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The House assembled at 10:00 A.M.

Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark as follows:

Eternal and never changing God, we come again in prayer assured in Your beckoning love and compelled by our needs. Even before we pray, You know the questions that puzzle us, the uncertainties that haunt us, the longings for which we yearn, and the problems for which we have no satisfactory answer. Grant us Your help commensurate to our individual needs. Remove from us all that is unworthy and selfish, and inspire us to move on to loftier fields of endeavor. Swing open the doors of our hearts to Your strength and guidance as we struggle to perform faithfully and well the duties to which we have been called. Give us a loyalty that never falters and a courage that does not waver.

In the Name of Jesus we pray. Amen.

After corrections to the Journal of the proceedings of yesterday, the SPEAKER ordered it confirmed.

TO THE HONORABLE CARROLL A. CAMPBELL, JR., GOVERNOR OF SOUTH CAROLINA, AND MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY:

Joint Resolution No. 1289 of 1970 created the committee to act as a continuing liaison group to study the programs and problems of tourism in the State, recognizing the importance of tourism to the total economy of the State and recognizing the necessity of making tourism more productive and more profitable. This Resolution provided for the appointment of a nine-member committee to consist of three members of the Senate appointed by the President of the Senate, three members of the House of Representatives appointed by the Speaker of the House, and three members appointed by the Governor. The Resolution further provided that the members then serving on the Committee to Promote the Tourist Industry would be the initial members of the Committee on Tourism.

A permanent committee was created by Act 160 of 1977. The committee was empowered to act as a continuing liaison group to study the programs and problems of tourism in the State. Act 517 of 1980 amended the law by adding to the powers and duties of the committee the responsibility for coordinating the efforts of the State Development Board and the South Carolina Department of Agriculture in the development of international agriculture and agro business markets.

Basically, the primary function of the Joint Legislative Committee on Tourism and Trade is to promote the tourism and trade industry in South Carolina. Presently South Carolina's second largest industry, the tourism industry provides a tremendous economic impact to the State. A significant function of this committee is to oversee and approve grant applications submitted through the Department of Parks, Recreation and Tourism's Funds-Sharing Program. The law provides that this committee and the PRT Commission establish guidelines for the administration of this tourism matching-grants program for local public agencies and non-profit organizations involved with tourism promotion activities.

On August 25, 1988, the Committee held a joint meeting with the Accommodations Tax Ad Hoc Committee and the Joint Legislative Tourism Caucus in North Myrtle Beach to discuss issues facing South Carolina's tourism industry, i.e. beachfront management and beach renourishment, uniform school openings, accommodations tax, infrastructure and highways, and tourism promotion. Also participating in the meeting were members of the South Carolina General Assembly, representatives of special interest groups striving to see continued growth in the South Carolina tourism industry, and representatives from various state agencies which oversee this vital industry.

The Travel Industry Association of America held its annual conference in October, 1988, in Denver, Colorado. Several committee members attended and the Committee held a meeting during the conference on October 5, 1988. The Committee voted to endorse and recommend funding support for establishment of regional tourism programs for the Grand Strand (Horry and Georgetown Counties) and the Historic Charleston Area (Charleston and Dorchester Counties) to complete the coverage of regional programs to serve all forty-six counties of the state. The Committee also voted to request the State Tax Commission to determine the extent to which travelers use non-transient lodging and to attach a dollar value to this use. Additionally, the Committee voted to write the South Carolina Congressional Delegation and to introduce a Concurrent Resolution in the General Assembly memoralizing Congress to support efforts to protect and improve the successful federal and state partnership for the nation's highway transportation system through strengthening the Highway Trust Fund, opposing proposals for increasing the federal gasoline tax to reduce the federal budget deficit, supporting completion and maintenance of the Interstate Highway System to relieve urban congestion problems, improving the rural highway system and highway safety standards, and providing more flexibility to state highway transportation agencies for use of the federal Highway Trust Fund money to best meet the varied needs of each state. The committee also voted to write letters to the Budget and Control Board and the Ways and Means Committee in support of PRT's 1989-90 requested budget increases regarding expansion of the successful international marketing program in Europe and initiation of activities in the Japan-Far East area; the Recreation Land Trust Fund for acquisition of state park lands and assistance to local governments and recreation agencies with priority on public access to coastal beaches and inland lakes and rivers; tourism advertising funds to expand coverage in existing markets and to penetrate new market areas. Additionally, the committee voted to sponsor three Concurrent Resolutions of commendation in the General Assembly for (1) Senator William W. Doar, Jr., retiring State Senator, for his record of accomplishments as a State Senator and in his support of tourism as past Chairman of the Joint Legislative Committee on Tourism and Trade and also to present a plaque to Senator Doar; (2) Representative Jennings G. McAbee, Vice Chairman of the Joint Committee on Tourism and Trade, upon his designation as the Southeast Tourism Legislator of the Year by the Southeast Tourism Society; and (3) Robert G. Liming, Director of PRT's Tourism Division, upon his election as Chairman of the National Council of State Travel Directors.

