Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:30 A.M., the hour to which it stood adjourned and was called to order by the PRESIDENT.

A quorum being present the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear the words of the Prophet Micah, (4:5):

"All the nations may walk in the name

of their gods; we will walk in the name

of the Lord OUR GOD FOREVER AND EVER."
Let us pray.

Almighty God, Thou of the "unutterable Name" of the ancient Jewish mind, we praise Thee as the Creator of all the Universe... the planet upon which we live out our days... and the Creator of the deeper more mysterious world within us, the world of our minds, and what men call our hearts, even, as the psalmist says... "Thy habitation within us."

Thou has made us in Thine own image... a little lower than the angels.

We pray, in the Name of our God, that our lives may be cleansed of all that corrupts... or tarnishes... or diminishes... the divine image.

We thank Thee that in the life of the Man from Nazareth... and Galilee... we have both an example... and the inspiration... to become the kind of person You want us to become.

Help us, today, to think as He thought, to work as He worked, and serve as He served... in the Name of Micah's God.

Amen.

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

The following were received and referred to the appropriate committees for consideration:

Document No. 1371
Promulgated By State Board of Education
School Safety Assessment
Received By Lt. Governor February 20, 1991
Referred to Senate Committee on Education
120 day review expiration date June 20, 1991

Document No. 1379
Promulgated By Budget And Control Board (Division of State Fire Marshal)
Fire And Life Safety
Received By Lt. Governor February 20, 1991
Referred to Senate General Committee
120 day review expiration date June 20, 1991

The following was received and referred to the appropriate committee for consideration:

Document No. 1334
Promulgated By Board of Education
Policies And Procedures Utilized By The State Board Of Education In The Approval Of Teacher Education Programs Offered By Colleges And Universities In South Carolina
Received By Lt. Governor January 7, 1991
Referred to Senate Committee on Education
120 day review expiration date May 7, 1991
Withdrawn And Resubmitted:
January 22, 1991
February 20, 1991

Senator GIESE introduced Dr. Linda Christmann of Columbia, S.C., Doctor of the Day.

On motion of Senator WADDELL, Senator LEVENTIS was granted a leave of absence for today.

On motion of Senator O'DELL, Senator MULLINAX was granted a leave of absence for today.

S. 674 -- Senators Hayes, Peeler and Hinson: A CONCURRENT RESOLUTION RECOGNIZING YORK COUNTY FOR ITS MANY ACCOMPLISHMENTS AND DECLARING FEBRUARY 26, 1991, "YORK COUNTY DAY".

Returned with concurrence.

Received as information.

S. 675 -- Senator Giese: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MR. ROBERT "BOBBY" F. MOREL OF COLUMBIA FOR HIS HEROIC ASSISTANCE TO A CHARLOTTE POLICEMAN INVOLVED IN A SHOOT-OUT WITH A BURGLARY SUSPECT.

Returned with concurrence.

Received as information.

S. 676 -- Senators Stilwell, Thomas, Wilson, Courson, Giese, McConnell, Peeler, J. Verne Smith, Russell, Shealy, Rose, Martschink, Mitchell and Bryan: A CONCURRENT RESOLUTION EXPRESSING THE SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE FAMILY AND MANY FRIENDS OF THE LATE C. C. "CURT" CLINKSCALES, III.

Returned with concurrence.

Received as information.

S. 686 -- Senators Mitchell, Bryan, Courson, Drummond, Fielding, Giese, Gilbert, Hayes, Helmly, Hinds, Hinson, Holland, Land, Leatherman, Leventis, Long, Lourie, Macaulay, Martin, Martschink, Matthews, McConnell, McGill, Moore, Mullinax, O'Dell, Passailaigue, Patterson, Peeler, Pope, Reese, Rose, Russell, Saleeby, Setzler, Shealy, J. Verne Smith, Nell W. Smith, Stilwell, Thomas, Waddell, Washington, Williams and Wilson: A CONCURRENT RESOLUTION TO COMMEND STEVE SAXON OF SIMPSONVILLE FOR HIS BRAVERY IN RESCUING A GIRL FROM A BURNING CAR AND TO EXTEND AN INVITATION FOR HIM TO VISIT THE GENERAL ASSEMBLY.

Returned with concurrence.

Received as information.

