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

Wednesday, January 28, 2004
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 2:00 P.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, we read in the Book of Joshua that Joshua, who succeeded Moses, said to the people: "GO FORWARD."

Let us pray.

Father, in Your eyes a thousand years are as yesterday when it is past. You send the birds out on their flight. You spin the stars in their orbits in the universe.

Yet, in all our human troubles You say to the faithful, "Fear not, I am with you."

In this election year many are calling to You. Many have much to offer in the process. Some have power and money to contribute, but others, Father, have only a vote... and perhaps a prayer!

Father, hear the prayer... and bless the vote.
Amen.

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

MESSAGE FROM THE GOVERNOR

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

Statewide Appointments

Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 2002, and to expire July 1, 2006

1st Congressional District

T. Smith Ragsdale III, 1298 Debordieu Blvd., Georgetown, S.C. 29440 VICE M. Russell Holliday, Jr. (resigned)

Referred to the Committee on Fish, Game and Forestry.

Initial Appointment, South Carolina Commission for the Blind, with term to commence May 19, 2001, and to expire May 19, 2005

2nd Congressional District

Dr. Jullianne S. Kleckley, Eye Associates of Cayce/West Columbia, 600 Knox Abbott Dr., Cayce/West Columbia, S.C. 29169 VICE Thomas L. Williams

Referred to the General Committee.

Initial Appointment, South Carolina Board of Juvenile Parole, with term to commence June 30, 2003, and to expire June 30, 2007

At-Large

Mollie D. Taylor, 3618 Sunset Blvd., Suite B, West Columbia, S.C. 29169 VICE Marian Nettles

Referred to the Committee on Judiciary.

Reappointment, South Carolina State Board of Barber Examiners, with term to commence June 30, 2003, and to expire June 30, 2007

Master

Edwin C. Barnes, Kings Row Hairstyling, 630 Harden Street, Columbia, S.C. 29205

Referred to the Committee on Labor, Commerce and Industry.

MESSAGE FROM THE GOVERNOR
State of South Carolina
Office of the Governor

January 20, 2004
Mr. President and Members of the Senate:

I respectfully request withdrawal from your consideration the appointment listed below:

Respectfully,
Mark Sanford

Withdrawal of Statewide Appointment

Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 2002, and to expire July 1, 2006

At-Large

Kemp D. Box, Carolina Helicopter Services, P. O. Box 6822, Columbia, S.C. 29260 VICE Danny Ford

Appointment Withdrawn

On motion of Senator McCONNELL, the Senate acceded to the Governor's request and the Clerk was directed to return the appointment to the Governor.

APPOINTMENT RECALLED

On motion of Senator MESCHER, the following appointment was recalled from the General Committee and ordered for consideration tomorrow:

Reappointment, Prisoner of War Commission, with term to commence July 1, 2001, and to expire July 1, 2005

6th Congressional District

Mr. Charles R. Murray, 200 Carolina Ave., St. George, SC 29477

Doctor of the Day

Senator WALDREP introduced Dr. Marshall Meadors III of Anderson, S.C., Doctor of the Day.

Leave of Absence

On motion of Senator WALDREP, at 2:50 P.M., Senator RICHARDSON was granted a leave of absence for today.

Leave of Absence

On motion of Senator VERDIN, at 2:50 P.M., Senator RAVENEL was granted a leave of absence for today and tomorrow.

Expression of Personal Interest

Senator KNOTTS rose for an Expression of Personal Interest.

Remarks by Senator KNOTTS

Thank you, Mr. PRESIDENT and members of the body.

I rise to this occasion to bring notice to the body of a situation I think is very dear to all of our hearts of the passing of the Lieutenant Governor's grandfather. At this time I am just going to take a moment to read a little write-up and I would appreciate if, at the end, we could stand and have a moment of silence.

South Carolina's Lieutenant Governor's grandfather died in Charleston, S.C. Lee Wesley Westbury, the grandfather of Lieutenant Governor André Bauer, died January 23, 2004. He would have celebrated his 90th birthday on March 3rd. He was also the grandfather to Attorney Drea Bauer of Charleston and father of Jill Westbury Bauer of Charleston and Columbia. Lee Wesley Westbury was married to the late Marjorie Sineath Westbury. They celebrated their 64th wedding anniversary last March.

One of his greatest joys was campaigning for his grandson, Lieutenant Governor André Bauer. He was a consummate builder, real estate broker and investor and musician. The bridge entering Folly Beach is named in his honor and he received an award for thirty-two years of perfect attendance in a Baptist church. Other family members include the sister, Victoria Spell, and sisters-in-law, Reby and Wanda Sineath, and many nieces and nephews. Those who wish to honor Lee W. Westbury may send contributions to the Folly Beach River Park Beautification Fund. Services will be held on Friday, January 30, 2004, at 1:00 p.m. in the Folly Beach Baptist Church.

I would appreciate it if we would all stand in a moment of silence for this great South Carolinian.

Amen.

On motion of Senator BRANTON, with unanimous consent, Senator KNOTTS' remarks were ordered printed in the Journal.

Expression of Personal Interest

Senator ALEXANDER rose for an Expression of Personal Interest.

CO-SPONSORS ADDED

S. 863 (Word version) -- Senator Fair: A BILL TO AMEND SECTION 7-5-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT OF REGISTRATION IN ORDER TO VOTE, SO AS TO PROVIDE THAT A PERSON IS NOT ALLOWED TO VOTE IN A PARTISAN PRIMARY ELECTION, PARTISAN PRESIDENTIAL PRIMARY ELECTION, OR PARTISAN ADVISORY REFERENDUM UNLESS THE PERSON HAS REGISTERED AS BEING A MEMBER OF THAT PARTY OR HAS EXECUTED AN AFFIDAVIT AT THE POLLING PLACE FOR THE PRIMARY THAT HE IS A MEMBER OF THAT PARTY; TO AMEND SECTION 7-5-170, AS AMENDED, RELATING TO THE REQUIREMENTS FOR VOTER REGISTRATION, SO AS TO PROVIDE THE REQUIREMENT OF STATING POLITICAL PARTY AFFILIATION, IF ANY, ON THE FORM AND INCLUDING IT IN THE OATH; AND TO AMEND SECTION 7-9-20 RELATING TO THE QUALIFICATIONS FOR VOTING IN PRIMARY ELECTIONS, SO AS TO INCLUDE, AS A REQUIREMENT, REGISTERING AS A MEMBER OF THE PARTY OR EXECUTING AN AFFIDAVIT AT THE PRIMARY POLLING PLACE AFFIRMING THAT THE VOTER IS A MEMBER OF THE POLITICAL PARTY HOLDING THE PRIMARY.

On motion of Senator THOMAS, with unanimous consent, the name of Senator THOMAS was added as a co-sponsor of S. 863.

S. 846 (Word version) -- Senators Ryberg, Kuhn, Richardson, Moore, Gregory, Giese and Land: A BILL TO AMEND SECTIONS 9-1-1810 AND 9-11-310, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COST-OF-LIVING ADJUSTMENTS IN RETIREMENT ALLOWANCES PAID BY THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO DELETE THE CONTINGENCY IN THESE PROVISIONS PROVIDING THAT COST-OF-LIVING ADJUSTMENTS IN RETIREMENT ALLOWANCES MAY BE PAID ONLY IF THE INCREASED LIABILITIES RESULTING FROM THESE ADJUSTMENTS DO NOT REQUIRE AN INCREASE IN EMPLOYER CONTRIBUTIONS TO THESE SYSTEMS.

On motion of Senator RYBERG, with unanimous consent, the names of Senators SETZLER, KNOTTS, WALDREP, LEVENTIS, BRANTON, ANDERSON, FORD and GLOVER were added as co-sponsors of S. 846.

S. 714 (Word version) -- Senator McConnell: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE CONSTITUTIONAL OFFICERS OF THIS STATE, SO AS TO DELETE THE ADJUTANT GENERAL FROM THE LIST OF STATE OFFICERS WHICH THE CONSTITUTION REQUIRES TO BE ELECTED AND PROVIDE THAT, UPON THE EXPIRATION OF THE TERM OF THE ADJUTANT GENERAL SERVING IN OFFICE ON THE DATE OF THE 2006 GENERAL ELECTION, HE MUST BE APPOINTED BY THE GOVERNOR FOR A TERM COTERMINOUS WITH THAT OF THE GOVERNOR WITH THOSE QUALIFICATIONS AND UNDER THOSE PROCEDURES THE GENERAL ASSEMBLY SHALL PROVIDE BY LAW; AND PROPOSING AN AMENDMENT TO SECTION 4, ARTICLE XIII, RELATING TO THE ADJUTANT GENERAL AND HIS STAFF OFFICERS, SO AS TO UPDATE REFERENCES TO HIS TITLE AND MILITARY RANK, AND TO PROVIDE THAT, UPON THE EXPIRATION OF THE TERM OF THE ADJUTANT GENERAL SERVING IN OFFICE ON THE DATE OF THE 2006 GENERAL ELECTION, HE MUST BE APPOINTED BY THE GOVERNOR.

