Indicates Matter Stricken
Indicates New Matter
The House assembled at 10:00 A.M.
Deliberations were opened with prayer by the Rev. Dr. Francis M. Burriss of Columbia, Pastor of Lake Murray Presbyterian Church, White Rock, S.C.
Almighty God, whose spirit helps us in our weakness and sustains us in our daily journey, grant that we may be faithful in our service to our community, to our state, and to Thee.
Give us an active sympathy for all who suffer and a determination to work for reconciliation.
O God, when we became proud
remind us to be humble,
When we became insensitive
remind us to be benevolent.
When we become discouraged and anxious
grant us the peace that passes all
understanding,
In the name of our Lord we pray, AMEN.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by Rep. McABEE.
After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.
The following was received.
March 4, 1986
The Honorable Lois T. Shealy
Clerk of the South Carolina
House of Representatives (Doc. No. 700)
Dear Mrs. Shealy:
Pursuant to Act 176 of 1977, I have received on March 3, 1986 regulations concerning Purchase of Products of South Carolina and the United States from the State Budget and Control Board.
They are hereby referred to the Committee on Ways and Means for consideration.
Sincerely,
Ramon Schwartz, Jr.
Received as information.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, with amendments, on:
H. 3309 -- Rep. Rawl: A BILL TO AMEND ACT 76 OF 1977, AS AMENDED, THE "SOUTH CAROLINA STATE HOUSING AUTHORITY ACT OF 1977", SO AS TO PROVIDE FOR THE ESTABLISHMENT OF THE "STATE HOUSING AUTHORITY PROGRAM FUND" TO BE ADMINISTERED BY THE STATE HOUSING AUTHORITY, INCLUDING PROVISIONS FOR, AMONG OTHER THINGS, THE USE OF THE MONIES IN THE FUND AND THE INVESTMENT OF CERTAIN PORTIONS OF THESE MONIES.
Ordered for consideration tomorrow.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:
H. 3361 -- Rep. T.M. Burriss: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-5-250 SO AS TO PROVIDE THAT THE OFFICE OF THE STATE TREASURER IS A LIMITED TRUST COMPANY FOR PURPOSES OF THE FEDERAL RESERVE BOARD.
Ordered for consideration tomorrow.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:
H. 3555 -- Rep. Rawl: A BILL TO AMEND SECTION 61-3-990, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESTRICTIONS ON RETAIL DEALERS OF ALCOHOLIC LIQUORS SO AS TO CHANGE CERTAIN REFERENCES IN THE SECTION FROM A "MINOR" TO A "PERSON OF TWENTY-ONE YEARS OF AGE."
Ordered for consideration tomorrow.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:
H. 3558 -- Rep. Rawl: A BILL TO AMEND SECTION 61-9-455, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT CERTAIN SIGNS BE POSTED IN RETAIL ESTABLISHMENTS THAT SELL BEER, ALE, PORTER, OR WINE REGARDING THE UNLAWFUL PURCHASE OF BEER, ALE, PORTER, OR WINE SO AS TO REVISE THE REQUIRED WORDING OF THESE SIGNS.
Ordered for consideration tomorrow.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:
H. 3559 -- Rep. Rawl: A BILL TO REPEAL SECTION 61-9-345, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERMITS BEING REQUIRED FOR ROUTE SALESMEN OR WAREHOUSE SALESMEN OF BEER WHOLESALERS.
Ordered for consideration tomorrow.
Rep. DANGERFIELD, from the Committee on Labor, Commerce and Industry, submitted a favorable report, on:
S. 957 -- Senator Drummond: A BILL TO REPEAL ARTICLE 17 OF CHAPTER 13 OF TITLE 51 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HERITAGE WORLD EXPO AUTHORITY.
Ordered for consideration tomorrow.
Rep. HAWKINS, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report, on:
H. 3239 -- Rep. P. Harris: A BILL TO AMEND SECTIONS 43-30-20, 43-30-50, 43-30-60, AND 43-30-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLIENT-PATIENT PROTECTION ACT, SO AS TO CHANGE THE REFERENCE TO NURSING HOME OMBUDSMAN TO OMBUDSMAN AND TO CHANGE OBSOLETE REFERENCES.
Ordered for consideration tomorrow.
Rep. HAWKINS, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report, on:
S. 786 -- Senators E. Patterson, Theodore and N.W. Smith: A BILL TO AMEND SECTION 20-7-690, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONFIDENTIALITY OF REPORTS AND RECORDS OF CHILD WELFARE AGENCIES, SO AS TO PROVIDE THAT INFORMATION COLLECTED IN PROTECTING ABUSED AND NEGLECTED CHILDREN IS CONFIDENTIAL AND TO PROVIDE FOR THE REPORTS AND THE INFORMATION COLLECTED TO BE MADE AVAILABLE TO THE OMBUDSMAN OF THE OFFICE OF THE GOVERNOR.
Ordered for consideration tomorrow.
Rep. HAWKINS, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report, on:
S. 787 -- Senators E. Patterson, Theodore and N.W. Smith: A BILL TO AMEND SECTION 20-7-670, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSTITUTIONAL ABUSE AND NEGLECT INVESTIGATIONS BY THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO PROHIBIT THE DEPARTMENT FROM INVESTIGATING ANY ALLEGATION OF ABUSE OR NEGLECT WHERE THE PERSON RESPONSIBLE FOR THE CHILD'S WELFARE IS AN EMPLOYEE OF A PUBLIC OR PRIVATE HEALTH FACILITY, INSTITUTION, OR AGENCY LICENSED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL OR OPERATED BY THE DEPARTMENT OF MENTAL HEALTH AND TO PROVIDE FOR THESE ALLEGATIONS TO BE INVESTIGATED BY THE OMBUDSMAN OF THE OFFICE OF THE GOVERNOR.
Ordered for consideration tomorrow.
The following was introduced:
H. 3605 -- Reps. White and Keyserling: A CONCURRENT RESOLUTION ENDORSING THE NOMINATION OF BEAUFORT-JASPER COMPREHENSIVE HEALTH SERVICES, INC., FOR THE OUTSTANDING RURAL PRACTICE AWARD GIVEN BY THE NATIONAL RURAL HEALTH CARE ASSOCIATION AND CONGRATULATING BEAUFORT-JASPER COMPREHENSIVE HEALTH SERVICES, INC., FOR THE FINE WORK IT HAS DONE AS A MODEL RURAL HEALTH CARE DELIVERY AGENCY IN THIS STATE AND NATION.
Whereas, Beaufort-Jasper Comprehensive Health Services, Inc., was founded October 29, 1969, under the leadership of Thomas C. Barnwell, Jr., of Hilton Head Island, to provide comprehensive health care, community development services, and other opportunities to over twenty-five thousand residents in both Beaufort and Jasper counties; and
Whereas, it is now providing quality health care services to over thirty-two thousand rural residents in the Beaufort-Jasper County area; and
Whereas, the implementation of a unique patient treatment program that incorporates the environment and transportation needs of the patient in an overall health care plan has produced positive health and environmental results in South Carolina, our nation, and third world countries by serving as a "Rural Model" for safe water, indoor bathrooms, land drainage programs, home repairs, rural health service transportation, and sound rural health care delivery systems; and
Whereas, Beaufort-Jasper Comprehensive Health Services, Inc., in its sixteenth year, continues to provide low-country residents with quality health care and a commitment to maximizing the quality of life of the State's greatest natural resource, her citizens. Now, therefore,
Be it resolved by the House of Representatives, the Senate concurring:
That the General Assembly of the State of South Carolina, by this resolution, endorses the nomination of Beaufort-Jasper Comprehensive Health Services, Inc., for the Outstanding Rural Practice Award given by the National Rural Health Care Association and congratulates Beaufort-Jasper Comprehensive Health Services, Inc., for the fine work it has done as a model rural health care delivery agency in this State and nation.
Be it further resolved that a copy of this resolution be forwarded to Beaufort-Jasper Comprehensive Health Services, Inc.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The Senate sent to the House the following:
S. 1094 -- Senators Setzler, Shealy and Wilson: A CONCURRENT RESOLUTION TO COMMEND AMBER BLYTHE CUNNINGHAM, TEN YEAR OLD RESIDENT OF LEXINGTON COUNTY, FOR HER BRAVERY, DETERMINATION, AND WONDERFUL ATTITUDE DURING HER BATTLE AGAINST CANCER.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
The following Bills and Joint Resolution were introduced, read the first time, and referred to appropriate committees:
H. 3599 -- Reps. Freeman and Sheheen: A BILL TO AMEND SECTION 48-9-1220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NOMINATION AND ELECTION OF CONSERVATION DISTRICT COMMISSIONERS, SO AS TO PROVIDE THAT THE OFFICIAL NUMBER OF QUALIFIED ELECTORS OF THE GEOGRAPHICAL AREA OF AN OFFICE MUST BE DETERMINED ONE HUNDRED TWENTY DAYS INSTEAD OF NINETY DAYS PRIOR TO THE DATE OF THE ELECTION FOR WHICH THE NOMINATION PETITION IS BEING SUBMITTED AND TO CHANGE FROM SEPTEMBER EIGHTEENTH TO AUGUST FIRST THE DATE ON WHICH NOMINEES IN THE PETITION MUST BE PLACED ON THE APPROPRIATE OFFICIAL BALLOT.
Referred to Committee on Judiciary.
H. 3600 -- Reps. Davenport, Limehouse, Gordon, P. Bradley, Klapman, Aydlette, Simpson, Fair, McLeod, Shelton, Barfield, Thrailkill, McBride, Petty, Taylor, R. Brown, Gilbert, G. Brown, Winstead, Pearce, T.M. Burriss, Cleveland, H. Brown, Rigdon and Woodruff: A BILL TO AMEND THE CODE OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-19-91 SO AS TO REQUIRE THE GOVERNING BODY OF EACH SCHOOL DISTRICT TO PROVIDE A MINIMUM OF FIFTEEN MINUTES AT EACH PUBLIC MEETING OF THE GOVERNING BODY, DURING WHICH RESIDENTS OF THE DISTRICT MAY ADDRESS THE GOVERNING BODY WITHOUT PRIOR NOTICE OR REQUEST.
Referred to Committee on Education and Public Works.
H. 3601 -- Reps. Alexander, Blackwell, P. Bradley, Brett, Fair, Marchant, Mattos, L. Phillips, Rice, Rigdon, Shelton and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-17-120 SO AS TO AUTHORIZE ANY SCHOOL DISTRICT WITH A STUDENT POPULATION OF FORTY-FIVE THOUSAND OR MORE TO PURCHASE TORT LIABILITY OR PROPERTY INSURANCE FROM PRIVATE CARRIERS.
On motion of Rep. SCHWARTZ, with unanimous consent, the Bill was ordered placed on the Calendar without reference.
H. 3602 -- Reps. Townsend, Kay, Chamblee and Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 46-3-175 SO AS TO PROVIDE FOR AN AGRIBUSINESS LICENSE AND A SINGLE BOND ISSUED BY THE STATE DEPARTMENT OF AGRICULTURE IN LIEU OF A LICENSE OR PERMIT AND A SEPARATE BOND FOR SEED HANDLERS, DEALERS IN AGRICULTURAL PRODUCTS, PUBLIC WEIGHMASTERS, PESTICIDE DEALERS AND APPLICATORS, AND AGRICULTURAL LIMING MATERIALS DISTRIBUTORS.
Referred to Committee on Agriculture and Natural Resources.
H. 3603 -- Reps. Townsend, Cooper, Kay, Chamblee, J. Bradley, Toal, Sheheen and P. Harris: A BILL TO ENACT THE STATE BOARD OF EDUCATION REGULATORY REFORM ACT OF 1986 BY PROHIBITING THE STATE BOARD OF EDUCATION FROM SUBMITTING PROPOSED REGULATIONS TO THE GENERAL ASSEMBLY AFTER FEBRUARY FIRST OF ANY YEAR, ESTABLISHING WITHIN THE OFFICE OF STATE SUPERINTENDENT OF EDUCATION A REGULATION REVIEW COMMITTEE AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES, TO REQUIRE REVIEW OF PROPOSED EDUCATION REGULATIONS BY ALL DISTRICT SUPERINTENDENTS OF EDUCATION AND SCHOOL DISTRICT TRUSTEES, AND TO SUSPEND EDUCATION IMPROVEMENT ACT FUND DISTRIBUTION TO DISTRICTS FAILING TO CONDUCT A TIMELY REVIEW, TO REQUIRE THE REGULATION REVIEW COMMITTEE TO TALLY AND REPORT THE VIEWS OF SUPERINTENDENTS AND TRUSTEES TO THE STATE BOARD OF EDUCATION, TO REQUIRE THAT EACH MEMBER OF THE HOUSE COMMITTEE ON EDUCATION AND PUBLIC WORKS AND THE SENATE EDUCATION COMMITTEE BE FURNISHED A REPORT ON A PROPOSED REGULATION FAILING TO ACHIEVE MAJORITY SUPPORT OF SUPERINTENDENTS AND TRUSTEES, AND TO PROHIBIT THE DELEGATION OF DUTIES IMPOSED BY THIS BY MAKING DELEGATION GROUNDS FOR REMOVAL FOR CAUSE.
Referred to Committee on Education and Public Works.
H. 3604 -- Reps. Schwartz and Sheheen: A JOINT RESOLUTION TO ADOPT REVISED CODE VOLUMES 1, 4, AND 14 AND NEW VOLUMES 1A, 4A, AND 14A OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO THE EXTENT OF THEIR CONTENTS, AS THE ONLY GENERAL PERMANENT STATUTORY LAW OF THE STATE.
On motion of Rep. SHEHEEN, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.
On motion of Rep. SHEHEEN, with unanimous consent, it was ordered that H. 3604 be read the second and third times the next two successive legislative days.
The roll call of the House of Representatives was taken resulting as follows.
Schwartz Alexander Altman Anderson, J. Anderson, S. Arthur, J. Arthur, W. Aydlette Bailey, G. Barfield Beasley Blackwell Boan Bradley, J. Bradley, P. Brett Brown, H. Brown, R. Burriss, J.H. Burriss, M.D. Burriss, T.M. Carnell Chamblee Cleveland Cooper Cork Dangerfield Davenport Day Derrick Elliott Evatt Faber Fair Felder Ferguson Foster Foxworth Freeman Gentry Gilbert Gordon Gregory Harris, J. Harris, P. Hawkins Hayes Hearn Helmly Hendricks, B. Holt Johnson, J.C. Johnson, J.W. Kay Keyserling Kirsh Klapman Kohn Lake Lewis Limehouse Mangum Martin, D. Martin, L. Mattos McAbee McBride McEachin McKay McLeod McTeer Moss Neilson Nettles Ogburn Pearce Petty Phillips, L. Phillips, O. Rawl Rhoad Rice Rogers, J. Rogers, T. Russell Sharpe Sheheen Shelton Short Simpson Stoddard Taylor Thrailkill Toal Townsend Tucker Waldrop Washington White Wilkins Williams Winstead
I came in after the roll call and was present for the Session on March 5, 1986.
Tom G. Woodruff, Jr. H. Larry Mitchell L. Edward Bennett Thomas E. Huff T.W. Edwards Grady Brown Lenoir Sturkie John J. Snow, Jr. Robert N. McLellan Charles L. Griffin III Rick Rigdon Lloyd I. Hendricks Alex Harvin
STATEMENT OF ATTENDANCE
Reps. BLANDING, HARVIN, HUFF and LIMEHOUSE signed a statement with the Clerk that they came in after the roll call and were present for the Session on Thursday, February 27, 1986.
Reps. T.M. BURRISS, HARVIN and HUFF signed a statement with the Clerk that they came in after the roll call and were present for the Session on Tuesday, March 4th.
The SPEAKER granted Rep. MARCHANT a leave of absence for the day.
The SPEAKER granted Rep. LOCKEMY a leave of absence for today and tomorrow to act as official representative of the Governor attending the Sesqui-Centennial of Texas Independence and to present $5,000 to the Daughters of the Republic of Texas to commemorate the sons of S.C. who died at the Alamo.
Announcement was made that Dr. Kenneth W. Smith of Anderson, is the Doctor of the Day for the General Assembly.
The following Bills were taken up, read the second time, and ordered to a third reading:
H. 3578 -- Reps. J. Anderson and S. Anderson: A BILL TO PROVIDE THAT STROM THURMOND HIGH SCHOOL IN EDGEFIELD COUNTY SHALL HEREAFTER REMAIN SO NAMED AS TRIBUTE TO ONE OF SOUTH CAROLINA'S MOST DISTINGUISHED SONS, U.S. SENATOR STROM THURMOND.
H. 3591 -- Rep. Lloyd Hendricks: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF MEARES BUILDERS, INC.
H. 3594 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTION 34-29-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONSUMER FINANCE LAW, SO AS TO FURTHER PROVIDE FOR THE PROHIBITION AGAINST A LICENSEE INDUCING A PERSON TO SPLIT A LOAN IN ORDER FOR THE LICENSEE TO OBTAIN A HIGHER RATE OF INTEREST, AND TO AMEND CHAPTER 9, TITLE 37 OF THE 1976 CODE RELATING TO THE CONSUMER PROTECTION CODE BY ADDING SECTION 37-9-103 SO AS TO PROVIDE THAT CERTAIN SUBSIDIARIES OF THE SAME PARENT CORPORATION ARE NOT CONSIDERED RELATED PERSONS FOR PURPOSES OF THE REQUIREMENT THAT ALL RELATED PERSONS MAKING SUPERVISED CONSUMER LOANS MUST ELECT TO BE LICENSED UNDER THE SAME PROVISIONS OF LAW AND TO AUTHORIZE THE REVOCATION OF THE LICENSE OF THESE SUBSIDIARIES FOR ENGAGING IN OR FOR FAILING TO TAKE CERTAIN ACTIONS.