S. 687 -- Senator Wilson: A CONCURRENT RESOLUTION TO COMMEND THE SOUTHERN INTERSCHOLASTIC PRESS ASSOCIATION (SIPA), ITS MEMBERS, AND OFFICERS DURING ITS SIXTY-SIXTH ANNUAL CONVENTION AND ITS NINETEENTH YEAR UNDER THE SPONSORSHIP OF THE COLLEGE OF JOURNALISM AND MASS COMMUNICATIONS AT THE UNIVERSITY OF SOUTH CAROLINA.

Returned with concurrence.

Received as information.

S. 688 -- Senators Fielding, Martschink, McConnell, Passailaigue and Washington: A CONCURRENT RESOLUTION COMMENDING MR. PHILLIP SIMMONS, CHARLESTON'S MASTER BLACKSMITH, FOR HIS OUTSTANDING IRONWORK OVER MANY DECADES AND CONGRATULATING HIM SPECIFICALLY UPON HIS LATEST CREATION, THE GATE AT THE ENTRANCE TO THE CITY'S NEW VISITOR RECEPTION AND TRANSPORTATION CENTER.

Returned with concurrence.

Received as information.

S. 689 -- Senators Lourie, Courson, Giese and Patterson: A CONCURRENT RESOLUTION TO CONGRATULATE THE STATE NEWSPAPER ON THE CELEBRATION OF ITS CENTENNIAL.

Returned with concurrence.

Received as information.

The following were introduced:

S. 696 -- Senator Shealy: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 48-39-295 SO AS TO PROVIDE THAT IF A PROPERTY OWNER IS PROHIBITED ON OR AFTER JULY 1, 1988, FROM CONSTRUCTING A NEW HABITABLE STRUCTURE OR REPAIRING OR REPLACING AN EXISTING HABITABLE STRUCTURE ON HIS PROPERTY, OR IS PROHIBITED FROM CONSTRUCTING OTHER NEW PERMANENT IMPROVEMENTS OR REPLACING OR REPAIRING OTHER EXISTING PERMANENT IMPROVEMENTS ON HIS PROPERTY AS A RESULT OF CERTAIN PROVISIONS OF LAW REGULATING BEACHES AND BEACH CONSTRUCTION, THIS IS CONSIDERED AN INVERSE CONDEMNATION OF HIS PROPERTY BY THE STATE AND AS SUCH THE PROPERTY OWNER IS ENTITLED TO COMPENSATION PURSUANT TO THE PROVISIONS OF THE EMINENT DOMAIN PROCEDURE ACT.

Senator SHEALY spoke on the Bill.

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

S. 697 -- Senators Martschink and Nell W. Smith: A CONCURRENT RESOLUTION TO DECLARE THE MONTH OF MARCH AS "WOMEN'S HISTORY MONTH" IN SOUTH CAROLINA.

On immediate consideration, the Concurrent Resolution was adopted, ordered sent to the House.

S. 698 -- Senator Peeler: A CONCURRENT RESOLUTION EXPRESSING THE SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY AT THE DEATH OF MR. HARRY L. CLINE, LONGTIME CHEROKEE COUNTY PUBLIC DEFENDER, AND EXTENDING SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

On immediate consideration, the Concurrent Resolution was adopted, ordered sent to the House.

H. 3243 -- Reps. Boan and McElveen: A BILL TO AMEND SECTION 38-13-160, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INQUIRES BY THE INSURANCE COMMISSIONER, SO AS TO INCLUDE THE WORK PAPERS AND DRAFT REPORTS OF EXAMINERS IN THE CONFIDENTIALITY PROVISION AND PROVIDE EXCEPTIONS.

Read the first time and referred to the Committee on Banking and Insurance.

H. 3511 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTION 41-15-320, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PENALTIES FOR VIOLATING RULES, REGULATIONS, OR ORDERS OF THE COMMISSIONER OF LABOR UNDER THE OCCUPATIONAL HEALTH AND SAFETY LAWS, SO AS TO PROVIDE THAT ANY EMPLOYER WHO WILFULLY OR REPEATEDLY VIOLATES ANY OCCUPATIONAL SAFETY OR HEALTH RULE OR REGULATION PROMULGATED UNDER THESE LAWS MAY BE ASSESSED A CIVIL PENALTY OF NOT MORE THAN SEVENTY THOUSAND, RATHER THAN TEN THOUSAND, DOLLARS FOR EACH VIOLATION, AND TO CHANGE THE MAXIMUM CIVIL PENALTY WHICH MAY BE ASSESSED FOR VIOLATING CERTAIN OTHER RELATED RULES, REGULATIONS, OR ORDERS FROM ONE THOUSAND DOLLARS TO SEVEN THOUSAND DOLLARS.

