Legislative Update
March 11, 1997
Vol. 14, No. 8

South Carolina House of Representatives
David H. Wilkins, Speaker of the House

OFFICE OF RESEARCH
Room 309, Blatt Building, P.O. Box 11867, Columbia, S.C. 29211, (803) 734-3230

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CONTENTS


Legislative Update, March 11, 1997

WEEK IN REVIEW

HOUSE

The House completed work on the 1997-98 General Appropriation Bill (H.3400), the Supplemental Appropriation Bill (H.3401), and the Capital Reserve bill (H.3402). A summary of the House's spending plan, prepared by the House Ways and Means Committee, is attached to this issue of the Legislative Update.

The House amended and gave third reading to H.3272 which revises the Consumer Protection Code as it pertains to penalties for violations of certain loan provisions, most notably, a creditor's failure to obtain the borrower's preference of legal counsel and insurance agent before the closing of a mortgage loan. The bill prohibits borrowers from filing class action suits on such violations and sets a time limit and other restrictions on pursuing individual causes of action. The bill sets new limits on amounts which may be recovered in individual suits, such that a debtor may recover actual damages and a penalty of one hundred to one thousand dollars. Greater court awards are authorized in suits where the court finds unconscionable conduct on the part of the creditor. Class actions pending as of the date when H.3272 received third reading in the House may proceed, but are subject to the new remedies provided by the bill.

The House gave second reading to two bills which bring South Carolina into compliance with the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), popularly known as the "Kennedy-Kassebaum Bill." S.287 accommodates provisions in the HIPAA which guarantee health insurance portability for individuals moving from group to individual coverage. Under the HIPAA, insurers in the individual market must offer coverage and accept enrollment of any eligible individual whose most recent coverage has been in the group market. S.287 takes advantage of provisions in the HIPAA which allow states to avoid direct imposition of federal mandates by creating acceptable alternative mechanisms. S.287 alters South Carolina's existing Health Insurance Pool to make it such an acceptable alternative mechanism. To that end, the bill shortens residency requirements, removes the current exclusion of HIV positive individuals, provides health coverage options, increases benefit level to one million dollars, lowers the premium cap from 300% to 200%, and eliminates the provision which allows extra premium charges in cases where a pre-existing medical condition is waived. The House amended and gave second reading to S.288 which conforms state law to certain federal mandates in the HIPAA which must be put into effect no later than July 1, 1997, lest the Department of Insurance surrender certain regulatory authority of health insurance to federal agencies. The bill accomplishes the following: (1) limits the exclusion of pre-existing medical conditions from large and small group health insurance plans; (2) restricts an insurer's ability to establish eligibility rules for large and small group health insurance plans which are based upon such health status factors as disabilities, genetic information, history of domestic abuse, etc.; (3) guarantees availability of coverage in the small group market; (4) guarantees renewability of coverage in the large and small group markets and in multi-employer self-insured health plans; (5) enacts provisions of the federal Newborns and Mothers Protection Act of 1996 which require health insurers who cover hospitalization and attendant professional services for mothers and newborns to provide at least forty-eight hours of postpartum care following the day of a natural delivery and at least ninety-six hours of postpartum care following the day of a Cesarean Section; (6) provides parity in the application of certain limits to mental health benefits.

The House gave second reading to several other measures. H.3404 eliminates the requirement that the Public Service Commission adopt procedures that encourage public utilities providing gas services to invest in cost-effective energy conservation programs. Under the bill, public utilities providing gas services are no longer required to prepare integrated resource plans. H.3103 authorizes any agency or any person who does an early periodic screening, diagnosis and treatment screening (EPSDT) or other physical examination of a child to refer the child to an appropriate agency for an evaluation if the child may be helped by assistive technology. "Assistive technology" means a service or device used to maintain or improve the functional capacities of an individual with a disability. H.3135 allows a photograph of fish, game, or wildlife to be used as competent evidence of the wildlife or fish in any proceeding. H.3155 makes it unlawful to buy, sell, or possess for sale any wildlife native to this state, unless specifically allowed by law.

SENATE

The Senate gave third reading and sent to the House S.392, which provides that candidates for public office who lose a primary are barred from serving if elected as a write-in candidate in the general election. H.3176, which concerns University of South Carolina net athletic revenue funds, was given second reading with notice of general amendments. The Senate also gave second reading, with notice of general amendments on third reading, to S.16. This bill requires insurance policies and health maintenance organizations to pay for hospitalization for at least 48 hours following a mastectomy.