Rep. T.M. BURRISS explained the Bill.
On motion of Rep. T.M. BURRISS, with unanimous consent, it was ordered that H. 3594 be read the third time tomorrow.
The following Bills were taken up, read the third time, and ordered sent to the Senate.
H. 3540 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTION 40-21-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENGINEERS AND LAND SURVEYORS, SO AS TO CHANGE THE DEFINITION OF "PRACTICE OF LAND SURVEYING" SO AS TO EXPAND THE DEFINITION, INCLUDE THE WORK A TIER B LAND SURVEYOR MAY PERFORM AND DEFINE THE TERM "ABET" AS MEANING THE ACCREDITATION BOARD FOR ENGINEERING AND TECHNOLOGY; TO AMEND THE 1976 CODE BY ADDING SECTION 40-21-195 SO AS TO ESTABLISH THE QUALIFICATION FOR A TIER B LAND SURVEYOR; TO AMEND SECTION 40-21-200, AS AMENDED, RELATING TO THE QUALIFICATIONS OF A LAND SURVEYOR, SO AS TO ESTABLISH THE QUALIFICATIONS OF A TIER A LAND SURVEYOR; TO AMEND SECTION 40-21-206, RELATING TO THE QUALIFICATIONS FOR A SURVEYOR-IN-TRAINING, SO AS TO REQUIRE THAT APPLICANTS MUST MEET THE STANDARDS OF THE ACCREDITATION BOARD FOR ENGINEERS AND TECHNOLOGY AND TO DELETE THE REQUIREMENT THAT AN APPLICANT MUST BE A GRADUATE OF A HIGH SCHOOL OR POSSESS A STATE EQUIVALENCY CERTIFICATE; TO PROVIDE THAT ANY PERSON REGISTERED AS A SURVEYOR-IN-TRAINING UNDER THE PROVISIONS OF CHAPTER 21 OF TITLE 40 AS IT EXISTED PRIOR TO THE EFFECTIVE DATE OF THIS ACT OR WHO MAY BE REGISTERED OR WHO CAN PROVIDE EVIDENCE SATISFACTORY TO THE BOARD OF REGISTRATION FOR PROFESSIONAL ENGINEERS AND LAND SURVEYORS MAY BE REGISTERED AS A TIER A LAND SURVEYOR BY PASSING THE WRITTEN OR WRITTEN AND ORAL EXAMINATIONS IN THE PRINCIPLES AND PRACTICES IN TIER A OF LAND SURVEYING AS MAY BE PROVIDED BY THE BOARD; AND TO PROVIDE THAT THE BOARD SHALL PROMULGATE REGULATIONS EFFECTUATING THE PROVISIONS OF THIS ACT.
H. 3568 -- Ways and Means Committee: A BILL TO ESTABLISH THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN, TO PROVIDE FOR A GOVERNING BODY THEREFOR TO BE KNOWN AS THE POLICY COUNCIL, TO PROVIDE FOR AN ADVISORY COUNCIL FOR THIS GOVERNING BODY, AND TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE CONTINUUM OF CARE.
The following Bill was taken up.
S. 462 -- Senators Land and Theodore: A BILL TO AMEND SECTIONS 40-57-100, 40-57-110, 40-57-150, 40-57-170, AND 40-57-180, ALL AS AMENDED, AND 40-57-10, 40-57-30, 40-57-40, 40-57-90, 40-57-120, 40-57-160, AND 40-57-240, RELATING TO REAL ESTATE BROKERS, COUNSELLORS, SALESMEN, APPRAISERS, PROPERTY MANAGERS, EXAMINATIONS, LICENSING, AND COMMISSION RULINGS AND DECISIONS, SO AS TO PROVIDE ADDITIONAL PREREQUISITES FOR THE EXAMINATION AND LICENSING OF PROPERTY MANAGERS, TO AUTHORIZE THE COMMISSION TO ESTABLISH AN APPLICATION FEE, TO CLARIFY PROVISIONS RELATING TO REAL ESTATE AUCTIONEERS; TO AUTHORIZE THE COMMISSION TO ASSESS FINES FOR MISREPRESENTATIONS AND OTHER INFRACTIONS AND TO ISSUE SUBPOENA AND CEASE AND DESIST ORDERS, TO DEFINE BROKER TO INCLUDE A PERSON WHO NEGOTIATES OR SOLICITS REFERRALS AND DEFINE BROKER-IN-CHARGE, PROPERTY MANAGER, AND PROPERTY MANAGER-IN-CHARGE, TO PROVIDE THAT THE PROVISIONS OF THE CHAPTER DO NOT APPLY TO TRANSACTIONS INVOLVING RENTAL OR LEASING OF REAL ESTATE BY THE OWNER, TO REQUIRE THAT ALL PERSONS LICENSED BY THE COMMISSION SUBMIT A CREDIT REPORT, TO PROVIDE THAT PROPERTY MANAGER IS AN ADDITIONAL LICENSE CLASSIFICATION AND THAT NO PERSON BE LICENSED IN MORE THAN ONE CLASSIFICATION, TO PROHIBIT INDUCEMENTS BY LICENSEES IN THE SALE OF REAL ESTATE, TO PROVIDE NOTICE TO THE COMMISSION OF CIVIL OR CRIMINAL ACTIONS AND JUDGMENTS, TO INCREASE THE PENALTY FOR FAILURE TO RENEW A LICENSE TO DEAL IN REAL ESTATE TRANSACTIONS FROM AN AMOUNT NOT TO EXCEED ONE HUNDRED DOLLARS TO FIVE HUNDRED DOLLARS AND INCREASE THE MAXIMUM PRISON TERM FROM THIRTY DAYS TO SIX MONTHS, AND TO AMEND THE 1976 CODE BY ADDING SECTION 40-57-250 SO AS TO PROVIDE FOR AN ADMINISTRATIVE FINE.
Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc. No. 2117R), which was adopted.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Section 40-57-10 of the 1976 Code is amended to read:
"Section 40-57-10. As used in this chapter:
(1) The term "broker" shall mean 'Broker' means any person who for a fee, commission, or other valuable consideration, or with the intent or expectation of receiving a fee, commission, or consideration, negotiates or attempts to negotiate the listing, sale, auction, purchase, exchange, or lease of any real estate or of the improvements thereon, or negotiates or attempts to negotiate, or solicits or attempts to solicit a referral with respect to the foregoing activities, or collects rents or attempts to collect rents, or who acts as an appraiser, or who advertises or holds himself out as engaged in any of the foregoing activities. The term includes the activity provided in subsections (3) and (4) of this section. The term also includes any person employed by or on behalf of the owner of real estate to conduct the sale, auction, leasing, appraisal, or other disposition thereof at a salary or for a fee, commission, or any other consideration. It also includes any person who engages in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby he undertakes primarily to promote the sale of real estate through its listing in a publication issued primarily for such purpose, or for referral of information concerning such real estate to brokers, or both.
(2) 'Broker-in-charge' means the broker who is designated as having the responsibility over the actions of all brokers, salesmen, and property managers licensed under him and also the responsibility, control, and liability over any real estate trust or escrow accounts.
(2) (3) The term "salesman" shall mean 'Salesman' means any person employed or engaged under contract by or on behalf of a licensed broker to participate in any activity included in subsection (1) of this section for compensation or otherwise. The term includes activity provided in subsection (4) of this section.
(4) 'Property manager' means any person who for a fee, commission, or other valuable consideration, or with the intent or expectation of receiving a fee, commission, or consideration, negotiates, or attempts to negotiate the rental, exchange, or leasing of any real estate or of the improvements thereon; or the listing of exchanges, rentals, or leases; or collects rents or attempts to collect rents; or who advertises or holds himself out as engaged in any of the foregoing activities.
The term also includes any person who engages in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby he undertakes to promote the renting or leasing through its listing in a publication issued primarily for this purpose, or for referral of information concerning the rentals or leases.
An employee of the owner of rental property may perform the following duties without securing a property manager license. Such employee to be exempt from licensing is restricted as follows:
1. Must be an employee of the owner whose compensation for services shall be on a salary basis and not on a commission basis.
2. Employee may only exhibit a rental property to prospective tenants, accept applications for leases and furnish such prospective tenants with information relative to the rental of such units. The activities must be further restricted as follows:
(a) No binding contracts may be negotiated, drawn, or signed by the employee.
(b) The employee may only accept and receipt for rental payments or deposits that are made payable to the owner.
(c) The employee may not hold himself out as a property manager.
(5) 'Property manager-in-charge' means the property manager who is designated as having the responsibility over the actions of all property managers licensed under him and also the responsibility, control, and liability over any real estate trust or escrow accounts.
(3) (6) The term "person" shall mean 'Person' means individuals, corporations, partnerships, or associations, foreign and domestic.
(4) (7) The term "real estate" shall mean 'Real estate' means leaseholds, as well as any other interest in land, whether corporeal, incorporeal, freehold, or nonfreehold, and whether the real estate is situate in this State or elsewhere.
SECTION 2. Section 40-57-20 of the 1976 Code is amended to read:
"Section 40-57-20. It shall be unlawful for any person to act as a real estate broker, counsellor, real estate salesman, appraiser, property manager, or real estate auctioneer, or to advertise or assume to act as such without first having obtained a license issued by the Real Estate Commissioner. Any person violating this provision is guilty of a misdemeanor, and upon conviction, must be punished by a fine of not more than five hundred dollars, or by imprisonment for a term of not more than six months, or both, in the discretion of the court."
SECTION 3. Section 40-57-30 of the 1976 Code is amended to read:
"Section 40-57-30. The provisions of this chapter shall do not apply to any transaction involving the sale, rental, or leasing of real estate by anyone who is the owner thereof or who owns any interest therein, if the legal ownership interest in the real estate being sold, rented, or leased is identical to the owner's legal interest, or to the attorney at law of such the owner acting within the scope of his duties. Ownership of stock in a corporation is not ownership of an interest in real estate owned by the corporation and does not exempt such the stockholder from the provisions of this chapter, unless the stockholder owns or controls at least ten percent of the stock of the corporation."
SECTION 4. Section 40-57-40 of the 1976 Code is amended to read:
"Section 40-57-40. The provisions of this chapter shall be are applicable only to those persons holding themselves out to the public as real estate brokers, counsellors, appraisers, auctioneers, real estate salesmen and property managers and shall not apply to agencies and instrumentalities of the State state or Federal Government federal government nor to employees of any lender or public officials making appraisals for Federal, State federal, state, and local units of the government , nor to anyone making appraisals through such employees for lending or governmental purposes."
SECTION 5. Section 40-57-90 of the 1976 Code is amended to read:
"Section 40-57-90. Licenses as real estate broker, counsellor, real estate salesman, appraiser, auctioneer, or property manager shall must be granted only to persons, residents of this State, who submit satisfactory proof to the Commissioner that they are trustworthy and bear a good reputation for honesty and fair dealing, and are competent to transact the business of a real estate broker, counsellor, real estate salesman, appraiser, auctioneer, or property manager in such manner as to safeguard the interest of the public. Any person applying for any license or any examination shall first submit to a credit report and satisfy any requirements as established by regulation. A real estate salesman must be employed by a real estate broker broker-in-charge in order to be licensed."
SECTION 6. Section 40-57-100 of the 1976 Code, as last amended by Act 136 of 1981, is further amended to read:
"Section 40-57-100. (1) Any person desiring to act as a real estate broker, counsellor, real estate salesman, appraiser, property manager, or real estate auctioneer shall file with the Real Estate Commissioner an application in writing upon such form and with such detail as the South Carolina Real Estate Commission shall prescribe prescribes, and each applicant shall first pass to the satisfaction of the Commissioner the examination hereinafter prescribed, unless he be is exempt therefrom as herein provided.
(2) Prerequisites for the taking of an examination for the broker license shall be are a minimum of three years of actual experience immediately preceding application as a licensed real estate salesman in this State or in another state having similar requirements and successful completion of at least ninety hours of instruction, including time spent on examinations. The ninety hours shall include the required sixty hours of instruction for a real estate salesman salesman's license in the basic fundamentals of real estate and other related matters, all as specified by the Real Estate Commission and conducted by:
(a) a university or duly accredited college wherever situated , provided such if the credits were earned within five years prior to license application. For purposes of computing required hours of classroom instruction, one credit shall equal equals ten classroom hours; or
(b) a bona fide business school situated in this State and approved by the Commission; or
(c) an institution, organization, or association approved by the Commission; or
(d) correspondence where such the course of instruction is part of an extension department of an accredited college or university.
(3) In lieu of the above prerequisites for the taking of a broker broker's license examination, an applicant may furnish to the Commission evidence of one of the following:
(i) (a) a baccalaureate degree with a major in real estate from an accredited college or university, or a Juris Doctor or Bachelor of Law Laws degree ,; or
(ii) (b) proof acceptable to the Commission of at least five years of equivalent experience immediately preceding license application in business activities closely related to real estate transactions.
(4) Upon satisfactorily passing the broker's examination, the applicant shall apply for his broker's license within ninety days from the examination date. Failure to do so will result in the applicant being required to reapply and be reexamined for his broker's license.
(2) (5) As a prerequisite to taking the first year real estate sales examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of successful completion of thirty classroom hours of instruction in the fundamentals of real estate as prescribed by subsection (1)(2) ,. Upon passing the first year real estate sales examination, a first year real estate sales license must be immediately issued.
(6) within Within one year of passing the first year exam, and prior to completing one year of actual sales experience each applicant must shall satisfactorily complete an additional thirty hours of instruction in order to qualify for the final sales examination. The applicant also shall have held his first year real estate sales license in an active status for no less than a total of twelve months prior to taking the final sales examination and his license must be active at the time of taking the examination. Provided, however, the The final sales examination must be taken not less than twelve nor more than fifteen months following the first year examination. Failure to meet these requirements will result in the cancellation of the first year sales license.
(7) In lieu of the classroom hours required for a final sales license, an applicant may furnish to the Commission one of the following:
(a) satisfactory evidence of at least three years years' experience , immediately preceding application, within the past five years in real estate transactions acceptable to the Commission ,; or
(b) evidence that he has successfully completed at least six credit hours in real estate or real estate related subjects at an accredited college or university ,; or
(c) evidence of a Juris Doctor or Bachelor of Law Laws degree.
(8) As a prerequisite to taking the property manager's examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of successful completion of thirty classroom hours of instruction in the fundamentals of real estate property management, all as specified by the Real Estate Commissioner and conducted by:
(a) a university or duly accredited college wherever situated, if the credits were earned within five years prior to license application. For purposes of computing required hours of classroom instruction, one credit equals ten classroom hours; or
(b) a bona fide business school situated in this State and approved by the Commission; or
(c) an institution, organization, or association approved by the Commission; or
(d) correspondence where such course of instruction is part of an extension department of an accredited college or university.
(9) In lieu of the above prerequisites for the taking of a property manager's license examination, an applicant may furnish to the Commission evidence of one of the following:
(a) a baccalaureate degree with a major in real estate from an accredited college or university, or a Juris Doctor or Bachelor of Laws degree;
(b) satisfactory evidence of at least three years' experience within the past five years in business activities closely related to real estate property management transactions."
SECTION 7. Section 40-57-110 of the 1976 Code, as last amended by Act 136 of 1981, is further amended to read:
"Section 40-57-110. In addition to the proof of honesty, integrity, truthfulness, and good reputation of an applicant for a license, either real estate broker, counsellor, salesman, appraiser, property manager, or real estate auctioneer, the applicant shall submit to a written examination to be prepared and conducted by the Commissioner or an institution designated by the Commission. There shall be a first year sales examination, a final sales examination and a third more comprehensive examination to qualify as a broker."
SECTION 8. Section 40-57-120 of the 1976 Code is amended to read:
"Section 40-57-120. The Commissioner shall issue licenses for two three classifications ,: one for each real estate broker; and one for each real estate salesman; and one for each property manager. The Commissioner shall issue designated licenses within each classification as necessary and as established by regulation. No person may be licensed in more than one classification at any one time."
SECTION 9. Section 40-57-150 of the 1976 Code, as last amended by Act 311 of 1984, is further amended to read:
"Section 40-57-150. The Real Estate Commission is authorized to establish license and application fees by regulation. None of the license fees provided for are is in lieu of any business license fees or taxes imposed by a municipality. In addition to the fees authorized by this section, the Commission is authorized to contract with a state-funded institution of higher learning to conduct examinations for the Commission and the institution is authorized to charge and collect examination fees, not to exceed the reasonable cost to conduct examinations, which must be retained by the institution to defray the cost of conducting those examinations.
The Real Estate Commission may allocate a sum of up to five dollars from each real estate broker's, and salesman's, and property manager's annual renewal fee to the South Carolina Real Estate Commission Education and Research Fund to be used for the following purposes: (1) to carry out the advancement of education and research for the benefit of those licensed under the provisions of this chapter and for the improvement and increased efficiency of the real estate industry in this State; (2) to provide for the analysis and evaluation of factors which affect the real estate industry in South Carolina; and (3) to provide for the dissemination of the results of the research.
The funds collected from the fee authorized in the above paragraph must be deposited in a special fund by the State Treasurer to be used exclusively for the purposes provided in the above paragraph. Withdrawals from the fund must be made upon the written request of the South Carolina Real Estate Commission."
SECTION 10. Section 40-57-160 of the 1976 Code is amended to read:
"Section 40-57-160. It shall be is the duty of the Commissioner to issue a license to engage in the business of real estate broker, counsellor, real estate salesman, appraiser, or property manager, or auctioneer , to all applicants who shall be are duly qualified under, and who shall comply with, all requirements of this chapter and all regulations of the Commissioner. The license shall must be in such form and size as the Commissioner shall prescribe, prescribes and shall must not be transferable. Such The licenses shall expire on June thirtieth of each year."
