Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 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 some words of St. Paul to the Corinthians (II Cor. 7:5-7) (NIM):

"For when we came into Macedonia,

this body of ours had no rest, but

we were harassed at every turn...

conflicts on the outside, fears within.

But God, who comforts the downcast,

comforted us by the coming of Titus... "
Let us pray.

Lord, God of us all, we know that St. Paul had a miserable time in Athens... and when he needed encouragement You sent Titus to him to lift up his spirits.

God bless the Tituses of this world in these days... those who encourage us... who arouse us from despair and give us an uplift by the tone of a voice... or the handclasp of a friend... or a word of support.

Help us, perhaps today, to be a Titus to somebody that is having a hard time... whose heart is sore... and whose courage in a good cause is wearing out!

So, teach us to keep on "tracing the rainbow through the rain"... and "feeling the promise is not vain"... and being a Titus to somebody that just might need us at a crucial point... in the Name of St. Paul's God.

Amen.

Senator WADDELL made the point that a quorum was not present. It was ascertained that a quorum was not present.

Senator WADDELL moved that a call of the Senate be made. The following Senators answered the call:

Bryan Courson Drummond
Fielding Gilbert Hayes
Hinds Hinson Holland
Land Leatherman Leventis
Long Lourie Macaulay
Martin Martschink Matthews
McConnell McGill Mitchell
Moore Mullinax O'Dell
Passailaigue Patterson Peeler
Pope Reese Rose
Russell Saleeby Setzler
Shealy Smith, J.V. Smith, N.W.
Stilwell Thomas Waddell
Washington Williams Wilson

The Senate resumed.

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

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

Document No. 1337
Promulgated By Department of Health and Environmental Control
Standards for Licensing Day Care Facilities for Adults
Received By Lt. Governor January 8, 1991
Referred to Senate Committee on Medical Affairs
120 day review expiration date May 7, 1991
Withdrawn April 26, 1991
Resubmitted May 1, 1991
Revised Expiration Date May 21, 1991

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

Document No. 1338
Promulgated By Board of Registration for Professional Engineers and Land Surveyors
Article 4. Minimum Standards Manual for Practice of Land Surveying in South Carolina
Received By Lt. Governor December 14, 1990
Referred to Senate Committee on Labor, Commerce and Industry
120 day review expiration date May 7, 1991
Withdrawn and resubmitted February 21, 1991
Withdrawn February 27, 1991
Senate LCI requested withdrawal March 1, 1991
Resubmitted March 20, 1991
Revised Expiration Date May 29, 1991

Senator McGILL introduced Dr. Michael Holmes of Kingstree, S.C., Doctor of the Day.

Senator SHEALY rose to a Point of Personal Privilege.

Columbia, S.C., May 1, 1991

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3257 -- Reps. Rudnick, Wilder, Baxley, Klapman, Rama, Wright, Waites and Corning: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-41-290 SO AS TO REQUIRE THE OWNER OR OPERATOR OF A MOTOR VEHICLE FUEL SERVICE STATION TO DISPENSE GASOLINE OR OTHER MOTOR VEHICLE FUEL TO A DISABLED DRIVER UPON HIS REQUEST WHEN HE IS PROPERLY IDENTIFIED BY EITHER A PLACARD OR DISABLED LICENSE TAG AND HAVE THE GASOLINE OR OTHER FUEL DISPENSED TO THE DISABLED DRIVER AT THE SAME PRICE OTHERWISE CHARGED FOR GASOLINE OR OTHER FUEL PURCHASED ON A SELF-SERVICE BASIS.
and has ordered the Bill enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

S. 18 -- Senator Passailaigue: A BILL TO AMEND SECTION 7-11-70, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO POLITICAL CANDIDATE NOMINATIONS BY PETITION, SO AS TO EXTEND THE TIME FOR FILING THE PETITION IN THE EVENT OF AN EMERGENCY DECLARED BY THE GOVERNOR AND THE CONDITIONS PRECIPITATING THE EMERGENCY DECLARATION PREVENT THE CANDIDATE FROM TIMELY FILING THE PETITION.

