended to read:

"(B)(1)     No lobbyist's principal or person acting on behalf of a lobbyist's principal may provide to a public official or a public employee pursuant to subsections (A)(1), (A)(2), (A)(3), (A)(4), or (A)(5), or (A)(7) the value of lodging, transportation, entertainment, food, meals, or beverages exceeding twenty-five fifty dollars in a day and two four hundred dollars in a calendar year per public official, or public employee, or cabinet officer.

(2)   The daily dollar limitation in item (1) must be adjusted on January first of each even-numbered year by multiplying the base amount by the cumulative Consumer Price Index and rounding it to the nearest $5.00 amount. For purposes of this section, 'base amount' is the daily limitation of fifty dollars, and 'Consumer Price Index' means the Southeastern Consumer Price Index All Urban Consumers as published by the U.S. Department of Labor, Bureau of Labor Statistics.

(3)   The State Ethics Commission must determine the cumulative increase in the Consumer Price Index through June thirtieth in odd-numbered years, and determine the adjustment, if any, to be made in the daily limitation. The State Ethics Commission shall approve the adjustment of the annual amount to a figure eight times the adjusted daily limitation.

(4)   The State Ethics Commission must notify all lobbyists' principals of the adjusted limitations at the time of registration."

SECTION   11.   Section 8-13-100(12) of the 1976 Code is amended to read:

"(12)   'Election' means:

(a)   a general, special, primary, or runoff election;

(b)   a convention or caucus of a political party held to nominate a candidate; or

(c)   the election of delegates to a constitutional convention for proposing amendments to the Constitution of the United States or the Constitution of this State; or

(d)   a ballot measure."

SECTION   12.   Section 8-13-320(9)(b) of the 1976 Code is amended to read:

"(b)(1)   No complaint may be accepted by the commission concerning a candidate for elective office in during the fifty-day period before an election in which he is a candidate. During this fifty-day period, any person may petition the court of common pleas alleging the violations complained of and praying for appropriate relief by way of mandamus or injunction, or both. Within ten days, a rule to show cause hearing must be held, and the court must either dismiss the petition or direct that a mandamus order or an injunction, or both, be issued. A violation of this chapter by a candidate during this fifty-day period must be considered to be an irreparable injury for which no adequate remedy at law exists. The institution of an action for injunctive relief does not relieve any party to the proceeding from any penalty prescribed for violations of this chapter. The court must award reasonable attorneys fees and costs to the non-petitioning party if a petition for mandamus or injunctive relief is dismissed based upon a finding that the:

(i)   petition is being presented for an improper purpose such as harassment or to cause delay;

(ii)   claims, defenses, and other legal contentions are not warranted by existing law or are based upon a frivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; and

(iii)   allegations and other factual contentions do not have evidentiary support or, if specifically so identified, are not likely to have evidentiary support after reasonable opportunity for further investigation or discovery.

(2)   Action on a complaint filed against a candidate which was received more than fifty days before the election and but which cannot be disposed of or dismissed by the commission at least thirty days before the election must be postponed until after the election."

SECTION   13.   Section 8-13-320(10)(b) of the 1976 Code is amended to read:

"(b)   If the commission or its executive director determines that the complaint does not allege facts sufficient to constitute a violation, the commission shall must dismiss the complaint and notify the complainant and respondent, and the. The entire matter must be stricken from public record unless the respondent, by written authorization to the State Ethics Commission, waives the confidentiality of the existence of the complaint and authorizes the release of information about the disposition of the complaint."

SECTION   14.   Section 8-13-320 of the 1976 Code is amended by adding an appropriately numbered item to read:

"( )   to file, in the court of common pleas of the county in which the respondent of a complaint resides, a certified copy of an order or decision of the commission, whereupon the court must render judgment in accordance with the order or decision without charge to the commission and must notify the respondent of the judgment imposed. The judgment has the same effect as though it had been rendered in a case duly heard and determined by the court."

SECTION   15.   Section 8-13-325 of the 1976 Code is amended to read:

"Section 8-13-325.   In order to offset costs associated with the: (1) administration and regulation of lobbyists and lobbyist's principals, and (2) enforcement of Chapter 17 of Title 2, The the State Ethics Commission shall retain fees generated by the registration of lobbyists and lobbyist's lobbyists' principals to offset costs associated with the administration and regulation of lobbyists and lobbyist's principals and the initial fine of one hundred dollars, as provided in Sections 2-17-50(A)(2)(a) and 8-13-1510(1)."

SECTION   16.   The 1976 Code is amended by adding:

"Section 8-13-365.   (A)   The commission must establish a system of electronic filing for all disclosures and reports required pursuant to Article 13 of Chapter 13 of Title 8 from all candidates and entities subject to its jurisdiction. These disclosures and reports for candidates and committees for statewide offices must be filed using an Internet-based filing system as prescribed by the commission. Reports and disclosures filed with the Ethics Committees of the Senate and House of Representatives for legislative offices must be in a format such that these filings can be forwarded to the State Ethics Commission using an Internet-based system. The information contained in the campaign disclosure form, with the exception of social security numbers, campaign bank account numbers, and tax ID numbers, must be publicly accessible, searchable, and transferable.

(B)   The Ethics Commission must submit to the General Assembly a report no later than one year after implementation of subsection (A), concerning the effectiveness of mandatory electronic filing, and must make recommendations as to the implementation of mandatory filing for all other candidates and entities."

SECTION   17.   Section 8-13-530 of the 1976 Code is amended to read:

"Section 8-13-530.   Each ethics committee shall:

(1)   ascertain whether a person has failed to comply fully and accurately with the disclosure requirements of this chapter and promptly notify the person to file the necessary notices and reports to satisfy the requirements of this chapter;

(2)   receive complaints filed by individuals and, upon a majority vote of the total membership of the committee, file complaints when alleged violations are identified;

(3)   upon the filing of a complaint, investigate possible violations of breach of a privilege governing a member of the appropriate house, the alleged breach of a rule governing a member of, legislative caucus committees for, or a candidate for the appropriate house, misconduct of a member of, legislative caucus committees for, or a candidate for the appropriate house, or a violation of this chapter or Chapter 17 of Title 2;

(2)(4)   receive and hear a complaint which alleges a breach of a privilege governing a member of the appropriate house, the alleged breach of a rule governing a member of or candidate for the appropriate house, misconduct of a member of or candidate for the appropriate house, or a violation of this chapter or Chapter 17 of Title 2. No complaint may be accepted by the ethics committee concerning a member of or candidate for the appropriate house in during the fifty-day period before an election in which the member or candidate is a candidate. During this fifty-day period, any person may petition the court of common pleas alleging the violations complained of and praying for appropriate relief by way of mandamus or injunction, or both. Within ten days, a rule to show cause hearing must be held, and the court must either dismiss the petition or direct that a mandamus order or an injunction, or both, be issued. A violation of this chapter by a candidate during this fifty-day period must be considered to be an irreparable injury for which no adequate remedy at law exists. The institution of an action for injunctive relief does not relieve any party to the proceeding from any penalty prescribed for violations of this chapter. The court must award reasonable attorneys fees and costs to the non-petitioning party if a petition for mandamus or injunctive relief is dismissed based upon a finding that the:

(i)   petition is being presented for an improper purpose such as harassment or to cause delay;

(ii)   claims, defenses, and other legal contentions are not warranted by existing law or are based upon a frivolous argument for the extension, modification, or reversal of existing law or the establishment of new law; and

(iii)   allegations and other factual contentions do not have evidentiary support or, if specifically so identified, are not likely to have evidentiary support after reasonable opportunity for further investigation or discovery.

Action on a complaint filed against a member or candidate which was received more than fifty days before the election and but which cannot be disposed of or dismissed by the ethics committee at least thirty days before the election must be postponed until after the election;

(3)(5)   obtain information and investigate complaints as provided in Section 8-13-540 with respect to any complaint filed pursuant to this chapter or Chapter 17 of Title 2 and to that end may compel by subpoena the attendance and testimony of witnesses and the production of pertinent books and papers;

(4)(6)   administer or recommend sanctions appropriate to a particular member of or candidate for the appropriate house pursuant to Section 8-13-540 or dismiss the charges; and

(5)(7)   act as an advisory body to the General Assembly and to individual members of or candidates for the appropriate house on questions pertaining to the disclosure and filing requirements of members of or candidates for the appropriate house."

SECTION   18.   Section 8-13-770 of the 1976 Code, as last amended by Section 69A.4, Part II, Act 387 of 2000, is further amended to read:

"Section 8-13-770.   A member of the General Assembly may not serve in any capacity as a member of a state board or commission, except for the State Budget and Control Board, the Advisory Commission on Intergovernmental Relations, the Legislative Audit Council, the Legislative Council, the Legislative Information Systems, the Judicial Council, the Sentencing Guidelines Commission, the Commission on Prosecution Coordination, the South Carolina Tobacco Community Development Board, the Tobacco Settlement Revenue Management Authority, the South Carolina Transportation Infrastructure Bank, and the joint legislative committees."

SECTION   19.   Section 8-13-1300(4) of the 1976 Code is amended to read:

"(4)   'Candidate' means: (a) a person who seeks appointment, nomination for election, or election to a statewide or local office, or authorizes or knowingly permits the collection or disbursement of money for the promotion of his candidacy or election.; (b) a person who is exploring whether or not to seek election at the state or local level; or (c) It also means a person on whose behalf write-in votes are solicited if the person has knowledge of such solicitation. 'Candidate' does not include a candidate within the meaning of Section 431(b) of the Federal Election Campaign Act of 1976."

SECTION   20.   Section 8-13-1300(6) of the 1976 Code is amended to read:

"(6)   'Committee' means an association, a club, an organization, or a group of persons which, to influence the outcome of an elective office or a ballot measure, receives contributions or makes expenditures in excess of five hundred dollars in the aggregate during an election cycle. It also means an individual a person who, to influence the outcome of an elective office or a ballot measure, makes:

(a)   contributions aggregating at least fifty twenty-five thousand dollars during an election cycle to, or at the request of, a candidate or a committee, or a combination of them.; or

(b)   independent expenditures aggregating five hundred dollars or more during an election cycle for the election or defeat of a candidate.

'Committee' includes a party committee, a legislative caucus committee, a noncandidate committee, or a committee that is not a campaign committee for a candidate but that is organized for the purpose of influencing an election."

SECTION   21.   Section 8-13-1300(7) of the 1976 Code is amended to read:

"(7)   'Contribution' means a gift, subscription, loan, guarantee upon which collection is made, forgiveness of a loan, an advance, in-kind contribution or expenditure, a deposit of money, or anything of value made to a candidate or committee to influence an election; or payment or compensation for the personal service of another person which is rendered for any purpose to a candidate or committee without charge, whether any of the above are made or offered directly or indirectly. 'Contribution' does not include (a) volunteer personal services on behalf of a candidate or committee for which the volunteer or any person acting on behalf of or instead of the volunteer receives no compensation either in cash or in-kind, directly or indirectly, from any source; or (b) a gift, subscription, loan, guarantee upon which collection is made, forgiveness of a loan, an advance, in-kind contribution or expenditure, a deposit of money, or anything of value made to any person who would not otherwise qualify as a candidate or committee under the provisions of this article but for that person's 'influencing the outcome of an elective office' as defined by Section 8-13-1300."