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

H. 3168 -- Rep. Huff: A BILL TO AMEND SECTION 20-7-1572, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GROUNDS FOR TERMINATION OF PARENTAL RIGHTS, SO AS TO DELETE THAT FAILURE TO SUPPORT A CHILD REQUIRES A REQUEST FOR A CONTRIBUTION BY THE CUSTODIAN OF THE CHILD AND TO PROVIDE THAT A REQUEST FOR SUPPORT IS A CIRCUMSTANCE THAT THE COURT MAY CONSIDER IN DETERMINING WHETHER A PARENT HAS WILFULLY FAILED TO SUPPORT A CHILD.

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

H. 3350 -- Reps. Burch, Hodges, Haskins, Cole, Huff, J. Harris, Baker and Keesley: A BILL TO AMEND ARTICLE 9, CHAPTER 3, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO KIDNAPPING, SO AS TO PROVIDE FOR THE FELONIES OF KIDNAPPING IN THE FIRST DEGREE, KIDNAPPING IN THE SECOND DEGREE, UNLAWFUL RESTRAINT IN THE FIRST DEGREE, AND UNLAWFUL RESTRAINT IN THE SECOND DEGREE, TO DEFINE CERTAIN TERMS IN REGARD TO THESE OFFENSES, AND TO REVISE THE CRIME OF CONSPIRACY TO KIDNAP; AND TO AMEND SECTION 16-1-10 OF THE 1976 CODE, RELATING TO CRIMES CLASSIFIED AS FELONIES, SO AS TO INCLUDE THESE CRIMES AS FELONIES.

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

H. 3048 -- Rep. Keyserling: A BILL TO AMEND SECTION 56-7-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNIFORM TRAFFIC TICKET, SO AS TO PROVIDE THAT THE UNIFORM TRAFFIC TICKET MUST BE USED FOR VIOLATIONS OF COUNTY OR MUNICIPAL ORDINANCES.

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

H. 3541 -- Reps. Altman, Snow and Harvin: A CONCURRENT RESOLUTION TO NAME THE NEW DIVISION OF MOTOR VEHICLES COLUMBIA SHOP ROAD DISTRICT AND BRANCH OFFICE OF THE DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION IN HONOR OF EMORY P. AUSTIN, JR.

Whereas, Emory P. Austin, Jr., served as director of the Division of Motor Vehicles of the South Carolina Department of Highways and Public Transportation from 1968 until his retirement in 1986; and

Whereas, Mr. Austin was only the fourth person to hold that position since 1935, and served longer than any of his predecessors, at a time when the numbers of registered vehicles and registered drivers in the State increased to well over two million of each, and when the number of full-time motor vehicle offices increased from twenty-one to fifty-eight; and

Whereas, under his leadership, the division handled approximately five million transactions with the motoring public each year; and

Whereas, Mr. Austin also served as the department's principal liaison with the General Assembly during this same period of time; and

Whereas, Mr. Austin's career with the department spanned thirty-one years, beginning in 1954. He held supervisory positions in the audit and review, titles and registration, and safety responsibility and accident records sections, and, in 1964, was named administrative assistant to Chief Highway Commissioner Silas N. Pearman. This assignment involved general administrative duties, liaison with the divisions of the department and the General Assembly and also the responsibility of conducting public hearings on highway design and location; and

Whereas, the members of the General Assembly and the South Carolina State Highways and Public Transportation Commission wish to recognize Mr. Austin in a tangible way for his years of distinguished public service. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the new Division of Motor Vehicles Columbia Shop Road District and Branch Office, scheduled to open in April, 1991, be named in honor of Emory P. Austin, Jr.

Referred to the Committee on Transportation.

H. 3542 -- Rep. G. Brown: A CONCURRENT RESOLUTION TO COMMEND PEARL F. FRYAR OF BISHOPVILLE FOR HIS MANY AWARDS AND EXCELLENT WORK IN LANDSCAPING, GARDENING, AND PLANT PROPAGATION AND IN PARTICULAR HIS SCULPTURE TOPIARY GARDEN.

