Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 12:00 P.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT Pro Tempore.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
The Psalmist asks: "Lord, who may enter your tent? Who may worship on Zion, your holy hill? A person who obeys God in everything, and always does what is right, whose words are true and sincere, and who does not slander others." (Psalm 15:1-2, TEV)
Please bow with me in prayer:
O Lord, lead each one of us as we seek to honor You through all that we do and say here in the Senate of South Carolina. May each individual Senator-may everyone associated with this august body-be persons who seek to be upright, righteous, and truthful, even when others are not. It is always an incredible challenge, striving to be all that You want us to be as servants of the people of this State. Forgive us for those moments when we perhaps stumble and use us all in those ways which bring glory to You. And, dear God, bless the survivors in Myanmar following Saturday's devastating cyclone. In Your loving and blessed name we pray, dear Lord.
Amen.
The PRESIDENT Pro Tempore called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following appointments were transmitted by the Honorable Mark C. Sanford:
Reappointment, South Carolina Prisoner of War Commission, with the term to commence July 1, 2007, and to expire July 1, 2011
5th Congressional District:
T. J. Martin, 1255 Filbert Highway, York, SC 29745
Referred to the General Committee.
Initial Appointment, South Carolina State Commission for Minority Affairs, with the term to commence June 30, 2007, and to expire June 30, 2011
4th Congressional District:
Ricardo J. Harris, 7 Summerhall Glen Lane, Simpsonville, SC 29681 VICE Mr. S. Richard Hagins
Referred to the Committee on Judiciary.
The following was received:
Document No. 3134
Agency: Department of Health and Environmental Control
SUBJECT: Standards for Licensing Nursing Homes
Received by Lieutenant Governor January 8, 2008
Referred to Medical Affairs Committee
Legislative Review Expiration May 7, 2008
120 Day Period Tolled
Withdrawn and Resubmitted May 2, 2008
Senator LOURIE introduced Dr. Leo Walker of Columbia, S.C., Doctor of the Day.
At 12:05 P.M., Senator RITCHIE requested a leave of absence beginning at 2:00 P.M. and lasting until 11:00 A.M. tomorrow morning.
The following co-sponsor was added to the respective Bill:
S. 718 (Word version) Sen. Setzler
The following were introduced:
S. 1354 (Word version) -- Senator Ryberg: A SENATE RESOLUTION HONORING AND THANKING AIKEN COUNTY SHERIFF MICHAEL HUNT FOR HIS LEADERSHIP, COMMITMENT TO EDUCATION, PATRIOTISM, AND COMMUNITY SERVICE.
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The Senate Resolution was adopted.
S. 1355 (Word version) -- Senator Ryberg: A SENATE RESOLUTION CONGRATULATING EDWIN KIRKPATRICK ASHE, SR. ON THE CELEBRATION OF HIS EIGHTIETH BIRTHDAY AND WISHING HIM WELL IN THE FUTURE.
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The Senate Resolution was adopted.
S. 1356 (Word version) -- Senator Fair: A SENATE RESOLUTION CONGRATULATING WILLIAM BRADSHAW FOR BEING NAMED 2008 DEALER OF THE YEAR BY THE AMERICAN INTERNATIONAL AUTOMOBILE DEALERS ASSOCIATION.
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The Senate Resolution was adopted.
S. 1357 (Word version) -- Fish, Game and Forestry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SHELLFISH, DESIGNATED AS REGULATION DOCUMENT NUMBER 3160, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
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Read the first time and ordered placed on the Calendar without reference.
S. 1358 (Word version) -- Senator Anderson: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY UPON THE DEATH OF WILLIAM RANDALL "WILLIE" PARKER OF AIKEN COUNTY AND TO EXTEND THEIR DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 1359 (Word version) -- Senators Patterson and Cleary: A SENATE RESOLUTION TO RECOGNIZE AND HONOR SPIRAX SARCO, INCORPORATED OF RICHLAND COUNTY FOR TEN YEARS OF OPERATIONAL EXCELLENCE AND TO CONGRATULATE ITS MANAGEMENT AND EMPLOYEES FOR RECEIVING THE 2007 TOP PLANT AWARD FROM PLANT ENGINEERING MAGAZINE.
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The Senate Resolution was adopted.
H. 4377 (Word version) -- Reps. E. H. Pitts, Bingham, Toole and Viers: A BILL TO AMEND SECTION 20-7-650, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DUTIES OF THE DEPARTMENT OF SOCIAL SERVICES CONCERNING REPORTS AND INVESTIGATIONS OF CHILD ABUSE AND NEGLECT, SO AS TO PROVIDE THAT INFORMATION CONCERNING REPORTS OF CHILD ABUSE AND NEGLECT CLASSIFIED AS UNFOUNDED MUST BE FORWARDED TO THE STATE LAW ENFORCEMENT DIVISION FOR SAFEKEEPING INDEFINITELY, TO BE DISCLOSED ONLY UNDER CERTAIN CIRCUMSTANCES CURRENTLY ALLOWED BY LAW AND TO MANDATE THAT BOTH THE DEPARTMENT AND THE APPROPRIATE LAW ENFORCEMENT AGENCY CONDUCT INVESTIGATIONS AND SHARE INFORMATION COLLECTED WHEN CHILD ABUSE OR NEGLECT IS INDICATED; TO AMEND SECTION 20-7-680, AS AMENDED, RELATING TO THE CENTRAL REGISTRY OF CHILD ABUSE AND NEGLECT, SO AS TO REQUIRE CERTAIN PUBLIC ENTITIES TO REVIEW THE CENTRAL REGISTRY OF CHILD ABUSE AND NEGLECT BEFORE HIRING A POTENTIAL EMPLOYEE AND TO PROVIDE CONSEQUENCES WHEN AN EMPLOYER REQUIRED TO CHECK THE CENTRAL REGISTRY FAILS TO DO SO; TO AMEND SECTION 20-7-690, AS AMENDED, RELATING TO CONFIDENTIALITY OF REPORTS AND RECORDS MAINTAINED BY THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO ALLOW CERTAIN PERSONS, AGENCIES, OR ENTITIES ACCESS TO THE DEPARTMENT'S RECORDS OF INDICATED CHILD ABUSE AND NEGLECT CASES; AND TO REPEAL SECTION 20-7-50 RELATING TO UNLAWFUL CONDUCT TOWARDS A CHILD.
Read the first time and referred to the Committee on Judiciary.
H. 4950 (Word version) -- Rep. Cooper: A BILL TO AMEND TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION, SO AS TO MAKE MISCELLANEOUS CHANGES.
Read the first time and referred to the Committee on Finance.
H. 4984 (Word version) -- Reps. Hagood and G. M. Smith: A BILL TO AMEND SECTION 16-11-330, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ARMED ROBBERY, SO AS TO ALLOW A PERSON UNDER THE AGE OF TWENTY-ONE WHO COMMITS ARMED ROBBERY TO RECEIVE A YOUTHFUL OFFENDER SENTENCE NOT BELOW A MINIMUM OF THREE YEARS; AND TO AMEND SECTION 24-19-10, RELATING TO DEFINITIONS FOR PURPOSES OF THE YOUTHFUL OFFENDER ACT, SO AS TO REVISE THE DEFINITION OF YOUTHFUL OFFENDER TO INCLUDE PERSONS WHO COMMIT A BROADER RANGE OF CRIMINAL OFFENSES.