SECTION 11. Section 40-57-170 of the 1976 Code, as last amended by Act 94 of 1983, is further amended to read:
"Section 40-57-170. (A) The Commissioner may upon his own motion or a verified complaint together with evidence, documentary or otherwise, presented in connection therewith, making out a prima facie case, investigate the actions of any real estate broker, counsellor, real estate salesman, appraiser, or auctioneer, property manager, or any person who shall have has unlawfully assumed to act in either such capacity within this State, and shall have has the power to suspend, revoke, and cancel any license issued under the provisions of this chapter and assess fines , at any time where the licensee shall have has by material misrepresentation obtained a license, or where the licensee is found by the Commissioner to be guilty of any of the following acts:
(1) Making any substantial misrepresentation.
(2) Making any false promises of a character likely to influence, persuade, or induce.
(3) Pursuing a continued and flagrant course of misrepresentation, or making false promises through agents or salesmen or any medium of advertising, or otherwise.
(4) Any conduct in a real estate transaction which demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in such a manner so as to endanger the interest of the public.
(5) Acting for more than one party in a transaction without the knowledge of all parties for whom he acts.
(6) Acting in the dual capacity of broker and undisclosed principal in any transaction.
(7) Representing or attempting to represent, if a salesman, a real estate broker other than his employer without the express knowledge and consent of his employer.
(8) Guaranteeing or authorizing or permitting any person to guarantee future profits which may result from the resale of real property.
(9) Making of dual sets of contracts, written or otherwise, which would falsify the transaction by stating a sales price higher than the actual sales price in an effort to obtain a larger loan from any lender or lending institution or for the purpose of misinforming any governmental agency.
(10) Being convicted in any court of competent jurisdiction of this State, any other state, or any Federal federal court of forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or any other offense involving moral turpitude, or pleading guilty or nolo contendere to any such offense.
(11) Failing, within a reasonable time, to account for or to remit any moneys monies coming into his possession which belong to others.
(12) Paying a commission or compensation to any person for performing the services of a real estate broker, or real estate salesman, or property manager who has not first secured his license under the South Carolina Real Estate Licensing Act ; provided, that a. A South Carolina licensed broker may pay a part of his commission on a cooperative basis to a licensed broker of another state ; provided, further, that such if the nonresident broker does not conduct in this State any of the negotiations for which a fee, compensation, or commission is paid.
(13) Failing, if a broker, to place, as soon after receipt as is practicably possible, any deposit money or other money received by him in a real estate transaction in a separate real estate trust or escrow account maintained by him in a banking institution authorized to do business in this State, wherein the funds shall must be kept until the transaction is consummated or otherwise terminated, at which time a full accounting thereof shall must be made by the broker. Records relative to the deposit, maintenance, and withdrawal of such the funds shall must be properly maintained and be made available to a representative of the South Carolina Real Estate Commission upon request.
(14) Violating any provision of law relating to a buyer's freedom of choice in choosing an attorney, insurance agent, or title insurance agent to handle his real estate transaction.
(15) Failing, if a broker or property manager, to deposit all security deposits, damage deposits, advance fees, and rental proceeds received by the broker or property manager on or before the next banking day in a separate escrow or real estate trust account so designated. All such funds except rental proceeds shall remain until the lease or rental transaction expires or is terminated, at which time a full accounting must be made by the broker or property manager. Rental proceeds must be disbursed within a reasonable time after deposit and clearance of the deposit by the bank. Records relative to the receipt, deposit, maintenance, and withdrawal of the funds must be properly maintained and made available to a representative of the South Carolina Real Estate Commission upon request.
(16) Failing, if a licensee, to report to the Commission in writing by certified mail, return receipt requested, within ten days after receipt by the licensee of those convictions set forth in item (10) of Section 40-57-170(A).
A real estate licensee shall disclose on a form approved by the Commission for which party he is acting and shall not receive compensation from more than one party except with the full knowledge and consent of all parties.
(17) Violating any regulation promulgated by the Commission.
(B) (1) The Commissioner may make any public or private investigation which he considers necessary to determine whether any person has violated this chapter or any order or regulation hereunder, or to aid in the enforcement of this chapter or in the prescribing of regulations and forms thereunder.
(2) The Commissioner may require or permit any person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all facts and circumstances concerning the matter to be investigated.
(3) For the purpose of any investigation or proceeding under this chapter, the Commissioner or any officer designated by regulation may administer oaths or affirmations, and upon his own motion or upon request of any party shall subpoena witnesses, compel their attendance, take evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
(4) Upon failure to obey a subpoena or to answer questions propounded by the investigating officer and upon reasonable notice to all persons affected thereby, the Commissioner, through the Attorney General, may apply to the circuit court for an order compelling compliance.
(C) The Commissioner may:
(1) Issue an order requiring a person to cease and desist from any unlawful practice and to take such affirmative action as in the judgment of the Commissioner will carry out the purposes of this chapter if, after notice and hearing, the Commissioner determines that a person has:
(a) Violated any provisions of this chapter.
(b) Directly or through any agent or employees knowingly engaged in any false, deceptive, or misleading practices in the sale or rental of real estate, including advertising and promotions.
(c) Violated any lawful order or rule of the Commission.
(2) Make findings of fact in writing that the public interest will be irreparably harmed by delay in issuing an order and in such case may issue a temporary cease and desist order. Prior to issuing the temporary cease and desist order, the Commissioner, whenever possible by telephone or otherwise, shall give notice of the proposal to issue a cease and desist order to the person. Every temporary cease and desist order shall include in its terms a provision that upon request a hearing will be held promptly to determine whether or not it becomes permanent."
SECTION 12. Section 40-57-180 of the 1976 Code, as last amended by Act 94 of 1983, is further amended to read:
"Section 40-57-180. Before refusing, suspending, or revoking any license and before issuing any public or private reprimand or assessing any fines, the Commissioner shall notify the applicant or licensee of the charges against him and must grant him an opportunity to be heard. The hearing must be held not less than thirty days nor more than ninety days after the applicant or licensee is notified of the charges against him. If charges are brought against a salesman, his broker must also be notified of the charges. Hearing of the charges must be at the time and place designated by the Commissioner and must be conducted in accordance with the State Administrative Procedures Act."
SECTION 13. Section 40-57-240 of the 1976 Code is amended to read:
"Section 40-57-240. Any real estate broker, counsellor, real estate salesman, auctioneer, appraiser, or property manager who fails to renew or register his license annually and continues to engage in such business shall be deemed is guilty of a misdemeanor and upon conviction thereof shall must be punished by a fine of not more than one five hundred dollars, or imprisonment of not more than thirty days six months, or by such fine and imprisonment, in the discretion of the court.
Any person violating any other provision of this chapter shall be guilty of a misdemeanor, and upon conviction thereof, be punished by a fine of not more than five hundred dollars, or by imprisonment for a term of not more than six months, or by such fine and imprisonment, in the discretion of the court."
SECTION 14. The 1976 Code is amended by adding:
"Section 40-57-250. After a hearing as provided for in Section 40-57-170, or after entering a plea of guilty in lieu of hearing, a licensee adjudged to be in violation of the provisions of Section 40-57-170 of this chapter, or of any regulation or order promulgated under the authority of this chapter, may be required by the Commission to pay a penalty of not less than twenty-five dollars nor more than five hundred dollars to be assessed and collected by the Commission in addition to such sanctions as set forth in Section 40-57-170. Any party penalized under this subsection has the right of review as provided for in Section 40-57-220."
SECTION 15. This act shall take effect upon approval by the Governor./
Amend title to conform.
Rep. HEARN explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
Rep. HEARN asked unanimous consent that S. 462 be read a third time tomorrow.
Rep. KLAPMAN objected.
Rep. S. ANDERSON moved to reconsider the vote whereby S. 462 was given a second reading and the motion was noted.
Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 9, Rep. L. MARTIN having been recognized.
H. 2737 -- Reps. P. Harris, Carnell, Edwards, Kirsh and McLellan: A BILL TO ESTABLISH THE SOUTH CAROLINA INFRASTRUCTURE AUTHORITY, TO PROVIDE FOR THE MEMBERSHIP OF ITS GOVERNING BODY, AND PROVIDE FOR ITS FUNCTIONS, DUTIES, AND POWERS.
Debate was resumed on Amendment No. 9, which was introduced on Tuesday, March 4, by Reps. McABEE, et. al.
Rep. L. MARTIN spoke against the amendment.
Rep. McABEE raised the Point of Order that members of the Governor's staff were in violation of Rule 10.1 by being admitted to the House chamber and lobbying for legislation.
The SPEAKER reminded the staff that such activity was specifically forbidden by the Rules, and that staff members were to refrain from lobbying.
Rep. FAIR asked unanimous consent that the time of the speaker be extended 5 minutes, which was agreed to.
Rep. L. MARTIN continued speaking.
Rep. LEWIS spoke against the amendment.
Rep. FELDER spoke in favor of the amendment.
Rep. L. MARTIN moved to table the amendment.
Rep. LEWIS demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Alexander Anderson, J. Arthur, W. Bailey, K. Bradley, J. Brown, H. Chamblee Cleveland Cooper Dangerfield Day Elliott Faber Fair Foster Freeman Gilbert Gregory Hawkins Hayes Holt Huff Keyserling Kirsh Lake Lewis Martin, D. Martin, L. Mattos McBride Mitchell Neilson Pearce Rhoad Rice Rogers, J. Rogers, T. Shelton Short Taylor Toal Washington White Wilkins Williams Winstead
Those who voted in the negative are:
Schwartz Anderson, S. Arthur, J. Bennett Blackwell Boan Brett Burriss, J.H. Burriss, M.D. Burriss, T.M. Carnell Cork Davenport Derrick Evatt Felder Ferguson Foxworth Gentry Gordon Harris, P. Hearn Helmly Johnson, J.C. Johnson, J.W. Kay Koon Limehouse Mangum McAbee McEachin McKay McLeod McTeer Moss Nettles Petty Phillips, O. Sharpe Simpson Snow Stoddard Sturkie Thrailkill Townsend Tucker Waldrop Woodruff
So, the House refused to table the amendment.
Rep. SHEHEEN moved to table the Bill.
Rep. ALEXANDER demanded the yeas and nays, which were not ordered.
The House refused to table the Bill by a division vote of 8 to 77.
The question then recurred to the adoption of the amendment, which was agreed to.
Rep. McABEE proposed the following Amendment No. 10 (Doc. No. 2469R), which was tabled.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. The General Assembly finds that many communities find it increasingly difficult to finance infrastructure projects because of inadequate credit, diminishment of federal funds, scarcity of capital, inadequate tax bases, and similar reasons, that the inability to finance infrastructure projects in a timely fashion hampers these communities in attracting business and industry and threatens the health and welfare of the State's inhabitants and its environment and that the result of these circumstances is a continuation of the cycle of poverty, poor health, and illiteracy. The General Assembly further finds that establishment of a South Carolina Infrastructure Fund for the purpose of assisting local governments and other specified project sponsors in the financing of infrastructure projects will promote the general well-being of the public, and protect the environment. The Infrastructure Fund may be used to provide financial assistance to project sponsors for infrastructure projects in the form of low-interest loans, credit enhancement, and the other forms of assistance specified herein. Project Sponsors are authorized to contract with private entities to provide water and sewer services. The Infrastructure Fund may be capitalized from time to time through issuance of bonds, loan repayment by local governments, and the receipt of other funds. The General Assembly does not intend that the Infrastructure Fund be utilized as a means to finance project sponsors beyond their capability to meet repayment schedules and debt service requirements of bonds or notes.
SECTION 2. As used in this act:
(a) "Board" means the State Budget and Control Board.
(b) "Infrastructure" means: (i) a facility developed for the purpose of water storage and supply; (ii) a sewer system or treatment facility; or (iii) any enlargement or improvement of any of the projects described in this item.
(c) "Project sponsor" means any county or municipality which acts on its own behalf or which agrees within applicable constitutional and statutory limitations to act as project sponsor on behalf of any special purpose district providing water or sewer services or any other state or local authority, public service district providing water or sewer services, political subdivison or other eleemosynary entity created pursuant to the laws of the State of South Carolina which is empowered to enter into a debt obligation, and which has received approval of the proposed project from a majority of the legislative delegation of the county or counties in which the project will be located.
(d) "Priority Assessment" means the periodic assessment by the board of the chronological order in which the Infrastructure Projects are to be financed in the whole or in part pursuant to the provisions of this act, as determined in accordance with the provisions of this act.
(e) "State" means the State of South Carolina.
SECTION 3. The South Carolina Infrastructure Fund is hereby created to which must be deposited all monies received by the Board for the implementation of the programs authorized under this act including but not limited to the proceeds of any bonds issued by the Board hereunder or any grants by any agency of the United States or any other person.
The Board shall set policy for the administration of the Fund and approve the use of all monies derived under this act. For this purpose, the Board shall:
(1) Establish the criteria for determining an annual Priority Assessment of the Infrastructure Projects considering inter alia, the following factors: (i) the financial soundness of the Infrastructure project as determined in writing before any money is lent to or bonds purchased from the project sponsor; (ii) the public health and welfare requirements within the jurisdiction of the Project Sponsor; (iii) the creditworthiness of the Project Sponsor, and the measures taken by the Project Sponsor to ensure reasonable project costs; and (iv) the availability or lack thereof of other funds to finance the Infrastructure Project;
(2) Develop annually a priority assessment;
(3) Receive applications from Project Sponsors for loans and other assistance as provided for herein and determine the comparative need for the loan or other assistance;
(4) Based upon available funds and based upon the Priority Assessment, enter into loan agreements with Project Sponsors and determine the recipients of other forms of aid as provided in this act. The board shall not deviate from the Priority Assessment except for emergency projects as described below. An emergency project is an Infrastructure Project which involves a situation which endangers or has a clear potential to endanger public health and welfare where the Governor has made a declaration of emergency or the Commissioner of the Department of Health and Environmental Control has declared an imminent health hazard condition.
(5) Monitor loan repayment, available funds, and bonds and obligations issued in connection with the programs established hereunder, and report annually to the Governor, the Joint Bond Review Committee and the General Assembly on the activities and financial status of the Infrastructure Fund during the preceding year and on the need for fund recapitalization.
(6) Establish such general funds, reserve funds, and other accounts, either as subaccounts or as separate accounts in the custody of the Treasurer of the State or of such trustee or depository as the board and the State Treasurer in their discretion determine advisable.
(7) Arrange for yearly audit of the financial activities and accounts in connection with the Fund in cooperation with the State Auditor's Office.
SECTION 5. The Board must implement the programs of this act as soon as practicable. The Board must exercise care in the performance of its duties and the selection of specific infrastructure projects to receive its assistance. The Board may delegate its authority to implement the programs authorized to its Division of Local Government. The Board must retain ultimate responsibility and provide proper oversight for the implementation.
SECTION 6. The board has the power in carrying out the purposes of this act to:
(a) adopt procedures, and regulations pursuant to Act 176 of 1977 for the implementation and operation of the programs authorized by this act;
(b) adopt and use a seal;
(c) sue and be sued in its own name;
(d) enter into and enforce the contracts, agreements, leases, and instruments and prescribe the terms and conditions thereof, and make such offers to contract with such persons, partnerships, firms, corporations, agencies, or entities, whether public or private, considered desirable in furtherance of its purposes subject to the requirements of the South Carolina Consolidated Procurement Code;
(e) acquire by purchase, donation, exchange, or otherwise, hold, improve, mortgage, pledge, or otherwise encumber, manage, lease, convey, transfer, or dispose of any real or personal property, whether tangible or intangible, including its income, revenues, funds, and monies, together with the rights and privileges as may be incidental and appurtenant thereto; any such acquisition or disposition may be pursuant to public or private sale upon the terms and conditions as the authority may set forth in accordance with prudent business practices and the South Carolina Consolidated Procurement Code;
(f) receive and accept funds, grants, aid, or other contributions of value from any source, consistent with the purposes of this act, carry out the terms or provisions or make agreements with respect to such gifts or grants, and do all things necessary, useful, or desirable in connection with the procuring, accepting, or disposing of such gift or grants;
(g) borrow money and issue negotiable or nonnegotiable notes, bonds, or other obligations, including, but not limited to, lease obligations, provide for and secure their payment, provide for the rights of the holders thereof and purchase and hold, cancel, or dispose of any of its own obligations;
(h) purchase or hold securities or other obligations of a Project Sponsor at such prices and with such terms and conditions and in such a manner as the board considers advisable and sell such securities or obligations at such prices without relation to cost and in such manner as the board considers advisable;
(i) deposit monies, until used in the implementation of the programs under this act, constituting the Infrastructure Fund and invest such monies in accordance with Sections 6-5-10, 11-9-660, and 11-9-661 of the 1976 Code, and any other investment which may be lawful for public funds, and withdraw monies in the Infrastructure Fund in implementing the provisions of this act, except to the extent that the board has agreed to or is bound by restrictions in connection with the Reserve Fund, any special reserve fund created as security for any specific series of bonds or any contractual undertaking of the board;
(j) make plans, assessments, and conduct studies and hearings necessary or desirable for the implementation of its duties;
(k) determine the recipients of the board's assistance under this act;
(l) pool or combine obligations incurred by Project Sponsors to the board into a composite bond issue as a means of credit enhancement;
(m) purchase, establish separate funds or accounts for, or otherwise provide for insurance, reserve funds, guarantees, letters of credit, or other forms of credit enhancement as additional security for any bonds issued by the board or obligations incurred by Project Sponsors to finance Infrastructure Projects;
(n) do anything authorized by this act through its officers, agents, employees, and consultants, prescribing their duties and fixing their compensation;
(o) impose reasonable fees and charges for rendering services which, unless otherwise provided for under proceedings authorizing any of its bonds, may be used by it for any of its authorized purposes;
(p) cooperate with and exchange personnel with any agency or instrumentality of the United States and with any agency or political subdivision of this State in the administration of any of the programs authorized by this act in compliance with Act No. 480 of 1978;
(q) procure insurance in compliance with the South Carolina Consolidated Procurement Code against any losses in connection with its property, operations, or assets in amounts and from such insurers as it considers advisable;
(r) render advisory services to any Project Sponsor.