On immediate consideration, the Concurrent Resolution was adopted, ordered returned to the House.

H. 3545 -- Reps. R. Young, Gonzales and Holt: A CONCURRENT RESOLUTION TO CONGRATULATE THE HONORABLE CASPER H. PADGETT, SR., UPON HIS RETIREMENT FROM EIGHTEEN YEARS OF SERVICE AS NORTH CHARLESTON MUNICIPAL COURT JUDGE, TO THANK HIM FOR HIS DEDICATED, UNTIRING SERVICE TO HIS COMMUNITY AND THIS STATE, AND TO WISH HIM GOOD HEALTH AND HAPPINESS IN HIS RETIREMENT.

On immediate consideration, the Concurrent Resolution was adopted, ordered returned to the House.

Senator MOORE, from the Committee on Invitations, submitted a favorable report on:

H. 3284 -- Reps. Keyserling, H. Brown, Rogers, Jaskwhich and J. Harris: A CONCURRENT RESOLUTION TO INVITE THE WINNERS OF THE 1991 SOUTH CAROLINA FOLK HERITAGE AWARD AND THE MEMBERS OF THE 1991 FOLK HERITAGE AWARD ADVISORY COMMITTEE TO ATTEND A JOINT SESSION OF THE GENERAL ASSEMBLY IN THE HALL OF THE HOUSE ON WEDNESDAY, APRIL 3, 1991, AT 12:00 NOON, AND TO RECOGNIZE AND COMMEND THE 1990 SOUTH CAROLINA FOLK HERITAGE AWARD WINNERS FOR THEIR OUTSTANDING CONTRIBUTIONS TO FOLK ART IN SOUTH CAROLINA.

Ordered for consideration tomorrow.

Senator MOORE, from the Committee on Invitations, submitted a favorable report on:

H. 3468 -- Reps. Sheheen, Wilkins and Harwell: A CONCURRENT RESOLUTION TO INVITE THE CHIEF JUSTICE OF THE SOUTH CAROLINA SUPREME COURT, THE HONORABLE GEORGE T. GREGORY, JR., TO ADDRESS THE GENERAL ASSEMBLY IN JOINT SESSION ON THE STATE OF THE JUDICIARY AT 12:00 O'CLOCK NOON ON WEDNESDAY, FEBRUARY 27, 1991.

On motion of Senator MOORE, with unanimous consent, the Concurrent Resolution was taken up for immediate consideration.

On motion of Senator MOORE, the Concurrent Resolution was adopted, ordered returned to the House.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

H. 3463 -- Ways and Means Committee: A BILL TO AMEND SECTION 12-9-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATE INCOME TAX WITHHOLDING PAYMENTS, SO AS TO EXEMPT NONRESIDENT MOTION PICTURE COMPANIES FROM THE TWO PERCENT WITHHOLDING ON BUSINESS OF A TEMPORARY NATURE IN THIS STATE AND TO EXEMPT ENTITIES PERFORMING PERSONAL SERVICES FOR MOTION PICTURE COMPANIES IF THE ENTITY PERFORMING THE PERSONAL SERVICES AND THE MOTION PICTURE COMPANY EACH OBTAINS A CERTIFICATE OF AUTHORITY TO CONDUCT BUSINESS IN THIS STATE; AND TO AMEND SECTION 12-36-2120, RELATING TO SALES TAX EXEMPTIONS, SO AS TO EXEMPT SUPPLIES, TECHNICAL EQUIPMENT, MACHINERY, AND ELECTRICITY SOLD TO MOTION PICTURE COMPANIES AND TO PROVIDE DEFINITIONS.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator LAND proposed the following amendment (BBM\9205 BD), which was adopted:

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

/SECTION __. (A) Section 12-36-2120(32) of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended to read:

"(32) natural and liquefied petroleum gas and electricity used exclusively in the production of poultry, livestock, swine, and milk;"

(B) Section 12-36-2120 of the 1976 Code, as added by Section 74, Part II, Act 612 of 1990, is amended by adding an appropriately numbered item to read:

"( ) electricity used to irrigate crops;"

(C) This section takes effect July 1, 1992./

Renumber sections to conform.

Amend title to conform.

Senator LAND explained the amendment.