SECTION   22.   Section 8-13-1300(9) of the 1976 Code is amended to read:

"(9)   'Election' means:

(a)   a general, special, primary, or runoff election;

(b)   a convention or caucus of a political party held to nominate a candidate; or

(c)   the election of delegates to a constitutional convention for proposing amendments to the Constitution of the United States or the Constitution of this State; or

(d)   a ballot measure."

SECTION   23.   Section 8-13-1300(17) of the 1976 Code is amended to read:

"(17)   'Independent expenditure' means:

(a)   an expenditure made directly or indirectly by a person to advocate the election or defeat of a clearly identified candidate or ballot measure; and

(b)   when taken as a whole and in context, the expenditure made by a person expressly to urge a particular result in an election to influence the outcome of an elective office or ballot measure but which is not:

(i)   made to;

(ii)   controlled by;

(iii)   coordinated with;

(iv)   requested by; or

(v)   made upon consultation with a candidate or an agent of a candidate; or a committee or agent of a committee; or a ballot measure committee or an agent of a ballot measure committee.

Expenditures by party committees or expenditures by legislative caucus committees based upon party affiliation are considered to be controlled by, coordinated with, requested by, or made upon consultation with a candidate or an agent of a candidate."

SECTION   24.   Section 8-13-1300 of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )   'Ballot measure committee' means:

(a)   an association, club, an organization, or a group of persons which, to influence the outcome of a ballot measure, receives contributions or makes expenditures in excess of two thousand five hundred dollars in the aggregate during an election cycle;

(b)   a person, other than an individual, who, to influence the outcome of a ballot measure, makes contributions aggregating at least fifty thousand dollars during an election cycle to or at the request of a ballot measure committee; or

(c)   a person, other than an individual, who, to influence the outcome of a ballot measure, makes independent expenditures aggregating two thousand five hundred dollars or more during an election cycle."

SECTION   25.   Section 8-13-1300 of the 1976 Code is amended by adding appropriately numbered items at the end to read:

"( )   'Influence the outcome of an elective office' means:

(a)   expressly advocating the election or defeat of a clearly identified candidate using words including or substantially similar to 'vote for', 'elect', 'cast your ballot for', 'Smith for Governor', 'vote against', 'defeat', or 'reject';

(b)   communicating campaign slogans or individual words that, taken in context, have no other reasonable meaning other than to urge the election or defeat of a clearly identified candidate including or substantially similar to slogans or words such as 'Smith's the One', 'Jones 2000', 'Smith/Jones', 'Jones!', or 'Smith-A man for the People!'; or

(c)   any communication made, not more than forty-five days before an election, which promotes or supports a candidate or attacks or opposes a candidate, regardless of whether the communication expressly advocates a vote for or against a candidate. For purposes of this paragraph, 'communication' means (i) any paid advertisement or purchased program time broadcast over television or radio; (ii) any paid message conveyed through telephone banks, direct mail, or electronic mail; or (iii) any paid advertisement that costs more than $5,000 that is conveyed through a communication medium other than those set forth in subsections (i) or (ii) of this paragraph. 'Communication' does not include news, commentary, or editorial programming or article, or communication to an organization's own members."

SECTION   26.   Section 8-13-1300 of the 1976 Code is amended by adding appropriately numbered items at the end to read:

"( )   'Coordinated with' means discussion or negotiation between a candidate or a candidate's agent and: (a) a person; (b) an agent of a person; (c) any other agent of a candidate; or (d) any combination of these concerning, but not limited to, a political communication's:

(1)   contents, including the specific wording of print, broadcast, or telephone communications; appearance of print or broadcast communications; the message or theme of print or broadcast communications;

(2)   timing, including the proximity to general or primary elections, proximity to other political communications, and proximity to other campaign events;

(3)   location, including the proximity to other political communications, or geographical targeting, or both;

(4)   mode, including the medium (phone, broadcast, print, etc.) of the communication;

(5)   intended audience, including the demographic or political targeting, or geographical targeting; and

(6)   volume, including the amount, frequency, or size of the political communication."

SECTION   27.   Section 8-13-1300 of the 1976 Code is amended by adding appropriately numbered items at the end to read:

"( )   'Operation expenses' means expenditures for salaries and/or fringe benefits for part-time, full-time, temporary and/or contract employees; meeting expenses, travel, utilities, communications and/or communications equipment whether leased or purchased, printing or printing services, postage, food and/or beverage, advertising, consulting services, and/or any other expenditures which are not an authorized contribution to a candidate, committee, or ballot measure committee."

SECTION   28.   Section 8-13-1302 of the 1976 Code is amended to read:

"Section 8-13-1302.   (A)   A candidate, or committee, or ballot measure committee shall must maintain and preserve an account of:

(1)   the total amount of contributions accepted by the candidate, or committee, or ballot measure committee;

(2)   the name and address of each person making a contribution and the amount and date of receipt of each contribution;

(3)   the total amount of expenditures made by or on behalf of the candidate, or committee, or ballot measure committee;

(4)   the name and address of each person to whom an expenditure is made including the date, amount, purpose, and beneficiary of the expenditure;

(5)   all receipted bills, canceled checks, or other proof of payment for each expenditure; and

(6)   the occupation of each person making a contribution.

(B)   The candidate, or committee, or ballot measure committee must maintain and preserve all receipted bills and accounts required by this article for four years."

SECTION   29.   Section 8-13-1304 of the 1976 Code is amended to read:

"Section 8-13-1304.   (A)   A committee, except an out-of-state committee, which receives or expends more than five hundred dollars in the aggregate during an election cycle to influence the outcome of an elective office or ballot measure must file a statement of organization with the State Ethics Commission no later than five days after receiving the contribution or making the expenditure. An out-of-state committee which expends more than five hundred dollars in the aggregate during an election cycle to influence the outcome of an elective office or a ballot measure must file a statement of organization with the State Ethics Commission no later than five days after making the expenditure.

(B)   A ballot measure committee, except an out-of-state ballot measure committee, which receives or expends more than two thousand five hundred dollars in the aggregate during an election cycle to influence the outcome of a ballot measure must file a statement of organization with the State Ethics Commission no later than five days after receiving the contribution or making the expenditure. An out-of-state ballot measure committee which expends more than two thousand five hundred dollars in the aggregate during an election cycle to influence the outcome of a ballot measure must file a statement of organization with the State Ethics Commission no later than five days after making the expenditure."

SECTION   30.   Section 8-13-1306 of the 1976 Code is amended to read:

"Section 8-13-1306.   (A)   The statement of organization of a committee or a ballot measure committee must include:

(1)   the full name of the committee or ballot measure committee;

(2)   the complete address and telephone number of the committee or ballot measure committee;

(3)   the date the committee or ballot measure committee was organized;

(4)   a summary of the purpose of the committee or ballot measure committee;

(5)   the name and address of a corporation or an organization that sponsors the committee or ballot measure committee or is affiliated with the committee or ballot measure committee. If the committee or ballot measure committee is not sponsored by or affiliated with a corporation or an organization, the committee or ballot measure committee must specify the trade, profession, or primary interest of contributors to the committee or ballot measure committee;

(6)   the full name, address, telephone number, occupation, and principal place of business of the chairman and treasurer of the committee or ballot measure committee;

(7)   the full name, address, telephone number, occupation, and principal place of business of the custodian of the books and accounts, if other than the custodian is not one of the designated officers;

(8)   the full name and address of the depository in which the committee or ballot measure committee maintains its campaign account and the number of the account; and

(9)   a certification of the statement by the chairman and the treasurer.

(B)   The name of the committee or ballot measure committee designated on the statement of organization must incorporate the full name of the sponsoring entity, if any. An acronym or abbreviation may be used in other communications if the acronym or abbreviation commonly is known or clearly recognized by the general public.

(C)   The chairman must notify the State Ethics Commission in writing of a change in information previously reported in a statement of organization no later than ten business days after the change."

SECTION   31.   Section 8-13-1308(A) of the 1976 Code is amended to read:

"(A)   Upon the receipt or expenditure of campaign contributions or the making of independent expenditures totaling, in an accumulated aggregate, of five hundred dollars or more, a candidate or committee required to file a statement of organization pursuant to Section 8-13-1304(A) must file an initial certified campaign report within ten days of these initial receipts or expenditures. However, a candidate or a committee that who does not receive or expend campaign contributions totaling, in an accumulated aggregate, of five hundred dollars or more must file an initial certified campaign report fifteen days before an election."

SECTION   32.   Section 8-13-1308(D)(1) of the 1976 Code is amended to read:

"(D)(1)   At least fifteen days before an election, a certified campaign report must be filed showing contributions of more than one hundred dollars and expenditures to or by the candidate or committee for the period ending twenty days before the election. The candidate or committee must maintain a current list during the period before the election commencing at the beginning of the calendar quarter of the election of all contributions of more than one hundred dollars and expenditures. The list must be open to public inspection upon request."

SECTION   33.   Section 8-13-1308(F)(2) of the 1976 Code is amended to read:

"(2)   the name and address of each person making a contribution of more than one hundred dollars and the amount and date of receipt of each contribution;"

SECTION   34.   Section 8-13-1308 of the 1976 Code is further amended by adding a new subsection to read:

"(G)   Notwithstanding any other reporting requirements in this chapter, a political party, legislative caucus committee, and a party committee must file a certified campaign report upon the receipt of anything of value which total in the aggregate five hundred dollars or more. For purposes of this section, 'anything of value' includes contributions received which may be used for the payment of operation expenses of a political party, legislative caucus committee, or a party committee. A political party also must comply with the reporting requirements of subsections (B), (C), and (F) of Section 8-13-1308 in the same manner as a candidate or committee."

SECTION   35.   The 1976 Code is amended by adding:

"Section 8-13-1309.   (A)   Upon the receipt or expenditure of campaign contributions or the making of independent expenditures totaling, in an accumulated aggregate, two thousand five hundred dollars or more, a ballot measure committee required to file a statement of organization pursuant to Section 8-13-1304(B) must file an initial certified campaign report within ten days of these initial receipts or expenditures.

(B)   Following the filing of an initial certified campaign report, additional certified campaign reports must be filed within ten days following the end of each calendar quarter in which contributions are received or expenditures are made, whether before or after a ballot measure election until the campaign account undergoes final disbursement pursuant to the provisions of Section 8-13-1370(C).

(C)   At least fifteen days before a ballot measure election, a certified campaign report must be filed showing contributions of more than one hundred dollars and expenditures to or by the ballot measure committee for the period ending twenty days before the ballot measure election. The ballot measure committee must maintain a current list during the period before the ballot measure election commencing at the beginning of the calendar quarter of the election of all contributions of more than one hundred dollars. The list must be open to public inspection upon request.

(D)   Notwithstanding the provisions of subsections (B) and (C), if a pre-election campaign report provided for in subsection (C) is required to be filed within thirty days of the end of the prior quarter, a ballot measure committee must combine the quarterly report provided for in subsection (B) and the pre-election report and file the combined report subject to the provisions of subsection (C) no later than fifteen days before the ballot measure election.

(E)   Certified campaign reports detailing campaign contributions and expenditures must contain:

(1)   the total amount of contributions accepted by the ballot measure committee;

(2)   the name and address of each person making a contribution of more than one hundred dollars and the amount and date of receipt of each contribution;

(3)   the total amount of expenditures made by or on behalf of the ballot measure committee; and

(4)   the name and address of each person to whom an expenditure is made from campaign funds, including the date, amount, purpose, and beneficiary of the expenditure."

SECTION   36.   Section 8-13-1310 of the 1976 Code is amended to read:

"Section 8-13-1310.   (A)   All persons required to file certified campaign reports under pursuant to the provisions of this article must file those reports with the appropriate supervisory office.