SECTION 7. (a) The board has the power to borrow money and to issue bonds from time to time, in its own name, in amounts it considers necessary to provide funds to carry out any of its purposes and powers under this act, including but not limited to:
(1) the purchase of obligations of Project Sponsors issued for Infrastructure Projects hereunder;
(2) the making of loans to Project Sponsors to finance Infrastructure Projects;
(3) the payment, funding, or refunding of the principal of, or interest, or redemption premium on bonds issued hereunder whether the bonds or interest to be funded or refunded have or have not become due; and
(4) the establishment or increase of reserves to secure or to pay bonds or interest on bonds and all other costs or expenses of the board incident to and necessary or convenient to carry out its corporate purposes and powers.
The board may not, without prior notice to and opportunity for comment by the Joint Bond Review Committee, issue bonds which would cause the total amount of bonds outstanding under this act at any one time, except bonds issued to refund bonds, to exceed one hundred fifty million dollars.
(b) The bonds authorized by this act are limited obligations of the board, the principal of and interest on which are payable solely out of the Infrastructure Fund and which are subject to possible contractual obligations with holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund. Neither the full faith and credit of the State nor the taxing power of the State are considered to be pledged by the board with respect to bonds issued hereunder which fact must be stated on the face of each bond. The bonds issued hereunder do not constitute an indebtedness of the State within the meaning of any state constitutional provision or statutory limitation. Such bonds are an indebtedness payable solely from a revenue producing source or from a special source within the Infrastructure Fund pledged specifically therefor. The bonds do not constitute nor give rise to a pecuniary liability of the board or the State or a charge against the general credit of the board or the State or the taxing powers of the State, and this fact must be plainly stated on the face of each bond. All expenses incurred in carrying out this act are payable solely from the Infrastructure Fund, subject to possible contractual obligations with the holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund, and nothing in this act authorizes the board to incur an indebtedness or liability on behalf of or payable by the State.
(c) The bonds issued hereunder may be executed and delivered at any time as a single issue or from time to time as several issues, may be in such form and denominations, may be of such tenor, may be in coupon or registered form, may be payable in such installments and at such time or times not to exceed forty years or the expected life of the project being funded, whichever is shorter, may be subject to such terms of redemption, may be payable at such place, may bear interest at such rate or rates whether fixed or variable, may be payable at such place and evidenced in such manner, and may contain such provisions not inconsistent herewith, all of which shall be provided in the resolution of the board authorizing the bonds. Any bonds issued under this section may be sold at such public or private sale as may be determined by the board to be most advantageous. The board acting jointly with the State Treasurer shall designate such trustees, paying agents, marketing, and remarketing agents, depositories syndicate manager or managers, and other agents as it considers necessary or advisable in connection with the issuance of such bonds notwithstanding that such agents are not residents in the State or are incorporated under the laws of the United States or any state other than the State. The board may pay all expenses, premiums, insurance premiums, and commissions which it considers necessary from proceeds of the bonds or program funds in connection with the sale of bonds.
(d) Upon the adoption of a resolution authorizing the issuance of bonds, the board must publish notice of the adoption for at least three consecutive publications in at least one newspaper of general circulation in the county or counties in which the Infrastructure Project or projects being financed thereby are to be located. Any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds under this act or to obtain any relief upon the ground that the issuance of such bonds is invalid must be filed as an action de novo in the court or courts of common pleas in the county or counties in which the Infrastructure Project or projects to be financed with such bonds are located no later than twenty days following such publication of notice. After the expiration of this twenty day period, no right of action shall be asserted, nor shall the validity of the resolution or any of its provisions or the bonds issued pursuant thereto be open to question in any court or agency upon any grounds whatsoever except for a legal or administrative action initiated by the Attorney General.
(e) The resolution under which the bonds are authorized to be issued or any security agreement, including an indenture or trust indenture to be entered into in connection therewith, may contain any agreements and provisions customarily contained in instruments securing bonds, including, but not limited to, provisions respecting the fixing and collection of obligations, the creation and maintenance of special funds, and the rights and remedies available, in the event of default, to the bondholders or to the trustee under such security agreement as the board considers advisable. In making such agreements the board does not have the power to obligate itself except with respect to the Infrastructure Fund and cannot incur a pecuniary liability or a charge upon the general credit of the State or against the taxing powers of the State. The resolution of the board authorizing any bonds and any security agreement securing bonds shall provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or security agreement, the payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect any obligations and to apply any revenues pledged in accordance with such proceedings or the provisions of the security agreement. Any security agreement shall provide also that, in the event of default in payment or the violation of any agreement contained in the security agreement, it may be foreclosed by proceedings at law or in equity, and may provide that any trustee under the security agreement or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale, if he is the highest bidder. No breach of any such agreement may impose any pecuniary liability upon the State or any charge upon the general credit of the State or against the taxing power of the State or against any revenues or funds of the board except those revenues or funds in the Infrastructure Fund pledged specifically therefor. Monies in the funds and accounts held by a trustee shall be invested or deposited by such trustee.
(f) Any bonds that are outstanding may at any time be refunded by the board by the issuance of its refunding bonds in such amount as the board considers necessary but not to exceed an amount sufficient to refund the principal of the bonds to be refunded, together with any unpaid interest thereon and any premiums, expenses, and commissions necessary to be paid. The refunding may be effected whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds for the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of any bonds to be refunded cannot be compelled to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they may be called for redemption, prior to the date on which they are by their terms subject to redemption. All refunding bonds issued under this section are payable in the same manner and under the same terms and conditions as are provided for the issuance of bonds.
(g) The proceeds from the sale of any bonds shall be credited to any general or reserve account established by the board as part of the Infrastructure Fund until applied for the purpose for which the bonds were issued. Any premium and accrued interest received in any such sale must be applied to the payment of the principal of or the interest on the bonds sold. If for any reason any portion of the proceeds of a bond sale is not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds.
SECTION 8. It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this act. Nothing contained in this section is construed as relieving any person from the duty of exercising reasonable care in selecting securities.
SECTION 9. The bonds and the income therefrom are exempt from all taxation in the State except for inheritance, estate, or transfer taxes. All documents issued in connection with this act are exempt from stamp taxes.
SECTION 10. The board may dispose of any property acquired by it at public sale for fair market value. If the board does not advertise the sale of property or take bids thereon at a public sale, then the reasons for such action must be set forth in writing and be made available for public inspection. In evaluating the consideration it receives for any property or the use thereof, the board may consider nonpecuniary benefits and benefits to the citizens of the State.
SECTION 11. (a) The board may establish and maintain a reserve fund for one or more issues of bonds or for obligations incurred by Project Sponsors to finance Infrastructure Projects, to which there may be deposited or transferred:
(1) Any monies appropriated by the General Assembly for the purpose of such reserve fund;
(2) Any proceeds of bonds required to be deposited in such reserve fund by terms of a contract between the board and its bondholders or a resolution of the board with respect to the proceeds of such bonds;
(3) Any other money or funds of the board that it decides to deposit in the fund.
(b) Subject to paragraph (c) of this section, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds for which such fund is pledged as the interest and principal became due and payable or, if no other monies of a Project Sponsor are available therefore, to prevent a default by payment of the principal of and interest on the obligations of such Project Sponsor incurred to finance an Infrastructure Project for which such reserve fund has been pledged. Money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on such bonds or obligations and the principal of such bonds or obligations then maturing and payable, whether by reason of maturity or mandatory redemption for which payments other money of the board or Project Sponsor, as the case may be, is not then available. As used in this paragraph "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the board. The required debt service reserve shall be an aggregate amount equal to at least the largest amount of money required by the terms of all contracts between the Board and its bondholders to be raised in the then current or any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds, and sinking fund payments required by the terms of any such contracts to sinking funds established for the payment or redemption of such bonds.
(c) Money in any reserve fund in excess of the required debt service reserve as defined in paragraph (b) of this section, whether by reason of investment or otherwise, may be withdrawn at any time by the board and transferred to another fund or account of the board established hereunder or to the general fund of the State, subject to the provisions of any agreement with the holders of the bonds or obligations for which such reserve fund is pledged.
(d) Money in any reserve fund may be invested in investments authorized by this act.
(e) For purposes of valuation, investments in any reserve fund shall be valued at par, or if purchased at less than par, at cost unless otherwise provided by resolution of the board. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in such reserve fund.
(f) In order to assure the maintenance of the required debt service reserve in the reserve funds, the General Assembly may annually appropriate to the board for deposit in one or more of the funds the sum, certified by the chairman of the board to the General Assembly, that is necessary to restore one or more of the funds to an amount equal to the required debt service reserve. The chairman annually, before December 1, shall make and deliver to the General Assembly his certificate stating the sum required to restore the funds to that amount. Nothing in this subsection creates a debt or liability of the State to make any appropriation.
(g) Subject to the provisions of any agreement with its boundaries, the board may combine the reserve fund established for each issue of bonds into one or more reserve funds.
SECTION 12. (a) Every Project Sponsor is authorized and empowered to contract with the board with respect to any loan or purchase of its obligations pursuant hereto, and the contracts in connection therewith may be in any form agreed to by the board and the Project Sponsor, including a customary form of bond ordinance or resolution. The term of such loan or the obligations so purchased may not exceed the earlier of forty years or the term of any bonds issued by the board to purchase such obligations or fund such loan. Such obligations may be in the form of bonds, notes, lease obligations, or any other evidence of indebtedness. Such obligations may, at the option of the Project Sponsor and the board, consist of general obligation or revenue debt and may bear interest at a fixed or variable rate. Every Project Sponsor is authorized and empowered to pay fees and charges required to be paid to the board for its services. Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds, any Project Sponsor may sell its obligations to the board, without limitation as to denomination, at a private sale at such price or prices as may be determined by the board and the Project Sponsor. Nothing in this act shall be construed as to authorize a Project Sponsor to exceed any bond issue or debt limitations imposed by charter or municipal, county or state governing bodies.
(b) Upon the execution and delivery by a Project Sponsor of any contract or obligations to the board, the Project Sponsor shall be considered to have agreed that in the event of its failure to pay interest or principal on such obligations owned or held by the board when payable, all statutory defenses to nonpayment are waived. The board may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the Project Sponsor. The board shall carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.
(c) Notwithstanding any other provision of law, to the extent that any department or agency of the State, including the Treasurer of the State, is the custodian of money payable to the Project Sponsor (other than for goods or services provided by the Project Sponsor), at any time after written notice to the department or agency head from the board that the Project Sponsor is in default on the payment of principal or interest on the obligations of the Project Sponsor than held, owned, or guaranteed by the board, the department or agency shall withhold the payment of that money from that Project Sponsor and pay over the money to the board for the purposes of paying principal of and interest on such obligations. Any withholding of payment by the State Treasurer of custodial funds payable to the Project Sponsor must be authorized by action of the General Assembly.
(d) As a condition of all loan approvals to Project Sponsors, the board shall, through regulations and by contract, require accountability of the Project Sponsors. At a minimum, Project Sponsors shall be required to: (i) adhere to generally accepted accounting and audit standards as well as generally accepted managerial and administrative procedures; (ii) identify intended sources of revenue which may consist of charges, fees, or taxes for the services and benefits provided to the residents of the serviced area or the users of the Infrastructure Project sufficient to meet all debt obligations as well as all operational costs of the project facility, including, if the board deems necessary, a separate reserve account to provide for debt service or maintenance and replacement of the Infrastructure Project; (iii) perform annual audits relative to the debt obligation to the board; and (iv) publicly advertise and competitively bid all aspects of the construction project.
SECTION 13. The board has the power to enter into service agreement contracts with established public or private financial institutions for the purpose of day-to-day credit management and loan servicing and limit the liabilities of these institutions in regard to these service agreements. Upon approval of a loan to a Project Sponsor, a loan administrator may be appointed on an individual project basis, or for groups of projects, and may be selected from all banks, trust companies, and financial institutions licensed as provided by law, and may be given the right to enforce payment of all debt obligations and any covenants relating to the obligations. The board may vest in the loan administrator the right, in the event of a default, to institute receivership authority as authorized by law.
SECTION 14. Neither this act nor anything herein contained is construed as a restriction or limitation upon any powers which the board might otherwise have under any laws of this State, but is construed as cumulative.
SECTION 15. The board shall implement its programs in accordance with regulations promulgated under the provisions of Act 176 of 1977.
SECTION 16. The provisions of this act are hereby declared to be severable and if any part or portion of this act is held to be unconstitutional, the remaining parts or portions shall remain in full force and effect.
SECTION 17. This act shall take effect upon approval by the Governor./
Amend title to conform.
Rep. McABEE explained the amendment.
Rep. TOAL spoke against the amendment.
Rep. TOAL continued speaking.
Rep. McABEE spoke in favor of the amendment.
Rep. TOAL moved to table the amendment and demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Alexander Anderson, J. Arthur, W. Bailey, G. Bailey, K. Beasley Bradley, J. Brown, H. Brown, R. Burriss, T.M. Carnell Cleveland Cork Davenport Day Elliott Faber Fair Ferguson Foster Foxworth Freeman Gilbert Gordon Gregory Hawkins Hayes Hendricks, B. Holt Johnson, J.W. Keyserling Kirsh Lake Lewis Limehouse Martin, L. Mattos McBride McEachin McTeer Neilson Nettles Ogburn Pearce Petty Rawl Rhoad Rice Rogers, J. Rogers, T. Sheheen Shelton Short Simpson Taylor Toal Waldrop Washington White Wilkins Winstead
Those who voted in the negative are:
Schwartz Anderson, S. Arthur, J. Barfield Bennett Boan Burriss, J.H. Burriss, M.D. Chamblee Felder Gentry Harris, P. Hearn Huff Johnson, J.C. Kay Koon Mangum McAbee McKay McLeod Moss Sharpe Stoddard Sturkie Thrailkill Townsend Tucker Woodruff
So, the amendment was tabled.
Reps. LEWIS and J. ROGERS proposed the following Amendment No. 11 (Doc. No. 2475R).
Reference is to the amendment dated March 5, 1986, as introduced by Rep. McAbee (Document No. 2469R) in SECTION 5, page 6, lines 3, 4, and 5 by striking /The Board may delegate its authority to implement the programs authorized to its Division of Local Government. The Board must retain ultimate responsibility and provide proper oversight for the implementation./
Amend title to conform.
Rep. LEWIS was recognized.
Rep. HEARN inquired if a member must have voted on the prevailing side to note a motion to reconsider.
The SPEAKER Pro Tempore replied in the affirmative.
Rep. HEARN then inquired if the member had voted on the prevailing side.
The SPEAKER Pro Tempore replied in the affirmative.
Rep. J. ROGERS moved that the House recede until 12:00 Noon which was adopted by a division vote of 49 to 24.
Further proceedings were interrupted by the House receding, the pending question being consideration of Amendment No. 11, Rep. LEWIS having been recognized.
At 11:58 A.M. the House resumed, the SPEAKER Pro Tempore in the chair.
At 12:00 Noon the Senate appeared in the Hall of the House.
The President of the Senate called the Joint Assembly to order and announced that it had convened under the terms of a Concurrent Resolution adopted by both Houses.
The Reading Clerk of the House read the following Concurrent Resolution:
S. 724 -- Senators Lourie, K. Patterson, Courson and Giese: A CONCURRENT RESOLUTION TO INVITE MAJOR GENERAL ROBERT B. SOLOMON, COMMANDING GENERAL OF THE UNITED STATES ARMY TRAINING CENTER AT FORT JACKSON, SOUTH CAROLINA, TO ADDRESS A JOINT SESSION OF THE GENERAL ASSEMBLY AT 12:00 NOON ON WEDNESDAY, MARCH 5, 1986.
Major General Robert B. Solomon and distinguished party were escorted to the rostrum by Senators Lourie, K. Patterson and Courson and Representatives T.M. BURRIS, TOAL, TAYLOR and EVATT. The President of the Senate recognized Senator Lourie who introduced Governor Richard Riley.
"Thank you very much. Distinguished guests, ladies and gentlemen, distinguished members of the Joint Assembly: It is a privilege for the Richland County Legislative Delegation to have this opportunity to join with you in honoring a great American on this occasion, which will be the first time we have had the privilege in the history of our State to hear from the Commanding General of one of America's great military installations. Rep. Parker Evatt, Chairman of the Richland County House Delegation and myself, and on behalf of our colleagues of the Richland County Legislative Delegation, would like to thank the Joint Assembly for allowing us this opportunity.
I want to present to you the gentleman who will introduce our honored guest. Certainly our distinguished Governor needs no introduction to this body; he has addressed us now for eight years. And, General, if you will indulge me just for half a minute, I want to speak about the Governor.
This will probably be the last opportunity that, certainly, I will have to present the Governor, while he is Governor, to such a distinguished audience. His administration has been landmarks for our state--the Education Improvement Act, the Medically Indigent Care Act, reform of the Public Service Commission. Of course, I could go on and on, and with the help of many of you, they have been some great years, and we're going to really miss him. But we're honored to have you back today to introduce our distinguished guest. Governor Riley, ladies and gentlemen."