Read the first time and referred to the Committee on Judiciary.
Senator COURSON from the Committee on Education submitted a favorable report on:
H. 4980 (Word version) -- Reps. Herbkersman, Merrill, E.H. Pitts, Cato, Bedingfield, Haskins, Walker, D.C. Smith, J.R. Smith, Barfield, Crawford, Davenport, Lowe, Rice, Simrill, G.R. Smith, Young, Edge and Mulvaney: A BILL TO AMEND SECTION 59-40-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPROVAL, RENEWAL, REVOCATION, AND TERMINATION OF CHARTERS FOR CHARTER SCHOOLS, SO AS TO INCREASE THE CHARTER PERIOD FROM FIVE TO TEN YEARS.
Ordered for consideration tomorrow.
Senator KNOTTS from the Committee on Invitations polled out H. 5018 favorable:
H. 5018 (Word version) -- Reps. Huggins, Agnew, Alexander, Allen, Anderson, Anthony, Bales, Ballentine, Bannister, Barfield, Battle, Bedingfield, Bingham, Bowen, Bowers, Brady, Branham, Brantley, Breeland, G. Brown, R. Brown, Cato, Chalk, Clemmons, Clyburn, Cobb-Hunter, Coleman, Cooper, Cotty, Crawford, Daning, Dantzler, Davenport, Delleney, Duncan, Edge, Erickson, Frye, Funderburk, Gambrell, Govan, Gullick, Hagood, Haley, Hamilton, Hardwick, Harrell, Harrison, Hart, Harvin, Haskins, Hayes, Herbkersman, Hiott, Hodges, Hosey, Howard, Hutson, Jefferson, Jennings, Kelly, Kennedy, Kirsh, Knight, Leach, Limehouse, Littlejohn, Loftis, Lowe, Lucas, Mack, Mahaffey, McLeod, Merrill, Miller, Mitchell, Moody-Lawrence, Moss, Mulvaney, J.H. Neal, J.M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E.H. Pitts, M.A. Pitts, Rice, Rutherford, Sandifer, Scarborough, Scott, Sellers, Shoopman, Simrill, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, G.R. Smith, J.E. Smith, J.R. Smith, W.D. Smith, Spires, Stavrinakis, Stewart, Talley, Taylor, Thompson, Toole, Umphlett, Vick, Viers, Walker, Weeks, Whipper, White, Whitmire, Williams, Witherspoon and Young: A CONCURRENT RESOLUTION TO DECLARE APRIL 2008 AS "FAIR HOUSING MONTH" IN SOUTH CAROLINA AND TO RECOGNIZE AND SUPPORT "FAIR HOUSING MONTH" IN OUR STATE.
Knotts Alexander Patterson O'Dell McGill Reese Elliott Ford Verdin Campsen Cromer
Ordered for consideration tomorrow.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bills and Joint Resolutions were read the third time and, having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:
H. 3816 (Word version) -- Reps. G.M. Smith, Weeks and G. Brown: A BILL TO AMEND SECTION 15-41-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY EXEMPT FROM ATTACHMENT, LEVY, AND SALE, SO AS TO INCREASE THE AMOUNT OF DEBTOR'S INTEREST IN CERTAIN DELINEATED PROPERTIES THAT ARE EXEMPT FROM ATTACHMENT, LEVY, AND SALE UNDER ORDER OF A COURT OR AS A RESULT OF A BANKRUPTCY PROCEEDING.
H. 4926 (Word version) -- Rep. Funderburk: A BILL TO AMEND SECTION 7-7-340, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN KERSHAW COUNTY, SO AS TO REDESIGNATE A MAP NUMBER ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.
H. 5015 (Word version) -- Reps. Gambrell, Cooper, Bowen, Thompson, Agnew and White: A BILL TO AMEND SECTION 7-7-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN ANDERSON COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN ANDERSON COUNTY, TO 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.
H. 3395 (Word version) -- Reps. Funderburk, Toole, Stavrinakis and Sandifer: A JOINT RESOLUTION TO PROVIDE THAT THE SOUTH CAROLINA ENERGY OFFICE AND THE OFFICE OF REGULATORY STAFF SHALL PROVIDE A REPORT TO THE GENERAL ASSEMBLY NOT LATER THAN OCTOBER 1, 2007, THAT RECOMMENDS PROCESS AND PROCEDURES FOR ESTABLISHING NET METERING PROGRAMS AT ALL DISTRIBUTION ELECTRIC UTILITIES IN SOUTH CAROLINA, INCLUDING INVESTOR-OWNED ELECTRIC UTILITIES, ELECTRIC COOPERATIVES, MUNICIPAL-OWNED ELECTRIC UTILITIES, AND THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY.
H. 5030 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO TANNING FACILITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 3114, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
The following House Bill was read the third time and ordered returned to the House with amendments:
H. 4437 (Word version) -- Rep. G.M. Smith: A BILL TO AMEND SECTION 16-15-410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSE OF THIRD DEGREE SEXUAL EXPLOITATION OF A MINOR, SO AS TO PROVIDE AN EXCEPTION FOR CERTAIN STATE AND LAW ENFORCEMENT PERSONNEL WHO ARE IN POSSESSION OF MATERIAL CONTAINING VISUAL REPRESENTATIONS OF MINORS ENGAGING IN SEXUAL ACTIVITY DURING THE COURSE OF AN INVESTIGATION.
The following Bills and Joint Resolutions, having been read the second time, were ordered placed on the Third Reading Calendar:
H. 3803 (Word version) -- Reps. Haley and Kirsh: A BILL TO AMEND SECTION 40-13-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF THE PROFESSION OF COSMETOLOGY, SO AS TO DELETE REFERENCES TO CERTAIN PRACTICES THAT CONSTITUTE THE PRACTICE OF COSMETOLOGY.
S. 1095 (Word version) -- Senator Hayes: A BILL TO AMEND SECTION 25-1-380, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AN ASSISTANT ADJUTANT GENERAL FOR THE ARMY, SO AS TO INCREASE THE NUMBER OF ASSISTANT ADJUTANT GENERALS TO TWO.
S. 1115 (Word version) -- Senators Leventis, Land, Ford, Anderson, Hutto, Malloy, Matthews, Williams, Peeler, Short, Sheheen, Drummond, Jackson, Ceips and Lourie: A BILL TO AMEND SECTION 59-112-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO IN-STATE TUITION AT PUBLIC COLLEGES AND UNIVERSITIES FOR MILITARY PERSONNEL AND THEIR DEPENDENTS, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH THESE PERSONNEL AND THEIR DEPENDENTS ARE ELIGIBLE TO RECEIVE AND RETAIN IN-STATE TUITION RATES.