S.486, which enacts the South Carolina Transportation Infrastructure Bank Act, was introduced and referred to the Senate Transportation Committee. The Senate then adopted a motion that, upon the report of the bill by the Transportation Committee, the bill will be committed to the Senate Finance Committee for consideration.


COMMITTEE ACTION

Most committees chose not to meet while the House debated the Fiscal Year 1997-98 budget.

JUDICIARY

The General Laws Subcommittee gave a favorable report with amendment to H.3207 which prohibits drinking games in establishments which sell beer, wine, or other alcoholic beverages. The amendment proposed by the subcommittee changes the bill's criminal penalty for a violation to the administrative penalty of possible suspension or revocation of alcohol licenses and permits.


BILLS INTRODUCED

AGRICULTURE, NATURAL RESOURCES, AND ENVIRONMENTAL AFFAIRS

H.3590 ARTIFICIAL LIGHTS/GAME ZONE 6 Rep. Gourdine
This bill prohibits the use of artificial lights from a vehicle or water conveyance in Game Zone 6 for the purpose of observing or harassing wildlife.

H.3604 SOLID WASTE MANAGEMENT AND PERMITTING Rep. Sharpe
Current law states that no permit to construct or expand a solid waste management facility within a county or municipality may be issued by the Department of Health and Environmental Control (DHEC) unless the proposed facility or expansion is consistent with local zoning and land use ordinances. This bill states that DHEC must determine the consistency of the proposed facility or expansion with the county or regional solid waste management plan and the state solid waste management plan after consultation with the county or region.

H.3606 SOLID WASTE POLICY AND MANAGEMENT ACT AMENDMENTS Rep. Sharpe
This bill amends the S.C. Solid Waste Policy and Management Act of 1991 by revising several definitions in the act and deleting the fee of ten dollars a ton on solid waste generated out of state and disposed of in this state. The bill also makes changes regarding the duties of the Office of Solid Waste Reduction and provides that the Recycling and Solid Waste Management Trust Fund will fund grants to schools and colleges to establish waste reduction and recycling education programs and demonstration projects.

H.3607 SOLID WASTE ADVISORY COUNCIL Rep. Sharpe
This bill increases the membership of the Solid Waste Advisory Council from sixteen to eighteen and deletes the provision in the code regarding expiration of the existence of the council. The bill also states that the Department of Health and Environmental Control may issue an order requiring compliance with a regulation or bring a civil action for injunctive relief under certain circumstances.

EDUCATION AND PUBLIC WORKS

H.3589 "LAKE MURRAY" LICENSE PLATES Rep. Bauer
This bill provides for the issuance of special commemorative "Lake Murray" license plates. The biennial fee for the plate would be $50, with $25 deposited in the State general fund and $25 transferred to the Lake Murray Tourism and Recreation Association to promote Lake Murray.

H.3594 SCHOOL DISTRICT PROGRAMMING REPORTS Rep. Chellis
This bill relates to the current Education Finance Act requirement that local school boards and School Improvement Councils develop an annual district programming report to the parents and constituents of the school district. This report includes the goals and objectives of the district, strategies implemented to meet the goals and objectives, and an evaluation of progress and outcomes. This bill provides that these reports be provided by December 1 of each year rather than the currently required date of November 15.

JUDICIARY

H.3584 RESTITUTION FOR JUVENILE OFFENSES Rep. Cotty
This bill authorizes judges to order restitution in addition to ordering commitment of a juvenile to the custody of the Department of Juvenile Justice.

H.3585 TORT LIABILITY Rep. Harrison
This bill provides that the South Carolina Tort Claims Act is the exclusive remedy for any tort committed by a government employee acting within the scope of his official duties. The provision is to be liberally construed in favor of limited liability with ambiguity to be resolved in the favor of the government.

H.3586 APPEALS PROCESS Rep. Harrison
This bill establishes a two-tiered system for the state's appellate courts in which the Court of Appeals is charged with the responsibility of deciding most appeals from circuit and family courts. Certain appeals, such as death sentences, challenges to constitutionality, public utility rates, etc. are routed directly to the Supreme Court, as specified in statute. The Supreme Court is positioned to review appeals which involve novel or important issues.

H.3588 CONFIDENTIALITY OF JUVENILE CRIMINAL RECORDS Rep. Sheheen
This bill removes confidentiality requirements on juvenile criminal records in instances where the crime involved, if committed by an adult, would carry a penalty of imprisonment for one year or more. Disclosure of the name, identity, picture, and fingerprints is authorized for a juvenile charged with such a crime. Such records may not be expunged, with certain exceptions.