The House returned the Bill with amendments.

On motion of Senator PASSAILAIGUE, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

S. 950 -- Senators Martschink, McConnell, Fielding, Passailaigue and Washington: A CONCURRENT RESOLUTION TO CONGRATULATE FRAN S. HAWK OF CHARLESTON UPON RECEIVING A PRESIDENTIAL CITATION FOR SERVICE AWARD DURING THE LOWCOUNTRY VOLUNTEER OF THE YEAR AWARDS CEREMONY SPONSORED BY THE TRIDENT UNITED WAY.

Returned with concurrence.

Received as information.

S. 915 -- Senators Drummond and Land: A BILL TO AMEND SECTION 38-73-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ASSIGNED RISKS, SO AS TO PROVIDE ASSIGNED RISK POOLS SHALL ACCEPT WORKERS' COMPENSATION INSURANCE POLICIES ON THE BASIS THAT THEY PROVIDE COVERAGE TO VENDORS PROVIDING LOGGING SERVICES TO THE NAMED INSURED.

On motion of Senator SALEEBY, with unanimous consent, the Bill was recalled from the Committee on Banking and Insurance.

The Bill was read the second time, passed and ordered to a third reading with notice of general amendments.

The following were introduced:

S. 951 -- Senators Leventis and Rose: A CONCURRENT RESOLUTION DIRECTING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO ORDER LAIDLAW ENVIRONMENTAL SERVICES TO CEASE OPERATIONS OF ACCEPTING AND DISPOSING OF WASTE IN ITS PINEWOOD LANDFILL FACILITY UNTIL SUCH TIME AS A COMPLETE INSPECTION OF THE FACILITY IS MADE BY THE DEPARTMENT FOR LEAKS AND OTHER DETERMINATIONS.

Whereas, Laidlaw Environmental Services has reported to have had another breach of its plastic liner; and

Whereas, millions of tons of hazardous waste are stored at the Pinewood facility; and

Whereas, the escape of any hazardous materials from the facility could cause irreversible environmental damage to the surrounding area; and

Whereas, it is imperative to have the landfill facility thoroughly inspected to assure that no possibility of leakage and resulting environmental damage exists; and

Whereas, it is the duty of state government to protect and safeguard the health of the citizens and the environment of the State of South Carolina. Now, therefore,

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

That the General Assembly of South Carolina direct the Department of Health and Environmental Control to order Laidlaw Environmental Services to cease operations of accepting and disposing of waste at its Pinewood landfill facility until such time as a complete inspection of the facility is made by DHEC for leaks, until it is determined what repairs are necessary to assure that any existing leaks are sealed and that no new leaks will occur, and until any environmental damage that has occurred as a result of the collapsed berm and ruptured liner has been corrected.

Senator LEVENTIS spoke on the Resolution.

Senator LEVENTIS asked unanimous consent to make a motion that the Concurrent Resolution be adopted.

Senator J. VERNE SMITH objected.

Referred to the Committee on Medical Affairs.

S. 952 -- Senators Leventis and Land: A CONCURRENT RESOLUTION TO RECOGNIZE LIEUTENANT GENERAL CHARLES A. HORNER, COMMANDER OF THE NINTH AIR FORCE, HEADQUARTERED AT SHAW AIR FORCE BASE, FOR HIS BRAVERY AND SERVICE WITH DISTINCTION IN OPERATION DESERT STORM AND TO INVITE HIM TO ADDRESS A JOINT SESSION OF THE GENERAL ASSEMBLY AT A CONVENIENT TIME AND DATE.