H. 4408 (Word version) -- Reps. Skelton, Harrell, Walker and Bedingfield: A BILL TO AMEND SECTIONS 59-104-25 AND 59-149-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PALMETTO FELLOWS SCHOLARSHIP STIPEND FOR STUDENTS MAJORING IN MATHEMATICS OR SCIENCES AND THE LIFE SCHOLARSHIP STIPEND FOR STUDENTS MAJORING IN MATHEMATICS OR SCIENCES, RESPECTIVELY, BOTH SO AS TO REVISE THE COURSE REQUIREMENTS NECESSARY TO RECEIVE THE STIPEND DURING A STUDENT'S FRESHMAN YEAR.
H. 4534 (Word version) -- Reps. M.A. Pitts, Owens, Simrill, Davenport, Hosey, Leach, McLeod, Moss, Phillips, Thompson and Loftis: A BILL TO AMEND SECTION 50-3-410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROCEDURES FOR MAKING ARRESTS, SO AS TO FURTHER PROVIDE FOR THESE PROCEDURES, THE USE OF SUMMONS, AND THE RECEIPT OF MONETARY BONDS.
S. 1351 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO DRIVER SCHOOLS AND TRUCK DRIVER TRAINING SCHOOLS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3125, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
S. 1352 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION, RELATING TO ELIGIBLE TELECOMMUNICATIONS CARRIER, DESIGNATED AS REGULATION DOCUMENT NUMBER 3124, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
S. 1353 (Word version) -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION, RELATING TO ELECTRIC SYSTEMS AND GAS SYSTEMS, DESIGNATED AS REGULATION DOCUMENT NUMBER 3128, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
H. 5021 (Word version) -- Rep. Duncan: A BILL TO AMEND SECTION 50-11-1920, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE UNDER CERTAIN CONDITIONS OF EXOTIC FARM-RAISED VENISON AND PENALTIES FOR VIOLATING THE PROVISIONS OF THIS SECTION, SO AS TO PROVIDE THAT THE PROHIBITIONS OF THIS SECTION DO NOT APPLY TO THE SALE OR PURCHASE OF PROCESSED PET FOODS OR PET TREATS CONTAINING EXOTIC FARM-RAISED VENISON, AND TO PROVIDE FOR CERTAIN REGISTRATION AND LABELING REQUIREMENTS OF THIS EXCEPTION.
H. 4952 (Word version) -- Rep. M.A. Pitts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-96 SO AS TO PROHIBIT THE INTRODUCTION OF A FERTILITY CONTROL AGENT OR CHEMICAL SUBSTANCE INTO WILDLIFE, TO AUTHORIZE EXCEPTIONS INCLUDING THOSE MADE FOR SPECIFIED PURPOSES UPON PERMIT OF THE DEPARTMENT, AND TO PROVIDE PENALTIES FOR VIOLATIONS.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Fish, Game and Forestry.
The Committee on Fish, Game and Forestry proposed the following amendment (GJK\20694SD08), which was adopted:
Amend the bill, as and if amended, in Section 50-11-96 of the 1976 Code, as contained in SECTION 1, by adding a new subsection (G) to read:
/ (G) The Department of Natural Resources is authorized to promulgate regulations to implement and regulate the provisions of this section./
Renumber sections to conform.
Amend title to conform.
Senator GREGORY explained the committee amendment.
The committee amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
S. 932 (Word version) -- Senators Grooms, Elliott, Fair and Knotts: A BILL TO AMEND SECTION 56-1-5 OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF MOTOR VEHICLES, BY ADDING AN APPROPRIATELY DESIGNATED NEW ITEM TO PROVIDE THAT ALL SERVICES, PUBLICATIONS, PRINTED, AUDIO, AND VIDEO MATERIALS AND TESTS ADMINISTERED BY THE DEPARTMENT OF MOTOR VEHICLES MUST BE PROVIDED IN AN ENGLISH-ONLY FORMAT UNLESS OTHERWISE REQUIRED BY FEDERAL LAW OR REGULATION.
Senator GROOMS explained the Bill.
Senator LAND objected to further consideration of the Bill.
S. 862 (Word version) -- Senators Thomas, Leventis, McGill and Knotts: A BILL TO AMEND SECTION 47-3-630, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PENALTIES FOR INJURING A POLICE DOG OR HORSE, SO AS TO INCREASE THE PENALTY FOR TORTURING, MUTILATING, INJURING, DISABLING, POISONING, OR KILLING A POLICE DOG OR HORSE.
On motion of Senator HUTTO, the Bill was carried over.
H. 4713 (Word version) -- Rep. White: A BILL TO AMEND SECTION 25-11-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE VETERANS' CEMETERIES AND QUALIFICATIONS TO RECEIVE A PLOT IN A STATE VETERANS' CEMETERY, SO AS TO REDUCE FROM TWENTY YEARS TO EIGHT YEARS THE TIME A VETERAN MUST HAVE BEEN A RESIDENT OF THIS STATE IN ORDER TO MEET ONE OF THE QUALIFICATIONS.
Senator ALEXANDER explained the Bill.
On motion of Senator ALEXANDER the Bill was carried over.
THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.
S. 718 (Word version) -- Senators McConnell and Grooms: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 7, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE REQUIREMENT FOR THE STATE AND ITS POLITICAL SUBDIVISIONS TO HAVE BUDGET PROCESSES DESIGNED TO KEEP REVENUES AND EXPENDITURES IN BALANCE, THE LIMITATION ON STATE APPROPRIATIONS, AND THE LIMITATIONS ON STATE EMPLOYEES, SO AS TO DELETE THE EXISTING STATE SPENDING LIMITATION AND REQUIRE THE GENERAL ASSEMBLY TO REPLACE IT BY A LAW PROVIDING A LIMIT ON STATE SPENDING FOR A FISCAL YEAR THAT EQUALS THE TOTAL OF STATE APPROPRIATIONS IN THE PRIOR YEAR INCREASED BY THE TOTAL PERCENTAGE OF INCREASES IN STATE PERSONAL INCOME AND STATE POPULATION IN THE MOST RECENT YEAR FOR WHICH THIS INFORMATION IS AVAILABLE AND PROVIDE THAT THE GENERAL ASSEMBLY IN ENACTING THIS LIMIT SHALL DEFINE THE APPROPRIATIONS TO WHICH THE LIMIT APPLIES, AND THE METHOD OF AND SOURCES FOR CALCULATING THE LIMIT.
Senator MARTIN moved that the Resolution be made a Special Order.
The Resolution was made a Special Order.