(B)   The Ethics Committees of the Senate Ethics Committee and the House of Representatives Ethics Committee must forward a copy of each statement filed with it them to the State Ethics Commission within five business days of receipt.

(C)   Within five days of receipt, a copy of all campaign reports received by the State Ethics Commission must be forwarded to the State Election Commission and the clerk of court in the county of residence of the person required to file.

(D)   As provided in Section 8-13-1372, the State Election Ethics Commission must review all statements forwarded to it by the State Ethics Commission for inadvertent and unintentional errors or omissions."

SECTION   37.   Section 8-13-1314 of the 1976 Code is amended to read:

"Section 8-13-1314.   (A)   Within an election cycle, no candidate or anyone acting on his behalf may shall solicit or accept, and no person shall give or offer to give to a candidate or person acting on the candidate's behalf:

(1)   a contribution which exceeds:

(a)   three thousand five hundred dollars in the case of a candidate for statewide office; or

(b)   one thousand dollars in the case of a candidate for any other office;

(2)   a cash contribution from an individual unless the cash contribution does not exceed twenty-five dollars and is accompanied by a record of the amount of the contribution and the name and address of the contributor;

(3)   a contribution from, whether directly or indirectly, a registered lobbyist if that lobbyist engages in lobbying the public office or public body for which the candidate is seeking election;

(4)   contributions for two elective offices simultaneously, except as provided in Section 8-13-1318.

(B)   The restrictions on contributions in subsections (A)(1) and (A)(2) do not apply to a candidate making a contribution to his own campaign."

SECTION   38.   Section 8-13-1316 of the 1976 Code is amended to read:

"Section 8-13-1316.   (A)   Notwithstanding Section 8-13-1314(A)(1), Within within an election cycle, a candidate may not accept or receive contributions from a political party through its party committees or legislative caucus committees, and a political party through its party committees or legislative caucus committees may not give to a candidate contributions which total in the aggregate more than:

(1)   fifty thousand dollars in the case of a candidate for statewide office; or

(2)   five thousand dollars in the case of a candidate for any other office.

(B)   Party expenditures for partisan multi-candidate promotions for four or more candidates, including candidates for the United States Senate or the United States House of Representatives, where each candidate receives substantially equal treatment, both in terms of time or length discussed and prominence in presentation, shall not be included in the contribution limits under subsection (A). However, multi-candidate promotional expenditures are limited to:

(1)   the operation of telephone banks;

(2)   the preparation, mailing, and distribution of campaign materials including newspaper, television, and radio advertisements; or

(3)   voter registration and ballot information.

(C)   The recipient of a contribution given in violation of subsection (A) may not keep the contribution, but within seven days must remit the contribution to the Children's Trust Fund."

SECTION   39.   Section 8-13-1324 of the 1976 Code is amended to read:

"Section 8-13-1324.   (A)   A person may shall not make an anonymous contribution to a candidate, or committee, or ballot measure committee, and a candidate, or committee, or ballot measure committee may shall not accept an anonymous contribution from an individual except at a ticketed event where food or beverages are served or where political merchandise is distributed and where the price of the ticket is twenty-five dollars or less and goes toward defraying the cost of food, beverages, or political merchandise in whole or in part.

(B)   The recipient of an anonymous contribution given in violation of subsection (A) or the recipient of any other anonymous contribution may shall not keep the contribution but within seven days must remit the contribution to the Children's Trust Fund."

SECTION   40.   Section 8-13-1332 of the 1976 Code, as added by Act 248 of 1991, is amended to read:

"Section 8-13-1332.   It is unlawful for:

(1)   a committee or ballot measure committee to make a contribution or expenditure by using:

(a)   anything of value secured by physical force, job discrimination, financial reprisals, or threat of the same; or

(b)   dues, fees, or other monies required as a condition of membership in a labor organization, or as a condition of employment; or

(c)   monies obtained by the committee or the ballot measure committee in a commercial transaction;

(2)   a person to solicit an employee for a contribution and fail to inform the employee of the political purposes of the committee or ballot measure committee and of the employee's right to refuse to contribute without any advantage or promise of an advantage conditioned upon making the contribution or reprisal or threat of reprisal related to the failure to make the contribution;

(3)   a corporation or committee of a corporation to solicit contributions to the corporation or committee from a person other than its shareholders, directors, executive or administrative personnel, and their families;, except as provided in Section 8-13-1333.

(4)   an organization or committee of an organization to solicit contributions to the organization or committee from a person other than its members and their families."

SECTION   41.   Article 13, Chapter 13, Title 8 of the 1976 Code is amended by adding:

"Section 8-13-1333.   (A)   Not-for-profit corporations and committees formed by not-for-profit corporations may solicit contributions from the general public.

(B)   An organization or a committee of an organization may solicit contributions from the general public."

SECTION   42.   Section 8-13-1340 is amended to read:

"Section 8-13-1340.   (A)   Except as provided in subsections (B) and (E), A a candidate or public official may shall not make a contribution to another candidate or make an independent expenditure on behalf of another candidate or public official from the candidate's or public official's campaign account or through a committee, except legislative caucus committees, directly or indirectly established, financed, maintained, or controlled by the candidate or public official.

(B)   This section does not prohibit a candidate from:

(1)   making a contribution from the candidate's own personal funds on behalf of the candidate's candidacy or to another candidate for a different office; or

(2)   providing the candidate's surplus funds or material assets upon final disbursement to a legislative caucus committee or party committee in accordance with the procedures for the final disbursement of a candidate under Section 8-13-1370 of this article.

(C)   Assets or funds which are the proceeds of a campaign contribution and which are held by or under the control of a public official or a candidate for public office on January 1, 1992, are considered to be funds held by a candidate and subject to subsection (A).

(D)   A committee is considered to be directly or indirectly established, financed, maintained, or controlled by a candidate or public official if any of the following are applicable:

(1)   the candidate or public official, or an agent of either, has signature authority on the committee's checks;

(2)   funds contributed or disbursed by the committee are authorized or approved by the candidate or public official;

(3)   the candidate or public official is clearly identified on either the stationery or letterhead of the committee;

(4)   the candidate or public official signs solicitation letters or other correspondence on behalf of the entity;

(5)   the candidate, public official, or his campaign staff, office staff, or immediate family members, or any other agent of either, has the authority to approve, alter, or veto the committee's solicitations, contributions, donations, disbursements, or contracts to make disbursements; or

(6)   the committee pays for travel by the candidate or public official, his campaign staff or office staff, or any other agent of the candidate or public official, in excess of one hundred dollars per calendar year.

(E)   The provisions of subsection (A) do not apply to a committee directly or directly established, financed, maintained, or controlled by a candidate or public official if the candidate or public official directly or indirectly establishes, finances, maintains, or controls only one committee in addition to any committee formed by the candidate or public official to solely promote his own candidacy.

(F)   No committee operating under the provisions of Section 8-13-1340(E) may: (1) solicit or accept a contribution from a registered lobbyist if that lobbyist engages in lobbying the public office or public body for which the candidate is seeking election or (2) transfer anything of value to any other committee except as a contribution under the limitations of 8-13-1314(A) or the dissolution provisions of 8-13-1370."

SECTION   43.   Section 8-13-1358 of the 1976 Code is amended to read:

"Section 8-13-1358.   Except as provided in Section 8-13-365, Certified certified campaign reports must be filed on a format specified by the State Ethics Commission. The reports filed must be typed or printed in ink on forms supplied by the commission. A report may be filed with the commission on a computerized printout if the commission approves the proposed format and style."

SECTION   44.   Section 8-13-1366 of the 1976 Code is amended to read:

"Section 8-13-1366.   Certified campaign reports must be made available for public inspection at the office of the State Ethics Commission, the State Election Commission, the Senate Ethics Committee, the House of Representatives Ethics Committee, and the county clerk of court within two business days of receipt. The commissions commission, ethics committees, and county clerks of court may shall not require any information or identification as a condition of viewing a report or reports. The commissions commission, ethics committees, and the county clerks of court shall must ensure that the reports are available for copying or purchase at a reasonable cost."

SECTION   45.   Section 8-13-1368 of the 1976 Code is amended to read:

"Section 8-13-1368.   (A)   A candidate is not exempt from the campaign filing requirements as provided in this article until after an election in which the candidate is a candidate or is defeated and after the candidate no longer accepts contributions, incurs expenditures, or pays for expenditures incurred.

(B)   Committees and ballot measure committees may dissolve only after no longer accepting contributions, incurring expenditures, or paying for expenditures incurred.

(C)   If a committee or a ballot measure committee owes or is owed money, the committee or a ballot measure committee may dissolve, but must report the status of the debt annually on the same schedule as active committees or ballot measure committees until all debts are resolved. The method of resolution to eliminate these debts, including contributions accepted and payment for expenditures incurred, must be stated on the report.

(D)   A final report may be filed at the time or before a scheduled filing is due. The form must be marked 'final' and include a list of the material assets worth one hundred dollars or more and state their disposition."

SECTION   46.   Section 8-13-1370(C) of the 1976 Code is amended to read:

"(C)   A committee required to file reports under this article which has an unexpended balance of funds upon final disbursement not otherwise obligated for expenditures incurred to further the committee's purposes must designate how the surplus funds are to be distributed. The surplus funds must be:

(1)   contributed to the state's State's general fund;

(2)   returned pro rata to all contributors;

(3)   contributed to a political party or to another committee;

(4)   contributed to an organization exempt from tax under pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986; or

(5)   distributed using a combination of these options."

SECTION   47.   Section 8-13-1370 of the 1976 Code is amended by adding a subsection to read:

"(D)   A ballot measure committee required to file reports under this article which has an unexpended balance of funds upon final disbursement not otherwise obligated for expenditures incurred to further the ballot measure committee's purposes must designate how the surplus funds are to be distributed. The surplus funds must be:

(1)   contributed to the State's general fund;

(2)   returned pro rata to all contributors;

(3)   contributed to another ballot measure committee;

(4)   contributed to an organization exempt from tax pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code; or

(5)   distributed using a combination of these options."

SECTION   48.   Article 13, Chapter 13, Title 8 of the 1976 Code is amended by adding:

"Section 8-13-1371.   (A)   A ballot measure committee must not use or permit the use of contributions solicited for or received by the ballot measure committee for any purpose other than the purpose for which the ballot measure committee was originally created, unless the person making the contribution gives written authorization for a different use other than for which the contribution was originally intended.

(B)   The State Ethics Commission has jurisdiction to seize all funds in a ballot measure committee's account and distribute them in accordance with subsection (D) of this section when the ballot measure committee violates any provision of this section.

(C)   Within sixty days after the election or referendum at which the ballot measure committee attempted to influence the outcome of the election or referendum, the funds remaining in the ballot measure committee's account after the election or referendum must be distributed in accordance with subsection (D) of this section.

(D)   The seized funds must be:

(1)   contributed to the State's general fund;

(2)   contributed to an organization exempt from tax pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986;

(3)   returned pro rata to all contributors; or

(4)   distributed using a combination of these options."

SECTION   49.   Section 8-13-1372 of the 1976 Code is amended to read:

"Section 8-13-1372.   (A)   The State Election Ethics Commission, in its discretion, may determine that errors or omissions on campaign reports are inadvertent and unintentional and not an effort to violate a requirement of this chapter and may be handled as technical violations which are not subject to the provisions of this chapter pertaining to ethical violations. Technical violations must remain confidential unless requested to be made public by the candidate filing the report. In lieu of all other penalties, the State Election Ethics Commission may assess a technical violations penalty not to exceed fifty dollars.