H.3591 SOUTH CAROLINA PROPERTY RIGHTS ACT Rep. Harrison
This bill provides criteria for when state and local laws and regulations which limit the way in which a property owner may use his land are to be considered a taking which requires compensation.

H.3593 VICTIMS OF TERRORISM Rep. Limbaugh
This bill provides that state residents who are victims of terrorism committed outside the United States may apply for benefits with the Victim's Compensation Fund.

H.3597 INMATE LABOR AND COMPENSATION Rep. Klauber
This bill requires inmates who are able to work to work at least forty hours a week. Inmates convicted of nonviolent offenses or in minimum security detention may be assigned to work on chain gangs. The bill establishes a procedure which the Attorney General may use to secure reimbursement for inmate care from inmates who have the means to pay. The bill also provides that inmates may watch only educational television programs.

H.3603 CHILD ENDANGERMENT AND ABANDONMENT Rep. Allison
This bill broadens the category of individuals who may be held responsible for child endangerment/abandonment by substituting someone who "is responsible for the care and support of a child" with someone who "resides in the house of a child, or has recurring access to a child, or has been given responsibility to care for a child." The bill also makes it unlawful to place a child in a situation that would likely lead to abandonment.

S.70 JUDICIAL MERIT SELECTION COMMISSION Sen. McConnell
This bill provides that, a judge or justice must have been reviewed by the Judicial Merit Selection Commission within two years in order to be eligible for continued service. Unless the judge or justice is being reviewed at the time of expiration of his term, the commission's review is advisory only and an unfavorable review is not a bar to continued service. In order to be eligible for appointment to service by the Chief Justice, a retired judge or justice must have been found qualified to serve by the commission within four, rather than two, years. The bill also reroutes the appointment process for masters-in-equity such that candidates for vacancies submit applications to the Judicial Merit Selection Commission who submit reports and recommendations to the appropriate legislative delegation. The delegation submits its recommendations to the Governor until such time as a candidate meets with his approval. No candidate who is found to be not qualified by the commission is eligible to serve as a master-in-equity.

S.392 RESTRICTIONS ON WRITE-IN VOTES Senate Judiciary Committee
This bill provides that an individual who is defeated in a primary or ensuing run-off election is ineligible to serve in that office as a result of write-in votes. The State Election Commission is charged with providing notice of this provision at polling places and on absentee ballots.

LABOR, COMMERCE AND INDUSTRY

H.3602 WORKERS' COMPENSATION FOR VOLUNTEER FIREMEN Rep. Sheheen
This bill alters the way in which the average weekly wage of volunteer firemen is calculated for the purpose of determining workers' compensation benefits.

MEDICAL, MILITARY, PUBLIC AND MUNICIPAL AFFAIRS

H.3587 OPTICIANS Rep. Quinn
This bill rewrites the provisions of the code relating to opticians to conform the chapter to the statutory and administrative framework for professional and occupational boards. The bill includes a provision requiring an optician or apprentice to annually attend a minimum of four hours of continuing education courses, and states that an optician holding a contact lens license must obtain one additional hour of continuing education courses or meetings.

WAYS AND MEANS

H.3595 JOINT MUNICIPAL WATER SYSTEMS Rep. Stuart
This bill amends current law concerning joint municipal water systems and sources of revenue available to them. The bill broadens the definition of "revenues" in this section to include all sources of funds which are revenues to the joint system, regardless of the source of the funds, from any other party obligated to the joint system. The bill expands the current provision that certain bonds or other obligations of a joint system must be paid solely from revenues of a joint system, by providing that these obligations may be paid with revenues and other sources of funds which are available to the joint system. The bill allows members of a joint system to prescribe additional procedures and requirements for the issuance of any notes or bonds in the bylaws of the system, and provides that before a joint system may undertake a project which will be financed (in whole or in part) with bond proceeds, approval must be obtained from the governing bodies of system members which would be obligated under contract for payment. Current law provides that such approval must be received from governing bodies of each system member. The bill also provides that any member county or municipality may pledge all or part of any revenues derived as payments in lieu of taxes with respect to a project, so long as these are funds available to the system. A pledge of the full faith, credit or taxing power of any member of the joint system is prohibited.

H.3601 PRIVATE JOB TRAINING REVIEW COMMITTEE Rep. Boan
This bill deletes the Private Job Training Review Committee, an appointed private-sector committee which provides advice on the utilization of short-term adult funding for collaborative skill training utilizing the technical education system and vocational educational system. The funds are used for retraining displaced workers and farmers, for upgrading employees to handle changes in their jobs, and for training the unemployed.