Governor Richard Riley introduced the honored guest as follows:
"Thank you so much, Senator Lourie. Mr. President, Mr. Speaker Pro Tempore, members of this Joint Assembly, my friends: It's a pleasure for me to be here to have the honor to introduce to this Joint Assembly a member of the senior leadership of the United States Army, Major General Robert B. Solomon. For more than thirty-five years, General Solomon has served the Army and our nation in numerous command and staff assignments across the nation and around the world, including tours during the Korean and Viet Nam conflicts. I'm also pleased to have General Eston Marchant with us here, who is our leader in the National Guard, and what a fine reputation they have made for us.
Since his promotion to General Officer in 1976, General Solomon has held several key Army assignments, including Chief of Public Affairs of the Army from 1977 to 1979; he served as Deputy Chief of Staff of the United States Pacific Command from 1979 to 1981; and, Deputy Inspector General of the Army from 1981 to 1984. Now for the past twenty months, General Solomon has been the Commander of Fort Jackson, leading a community of 25,000 soldiers and civilians--a community which is very, very vital to Columbia, to the Midlands and to the State of South Carolina, and what fine leadership he has provided for this state through this very important position. He has the unique responsibility of overseeing the quality of soldiers, not only in the Army of today, but in the Army of tomorrow.
It is now my privilege as Governor of this state, and representing all of you and all of the people of the state, to say thank you to General Solomon and to present him to this Joint Assembly. An outstanding soldier, an outstanding leader, an outstanding gentleman, and a friend of South Carolina, Major General Robert B. Solomon."
General Solomon:
"Governor Riley, Lieutenant Governor Daniel, Speaker Schwartz, General Marchant, distinguished members of the General Assembly, ladies and gentlemen. It is certainly one of the signal honors, if not the signal honor of my thirty-five years of military service, to be present here today to have this opportunity to speak to you, and I do so on behalf of the soldiers and civilians of Fort Jackson. I believe my presence here is a demonstration of your recognition of their collective service and devotion to duty in our efforts to keep this great nation secure and free. And so therefore it is with appreciation for the traditionally firm support that South Carolina provides to all of the members of the armed service that I speak to you today.
First let me say I have been here for twenty months, as the Governor said, and during that time there has never been a shred of doubt in my mind why the Army's largest initial entry training installation belongs here in this great state of South Carolina. It is not simply because of the superb weather and hospitality of the state, but rather the attitude and the values for which this state is famous and which all of you represent.
Just thirty minutes ago as I approached this imposing State House, surrounded as it is by statuary commemorating George Washington and other heroes of the past, I was again reminded of the patriotism and volunteerism for which South Carolina is renowned. This state is justifiably famed for the outstanding service and sacrifices through history of its sons and daughters. Francis Marion, Thomas Sumter, Andrew Pickens, whose names adorn a marble monument on the Capitol's north side, and Andrew Jackson, a Carolinian whose name our post proudly bears and who joined the Revolutionary effort while still a youth of 13, recall not only to every South Carolinian, but to every student of history, South Carolina's role in our revolutionary struggle for independence. When the cause seemed lost, these men and heroic women such as Elizabeth Jackson, Emily Geeger and Rebecca Motte, and many others like them helped keep the revolutionary fervor, the cause alive at the Battles of Cowpens, Camden, Fort Moultrie and Eutawville and refused to let it fade even in the face of the direst adversity. Because when they were needed -- they were there.
That spirit of patriotism carried down through the generations to the 20th century citizens of South Carolina--Levi Folk, James Hanaberry, and Charles Sontag, volunteers during the 1898-1902 period, whose names also stand under the figure of the soldier of the turn of the century, Medal of Honor awardees like George Mabry, Charles Murray, Elliott Williams and Webster Anderson, and fighters and warriors like J. Willis Cantey, who when they were needed -- were there. And those Columbia businessmen who in 1917 held a rally and in less than one hour raised the funds to purchase land which is still an integral part of Fort Jackson. That land was part of the estate of General Wade Hampton, another famous son and leader of South Carolina.
On that nucleus of land, Camp Jackson was established in 1917 as a base to train American soldiers for service in World War I. More than 45,000 soldiers passed through the camp in 1917 and 1918. You know well that the post was closed and reverted to state control after the armistice of that war, intended to end all wars, but in 1940 it reopened as a Federal installation to gear up for World War II -- a period during which an estimated half million Americans received training at Fort Jackson.
Since its very founding, Fort Jackson and Columbia have enjoyed a close and most unique relationship. The annexation of the post by the City of Columbia in 1968, the only such annexation of a military installation in the United States to date, was a concrete demonstration of the mutual regard and very close cooperation which the city and the fort have enjoyed throughout the fort's existence.
Many Fort Jackson facilities and events are open to the public. The post has opened its doors and its hearts to many of the major civic events in our state, including the South Carolina Special Olympics for the past 17 years, and thousands of Columbians and citizens of Richland and Lexington counties come out for our Fourth of July celebration, our Torchlight Tattoo, to participate along with the soldiers in saluting and reaffirming our allegiance to our nation and flag. We also stand ready to provide support in emergencies when it was necessary. You may recall the winter of 1979 when a severe ice storm paralyzed the Columbia metropolitan area. Fort Jackson provided shelter and food to thousands of stranded citizens over that period.
Beyond its ties of shared citizenship and friendship, Fort Jackson, as the Governor indicated, has a significant impact on the economy of South Carolina and the Columbia area. Nearly one in every five families in Columbia depends directly upon Fort Jackson for a part of their livelihood. In fiscal year 1985, which ended in October, our military payroll for the post was 236 million dollars. Additionally, some 3,260 South Carolinians work on the post, dedicated civilians who earn approximately 50 million dollars a year in salaries. We purchase another 100 million dollars in goods and services from the South Carolina area.
Almost 10,000 of our military family members reside in the Columbia area, and there are more than 60,000 retired military families in the state. The Midlands and road to the coast have become a retirement home of choice for an increasing number of former servicemen and women and their families, drawn by the favorable weather and hospitality, but primarily by the excellent services available at Fort Jackson, which continue to be modernized.
The economic ties between Columbia and Fort Jackson are surely mutual and supportive, and we believe that Fort Jackson's presence will continue, as we grow, to contribute to the economic growth of the state that all of us seek.
While this is a brief snapshot of the economic benefit to the community of the post's presence, let there be no doubt as to the sole reason that Fort Jackson is in South Carolina. As one of, if not the most cost effective posts on which to train soldiers in our nation, the sole purpose of Fort Jackson, our mission, is to receive, train, and graduate initial entry soldiers, some of you know them as basic trainees or boots, who have developed the physical fitness and basic occupational skills, the self-discipline and motivation required to serve and survive on a battlefield. Many of you have heard of recent reports regarding the quality of junior soldiers and concern that we cannot recruit sufficient personnel for the Army. I want to include a word of reassurance to counter what I regard as misleading information. The quality of young men and women who continue to enlist in numbers which are adequate to Army requirements is such that I can stand before you and report, without qualification, that the youth of America entering the Army do meet all of the qualifications for graduation I have outlined -- they are fit, they are skilled and they are motivated. You can be proud of them. More than 91% are high school diploma graduates with a generous sprinkling of college-trained men and women. By any indicator you might use to measure self-discipline and motivation, today's soldiers are as good as any who have served in the past. AWOL's, desertion, and crimes against property and people are all at historic lows in the United States Army. Reenlistment is at an historic high for a peacetime army.
As a personal observation, I believe today's Army is at one of its highest peaks in my almost 35 years of service. Thanks to adequate funding provided by the Congress and the support of the vast majority of Americans, we've improved our military deterrent capability significantly over the past four years. The Chief of Staff of the Army testified before Congress that he was concerned we were developing a hollow Army. We have an army of potentially superb soldiers. You only find out that a soldier is superb when he or she is under fire and having to perform, but we have potentially superb soldiers in the Army today. We're continuing to strengthen family programs because we believe 'the stronger the family, the more ready the Army!'. We're getting quality equipment. Our units, both active and reserve components, continue to field modern systems such as the Abrams tank, the Bradley fighting vehicle, and the attack helicopters about which you read earlier this week. During the past two years, the National Guard and Army Reserve have received $3.2 billion in modernized equipment. I should, at this point, tell you that the South Carolina Army National Guard, under the very astute leadership of Major General Eston Marchant, is one of the finest in this nation. You can be very proud of that group. That is why they will be equipped with the Apache assault helicopter. The 120th Army Reserve Command across this state is likewise one of the Army's finest.
As a final word on the quality of American youth, these soldiers, male and female alike, are volunteers following a long and cherished American tradition of volunteerism. At the present time, there is no need to resort to a military conscription such as that used in the past. The draft was a necessity, but a coercive system, used in times of national emergency. The American tradition for all but 33 years of our 209 year history, has been for citizens to volunteer to safeguard this nation, to volunteer for military service. And American youth, generally representative of America's population overall, are doing so in the proper numbers.
Because it is important that we sustain that influx of quality young volunteers, I would be remiss if I came before a body like this and I did not comment on widely reported budget constraints, which the leadership of the Army believes could adversely affect Army readiness and affect the programs to restructure and modernize our Army, efforts which have come so far in these last few years.
Today the American people face a world that in some ways is no less threatening and a future that is no more sure than that faced by the handful of patriots at Concord Bridge, Cowpens or Camden more than two centuries ago. It is a world armed with increasingly lethal weaponry. The difference, of course, is that the United States today is a superpower. It has strong and capable land forces dedicated to the defense of its vital interests. Since 1775, the American people have repeatedly learned, sometimes sadly, that American military strength is required as a deterrent to aggression and a force for peace. Armed with that realization and what I hope is a clear appreciation of the potential dangers of the future, I believe you and the citizens you represent should continue to demand a well-trained and effective Army with quality soldiers equipped with the best the nation can produce. Who among us wants less for those we ask to defend us?
Never before in its peacetime history has the United States Army faced so many diverse challenges. It is important that all of us, not only the professional soldier, but the informed legislator and citizen, understand the changing spectrum of warfare and the new and insidious threats confronting our society. One need only to read the article which appeared in The State this morning about suicide squads being organized to assault American embassies, or potentially American soil, to understand that soldiers today must be prepared and trained to face not only the conventional conflicts as in the past, but the more difficult challenges of low intensity conflict, terrorism, and yes, peacekeeping duties as well.
In a recent press conference, Secretary of Defense Caspar Weinberger stated 'The world is at war.' The war the Secretary referred to is not a global conflict and it is not waged between fully mobilized armies. Rather, these wars are smaller conflicts, limited in geographical area and usually waged to achieve specific political and social results.
The conflicts in Central America, Africa and Afghanistan are but a few current examples of this face of warfare. They are called by several names -- low intensity warfare, insurgency, guerrilla wars, and terrorism. We must understand that most of these conflicts do not have as an objective the liberation of people, but rather their subjugation. Many of these conflicts originate in the struggle for freedom and self-determination of emerging Third World societies, but in many instances, the Soviet Union and their surrogates or proxies exploit this universal desire for freedom, instilling fear among populaces, attacking the infrastructure, assassinating innocent victims and creating chaos.
The United States Army and our sister services must be capable of dealing with these challenges when they clearly threaten our security and national self-interest. Sustaining the high degree of readiness to ensure that capability has been a very costly process. We've increased our military readiness by improved training in terms of total training days, flying hours, training simulators, use of the National Training Center at Fort Irwin, California, and joint and combined exercises with our allies. The training tempo has increased significantly.
Beyond the statistical measures of readiness there are the intangible, the immeasurable dimensions to service in the Army and in the armed services that often provide the key to victory and these warrant a brief mention before this distinguished forum.
These are the convictions that are closer to the central system of the Army -- its people, its professional ethic, and its leadership. These represent the Army's values, its strengths, and its commitments to the national purpose; for where there stands a soldier of the United States Army, there also stands a citizen of the United States of America.
1986 has been declared the Year of Army Values. The leadership of your Army will make a concerted effort to instill, to inculcate each soldier with the human values, with American values we have cherished since our founding. Secretary of the Army John O. Marsh described two tiers of values in announcing the Army theme. First, there are values which are common to all great armies and soldiers -- discipline and competence, loyalty and duty, courage and commitment. And then there are some uniquely American values forged during the Revolution and imbedded in our Constitution and Bill of Rights. We believe these make our nation great, our Army strong, and it is these values which we hope to imprint indelibly on every citizen-soldier fortunate enough to train at Fort Jackson.
It is the particular good fortune of all of us who serve at Fort Jackson that we do so in a state where these traditional values are preserved and encouraged. As you visit Fort Jackson, as I cordially invite all of you to do, you will note a post characterized by enthusiasm and change. From the trainees and the cadre......to the new commissary, education center and chapel-child care center recently opened.....to the more than 50 million dollars in new construction underway, I promise you'll be proud of and impressed by what you observe.
I hope what you see will remind you of what freedom requires. George Washington stated, 'The most effectual means of preserving peace is to prepare for war.' The fourth verse of the magnificent poem which was adopted as our national anthem may say it best.
'O, thus be it ever when free men shall stand
Between their loved homes and the wars'
desolation.
Then conquer we must when our cause it is just,
And this be our motto: In God is our trust.
And the Star Spangled Banner in triumph we wave
O'er the land of the free and the home of the
brave.'
With your understanding and support, I assure you the soldiers of Fort Jackson and our one and one-half million in the total Army, 780,000 active, and 700,000 reserve components in the United States Army will continue to stand ready to defend any just cause, and to ensure that our great national banner continues to wave in freedom over this blessed nation and state.
Again, thank you for the honor of this opportunity.
Upon the conclusion of his address, Major General Solomon and his escort party retired from the Chamber.
The purposes of the Joint Assembly having been accomplished, the PRESIDENT announced that under the terms of the Concurrent Resolution the Joint Assembly would recede from business.
The Senate accordingly retired to its Chamber.
At 12:35 P.M. the House resumed, the SPEAKER Pro Tempore in the Chair.
Rep. MANGUM moved that the House recede until 2:30 P.M.
Rep. GREGORY moved that the House do now adjourn.
Rep. L. MARTIN demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Bennett Blackwell Bradley, J. Carnell Cork Derrick Felder Foster Foxworth Freeman Gilbert Gregory Griffin Hayes Kay Kirsh Koon Mangum Martin, D. McAbee McEachin McKay Nettles Phillips, O. Rawl Rice Rigdon Russell Sturkie Townsend Winstead
Those who voted in the negative are:
Schwartz Alexander Anderson, S. Arthur, J. Boan Brown, H. Burriss, M.D. Burriss, T.M. Cleveland Cooper Dangerfield Day Faber Gentry Harris, J. Hearn Hendricks, B. Huff Johnson, J.C. Keyserling Klapman Lake Lewis Martin, L. McBride McLellan Ogburn Petty Rhoad Rogers, J. Rogers, T. Sharpe Sheheen Shelton Snow Taylor Toal Tucker Washington White Wilkins Williams
So the House refused to adjourn.
The question then recurred to the motion to recede until 2:30 P.M., which was agreed to.
On motion of Rep. OGBURN, with unanimous consent, the following Bill was introduced, read the first time, and referred to appropriate committee:
H. 3606 -- Rep. Ogburn: A BILL TO AMEND SECTION 37-4-301, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPERTY AND LIABILITY INSURANCE SO AS TO PROVIDE THAT ANY CHARGE FOR INSURANCE AGAINST LOSS OF OR DAMAGE TO PROPERTY MAY BE SUBJECT TO A MINIMUM CHARGE OF TWO DOLLARS.
Referred to Committee on Labor, Commerce and Industry.
Further proceedings were interrupted by the House receding, the pending question being consideration of Amendment No. 11, Rep. LEWIS having been recognized.
At 2:30 P.M. the House resumed, the SPEAKER in the Chair.
The question of a quorum was raised.
A quorum was later present.
Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 11.
H. 2737 -- Reps. P. Harris, Carnell, Edwards, Kirsh and McLellan: A BILL TO ESTABLISH THE SOUTH CAROLINA INFRASTRUCTURE AUTHORITY, TO PROVIDE FOR THE MEMBERSHIP OF ITS GOVERNING BODY, AND PROVIDE FOR ITS FUNCTIONS, DUTIES, AND POWERS.
Debate was resumed on Amendment No. 11 by Reps. LEWIS and J. ROGERS.
Rep. LEWIS explained the amendment and moved to adjourn debate upon the amendment which was adopted.
Rep. BLACKWELL proposed the following Amendment No. 17, which was adopted.
Amend as and if amended.
Amend SECTION 2 Part (c) to add (after "municipality,") the words "special service district"
and (after "municipalities,") the words "or special service districts." so that the entirety of Part (c) shall read:
(c) "Project Sponsor" means any county, municipality, special service district, or any combination of counties, municipalities, or special service districts."
Rep. BLACKWELL explained the amendment.
The amendment was then adopted by a division vote of 57 to 1.
Debate was resumed on Amendment No. 2, which was introduced on Tuesday, March 4, by Reps. McLELLAN, P. HARRIS and KEYSERLING.
The amendment was withdrawn.
Reps. J. ANDERSON, KEYSERLING, LEWIS, McLELLAN and J. ROGERS proposed the following Amendment No. 18, which was tabled.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. The General Assembly finds that many communities find it increasingly difficult to finance infrastructure projects because of inadequate credit, diminishment of federal funds, scarcity of capital, inadequate tax bases, and similar reasons, that the inability to finance infrastructure projects in a timely fashion hampers these communities in attracting business and industry and threatens the health and welfare of the State's inhabitants and its environment and that the result of these circumstances is a continuation of the cycle of poverty, poor health, and illiteracy. The General Assembly further finds that establishment of a South Carolina Infrastructure Fund for the purpose of assisting local governments and other specified project sponsors in the financing of infrastructure projects will promote the general well-being of the public, encourage economic growth and development, and protect the environment. The Infrastructure Fund may be used to provide financial assistance to project sponsors for infrastructure projects in the form of low-interest loans, credit enhancement, and the other forms of assistance specified herein. Project Sponsors are authorized to contract with private entities to provide water and sewer services. The Infrastructure Fund may be capitalized from time to time through issuance of bonds, loan repayment by local governments, and the receipt of other funds. The General Assembly does not intend that the Infrastructure Fund be utilized as a means to finance project sponsors beyond their capability to meet repayment schedules and debt service requirements of bonds or notes.