(B)   A violation, other than an inadvertent or unintentional violation, must be referred to the appropriate supervisory office for appropriate action."

SECTION   50.   The 1976 Code is amended by adding:

"Section 8-13-1373.   If the Attorney General, after request by the State or any of its political subdivisions, refuses to defend an action brought in a court of competent jurisdiction challenging any provision of this chapter, the Budget and Control Board, using funds appropriated to the civil contingency fund, must defend the action brought against the State or the political subdivision. In cases where the Attorney General refuses to defend such an action, the Budget and Control Board must consult with the President Pro Tempore of the Senate and the Speaker of the House of Representatives in the selection of counsel and in other matters relating to the management of the litigation."

SECTION   51.   Section 8-13-1510 of the 1976 Code is amended to read:

"Section 8-13-1510.   Except as otherwise specifically provided in this chapter, a person required to file a report or statement under this chapter who files a late statement or report or fails to file a required statement or report must be assessed a civil penalty as follows:

(1)   a fine of one hundred dollars if the statement or report is not filed within five days after the established deadline provided by law in this chapter; or

(2)   after notice has been given by certified or registered mail that a required statement or report has not been filed, a fine of ten dollars a per day for the first ten days after notice has been given, and one hundred dollars for each additional calendar day in which the required statement is not filed, not exceeding five hundred dollars."

SECTION   52.   Section 8-13-1520 of the 1976 Code is amended to read:

"Section 8-13-1520.   (A)   Except as otherwise specifically provided in this chapter, a person who violates any provision of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both. A violation of the provisions of this chapter does not necessarily subject a public official to the provisions of Section 8-13-560.

(B)   A person who violates any provision of Article 13 is guilty of a misdemeanor and, upon conviction, must be fined not more than five hundred percent of the amount of contributions or anything of value that should have been reported pursuant to the provisions of Article 13 but not less than five thousand dollars or imprisoned for not more than one year, or both.

(C)   A violation of the provisions of this chapter does not necessarily subject a public official to the provisions of Section 8-13-560."

SECTION   53.   Article 15, Chapter 13, Title 7 of the 1976 Code is amended by adding:

"Section 7-13-1655.   (A)   As used in this section, 'voting system' means:

(1)   the total combination of mechanical, electromechanical, or electronic equipment, including the software, firmware, and documentation required to program, control, and support the equipment that is used to:

(a)   define ballots;

(b)   cast and count votes;

(c)   report or display election results; and

(d)   maintain and produce audit trail information;

(2)   the practices and associated documentation used to:

(a)   identify system components and versions of these components;

(b)   test the system during its development and maintenance;

(c)   maintain records of system errors and defects;

(d)   determine specific system changes to be made to a system after the initial qualification of the system; and

(e)   make available materials to the voter, such as notices, instructions, forms, or paper ballots.

(B)   The State Election Commission must:

(1)   approve and may adopt multiple voting systems to be used by authorities charged by law with conducting elections;

(2)   support the authorities charged by law with conducting elections, by providing training for personnel in the operation of the voting system approved and adopted by the commission;

(3)   support all aspects of creating the ballots and the database of the voting system which is approved and adopted; and

(4)   comply with the provisions of Chapter 35 of Title 11 in procuring a voting system or systems, as defined in subsection (A)."

SECTION   54.   Section 7-13-1320 of the 1976 Code is amended to read:

"Section 7-13-1320.   (a)   The use of vote recorders may be authorized for use in some absentee precincts in a county without requiring their use in all precincts.

(b)   Vote recorders of different kinds may be used for different precincts in the same county.

(c)   The county election commission shall must provide vote recorders in such numbers as it deems considers necessary in good working order and of sufficient capacity to accommodate the names of all candidates for all party offices and nominations and public offices which, under the provisions of existing laws and party rules, are to be voted for at any primary or other election."

SECTION   55.   Section 7-13-1330(A) and (H) of the 1976 Code, as last amended by Act 103 of 1999, are further amended to read:

"(A)   Before any kind of vote recorder system, including an optical scan voting system, is used at any election, it shall must be approved by the State Election Commission which shall must examine the vote recorder and shall must make and file in the commission's office a report, attested by the signature of the executive director, stating whether, in the opinion of the commission, the kind of vote recorder so examined can may be accurately and efficiently used by electors at elections, as provided by law. No vote recorder or optical scan voting system may be approved for use in the State unless certified by an Independent Testing Authority (ITA) a testing laboratory accredited by the National Association of State Election Directors and the State Election Commission federal Election Assistance Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national federal voting system standards. If this report states that the vote recorder can may be so used, the recorder shall must be considered approved and vote recorders of its kind may be adopted for use at elections, as herein provided in this section."

"(H)   Before any vote recorder or optical scan voting system approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer, at the manufacturer's expense, with the approved software ITA Secretary of State. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the The manufacturer to must place all updates of these source codes in escrow, and to notify the State Election Commission that this requirement has been met."

SECTION   56.   Section 7-13-1620 of the 1976 Code, as last amended by Act 103 of 1999, is further amended to read:

"Section 7-13-1620.   (A)   Before any kind of voting machine, including an electronic voting machine, is used at any an election, it must be approved by the State Election Commission which shall must examine the voting machine and make and file in the commission's office a report, attested to by the signature of the commission's executive director, stating whether, in the commission's opinion, the kind of voting machine so examined can may be accurately and efficiently used by electors at elections, as provided by law. No voting machine may be approved for use in the State unless certified by an Independent Testing Authority (ITA) a testing laboratory accredited by the National Association of State Election Directors and the State Election Commission federal Election Assistance Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national federal voting system standards.

(B)   When a voting machine has been approved for use before July 1, 1999, it may be used in elections. However, if the system's software or firmware is improved or changed, the system must comply with the requirements of subsection (A).

(C)   Any A person or company who requests an examination of any type of voting machine must pay a nonrefundable examination fee of one thousand dollars for a new voting system. A nonrefundable examination fee of five hundred dollars must be paid for an upgrade to any existing system. The State Election Commission may reexamine any voting machine when evidence is presented to the commission that the accuracy or the ability of the machine to be used satisfactorily in the conduct of elections is in question.

(D)   Any A person or company who seeks approval for any type of voting machine in this State must file with the State Election Commission a list of all states or jurisdictions in which that voting machine has been approved for use. This list must state how long the machine has been used in the state; contain the name, address, and telephone number of that state or jurisdiction's chief election official; and disclose any reports compiled by state or local government concerning the performance of the machine. The vendor is responsible for filing this information on an ongoing basis.

(E)   Any A person or an individual who seeks approval for any type of voting machine must file with the State Election Commission copies of all contracts and maintenance agreements used in connection with the sale of the voting machine. All changes to standard contracts and maintenance agreements must be filed with the State Election Commission.

(F)   Any A person or company who seeks approval for any voting machine must conduct, under the supervision of the State Election Commission and any county election commission, a field test for any new voting machine, as part of the certification process. The field test shall must involve South Carolina voters and election officials, and must be conducted as part of a scheduled primary, general, or special election. This test must be held in two or more precincts, and all costs relating to the use of the voting machine must be borne by the vendor. The test must be designed to gauge voter reaction to the machine, problems that voters have with the machine, and the number of units required for the efficient operation of an election. The test also must also demonstrate the accuracy of votes reported on the machine.

(G)   Before any a voting machine, approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer at the manufacturer's expense with the approved software ITA Secretary of State. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the The manufacturer to must place all updates of these source codes in escrow, and to notify the State Election Commission that this requirement had has been met.

(H)   After a voting machine is approved, an improvement or change in the machine must be submitted to the State Election Commission for approval pursuant to this section; however, this requirement does not apply to the technical capability of a general purpose computer, reader, or printer.

(I)   If the State Election Commission determines that a voting machine that was approved no longer meets the requirements of subsections (A) and (B) or Section 7-13-1640, the commission may must decertify that machine. A decertified machine shall must not be used in an election unless it is reapproved by the commission under pursuant to the provisions of subsections (A) and (B).

(J)   No member of the State Election Commission, county election commission, custodian, or member of a county governing body may have any a pecuniary interest in any voting machine or in the manufacture or sale of any voting machine."

SECTION   57.   Sections 7-13-1310 and 7-13-1660 of the 1976 Code are repealed.

SECTION   58.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or the validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   59.   The repeal or amendment by this act of any law, whether temporary or permanent or civil or criminal, does not affect pending actions, rights, duties, or liabilities founded thereon, or alter, discharge, release, or extinguish any penalty, forfeiture, or liability incurred under the repealed or amended law, unless the repealed or amended provision so expressly provides. After the effective date of this act, all laws repealed or amended by this act must be taken and treated as remaining in full force and effect for the purpose of sustaining any pending or vested right, civil action, special proceeding, criminal prosecution, or appeal existing as of the effective date of this act, and for the enforcement of rights, duties, penalties, forfeitures, and liabilities as they stood under the repealed or amended laws.

SECTION   60.   Except as provided in this Section, this act takes effect upon approval by the Governor, and as relating to Title 7 provisions, when funding is available to implement the requirements of this act. Sections 5, 6, and 7 take effect January 1, 2004; Sections 15, 42, and 51 take effect July 1, 2003; Sections 16 and 43 take effect November 3, 2004, if funding is appropriated by the General Assembly for this purpose, and apply to: (1) reports required to be filed with the commission after November 2, 2004, by candidates and committees for statewide offices, and (2) the forwarding of filings after November 2, 2004, to the commission by the Ethics Committees of the Senate and House of Representatives, pursuant to Section 8-13-365(A), and take effect January 2006 for these candidates and entities, notwithstanding the failure of the General Assembly to appropriate such funds for this purpose; Sections 19, 20, 21, 23, 24, 25, 26, 27, 28, 29, 31, 32, 33, 34, 35, 37, 38, 48, and 52 take effect November 3, 2004. The amendments to Section 8-13-1340 as contained in Section 42 (effective July 1, 2003), apply to contributions and transfers made on and after the effective date. The portions of Section 7-13-1330(A), Section 7-13-1330(H), and Section 7-13-1620 which relate to testing and certification, but not the provisions relating to source codes which take effect upon approval by the Governor, take effect when the members of the federal Election Assistance Commission are appointed and have adopted standards relating to testing and certification.   /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

Senator KNOTTS proposed the following amendment (JUD3777.013), which was adopted:

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

/ SECTION   1.   Article 15, Chapter 13, Title 7 of the 1976 Code is amended by adding:

"Section 7-13-1655.   (A)   As used in this section, 'voting system' means:

(1)   the total combination of mechanical, electromechanical, or electronic equipment, including the software, firmware, and documentation required to program, control, and support the equipment that is used to:

(a)   define ballots;

(b)   cast and count votes;

(c)   report or display election results; and

(d)   maintain and produce audit trail information;

(2)   the practices and associated documentation used to:

(a)   identify system components and versions of these components;

(b)   test the system during its development and maintenance;

(c)   maintain records of system errors and defects;

(d)   determine specific system changes to be made to a system after the initial qualification of the system; and

(e)   make available materials to the voter, such as notices, instructions, forms, or paper ballots.

(B)   The State Election Commission must:

(1)   approve and may adopt multiple voting systems to be used by authorities charged by law with conducting elections;

(2)   support the authorities charged by law with conducting elections, by providing training for personnel in the operation of the voting system approved and adopted by the commission;

(3)   support all aspects of creating the ballots and the database of the voting system which is approved and adopted; and

(4)   comply with the provisions of Chapter 35 of Title 11 in procuring a voting system or systems, as defined in subsection (A)."