On motion of Senator ELLIOTT, with unanimous consent, the name of Senator ELLIOTT was added as a co-sponsor of S. 714.

S. 719 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 5-1-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PREREQUISITES TO THE ISSUANCE OF CORPORATE CERTIFICATE FOR A PROPOSED MUNICIPALITY, SO AS TO DELETE THE REQUIREMENT THAT NO PART OF THE PROPOSED MUNICIPALITY IS WITHIN FIVE MILES OF THE BOUNDARY OF AN ACTIVE INCORPORATED MUNICIPALITY.

On motion of Senator ELLIOTT, with unanimous consent, the name of Senator ELLIOTT was added as a co-sponsor of S. 719.

S. 609 (Word version) -- Senators McConnell, Martin, Courson, Richardson, Ryberg, Grooms, Mescher, Drummond and Reese: A BILL TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2003" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE, AND TO TRANSFER TO THIS NEWLY-CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, TO PROVIDE THAT THE HEAD OF THESE OFFICES, DIVISIONS, OR COMPONENTS, TRANSFERRED TO THE DEPARTMENT OF ADMINISTRATION, ON BEHALF OF THAT OFFICE, DIVISION, OR COMPONENT IS AUTHORIZED TO CONTRACT WITH PRIVATE PARTIES OR OTHER PUBLIC OR PRIVATE ENTITIES TO PERFORM ANY OF ITS DUTIES, FUNCTIONS, OR RESPONSIBILITIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE ABOVE; BY ADDING SECTION 1-3-55 SO AS TO PROVIDE THAT BEGINNING JULY 1, 2003, THE GOVERNOR MAY TRANSFER, CONSOLIDATE, OR ELIMINATE PROGRAMS AND FUNCTIONS UNDER CERTAIN CABINET AGENCIES, TO PROVIDE EXCEPTIONS, AND TO PROVIDE THAT IN IMPLEMENTING SUCH TRANSFERS, CONSOLIDATIONS, OR ELIMINATIONS, THE GOVERNOR MAY DESIGNATE WHICH APPROPRIATIONS, FUNDING, ASSETS, AND LIABILITIES SHALL BE TRANSFERRED OR CONSOLIDATED, WHICH EMPLOYEES TRANSFERRED, AND WHICH POSITIONS ELIMINATED; BY ADDING ARTICLE 6 TO CHAPTER 3 OF TITLE 1 SO AS TO ESTABLISH WITHIN THE BUDGET AND CONTROL BOARD THE DEPARTMENT OF THE STATE CHIEF INFORMATION OFFICER TO BE HEADED BY THE STATE CHIEF INFORMATION OFFICER AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE DEPARTMENT; BY ADDING CHAPTER 8 TO TITLE 1 SO AS TO CREATE THE OFFICE OF STATE INSPECTOR GENERAL AS A SEPARATE DIVISION WITHIN THE BUDGET AND CONTROL BOARD, TO PROVIDE THAT THE STATE INSPECTOR GENERAL MUST BE NOMINATED BY THE GOVERNOR AND ELECTED UNANIMOUSLY BY THE BUDGET AND CONTROL BOARD FOR A TERM COTERMINOUS WITH THAT OF THE GOVERNOR, TO PROVIDE FOR THE PURPOSE, DUTIES, RESPONSIBILITIES, AND AUTHORITY OF THE STATE INSPECTOR GENERAL, TO PROVIDE A DEFINITION OF "EXECUTIVE AGENCIES" FOR PURPOSES OF THIS CHAPTER, AND TO PROVIDE FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS RELATING TO IMPROPER OR UNLAWFUL ACTIVITY WITHIN EXECUTIVE AGENCIES OF THE STATE GOVERNMENT.

On motion of Senator ELLIOTT, with unanimous consent, the name of Senator ELLIOTT was added as a co-sponsor of S. 609.

S. 686 (Word version) -- Senator Thomas: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 2 TO CHAPTER 73, TITLE 38 SO AS TO ENACT THE "PROPERTY AND CASUALTY INSURANCE PERSONAL LINES MODERNIZATION ACT"; TO AMEND SECTION 38-73-910, RELATING TO CONDITIONS UNDER WHICH INSURANCE PREMIUMS MAY BE RAISED, SO AS TO DELETE FIRE, ALLIED LINES, AND HOMEOWNERS' INSURANCE FROM THIS REQUIREMENT, AND TO DELETE A PROVISION AUTHORIZING A PRIVATE INSURER TO UNDERWRITE CERTAIN ESSENTIAL PROPERTY INSURANCE AND TO FILE FOR RATE INCREASE UNDER CERTAIN CIRCUMSTANCES.

On motion of Senator ALEXANDER, with unanimous consent, the name of Senator ALEXANDER was added as a co-sponsor of S. 686.

RECALLED

S. 858 (Word version) -- Senator Land: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE LOCATED AT THE INTERSECTION OF INTERSTATE HIGHWAY 95 AND SOUTH CAROLINA HIGHWAY 261 IN CLARENDON COUNTY THE "MANNY MOORE INTERCHANGE" AND TO ERECT APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE CONTAINING THE WORDS "MANNY MOORE INTERCHANGE".

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

There was no objection.

The Resolution was recalled from the committee and ordered placed on the Calendar for consideration tomorrow.

COMMITTED

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.

Senator LEATHERMAN asked unanimous consent to commit the Bill to the Committee on Finance.

There was no objection.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 864 (Word version) -- Senator Leatherman: A SENATE RESOLUTION TO COMMEND SANDY K. AGEE ON HER YEARS OF DEDICATED PUBLIC SERVICE AND RECOGNIZE THE EXTENT THAT HER TIRELESS EFFORTS AND OUTSTANDING CONTRIBUTIONS HAVE GREATLY BENEFITED THE CITIZENS OF SOUTH CAROLINA.
l:\s-res\hkl\010sand.mrh.doc

The Senate Resolution was adopted.

S. 865 (Word version) -- Senators Thomas, Fair and Anderson: A CONCURRENT RESOLUTION TO DECLARE WEDNESDAY, FEBRUARY 18, 2004, AS "SOUTH CAROLINA HOMETOWN DAY" IN ORDER TO RECOGNIZE AND HONOR THE MANY OUTSTANDING MUNICIPAL OFFICIALS IN OUR STATE.
l:\council\bills\dka\3723dw04.doc

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

S. 866 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO DECLARE THE MONTH OF MARCH AS COLORECTAL CANCER AWARENESS MONTH IN THE STATE OF SOUTH CAROLINA.
l:\s-res\jvs\014marc.mrh.doc

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

S. 867 (Word version) -- Senators J. Verne Smith, Hayes, Martin, Verdin, Alexander, O'Dell, Cromer, Peeler, Mescher, Hawkins, Elliott and Short: A BILL TO AMEND SECTION 6-23-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTRACTS TO BUY POWER BETWEEN A JOINT POWER AND ENERGY AGENCY AND ITS CONSTITUENT MUNICIPALITIES, SO AS TO PROVIDE FOR THE EXTENSION OF CONTRACTS TO BUY POWER BEYOND THE ORIGINAL FIFTY-YEAR LIMIT WHEN THE DATE OF OPERATION OF THE ELECTRICAL UTILITY AGENT IS EXTENDED BY ALL AGENCIES HAVING JURISDICTION OVER SUCH AN EXTENSION.
l:\council\bills\ggs\22407htc04.doc

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

S. 868 (Word version) -- Senator Thomas: A BILL TO AMEND SECTION 40-55-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS EXEMPT FROM PSYCHOLOGY LICENSURE REQUIREMENTS, SO AS TO ADD AN EXEMPTION FOR PERSONS WHO ADMINISTER, SCORE, AND INTERPRET VARIOUS EDUCATIONAL TESTS FOR THE PURPOSE OF DIAGNOSING EDUCATIONAL ISSUES AND PRESCRIBING EDUCATIONAL TREATMENT.
l:\council\bills\nbd\12098ac04.doc

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

S. 869 (Word version) -- Senator J. Verne Smith: A BILL TO AMEND CHAPTER 35, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF LONG TERM HEALTH CARE ADMINISTRATORS, SO AS TO SPECIFY EXPERIENCE REQUIRED TO QUALIFY FOR LICENSURE AS A NURSING HOME OR COMMUNITY RESIDENTIAL CARE FACILITY ADMINISTRATOR, TO PROHIBIT LICENSURE OF A PERSON WHO HAS BEEN CONVICTED OF A CRIME RELATED TO THE PRACTICE OF NURSING HOME OR COMMUNITY RESIDENTIAL CARE FACILITY ADMINISTRATION, TO DELETE SPECIFIC FEES AND REQUIRE FEES TO BE PROMULGATED IN REGULATION, TO FURTHER SPECIFY ACTS OF MISCONDUCT, TO SPECIFY THE AMOUNT OF CIVIL FINES THAT MAY BE IMPOSED GENERALLY AND SPECIFICALLY FOR UNLAWFUL PRACTICE, TO FURTHER PROVIDE FOR THE REGULATION OF NURSING HOME AND COMMUNITY RESIDENTIAL CARE FACILITY ADMINISTRATORS, AND TO MAKE TECHNICAL CORRECTIONS.
l:\council\bills\nbd\12024ac04.doc

Read the first time and referred to the Committee on Labor, Commerce and Industry.