SECTION 2. As used in this act:
(a) "Board" means the governing body of the South Carolina Jobs-Economic Development Authority.
(b) "Infrastructure Project" means: (i) a facility developed for the purpose of water storage and supply; (ii) a sewer system or treatment facility; (iii) the construction of toll roads or toll bridges; or (iv) any enlargement or improvement of any of the projects described in this item.
(c) "Project Sponsor" means any county or municipality which acts on its own behalf or any special purpose district providing water or sewer services or any other state or local authority, public service district providing water or sewer services, political subdivision or other eleemosynary entity created pursuant to the laws of the State of South Carolina which is empowered to enter into a debt obligation, and which has received approval of the proposed project from a majority of the legislative delegation of the county or counties in which the project will be located.
(d) "Priority Assessment" means the periodic assessment by the board of the chronological order in which the Infrastructure Projects are to be financed in the whole or in part pursuant to the provisions of this act, as determined in accordance with the provisions of this act.
(e) "State" means the State of South Carolina.
SECTION 3. The South Carolina Infrastructure Fund is hereby created as a separate fund of the South Carolina Jobs-Economic Development Authority to which must be deposited all monies received by the Board for the implementation of the programs authorized under this act including but not limited to the proceeds of any bonds issued by the Board hereunder or any grants by any agency of the United States or any other person.
The Board shall set policy for the administration of the Fund and approve the use of all monies derived under this act. For this purpose, the Board shall:
(1) Establish the criteria for determining an annual Priority Assessment of the Infrastructure Projects considering inter alia, the following factors: (i) the financial soundness of the Infrastructure project as determined in writing before any money is lent to or bonds purchased from the project sponsor; (ii) the potential of the Infrastructure Project to create or retain jobs or other public benefits; (iii) the public health and welfare requirements within the jurisdiction of the Project Sponsor; (iv) the creditworthiness of the Project Sponsor, and the measures taken by the Project Sponsor to ensure reasonable project costs; and (v) the availability or lack thereof of other funds to finance the Infrastructure Project;
(2) Develop annually a priority assessment;
(3) Receive applications from Project Sponsors for loans and other assistance as provided for herein and determine the comparative need for the loan or other assistance;
(4) Based upon available funds and based upon the Priority Assessment, enter into loan agreements with Project Sponsors and determine the recipients of other forms of aid as provided in this act. The board shall not deviate from the Priority Assessment except for emergency projects as described below. An emergency project is an Infrastructure Project which (i) is dependent upon a quick response and that would fail if it had to wait until the next annual priority list is prepared taking into account whether other reasonable forms of financing are available or (ii) involves a situation which endangers or has a clear potential to endanger public health and welfare where the Governor has made a declaration of emergency or the Commissioner of the Department of Health and Environmental Control has declared an imminent health hazard condition.
(5) Monitor loan repayment, available funds, and bonds and obligations issued in connection with the programs established hereunder, and report annually to the Governor, the Joint Bond Review Committee and the General Assembly on the activities and financial status of the Infrastructure Fund during the preceding year and on the need for fund recapitalization.
(6) Establish such general funds, reserve funds, and other accounts, either as subaccounts or as separate accounts in the custody of the Treasurer of the State or of such trustee or depository as the board and the State Treasurer in their discretion determine advisable.
(7) Arrange for yearly audit of the financial activities and accounts in connection with the Fund in cooperation with the State Auditor's Office.
SECTION 5. The Board must implement the programs of this act as soon as practicable. The Board must exercise care in the performance of its duties and the selection of specific infrastructure projects to receive its assistance.
SECTION 6. The board has the power in carrying out the purposes of this act to:
(a) adopt procedures, and regulations pursuant to Act 176 of 1977 for the implementation and operation of the programs authorized by this act;
(b) adopt and use a seal;
(c) sue and be sued in its own name;
(d) enter into and enforce the contracts, agreements, leases, and instruments and prescribe the terms and conditions thereof, and make such offers to contract with such persons, partnerships, firms, corporations, agencies, or entities, whether public or private, considered desirable in furtherance of its purposes subject to the requirements of the South Carolina Consolidated Procurement Code;
(e) acquire by purchase, donation, exchange, or otherwise, hold, improve, mortgage, pledge, or otherwise encumber, manage, lease, convey, transfer, or dispose of any real or personal property, whether tangible or intangible, including its income, revenues, funds, and monies, together with the rights and privileges as may be incidental and appurtenant thereto; any such acquisition or disposition may be pursuant to public or private sale upon the terms and conditions as the authority may set forth in accordance with prudent business practices and the South Carolina Consolidated Procurement Code and upon approval by the Budget and Control Board;
(f) receive and accept funds, grants, aid, or other contributions of value from any source, consistent with the purposes of this act, carry out the terms or provisions or make agreements with respect to such gifts or grants, and do all things necessary, useful, or desirable in connection with the procuring, accepting, or disposing of such gift or grants;
(g) borrow money and issue negotiable or nonnegotiable notes, bonds, or other obligations, including, but not limited to, lease obligations, provide for and secure their payment, provide for the rights of the holders thereof and purchase and hold, cancel, or dispose of any of its own obligations;
(h) purchase or hold securities or other obligations of a Project Sponsor at such prices and with such terms and conditions and in such a manner as the board considers advisable and sell such securities or obligations at such prices without relation to cost and in such manner as the board considers advisable;
(i) deposit monies, until used in the implementation of the programs under this act, constituting the Infrastructure Fund and invest such monies in accordance with Sections 6-5-10, 11-9-660, and 11-9-661 of the 1976 Code, and any other investment which may be lawful for public funds, and withdraw monies in the Infrastructure Fund in implementing the provisions of this act, except to the extent that the board has agreed to or is bound by restrictions in connection with the Reserve Fund, any special reserve fund created as security for any specific series of bonds or any contractual undertaking of the board;
(j) make plans, assessments, and conduct studies and hearings necessary or desirable for the implementation of its duties;
(k) determine the recipients of the board's assistance under this act;
(l) pool or combine obligations incurred by Project Sponsors to the board into a composite bond issue as a means of credit enhancement;
(m) purchase, establish separate funds or accounts for, or otherwise provide for insurance, reserve funds, guarantees, letters of credit, or other forms of credit enhancement as additional security for any bonds issued by the board or obligations incurred by Project Sponsors to finance Infrastructure Projects;
(n) do anything authorized by this act through its officers, agents, employees, and consultants, prescribing their duties and fixing their compensation;
(o) impose reasonable fees and charges for rendering services which, unless otherwise provided for under proceedings authorizing any of its bonds, may be used by it for any of its authorized purposes;
(p) cooperate with and exchange personnel with any agency or instrumentality of the United States and with any agency or political subdivision of this State in the administration of any of the programs authorized by this act in compliance with Act No. 480 of 1978;
(q) procure insurance in compliance with the South Carolina Consolidated Procurement Code against any losses in connection with its property, operations, or assets in amounts and from such insurers as it considers advisable;
(r) render advisory services to any Project Sponsor.
SECTION 7. (a) The board has the power to borrow money and to issue bonds from time to time, in its own name, in amounts it considers necessary to provide funds to carry out any of its purposes and powers under this act, including but not limited to:
(1) the purchase of obligations of Project Sponsors issued for Infrastructure Projects hereunder;
(2) the making of loans to Project Sponsors to finance Infrastructure Projects;
(3) the payment, funding, or refunding of the principal of, or interest, or redemption premium on bonds issued hereunder whether the bonds or interest to be funded or refunded have or have not become due; and
(4) the establishment or increase of reserves to secure or to pay bonds or interest on bonds and all other costs or expenses of the board incident to and necessary or convenient to carry out its corporate purposes and powers.
The board may not, without prior notice to and opportunity for comment by the Joint Bond Review Committee, issue bonds which would cause the total amount of bonds outstanding under this act at any one time, except bonds issued to refund bonds, to exceed one hundred fifty million dollars.
(b) The bonds authorized by this act are limited obligations of the board, the principal of and interest on which are payable solely out of the Infrastructure Fund and which are subject to possible contractual obligations with holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund. Neither the full faith and credit of the State nor the taxing power of the State are considered to be pledged by the board with respect to bonds issued hereunder which fact must be stated on the face of each bond. The bonds issued hereunder do not constitute an indebtedness of the State within the meaning of any state constitutional provision or statutory limitation. Such bonds are an indebtedness payable solely from a revenue producing source or from a special source within the Infrastructure Fund pledged specifically therefor. The bonds do not constitute nor give rise to a pecuniary liability of the board or the State or a charge against the general credit of the board or the State or the taxing powers of the State, and this fact must be plainly stated on the face of each bond. All expenses incurred in carrying out this act are payable solely from the Infrastructure Fund, subject to possible contractual obligations with the holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund, and nothing in this act authorizes the board to incur an indebtedness or liability on behalf of or payable by the State.
(c) The bonds issued hereunder may be executed and delivered at any time as a single issue or from time to time as several issues, may be in such form and denominations, may be of such tenor, may be in coupon or registered form, may be payable in such installments and at such time or times not to exceed forty years or the expected life of the project being funded, whichever is shorter, may be subject to such terms of redemption, may be payable at such place, may bear interest at such rate or rates whether fixed or variable, may be payable at such place and evidenced in such manner, and may contain such provisions not inconsistent herewith, all of which shall be provided in the resolution of the board authorizing the bonds. Any bonds issued under this section may be sold at such public or private sale as may be determined by the board to be most advantageous. The board acting jointly with the State Treasurer shall designate such trustees, paying agents, marketing, and remarketing agents, depositories syndicate manager or managers, and other agents as it considers necessary or advisable in connection with the issuance of such bonds notwithstanding that such agents are not residents in the State or are incorporated under the laws of the United States or any state other than the State. The board may pay all expenses, premiums, insurance premiums, and commissions which it considers necessary from proceeds of the bonds or program funds in connection with the sale of bonds.
(d) Upon the adoption of a resolution authorizing the issuance of bonds, the board must publish notice of the adoption for at least three consecutive publications in at least one newspaper of general circulation in the county or counties in which the Infrastructure Project or projects being financed thereby are to be located. Any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds under this act or to obtain any relief upon the ground that the issuance of such bonds is invalid must be filed as an action de novo in the court or courts of common pleas in the county or counties in which the Infrastructure Project or projects to be financed with such bonds are located no later than twenty days following such publication of notice. After the expiration of this twenty day period, no right of action shall be asserted, nor shall the validity of the resolution or any of its provisions or the bonds issued pursuant thereto be open to question in any court or agency upon any grounds whatsoever except for a legal or administrative action initiated by the Attorney General.
(e) The resolution under which the bonds are authorized to be issued or any security agreement, including an indenture or trust indenture to be entered into in connection therewith, may contain any agreements and provisions customarily contained in instruments securing bonds, including, but not limited to, provisions respecting the fixing and collection of obligations, the creation and maintenance of special funds, and the rights and remedies available, in the event of default, to the bondholders or to the trustee under such security agreement as the board considers advisable. In making such agreements the board does not have the power to obligate itself except with respect to the Infrastructure Fund and cannot incur a pecuniary liability or a charge upon the general credit of the State or against the taxing powers of the State. The resolution of the board authorizing any bonds and any security agreement securing bonds shall provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or security agreement, the payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect any obligations and to apply any revenues pledged in accordance with such proceedings or the provisions of the security agreement. Any security agreement shall provide also that, in the event of default in payment or the violation of any agreement contained in the security agreement, it may be foreclosed by proceedings at law or in equity, and may provide that any trustee under the security agreement or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale, if he is the highest bidder. No breach of any such agreement may impose any pecuniary liability upon the State or any charge upon the general credit of the State or against the taxing power of the State or against any revenues or funds of the board except those revenues or funds in the Infrastructure Fund pledged specifically therefor. Monies in the funds and accounts held by a trustee shall be invested or deposited by such trustee.
(f) Any bonds that are outstanding may at any time be refunded by the board by the issuance of its refunding bonds in such amount as the board considers necessary but not to exceed an amount sufficient to refund the principal of the bonds to be refunded, together with any unpaid interest thereon and any premiums, expenses, and commissions necessary to be paid. The refunding may be effected whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds for the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of any bonds to be refunded cannot be compelled to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they may be called for redemption, prior to the date on which they are by their terms subject to redemption. All refunding bonds issued under this section are payable in the same manner and under the same terms and conditions as are provided for the issuance of bonds.
(g) The proceeds from the sale of any bonds shall be credited to any general or reserve account established by the board as part of the Infrastructure Fund until applied for the purpose for which the bonds were issued. Any premium and accrued interest received in any such sale must be applied to the payment of the principal of or the interest on the bonds sold. If for any reason any portion of the proceeds of a bond sale is not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds.
SECTION 8. It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this act. Nothing contained in this section is construed as relieving any person from the duty of exercising reasonable care in selecting securities.
SECTION 9. The bonds and the income therefrom are exempt from all taxation in the State except for inheritance, estate, or transfer taxes. All documents issued in connection with this act are exempt from stamp taxes.
SECTION 10. The board may dispose of any property acquired by it at public sale for fair market value. If the board does not advertise the sale of property or take bids thereon at a public sale, then the reasons for such action must be set forth in writing and be made available for public inspection. In evaluating the consideration it receives for any property or the use thereof, the board may consider nonpecuniary benefits and benefits to the citizens of the State.
SECTION 11. (a) The board may establish and maintain a reserve fund for one or more issues of bonds or for obligations incurred by Project Sponsors to finance Infrastructure Projects, to which there may be deposited or transferred:
(1) Any monies appropriated by the General Assembly for the purpose of such reserve fund;
(2) Any proceeds of bonds required to be deposited in such reserve fund by terms of a contract between the board and its bondholders or a resolution of the board with respect to the proceeds of such bonds;
(3) Any other money or funds of the board that it decides to deposit in the fund.
(b) Subject to paragraph (c) of this section, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds for which such fund is pledged as the interest and principal became due and payable or, if no other monies of a Project Sponsor are available therefore, to prevent a default by payment of the principal of and interest on the obligations of such Project Sponsor incurred to finance an Infrastructure Project for which such reserve fund has been pledged. Money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on such bonds or obligations and the principal of such bonds or obligations then maturing and payable, whether by reason of maturity or mandatory redemption for which payments other money of the board or Project Sponsor, as the case may be, is not then available. As used in this paragraph "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the board. The required debt service reserve shall be an aggregate amount equal to at least the largest amount of money required by the terms of all contracts between the Authority and its bondholders to be raised in the then current or any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds, and sinking fund payments required by the terms of any such contracts to sinking funds established for the payment or redemption of such bonds.
(c) Money in any reserve fund in excess of the required debt service reserve as defined in paragraph (b) of this section, whether by reason of investment or otherwise, may be withdrawn at any time by the board and transferred to another fund or account of the board established hereunder or to the general fund of the State, subject to the provisions of any agreement with the holders of the bonds or obligations for which such reserve fund is pledged.
(d) Money in any reserve fund may be invested in investments authorized by this act.
(e) For purposes of valuation, investments in any reserve fund shall be valued at par, or if purchased at less than par, at cost unless otherwise provided by resolution of the board. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in such reserve fund.
(f) In order to assure the maintenance of the required debt service reserve in the reserve funds, the General Assembly may annually appropriate to the board for deposit in one or more of the funds the sum, certified by the chairman of the board to the General Assembly, that is necessary to restore one or more of the funds to an amount equal to the required debt service reserve. The chairman annually, before December 1, shall make and deliver to the General Assembly his certificate stating the sum required to restore the funds to that amount. Nothing in this subsection creates a debt or liability of the State to make any appropriation.
(g) Subject to the provisions of any agreement with its boundaries, the board may combine the reserve fund established for each issue of bonds into one or more reserve funds.
SECTION 12. (a) Every Project Sponsor is authorized and empowered to contract with the board with respect to any loan or purchase of its obligations pursuant hereto, and the contracts in connection therewith may be in any form agreed to by the board and the Project Sponsor, including a customary form of bond ordinance or resolution. The term of such loan or the obligations so purchased may not exceed the earlier of forty years or the term of any bonds issued by the board to purchase such obligations or fund such loan. Such obligations may be in the form of bonds, notes, lease obligations, or any other evidence of indebtedness. Such obligations may, at the option of the Project Sponsor and the board, consist of general obligation or revenue debt and may bear interest at a fixed or variable rate. Every Project Sponsor is authorized and empowered to pay fees and charges required to be paid to the board for its services. Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds, any Project Sponsor may sell its obligations to the board, without limitation as to denomination, at a private sale at such price or prices as may be determined by the board and the Project Sponsor. Nothing in this act shall be construed as to authorize a Project Sponsor to exceed any bond issue or debt limitations imposed by charter or municipal, county or state governing bodies.
(b) Upon the execution and delivery by a Project Sponsor of any contract or obligations to the board, the Project Sponsor shall be considered to have agreed that in the event of its failure to pay interest or principal on such obligations owned or held by the board when payable, all statutory defenses to nonpayment are waived. The board may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the Project Sponsor. The board shall carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.