I refrained from voting on this amendment so as to avoid any possibility of conflict inasmuch as this amendment grants a tax exemption which would impact on my personal business.

There being no further amendments, the Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.

The following Bill having been read the second time was passed and ordered to a third reading:

S. 695 -- Senators Waddell, Leatherman, Moore, J. Verne Smith, Thomas and Giese: A BILL TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE AUTHORIZATION OF CAPITAL IMPROVEMENT BONDS, SO AS TO INCREASE THE INSTITUTION SIZE FROM EIGHT HUNDRED EIGHT TO ONE THOUSAND, ONE HUNDRED THIRTY BEDS IN THE MEDIUM SECURITY INSTITUTIONS TO BE CONSTRUCTED BY THE DEPARTMENT OF CORRECTIONS INSTEAD OF THE MEDIUM/MAXIMUM INSTITUTION PREVIOUSLY AUTHORIZED, AND TO PROVIDE THAT THE GENERAL ASSEMBLY INTENDS TO AUTHORIZE THE ADDITIONAL FUNDS TO COMPLETE THESE ENLARGED PENAL INSTITUTIONS IN LEGISLATION AUTHORIZING THE ISSUANCE OF ADDITIONAL CAPITAL IMPROVEMENT BONDS DURING THE 1991 SESSION OF THE GENERAL ASSEMBLY.

S. 690 -- Senator Land: A CONCURRENT RESOLUTION TO MEMORIALIZE CONGRESS TO MAKE FEDERALLY- FUNDED MEDICAL PAYMENTS EQUALIZED FOR EQUAL TREATMENT AT ALL MEDICAL FACILITIES ELIGIBLE FOR THESE PAYMENTS SO AS TO ENCOURAGE MORE DOCTORS TO PRACTICE MEDICINE IN RURAL AREAS IN SOUTH CAROLINA.

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

H. 3514 -- Reps. Kirsh, Meacham, Foster and Hayes: A BILL TO AMEND SECTION 50-11-870, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BIRD SANCTUARIES, SO AS TO REVISE THE AREA OF ONE OF THE SANCTUARIES IN YORK COUNTY.

On motion of Senator PEELER, the Bill was carried over.

S. 684 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 38-31-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND POWERS OF THE CHIEF INSURANCE COMMISSIONER, SO AS TO PROVIDE ADDITIONAL POWERS PERTAINING TO MAXIMUM ASSESSMENTS ON ACCOUNTS OF PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION MEMBERS AND TO INSURANCE EMERGENCIES OR CATASTROPHES.

On motion of Senator LEATHERMAN, the Bill was carried over.

S. 685 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 38-9-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CAPITAL AND SURPLUS OF STOCK INSURERS, SO AS TO INCREASE THE REQUIRED AMOUNTS, AUTHORIZE THE CHIEF INSURANCE COMMISSIONER TO REQUIRE ADDITIONAL INITIAL CAPITAL AND SURPLUS AND PROVIDE FOR THE INITIAL CAPITAL AND SURPLUS; TO AMEND SECTION 38-9-20, RELATING TO SURPLUS OF MUTUAL INSURERS, SO AS TO INCREASE THE REQUIRED AMOUNTS, AUTHORIZE THE CHIEF INSURANCE COMMISSIONER TO REQUIRE ADDITIONAL INITIAL SURPLUS, AND PROVIDE FOR THE INITIAL SURPLUS; TO AMEND SECTION 38-9-30, RELATING TO CAPITAL AND SURPLUS OF INSURERS LICENSED ON JULY 1, 1988, SO AS TO CHANGE THE DATE TO JULY 1, 1991, CHANGE RELATED DATES DETERMINING APPLICATION OF THE SECTION, AND PROVIDE REQUIREMENTS FOR AN INSURER WHICH IS THE SUBJECT OF A CHANGE OF CONTROL; AND TO AMEND SECTION 38-33-100, RELATING TO CERTIFICATES OF AUTHORITY FOR HEALTH MAINTENANCE ORGANIZATIONS, SO AS TO PROVIDE FOR THE AMOUNT OF NET WORTH WHICH MUST BE CAPITAL FOR A STOCK HEALTH MAINTENANCE ORGANIZATION AND PROVIDE FOR ORGANIZATIONS IN COMPLIANCE WITH THE LAW ON DECEMBER 31, 1990.