S. 1220 (Word version) -- Senators McConnell, Gregory, Ford, Martin, Ritchie, Sheheen, Lourie, Campbell and Setzler: A BILL TO AMEND SECTION 11-11-410, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO IMPLEMENTATION OF THE LIMIT ON STATE SPENDING IMPOSED PURSUANT TO SECTION 7(C), ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, SO AS TO REVISE THIS LIMIT BY IMPOSING AN ANNUAL LIMIT ON THE APPROPRIATION OF STATE GENERAL FUND REVENUES BY ADJUSTING SUCH REVENUES BY A ROLLING TEN-YEAR AVERAGE IN ANNUAL CHANGES IN GENERAL FUND REVENUES AND THE CREATION OF A SEPARATE BUDGET STABILIZATION FUND IN THE STATE TREASURY TO WHICH MUST BE CREDITED ALL GENERAL FUND REVENUES IN EXCESS OF THE ANNUAL LIMIT, THE REVENUES OF WHICH MUCH FIRST BE USED TO STABILIZE GENERAL FUND REVENUES AVAILABLE FOR APPROPRIATION, TO PROVIDE FOR SUSPENSION OF THIS APPROPRIATIONS LIMIT IN EMERGENCIES AND DEFINE EMERGENCIES, TO PROVIDE THAT A CASH BALANCE IN THE BUDGET STABILIZATION FUND IN EXCESS OF FIFTEEN PERCENT OF GENERAL FUND REVENUES OF THE MOST RECENT COMPLETED FISCAL YEAR MAY BE APPROPRIATED IN SEPARATE LEGISLATION FOR VARIOUS NONRECURRING PURPOSES, AND TO DEFINE SURPLUS GENERAL FUND REVENUES.
Senator MARTIN moved that the Bill be made a Special Order.
The Bill was made a Special Order.
H. 4929 (Word version) -- Reps. Haley, Toole, Ballentine, Bingham, Frye, Huggins, McLeod, Ott and Spires: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF PLATT SPRINGS ROAD IN LEXINGTON COUNTY FROM ITS INTERSECTION WITH SOUTH CAROLINA HIGHWAY 6 TO ITS INTERSECTION WITH KYZER ROAD THE "LANCE CORPORAL JOSHUA L. TORRENCE MEMORIAL HIGHWAY" AND ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS PORTION OF HIGHWAY THAT CONTAIN THE WORDS "LANCE CORPORAL JOSHUA L. TORRENCE MEMORIAL HIGHWAY".
Senator KNOTTS moved that the Concurrent Resolution be recalled from the Committee on Transportation.
The Resolution was recalled from the Committee on Transportation.
Senator KNOTTS asked unanimous consent to take the Concurrent Resolution up for immediate consideration.
There was no objection.
The Concurrent Resolution was adopted, ordered returned to the House.
On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.
HAVING DISPENSED WITH THE MOTION PERIOD, THE SENATE PROCEEDED TO A CONSIDERATION OF BILLS AND RESOLUTIONS RETURNED FROM THE HOUSE.
S. 71 (Word version) -- Senators Ryberg, Bryant, Cromer, Richardson, Fair and Ford: A BILL TO AMEND SECTION 44-76-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO IMMUNITY FROM CIVIL LIABILITY FOR PERSONS ADMINISTERING, USING, ACQUIRING, OR PRESCRIBING AN AUTOMATED EXTERNAL DEFIBRILLATOR (AED), TO PROVIDE SUCH IMMUNITY FOR PERSONS PROVIDING TRAINING FOR CARDIOPULMONARY RESUSCITATION THAT INCLUDES TRAINING IN THE USE OF AN AED.
The House returned the Bill with amendments.
On motion of Senator RYBERG, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.
H. 3567 (Word version) -- Reps. Rice, Gullick, Cotty and Agnew: A BILL TO AMEND SECTION 12-21-620, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TAXATION ON CIGARETTES, SO AS TO INCREASE THE AMOUNT OF TAX ON EACH CIGARETTE FROM THREE AND ONE-HALF MILLS TO TWO CENTS; TO ADD SECTION 44-6-157 SO AS TO PROVIDE THAT THE REVENUE GENERATED FROM THE TAXATION ON CIGARETTES MUST BE USED TO EXPAND MEDICAID COVERAGE TO CHILDREN EIGHTEEN YEARS OF AGE AND YOUNGER WHOSE FAMILY INCOME DOES NOT EXCEED TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL; AND TO CREATE THE HEALTH CARE TRUST FUND TO PROVIDE MEDICAID BENEFITS TO INDIVIDUALS WHOSE FAMILY INCOME DOES NOT EXCEED ONE HUNDRED PERCENT OF THE FEDERAL POVERTY LEVEL AND WHO ARE UNINSURED AND TO PROVIDE THAT REVENUE IN EXCESS OF THE CHILDREN'S MEDICAID COVERAGE FROM THE CIGARETTE TAX MUST BE CREDITED TO THE HEALTH CARE TRUST FUND; AND TO AMEND SECTION 12-36-910, AS AMENDED, RELATING TO SALES TAXES GENERALLY, SO AS TO PROVIDE THAT AS OF JULY 1, 2009, THE THREE PERCENT SALES TAX IS ELIMINATED ON UNPREPARED FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE FOR CERTAIN GENERAL FUND TRANSFERS TO THE EDUCATION IMPROVEMENT ACT FUND FOR EACH FISCAL YEAR TO OFFSET EIA REVENUES LOST AS A RESULT OF THE LOSS OF SALES TAX ON THE SALE OF UNPREPARED FOOD, AND TO REDUCE THE SALES TAX ON UNPREPARED FOOD TO TWO PERCENT AS OF JULY 1, 2007, AND ONE PERCENT AS OF JULY 1, 2008.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment of May 16, 2007, proposed by the Committee on Finance.
At 12:44 P.M., Senator GREGORY assumed the Chair.
Senator ALEXANDER, subcommittee chairman, was recognized to explain the Bill and the amendment proposed by the Committee on Finance.
On motion of Senator ALEXANDER, with unanimous consent, the amendment proposed by the Committee on Finance on May 16, 2007, was withdrawn:
The Committee on Finance proposed the following amendment (3567R024.HKL), which was withdrawn:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-625. (A) Effective July 1, 2008, there is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to two and one-half cents on each cigarette.
(B) Notwithstanding another provision of law providing for the crediting of the revenues of license or other taxes, the revenue of the surtax imposed pursuant to this section must be credited to the Medicaid Trust Fund.
(C) For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620.
(D) For purposes of this section, 'cigarette' means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1).
(E) On July 1, 2009, and every year thereafter, the Department of Revenue shall adjust the additional tax imposed pursuant to this section by the average percentage increase for the last three calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors."
SECTION 2. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-220. (A) There is created in the State Treasury the Medicaid Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. Except as otherwise provided in this section, the State Treasurer shall transfer the funds to the Department of Health and Human Services quarterly.
(B) There is created in the State Treasury the Smoking Prevention and Cessation Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. In each fiscal year, the first five million dollars credited to the Medicaid Trust Fund must be transferred to the Smoking Prevention and Cessation Trust Fund. The funds shall be transferred to the Department of Health and Environmental Control to administer a statewide smoking prevention and cessation program."
SECTION 3. Section 12-21-620 of the 1976 Code is amended to read:
"Section 12-21-620. (A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:
(1) upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;
(2) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.
Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.
(B) On July 1, 2009, and every year thereafter, the Department of Revenue shall adjust the tax imposed pursuant to subsection (A)(1) by the average percentage increase for the last three completed calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors.