(c) Notwithstanding any other provision of law, to the extent that any department or agency of the State, including the Treasurer of the State, is the custodian of money payable to the Project Sponsor (other than for goods or services provided by the Project Sponsor), at any time after written notice to the department or agency head from the board that the Project Sponsor is in default on the payment of principal or interest on the obligations of the Project Sponsor than held, owned, or guaranteed by the board, the department or agency shall withhold the payment of that money from that Project Sponsor and pay over the money to the board for the purposes of paying principal of and interest on such obligations. Any withholding of payment by the State Treasurer of custodial funds payable to the Project Sponsor must be authorized by action of the General Assembly.
(d) As a condition of all loan approvals to Project Sponsors, the board shall, through regulations and by contract, require accountability of the Project Sponsors. At a minimum, Project Sponsors shall be required to: (i) adhere to generally accepted accounting and audit standards as well as generally accepted managerial and administrative procedures; (ii) identify intended sources of revenue which may consist of charges, fees, or taxes for the services and benefits provided to the residents of the serviced area or the users of the Infrastructure Project sufficient to meet all debt obligations as well as all operational costs of the project facility, including, if the board deems necessary, a separate reserve account to provide for debt service or maintenance and replacement of the Infrastructure Project; (iii) perform annual audits relative to the debt obligation to the board; and (iv) publicly advertise and competitively bid all aspects of the construction project.
SECTION 13. The board has the power to enter into service agreement contracts with established public or private financial institutions for the purpose of day-to-day credit management and loan servicing and limit the liabilities of these institutions in regard to these service agreements. Upon approval of a loan to a Project Sponsor, a loan administrator may be appointed on an individual project basis, or for groups of projects, and may be selected from all banks, trust companies, and financial institutions licensed as provided by law, and may be given the right to enforce payment of all debt obligations and any covenants relating to the obligations. The board may vest in the loan administrator the right, in the event of a default, to institute receivership authority as authorized by law.
SECTION 14. The program established by the provisions of this act will be administered by the Jobs-Economic Development Authority in the manner provided by law.
SECTION 15. Neither this act nor anything herein contained is construed as a restriction or limitation upon any powers which the board might otherwise have under any laws of this State, but is construed as cumulative.
SECTION 16. The board shall implement its programs in accordance with regulations promulgated under the provisions of Act 176 of 1977.
SECTION 17. The provisions of this act are hereby declared to be severable and if any part or portion of this act is held to be unconstitutional, the remaining parts or portions shall remain in full force and effect.
SECTION 18. This act shall take effect upon approval by the Governor./
Amend title to conform.
Rep. TOAL explained the amendment and moved to table the amendment which was agreed to.
Reps. J. ANDERSON, KEYSERLING, LEWIS, McLELLAN and J. ROGERS proposed the following Amendment No. 19, which was later adopted.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. The General Assembly finds that many communities find it increasingly difficult to finance infrastructure projects because of inadequate credit, diminishment of federal funds, scarcity of capital, inadequate tax bases, and similar reasons, that the inability to finance infrastructure projects in a timely fashion hampers these communities in attracting business and industry and threatens the health and welfare of the State's inhabitants and its environment and that the result of these circumstances is a continuation of the cycle of poverty, poor health, and illiteracy. The General Assembly further finds that establishment of a South Carolina Infrastructure Fund for the purpose of assisting local governments and other specified project sponsors in the financing of infrastructure projects will promote the general well-being of the public, encourage economic growth and development, and protect the environment. The Infrastructure Fund may be used to provide financial assistance to project sponsors for infrastructure projects in the form of low-interest loans, credit enhancement, and the other forms of assistance specified herein. Project Sponsors are authorized to contract with private entities to provide water and sewer services. The Infrastructure Fund may be capitalized from time to time through issuance of bonds, loan repayment by local governments, and the receipt of other funds. The General Assembly does not intend that the Infrastructure Fund be utilized as a means to finance project sponsors beyond their capability to meet repayment schedules and debt service requirements of bonds or notes.
SECTION 2. As used in this act:
(a) "Board" means the governing body of the South Carolina Jobs-Economic Development Authority.
(b) "Infrastructure Project" means: (i) a facility developed for the purpose of water storage and supply; (ii) a sewer system or treatment facility; or (iii) any enlargement or improvement of any of the projects described in this item.
(c) "Project Sponsor" means any county or municipality which acts on its own behalf or any special purpose district providing water or sewer services or any other state or local authority, public service district providing water or sewer services, political subdivision or other eleemosynary entity created pursuant to the laws of the State of South Carolina which is empowered to enter into a debt obligation, and which has received approval of the proposed project from a majority of the legislative delegation of the county or counties in which the project will be located.
(d) "Priority Assessment" means the periodic assessment by the board of the chronological order in which the Infrastructure Projects are to be financed in the whole or in part pursuant to the provisions of this act, as determined in accordance with the provisions of this act.
(e) "State" means the State of South Carolina.
SECTION 3. The South Carolina Infrastructure Fund is hereby created as a separate fund of the South Carolina Jobs-Economic Development Authority to which must be deposited all monies received by the Board for the implementation of the programs authorized under this act including but not limited to the proceeds of any bonds issued by the Board hereunder or any grants by any agency of the United States or any other person.
The Board shall set policy for the administration of the Fund and approve the use of all monies derived under this act. For this purpose, the Board shall:
(1) Establish the criteria for determining an annual Priority Assessment of the Infrastructure Projects considering inter alia, the following factors: (i) the financial soundness of the Infrastructure project as determined in writing before any money is lent to or bonds purchased from the project sponsor; (ii) the potential of the Infrastructure Project to create or retain jobs or other public benefits; (iii) the public health and welfare requirements within the jurisdiction of the Project Sponsor; (iv) the creditworthiness of the Project Sponsor, and the measures taken by the Project Sponsor to ensure reasonable project costs; and (v) the availability or lack thereof of other funds to finance the Infrastructure Project;
(2) Develop annually a priority assessment;
(3) Receive applications from Project Sponsors for loans and other assistance as provided for herein and determine the comparative need for the loan or other assistance;
(4) Based upon available funds and based upon the Priority Assessment, enter into loan agreements with Project Sponsors and determine the recipients of other forms of aid as provided in this act. The board shall not deviate from the Priority Assessment except for emergency projects as described below. An emergency project is an Infrastructure Project which (i) is dependent upon a quick response and that would fail if it had to wait until the next annual priority list is prepared taking into account whether other reasonable forms of financing are available or (ii) involves a situation which endangers or has a clear potential to endanger public health and welfare where the Governor has made a declaration of emergency or the Commissioner of the Department of Health and Environmental Control has declared an imminent health hazard condition.
(5) Monitor loan repayment, available funds, and bonds and obligations issued in connection with the programs established hereunder, and report annually to the Governor, the Joint Bond Review Committee and the General Assembly on the activities and financial status of the Infrastructure Fund during the preceding year and on the need for fund recapitalization.
(6) Establish such general funds, reserve funds, and other accounts, either as subaccounts or as separate accounts in the custody of the Treasurer of the State or of such trustee or depository as the board and the State Treasurer in their discretion determine advisable.
(7) Arrange for yearly audit of the financial activities and accounts in connection with the Fund in cooperation with the State Auditor's Office.
SECTION 5. The Board must implement the programs of this act as soon as practicable. The Board must exercise care in the performance of its duties and the selection of specific infrastructure projects to receive its assistance.
SECTION 6. The board has the power in carrying out the purposes of this act to:
(a) adopt procedures, and regulations pursuant to Act 176 of 1977 for the implementation and operation of the programs authorized by this act;
(b) adopt and use a seal;
(c) sue and be sued in its own name;
(d) enter into and enforce the contracts, agreements, leases, and instruments and prescribe the terms and conditions thereof, and make such offers to contract with such persons, partnerships, firms, corporations, agencies, or entities, whether public or private, considered desirable in furtherance of its purposes subject to the requirements of the South Carolina Consolidated Procurement Code;
(e) acquire by purchase, donation, exchange, or otherwise, hold, improve, mortgage, pledge, or otherwise encumber, manage, lease, convey, transfer, or dispose of any real or personal property, whether tangible or intangible, including its income, revenues, funds, and monies, together with the rights and privileges as may be incidental and appurtenant thereto; any such acquisition or disposition may be pursuant to public or private sale upon the terms and conditions as the authority may set forth in accordance with prudent business practices and the South Carolina Consolidated Procurement Code and upon approval by the Budget and Control Board;
(f) receive and accept funds, grants, aid, or other contributions of value from any source, consistent with the purposes of this act, carry out the terms or provisions or make agreements with respect to such gifts or grants, and do all things necessary, useful, or desirable in connection with the procuring, accepting, or disposing of such gift or grants;
(g) borrow money and issue negotiable or nonnegotiable notes, bonds, or other obligations, including, but not limited to, lease obligations, provide for and secure their payment, provide for the rights of the holders thereof and purchase and hold, cancel, or dispose of any of its own obligations;
(h) purchase or hold securities or other obligations of a Project Sponsor at such prices and with such terms and conditions and in such a manner as the board considers advisable and sell such securities or obligations at such prices without relation to cost and in such manner as the board considers advisable;
(i) deposit monies, until used in the implementation of the programs under this act, constituting the Infrastructure Fund and invest such monies in accordance with Sections 6-5-10, 11-9-660, and 11-9-661 of the 1976 Code, and any other investment which may be lawful for public funds, and withdraw monies in the Infrastructure Fund in implementing the provisions of this act, except to the extent that the board has agreed to or is bound by restrictions in connection with the Reserve Fund, any special reserve fund created as security for any specific series of bonds or any contractual undertaking of the board;
(j) make plans, assessments, and conduct studies and hearings necessary or desirable for the implementation of its duties;
(k) determine the recipients of the board's assistance under this act;
(l) pool or combine obligations incurred by Project Sponsors to the board into a composite bond issue as a means of credit enhancement;
(m) purchase, establish separate funds or accounts for, or otherwise provide for insurance, reserve funds, guarantees, letters of credit, or other forms of credit enhancement as additional security for any bonds issued by the board or obligations incurred by Project Sponsors to finance Infrastructure Projects;
(n) do anything authorized by this act through its officers, agents, employees, and consultants, prescribing their duties and fixing their compensation;
(o) impose reasonable fees and charges for rendering services which, unless otherwise provided for under proceedings authorizing any of its bonds, may be used by it for any of its authorized purposes;
(p) cooperate with and exchange personnel with any agency or instrumentality of the United States and with any agency or political subdivision of this State in the administration of any of the programs authorized by this act in compliance with Act No. 480 of 1978;
(q) procure insurance in compliance with the South Carolina Consolidated Procurement Code against any losses in connection with its property, operations, or assets in amounts and from such insurers as it considers advisable;
(r) render advisory services to any Project Sponsor.
SECTION 7. (a) The board has the power to borrow money and to issue bonds from time to time, in its own name, in amounts it considers necessary to provide funds to carry out any of its purposes and powers under this act, including but not limited to:
(1) the purchase of obligations of Project Sponsors issued for Infrastructure Projects hereunder;
(2) the making of loans to Project Sponsors to finance Infrastructure Projects;
(3) the payment, funding, or refunding of the principal of, or interest, or redemption premium on bonds issued hereunder whether the bonds or interest to be funded or refunded have or have not become due; and
(4) the establishment or increase of reserves to secure or to pay bonds or interest on bonds and all other costs or expenses of the board incident to and necessary or convenient to carry out its corporate purposes and powers.
The board may not, without prior notice to and opportunity for comment by the Joint Bond Review Committee, issue bonds which would cause the total amount of bonds outstanding under this act at any one time, except bonds issued to refund bonds, to exceed one hundred fifty million dollars.
(b) The bonds authorized by this act are limited obligations of the board, the principal of and interest on which are payable solely out of the Infrastructure Fund and which are subject to possible contractual obligations with holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund. Neither the full faith and credit of the State nor the taxing power of the State are considered to be pledged by the board with respect to bonds issued hereunder which fact must be stated on the face of each bond. The bonds issued hereunder do not constitute an indebtedness of the State within the meaning of any state constitutional provision or statutory limitation. Such bonds are an indebtedness payable solely from a revenue producing source or from a special source within the Infrastructure Fund pledged specifically therefor. The bonds do not constitute nor give rise to a pecuniary liability of the board or the State or a charge against the general credit of the board or the State or the taxing powers of the State, and this fact must be plainly stated on the face of each bond. All expenses incurred in carrying out this act are payable solely from the Infrastructure Fund, subject to possible contractual obligations with the holders of a particular series of bonds pledging particular revenues or funds which constitute part of the Infrastructure Fund, and nothing in this act authorizes the board to incur an indebtedness or liability on behalf of or payable by the State.
(c) The bonds issued hereunder may be executed and delivered at any time as a single issue or from time to time as several issues, may be in such form and denominations, may be of such tenor, may be in coupon or registered form, may be payable in such installments and at such time or times not to exceed forty years or the expected life of the project being funded, whichever is shorter, may be subject to such terms of redemption, may be payable at such place, may bear interest at such rate or rates whether fixed or variable, may be payable at such place and evidenced in such manner, and may contain such provisions not inconsistent herewith, all of which shall be provided in the resolution of the board authorizing the bonds. Any bonds issued under this section may be sold at such public or private sale as may be determined by the board to be most advantageous. The board acting jointly with the State Treasurer shall designate such trustees, paying agents, marketing, and remarketing agents, depositories syndicate manager or managers, and other agents as it considers necessary or advisable in connection with the issuance of such bonds notwithstanding that such agents are not residents in the State or are incorporated under the laws of the United States or any state other than the State. The board may pay all expenses, premiums, insurance premiums, and commissions which it considers necessary from proceeds of the bonds or program funds in connection with the sale of bonds.
(d) Upon the adoption of a resolution authorizing the issuance of bonds, the board must publish notice of the adoption for at least three consecutive publications in at least one newspaper of general circulation in the county or counties in which the Infrastructure Project or projects being financed thereby are to be located. Any action or proceeding in any court to set aside the resolution authorizing the issuance of bonds under this act or to obtain any relief upon the ground that the issuance of such bonds is invalid must be filed as an action de novo in the court or courts of common pleas in the county or counties in which the Infrastructure Project or projects to be financed with such bonds are located no later than twenty days following such publication of notice. After the expiration of this twenty day period, no right of action shall be asserted, nor shall the validity of the resolution or any of its provisions or the bonds issued pursuant thereto be open to question in any court or agency upon any grounds whatsoever except for a legal or administrative action initiated by the Attorney General.
(e) The resolution under which the bonds are authorized to be issued or any security agreement, including an indenture or trust indenture to be entered into in connection therewith, may contain any agreements and provisions customarily contained in instruments securing bonds, including, but not limited to, provisions respecting the fixing and collection of obligations, the creation and maintenance of special funds, and the rights and remedies available, in the event of default, to the bondholders or to the trustee under such security agreement as the board considers advisable. In making such agreements the board does not have the power to obligate itself except with respect to the Infrastructure Fund and cannot incur a pecuniary liability or a charge upon the general credit of the State or against the taxing powers of the State. The resolution of the board authorizing any bonds and any security agreement securing bonds shall provide that, in the event of default in payment of the principal of or the interest on such bonds or in the performance of any agreement contained in such proceedings or security agreement, the payment and performance may be enforced by mandamus or by the appointment of a receiver in equity with power to charge and collect any obligations and to apply any revenues pledged in accordance with such proceedings or the provisions of the security agreement. Any security agreement shall provide also that, in the event of default in payment or the violation of any agreement contained in the security agreement, it may be foreclosed by proceedings at law or in equity, and may provide that any trustee under the security agreement or the holder of any of the bonds secured thereby may become the purchaser at any foreclosure sale, if he is the highest bidder. No breach of any such agreement may impose any pecuniary liability upon the State or any charge upon the general credit of the State or against the taxing power of the State or against any revenues or funds of the board except those revenues or funds in the Infrastructure Fund pledged specifically therefor. Monies in the funds and accounts held by a trustee shall be invested or deposited by such trustee.
(f) Any bonds that are outstanding may at any time be refunded by the board by the issuance of its refunding bonds in such amount as the board considers necessary but not to exceed an amount sufficient to refund the principal of the bonds to be refunded, together with any unpaid interest thereon and any premiums, expenses, and commissions necessary to be paid. The refunding may be effected whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds for the payment of the bonds to be refunded, or by exchange of the refunding bonds for the bonds to be refunded. The holders of any bonds to be refunded cannot be compelled to surrender their bonds for payment or exchange prior to the date on which they are payable or, if they may be called for redemption, prior to the date on which they are by their terms subject to redemption. All refunding bonds issued under this section are payable in the same manner and under the same terms and conditions as are provided for the issuance of bonds.
(g) The proceeds from the sale of any bonds shall be credited to any general or reserve account established by the board as part of the Infrastructure Fund until applied for the purpose for which the bonds were issued. Any premium and accrued interest received in any such sale must be applied to the payment of the principal of or the interest on the bonds sold. If for any reason any portion of the proceeds of a bond sale is not needed for the purpose for which the bonds were issued, the unneeded portion of the proceeds must be applied to the payment of the principal of or the interest on the bonds.
SECTION 8. It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest any monies in their hands in bonds issued pursuant to this act. Nothing contained in this section is construed as relieving any person from the duty of exercising reasonable care in selecting securities.
SECTION 9. The bonds and the income therefrom are exempt from all taxation in the State except for inheritance, estate, or transfer taxes. All documents issued in connection with this act are exempt from stamp taxes.
SECTION 10. The board may dispose of any property acquired by it at public sale for fair market value. If the board does not advertise the sale of property or take bids thereon at a public sale, then the reasons for such action must be set forth in writing and be made available for public inspection. In evaluating the consideration it receives for any property or the use thereof, the board may consider nonpecuniary benefits and benefits to the citizens of the State.