H.3605 PAYMENT OF TAXES WITH DISHONORED/RETURNED CHECK Rep. Sharpe
This bill allows a county treasurer, his agent, employee, or designee to enforce collection (pursuant to current law regarding fraudulent checks) of a check that is returned unpaid or is dishonored for the payment of county or municipal taxes, so long as no person is twice put in jeopardy for the same offense. The bill provides that county or municipal taxes which remain unpaid as a result of a check being dishonored or returned unpaid constitute a lien on the property subject to the tax until the taxes and all penalties, interest and other charges due are paid in full.

H.3608 SC INCOME TAX DEDUCTIONS Rep. Easterday
This bill amends the SC Income Tax Act so as to allow a deduction for individual taxable income for amounts paid for health insurance premiums by self-employed persons to the extent that the cost of these premiums was not deducted on the taxpayer's federal income tax return.

H.3611 SC COMPREHENSIVE INFRASTRUCTURE DEVELOPMENT AND FINANCING ACT Rep. Boan
This bill enacts the SC Comprehensive Infrastructure Development and Financing Act, so as to establish a state program and a unit of state government to be called the Division of Regional Development (the Division), created within the SC Budget and Control Board to coordinate infrastructure planning among state, regional, and local units of government; to assist in development of comprehensive regional infrastructure development plans; and to identify and provide funding and financial assistance for constructing and improving infrastructure. "Infrastructure" is defined in the bill as the basic facilities, services, and installations needed for the functioning of government including, but not limited to, water, sewer, communications systems, highway and transportation. "Infrastructure" as used in this bill does not mean power delivery systems or health planning and delivery systems. The bill delineates the powers, responsibilities, and functions of the Division in fulfilling its mandate of creating a state infrastructure plan, coordinating regional infrastructure development plans, and coordinating state programs and resources that impact or affect infrastructure development.

The bill also creates the State Council for Regional Development, which would assist the Division in the performance of its duties and which would identify funding, programs and decisions that affect infrastructure development, and make recommendations concerning these matters in order that state decision making will be oriented to supporting the creation, development, and effective implementation of state and regional comprehensive infrastructure development plans.

The bill also creates the SC Infrastructure Bank, which would be governed by the Budget and Control Board and administered by the Division. The purpose of the bank would be to provide loans and other financial assistance for implementing state and regional comprehensive infrastructure plans. The bank would be capitalized by federal funds; contributions and donations from public authorities, government units, and private entities; and all monies paid or credit to the bank. Dedicated sources of revenue for capitalization of the bank include an annual contribution set by the board, not to exceed 10% of the state's federal aid highway apportionments; interest earnings on the state highway fund and the economic development account; and one cent a gallon of gasoline tax revenues as currently provided in Section 12-28-2720 of the Code of Laws of South Carolina, 1976, which must be deposited by the State Treasurer to the credit of the state highway account of the SC Infrastructure Bank.

The bill requires that every state agency and program that licenses, permits, regulates, or otherwise sanctions activities related to infrastructure development must determine whether a respective government regulatory decision would be consistent with state and regional comprehensive infrastructure development plans.

The bill provides that Regional Councils of Government (the COGs) serve as liaisons between the Division and the political subdivisions of the state, and the COGs shall develop and submit regional comprehensive infrastructure development plans to the Division, and shall assist and coordinate the political subdivisions in the development of these plans. The Regional COGs shall assist the Division in coordinating, developing, and implementing a coordinated and comprehensive infrastructure development plan for the State, utilizing activities which are suggested within, but not limited by, the bill.

The bill establishes review criteria which would determine eligible projects for funding, subject to the review and approval of the Joint Bond Review Committee. The bill requires that the infrastructure bank submit an annual report to the Governor and the General Assembly, and provides for an annual independent audit of the bank.

H.3596 SERVICE CREDIT/SC RETIREMENT SYSTEM Rep. McLeod
This bill increases from 90 to 180 the number of days of a SC Retirement System member's
unused sick leave that are added to the credited service of a member otherwise eligible to retire.


FOOTNOTE

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SUMMARY OF 1997-98 APPROPRIATION BILL
AS PASSED BY THE HOUSE
Prepared by the House Ways and Means Committee

Public Education and Special Schools


Higher Education

A total of $68 million was recommended for higher education, which includes the following:


Health and Human Services

An increase of $71,669,661 in General Funds is recommended for the eight health and human services agencies assigned to the subcommittee. These funds can be matched with federal funds totaling $130,006,248.


Economic Development, Environment and Natural Resources


Criminal Justice


Transportation/Regulatory


Legislative, Executive and Local Government


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