(C) As used in this section, 'cigarette' means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection."
SECTION 4. (A) From the funds transferred to the Department of Health and Human Services from the Medicaid Trust Fund pursuant to Section 11-11-220, the department shall:
(1) set the Low Income Family Program at one hundred percent of the federal poverty level;
(2) set the Aged, Blind, and Disabled Program at one hundred thirty-five percent of the federal poverty level; and
(3) set the State Children's Health Insurance Program at two hundred fifty percent of the federal poverty level.
(B) The programs set forth in subsection (A) are in order of priority. The department may not begin funding a lower prioritized program until the higher prioritized program is fully implemented.
(C) For purposes of this section, 'federal poverty level' means the federal poverty level guidelines published annually by the United States Department of Health and Human Services
SECTION 5. In April, May, and June of 2008, neither a wholesaler, distributor, or a retailer of cigarettes may purchase more cigarettes in any one month in an amount that exceeds one hundred ten percent of the average monthly amount of cigarettes purchased in the same three months of the previous calendar year. In examining aggregate business license tax revenue data, if the Department of Revenue determines that the revenue collected in April, May, and June of 2008 exceeds one hundred ten percent of the amount collected during the same three months of the previous calendar year, the business license tax audit division of the department shall conduct an audit of random wholesalers, distributors, and retailers to ensure compliance with the requirements of this section. Any violation of this section shall result in a civil fine equal to five times the amount of tax owed on the purchased cigarettes that caused the wholesaler, distributor, or retailer to exceed one hundred ten percent of the amount purchased in the same three months of the previous calendar year.
SECTION 6. There is created the Study Committee on Healthcare Access and Affordability. The committee shall review and make recommendations regarding the state's overall health status, the price of healthcare, the use of Medicare and Medicaid, the promotion of public and private healthcare partnerships, preventative care, the establishment of a high risk healthcare pool, the necessity of a reinsurance program, how to maximize coverage while controlling costs and providing quality care, and how to improve the state's overall health and healthcare affordability.
(B) The study committee shall be composed of nine members. The President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor shall each appoint three members, one of which must be upon the recommendation of the Health Sciences South Carolina collaborative. Each member must have a background of substantial duration or expertise in at least one of the following:
(1) healthcare issues;
(2) business issues;
(3) economic issues;
(4) consumer issues;
(5) insurance issues;
(6) academic issues; or
(7) governmental issues.
(C) The study committee shall make a report of its findings and recommendations to the General Assembly no later than January 1, 2010, at which time the study committee must be dissolved.
SECTION 7. Except where otherwise stated, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
The committee amendment was withdrawn.
Senator LAND spoke on the Bill.
The question then was the adoption of the amendment proposed by the Committee on Finance of April 3, 2008.
At 1:29 P.M., Senator McCONNELL assumed the Chair.
Senator HUTTO proposed the following Amendment P-1 (3567R035.CBH), which was tabled:
Amend the committee amendment, as and if amended, by striking the amendment in its entirety and inserting:
/ SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-625. (A) Effective July 1, 2008, there is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to four and sixty-five hundredths cents on each cigarette.
(B) Notwithstanding another provision of law providing for the crediting of the revenues of license or other taxes, the revenue of the surtax imposed pursuant to this section must be credited to the Medicaid Trust Fund.
(C) For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620.
(D) For purposes of this section, 'cigarette' means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1).
(E) On July 1, 2009, and every year thereafter, the Department of Revenue shall adjust the additional tax imposed pursuant to this section by the average percentage increase for the last three calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors."
SECTION 2. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-220. (A) There is created in the State Treasury the Medicaid Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. Except as otherwise provided in this section, the State Treasurer shall transfer the funds to the Department of Health and Human Services quarterly.
(B) There is created in the State Treasury the Smoking Prevention and Cessation Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. In each fiscal year, the first five million dollars credited to the Medicaid Trust Fund must be transferred to the Smoking Prevention and Cessation Trust Fund. The funds shall be transferred to the Department of Health and Environmental Control to administer a statewide smoking prevention and cessation program."
SECTION 3. Section 12-21-620 of the 1976 Code is amended to read:
"Section 12-21-620. (A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:
(1) upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;
(2) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.
Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.
(B) On July 1, 2009, and every year thereafter, the Department of Revenue shall adjust the tax imposed pursuant to subsection (A)(1) by the average percentage increase for the last three completed calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors.
(C) As used in this section, 'cigarette' means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection."
SECTION 4. (A) From the funds transferred to the Department of Health and Human Services from the Medicaid Trust Fund pursuant to Section 11-11-220, the department shall:
(1) set the Low Income Family Program at one hundred percent of the federal poverty level;
(2) set the Aged, Blind, and Disabled Program at one hundred thirty-five percent of the federal poverty level; and
(3) set the State Children's Health Insurance Program at three hundred percent of the federal poverty level.
(B) The programs set forth in subsection (A) are in order of priority. The department may not begin funding a lower prioritized program until the higher prioritized program is fully implemented. If all programs are fully funded, the department shall expend the remaining funds to re-set the Low Income Family Program at the highest percentage of the federal poverty level as funds allow.
(C) For purposes of this section, 'federal poverty level' means the federal poverty level guidelines published annually by the United States Department of Health and Human Services.
SECTION 5. In April, May, and June of 2008, neither a wholesaler, distributor, or a retailer of cigarettes may purchase more cigarettes in any one month in an amount that exceeds one hundred ten percent of the average monthly amount of cigarettes purchased in the same three months of the previous calendar year. In examining aggregate business license tax revenue data, if the Department of Revenue determines that the revenue collected in April, May, and June of 2008 exceeds one hundred ten percent of the amount collected during the same three months of the previous calendar year, the business license tax audit division of the department shall conduct an audit of random wholesalers, distributors, and retailers to ensure compliance with the requirements of this section. Any violation of this section shall result in a civil fine equal to five times the amount of tax owed on the purchased cigarettes that caused the wholesaler, distributor, or retailer to exceed one hundred ten percent of the amount purchased in the same three months of the previous calendar year.
SECTION 6. (A) There is created the Study Committee on Healthcare Access and Affordability. The committee shall review and make recommendations regarding the state's overall health status, the price of healthcare, the use of Medicare and Medicaid, the promotion of public and private healthcare partnerships, preventative care, the establishment of a high risk healthcare pool, the necessity of a reinsurance program, how to maximize coverage while controlling costs and providing quality care, and how to improve the state's overall health and healthcare affordability.
(B) The study committee shall be composed of nine members. The President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor shall each appoint three members, one of which must be upon the recommendation of the Health Sciences South Carolina collaborative. Each member must have a background of substantial duration or expertise in at least one of the following:
(1) healthcare issues;
(2) business issues;
(3) economic issues;
(4) consumer issues;
(5) insurance issues;
(6) academic issues; or
(7) governmental issues.
(C) The study committee shall make a report of its findings and recommendations to the General Assembly no later than January 1, 2010, at which time the study committee must be dissolved.
SECTION 7. Except where otherwise stated, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Senator HUTTO explained the amendment.