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

S. 953 -- Senator Martschink: A BILL TO AMEND SECTIONS 5-31-2020 AND 6-11-1220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO SEWERAGE COLLECTION AND DISPOSAL, SO AS TO ADD ADDITIONAL DEFINITIONS, TO AMEND SECTION 5-31-2030, RELATING TO THE POWERS OF MUNICIPALITIES IN REGARD TO SEWERAGE COLLECTION AND DISPOSAL, AND SECTION 6-11-1230, AS AMENDED, RELATING TO THE POWERS OF THE GOVERNING COMMISSIONS OF SPECIAL PURPOSE OR PUBLIC SERVICE DISTRICTS IN REGARD TO SEWERAGE COLLECTION AND DISPOSAL, SO AS TO FURTHER PROVIDE FOR THESE POWERS INCLUDING ADDITIONAL AND REVISED METHODS OF OBTAINING FUNDING FOR THESE PURPOSES.

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

S. 954 -- Senator Macaulay: A BILL TO AMEND SECTION 8-17-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT, MEMBERSHIP, AND POWERS OF A GRIEVANCE COMMITTEE, SO AS TO AUTHORIZE THE COMMITTEE TO SUBPOENA WITNESSES.

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

S. 955 -- Senator Mitchell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-23-170 SO AS TO PROVIDE FOR EVIDENCE OF BATTERED SPOUSE SYNDROME TO DEMONSTRATE THE DEFENDANT ACTED IN SELF-DEFENSE OR IN DEFENSE OF ANOTHER.

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

S. 956 -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO INFECTIOUS WASTE MANAGEMENT, DESIGNATED AS REGULATION DOCUMENT NUMBER 1374, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Read the first time and ordered placed on the Calendar without reference.

On motion of Senator MACAULAY, S. 956 was ordered to receive a second and third reading on the next two consecutive legislative days.

S. 957 -- Senators Shealy, Moore and Setzler: A CONCURRENT RESOLUTION MEMORIALIZING CONGRESS, THE PRESIDENT OF THE UNITED STATES AND THE UNITED STATES DEPARTMENT OF ENERGY TO SELECT THE SAVANNAH RIVER SITE IN AIKEN COUNTY, SOUTH CAROLINA, AS THE SITE FOR THE CONSTRUCTION AND OPERATION OF THE PROPOSED PRODUCTION REACTOR.

Whereas, the Savannah River Site has been an integral part of South Carolina's economy for more than four decades, having a direct impact on the employment of thousands of South Carolinians throughout a fourteen-county region of this State and thousands of others in several counties of northern Georgia who work daily at the site and in hundreds of support industries; and

Whereas, the positive economic impact in the creation of thousands of new jobs notwithstanding, the potential unemployment of as many as sixty thousand South Carolinians and Georgians who work at the site and in support industries would result from location of this project at a site other than Aiken County, South Carolina; and

Whereas, the infrastructure currently exists to support construction and operation of such a facility in Aiken County and to support research and development programs through South Carolina's internationally recognized university systems. Now, therefore,

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

That the members of the General Assembly of South Carolina, hereby memorialize Congress, the President of the United States and the United States Department of Energy to select the Savannah River Site in Aiken County, South Carolina, as the site for the construction and operation of the proposed production reactor where research and development activities conducted there will be of benefit to all Americans.

Be it further resolved that a copy of this resolution be forwarded to the President of the United States, the United States Senate and House of Representatives, the Secretary of the Department of Energy, and to each member of the South Carolina Congressional Delegation.

Senator SHEALY asked unanimous consent to take the Resolution up for immediate consideration.

Senator MITCHELL objected.

Referred to the Committee on Labor, Commerce and Industry.

S. 958 -- Senator Gilbert: A SENATE RESOLUTION HONORING THE MEN AND WOMEN OF THE UNITED STATES ARMED FORCES FROM THIS STATE WHO SUCCESSFULLY AND COURAGEOUSLY DEFENDED THIS GREAT COUNTRY DURING OPERATION DESERT STORM AND WELCOMING THEM HOME.