At the December 8, 1988 committee meeting, Senator J. M. "Bud" Long, Jr., Chairman of the Tourism and Trade Committee, was designated by the committee to fill the vacancy existing on the PRT Commission due to the resignation of Senator William W. Doar, Jr. The Committee approved minor revisions to the 1989-90 Tourism Funds-Sharing Guidelines which had been approved by the PRT Commission. The Committee voted to introduce a Concurrent Resolution in the Senate and the House urging Congress to maintain and strengthen the Highway Trust Fund for highway-transportation purposes and that proposals be defeated to impose a huge increase in the federal gasolines tax for budget deficit reduction purposes. The Committee voted to ask the Joint Tourism Caucus at its meeting on December 9th to support full funding for PRT's budget request, not just the reduced Budget and Control Board recommendation. The Committee voted to increase the number of the members of the Committee from nine to ten to include, as an ex-officio member, the immediate past chairman of the Joint Tourism Caucus, if the immediate past chairman of the Joint Tourism Caucus was not already a member of the Joint Legislative Committee on Tourism and Trade. Therefore, Representative William N. Cork became an ex-officio committee member on December 9, 1988.

Members of the Committee attended the Governor's Conference on Tourism and Travel which was held in Hilton Head in February, 1989, and participated in the Legislative Issues Session of the conference. The Committee held a meeting during the conference on February 10 and voted to support legislation (S.46) to increase the admissions tax rate from 4% to 5% to coincide with the state sales tax rate but to leave the allocation formula intact so that the growth rate of the admissions tax would continue to fund advertising and promotional efforts of PRT. The Committee also voted to support proposed legislation which would eliminate double taxation on stored recreational vehicles. A tax incentive for tourism development was discussed, whereby the committee voted to support efforts to establish a tourism tax credit. A subcommittee was appointed to draft factual information to inform the non-coastal areas of the importance of the beaches to South Carolina's economy. The Committee voted to support efforts by the South Carolina Congressional Delegation in locating an ocean dredge for the State.

The committee met on June 1, 1989, for the purpose of approving the 1989-90 funds-sharing grants as recommended by PRT. Some 199 grants were approved by the committee totaling approximately 1.4 Million Dollars. Also, the results of a survey conducted by PRT in conjunction with the State Tax Commission to determine the extent to which travelers use non-transient lodging and to attach a dollar value to this use was reported at the meeting. The respondents represented 26% of total lodging gross sales in the state and response indicated that about 5% of total lodging gross sales was due to rentals of 90 days or more. Non-transient lodging accounted for an estimated $42.4 million dollars in lodging gross sales and over $150 million in other travel expenditures for calendar year 1988.

Several members of the Committee attended the annual Travel and Tourism Research Association Conference in June, 1989, in Honolulu, Hawaii. The Committee held a meeting during the conference on June 13. A memorial tribute was made to Representative William N. Cork, member of the Committee on Tourism and Trade and the first chairman of the Joint Legislative Tourism Caucus, who died suddenly following a heart attack on June 9. The members met with officials from Japan, Hawaii, and other states to discuss legislative and tourism issues of interest to South Carolina, such as tourism and promotional development programs, international marketing, rural tourism, accommodations tax, matching tourism grants, hospitality education programs, retirement development and promotion, beachfront management and ocean resources.