Senator ALEXANDER spoke on the amendment.
Senator ALEXANDER moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Anderson Campbell Campsen Ceips Cleary Courson Cromer Elliott Fair * Grooms Hawkins Hayes Knotts Leatherman Martin Massey McConnell McGill O'Dell Peeler Rankin Ritchie Ryberg Scott Setzler Sheheen Thomas Vaughn Verdin Williams
Drummond Gregory Hutto Jackson Land Leventis Lourie Malloy Matthews Patterson Pinckney Reese Short
Bryant
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was laid on the table.
Senators ALEXANDER, LAND, HAYES and LOURIE proposed the following Amendment P-2 (3567R033.TCA), which was adopted:
Amend the committee amendment, as and if amended, by striking the amendment in its entirety and inserting:
/ SECTION 1. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:
"Section 12-21-625. (A) Effective July 1, 2008, there is imposed a surtax on cigarettes subject to the tax imposed pursuant to Section 12-21-620(1) in an amount equal to two and one-half cents on each cigarette.
(B) Notwithstanding another provision of law providing for the crediting of the revenues of license or other taxes, the revenue of the surtax imposed pursuant to this section must be credited as follows:
(1) each year, five million dollars to the Smoking Prevention and Cessation Trust Fund created pursuant to Section 11-11-220(A); and
(2) of the remaining annual revenue, one-half to the Medicaid Trust Fund created pursuant to Section 11-11-220(B) and one-half to the Healthcare Trust Fund created pursuant to Section 11-11-220(C).
(C) For all purposes of reporting, payment, collection, and enforcement, the surtax imposed by this section is deemed to be imposed pursuant to Section 12-21-620.
(D) For purposes of this section, "cigarette" means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1).
(E) On January 1, 2010, and every year thereafter, the Department of Revenue shall adjust the additional tax imposed pursuant to this section by the average percentage increase for the last three calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors."
SECTION 2. Section 12-21-620 of the 1976 Code is amended to read:
"Section 12-21-620. (A) There shall be levied, assessed, collected, and paid in respect to the articles containing tobacco enumerated in this section the following amounts:
(1) upon all cigarettes made of tobacco or any substitute for tobacco, three and one-half mills on each cigarette;
(2) upon all tobacco products, as defined in Section 12-21-800, five percent of the manufacturer's price.
Manufacturer's price as used in this section is the established price at which a manufacturer sells to a wholesaler.
(B) On January 1, 2010, and every year thereafter, the Department of Revenue shall adjust the tax imposed pursuant to this section by the average percentage increase for the last three calendar years, if any, in the medical services component of the Consumer Price Index for All Urban Consumers, as certified by the Board of Economic of Advisors.
(C) As used in this section, "cigarette" means:
(1) any roll for smoking containing tobacco wrapped in paper or in any substance other than a tobacco leaf; or
(2) any roll for smoking containing tobacco, wrapped in any substance, weighing three pounds per thousand or less, however labeled or named, which because of its appearance, size, type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (1) of this subsection."
SECTION 3. Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:
"Section 11-11-220. (A) There is created in the State Treasury the Smoking Prevention and Cessation Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. The trust fund must transfer five million dollars annually to the Department of Health and Environmental Control to administer a statewide smoking prevention and cessation program.
(B) There is created in the State Treasury the Medicaid Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. Except as otherwise provided in this section, the State Treasurer shall transfer the funds to the Department of Health and Human Services quarterly to provide Medicaid services. The funds are supplementary and may not be used to replace general funds appropriated by the General Assembly or other funds used to support Medicaid.
(C) There is created in the State Treasury the Healthcare Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings and interest on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. The trust fund must transfer the appropriate amount of money annually to the Department of Insurance to fund the Palmetto Healthcare Premium Assistance Program.
(D) There is created in the State Treasury the Palmetto Healthcare Safety Net Trust Fund. This fund is separate and distinct from the general fund of the State and all other funds. Earnings on this fund must be credited to it and any balance in this fund at the end of a fiscal year carries forward in the fund in the succeeding fiscal year. Beginning July 1, 2010, and every July first thereafter, the State Treasurer shall make a transfer from the Healthcare Trust Fund to the Palmetto Healthcare Safety Net Fund in an amount determined by the Board of Economic Advisors. The Board of Economic Advisors shall determine the amount to be transferred by calculating the difference between ninety percent of the balance of the fund on July first, excluding any unexpended funds pursuant to Section 38-62-50(B), less the amount of projected premium assistance payments in the following twelve months."
SECTION 4. (A) Beginning no later than March 1, 2009, and with appropriate federal approvals, the Department of Health and Human Services shall use the transfers from the Medicaid Trust Fund to provide Medicaid services to low income families with incomes above fifty percent but no more than one hundred percent of the prevailing federal poverty level. If a balance of funds remains in the Medicaid Trust Fund once the Department of Health and Human Services has offered Medicaid services to low income families up to one hundred percent of the prevailing federal poverty level, then the balance of funds may be used to set the State Children's Health Insurance Program at two hundred fifty percent of the federal poverty level or set the Aged, Blind, and Disabled Program at one hundred thirty-five percent of the federal poverty level. The Department of Health and Human Services may charge the Medicaid Trust Fund a quarterly administrative fee equal to an amount not to exceed one percent of the amount credited to the Medicaid Trust Fund in the previous quarter.
(B) The Department of Health and Human Services must provide an annual report on the Medicaid Trust Fund to the Chairman of the Senate Finance Committee, the Chairman of the House Ways and Means Committee, and the Study Committee on Healthcare Access and Affordability. The report shall provide, at a minimum, a general description of the services provided and populations served, the number of people served, the average cost per person, the additional administrative costs of the programs funded by Medicaid Trust Fund, and a three-year forecast of the utilization of the fund.
SECTION 5. Title 38 of the 1976 Code is amended by adding:
Palmetto Healthcare Premium Assistance Program
Section 38-62-10. This chapter may be cited as the 'Palmetto Healthcare Premium Assistance Program'.
Section 38-62-20. For the purposes of this section:
(A) 'Department' means the South Carolina Department of Insurance.
(B) 'Federal poverty level' means the federal poverty level guidelines published annually by the United States Department of Health and Human Services.
(C) 'Health insurer' means an insurance company, a health maintenance organization, a community health plan approved by the Department of Health and Human Services, and any other entity providing health insurance coverage, as defined in Section 38-71-670(6), which is licensed to engage in the business of insurance in this State and which is subject to state insurance regulation; and Medicaid managed care organizations qualified to offer services through the Department of Health and Human Service's Healthy Connections Program.
(D) 'Healthcare Trust Fund' means the Health Care Trust Fund created pursuant to Section 11-11-220(C).
(E) 'Participant' means an individual who has been issued a certificate of eligibility by the Department of Insurance and has purchased a qualifying health insurance plan within ninety days of the date of issue of the certificate.
(F) 'Program' means the Palmetto Healthcare Premium Assistance Program.