SECTION 11. (a) The board may establish and maintain a reserve fund for one or more issues of bonds or for obligations incurred by Project Sponsors to finance Infrastructure Projects, to which there may be deposited or transferred:
(1) Any monies appropriated by the General Assembly for the purpose of such reserve fund;
(2) Any proceeds of bonds required to be deposited in such reserve fund by terms of a contract between the board and its bondholders or a resolution of the board with respect to the proceeds of such bonds;
(3) Any other money or funds of the board that it decides to deposit in the fund.
(b) Subject to paragraph (c) of this section, money in any reserve fund shall be held and applied solely to the payment of the interest on and principal of bonds for which such fund is pledged as the interest and principal became due and payable or, if no other monies of a Project Sponsor are available therefore, to prevent a default by payment of the principal of and interest on the obligations of such Project Sponsor incurred to finance an Infrastructure Project for which such reserve fund has been pledged. Money may not be withdrawn if a withdrawal would reduce the amount in the reserve fund to an amount less than the required debt service reserve, except for payment of interest then due and payable on such bonds or obligations and the principal of such bonds or obligations then maturing and payable, whether by reason of maturity or mandatory redemption for which payments other money of the board or Project Sponsor, as the case may be, is not then available. As used in this paragraph "required debt service reserve" means, as of the date of computation, the amount required to be on deposit in the reserve fund as provided by resolution or trust agreement of the board. The required debt service reserve shall be an aggregate amount equal to at least the largest amount of money required by the terms of all contracts between the Authority and its bondholders to be raised in the then current or any succeeding calendar year for the payment of interest on and maturing principal of outstanding bonds, and sinking fund payments required by the terms of any such contracts to sinking funds established for the payment or redemption of such bonds.
(c) Money in any reserve fund in excess of the required debt service reserve as defined in paragraph (b) of this section, whether by reason of investment or otherwise, may be withdrawn at any time by the board and transferred to another fund or account of the board established hereunder or to the general fund of the State, subject to the provisions of any agreement with the holders of the bonds or obligations for which such reserve fund is pledged.
(d) Money in any reserve fund may be invested in investments authorized by this act.
(e) For purposes of valuation, investments in any reserve fund shall be valued at par, or if purchased at less than par, at cost unless otherwise provided by resolution of the board. Valuation on a particular date shall include the amount of interest then earned or accrued to that date on the money or investments in such reserve fund.
(f) In order to assure the maintenance of the required debt service reserve in the reserve funds, the General Assembly may annually appropriate to the board for deposit in one or more of the funds the sum, certified by the chairman of the board to the General Assembly, that is necessary to restore one or more of the funds to an amount equal to the required debt service reserve. The chairman annually, before December 1, shall make and deliver to the General Assembly his certificate stating the sum required to restore the funds to that amount. Nothing in this subsection creates a debt or liability of the State to make any appropriation.
(g) Subject to the provisions of any agreement with its boundaries, the board may combine the reserve fund established for each issue of bonds into one or more reserve funds.
SECTION 12. (a) Every Project Sponsor is authorized and empowered to contract with the board with respect to any loan or purchase of its obligations pursuant hereto, and the contracts in connection therewith may be in any form agreed to by the board and the Project Sponsor, including a customary form of bond ordinance or resolution. The term of such loan or the obligations so purchased may not exceed the earlier of forty years or the term of any bonds issued by the board to purchase such obligations or fund such loan. Such obligations may be in the form of bonds, notes, lease obligations, or any other evidence of indebtedness. Such obligations may, at the option of the Project Sponsor and the board, consist of general obligation or revenue debt and may bear interest at a fixed or variable rate. Every Project Sponsor is authorized and empowered to pay fees and charges required to be paid to the board for its services. Notwithstanding any statute applicable to or constituting any limitation on the sale of bonds, any Project Sponsor may sell its obligations to the board, without limitation as to denomination, at a private sale at such price or prices as may be determined by the board and the Project Sponsor. Nothing in this act shall be construed as to authorize a Project Sponsor to exceed any bond issue or debt limitations imposed by charter or municipal, county or state governing bodies.
(b) Upon the execution and delivery by a Project Sponsor of any contract or obligations to the board, the Project Sponsor shall be considered to have agreed that in the event of its failure to pay interest or principal on such obligations owned or held by the board when payable, all statutory defenses to nonpayment are waived. The board may thereupon avail itself of all remedies, rights, and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the Project Sponsor. The board shall carry out this section and exercise all the rights, remedies, and provisions of law provided or referred to in this section.
(c) Notwithstanding any other provision of law, to the extent that any department or agency of the State, including the Treasurer of the State, is the custodian of money payable to the Project Sponsor (other than for goods or services provided by the Project Sponsor), at any time after written notice to the department or agency head from the board that the Project Sponsor is in default on the payment of principal or interest on the obligations of the Project Sponsor than held, owned, or guaranteed by the board, the department or agency shall withhold the payment of that money from that Project Sponsor and pay over the money to the board for the purposes of paying principal of and interest on such obligations. Any withholding of payment by the State Treasurer of custodial funds payable to the Project Sponsor must be authorized by action of the General Assembly.
(d) As a condition of all loan approvals to Project Sponsors, the board shall, through regulations and by contract, require accountability of the Project Sponsors. At a minimum, Project Sponsors shall be required to: (i) adhere to generally accepted accounting and audit standards as well as generally accepted managerial and administrative procedures; (ii) identify intended sources of revenue which may consist of charges, fees, or taxes for the services and benefits provided to the residents of the serviced area or the users of the Infrastructure Project sufficient to meet all debt obligations as well as all operational costs of the project facility, including, if the board deems necessary, a separate reserve account to provide for debt service or maintenance and replacement of the Infrastructure Project; (iii) perform annual audits relative to the debt obligation to the board; and (iv) publicly advertise and competitively bid all aspects of the construction project.
SECTION 13. The board has the power to enter into service agreement contracts with established public or private financial institutions for the purpose of day-to-day credit management and loan servicing and limit the liabilities of these institutions in regard to these service agreements. Upon approval of a loan to a Project Sponsor, a loan administrator may be appointed on an individual project basis, or for groups of projects, and may be selected from all banks, trust companies, and financial institutions licensed as provided by law, and may be given the right to enforce payment of all debt obligations and any covenants relating to the obligations. The board may vest in the loan administrator the right, in the event of a default, to institute receivership authority as authorized by law.
SECTION 14. The program established by the provisions of this act will be administered by the Jobs-Economic Development Authority in the manner provided by law.
SECTION 15. Neither this act nor anything herein contained is construed as a restriction or limitation upon any powers which the board might otherwise have under any laws of this State, but is construed as cumulative.
SECTION 16. The board shall implement its programs in accordance with regulations promulgated under the provisions of Act 176 of 1977.
SECTION 17. The provisions of this act are hereby declared to be severable and if any part or portion of this act is held to be unconstitutional, the remaining parts or portions shall remain in full force and effect.
SECTION 18. This act shall take effect upon approval by the Governor./
Amend title to conform.
Rep. TOAL explained the amendment.
Rep. McABEE raised the Point of Order that Amendment No. 19 was out of order as it was identical to Amendment No. 18 which had just been considered.
Rep. TOAL argued that substantial changes had been made in the amendment.
The SPEAKER, noting substantive change had been made, overruled the Point of Order.
Rep. McABEE spoke against the amendment.
Rep. FREEMAN asked unanimous consent that the time of the speaker be extended 10 minutes, which was agreed to.
Rep. McABEE continued speaking.
The SPEAKER granted Rep. RIGDON a leave of absence for the remainder of the day.
Rep. GENTRY spoke against the amendment.
Rep. L. MARTIN spoke in favor of the amendment.
Rep. McABEE moved to table the amendment.
Rep. L. MARTIN demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Schwartz Arthur, J. Barfield Bennett Blackwell Blanding Boan Bradley, P. Brown, G. Burriss, M.D. Carnell Chamblee Cork Felder Gentry Griffin Harris, P. Hearn Helmly Hendricks, B. Johnson, J.C. Kay Lake Limehouse Mangum McAbee McKay McLeod McTeer Moss Phillips, L. Phillips, O. Sharpe Thrailkill Townsend Tucker
Those who voted in the negative are:
Alexander Altman Anderson, J. Arthur, W. Bailey, G. Bailey, K. Beasley Bradley, J. Brett Brown, H. Brown, R. Burriss, J.H. Burriss, T.M. Cleveland Cooper Dangerfield Davenport Day Derrick Elliott Faber Fair Ferguson Foster Foxworth Freeman Gilbert Gregory Harvin Hawkins Hayes Keyserling Kirsh Koon Lewis Martin, D. Martin, L. Mattos McBride McEachin McLellan Mitchell Neilson Nettles Ogburn Pearce Petty Rawl Rhoad Rice Rogers, J. Rogers, T. Russell Sheheen Shelton Short Simpson Taylor Toal Waldrop Washington White Williams Winstead
So, the House refused to table the amendment.
Rep. SCHWARTZ spoke against the amendment.
Reps. TOAL and J. ROGERS spoke in favor of the amendment.
Reps. FELDER, MANGUM and B.L. HENDRICKS spoke against the amendment.
Rep. LEWIS spoke in favor of the amendment.
Further proceedings were interrupted by a Point of Privilege of the House, the pending question being consideration of Amendment No. 19, Rep. LEWIS having the floor.
Reps. FERGUSON and WASHINGTON arose to a Point of Privilege of the House.
Rep. TUCKER moved that the House do now adjourn.
Rep. GILBERT demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Bennett Blackwell Blanding Boan Bradley, P. Carnell Cork Freeman Gregory Griffin Harris, P. Hendricks, L. Johnson, J.C. Kay Mangum McAbee McEachin Shelton Short Thrailkill Tucker Waldrop
Those who voted in the negative are:
Schwartz Alexander Altman Anderson, J. Arthur, J. Bailey, G. Beasley Brown, H. Brown, R. Burriss, J.H. Burriss, M.D. Burriss, T.M. Chamblee Cleveland Cooper Dangerfield Davenport Derrick Elliott Faber Fair Felder Gentry Gilbert Hawkins Hayes Hearn Helmly Hendricks, B. Huff Keyserling Kirsh Klapman Koon Lake Lewis Limehouse Martin, D. Martin, L. McBride McLellan McLeod McTeer Mitchell Moss Neilson Nettles Ogburn Pearce Petty Phillips, L. Phillips, O. Rawl Rhoad Rice Rogers, J. Rogers, T. Russell Sharpe Sheheen Simpson Snow Taylor Toal Washington White Williams Winstead
So, the House refused to adjourn.
Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 19.
H. 2737 -- Reps. P. Harris, Carnell, Edwards, Kirsh and McLellan: A BILL TO ESTABLISH THE SOUTH CAROLINA INFRASTRUCTURE AUTHORITY, TO PROVIDE FOR THE MEMBERSHIP OF ITS GOVERNING BODY, AND PROVIDE FOR ITS FUNCTIONS, DUTIES, AND POWERS.
Debate was resumed on Amendment No. 19 by Reps. J. ANDERSON, KEYSERLING, LEWIS, McLELLAN and J. ROGERS.
Rep. LEWIS continued speaking.
Rep. McABEE moved to table the amendment.
Rep. LEWIS demanded the yeas and nays, which were taken resulting as follows:
Those who voted in the affirmative are:
Schwartz Anderson, S. Arthur, J. Bennett Blackwell Blanding Boan Bradley, P. Brown, G. Burriss, M.D. Carnell Chamblee Cork Davenport Edwards Felder Gentry Griffin Harris, P. Hearn Helmly Hendricks, B. Hendricks, L. Johnson, J.C. Kay Lake Mangum McAbee McKay McLeod McTeer Moss Petty Phillips, L. Phillips, O. Simpson Stoddard Thrailkill Townsend Tucker
Those who voted in the negative are:
Alexander Altman Anderson, J. Arthur, W. Bailey, K. Beasley Brett Brown, H. Brown, R. Burriss, J.H. Burriss, T.M. Cleveland Cooper Derrick Elliott Faber Fair Foster Foxworth Freeman Gilbert Gregory Hawkins Hayes Huff Keyserling Kirsh Koon Lewis Limehouse Martin, D. Martin, L. Mattos McBride McEachin McLellan Mitchell Neilson Nettles Ogburn Pearce Rawl Rhoad Rice Rogers, J. Rogers, T. Russell Sharpe Shelton Short Taylor Toal Waldrop Washington White Wilkins Winstead
So, the House refused to table the amendment.
The question then recurred to the adoption of the amendment, which was agreed to.
Reps. LEWIS and FELDER proposed the following Amendment No. 20, which was adopted.
Amend as and if amended.
Amend Section 5 page 6 by adding at the end thereof the following.
"In approving any loan or grant hereunder all ex officio members of the JEDA Board shall have a right to vote."
Rep. LEWIS explained the amendment.
The amendment was then adopted.
Rep. McABEE proposed the following Amendment No. 21, which was adopted.
Amend as and if amended.
Toal amendment, Page 11, line 6.
By striking after notice and by and inserting approval.
Amend to conform.
Rep. McABEE explained the amendment.
The amendment was then adopted.
Further proceedings were interrupted by a Point of Privilege of the House, the pending question being consideration of amendments.
Rep. HARVIN arose to a Point of Privilege of the House.
Debate was resumed on the following Bill, the pending question being the consideration of amendments.
H. 2737 -- Reps. P. Harris, Carnell, Edwards, Kirsh and McLellan: A BILL TO ESTABLISH THE SOUTH CAROLINA INFRASTRUCTURE AUTHORITY, TO PROVIDE FOR THE MEMBERSHIP OF ITS GOVERNING BODY, AND PROVIDE FOR ITS FUNCTIONS, DUTIES, AND POWERS.
Reps. McABEE, FELDER, S. ANDERSON, AYDLETTE, LAKE, KOON, DAVENPORT, CORK, K. BAILEY, EVATT, BRETT, FOXWORTH, STURKIE, TOWNSEND, SHARPE, DAY, DERRICK, MOSS, WALDROP, KLAPMAN, JONES, MANGUM, RHOAD, THRAILKILL, BENNETT, RICE, G. BAILEY, GILBERT, SIMPSON, M.D. BURRISS, McLEOD, R. BROWN, McKAY, NETTLES, L. PHILLIPS, BARFIELD, PETTY, BLACKWELL, L. HENDRICKS, CHAMBLEE, T.M. BURRISS, LOCKEMY, GREGORY, GRIFFIN, J.C. JOHNSON, TUCKER, J.H. BURRISS, HARVIN, MITCHELL, BLANDING, KAY, J.W. JOHNSON, ELLIOTT, McTEER, ARTHUR, HEARN, J. BRADLEY, OGBURN, HELMLY, CLEVELAND, B.L. HENDRICKS, P. BRADLEY, ALTMAN, SCHWARTZ, RUSSELL, KOHN, MATTOS, FAIR, STODDARD and WOODRUFF proposed the following Amendment No. 8, which was tabled.
Amend Amendment #4 Anderson and all, page 2, Section 1, beginning on line __, by deleting /, to encourage economic growth and development,/.
Amend further, page 2, line 1, by striking item (b) and inserting:
/(c) "Infrastructure" means: (i) a facility developed for the purpose of water storage and supply; (ii) a sewer system or treatment facility; or (iii) any enlargement or improvement of any of the projects described in this item./
Amend further, page 3, beginning on line 5, by striking item (e) and inserting:
/(d) "Project sponsor" means any county, municipality, or any combination of counties and municipalities./
Amend further, page 4, first paragraph of Section 3, by inserting between /Fund/ and /to/ on line 2: /through the Division of Local Governments Budget and Control Board/.
Amend further, page 4, of the third paragraph of Section 3, by striking /item 1/.
Amend further, page 5, item (4), by striking beginning on line 5 thru end of paragraph.
Amend further by striking Page 24, line 3 and inserting local government and Budget and Control Board Division in the manner provided by law.
Amend title to conform.
Rep. McABEE explained the amendment.
Rep. TOAL spoke against the amendment and moved to table the amendment which was agreed to by a division vote of 55 to 41.
Debate was resumed on Amendment No. 11 by Reps. LEWIS and J. ROGERS.
Rep. LEWIS moved to table the amendment which was agreed to.
Rep. J. ROGERS moved that the House do now adjourn.
Rep. SHARPE demanded the yeas and nays, which were not ordered.
The motion to adjourn was agreed to by a division vote of 65 to 24.
Further proceedings were interrupted by adjournment, the pending question being consideration of amendments.
On motion of Rep. LIMEHOUSE, with unanimous consent, the following Bill was introduced, read the first time, and ordered placed on the Calendar without reference.
H. 3607 -- Reps. Limehouse, Fair, Ferguson, Davenport, Petty, Koon, Klapman, Foxworth, Gentry, Hayes, J. Anderson and Wilkins: A BILL TO PROVIDE THAT THE STATE LAW ENFORCEMENT DIVISION, UPON THE REQUEST OF A PUBLIC OFFICIAL OR AT THE DIRECTION OF THE CHIEF IF A THREAT OF BODILY HARM HAS BEEN MADE AGAINST THE OFFICIAL OR HIS IMMEDIATE FAMILY, MAY PROVIDE PROTECTION TO THE OFFICIAL OR HIS FAMILY FOR A PERIOD OF NOT MORE THAN SEVENTY-TWO HOURS AND TO PROVIDE THAT AFTER A PERIOD OF SEVENTY-TWO HOURS, THE PROTECTION MAY ONLY BE CONTINUED WITH THE WRITTEN APPROVAL OF THE GOVERNOR.
Without reference.
At 4:40 P.M. the House in accordance with the motion of Rep. J. ROGERS adjourned to meet at 10:00 A.M. tomorrow.
This web page was last updated on
Tuesday, June 30, 2009 at 1:41 P.M.