Whereas, the men and women of the Marine Corps, Navy, Army, and the Air Force Reserves, the South Carolina National Guard and the regular United States Armed Forces have conducted themselves with unyielding loyalty and dedication to the United States of America during Operation Desert Storm; and

Whereas, the men and women of the United States Armed Forces, as well as their families and friends, endured great hardship and sacrifice in an effort to thwart Iraq's naked aggression and tyranny; and

Whereas, the people of South Carolina rallied behind President George Bush in an effort to show their support for the United States troops in the Persian Gulf and sought a safe and swift return for the troops; and

Whereas, the United States Armed Forces and the other coalition forces presented the enemy with a strong unified body of troops whose professionalism and discipline crushed the will of the enemy troops who opposed them; and

Whereas, these soldiers fought with valor and a great spirit of determination and pride for their country; and

Whereas, many of the troops from South Carolina have returned and our citizens are proud of their performance and want to welcome them home; and

Whereas, these troops include relatives of members of the Henry Timrod Elementary School Family in Florence County, namely, the following: Glis Paul Cribb (brother of Charlea Cribb of the Henry Timrod Elementary School Family); Waymon Grace (stepfather of Shelton and Cassey McCray); Ronald Lee Graham (father of Jessica Hill); Michael Douglas Holland (brother of Jessica, Jennifer, and Joshua Holland); Jottama Stanley McCormick (brother of Stephanie McCormick); John Arthur Pendergrass (father of Brandon Pendergrass and John Pendergrass); Mario Franks; Wayne Rembert (brother of Kalima Rembert); David Royall (father of Amanda Royall); Bobby Eugene Wheeler (father of Stephanie Wheeler); Tarriano Darnel Williams; and George Bernard Wilson (father of Scarlette and Indira Wilson). Now, therefore,

Be it resolved by the Senate:

That the members of the Senate and the people of South Carolina are grateful to the men and women of the Marine Corps, Navy, Army and the Air Force Reserves, the South Carolina National Guard and the regular United States Armed Forces for successfully and courageously defending our nation and hereby bestow upon them our highest honor and respect for their essential role in Operation Desert Storm and welcome them home with praises and open arms.

Be it further resolved that a copy of this resolution be forwarded to Eston Marchant, Adjutant General of South Carolina, and each of the troops named above.

On immediate consideration, the Senate Resolution was adopted.

S. 959 -- Senators Giese, Lourie, Courson and Patterson: A SENATE RESOLUTION CONGRATULATING RICHLAND NORTHEAST HIGH SCHOOL OF RICHLAND SCHOOL DISTRICT TWO FOR WINNING A FIRST PLACE GOLD MEDAL AWARD AT THE NATIONAL HIGH SCHOOL MODEL UNITED NATIONS COMPETITION IN NEW YORK CITY DURING THE WEEK OF APRIL 7, 1991.

On immediate consideration, the Senate Resolution was adopted.

H. 3253 -- Reps. Rudnick, Waites, Cromer, Smith, Wilder, Kempe and Klapman: A BILL TO AMEND SECTION 7-7-990, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BARRIER-FREE POLLING PLACES FOR PHYSICALLY HANDICAPPED ELECTORS, SO AS TO PROVIDE THAT AN ELECTOR WHO IS PERMANENTLY HANDICAPPED IS NOT REQUIRED TO REREGISTER IN ORDER TO VOTE AT THE BARRIER-FREE POLLING PLACE.

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

H. 3292 -- Reps. J. Bailey, Haskins and Wilder: A BILL TO AMEND SECTION 7-15-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PERSONS QUALIFIED TO VOTE BY ABSENTEE BALLOT, SO AS TO ADD PERSONS SEVENTY-TWO YEARS OF AGE OR OLDER.

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

H. 3438 -- Rep. Burch: A BILL TO AMEND SECTION 20-7-420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FAMILY COURT JURISDICTION IN DOMESTIC MATTERS, SO AS TO PROVIDE THAT THE COURT SHALL DETERMINE IF A CHILD IS SELF-SUPPORTING FOR PURPOSES OF TERMINATING CHILD SUPPORT AND TO EXTEND CHILD SUPPORT UNTIL AGE NINETEEN IF THE CHILD IS IN HIGH SCHOOL AND MAKING SATISFACTORY PROGRESS AND TO REVISE PROVISIONS RELATING TO EXTENDING CHILD SUPPORT BEYOND AGE EIGHTEEN WHEN THE CHILD IS MENTALLY OR PHYSICALLY DISABLED.