(G) 'Qualifying health plan' means any health insurance policy or health benefit plan offered as part of a health insurance policy or plan offered by a health insurer that provides health insurance coverage, as defined in Section 38-71-670(6), the South Carolina HealthNet Program, or a community health plan approved by the Department of Health and Human Services, and has a minimum actuarial value of three thousand dollars adjusted for age and gender.
(H) 'Small employer' means, in connection with a health insurance plan with respect to a calendar year and a plan year, any person, firm, corporation, partnership, association, or employer, as defined in Section 3(5) of the Employee Retirement Income Security Act of 1974, that is actively engaged in business that, on at least fifty percent of its working days during the preceding calendar year, employed no more than twenty-five eligible employees or employed an average of not more than twenty-five employees on business days during the preceding calendar year, and who employs at least two employees on the first day of the plan year.
Section 38-62-30. Beginning on July 1, 2009, individuals meeting the eligibility requirements of this chapter may receive an average of two thousand dollars of premium assistance actuarially adjusted for age and gender for the purchase of a qualifying health insurance plan. In no case, shall the premium assistance exceed the actual cost of the individual's qualifying health plan.
Section 38-62-40. In order to be entitled to the premium assistance, an individual must receive a certificate of eligibility from the Department of Insurance. The department shall develop the form and manner for a person to apply to the department for a certificate and shall make the form readily available to health insurance agents and other persons authorized to sell health insurance in this State. For purposes of determining the taxpayer's federal poverty level, the department, minimally, shall require a copy of the applicant's state income tax return for the prior year and the applicant's W-2 form. The department shall also require the applicant to sign a verification under oath, subject to penalties of perjury, that the applicant meets the eligibility criteria for the program pursuant to Section 38-62-50. The department shall implement appropriate safeguards and use available existing resources to verify an applicant's uninsured status. The department shall pursue the recoupment of any premium assistance provided to an individual filing a false application.
Section 38-62-50. (A) The department shall issue an applicant a certificate, if the department determines that:
(1) the person earns at or less than two hundred percent of the federal poverty level;
(2) the person is a citizen of the United States and has been a resident of this state for the twelve-month period immediately preceding the application;
(3) the person has not been covered under a health insurance policy for at least twelve consecutive months before the application;
(4) the person is not eligible for or enrolled in Medicare, Medicaid or any other state or federal government health insurance program;
(5) the person has not been awarded premium assistance pursuant to this chapter more than twice; and
(6) the person is between the ages of nineteen and sixty-four.
(B) The department shall issue eligible individuals certificates in the order in which the application is received. The maximum number of eligible individuals receiving premium assistance is reached when the anticipated amount of claims for premium assistance payments reaches ninety percent of the amount of money allocated for premium assistance payments. The Director of the department shall establish a waiting list for applicants that are otherwise qualified for registration but cannot be registered because the maximum number of individuals is reached. The Director shall notify all persons who applied for a certificate and who were not issued a certificate the reason that they did not receive a certificate and whether they were placed on the waiting list.
Section 38-62-60. The certificate is valid for the twelve months following the purchase of a qualifying health plan, if the plan is purchased within ninety days of the date the certificate was issued.
Section 38-62-70. (A) The department shall develop the form and manner for a person to apply for a renewal certificate and shall make the form readily available to health insurance agents and other persons authorized to sell health insurance in this State. Participants shall be responsible for obtaining and completing the form and forwarding it and any documentation required by the department. The department will process renewal applications along with new applications in accordance with Section 38-62-50. Priority shall be given to renewal applications.
(B) In the case of individually sponsored insurance, sixty days before the expiration of the policy term, the insurer must send the insured a certificate renewal application promulgated by the department. The insured shall be responsible for completing the form and forwarding it and any documentation required by the department.
(C) In the case of employer-sponsored insurance, sixty days before the expiration of the policy term, the employer must send the insured a certificate renewal application promulgated by the department. The insured shall be responsible for completing the form and forwarding it and any documentation required by the department.
(D) The department may only issue a renewal certificate if the applicant remains eligible.
Section 38-62-80. (A) In the case of individually sponsored insurance, the department shall provide the premium assistance directly to the individual's choice of participating qualifying insurers. To obtain the premium assistance, an insurer must present a valid certificate to the department. The release of the premium assistance to the insurer is contingent upon the insurer submitting proof of the individual satisfying his share of the premium liability. In no case, shall the amount paid in premium assistance exceed the total cost of coverage for the individual. The department shall make quarterly premium assistance payments to insurers.
(B)(1) In the case of employer-sponsored insurance, the department shall provide the premium assistance directly to the individual's participating employer. To obtain the premium assistance, an employer must present a valid certificate to the department. A participating small employer must share the premium assistance with the employee in proportion to the percentage of the cost of coverage paid by the employer and the employee. The amount paid in premium assistance to a small employer cannot exceed the total cost of coverage for the employee. The release of the premium assistance to the employer is contingent upon the employer submitting proof of the individual and the small employer satisfying his respective share of the premium liability. The department shall make quarterly premium assistance payments to small employers.
(2) If the covered individual ceases to be employed, the employer must return the certificate to the individual and notify the department that the employer no longer covers the individual under a qualifying health plan. Any remaining value of the certificate may be used to obtain a qualifying health plan.
Section 38-62-90. This chapter is not intended, nor shall it operate to guarantee health insurance coverage to any individual.
Section 38-62-100. The department may charge the Healthcare Trust Fund a quarterly administrative fee of up to one percent of the amount credited to the Healthcare Trust Fund in the preceding quarter.
Section 38-62-110. The department must provide an annual report on the Healthcare Trust Fund to the Chairman of the Senate Finance Committee, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Banking and Insurance Committee, the Chairman of the House Labor, Commerce and Industry Committee, the Board of Economic Advisors, and the Study Committee on Healthcare Access and Affordability. The report shall provide, at a minimum, a general description of the services provided and populations served, the number of people served, the average cost per person, the additional administration costs of the programs funded by the Healthcare Trust Fund, and a three-year forecast of the utilization of the fund."
SECTION 6. Chapter 74, Title 38 of the 1976 Code is amended by adding:
"Section 38-74-75. (A) There is created the 'Palmetto Healthcare Safety Net' program of the pool. The program shall be funded by the Palmetto Healthcare Safety Net Fund created in Section 11-11-220(D), and shall be self-sustaining and financially independent from the remainder of the pool.
(B) Any person eligible for pool coverage may opt to participate in the Palmetto Healthcare Safety Net Program of the pool, provided the person also:
(1) is at least nineteen years of age;
(2) provides evidence of United States citizenship and of South Carolina residency for the sixty months immediately preceding the application for coverage;
(3) provides their prior year's state income tax return and corresponding W-2 forms evidencing total household gross income that did not exceed seventy-five thousand dollars in the previous taxable year; and
(4) agrees to participate in the Palmetto Healthcare Safety Net program and to comply with all care coordination plans, case management procedures, and managed care criteria of the program developed by the Department of Insurance.