S. 870 (Word version) -- Senators J. Verne Smith, Drummond, Alexander, Anderson, Branton, Courson, Cromer, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hawkins, Hayes, 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, Thomas, Verdin and Waldrep: A SENATE RESOLUTION TO AUTHORIZE THE COMMISSIONING OF A PORTRAIT OF THE HONORABLE ERNEST FREDERICK "FRITZ" HOLLINGS OF CHARLESTON TO BE PLACED IN THE SENATE CHAMBER AS A TRIBUTE TO THIS GREAT SOUTH CAROLINIAN AND DISTINGUISHED STATESMAN.
l:\s-res\jvs\015holl.mrh.doc

The Senate Resolution was introduced and ordered placed on the Calendar without reference.

S. 871 (Word version) -- Senator Elliott: A BILL TO AMEND SECTION 1-3-240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REMOVAL OF STATE OFFICERS BY THE GOVERNOR, SO AS TO ADD PERSONS SERVING ON THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY TO THE CATEGORY OF STATE OFFICERS WHO CAN BE REMOVED BY THE GOVERNOR ONLY FOR CAUSE.
l:\council\bills\ms\7086mm04.doc

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

S. 872 (Word version) -- Senator Peeler: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA SENATE ON THE DEATH OF THE HONORABLE W.R. "BOBBY" DOUGLAS, SR., OF CHEROKEE COUNTY AND TO EXTEND THEIR DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
l:\council\bills\pt\1840ahb04.doc

The Senate Resolution was adopted.

S. 873 (Word version) -- Senators Peeler, Ritchie, Hawkins, Alexander, Anderson, Branton, Courson, Cromer, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hayes, Hutto, Jackson, Knotts, Kuhn, Land, Leatherman, Leventis, Malloy, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Patterson, Pinckney, Rankin, Ravenel, Reese, Richardson, Ryberg, Setzler, Short, J. Verne Smith, Thomas, Verdin and Waldrep: A CONCURRENT RESOLUTION TO CONGRATULATE THE COACHES, PLAYERS, AND FANS OF THE NATIONAL FOOTBALL LEAGUE'S CAROLINA PANTHERS IN SHOWING TREMENDOUS COURAGE, DEDICATION, AND DESIRE DURING THE 2003-2004 SEASON IN ACHIEVING THE FRANCHISE'S FIRST EVER TRIP TO THE SUPER BOWL.
l:\s-res\hsp\001pant.mrh.doc

Senator PEELER spoke on the Resolution.

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

H. 3744 (Word version) -- Reps. Sandifer, Kirsh, Richardson, Cato, Young, Battle, E. H. Pitts, Barfield, Clemmons, G. R. Smith, Ceips, Chellis, Clark, Cooper, Davenport, Duncan, Edge, Gilham, Herbkersman, Huggins, Keegan, Bingham, Leach, Littlejohn, Townsend, Kennedy, Loftis, Dantzler, Mahaffey, Bailey, Koon, McCraw, Frye, Owens, Perry, Umphlett, Phillips, Pinson, Rice, Scarborough, Simrill, D. C. Smith, J. R. Smith, Snow, Stille, Taylor, Toole, Tripp, Trotter, Vaughn, Viers, Walker, White, Whitmire and Witherspoon: A BILL TO AMEND SECTION 15-7-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ACTIONS THAT MUST BE TRIED IN THE COUNTY WHERE THE DEFENDANT RESIDES, SO AS TO DEFINE KEY TERMS AND TO PROVIDE FACTORS FOR THE COURT TO CONSIDER WHEN DETERMINING A CORPORATION'S PRINCIPAL PLACE OF BUSINESS; TO AMEND SECTION 15-7-100, RELATING TO CHANGING THE PLACE OF TRIAL, SO AS TO PROVIDE FACTORS FOR THE COURT TO CONSIDER WHEN DETERMINING WHETHER TO CHANGE THE PLACE OF TRIAL; TO AMEND SECTION 36-2-803, RELATING TO PERSONAL JURISDICTION BASED UPON CONDUCT, SO AS TO DELETE THE PROVISION THAT PROHIBITED CHANGE OF VENUE IN AN ACTION WHEN JURISDICTION IS BASED SOLELY ON THIS SECTION; TO AMEND SECTION 15-36-10, AS AMENDED, RELATING TO LIABILITY FOR ATTORNEY'S FEES AND COSTS OF FRIVOLOUS SUITS, SO AS TO REPLACE THE EXISTING PROVISIONS OF THE CHAPTER WITH PROVISIONS REQUIRING THE SIGNATURE OF AN ATTORNEY OR PRO SE LITIGANT ON ALL PLEADINGS AND OTHER DOCUMENTS FILED IN A CIVIL OR ADMINISTRATIVE ACTION, TO PROVIDE THAT THE SIGNATURE CONSTITUTES CERTIFICATION THAT THE ACTION IS NOT FRIVOLOUS OR INTERPOSED FOR DELAY, AND TO PROVIDE SANCTIONS; BY ADDING SECTION 15-36-100 SO AS TO ESTABLISH THE REQUIREMENT FOR AN AFFIDAVIT OF AN EXPERT WITNESS IN A PROFESSIONAL MALPRACTICE ACTION; TO AMEND SECTION 15-3-640, RELATING TO THE STATUTE OF LIMITATIONS FOR FILING AN ACTION FOR A CONSTRUCTION DEFECT, SO AS TO DECREASE THE STATUTE OF REPOSE FROM THIRTEEN TO EIGHT YEARS; TO AMEND SECTIONS 40-59-840 AND 40-59-850, BOTH RELATING TO NOTICE AND OPPORTUNITY TO CURE CONSTRUCTION DWELLING DEFECTS, SO AS TO PROVIDE THAT THE STATUTE OF LIMITATIONS IS TOLLED UNTIL A CLAIM IS DENIED OR REPAIRS ARE COMPLETED AND TO PROVIDE THAT THE CLAIMANT MAY PROCEED WITH A CIVIL ACTION IF THE PARTIES CANNOT AGREE TO SETTLE THE DISPUTE WITHIN NINETY DAYS OF THE INITIAL NOTICE OF CLAIM; TO AMEND CHAPTER 11, TITLE 40, RELATING TO CONTRACTORS, SO AS TO DESIGNATE THE EXISTING SECTIONS AS ARTICLE 1; BY ADDING ARTICLE 3, CHAPTER 11, TITLE 40 SO AS TO ENACT THE "SOUTH CAROLINA NOTICE AND OPPORTUNITY TO CURE NON-RESIDENTIAL CONSTRUCTION DEFECTS ACT", TO PROVIDE A DEFINITION FOR "NON-RESIDENTIAL PROPERTY" AND OTHER KEY TERMS, TO PROVIDE THAT THE STATUTE OF LIMITATIONS IS TOLLED UNTIL A CLAIM IS DENIED OR REPAIRS ARE COMPLETED, AND TO PROVIDE THAT THE CLAIMANT MAY PROCEED WITH A CIVIL ACTION IF THE PARTIES CANNOT AGREE TO SETTLE THE DISPUTE; TO AMEND SECTION 34-31-20, AS AMENDED, RELATING TO THE POST JUDGMENT LEGAL RATE OF INTEREST, SO AS TO PROVIDE THE RATE OF INTEREST IS EQUAL TO THE PRIME RATE AS LISTED IN THE WALL STREET JOURNAL PLUS FOUR PERCENT; BY ADDING ARTICLE 1, CHAPTER 32, TITLE 15 SO AS TO ENACT THE SOUTH CAROLINA NONECONOMIC DAMAGE AWARDS ACT, TO PROVIDE A DEFINITION FOR "NONECONOMIC DAMAGES" AND OTHER KEY TERMS, AND TO PROVIDE THAT A PLAINTIFF MAY BE AWARDED COMPENSATION FOR ACTUAL ECONOMIC DAMAGES AND NONECONOMIC DAMAGES NOT TO EXCEED TWO MILLION DOLLARS; BY ADDING ARTICLE 3, CHAPTER 32, TITLE 15 SO AS TO ESTABLISH A PROCEDURE FOR THE AWARD OF PUNITIVE DAMAGES, TO PROVIDE A DEFINITION FOR "PUNITIVE DAMAGES" AND OTHER KEY TERMS, TO PROVIDE PUNITIVE DAMAGES MUST BE PROVEN BY CLEAR AND CONVINCING EVIDENCE, TO PROVIDE THE JURY MUST DETERMINE AND STATE THE AMOUNT OF PUNITIVE DAMAGES SEPARATELY FROM THE AMOUNT OF COMPENSATORY DAMAGES, TO PROHIBIT PUNITIVE DAMAGES FROM EXCEEDING NINE TIMES THE AMOUNT OF COMPENSATORY DAMAGES, AND TO PROVIDE FOR A BIFURCATED TRIAL IN CIVIL ACTIONS TRIED BEFORE A JURY WHEN PUNITIVE DAMAGES ARE SOUGHT; TO AMEND CHAPTER 38, TITLE 15, RELATING TO THE SOUTH CAROLINA CONTRIBUTION AMONG TORTFEASORS ACT, SO AS TO INCREASE THE TIME IN WHICH A CLAIMANT MAY OPEN A JUDGMENT TO TWO YEARS, TO ABOLISH JOINT AND SEVERAL LIABILITY, AND TO PROVIDE FOR CONTRIBUTORY LIABILITY AMONG TORTFEASORS; TO AMEND SECTION 29-7-20, AS AMENDED, RELATING TO PENALTIES FOR FAILURE TO PAY LABORERS, SO AS TO DELETE THE PROVISION THAT PROVIDES THAT A VIOLATION OF THE SECTION IS A MISDEMEANOR, TO DELETE THE PROVISION THAT PROVIDES FOR A FINE OR IMPRISONMENT, AND TO PROVIDE THAT A PERSON WHO VIOLATES THE PROVISIONS OF THIS SECTION IS SUBJECT TO AN ACTION FOR DAMAGES; TO REPEAL SECTION 58-23-90 OF THE 1976 CODE RELATING TO THE PROPER VENUE TO BRING AN ACTION AGAINST A LICENSED MOTOR CARRIER, AND TO REPEAL SECTIONS 15-36-20, 15-36-30, 15-36-40, 15-36-50 OF THE 1976 CODE, ALL RELATING TO FRIVOLOUS CIVIL PROCEEDINGS.