On motion of Senator LEATHERMAN, the Bill was carried over.

H. 3240 -- Reps. Boan and McElveen: A BILL TO AMEND SECTION 38-31-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DUTIES AND POWERS OF THE CHIEF INSURANCE COMMISSIONER, SO AS TO PROVIDE ADDITIONAL POWERS PERTAINING TO MAXIMUM ASSESSMENTS ON ACCOUNTS OF PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION MEMBERS AND TO INSURANCE EMERGENCIES OR CATASTROPHES.

On motion of Senator LEATHERMAN, the Bill was carried over.

H. 3508 -- Labor, Commerce and Industry Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 38-9-200, 38-9-210, AND 38-9-220 SO AS TO PROVIDE REINSURANCE CREDITS AND LIABILITY REDUCTIONS ALLOWED FOR DOMESTIC CEDED INSURERS AND DEFINE TERMS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-21-125 SO AS TO PROVIDE FOR ACQUISITIONS OF INSURERS NOT COVERED BY THE INSURANCE HOLDING COMPANY REGULATORY ACT; TO AMEND THE 1976 CODE BY ADDING CHAPTER 26 TO TITLE 38 SO AS TO PROVIDE FOR THE ADMINISTRATIVE SUPERVISION OF INSURERS ACT; TO AMEND THE 1976 CODE BY ADDING SECTION 38-27-100 SO AS TO PROVIDE FOR THE CONDUCT OF INSURANCE PROCEEDINGS BEGUN BEFORE THE EFFECTIVE DATE OF THE INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION ACT; TO AMEND THE 1976 CODE BY ADDING SECTION 38-27-110 SO AS TO PROVIDE FOR PAYMENTS TO A GUARANTY ASSOCIATION WHEN AN INSURER IS SUBJECT TO A DELINQUENCY PROCEEDING; TO AMEND SECTION 38-5-120, RELATING TO THE REVOCATION AND SUSPENSION OF INSURANCE CERTIFICATES OF AUTHORITY, SO AS TO PROVIDE STANDARDS FOR DETERMINING HAZARDOUS INSURANCE PROCEEDINGS AND AUTHORIZE THE CHIEF INSURANCE COMMISSIONER TO TAKE ACTION WHEN AN INSURER IS IN AN UNSOUND OR A HAZARDOUS CONDITION; TO AMEND SECTION 38-9-10, RELATING TO CAPITAL AND SURPLUS OF STOCK INSURERS, SO AS TO INCREASE THE REQUIRED AMOUNTS, AUTHORIZE THE CHIEF INSURANCE COMMISSIONER TO REQUIRE ADDITIONAL INITIAL CAPITAL AND SURPLUS, AND PROVIDE FOR THE INITIAL CAPITAL AND SURPLUS; TO AMEND SECTION 38-9-20, RELATING TO SURPLUS OF MUTUAL INSURERS, SO AS TO INCREASE THE REQUIRED AMOUNTS, AUTHORIZE THE COMMISSIONER TO REQUIRE ADDITIONAL INITIAL SURPLUS, AND PROVIDE FOR INITIAL SURPLUS; TO AMEND SECTION 38-9-30, RELATING TO CAPITAL AND SURPLUS OF INSURERS LICENSED ON JULY 1, 1988, SO AS TO CHANGE THE DATE TO JULY 1, 1991, CHANGE RELATED DATES DETERMINING APPLICATION OF THE SECTION, AND PROVIDE REQUIREMENTS FOR AN INSURER WHICH IS THE SUBJECT OF A CHANGE OF CONTROL; TO AMEND SECTION 38-9-170, RELATING TO UNEARNED PREMIUM RESERVES OF INSURERS, SO AS TO REVISE THE CIRCUMSTANCES UNDER WHICH DEDUCTIONS MAY BE MADE FROM RESERVES; TO AMEND SECTION 38-9-190, RELATING TO LOSS AND CLAIM RESERVES OF INSURERS, SO AS TO REVISE THE CIRCUMSTANCES UNDER WHICH CREDIT FOR REINSURANCE IS ALLOWED AS AN ASSET OR A DEDUCTION FROM RESERVES; TO AMEND SECTION 38-11-10, RELATING TO LEGISLATIVE INTENT PERTAINING TO INVESTMENTS BY INSURERS, SO AS TO ESTABLISH STANDARDS FOR THE DEVELOPMENT AND ADMINISTRATION OF INVESTMENTS; TO AMEND SECTION 38-11-50, RELATING TO LIMITATIONS ON THE INVESTMENTS, SO AS TO PROVIDE FOR THE VALUATION OF INVESTMENTS AND PROMULGATION OF RELATED REGULATIONS; TO AMEND SECTION 