(C) The Department of Insurance shall oversee the Palmetto Healthcare Safety Net Program. The department shall:
(1) select a qualified entity, in accordance with the procedures contained in Section 38-74-40, to administer the program including:
(a) establishing accounting policies for the Palmetto Healthcare Safety Net Fund;
(b) establishing premium billing and collection policies including policies regarding non-payment of premiums;
(c) hiring independent actuarial support from a qualified Member of the Academy of Actuaries to develop and publish actuarially determined annual premium rates that are self-sustaining and actuarially sound. Rates may be adjusted by age and gender and any other appropriate characteristics determined by the contracted actuary;
(d) developing an application for participation and establish policies and procedures for initially determining eligibility, the periodic re-determination of eligibility, monitoring of compliance with program rules and managed care provisions and termination of participation, and the premium assistance for noncompliance;
(e) establishing a schedule of medical benefits, exclusions, and limitations for the program;
(f) developing stringent care coordination plans, case management procedures, and other managed care criteria that will serve as a requirement for eligible persons to participate in this program; and
(g) developing and implementing a public awareness program of the plan; and
(2) promulgate regulations necessary to implement the provisions of this section.
(D) Participation in the Palmetto Healthcare Safety Net Program is limited to the funds available in the Palmetto Healthcare Safety Net Fund in order to prevent any loss in program operations. The Department of Insurance or its contracted entity shall accept and process applications, and award the premium assistance provided for in this section, in the order in which the applications are received. The department is further authorized to establish a waiting list in the event there are insufficient funds available to allow all applicants to participate. The department may also implement a maximum limit on individual coverage to prevent an operating loss. The program may not be funded in any part by the funding mechanisms of the existing pool. The Department of Insurance may charge the Palmetto Healthcare Safety Net Fund a quarterly administrative fee of up to one percent of the amount credited to the Palmetto Healthcare Safety Net Fund in the preceding year.
(E) Beginning on July 1, 2010, and then only to the extent sufficient funds exist in the Palmetto Healthcare Safety Net Fund, participants in the Palmetto Healthcare Safety Net Program shall be entitled to a premium assistance equal to the difference between the self-supporting actuarial premium for this pool and the amount that the individual would have been required to pay for an equivalent product under Section 38-62-30.
(F) The Department of Insurance is authorized to initiate periodic transfers in the amount of the approved premium assistance from the Palmetto Healthcare Safety Net Fund to the administering entity of the Palmetto Healthcare Safety Net Program to be credited against the premiums owed by the program and any additional funds to maintain the solvency of the program.
(G) Neither the establishment of rates, forms, or procedures nor any other joint or collective action required by this section may be the basis of any legal action, criminal or civil liability, or penalty against the program. No cause of action may arise against the program's agents, employees, or representatives, for any good faith act or omission in the performance of their powers and duties pursuant to this section.
(H) The department must provide an annual report on the Palmetto Healthcare Safety Net Program of the pool to the Senate Finance Committee, the Chairman of the House Ways and Means Committee, the Chairman of the Senate Banking and Insurance Committee, the Chairman of the House Labor, Commerce and Industry Committee, the Board of Economic Advisors, and the Study Committee on Healthcare Access and Affordability. The report shall provide, at a minimum, a general description of the services provided and populations served, the number of people served, the average cost per person, the additional administration costs of the programs funded by the Healthcare Trust Fund, and a three-year forecast of the utilization of the fund."
SECTION 7. In April, May, and June of 2008, neither a wholesaler, distributor, or a retailer of cigarettes may purchase more cigarettes in any one month in an amount that exceeds one hundred ten percent of the average monthly amount of cigarettes purchased in the same three months of the previous calendar year. In examining aggregate business license tax revenue data, if the Department of Revenue determines that the revenue collected in April, May, and June of 2008 exceeds one hundred ten percent of the amount collected during the same three months of the previous calendar year, the business license tax audit division of the department shall conduct an audit of random wholesalers, distributors, and retailers to ensure compliance with the requirements of this section. Any violation of this section shall result in a civil fine equal to five times the amount of tax owed on the purchased cigarettes that caused the wholesaler, distributor, or retailer to exceed one hundred ten percent of the amount purchased in the same three months of the previous calendar year.
SECTION 8. (A) There is created the Study Committee on Healthcare Access and Affordability. The committee shall review and make recommendations regarding the state's overall health status, the price of healthcare, the use of Medicare and Medicaid, the promotion of public and private healthcare partnerships, preventative care, the establishment of a high risk healthcare pool, the necessity of a reinsurance program, how to maximize coverage while controlling costs and providing quality care, and how to improve the state's overall health and healthcare affordability.
(B) The study committee shall be composed of nine members. The President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Governor shall each appoint three members. The Governor must appoint one member based upon the recommendation of the Health Sciences South Carolina collaborative. Each member must have a background of substantial duration or expertise in at least one of the following:
(1) healthcare issues;
(2) business issues;
(3) economic issues;
(4) consumer issues;
(5) insurance issues;
(6) academic issues; or
(7) governmental issues.
(C) The study committee shall make a report of its findings and recommendations to the General Assembly no later than January 1, 2010, at which time the study committee must be dissolved.
SECTION 9. Except where otherwise provided, this act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Senator ALEXANDER explained the amendment.
Senator ALEXANDER moved that the amendment be adopted.
At 2:08 P.M., with Senator ALEXANDER retaining the floor, on motion of Senator SETZLER, with unanimous consent, the Senate receded from business not to exceed two minutes.
At 2:09 P.M., the Senate resumed.
The question then was the adoption of the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
AYES
Alexander Anderson Campbell Ceips Cleary Cromer Drummond Elliott Fair * Gregory Hayes Hutto Jackson Land Leatherman Leventis Lourie Malloy Martin Matthews McGill O'Dell Patterson Pinckney Reese Sheheen Short Williams
Campsen Courson Grooms Hawkins Knotts Massey McConnell Peeler Rankin Ritchie Ryberg Scott Setzler Thomas Vaughn Verdin
Bryant
*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.
The amendment was adopted.
Under the provisions of Section 8-13-700, S. C. Code of Laws, I abstained from consideration of and voting on H. 3567.
I voted for Amendment P-2 but do not support the provision that automatically raises the tax each year. In my view that is not good public policy. I intend to support an amendment to delete that provision tomorrow on second reading.
I voted "no" on the adoption of Amendment P-2 because it contains a mechanism that will index the cigarette tax allowing the tax to increase without subsequent approval of the General Assembly. There is no other tax imposed in this State that is subject to indexing, and to my knowledge, no other state in this country has an indexing provision tied to their cigarette tax.
On motion of Senator MARTIN, with unanimous consent, debate was interrupted by adjournment.
On motion of Senator MARTIN, with unanimous consent, the Senate agreed that, when the Senate adjourns today, it stand adjourned to meet tomorrow at 11:00 A.M.
On motion of Senator MARTIN, with unanimous consent, the Senate stood adjourned out of respect to the memory of William "Bill" Hutto of Pickens County, S.C., highway patrolman for 33 years.
At 2:20 P.M., on motion of Senator MARTIN, the Senate adjourned to meet tomorrow at 11:00 A .M.
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