SECTION   2.   Section 7-13-1320 of the 1976 Code is amended to read:

"Section 7-13-1320.   (a)   The use of vote recorders may be authorized for use in some absentee precincts in a county without requiring their use in all precincts.

(b)   Vote recorders of different kinds may be used for different precincts in the same county.

(c)   The county election commission shall must provide vote recorders in such numbers as it deems considers necessary in good working order and of sufficient capacity to accommodate the names of all candidates for all party offices and nominations and public offices which, under the provisions of existing laws and party rules, are to be voted for at any primary or other election."

SECTION   3.   Section 7-13-1330(A) and (H) of the 1976 Code, as last amended by Act 103 of 1999, are further amended to read:

"(A)   Before any kind of vote recorder system, including an optical scan voting system, is used at any election, it shall must be approved by the State Election Commission which shall must examine the vote recorder and shall must make and file in the commission's office a report, attested by the signature of the executive director, stating whether, in the opinion of the commission, the kind of vote recorder so examined can may be accurately and efficiently used by electors at elections, as provided by law. No vote recorder or optical scan voting system may be approved for use in the State unless certified by an Independent Testing Authority (ITA) a testing laboratory accredited by the National Association of State Election Directors and the State Election Commission federal Election Assistance Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national federal voting system standards. If this report states that the vote recorder can may be so used, the recorder shall must be considered approved and vote recorders of its kind may be adopted for use at elections, as herein provided in this section."

"(H)   Before any vote recorder or optical scan voting system approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer, at the manufacturer's expense, with the approved software ITA Secretary of State. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the The manufacturer to must place all updates of these source codes in escrow, and to notify the State Election Commission that this requirement has been met."

SECTION   4.   Section 7-13-1620 of the 1976 Code, as last amended by Act 103 of 1999, is further amended to read:

"Section 7-13-1620.   (A)   Before any kind of voting machine, including an electronic voting machine, is used at any an election, it must be approved by the State Election Commission which shall must examine the voting machine and make and file in the commission's office a report, attested to by the signature of the commission's executive director, stating whether, in the commission's opinion, the kind of voting machine so examined can may be accurately and efficiently used by electors at elections, as provided by law. No voting machine may be approved for use in the State unless certified by an Independent Testing Authority (ITA) a testing laboratory accredited by the National Association of State Election Directors and the State Election Commission federal Election Assistance Commission as meeting or exceeding the minimum requirements of the Federal Election Commission's national federal voting system standards.

(B)   When a voting machine has been approved for use before July 1, 1999, it may be used in elections. However, if the system's software or firmware is improved or changed, the system must comply with the requirements of subsection (A).

(C)   Any A person or company who requests an examination of any type of voting machine must pay a nonrefundable examination fee of one thousand dollars for a new voting system. A nonrefundable examination fee of five hundred dollars must be paid for an upgrade to any existing system. The State Election Commission may reexamine any voting machine when evidence is presented to the commission that the accuracy or the ability of the machine to be used satisfactorily in the conduct of elections is in question.

(D)   Any A person or company who seeks approval for any type of voting machine in this State must file with the State Election Commission a list of all states or jurisdictions in which that voting machine has been approved for use. This list must state how long the machine has been used in the state; contain the name, address, and telephone number of that state or jurisdiction's chief election official; and disclose any reports compiled by state or local government concerning the performance of the machine. The vendor is responsible for filing this information on an ongoing basis.

(E)   Any A person or an individual who seeks approval for any type of voting machine must file with the State Election Commission copies of all contracts and maintenance agreements used in connection with the sale of the voting machine. All changes to standard contracts and maintenance agreements must be filed with the State Election Commission.

(F)   Any A person or company who seeks approval for any voting machine must conduct, under the supervision of the State Election Commission and any county election commission, a field test for any new voting machine, as part of the certification process. The field test shall must involve South Carolina voters and election officials, and must be conducted as part of a scheduled primary, general, or special election. This test must be held in two or more precincts, and all costs relating to the use of the voting machine must be borne by the vendor. The test must be designed to gauge voter reaction to the machine, problems that voters have with the machine, and the number of units required for the efficient operation of an election. The test also must also demonstrate the accuracy of votes reported on the machine.

(G)   Before any a voting machine, approved after July 1, 1999, may be used in elections in the State, all source codes for the system must be placed in escrow by the manufacturer at the manufacturer's expense with the approved software ITA Secretary of State. These source codes must be available to the State Election Commission in the event that case the company goes out of business, pursuant to court order, or in the event that if the State Election Commission determines that an examination of these source codes is necessary. It is the responsibility of the The manufacturer to must place all updates of these source codes in escrow, and to notify the State Election Commission that this requirement had has been met.

(H)   After a voting machine is approved, an improvement or change in the machine must be submitted to the State Election Commission for approval pursuant to this section; however, this requirement does not apply to the technical capability of a general purpose computer, reader, or printer.

(I)   If the State Election Commission determines that a voting machine that was approved no longer meets the requirements of subsections (A) and (B) or Section 7-13-1640, the commission may must decertify that machine. A decertified machine shall must not be used in an election unless it is reapproved by the commission under pursuant to the provisions of subsections (A) and (B).

(J)   No member of the State Election Commission, county election commission, custodian, or member of a county governing body may have any a pecuniary interest in any voting machine or in the manufacture or sale of any voting machine."

SECTION   5.   Sections 7-13-1310 and 7-13-1660 of the 1976 Code are repealed.

SECTION   6.   Except as provided in this SECTION, this act takes effect upon approval by the Governor and when funding is available to implement the requirements of this act. The portions of Section 7-13-1330(A), Section 7-13-1330(H), and Section 7-13-1620 which relate to testing and certification, but not source codes, take effect when the members of the federal Election Assistance Commission are appointed and have adopted standards relating to testing and certification. /

Renumber sections to conform.

Amend title to conform.

Senator KNOTTS explained the amendment.

The amendment was adopted.

The Bill was read the third time and ordered returned to the House of Representatives with amendments.

THIRD READING BILL

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

H. 4268 (Word version) -- Rep. Duncan: A BILL TO PROVIDE THAT A CERTAIN PORTION OF THE ROADSIDE OF INTERSTATE HIGHWAY 26 IN LAURENS COUNTY MAY BE MOWED BEYOND THIRTY FEET FROM THE PAVEMENT.

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

There was no objection.

Senator PEELER objected to the consideration of any remaining Bills on the Third Reading Uncontested Calendar.

SECOND READING BILLS
WITH NOTICE OF GENERAL AMENDMENTS

The following Bills and Joint Resolutions, having been read the second time with notice of general amendments, were ordered placed on the third reading Calendar:

S. 104 (Word version) -- Senator Mescher: A BILL TO AMEND TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 34, TO PROVIDE FOR THE STANDARDS, REQUIREMENTS, AND PROCEDURES OF TATTOOING CERTAIN PERSONS UNDER CERTAIN CONDITIONS; AND TO AMEND SECTION 16-17-700, TO PROVIDE THAT IT IS UNLAWFUL TO TATTOO ANOTHER PERSON UNLESS THE TATTOO ARTIST MEETS THE REQUIREMENTS OF CHAPTER 34 OF TITLE 44.

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

There was no objection.

On motion of Senator MESCHER, with unanimous consent,   the Bill was read the second time, passed and ordered to a third reading with notice of general amendments, carrying over all amendments to third reading.

S. 724 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO WATER POLLUTION CONTROL PERMITS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2783, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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

There was no objection.

Senator HAYES explained the Joint Resolution.

H. 4158 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO HIGHWAY PATROL, SUBARTICLE 1 WRECKER REGULATIONS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2821, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 741 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BOARD OF LONG TERM HEALTH CARE ADMINISTRATORS, RELATING TO RESIDENTIAL CARE FACILITY ADMINISTRATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2829, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator HAYES explained the Joint Resolution.

S. 743 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE COMMISSION FOR THE BLIND, RELATING TO BUSINESS ENTERPRISE PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2832, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator HAYES explained the Joint Resolution.

H. 3080 (Word version) -- Reps. Easterday and Hinson: A BILL TO AMEND TITLE 58, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PUBLIC SERVICE COMMISSION, BY ADDING SECTION 58-3-230 SO AS TO PROHIBIT THE UNAUTHORIZED CHANGE OF A CUSTOMER'S UTILITY SERVICE PROVIDER, TO REQUIRE THAT THE AUTHORIZATION BE OBTAINED PURSUANT TO APPROPRIATE STATE AND FEDERAL REGULATIONS, TO PROVIDE THAT THE AUTHORIZATION FOLLOWS THE CUSTOMER, AND TO ESTABLISH PENALTIES.

H. 3986 (Word version) -- Rep. Cooper: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 12-21-4007 AND 12-21-4009 SO AS TO ADD SPECIFICATIONS FOR A SITE SYSTEM AND ELECTRONIC BINGO DABBER AND PROVIDE FOR THE LIMITED USE OF AN ELECTRONIC OR MECHANICAL DEVICE DESIGNED FOR A BINGO GAME; TO AMEND SECTION 12-21-3920, AS AMENDED, RELATING TO DEFINITIONS USED IN CONNECTION WITH PLAYING BINGO, SO AS TO CHANGE THE DEFINITION OF "CARD" TO COMPLY WITH PROVISIONS WHEN AN ELECTRONIC DABBER IS USED; TO AMEND SECTION 12-21-3990, AS AMENDED, RELATING TO THE MANNER OF PLAYING BINGO, SO AS TO CHANGE THE TIME THE AMOUNT OF THE PRIZE MUST BE ANNOUNCED AND THE AMOUNT OF THE PRIZE; TO AMEND SECTION 12-21-4000, AS AMENDED, RELATING TO BINGO PROCEDURES AND THE VARIOUS CLASSES OF A BINGO LICENSE, SO AS TO CLARIFY ON WHICH BASIS THE AMOUNT OF THE PRIZE IS CALCULATED AND PROVIDE FOR THE REGULATION OF PROMOTIONS CONDUCTED DURING A BINGO SESSION; AND TO AMEND SECTIONS 12-21-4020 AND 12-21-4120, BOTH AS AMENDED, RELATING TO THE RIGHT TO A CONFERENCE FOLLOWING A VIOLATION, SO AS TO REQUIRE THE DEPARTMENT OF REVENUE TO RESPOND IN WRITING AND SPECIFY WHAT INFORMATION MUST BE INCLUDED IN THE RESPONSE.

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

There was no objection.

On motion of Senator HAYES, with unanimous consent, the Bill was given a second reading with notice of general amendments, carrying over all amendments to third reading.

H. 3223 (Word version) -- Reps. Lourie, Altman, Bailey, Bales and Richardson: A BILL TO AMEND SECTION 61-4-520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPLICATIONS FOR PERMITS AUTHORIZING THE SALE OF BEER OR WINE AND SECTION 61-6-180, AS AMENDED, RELATING TO APPLICATIONS FOR LICENSES TO SELL ALCOHOLIC LIQUORS AND OTHER BEVERAGES, SO AS TO PROVIDE THAT THE NOTICES REQUIRED TO BE PUBLISHED IN CONNECTION WITH THESE APPLICATIONS MUST BE PUBLISHED IN THE NEWSPAPER OF GREATEST CIRCULATION IN THE AREA WHERE THE ESTABLISHMENT IS TO BE LOCATED.