The following is a brief synopsis of tourism-related legislation which passed during the 1988-89 Session of the General Assembly:

Act No. 60 (H.3041) relates to the South Carolina Law Enforcement Training Council and certification requirements of law enforcement officers.

Act No. 73 (H.3283) authorizes the Budget and Control Board to provide health and dental insurance coverage to regional tourism promotion commissions under the State Health Insurance Plan.

Act No. 96 (H.3353) enacts the South Carolina Scenic Rivers Act of 1989.

Act No. 104 (H.3062) requires all vehicles which transport litter to provide a means of covering the vehicles to prevent litter from escaping.

Act No. 177 (H.3567) regulates advertising by rental car companies, particularly for rental car rates.

Act No. 183 (H.3554) provides for funding for air carrier hub terminal facilities to be constructed in the state and provides for property tax exemptions for the air carrier.

Act No. 188 (H.3052) provides for the regulation of bingo games.

Act No. 211 (H.3782) provides for the observance of the Quincentennial of Columbus' Discovery of the New World and subsequent European exploration and settlement of South Carolina and establishes the Columbian Quincentennial Commission of South Carolina.

Act No. 239 (S.763) approves regulations of the Coastal Council relating to beach restoration fund application procedures and criteria.

Concurrent Resolution (S.359) memorializes Congress not to impose additional federal fuel taxes as a budget-balancing measure.

New Provisos of the 1989-90 Appropriations Act:

Part I

Proviso 3.45 designates the Committee on Tourism and Trade and the Chairman of the Cultural Affairs Committee to provide oversight responsibilities pertaining to the State's Accommodations Tax Law for a period of one year, during which time it will evaluate the effectiveness of the education programs and workshops implemented by the Department of Parks, Recreation and Tourism for the State's counties/municipalities and the local accommodations tax advisory committees as to the provisions of the Accommodations Tax Law. Recommendations shall be reported to the General Assembly by January 1, 1991.

Proviso 66.3 was revised to add four additional educational institutions in addition to Clemson University for which the Department of Parks, Recreation and Tourism is authorized to establish a parks scholarship program for the purpose of assisting students majoring in park and/or resource management relative to potential future employment with the State Parks Division. The additional educational institutions are Sumter Technical College, Trident Technical College, Horry-Georgetown Technical College and Technical College of the Lowcountry.

Proviso 66.8 (Friends of Snee Farm was deleted) and the new proviso states that the Horry-Georgetown Tourism Commission is not eligible to receive any tourism funds-sharing grants, notwithstanding any other provision of law or appropriation herein contained.

Proviso 66.9 states that the Department of Parks, Recreation and Tourism shall study the economic impact of the Senior Living Industry in South Carolina in cooperation with the Coordinating Council for Economic Development and shall report findings and legislative recommendations to the Joint Legislative Committee on Aging.

Proviso 66.10 states that the Department of Parks, Recreation and Tourism shall be responsible for coordinating the efforts and activities surrounding the implementation of educational programs and/or workshops for the State's counties/municipalities and the local accommodations tax advisory committees as to the provisions of the Accommodations Tax Law.

Proviso 72.1 (Vetoed) relates to the administrative management of the Old Exchange Building. The Governor vetoed this proviso maintaining that turning the management of the building over to the City of Charleston without the consent of the DAR violates the good faith intent of the twenty-year lease signed in 1976 between the DAR and the State. The Governor has asked the Budget and Control Board to work with the Old Exchange Building Commission in developing a management agreement with some entity satisfactory to all parties.

Proviso 124.22 directs the Select Oversight Committee to spend up to $3,000,000 generated from the SHIMS gas tax to fund public transportation.

Part II - Permanent Provisos

Section 6 - Project Priorities for SHIMS (Vetoed)

Prohibits the Highway Department from using any factor in determining project priorities for the SHIMS program other than those factors specified in the enabling legislation. The proviso also requires all factors to be equally weighed and prohibits the merging of the socioeconomic and transportation factors in determining priorities. The Governor vetoed the proviso because (1) it would prohibit the Highway Department from including construction; (2) the proviso eliminates any flexibility in setting priorities as our State grows and transportation needs change and (3) it is not germane to the Act.