38-21-90, RELATING TO THE INSURANCE COMMISSIONER'S APPROVAL OF AN ACQUISITION OF CONTROL OF AN INSURER, SO AS TO PROVIDE FOR APPLICATION OF THE COMPETITIVE STANDARD; TO AMEND SECTION 38-21-140, RELATING TO THE CONTENT OF INSURANCE REGISTRATION STATEMENTS, SO AS TO INCLUDE A PLEDGE OF THE INSURER'S STOCK FOR A LOAN MADE TO A MEMBER OF THE INSURANCE HOLDING COMPANY SYSTEM; TO AMEND SECTION 38-21-270, RELATING TO NOTICE AND APPROVAL OF EXTRAORDINARY DIVIDENDS AND DISTRIBUTIONS BY INSURERS, SO AS TO REVISE THE DETERMINATION OF AN EXTRAORDINARY DIVIDEND AND DISTRIBUTION; TO AMEND SECTION 38-27-10, RELATING TO THE CITE FOR THE "INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION ACT", SO AS TO DELETE "SUPERVISION"; TO AMEND SECTION 38-27-40, RELATING TO APPLICATION OF THE ACT, SO AS TO ADD PREPAID HEALTH CARE DELIVERY PLANS; TO AMEND SECTIONS 38-27-50, 38-27-230, AND 38-27-310, RELATING TO DEFINITIONS, HEARINGS, AND REHABILITATION UNDER THE ACT, SO AS TO DELETE THE REFERENCES TO "VALID" AS IT APPLIES TO "ORDER" AND SECTION 38-27-210, INSURANCE COMMISSIONER'S ORDERS AND SUPERVISION; TO AMEND SECTION 38-27-370, RELATING TO ORDERS TO LIQUIDATE AN INSURER, SO AS TO PROVIDE FOR A PLAN FOR THE CONTINUED PERFORMANCE OF A DEFENDANT COMPANY'S POLICY CLAIMS OBLIGATIONS DURING THE PENDENCY OF AN APPEAL; TO AMEND SECTION 38-27-400, RELATING TO THE POWERS OF A LIQUIDATOR, SO AS TO AUTHORIZE THE AUDIT OF THE BOOKS AND RECORDS OF AGENTS OF THE INSURER AND PROVIDE THAT A LIQUIDATOR IS NOT OBLIGATED TO DEFEND OR CONTINUE TO DEFEND CLAIMS AFTER THE ENTRY OF A LIQUIDATION ORDER; TO AMEND SECTION 38-27-610, RELATING TO THE PRIORITY OF DISTRIBUTION OF CLAIMS FROM AN INSURER'S ESTATE, SO AS TO INCLUDE IN CLASS 3 CLAIMS OF FEDERAL, STATE, AND LOCAL GOVERNMENTS FOR LOSSES INCURRED, "LOSS CLAIMS", AND EXCLUDE THOSE CLAIMS FROM CLASS 5; TO AMEND SECTION 38-27-950, RELATING TO PROCEEDINGS INSTITUTED BY THE INSURANCE COMMISSIONER, SO AS TO DELETE THE REFERENCE TO SECTION 38-27-210, ORDERS AND SUPERVISION; TO AMEND SECTION 38-33-100, RELATING TO CERTIFICATES OF AUTHORITY FOR HEALTH MAINTENANCE ORGANIZATIONS, SO AS TO INCREASE THE NET WORTH REQUIREMENTS, PROVIDE REQUIREMENTS FOR A STOCK HEALTH MAINTENANCE ORGANIZATION, AND PROVIDE FOR ORGANIZATIONS IN COMPLIANCE WITH THE LAW ON DECEMBER 31, 1990; TO AMEND SECTION 38-55-30, RELATING TO LIMITATION OF RISK BY INSURERS, SO AS TO APPLY THE LIMITATION TO CAPTIVES AND DEFINE THE TERM; TO AMEND SECTION 38-87-40, RELATING TO OUT-OF-STATE CHARTERED RISK RETENTION GROUPS, SO AS TO PROVIDE FOR THE EXAMINATION REGARDING FINANCIAL CONDITION TO BE CONDUCTED IN ACCORDANCE WITH THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' EXAMINER'S HANDBOOK INSTEAD OF THE STANDARDS AND PROCEDURES APPLICABLE TO EXAMINATIONS OF ADMITTED INSURERS; TO AMEND SECTION 38-87-90, RELATING TO THE PURCHASE OF LIABILITY INSURANCE FROM A NONSTATE APPROVED SURPLUS LINES INSURER, SO AS TO PROVIDE THE CONDITIONS UNDER WHICH INSURANCE MAY BE PURCHASED FROM A RISK RETENTION GROUP NOT CHARTERED OR AN INSURER NOT ADMITTED IN THE STATE; AND TO REPEAL SECTION 38-27-210 RELATING TO THE INSURANCE COMMISSIONER'S ORDERS AND SUPERVISION.