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

There was no objection.

On motion of Senator RYBERG, with unanimous consent, the Bill was given a second reading with notice of general amendments, carrying over all amendments to third reading.

H. 4270 (Word version) -- Reps. Branham, McGee, Coates, M. Hines and J. Hines: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF THE FLORENCE COUNTY SCHOOL DISTRICTS 1, 2, 3, 4, AND 5 OF FLORENCE COUNTY MUST BE SET BY THE BOARD OF TRUSTEES OF THE DISTRICT IN ITS SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

On motion of Senator RICHARDSON, with unanimous consent, the Bill was given a second reading with notice of general amendments, carrying over all amendments to third reading.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 450 (Word version) -- Senator Thomas: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-6-75 SO AS TO PROVIDE THAT A REQUIREMENT TO OBTAIN PRIOR AUTHORIZATION OR PLACING OTHER RESTRICTIONS ON PRESCRIPTIONS FOR MEDICATIONS USED TO TREAT MENTAL ILLNESSES MAY NOT BE IMPOSED ON MEDICAID RECIPIENTS.

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

Medical Affairs Committee proposed the following amendment (NBD\11588AC03), which was adopted:

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

/SECTION   1.   Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

"Section 44-6-75.   No prior authorizations or other prescriptive restrictions may be required on medications prescribed to treat schizophrenia, bipolar disorders, or major depressive disorders as defined by the Diagnostics and Statistical Manual IV of the American Psychiatry Association."

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

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the committee amendment.

Senator RITCHIE spoke on the committee amendment.

The committee amendment was adopted.

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

PRESIDENT PRESIDES

At 7:51 P.M., the PRESIDENT assumed the Chair.

AMENDED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 3418 (Word version) -- Reps. Townsend and Lourie: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 2 TO CHAPTER 23, TITLE 59 SO AS TO FURTHER PROVIDE FOR APPLICABLE STANDARDS, WHICH APPLY TO THE CONSTRUCTION, IMPROVEMENT, OR RENOVATION OF PUBLIC SCHOOL BUILDINGS AND PROPERTY, AND TO REQUIRE THE CONSTRUCTION, IMPROVEMENT, OR RENOVATION OF PUBLIC SCHOOL BUILDINGS AND PROPERTY TO BE INSPECTED BY THE STATE SUPERINTENDENT OF EDUCATION OR THE SUPERINTENDENT'S DESIGNEE BEFORE OCCUPANCY AND A CERTIFICATE OF OCCUPANCY OBTAINED FROM THE SUPERINTENDENT; AND TO REPEAL ARTICLE 1, CHAPTER 23, TITLE 59 OF THE 1976 CODE, RELATING TO SCHOOL BUILDING CODES AND INSPECTIONS.

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

Senator HAYES proposed the following amendment (PT\1643SL03), which was adopted:

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

/   SECTION   1.   Chapter 23 of Title 59 of the 1976 Code is amended by adding:

  "Article 2

School Building Codes, Specifications, and Inspections

Section 59-23-210.   (A)   All construction, improvement, and renovation of public school buildings and property on or after the effective date of this section shall comply with the latest applicable standards and specifications set forth in the South Carolina School Facilities Planning and Construction Guide as published by the South Carolina Department of Education.

This guide must be reviewed and updated on an annual basis by a committee appointed by the South Carolina Department of Education. The committee shall consist of a minimum of two architects and one engineer who are all registered in South Carolina and experienced in K-12 design, one K-12 school administrator, one representative of the K-12 construction industry, the State Fire Marshal or his designee, a representative of the Traffic Engineering Division of the South Carolina Department of Transportation, and two representatives of the South Carolina Department of Education. In addition, the Chairman of the House of Representatives Education and Public Works Committee or his designee and the Chairman of the Senate Education Committee or his designee shall also serve as members of the committee, ex officio.

(B)   All construction, improvement, and renovation of public school buildings and property on or after the effective date of this section must have plans and specifications submitted to the State Superintendent of Education or the superintendent's designee. Approval of the plans and specifications by the State Superintendent of Education or the superintendent's designee must be received before public bidding before the construction can begin. Plans and specifications must be coordinated with county officials such as traffic engineers and zoning administrators.

Section 59-23-220.   All construction, improvements, and renovation of public school buildings and property must be inspected by the State Superintendent of Education or the superintendent's designee for compliance with the applicable codes and standards.

A certificate of occupancy must be obtained from the State Superintendent of Education or the superintendent's designee before a building may be occupied.

Section 59-23-230.   (A)   Notwithstanding any other provision of law, the State Superintendent of Education is authorized to grant a waiver from applicable school building regulations relating to building square foot requirements for construction of a new public school building or for the conversion of an existing commercial building into a public school facility. As part of the waiver request, districts must supply documentation of the suitability of the property and justification for the waiver request.

(B)   The authority granted the State Superintendent of Education under this section is superior to and supersedes provisions of applicable state school building regulations and the authority of a local building official or entity to disapprove the variances granted by the waiver. A provision of fire and life safety standards or specifications must not be waived.

(C)   The property owner of a building considered appropriate for conversion to a public school by the State Superintendent of Education may lease its building to a local school board of trustees to be used as a public school within the district.

Section 59-23-240.   All construction, improvements, and renovation of public school buildings and property for which waivers have been granted pursuant to Section 59-23-230 must be inspected by the State Superintendent of Education or the superintendent's designee before occupancy for compliance with the applicable waivers and standards.

Section 59-23-250.   (A)   Notwithstanding another provision of law, a requirement that public schools be constructed on a lot or parcel of certain minimum size is prohibited.

(B)   School districts must receive approval from the South Carolina Department of Education prior to property acquisition or additions on existing properties."

SECTION   2.   Article 1, Chapter 23, Title 59 of the 1976 Code is repealed.

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

Renumber sections to conform.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

AMENDED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 3889 (Word version) -- Reps. Dantzler, Rhoad, Altman, Bailey, Coates, Gourdine, Hinson, Merrill, Ott, Perry, Quinn, Scarborough, Taylor, Trotter, Umphlett, Snow, Frye and Koon: A BILL TO AMEND CHAPTER 69, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PRACTICE OF VETERINARY MEDICINE, SO AS TO CONFORM THE CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK OF CHAPTER 1, TITLE 40 FOR BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF THE STATE BOARD OF VETERINARY MEDICINE INCLUDING, BUT NOT LIMITED TO, REVISING PROCEDURES FOR CONDUCTING HEARINGS, REQUIRING DISCIPLINARY PROCEEDINGS TO BE OPEN TO THE PUBLIC AND TO PROVIDE EXCEPTIONS, PROVIDING FOR LICENSURE BY ENDORSEMENT, AUTHORIZING STUDENT PRECEPTOR PROGRAMS, AND ESTABLISHING CERTAIN STANDARDS FOR EMERGENCY CARE FACILITIES AND MOBILE CARE REQUIREMENTS.

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

Senator GROOMS proposed the following amendment (DKA\ 3632DW03), which was adopted:

Amend the bill, as and if amended, Section 40-69-190, SECTION 1, page 28, by inserting after line 26:

/   (K)   This section must be cited and known as 'Pumpkin's Law'. /

Renumber sections to conform.

Amend title to conform.

Senator GROOMS explained the amendment.

The amendment was adopted.

Senator WALDREP proposed the following amendment (GGS\22277HTC03), which was adopted:

Amend the bill, as and if amended, page 29, after line 19, by inserting:

/ Section 40-69-215.   The board shall not issue a cease and desist notice to an individual who has been hired solely for the act of 'floating' teeth in an equine. If that animal requires sedation or anesthesia, a licensed professional holding a Drug Enforcement Administration and South Carolina drug license must administer the controlled substance in accordance with state and federal law. /

Renumber sections to conform.

Amend title to conform.

Senator WALDREP explained the amendment.

The amendment was adopted.

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

COMMITTEE AMENDMENT ADOPTED, AMENDED
READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

H. 3900 (Word version) -- Reps. Harrell, Wilkins, Cato, Keegan, Cooper, Loftis, Altman, Ceips, Clark, Clemmons, Dantzler, Duncan, Haskins, Herbkersman, Hinson, Huggins, Limehouse, Littlejohn, Mahaffey, Cobb-Hunter, Perry, E.H. Pitts, M.A. Pitts, Mack, Richardson, J.H. Neal, Sandifer, Howard, Simrill, Bales, Skelton, Neilson, J.R. Smith, Owens, Snow, Talley, Trotter, Bailey, Umphlett, White, Whitmire, Thompson, Witherspoon, Whipper and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 45 TO TITLE 11 SO AS TO ENACT THE "VENTURE CAPITAL INVESTMENT ACT OF SOUTH CAROLINA" TO PROVIDE FOR THE ESTABLISHMENT OF A FUND SEPARATE AND DISTINCT FROM THE STATE GENERAL FUND IN THE DEPARTMENT OF COMMERCE KNOWN AS THE VENTURE CAPITAL FUND, TO PROVIDE FOR THE MANAGEMENT OF THIS SPECIAL FUND, TO PROVIDE FOR MONIES TO BE OBTAINED BY THE FUND FOR ITS STATED PURPOSES THROUGH LOANS MADE BY CERTAIN LENDERS, TO PROVIDE FOR REPAYMENTS TO LENDERS, AND TO PROVIDE THAT LENDERS SHALL RECEIVE TAX CREDITS WHICH MAY BE USED AS A CONTINGENT RESOURCE TO MEET PRINCIPAL AND INTEREST PAYMENTS WHEN DUE, TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH INVESTMENTS FROM THE FUND MAY BE MADE IN VENTURE CAPITAL INVESTMENTS FOR THE BENEFIT OF THIS STATE; TO ESTABLISH THE SOUTH CAROLINA TECHNOLOGY INNOVATION FUND UNDER THE ADMINISTRATION OF THE BOARD OF DIRECTORS OF THE VENTURE CAPITAL FUND AND PROVIDE FOR ITS USES, AND TO PROVIDE THAT ON THE EFFECTIVE DATE OF THIS ACT, THE ASSETS AND LIABILITIES OF THE PALMETTO SEED CAPITAL FUND LIMITED PARTNERSHIP, AS ESTABLISHED IN CHAPTER 44, TITLE 41 OF THE 1976 CODE, ARE TRANSFERRED TO THE SOUTH CAROLINA TECHNOLOGY INNOVATION FUND WITHIN THE SOUTH CAROLINA VENTURE CAPITAL FUND; AND TO REPEAL CHAPTER 44, TITLE 41 RELATING TO THE PALMETTO SEED CAPITAL FUND LIMITED PARTNERSHIP.

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

Senate Finance Committee proposed the following amendment (GJK\20704SD03), which was adopted:

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

/SECTION   1.   Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 45

Venture Capital Investment Act of South Carolina

Section 11-45-10.   This chapter may be cited as the 'Venture Capital Investment Act of South Carolina'.

Section 11-45-20.   The General Assembly desires to increase the availability of equity, near-equity, or seed capital in amounts of one hundred million dollars or more for emerging, expanding, relocating, and restructuring enterprises in the State, so as to help strengthen the state's economic base, and to support the economic development goals of this State as described in the strategic plan of the Department of Commerce to be published annually beginning in 2003. The General Assembly also desires to address the long-term capital needs of small-sized and medium-sized firms, to address the needs of micro enterprises, to expand availability of venture capital, and to increase international trade and export finance opportunities for South Carolina based companies.