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

H. 4464 (Word version) -- Reps. W. D. Smith, Taylor, G. M. Smith, Clemmons, Walker, Keegan, Barfield, Viers, Owens, G. R. Smith, Rice, White and Sandifer: A BILL TO ENACT THE "MEDICAL MALPRACTICE AND PATIENT SAFETY REFORM ACT" BY ADDING TITLE 15, CHAPTER 80 TO THE CODE OF LAWS OF SOUTH CAROLINA, 1976.

H. 4464 -- Objection

Senator MOORE asked unanimous consent to make a motion that the Bill be placed on the Calendar without reference.

Senator HUTTO objected.

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

H. 4574 (Word version) -- Rep. Bowers: A BILL TO AMEND SECTION 7-7-300, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS AND POLLING PLACES IN HAMPTON COUNTY, SO AS TO CHANGE THE LOCATION OF TWO POLLING PLACES.

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

H. 4607 (Word version) -- Reps. Coates, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Cobb-Hunter, 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, 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 RECOGNIZE MS. CLAUDIA H. BURLEY OF FLORENCE COUNTY FOR FORTY YEARS OF SERVICE WITH THE SURMFIT STONE CORPORATION AND WISH HER MUCH HAPPINESS DURING HER RETIREMENT YEARS.

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

H. 4608 (Word version) -- Reps. J. R. Smith, Perry and D. C. Smith: A CONCURRENT RESOLUTION RECOGNIZING THE NAVAL JUNIOR ROTC OF SILVER BLUFF HIGH SCHOOL IN AIKEN COUNTY ON ITS OUTSTANDING PERFORMANCE AT THE STATEWIDE DRILL EVENT JANUARY 17, 2004, EARNING THE OVERALL STATE OF SOUTH CAROLINA NJROTC DRILL CHAMPIONSHIP.

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

H. 4618 (Word version) -- Reps. Wilkins, 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, 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, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION TO RECOGNIZE THE MANY OUTSTANDING MUNICIPAL OFFICIALS IN SOUTH CAROLINA BY DECLARING THAT FEBRUARY 18, 2004, BE KNOWN AS "SOUTH CAROLINA HOMETOWN DAY" IN HONOR OF THEIR TIRELESS EFFORTS TO MAKE OUR CITIES AND TOWNS OUTSTANDING PLACES TO LIVE.

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

H. 4620 (Word version) -- Reps. McGee, 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, 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, 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, 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 AUTHORIZE PALMETTO BOYS STATE TO USE THE CHAMBERS OF THE HOUSE OF REPRESENTATIVES AND THE SENATE ON FRIDAY, JUNE 11, 2004.

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

H. 4623 (Word version) -- Rep. R. Brown: A CONCURRENT RESOLUTION TO CONGRATULATE DR. VASHTI WASHINGTON, PRINCIPAL OF MT. ZION ELEMENTARY SCHOOL, ON BEING NAMED "RURAL EDUCATOR OF THE YEAR FOR 2002-2003" AND TO EXTEND TO HER BEST WISHES IN ALL OF HER FUTURE ENDEAVORS.

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

H. 4631 (Word version) -- Reps. J. R. Smith, Clyburn, Clark, Perry, D. C. Smith and Stewart: A CONCURRENT RESOLUTION TO COMMEND AND CONGRATULATE THE HONORABLE SUE R. TOWNSEND OF AIKEN FOR HER MANY YEARS OF UNSELFISH PUBLIC SERVICE AS CORONER FOR AIKEN COUNTY AND EXTEND BEST WISHES TO HER UPON HER RETIREMENT.

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

H. 4632 (Word version) -- Reps. Mahaffey, Sinclair and Talley: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO THE MEMBERS OF THE 2003 JAMES F. BYRNES HIGH SCHOOL "REBELS" FOOTBALL TEAM AND HEAD COACH BOBBY BENTLEY FOR THEIR OUTSTANDING STATE CHAMPIONSHIP WIN IN THE DIVISION II 4A STATE FOOTBALL CHAMPIONSHIP COMPETITION.

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

Message from the House

Columbia, S.C., January 28, 2004

Mr. President and Senators:

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

H. 3617 (Word version) -- Reps. Sandifer, Bailey, Frye, Cato, E.H. Pitts, Cotty, J.H. Neal, J. Brown, Anthony, Ceips, Duncan, Freeman, Mahaffey, McCraw, Ott, Phillips, M.A. Pitts, Stille, White and Whitmire: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 32-7-60 SO AS TO CREATE THE PRENEED FUNERAL LOSS REIMBURSEMENT FUND AND TO PROVIDE FOR THE PURPOSE AND USES OF MONIES IN THE FUND; TO AMEND SECTION 32-7-45, RELATING TO THE TRANSFER PROCEDURES FOR TRUST FUNDS HELD PURSUANT TO PRENEED BURIAL CONTRACTS, SO AS TO REVISE THESE PROCEDURES; AND TO AMEND SECTION 32-7-50, RELATING TO LICENSURE REQUIREMENTS TO OFFER AND ENTER INTO PRENEED BURIAL CONTRACTS, SO AS TO PROVIDE A PENALTY FOR ENTERING INTO SUCH CONTRACTS WITHOUT BEING LICENSED.
Very respectfully,
Speaker of the House

Received as information.

HOUSE CONCURRENCE

S. 756 (Word version) -- Senators Alexander, Knotts and Reese: A CONCURRENT RESOLUTION TO DECLARE THE WEEK OF FEBRUARY 1-7, 2004, AS BURN AWARENESS WEEK IN SOUTH CAROLINA AND TO COMMEND THE SHRINERS OF NORTH AMERICA FOR PROMOTING BURN SAFETY AND AWARENESS.

Returned with concurrence.

Received as information.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE

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.

The Senate proceeded to a consideration of the Bill, the question being the adoption of Amendment No. 6 (BBM\9901SL03) previously proposed by Senators RITCHIE, LAND, LEATHERMAN, MOORE, ALEXANDER and McGILL.

Amendment No. 6

Senators RITCHIE, LAND, LEATHERMAN, MOORE, ALEXANDER and McGILL proposed the following Amendment No. 6 (BBM\9901SL03), which was withdrawn:

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 KUHN argued contra to the amendment.

On motion of Senator RITCHIE, Amendment No. 6 was withdrawn.

Amendment No. 7

Senators MATTHEWS, ANDERSON, FORD, GLOVER, JACKSON, PATTERSON and PINCKNEY proposed the following Amendment No. 7 (BBM\9913MM03), which was tabled:

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

/ SECTION   __.   Section 59-127-470.   There is established on the campus of South Carolina State University in Orangeburg a School of Law in honor of and bearing the name of retired Supreme Court Justice Ernest A. Finney, Jr., except that the implementation of this section must be postponed until such time as the School of Law may be adequately and sufficiently funded by the State of South Carolina. /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG moved to lay the amendment on the table.

A roll call vote was ordered.

Expression of Personal Interest

Senator FORD rose for an Expression of Personal Interest.

The question then was the motion to table the amendment.