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

H. 3466 -- Rep. Altman: A BILL TO AMEND SECTION 30-5-35, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DERIVATION CLAUSES OF DEEDS AND MORTGAGES, SO AS TO PROVIDE THAT A DERIVATION CLAUSE ALSO IS NOT REQUIRED ON A DEED OR MORTGAGE OF PROPERTY DEVOTED TO A HIGHWAY PURPOSE AND TO MAKE GRAMMATICAL CHANGES.

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

H. 3807 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF ARCHITECTURAL EXAMINERS, RELATING TO THE PRACTICE OF ARCHITECTURE, DESIGNATED AS REGULATION DOCUMENT NUMBER 1369, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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

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

An invitation from PRT to attend a morning reception in the State House - Lower Lobby on Thursday, May 9, 1991, from 9:30 - 11:00 A.M.

The invitation was accepted.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

The following Bill was severally read the third time, passed and ordered sent to the House of Representatives:

S. 942 -- Senator Russell: A BILL TO AMEND ACT 345 OF 1965, AS AMENDED, RELATING TO THE ESTABLISHMENT OF THE CIVIL SERVICE SYSTEM FOR THE CITY OF SPARTANBURG, SO AS TO PROVIDE THAT APPLICANTS FOR ENTRY LEVEL POSITIONS ARE EXEMPT FROM THE RESIDENCY REQUIREMENT AND THE REQUIREMENT TO BE AN ELECTOR OF SPARTANBURG COUNTY, TO PROVIDE THAT APPLICANTS MUST BE NOT LESS THAN EIGHTEEN YEARS OF AGE RATHER THAN NOT LESS THAN TWENTY-ONE YEARS OF AGE, AND TO DELETE THE REQUIREMENT THAT AN APPLICANT MAY NOT BE MORE THAN THIRTY-FIVE YEARS OF AGE.

(By prior motion of Senator RUSSELL)

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

S. 949 -- Senators J. Verne Smith and Stilwell: A BILL TO AMEND SECTION 7-7-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS AND POLLING PLACES IN GREENVILLE COUNTY, SO AS TO REDEFINE THE BOUNDARIES OF PRECINCT 56, PLEASANT GROVE, AND PROVIDE FOR A NEW POLLING PLACE FOR THAT PRECINCT, AND TO ESTABLISH A NEW PRECINCT, NAMELY, 56A, RIVERSIDE, AND PROVIDE FOR ITS POLLING PLACE.

On motion of Senator STILWELL, S. 949 was ordered to receive a third reading on Thursday, May 2, 1991.

H. 3628 -- Rep. Beasley: A BILL TO AMEND SECTIONS 56-1-1710, 56-5-165, 56-5-1555, 56-5-3720, 56-5-3740, AND 56-19-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION AND OPERATION OF MOPEDS, SO AS TO PROVIDE FOR "MOPED" TO INCLUDE CYCLES WITHOUT PEDALS, INCREASE THE MAXIMUM MOTOR CAPACITY FROM ONE AND ONE-HALF TO TWO BRAKE HORSEPOWER, AND INCREASE THE MAXIMUM SPEED CAPABILITY FROM TWENTY-FIVE TO THIRTY MILES AN HOUR AND TO PROVIDE PENALTIES; TO AMEND SECTION 56-5-50, RELATING TO THE APPLICATION OF THE CODE PROVISIONS REGULATING TRAFFIC ON HIGHWAYS TO THE OPERATION OF MOPEDS, SO AS TO PROVIDE THAT THE PROVISIONS OF CHAPTER 5 OF TITLE 56 GOVERN THE OPERATION OF MOPEDS; AND TO AMEND SECTION 56-5-3750, RELATING TO LABELING REQUIREMENTS FOR MOPEDS, SO AS TO PROVIDE FOR THE ATTACHMENT OF A METAL TAG TO THE VEHICLE IDENTIFYING IT AS A MOPED AND PROVIDE PENALTIES FOR VIOLATIONS.