Section 16 - Water Recreational Gas Tax (Vetoed)

Allocates one-half of one cent of the gasoline tax derived from boaters who buy gasoline for a water recreational resources fund to pay for improvements at water recreational facilities. The proviso was changed this year to allow a portion of the fund to be used for non-water recreational uses. The Governor vetoed the proviso because (1) the one-half cent of the gas tax is a user fee paid by boaters who buy gasoline; spending this revenue on non-water recreational uses would turn a user fee into a general tax; and (2) it violates the original intent of the water recreational resources fund.

Respectfully submitted,

SENATE MEMBERS                 HOUSE MEMBERS

/s/J.M. Long, Jr.,                             /s/Jennings G. McAbee,

Chm.                                                     Vice Chm.
/s/John C. Land, III                     /s/Dick F. Elliott
/s/Douglas L. Hinds                     /s/McKinley Washington, Jr.

GOVERNOR'S APPOINTEES

/s/William E. Wheless

/s/H. Dan Avant

/s/Charles W. Pigg

The following Bills were taken up, read the second time, and ordered to a third reading:

S. 986 -- Senator Waddell: A BILL TO AMEND ACT 515 OF 1982, RELATING TO THE ANNUAL MARCH OF DIMES BEAUFORT BRIDGE RUN, SO AS TO CHANGE THE DATE OF THE EVENT FROM THE THIRD SATURDAY IN OCTOBER TO THE SECOND SATURDAY IN OCTOBER.

S. 1046 -- Senators Rose and Helmly: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF FOOD TRUST, INC., IN BERKELEY COUNTY.

S. 1066 -- Senator McGill: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF FAIR DEAL WAREHOUSE CORPORATION IN WILLIAMSBURG COUNTY.

The following Bills were taken up, read the third time, and ordered sent to the Senate.

H. 4351 -- Reps. Farr and Phillips: A BILL TO PROVIDE THAT A UNANIMOUS VOTE OF THE MEMBERSHIP OF THE UNION COUNTY BOARD OF SCHOOL TRUSTEES IS REQUIRED TO CLOSE AN ELEMENTARY SCHOOL IN THE SCHOOL DISTRICT.

H. 4380 -- Reps. McKay, Harwell, McEachin, Nettles and Glover: A BILL TO PROVIDE FOR THE MANNER IN WHICH THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT 4 IN FLORENCE COUNTY MUST BE ELECTED AND FOR THE METHOD OF ESTABLISHMENT OF THE TAX MILLAGE FOR THE DISTRICT.

H. 4392 -- Rep. Wilder: A BILL TO AUTHORIZE BLACKVILLE SCHOOL DISTRICT 19 OF BARNWELL COUNTY TO CHARGE AND COLLECT INCIDENTAL FEES FROM PUPILS.

H. 3901 -- Rep. Wilkins: A BILL TO AMEND SECTION 56-1-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS EXEMPT FROM DRIVERS' LICENSING REQUIREMENTS, SO AS TO EXEMPT CITIZENS OF FOREIGN COUNTRIES WHO HAVE A VALID DRIVER'S LICENSE ISSUED BY THAT NATION AND WHOSE COUNTRY GRANTS THE SAME EXEMPTION TO CITIZENS OF THIS STATE.

H. 4253 -- Rep. Corbett: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF CRIME STOPPERS OF HORRY COUNTY, INC., IN HORRY COUNTY.

H. 4257 -- Rep. R. Brown: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF SOUTH CAROLINA RURAL WATER ASSOCIATION.

H. 4264 -- Rep. Bruce: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF CHESNEE HIGH SCHOOL BOOSTERS CLUB, INC., IN SPARTANBURG COUNTY.

H. 4266 -- Rep. Haskins: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF ACADEMY OF ARTS, INC., IN GREENVILLE COUNTY.

H. 4288 -- Rep. Corbett: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF JASMINE INTERIORS, INC., IN HORRY COUNTY.

H. 4289 -- Rep. Corbett: A BILL TO AUTHORIZE THE SECRETARY OF STATE TO RESTORE THE CHARTER OF CENTURION CORPORATION IN HORRY COUNTY.

At 10:30 A.M. the House in accordance with the ruling of the SPEAKER adjourned to meet at 12:00 Noon, Tuesday, January 23.

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