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

Ayes 26; Nays 15

AYES

Alexander                 Courson                   Cromer
Drummond                  Fair                      Giese
Gregory                   Grooms                    Hayes
Knotts                    Kuhn                      Land
Leatherman                Martin                    McConnell
Mescher                   Moore                     O'Dell
Peeler                    Ritchie                   Ryberg
Setzler                   Smith, J. Verne           Thomas
Verdin                    Waldrep

Total--26

NAYS

Anderson                  Branton                   Elliott
Ford                      Hawkins                   Hutto
Jackson                   Leventis                  Malloy
Matthews                  McGill                    Patterson
Pinckney                  Rankin                    Short

Total--15

Amendment No. 7 was laid on the table.

Senator JACKSON spoke on the amendment.

Amendment No. 9

Senator RICHARDSON proposed the following Amendment No. 9 (560R002.SHR), which was tabled:

Amend the bill, as and if amended, by striking Section 11-51-125(A) and inserting:

/   (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 one million dollars of these bonds is authorized to each of the thirty public institutions of higher learning.   /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

Senator MARTIN moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 10

Senators RYBERG proposed the following Amendment No. 10 (560R005.WGR), which was tabled:

Amend the bill, as and if amended, by striking subsection (E) of Section 11-45-50 of the 1976 Code and inserting:

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

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

Senator RYBERG moved that the amendment be adopted.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 12

Senator THOMAS proposed the following Amendment No. 12 (560R006.DLT), which was withdrawn:

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

/   SECTION   ____.   Notwithstanding any other provision of law, the University of South Carolina shall establish a regional campus in Greenville to be known as the University of South Carolina - Greenville. The University of South Carolina - Greenville is authorized to offer four-year degrees in degree programs established by University of South Carolina - Greenville in conjunction with the Commission on Higher Education. The Commission on Higher Education must promulgate regulations to effectuate the intent of this section.   /

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the amendment.

Senator J. VERNE SMITH spoke on the amendment.

On motion of Senator THOMAS, with unanimous consent, the amendment was withdrawn.

Amendment No. 13

Senator THOMAS proposed the following Amendment No. 13 (560R007.DLT), which was adopted:

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

/   SECTION   ____.   Any public institution of higher education is required to annually report the number of out-of-state undergraduate students in attendance at the respective university for the fall and spring semester. Each university will also be required to report an out-of-state undergraduate student policy and how that policy was enacted by each university. The report will be required to be submitted to the Governor and each member of the General Assembly no later than September 15 of each year for the latest completed school year.   /

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the amendment.

Senator THOMAS moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 15

Senators KNOTTS, DRUMMOND, RAVENEL, REESE and KUHN proposed the following Amendment No. 15 (GJK\20878HTC04), which was ruled out of order:

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

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

"Section 1-1-30.   (A)   As used in this section:

(1)   'agency' means a state agency, board, committee, commission, or institution and includes a nonprofit corporation, foundation, or other nonprofit entity, however described, established by or otherwise associated with a state agency.

(2)   'goods and services' means goods and services produced by or otherwise made available by the agency to private individuals or private entities, the provision of which does not constitute the primary governmental purpose of the agency.

(B)   The General Assembly declares that it is the public policy of this State that state agencies shall not undertake to provide goods and services when those goods and services are readily and competitively available or which can be made readily and competitively available from private sector businesses or other organizations in this State. Before a state agency may undertake to produce or otherwise provide goods and services, it must submit a request in writing to the State Budget and Control Board detailing the goods and services to be provided and the agency's justification for providing them in contravention of the public policy of this State. The agency may proceed only upon a written finding by the State Budget and Control Board that the:

(1)   goods and services to be offered are not or cannot be made readily and competitively available from private sector businesses or other organizations in this State; and

(2)   offering of these goods and services will measurably enhance the ability of the state agency in the performance of its primary governmental purpose ." /

Renumber sections to conform.

Amend title to conform.

PRESIDENT PRO TEMPORE PRESIDES

At 3:32 P.M., Senator McCONNELL assumed the Chair.

Point of Order

Senator LEATHERMAN raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

The PRESIDENT Pro Tempore sustained the Point of Order.

Amendment No. 15 was ruled out of order.

Amendment No. 16

Senator HUTTO proposed the following Amendment No. 16 (HUTTO-560-HS), which was adopted:

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

/SECTION   .   Section 59-149-50(A) of the 1976 Code is amended to read:

"(A) To be eligible for a LIFE Scholarship, a student must be either a member of a class a student who has graduating graduated from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student who has graduating graduated from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent. , and these students These students must also meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B)."     /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

Senator HUTTO moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 17

Senator HUTTO proposed the following Amendment No. 17 (HUTTO-560-TR), which was adopted:

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

/SECTION   .   Section 59-149-10(B)(2) of the 1976 Code is amended to read:

"(2) a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which has attained 501(c)(3) tax status and is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of Colleges and Schools; or a public or independent two-year institution which has attained 501(c)(3) tax status. Institutions whose sole purpose is religious or theological training or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter."   /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

Amendment No. 18

Senator MOORE proposed the following Amendment No. 18 (560R024.TLM), , which was adopted:

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

/   SECTION   ____.   Section 59-149-50(B) of the 1976 Code is amended to read:

"(B)   Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60. The cumulative grade point average calculation, for purposes of LIFE scholarship eligibility, must be inclusive of the student's grade point average at all public or independent institutions, as defined in Section 59-149-10(B), attended by the student."     /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

Senator MOORE moved that the amendment be adopted.

The amendment was adopted.

Amendment No. P1-14

Senator SHORT proposed the following Amendment No. P1-14 (560R021.LHS), which was tabled:

Amend the amendment bearing Document Number L:\S-RES\AMEND\560R017.HKL, page 20, as contained in Section 11-51-125, second and third sentences, by striking the word / twelve / and inserting /   eighteen   /.

Amend the amendment further, page 21, as contained in subsection (B)(1), subsection (a), by striking the word

/ Eighty-eight   / and inserting /     Eighty-two     /.

Amend the amendment further, page 21, as contained in subsection (B)(1), subsection (b), by striking the word

/   Twelve   / and inserting   /   Eighteen     /.

Renumber sections to conform.

Amend title to conform.

Senator SHORT explained the amendment.

PRESIDENT PRESIDES

At 3:53 P.M., the PRESIDENT assumed the Chair.

Senators KUHN and MATTHEWS argued in favor of the adoption of the amendment and Senator LEATHERMAN argued contra.

Senator LEATHERMAN moved to lay the amendment on the table.

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

Ayes 32; Nays 10

AYES

Alexander                 Anderson                  Branton
Courson                   Cromer                    Drummond
Elliott                   Fair                      Giese
Gregory                   Grooms                    Hawkins
Hayes                     Hutto                     Jackson
Knotts                    Leatherman                Martin
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Peeler
Rankin                    Ritchie                   Ryberg
Setzler                   Smith, J. Verne           Thomas
Verdin                    Waldrep

Total--32

NAYS

Ford                      Glover                    Kuhn
Land                      Leventis                  Malloy
Matthews                  Patterson                 Pinckney
Short

Total--10

The amendment was laid on the table.

Amendment No. P3-14

Senator THOMAS proposed the following Amendment No. P3-14 (560R023.DLT), which was tabled:

Amend the amendment bearing Document Number L:\S-RES\AMEND\560R017.HKL, page 21, as contained in Section 11-51-125, by adding a new subsection to read:

/   (C)   Of the funds authorized pursuant to this act, the University Center located at Greenville Tech shall receive four hundred-fifty thousand dollars annually.     /

Renumber sections to conform.

Amend title to conform.

Senator THOMAS explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 14

The Committee on Finance proposed the following Amendment No. 14 (560R017.HKL), which was later revised as Amendment No. 14A to incorporate the previously adopted amendments:

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

/     SECTION   1.   (A)   This section may be cited as the South Carolina Life Sciences Act.

(B)   For purposes of this section, a 'life sciences facility' means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(1)   3254 Pharmaceutical and Medical Manufacturing;

(2)   334516 Analytical Laboratory Instrument Manufacturing.

(C)(1)   For all purposes of Chapter 10, Title 12 of the 1976 Code, the Enterprise Zone Act of 1995, including all definitions applicable to that chapter:

(a)   Employee relocation expenses that qualify for reimbursement pursuant to Section 12-10-80(C)(3)(f) of the 1976 Code include such expenses associated with a new or expanded life sciences facility investing a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8) of the 1976 Code, and creating at least two hundred new full-time jobs at the project with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled.

(b)   The waiver that may be approved by the Coordinating Council for Economic Development pursuant to Section 12-10-80(D)(2) of the 1976 Code on maximum job development credits that may be claimed also may be approved for a life sciences facility meeting the requirements of subitem (a) of this subsection. In determining whether to approve a waiver for such a facility, the Coordinating Council for Economic Development shall consider the creditworthiness of the business and economic viability of the project, as defined in Section 12-10-30(8) of the 1976 Code.