S. 571 -- Senator Drummond: A BILL TO AMEND SECTION 12-27-1270, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ECONOMIC DEVELOPMENT ACCOUNT, SO AS TO PROVIDE FOR THE ACCOUNT TO BE REPLENISHED BASED ON FUNDS OBLIGATED OR COMMITTED BY THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT IN THE PREVIOUS YEAR, DELETE THE LIMITATION ON THE AMOUNT OF THE ACCOUNT, AND DELETE OBSOLETE LANGUAGE; TO AMEND SECTION 13-3-20, RELATING TO THE OBJECTIVES OF THE STATE DEVELOPMENT BOARD, SO AS TO DELETE THE REFERENCE TO A STATEWIDE PLANNING PROGRAM; TO AMEND SECTION 13-3-90, RELATING TO THE DUTIES AND POWERS OF THE STATE DEVELOPMENT BOARD, SO AS TO DELETE THE PROVISION FOR A MASTER PLAN FOR AGENCIES TO CONSIDER CERTAIN STATE NEEDS AND DELETE THE REFERENCE TO A STATE PLANNING PROGRAM; TO AMEND SECTION 41-45-20, RELATING TO MEETINGS AND DUTIES OF THE COUNCIL, SO AS TO PROVIDE FOR AND DEFINE A STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT AND REVISE DUTIES PERTAINING TO THE PLAN AND COORDINATION OF ACTIVITIES; TO AMEND SECTION 41-45-30, RELATING TO REPORTS BY THE COUNCIL, SO AS TO INCLUDE REPORTS TO THE CHAIRMEN OF THE SENATE FINANCE AND HOUSE WAYS AND MEANS COMMITTEES AND REQUIRE REPORTS ON THE ACCOUNT; TO AMEND SECTION 41-45-40, RELATING TO COUNCIL RECOMMENDATIONS, SO AS TO INCLUDE THE OBJECTIVES OF THE STRATEGIC PLAN, DELETE THE PROVISION FOR REFERRALS BY THE GENERAL ASSEMBLY AND STATE AGENCIES, AND REVISE THE RECOMMENDATIONS CONCERNING AGENCY REQUESTS FOR ECONOMIC DEVELOPMENT APPROPRIATIONS; TO AMEND SECTION 41-45-50, RELATING TO COUNCIL FUNDS, COMMITTEES, AND DATA, SO AS TO REVISE THE DUTIES OF THE COMMITTEES; AND TO REAUTHORIZE THE EXISTENCE OF THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT FOR SIX YEARS.

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

H. 3269 -- Reps. Kirsh, McTeer and D. Elliott: A BILL TO AMEND SECTIONS 12-36-120, 12-36-910, 12-36-920, 12-36-930, 12-36-2120, 12-36-2560, AND 12-36-2650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO MAKE TECHNICAL CORRECTIONS; AND TO AMEND THE 1976 CODE BY ADDING SECTIONS 12-36-560, 12-36-570, 12-36-1730, 12-36-1740, 12-36-2660, AND 12-36-2670, SO AS TO PROVIDE CRIMINAL AND CIVIL PENALTIES FOR VIOLATIONS RELATING TO RETAIL LICENSES AND THE CASUAL EXCISE TAX, TO PROVIDE FOR ENFORCEMENT, AND AUTHORIZE THE MEMBERS OF THE TAX COMMISSION OR THEIR DESIGNEES TO ADMINISTER OATHS OR TAKE ACKNOWLEDGMENTS.