Section 11-45-30.   For purposes of this chapter:

(1)   'Authority' means the South Carolina Department of Commerce.

(2)   'Certificate' means a document executed by the fund verifying a tax credit for any year to which a lender is entitled.

(3)   'Equity, near-equity, or seed capital' means capital invested in common or preferred stock, debt with equity conversion rights, royalty rights, limited partnership interests, limited liability company interests, and any other securities or rights that evidence ownership in private business.

(4)   'Fund' means the South Carolina Venture Capital Fund.

(5)   'Investor' means any corporation, limited liability company, or unincorporated business entity, including a general or limited partnership, that is selected by the fund to receive investments from the fund and then make venture capital investments therewith that meet the requirements of this chapter. An investor or a senior member of its management team must be a legal resident of this State and have a minimum of five years' experience in venture capital investing. In addition, substantially all of an investor's business activity shall be venture capital investing.

(6)   'Innovation Fund' means the South Carolina Technology Innovation Fund.

(7)   'Person' means any individual, corporation, partnership, or other lawfully organized entity.

(8)   'Research and development' means laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improvements to existing products. Research and development also includes intellectual property, information technology, or technology transfer endeavors. The term does not include efficiency surveys, management studies, consumer surveys, economic surveys, advertising, or promotion, or research in connection with literary, historical, or similar projects.

(9)   'Tax credit' means a credit against a lender's bank tax liability pursuant to Chapter 11, Title 12, or insurance premium tax liability pursuant to Chapter 7, Title 38 or other tax liability under Title 38, as the case may be, or in the case of a repeal or reduction by the State of the tax liability imposed by these sections, any other tax imposed upon such a lender by this State.

(10)   'Venture capital' means equity, near-equity, and seed capital financing including, without limitation, early stage research and development capital for startup enterprises, and other equity, near-equity, or seed capital for growth and expansion of entrepreneurial enterprises.

(11)   'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, insurance and insurance companies subject to a state premium tax liability under Chapter 7 of Title 38, and a captive insurance company regulated under Chapter 90 of Title 38.

(12)   'Capital commitment' means the amount of money committed by the fund to an investor for a term of up to ten years, which term may be extended to provide for an orderly liquidation of the investor's portfolio investments.

Section 11-45-40.   (A)   There is created, within the authority, a separate and distinct fund to be an independent instrumentality exercising essential public functions, and to be known as the 'fund' as defined in Section 11-45-30(4).

(B)(1)   The fund must be governed by a board composed of seven directors one of whom must be appointed by the Speaker of the House of Representatives, one of whom must be appointed by the Chairman of the House Ways and Means Committee, one of whom must be appointed by the President Pro Tempore of the Senate, one of whom must be appointed by the Chairman of the Senate Finance Committee, and three of whom must be appointed by the Governor, one of whom shall serve as chairman. No sitting member of the General Assembly may be appointed to serve on the board in any capacity including an ex officio capacity. Directors must be selected based upon outstanding knowledge and leadership, must be knowledgeable in the management of money and finance, and must possess experience in the management of investments similar in nature and in value to those of the fund. Directors serve for a term of office of four years and until their successors are appointed and qualify, except that of the initial directors appointed, the member appointed by the Speaker of the House of Representatives shall serve for an initial term of two years, the members appointed by the President Pro Tempore of the Senate shall serve for an initial term of two years, and one member appointed by the Governor shall serve for an initial term of two years so as to allow the terms of the directors to be staggered.

(2)   The directors have the authority to govern the fund in accordance with the requirements of this chapter.

(3)   A conflict of interest is considered to exist if a director of the fund, an officer, agent, or employee thereof, or any for-profit firm or corporation in which a director, officer, agent, or employee of the fund, or any member of his immediate family, as defined in Section 2-17-10(7), is an officer, partner, or principal stockholder engages in business activity with the fund either directly or indirectly in which the director, officer, agent, employee, or firm would personally benefit. In this case, the director, officer, agent, or employee shall refrain from any involvement of any type in regard to the activity including, but not limited to, discussing the proposed activity with another person associated with the entity desiring to engage in the activity with the fund, negotiating any aspects of the proposed activity with the fund, voting on any matter pertaining to the activity, and communicating with other board members, officers, agents, or employees of the fund concerning the activity. When a conflict arises, the director, officer, agent, or employee involved in the conflict, at the discretion of the board, shall resolve the conflict or resign from the position creating the conflict. Directors, officers, agents, and employees of the fund are subject to all provisions of Chapter 17, Title 2 and Chapter 13, Title 8, and the provisions of this item are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

(C)   The fund must be located within the Department of Commerce and is separate and distinct from the state general fund. The monies deposited in the accounts of the fund must be managed and invested by the directors with the assistance, if necessary, of professionals in the area of financial management and selected by a process as determined by the board of directors.

Section 11-45-50.   (A)   The fund must seek capital commitments to the fund in accordance with procedures approved by the State Budget and Control Board. The fund may retain an amount annually not to exceed one percent of the capital commitments received for expenses incurred by the fund. Capital contributions received by the fund must be in cash or in immediately available funds and are to be used only as provided by this chapter.

(B)   The fund shall retain any fees earned after repayment to lenders to use as a contingency fund for future obligations to lenders and to fulfill additional capital commitments. If at any time a principal or interest payment is due and the fund has insufficient monies to repay same, the fund shall issue tax credit certificates in an amount to meet the obligation as provided for below, and tax credits as stipulated in subsection (C) are hereby established in these required amounts.

(C)   These tax credits may be used to offset the lenders' state bank tax or premium tax liability in the event the fund does not meet its obligation to repay the lenders' cash investment together with required interest at the date and time the payment is due. These tax credits may be carried forward without limitation but are not refundable.

(D)   The tax credits may also be transferred among bank or insurance company lenders for consideration, and then used by the subsequent holder. These tax credits shall take the form of a certificate issued by the board of the fund stating the amounts, year, and conditions of the tax credits reflected on the certificate.

(E)   The board in accepting loans to the fund giving rise to these tax credits shall ensure that no more than fifty million dollars in total tax credit certificates are issued and outstanding at any one time with no more than ten million dollars in tax credit certificates being redeemable for any one year.

(F)   The fund is authorized to use the proceeds of loans received from lenders, together with other available monies, for making investments with venture capital investors and for paying and funding services as necessary.

(G)   No part of the fund may inure to the benefit of or be distributed to its employees, officers, or board of directors, or to members of their immediate families as this term is defined in Section 2-17-10(7), except that the fund is authorized to pay reasonable compensation for services provided by employees of the fund and out-of-pocket expenses incurred by its employees, officers, or board members, as long as such compensation does not create a conflict of interest pursuant to Section 11-45-40. The provisions of this subsection are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

Section 11-45-60.   The fund shall solicit from investors plans for the investing of capital in the fund in accordance with the requirements of this chapter. The fund shall consider and select the investment plans and shall select investors qualified to:

(1)   make the most effective and efficient utilization of the investment; and

(2)   invest in venture capital investments, requiring equity, near-equity, or seed capital which promote the economic development goals of this State as described in the strategic plan of the Department of Commerce adopted and published as of that date.

Section 11-45-70.   In order for the board of directors of the fund to place monies of the fund with an investor for the purpose of making a venture capital investment, the following requirements must be met:

(1)   No investment by an investor in any one investment may exceed five million dollars or fifteen percent of the committed capital of the investor, whichever is less. In addition, an investor must agree to invest at least an amount equal to the fund's capital commitment to such investor in South Carolina based companies.

(2)(a)   While the board of directors of the fund shall give preference to investors, otherwise qualified, that maintain either a headquarters or an office staffed by an investment professional in South Carolina, investments may be made with investors not principally located in South Carolina; provided, that the investors are otherwise qualified under this chapter and have other venture capital investments in South Carolina or in South Carolina based companies at least equal to the total amount of monies placed with that investor by the fund.

(b)   'South Carolina based companies' for purposes of this section means any corporation, limited liability company, or unincorporated business organization, including a general or limited partnership, that has its principal place of business located in this State and has at least fifty percent of its gross assets and fifty percent of its employees located in this State at the time of the initial investment. If a corporation, limited liability company, or unincorporated business organization is a member of an affiliated group, the gross assets and the number of employees of all of the members of the affiliated group, wherever those assets and employees are located, shall be included for the purpose of determining the percentage of the corporation's, company's, or organization's gross assets and employees located in this State.

(3)   When selecting investors with which to place the fund's venture capital investments, the board of directors shall give preference to investors that have on or before the date of the fund's capital commitment, aggregate capital commitments of at least three times the amount of the fund's capital commitment. An investor's capital commitments for purposes of this requirement include private, federal, or other nonstate funds secured by the investor.

(4)   Investors must develop a repayment plan based on expected liquidity events of its portfolio investments. All repayments must occur within ten years, subject to extension as described in Section 11-45-30(12).

(5)   No investment may violate the provisions of Section 11, Article X of the Constitution of this State.

Section 11-45-80.   In addition to and apart from the other duties and functions of the fund, there is created under the administration of the board of directors of the fund, another fund entitled the South Carolina Technology Innovation Fund which shall receive that funding as may be provided by law. The board shall contract with a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, for administration of the Innovation Fund.

The Innovation Fund must be used by the board to:

(1)   award small grants for the best and most creative ideas from South Carolina research universities' technology incubators with the awards to be available for eligible students and innovative knowledge-based enterprises that are located in a research university incubator. These grants are to be awarded to inspire and encourage knowledge-based technology and intellectual property transfers from research university faculty and students to the marketplace;

(2)   design a major education, marketing, and public relations program to ensure that residents of South Carolina, members of the General Assembly, and potential venture capital investors understand and support the requirements for participation in the fund, the strategic need for venture capital funding, and for grant support for deserving entrepreneurs.

Section 11-45-90.   (A)   The board shall provide loan, investment, tax credit, and expense reports at least quarterly during the fiscal year to the Governor, the General Assembly, and other appropriate officials and entities.

(B)   In addition to the quarterly reports provided in subsection (A), the board shall provide an annual report to the Governor, the General Assembly, and other appropriate officials and entities containing at a minimum the following information:

(1)   monies from the fund placed in venture capital investments with approved investors cumulatively and during that fiscal year;

(2)   the extent of current loan obligations including principal and interest requirements;

(3)   the amount and time lines of tax credit certificates issued both cumulatively and during that fiscal year;

(4)   a description of a material interest held by a director, officer, or employee of the fund with respect to the investments or assets of the fund;

(5)   a schedule of the rates of return, net of total investment expense, on assets of the fund overall and on assets aggregated by category over the most recent one-year, three-year, five-year, and ten-year periods, to the extent available; and

(6)   a schedule of the sum of total investment expense and total general administrative expense for the fiscal year expressed as a percentage of the fair value of assets of the fund on the last day of the fiscal year, and an equivalent percentage for the preceding five fiscal years, if applicable.

(C)   These disclosure requirements are cumulative to and do not replace other reporting requirements provided by law.

Section 11-45-100.   The fund has the power to promulgate regulations and make a contract, execute a document, perform an act, or enter into a financial or other transaction necessary to implement this chapter."

SECTION   2.   Upon certification to the Secretary of State by the President of the Palmetto Seed Capital Corporation that the remaining investments of the private sector limited partners of the Palmetto Seed Capital Fund Limited Partnership have been liquidated, Chapter 44 of Title 41 of the 1976 Code is repealed, and any remaining public assets and liabilities of the Palmetto Seed Capital Corporation shall be transferred to the South Carolina Venture Capital Fund herein created.