On motion of Senator LEATHERMAN, the Bill was carried over.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

S. 226 -- Senators Waddell and Passailaigue: A JOINT RESOLUTION TO ALLOW STATE INCOME TAX DEDUCTIONS FOR INDIVIDUALS FOR COMMERCIAL TIMBER LOSSES AND TIMBER DAMAGE ASSESSMENTS ATTRIBUTABLE TO THE IMPACT OF HURRICANE HUGO IN COUNTIES DECLARED A FEDERAL DISASTER AREA BECAUSE OF THE IMPACT OF HURRICANE HUGO, TO PRESCRIBE THE ELIGIBILITY REQUIREMENTS FOR THE DEDUCTION INCLUDING REDUCTION OF OTHER TAX ATTRIBUTES OF TAXPAYERS CLAIMING THE DEDUCTION, AND TO ELIMINATE PENALTIES FOR FAILURE TO FILE TAX RETURNS DUE FROM SEPTEMBER 18, 1989, TO NOVEMBER 30, 1989, FOR TAXPAYERS IN COUNTIES DECLARED DISASTER AREAS.

The Senate proceeded to a consideration of the Joint Resolution. The question being the third reading of the Joint Resolution.

Senator GIESE proposed the following amendment (NO5\7272.BD), which was adopted:

Amend the bill, as and if amended, SECTION 4, page 3, line 43, by striking /1991/ and inserting /1992/.

Amend title to conform.

Senator GIESE argued in favor of the adoption of the amendment.

Senator GIESE moved that the amendment be adopted.

The amendment was adopted.

Senators SHEALY and MARTSCHINK desired to be recorded as voting against the adoption of the amendment.

Senator PASSAILAIGUE spoke on the Joint Resolution.

There being no further amendments, the Joint Resolution was read the third time, passed and ordered sent to the House of Representatives.

Having voted on the prevailing side, Senator McGILL moved to reconsider the vote whereby the Joint Resolution was read the third time.

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

Courson Fielding Hinds
Hinson Martschink McConnell
McGill Passailaigue Peeler
Pope Reese Rose
Thomas Washington Wilson

Bryan Giese Gilbert
Hayes Lourie Macaulay
Martin Matthews Mitchell
Moore Shealy Smith, J.V.
Smith, N.W. Stilwell Waddell
Williams

The Senate refused to reconsider the vote whereby the Joint Resolution was read the third time.

The Joint Resolution having been read the third time was ordered sent to the House of Representatives.

I voted against S. 226 for several reasons. First, the people who most need the help will not have 200 dollars a day to pay for surveys and the benefit will go mainly to those who own hundreds or thousands of acres.

They have, indeed, had a loss, but so has the lady farmer in Gilbert who has had 9,000 dollars stolen which she recently called me about. We cannot make everyone whole who has suffered injury.

I object to postponing payments to future years as this Bill does. With formula funding and postponements such as this Bill does, we would have to discover oil to remain solvent.

Senator WILLIAMS moved that when the Senate adjourns on Friday, February 22, 1991, it stand adjourned to meet next Tuesday, February 26, 1991, at 12:00 Noon, which motion was adopted.

At 12:05 P.M., on motion of Senator WILLIAMS, the Senate adjourned to meet tomorrow at 11:00 A.M.

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