(2)   The provisions of item (1) of this subsection apply with respect to capital investment made and new jobs created after June 30, 2004 and before July 1, 2008.

(D)   In the case of a taxpayer establishing a life sciences facility meeting the requirements of subsection (C)(1)(a) of this section, the South Carolina Department of Revenue, in its discretion, may enter into an agreement with the taxpayer pursuant to Section 12-6-2320 of the 1976 Code for a period not to exceed fifteen years if the facility otherwise meets the requirements of that section.

SECTION   2.   A.   Section 12-37-930 34. of the 1976 Code, as last amended by Section 3(Q)2, Act 399 of 2000, is further amended to read:

"34.   Use of Clean Rooms ......................................... 10% 15%

A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten fifteen percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems.

35.   Life sciences.................................................. 20%

Includes machinery and equipment used directly in the manufacturing process by a life sciences facility. For purposes of this item, life sciences facility means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development that invests a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8), and creates at least two hundred new full-time jobs at the project with an average cash compensation level of at least one hundred and fifty percent of the annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i)     3254 Pharmaceutical and Medical Manufacturing;

(ii)   334516 Analytical Laboratory Instrument Manufacturing."

B.     In the case of machinery and equipment otherwise eligible for the depreciation allowed pursuant to Section 12-37-930 of the 1976 Code, as amended in subsection A of this section, if the project with which the machinery and equipment is associated is the subject of an inducement agreement between the project sponsor and the county, the initial inducement agreement must have been entered into between these parties after September 1, 2003.

SECTION   3. A.   Section 11-41-20(3) of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"(3)   In order to foster economic development and to encourage the creation of high-paying jobs in the life sciences industry within the State, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half 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 bonds issued to provide infrastructure required for significant economic development projects within the State, including those related to the life sciences industry that create high-paying jobs and meet certain investment criteria."

B.     Items (2) and (3) of Section 11-41-30 of the 1976 Code, as added by Act 254 of 2002, are amended to read:

"(2)(a)   'Economic development project' or 'project' means a project in this State as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested in the project by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(b)   'Project' also includes a life sciences facility in this State defined as a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i)     3254 Pharmaceutical and Medical Manufacturing;

(ii)   334516 Analytical Laboratory Instrument Manufacturing.

With respect to a life sciences facility, the sponsor must invest in the project at least one hundred million dollars and create at the project at least two hundred new jobs with an average annual cash compensation level of at least twice the annual per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.

(c)   To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(3)   'Infrastructure' must relate specifically to, but is not required to be located at, the economic development project and means:

(a)   land acquisition;

(b)   site preparation;

(c)   road and highway improvements;

(d)   rail spur construction;

(e)   water service;

(f)   wastewater treatment;

(g)   employee training which may include equipment used for such purpose;

(h)   environmental mitigation; and

(i)     training and research facilities and the necessary equipment therefor."

C.     Section 11-41-70(2) of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"(2)   a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that each the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:

(a)   an investment in the State at the project of not less than four hundred million dollars and creates creation at the project of no fewer than four hundred new jobs; or

(b)   in the case of a life sciences facility, an investment in the project of not less than one hundred million dollars and creation at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter."

D.   Section 11-41-120 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-120.   All bonds issued under this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, and State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the bonds executed and authenticated, as provided in the resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication."

SECTION   4.   Beginning January 1, 2005, the Department of Revenue annually shall report to the Joint Committee on Taxation the revenue impact of this act, and the Department of Commerce annually shall report the cost and benefit of this act, together with the job creation and capital investment made by qualifying businesses.

SECTION   5.   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, community development corporation, 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.

(13)   'Community development corporation' is as defined in Section 34-43-20(2).

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, community development corporation 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   6.   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   7.   Sections 59-101-1 through 59-101-410 of the 1976 Code are designated as Article 1, General Provisions.

SECTION   8.   Chapter 101, Title 59 of the 1976 Code is amended by adding:

"Article 3
Public Institutions of Higher Learning

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 any other 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.   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   9.   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   10.   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 eight hundred fifty 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)   Of the funds authorized pursuant to this act, public institutions of higher learning as defined in Section 59-103-5, not including research universities, are authorized twelve percent of the total amount authorized under Section 11-51-50. The eligible institutions may only use the funds authorized under this subsection for deferred maintenance projects. The twelve percent authorized for the institutions, not including research universities, must be allocated by the Commission of Higher Education to eligible institutions as follows:

(1)   Sixty five percent of the total twelve percent must allocated based on a reported deferred maintenance needs list from each eligible institutions; and

(2)   Thirty five percent of the total twelve percent must be allocated by FTE student enrollment from the prior academic year at each eligible institution.

The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. The Joint Bond Review Committee and the State Budget and Control Board must approve all projects.

(B)(1)   After the aggregate total of bonds issued pursuant to this chapter, including the bonds authorized pursuant to subsection (A) of this section, equals one half percent of general revenues for the State for the fiscal year next preceeding, all further proceeds of bonds authorized pursuant to this chapter must be authorized as follows:

(a)   Eighty eight percent for the research universities in the manner and for the purposes provided pursuant to this chapter;

(b)   Twelve percent to public institutions of higher learning as defined in Section 59-103-5, not including the research universities, for deferred maintenance projects allocated as follows:

(i)     one-half for the state's ten comprehensive teaching universities distributed among them as provided in item (2) of this subsection; and

(ii)   one-half for the state's two year and technical colleges distributed among them as provided in item (2) of this subsection.

(2)   The Commission on Higher Education shall distribute amounts allocated pursuant to item (1)(b)(i) and (ii) of this subsection among the two categories of eligible institutions as follows:

(a)   thirty five percent in equal shares to each eligible institution; and

(b)   sixty-five percent based on FTE student enrollment from the prior academic year at eligible institutions.

(3)   The Research Centers of Excellence Review board has no jurisdiction over projects funded by bonds issued pursuant to item (1)(b) of this subsection and no matching requirement is imposed for these projects. All projects must be approved by the Joint Bond Review Committee and the State Budget and Control 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 11-51-200.   The research universities while engaging in projects related to this act shall be exempt from the state procurement process but must submit a procurement process to the State Commission on Higher Education to be forwarded to the State Budget and Control Board for approval. These processes shall include provisions for audit and recertification.

Section 11-51-210   No provision of this Act is intended nor shall any provision of this Act be construed to appropriate funds. The intent of the General Assembly is authorizing bonds according to the terms pursuant to this act only."

SECTION   11.   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   12.   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."

SECTION   13.   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.

SECTION   14.   No campus of the University of South Carolina shall be closed without prior authorization of the General Assembly by act or joint resolution.

SECTION   15.   No provision of this Act shall be construed to appropriate funds. The intent of the General Assembly is to authorize bonds only according to the terms of this act.

SECTION   16.   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.

SECTION   17.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

Senator LEATHERMAN moved that the amendment be adopted.

Senator RYBERG spoke on the amendment.

On motion of Senator McCONNELL, Amendment No. 14A was proposed as follows which incorporated the previously adopted amendments:

Amendment No. 14A

The Committee on Finance proposed the following Amendment No. 14A (560R026.HKL), which was adopted:

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

/     SECTION   1.   (A)   This section may be cited as the South Carolina Life Sciences Act.

(B)   For purposes of this section, a "life sciences facility" means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(1)   3254 Pharmaceutical and Medical Manufacturing;

(2)   334516 Analytical Laboratory Instrument Manufacturing.

(C)(1)   For all purposes of Chapter 10, Title 12 of the 1976 Code, the Enterprise Zone Act of 1995, including all definitions applicable to that chapter:

(a)   Employee relocation expenses that qualify for reimbursement pursuant to Section 12-10-80(C)(3)(f) of the 1976 Code include such expenses associated with a new or expanded life sciences facility investing a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8) of the 1976 Code, and creating at least two hundred new full-time jobs at the project with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled.

(b)   The waiver that may be approved by the Coordinating Council for Economic Development pursuant to Section 12-10-80(D)(2) of the 1976 Code on maximum job development credits that may be claimed also may be approved for a life sciences facility meeting the requirements of subitem (a) of this subsection. In determining whether to approve a waiver for such a facility, the Coordinating Council for Economic Development shall consider the creditworthiness of the business and economic viability of the project, as defined in Section 12-10-30(8) of the 1976 Code.

(2)   The provisions of item (1) of this subsection apply with respect to capital investment made and new jobs created after June 30, 2004 and before July 1, 2008.

(D)   In the case of a taxpayer establishing a life sciences facility meeting the requirements of subsection (C)(1)(a) of this section, the South Carolina Department of Revenue, in its discretion, may enter into an agreement with the taxpayer pursuant to Section 12-6-2320 of the 1976 Code for a period not to exceed fifteen years if the facility otherwise meets the requirements of that section.

SECTION   2.   A.   Section 12-37-930 34. of the 1976 Code, as last amended by Section 3(Q)2, Act 399 of 2000, is further amended to read:

"34.   Use of Clean Rooms ......................................... 10% 15%

A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ten fifteen percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems.