SECTION   3.   If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of Chapter 45 of Title 11 of the 1976 Code, is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of Chapter 45 of Title 11 of the 1976 Code, the General Assembly hereby declaring that it would have passed Chapter 45 of Title 11 of the 1976 Code, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION   4.   This act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

Senators PINCKNEY and MATTHEWS proposed the following amendment (DKA\3635DW03), which was adopted:

Amend the bill, as and if amended, Section 11-45-30(5), SECTION 1, page 2, by inserting after / company, / on line 40 / community development corporation, /.

Amend further, Section 11-45-30, SECTION 1, page 3, by inserting after line 37:

/ (13)   'Community development corporation' is as defined in Section 34-43-20(2). /

Amend further Section 11-45-70(2)(b), SECTION 1, page 6, by inserting after / company, / on line 43 / community development corporation, /.

Renumber sections to conform.

Amend title to conform.

Senator PINCKNEY explained the amendment.

The amendment was adopted.

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

SECOND READING BILLS

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

H. 3465 (Word version) -- Reps. Pinson, Parks, M.A. Pitts, Duncan, Taylor and Anthony: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF SCHOOL DISTRICTS NO. 50 AND 52 IN GREENWOOD COUNTY, SCHOOL DISTRICT NO. 51 IN GREENWOOD AND LAURENS COUNTIES, AND SCHOOL DISTRICTS NO. 55 AND 56 IN LAURENS COUNTY MUST BE SET BY THE BOARD OF TRUSTEES OF THE DISTRICTS IN THEIR SOLE DISCRETION, PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

By prior motion of Senator VERDIN

H. 4250 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO MOTORIST INSURANCE IDENTIFICATION DATABASE PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2820, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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

There was no objection.

H. 4250 -- Ordered to a Third Reading

On motion of Senator RYBERG, H. 4250 was ordered to receive a third reading on Thursday, June 5, 2003.

OBJECTION

H. 4016 (Word version) -- Rep. Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 TO CHAPTER 130, TITLE 59 SO AS TO ENACT THE "COLLEGE OF CHARLESTON ACADEMIC AND ADMINISTRATIVE FACILITIES BOND ACT" WHICH PRESCRIBES THE MANNER IN WHICH AND CONDITION UNDER WHICH THE COLLEGE OF CHARLESTON MAY ISSUE CERTAIN REVENUE BONDS FOR THE ACQUISITION OF ACADEMIC AND ADMINISTRATIVE BUILDINGS.

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

Senator RYBERG objected.

ADOPTED

H. 3620 (Word version) -- Rep. W.D. Smith: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES TO GIVE FIRST PRIORITY TO SUPPORTING AND PASSING THE DEFENSE APPROPRIATIONS BILL BEFORE OTHER APPROPRIATION MEASURES.

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

H. 3622 (Word version) -- Rep. W.D. Smith: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES TO SUPPORT AND VOTE FOR ALL EFFORTS TO BUILD AND DEPLOY A NATIONAL MISSILE DEFENSE SYSTEM AS RAPIDLY AS POSSIBLE.

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

H. 3172 (Word version) -- Reps. Altman, Littlejohn and Hinson: A CONCURRENT RESOLUTION TO REQUEST THE UNITED STATES CONGRESS AND THE PRESIDENT OF THE UNITED STATES TO REMEMBER THAT FEDERAL JUDGES ARE NOT APPOINTED FOR LIFE, BUT PURSUANT TO THE UNITED STATES CONSTITUTION ARE APPOINTED DURING "GOOD BEHAVIOR".

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

H. 3618 (Word version) -- Rep. W.D. Smith: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES TO PERMANENTLY REPEAL THE DEATH TAX.

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

H. 3938 (Word version) -- Reps. Scott, Bales, J. Brown, Cotty, Harrison, Howard, Lourie, J.H. Neal, Quinn, Rutherford and J.E. Smith: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE I-77 INTERCHANGE IN THE KILLIAN COMMUNITY OF RICHLAND COUNTY IN HONOR OF THE LATE W. D. "SON" GRIMSLEY, A DISTINGUISHED COMMUNITY LEADER AND PUBLIC SERVANT, AND TO REQUEST THE DEPARTMENT TO INSTALL APPROPRIATE MARKERS OR SIGNS ON THE INTERCHANGE SO THAT AS THE PUBLIC PASSES THEY WILL REMEMBER MR. GRIMSLEY'S CONTRIBUTIONS TO HIS COMMUNITY, COUNTY, AND STATE.

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

There was no objection.

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

MADE INTERRUPTED DEBATE

S. 735 (Word version) -- Senator McConnell: A CONCURRENT RESOLUTION TO PROVIDE PURSUANT TO ARTICLE III, SECTION 21 OF THE CONSTITUTION OF THIS STATE AND SECTION 2-1-180 OF THE 1976 CODE FOR THE RETURN OF THE GENERAL ASSEMBLY AND FOR THE MATTERS IT MAY CONSIDER ON SUCH RETURN WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 5, 2003, NOT LATER THAN 5:00 P.M.,

With Senator KUHN retaining the floor on S. 560, Senator McCONNELL asked unanimous consent to make a motion to place S. 735 in the status of Interrupted Debate.

There was no objection and S. 735 was placed in the status of Interrupted Debate.

OBJECTION

H. 3045 (Word version) -- Rep. Scott: A BILL TO AMEND CHAPTER 11, TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 6 SO AS TO ESTABLISH THE MOBILITY DEVELOPMENT AUTHORITY AS A DIVISION WITHIN THE STATE BUDGET AND CONTROL BOARD, AND TO PROVIDE ITS POWERS AND DUTIES; TO AMEND SECTIONS 57-1-20, 57-3-10, AND 57-3-20, ALL AS AMENDED, RELATING TO THE ESTABLISHMENT OF THE DEPARTMENT OF TRANSPORTATION AND ITS DIVISIONS, SO AS TO DELETE THE MASS TRANSIT DIVISION; TO REPEAL SECTION 57-3-40, RELATING TO THE DEPARTMENT OF TRANSPORTATION MASS TRANSIT DIVISION'S POWERS AND DUTIES; AND TO REPEAL CHAPTER 25, TITLE 58, RELATING TO REGIONAL TRANSPORTATION AUTHORITIES.

With Senator KUHN retaining the floor on S. 560, Senator LEATHERMAN asked unanimous consent to make a motion to recall H. 3045 from the Committee on Finance.

Senator PEELER objected.

OBJECTION

S. 95 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 15-3-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGAL ACTIONS BASED UPON A DEFECTIVE OR UNSAFE CONDITION OF AN IMPROVEMENT TO REAL PROPERTY, SO AS TO ESTABLISH AN OUTSIDE LIMITATION OF SIX YEARS AFTER SUBSTANTIAL COMPLETION OF THE IMPROVEMENT FOR BRINGING THE ACTION.

With Senator KUHN retaining the floor on S. 560, Senator GREGORY asked unanimous consent to make a motion to place S. 95 in the status of Adjourned Debate.

Senator KUHN objected.

OBJECTION

S. 407 (Word version) -- Senators Richardson, Hutto and Moore: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 61-6-1640 SO AS TO PROVIDE AN ESTABLISHMENT LICENSED TO SERVE MINIBOTTLES IS AUTHORIZED TO CONDUCT SAMPLINGS OF WINES IN EXCESS OF SIXTEEN PERCENT ALCOHOL, CORDIALS, AND DISTILLED SPIRITS, IF THE SAMPLING IS CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.

With Senator KUHN retaining the floor on S. 560, Senator RICHARDSON asked unanimous consent to make a motion to take up S. 407 for immediate consideration.

Senator KUHN objected.

OBJECTION

H. 3045 (Word version) -- Rep. Scott: A BILL TO AMEND CHAPTER 11, TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 6 SO AS TO ESTABLISH THE MOBILITY DEVELOPMENT AUTHORITY AS A DIVISION WITHIN THE STATE BUDGET AND CONTROL BOARD, AND TO PROVIDE ITS POWERS AND DUTIES; TO AMEND SECTIONS 57-1-20, 57-3-10, AND 57-3-20, ALL AS AMENDED, RELATING TO THE ESTABLISHMENT OF THE DEPARTMENT OF TRANSPORTATION AND ITS DIVISIONS, SO AS TO DELETE THE MASS TRANSIT DIVISION; TO REPEAL SECTION 57-3-40, RELATING TO THE DEPARTMENT OF TRANSPORTATION MASS TRANSIT DIVISION'S POWERS AND DUTIES; AND TO REPEAL CHAPTER 25, TITLE 58, RELATING TO REGIONAL TRANSPORTATION AUTHORITIES.

With Senator KUHN retaining the floor on S. 560, Senator PEELER asked unanimous consent to make a motion to recall H. 3045 from the Committee on Finance.

Senator KUHN objected.

Consideration was interrupted on S. 560, with Senator KUHN retaining the floor.

  LOCAL APPOINTMENTS
Confirmations

Having received a favorable report from the Darlington County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Darlington County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Deatrice B. Curtis, P. O. Box 185, Darlington, S.C. 29540 VICE Glenn Atkinson

Having received a favorable report from the Laurens County Delegation, the following appointment was confirmed in open session:

Reappointment, Laurens County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Paul Dean Lyles, 3538 Highway 221-S, Laurens, S.C. 29360

Having received a favorable report from the Florence County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Florence County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Rena Valarie C. White, 101 East Roughfork Street, Florence, S.C. 29501

Initial Appointment, Florence County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Jake Franklin Strickland, 3176 Old Creek Road, Scranton, S.C. 29591 VICE Shirley W. Vause (deceased)

Having received a favorable report from the Richland County Delegation, the following appointments were confirmed in open session:

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Harold A. Cuff, 2517 Marathon Drive, Columbia, S.C. 29209

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Willie H. Womble, Jr., 6706 Formosa Drive, Columbia, S.C. 29206

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Golie S. Augustus, P. O. Box 4181, Columbia, S.C. 29240

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

James K. Redding, 308 Stonegate Drive, Columbia, S.C. 29223-6412

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Valerie R. Stroman-Boyd, P. O. Box 9381, Columbia, S.C. 29290

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Michael R. Davis, 123 Saddlemount, Hopkins, S.C. 29061

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

George Anderson Surles, 113 Bostwick Ridge, Columbia, S.C. 29229

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Clevette L. Hudnell, 1400 Huger Street, Columbia, S.C. 29201

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Donald Jeffery Simons, 215 Willie Wilson Road, Eastover, S.C. 29044

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Melvin W. Maurer, 161 Midhurst Court, Irmo, S.C. 29063

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Phillip F. Newsom, 9890 Windsor Lake Blvd., Columbia, S.C. 29223

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Clemon L. Stocker, 135 American Ave., Hopkins, S.C. 29061

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Samuel Peay, 954 Campanella Drive, Columbia, S.C. 29203

Reappointment, Richland County Magistrate, with term to commence April 30, 2003, and to expire April 30, 2007

Kirby D. Shealy, Jr., 1825 St. Julian, 14-L, Columbia, S.C. 29204

MOTION ADOPTED

On motion of Senator CROMER, with unanimous consent, the Senate stood adjourned in memory of Carolyn Tinsley of Chapin, S.C., beloved aunt of Debbie Griffin, Research Director and Chief of Staff for the General Committee.

ADJOURNMENT

At 8:17 P.M., on motion of Senator RYBERG, the Senate adjourned to meet tomorrow at 10:00 A.M.

* * *

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