35.   Life sciences.................................................. 20%

Includes machinery and equipment used directly in the manufacturing process by a life sciences facility. For purposes of this item, life sciences facility means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development that invests a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8), and creates at least two hundred new full-time jobs at the project with an average cash compensation level of at least one hundred and fifty percent of the annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i)     3254 Pharmaceutical and Medical Manufacturing;

(ii)   334516 Analytical Laboratory Instrument Manufacturing."

B.     In the case of machinery and equipment otherwise eligible for the depreciation allowed pursuant to Section 12-37-930 of the 1976 Code, as amended in subsection A of this section, if the project with which the machinery and equipment is associated is the subject of an inducement agreement between the project sponsor and the county, the initial inducement agreement must have been entered into between these parties after September 1, 2003.

SECTION   3. A.   Section 11-41-20(3) of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"(3)   In order to foster economic development and to encourage the creation of high-paying jobs in the life sciences industry within the State, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half 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 bonds issued to provide infrastructure required for significant economic development projects within the State, including those related to the life sciences industry that create high-paying jobs and meet certain investment criteria."

B.     Items (2) and (3) of Section 11-41-30 of the 1976 Code, as added by Act 254 of 2002, are amended to read:

"(2)(a)   'Economic development project' or 'project' means a project in this State as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested in the project by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(b)   'Project' also includes a life sciences facility in this State defined as a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i)     3254 Pharmaceutical and Medical Manufacturing;

(ii)   334516 Analytical Laboratory Instrument Manufacturing.

With respect to a life sciences facility, the sponsor must invest in the project at least one hundred million dollars and create at the project at least two hundred new jobs with an average annual cash compensation level of at least twice the annual per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.

(c)   To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(3)   'Infrastructure' must relate specifically to, but is not required to be located at, the economic development project and means:

(a)   land acquisition;

(b)   site preparation;

(c)   road and highway improvements;

(d)   rail spur construction;

(e)   water service;

(f)   wastewater treatment;

(g)   employee training which may include equipment used for such purpose;

(h)   environmental mitigation; and

(i)     training and research facilities and the necessary equipment therefor."

C.     Section 11-41-70(2) of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"(2)   a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that each the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:

(a)   an investment in the State at the project of not less than four hundred million dollars and creates creation at the project of no fewer than four hundred new jobs; or

(b)   in the case of a life sciences facility, an investment in the project of not less than one hundred million dollars and creation at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter."

D.   Section 11-41-120 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-120.   All bonds issued under this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, and State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them and each must be attested by the Secretary of State. The delivery of the bonds executed and authenticated, as provided in the resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication."

SECTION   4.   Beginning January 1, 2005, the Department of Revenue annually shall report to the Joint Committee on Taxation the revenue impact of this act, and the Department of Commerce annually shall report the cost and benefit of this act, together with the job creation and capital investment made by qualifying businesses.

SECTION   5.   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, community development corporation, 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.

(13)   'Community development corporation' is as defined in Section 34-43-20(2).

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, community development corporation 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   6.   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   7.   Sections 59-101-1 through 59-101-410 of the 1976 Code are designated as Article 1, General Provisions.

SECTION   8.   Chapter 101, Title 59 of the 1976 Code is amended by adding:

"Article 3
Public Institutions of Higher Learning

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 any other 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.   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   9.   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   10.   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 eight hundred fifty 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)   Of the funds authorized pursuant to this act, public institutions of higher learning as defined in Section 59-103-5, not including research universities, are authorized twelve percent of the total amount authorized under Section 11-51-50. The eligible institutions may only use the funds authorized under this subsection for deferred maintenance projects. The twelve percent authorized for the institutions, not including research universities, must be allocated by the Commission of Higher Education to eligible institutions as follows:

(1)   Sixty five percent of the total twelve percent must allocated based on a reported deferred maintenance needs list from each eligible institutions; and

(2)   Thirty five percent of the total twelve percent must be allocated by FTE student enrollment from the prior academic year at each eligible institution.

The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. The Joint Bond Review Committee and the State Budget and Control Board must approve all projects.

(B)(1)   After the aggregate total of bonds issued pursuant to this chapter, including the bonds authorized pursuant to subsection (A) of this section, equals one half percent of general revenues for the State for the fiscal year next preceeding, all further proceeds of bonds authorized pursuant to this chapter must be authorized as follows:

(a)   Eighty eight percent for the research universities in the manner and for the purposes provided pursuant to this chapter;

(b)   Twelve percent to public institutions of higher learning as defined in Section 59-103-5, not including the research universities, for deferred maintenance projects allocated as follows:

(i)     one-half for the state's ten comprehensive teaching universities distributed among them as provided in item (2) of this subsection; and

(ii)   one-half for the state's two year and technical colleges distributed among them as provided in item (2) of this subsection.

(2)   The Commission on Higher Education shall distribute amounts allocated pursuant to item (1)(b)(i) and (ii) of this subsection among the two categories of eligible institutions as follows:

(a)   thirty five percent in equal shares to each eligible institution; and

(b)   sixty-five percent based on FTE student enrollment from the prior academic year at eligible institutions.

(3)   The Research Centers of Excellence Review board has no jurisdiction over projects funded by bonds issued pursuant to item (1)(b) of this subsection and no matching requirement is imposed for these projects. All projects must be approved by the Joint Bond Review Committee and the State Budget and Control 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 11-51-200.   The research universities while engaging in projects related to this act shall be exempt from the state procurement process but must submit a procurement process to the State Commission on Higher Education to be forwarded to the State Budget and Control Board for approval. These processes shall include provisions for audit and recertification.

Section 11-51-210   No provision of this Act is intended nor shall any provision of this Act be construed to appropriate funds. The intent of the General Assembly is authorizing bonds according to the terms pursuant to this act only."

SECTION   11.   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   12.   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."

SECTION   13.   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.

SECTION   14.   No campus of the University of South Carolina shall be closed without prior authorization of the General Assembly by act or joint resolution.

SECTION   15.   Any public institution of higher education is required to annually report the number of out-of-state undergraduate students in attendance at the respective university for the fall and spring semester. Each university will also be required to report an out-of-state undergraduate student policy and how that policy was enacted by each university. The report will be required to be submitted to the Governor and each member of the General Assembly no later than September 15 of each year for the latest completed school year.   /

SECTION   16.   Section 59-149-50(A) of the 1976 Code is amended to read:

"(A)   To be eligible for a LIFE Scholarship, a student must be either a member of a class graduating a student who has graduated from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student graduating who has graduated from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent, and these. These students must also meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B).

SECTION   17.   Section 59-149-10(B)(2) of the 1976 Code is amended to read:

"(2)   a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which has attained 501(c)(3) tax status and is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of Colleges and Schools; or a public or independent two-year institution which has attained 501(c)(3) tax status. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter."

SECTION   18.   Section 59-149-50(B) of the 1976 Code is amended to read:

"(B)   Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale each year and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60. The cumulative grade point average calculation, for purposes of LIFE scholarship eligibility, must be inclusive of the student's grade point average at all public or independent institutions, as defined in Section 59-149-10(B), attended by the student."

SECTION   19.   No provision of this Act shall be construed to appropriate funds. The intent of the General Assembly is to authorize bonds only according to the terms of this act.

SECTION   20.   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.

SECTION   21.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

The question then was the adoption of Amendment No. 14A.

By a division vote of 35-3, Amendment No. 14A was adopted.

Statement by Senators RYBERG and GREGORY

We voted against the Finance Committee amendment to S.560 that included a smorgasbord of items because it included establishing a four-year program at USC-Sumter.

Amendment No. 19

Senator KNOTTS proposed the following Amendment No. 19 (GJK\ 20895SD04), which was withdrawn:

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

/SECTION   ____.   Chapter 149, Title 59 of the 1976 Code is amended by adding:

"Section 59-149-45.   Life Scholarship funds may be used to pay the cost of attending the Criminal Justice Academy for students enrolled in a four-year public institution of higher learning as defined in Section 59-103-5 who are criminal justice majors in their senior year and who are currently recipients of the Life Scholarship." /

Renumber sections to conform.

Amend title to conform.

Senator KNOTTS explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

On motion of Senator KNOTTS, with unanimous consent, the amendment was withdrawn.

Amendment No. 20

Senator MATTHEWS, LAND, FORD, ANDERSON, JACKSON, PATTERSON, PINCKNEY, and GLOVER proposed the following amendment (FORD-560), which was adopted:

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

/SECTION     .   Chapter 127, Title 59 of the 1976 Code is amended by adding:

"Section 59-127-470.   There is established a committee to study the feasibility and need for a School of Law at the South Carolina State University in Orangeburg. This committee shall consist of nine members as follows:

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

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

(3)   three to be appointed by the Legislative Black Caucus.

These members are to be appointed no later than July 1, 2004. The senior member of the Legislative Black Caucus is to call the fisrt meeting of the committee no later than July 15, 2004, and is to serve as chairman until such time as the committee elects a chairman. This committee is to produce a report to be provided to the members of the General Assembly and the Governor no later than December 31, 2004. The report is to address the following:

(1)   feasibility of having a law school at South Carolina State University;

(2)   need for additional attorneys in the State of South Carolina;

(3)   cost of implementation; and

(4)   impact to the economy."/

Renumber sections to conform.

Amend title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

Amendment No. 21

Senator PINCKNEY proposed the following Amendment No. 21 (PINCKNEY-560), which was withdrawn:

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

/SECTION     .   Section 59-150-370 of the 1976 Code is amended by adding subsection (G) to read:

"(G)   Should sufficient lottery funds not be available, there is automatically appropriated from the general fund of the State whatever amount is necessary to provide all eligible recipients the HOPE Scholarship authorized by this chapter."/

Renumber sections to conform.

Amend title to conform.

Senator PINCKNEY explained the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

On motion of Senator PINCKNEY, with unanimous consent, the amendment was withdrawn.

The Bill was returned to the House with amendments.

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

ORDERED ENROLLED FOR RATIFICATION

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

H. 4508 (Word version) -- Rep. Duncan: A BILL TO AMEND SECTION 7-7-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN LAURENS COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN LAURENS 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 STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

THIRD READING BILLS

The following Bills were read the third time and ordered sent to the House of Representatives:

S. 354 (Word version) -- Senator Hutto: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-23-175, SO AS TO PROVIDE THAT AN OUT-OF-COURT STATEMENT MADE BY A CHILD LESS THAN TWELVE YEARS OF AGE DESCRIBING CERTAIN OFFENSES THAT THE CHILD IS A VICTIM OF OR WITNESS TO IS ADMISSIBLE AS EVIDENCE UNDER CERTAIN CIRCUMSTANCES.

Senator HUTTO explained the Bill.

S. 844 (Word version) -- Senators McConnell, Moore, Alexander, Anderson, Branton, Courson, Cromer, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hayes, Hutto, Knotts, Land, Leatherman, Leventis, Malloy, Martin, Matthews, McGill, Mescher, O'Dell, Patterson, Peeler, Pinckney, Rankin, Ravenel, Reese, Richardson, Ritchie, Setzler, Short, J. Verne Smith, Thomas, Verdin, Waldrep and Hawkins: A BILL TO AMEND SECTION 33-49-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TITLE OF THE RURAL ELECTRIC COOPERATIVE ACT, SO AS TO DELETE THE WORD "RURAL"; TO AMEND SECTION 33-49-20, RELATING TO DEFINITIONS UNDER THE ELECTRIC COOPERATIVES ACT, SO AS TO DELETE THE DEFINITION OF "RURAL AREA" AND ADD DEFINITIONS OF "COMMISSION" AND "CORRIDOR"; TO AMEND ARTICLE 1, CHAPTER 49 OF TITLE 33, BY ADDING SECTION 33-49-140, SO AS TO PROVIDE THAT CERTAIN RIGHTS AND AGREEMENTS ARE NOT AFFECTED BY THIS ACT; TO AMEND SECTION 33-49-210, RELATING TO THE PURPOSE OF ORGANIZATION OF COOPERATIVE NONPROFIT MEMBERSHIP CORPORATIONS, SO AS TO DELETE THE REFERENCE TO RURAL AREAS; TO AMEND SECTION 33-49-250, RELATING TO THE POWERS OF ELECTRIC COOPERATIVES, SO AS TO DELETE A REFERENCE TO RURAL AREAS AND TO PROVIDE THAT ELECTRIC COOPERATIVES HAVE THE RIGHT TO SERVE CERTAIN PREMISES IN AREAS ANNEXED BY MUNICIPALITIES OR NEWLY-INCORPORATED AREAS UNDER CERTAIN CIRCUMSTANCES AND WITH CERTAIN EXCEPTIONS; TO AMEND SECTION 58-27-90, RELATING TO THE CONSTITUTIONAL RIGHTS AND POWERS OF MUNICIPALITIES, SO AS TO APPLY THE SECTION TO THE POWERS OF ELECTRIC COOPERATIVES; TO AMEND SECTION 58-27-100, RELATING TO MUNICIPAL POLICE REGULATIONS AND ORDINANCES, SO AS TO APPLY THE SECTION TO THE POWERS OF ELECTRIC COOPERATIVES; TO AMEND SECTION 58-27-670, RELATING TO ELECTRIC SERVICE IN AN AREA ANNEXED OR INCORPORATED BY A MUNICIPALITY, SO AS TO DELETE ANY REFERENCE TO RURAL OR RURAL AREAS AND TO PROVIDE THAT CERTAIN ELECTRICAL UTILITIES SHALL NOT PROVIDE SERVICE IN CERTAIN AREAS INCORPORATED OR ANNEXED BY A MUNICIPALITY AFTER THE EFFECTIVE DATE OF THIS ACT.

CARRIED OVER

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.

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

S. 589 (Word version) -- Senator Mescher: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-130, SO AS TO PROVIDE THAT THE SOUTH CAROLINA GUARDIAN AD LITEM PROGRAM FOR ABUSED AND NEGLECTED CHILDREN HAS STANDING TO PETITION THE FAMILY COURT, FOR CERTAIN ENUMERATED REASONS, FOR THE REMOVAL OF A GUARDIAN APPOINTED AS AN ADVOCATE FOR A CHILD IN AN ABUSE OR NEGLECT PROCEEDING, AND TO PROVIDE THAT THE COURT MUST APPOINT AN ATTORNEY TO REPRESENT A GUARDIAN WHO IS THE SUBJECT OF A REMOVAL ACTION UPON THE GUARDIAN'S REQUEST.

On motion of Senator FAIR, with unanimous consent, the Bill was carried over.

S. 763 (Word version) -- Senators Ravenel, Knotts and Kuhn: A BILL TO AMEND SECTION 7-5-170, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPLICATIONS FOR VOTER REGISTRATION, SO AS TO DELETE THE REQUIREMENT THAT AN APPLICANT'S SOCIAL SECURITY NUMBER BE PLACED ON THE APPLICATION FORM.

On motion of Senator RYBERG, with unanimous consent, the Bill was carried over.

H. 3677 (Word version) -- Rep. Talley: A BILL TO AMEND SECTIONS 59-1-390, 59-1-448, 59-1-452, AS AMENDED, 59-5-61, 59-5-65, AS AMENDED, 59-5-140, 59-18-920, 59-20-40, AS AMENDED, 59-24-10, AS AMENDED, 59-24-130, 59-39-100, AS AMENDED, 59-54-20, AS AMENDED, 59-54-40, AS AMENDED, 59-54-50, 59-54-60, AND ARTICLE 21, CHAPTER 53, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO VOCATIONAL EDUCATION, SO AS TO CHANGE REFERENCES FROM "VOCATIONAL EDUCATION", "VOCATIONAL TRAINING", "VOCATIONAL PROGRAMS", AND OTHERS TO "CAREER AND TECHNOLOGY EDUCATION", "CAREER AND TECHNOLOGY TRAINING", "CAREER AND TECHNOLOGY PROGRAMS", TO MAKE OTHER CORRESPONDING CHANGES, AND TO MAKE TECHNICAL CORRECTIONS.

On motion of Senator HAYES, with unanimous consent, the Bill was carried over.

S. 658 (Word version) -- Senator Alexander: A BILL TO AMEND SECTION 14-25-15, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPOINTMENT AND TERMS OF MUNICIPAL JUDGES, SO AS TO ESTABLISH A SET TERM OF FOUR YEARS RATHER THAN A TERM SET BY THE COUNCIL OF THE MUNICIPALITY NOT TO EXCEED FOUR YEARS.

On motion of Senator RYBERG, with unanimous consent, the Bill was carried over.

STATEWIDE APPOINTMENTS
Confirmations

Having received a favorable report from the Committee on Judiciary, the following appointments were confirmed in open session:

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 15, 2001, and to expire May 15, 2008

2nd Congressional District

Clarence Davis, 1330 Lady Street, Suite 300, Columbia, S.C. 29201 VICE John R. Jordan (resigned)

Initial Appointment, South Carolina State Commission for Minority Affairs, with term to commence June 30, 2003, and to expire June 30, 2007

6th Congressional District

Rev. Eddie Clay Guess, 218 Prestley Drive, Columbia, S.C. 29203 VICE Albert A. Neal

Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 2003, and to expire October 18, 2007

At-Large

Michelle Thaxton Hardy, 1703 Evans Street, Newberry, S.C. 29108 VICE Johnnie D. Fulton

MOTION ADOPTED

On motion of Senator MOORE, with unanimous consent, the Senate stood adjourned in memory of Mr. Robert Odell Beaver, age 78, of Dillon, S.C., beloved father of former Assistant Sgt-at-Arms Roger W. Beaver.

ADJOURNMENT

At 5:06 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M.

* * *

This web page was last updated on Wednesday, June 24, 2009 at 3:35 P.M.