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

H. 3277 -- Reps. Kirsh, McTeer and D. Elliott: A BILL TO AMEND SECTION 12-36-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "RETAIL SALE" FOR PURPOSES OF THE SOUTH CAROLINA SALES AND USE TAX ACT, SO AS TO PROVIDE THAT THE DEFINITION INCLUDES THE SALE OF FOOD PRODUCTS, OTHER THAN SOFT DRINKS IN CLOSED CONTAINERS, TO VENDERS WHO SELL THE PRODUCTS THROUGH VENDING MACHINES, AND TO PROVIDE THAT THESE VENDERS ARE DEEMED TO BE THE USERS OR CONSUMERS OF THE PRODUCTS; AND TO AMEND SECTION 12-36-2120, RELATING TO SALES TAX EXEMPTIONS, SO AS TO PROVIDE THAT PORTIONS OF THE STANDARD INDUSTRIAL CLASSIFICATION MANUAL MUST BE USED AS AUTHORITY IN DETERMINING QUALIFICATIONS FOR THE EXEMPTION OF MACHINERY USED IN MANUFACTURING.

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

H. 3270 -- Reps. Kirsh, McTeer and D. Elliott: A BILL TO AMEND SECTION 12-7-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO DELETE LANGUAGE MAKING THE FISCAL YEAR A CALENDAR YEAR UNLESS ANOTHER YEAR IS ESTABLISHED; TO AMEND SECTION 12-9-390, AS AMENDED, RELATING TO INCOME TAX WITHHOLDING, SO AS TO DELETE THE PENALTY PROVISION; TO AMEND THE 1976 CODE BY ADDING SECTION 12-19-165 SO AS TO PROVIDE FOR THE PRORATION OF THE CORPORATE LICENSE FEE FOR RETURNS FOR FEWER THAN TWELVE MONTHS; TO AMEND SECTION 12-54-40, RELATING TO TAX CRIMES AND PENALTIES, SO AS TO PLACE THE PENALTY FOR FAILURE TO WITHHOLD PROPERLY IN THE PROVISION OF THE 1976 CODE DEALING WITH PENALTIES; TO AMEND SECTION 12-54-140, RELATING TO THE REQUIREMENT THAT CORPORATE TAXPAYERS NOTIFY THE TAX COMMISSION OF CHANGES IN INCOME AS REPORTED TO THE INTERNAL REVENUE SERVICE, SO AS TO EXTEND THE REQUIREMENT TO ALL TAXPAYERS; TO AMEND SECTION 33-14-220, RELATING TO THE REQUIREMENTS FOR REINSTATEMENT OF CORPORATE CHARTERS, SO AS TO PROVIDE THAT THE TAX PENALTIES AND INTEREST MUST BE PAID BEFORE REINSTATEMENT; AND TO AMEND THE 1976 CODE BY ADDING SECTION 33-15-330 SO AS TO PROVIDE A PROCEDURE FOR THE REINSTATEMENT OF CERTIFICATES OF AUTHORITY FOR FOREIGN CORPORATIONS.

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

S. 16 -- Senator Passailaigue: A BILL TO ADOPT THE SOUTH CAROLINA COLLEGIATE ATHLETIC ASSOCIATION PROCEDURES ACT.

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

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE GENERAL APPROPRIATION BILL.

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

Senator PASSAILAIGUE proposed the following Amendment No. 107 (5679.HC), which was tabled:

Amend the bill, as and if amended, Part II, Section 3, beginning on Page 751, by:

(X) STRIKING AND INSERTING THE FOLLOWING:

TO AMEND SECTION 12-7-435, AS AMENDED, OF THE 1976 CODE, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO CONSOLIDATE INTO ONE ITEM THE DEDUCTIONS ALLOWED FOR VARIOUS TYPES OF RETIREMENT INCOME, TO DEFINE RETIREMENT INCOME, TO PROVIDE THAT, BEGINNING IN TAXABLE YEAR 1991, A TAXPAYER MAY, BEGINNING IN THE FIRST TAXABLE YEAR HE RECEIVES RETIREMENT INCOME, DEDUCT UP TO THREE THOUSAND DOLLARS OF RETIREMENT INCOME OR ELECT TO DEFER HIS DEDUCTION UNTIL AGE SIXTY-FIVE, AT WHICH TIME THE TAXPAYER MAY DEDUCT UP TO TEN THOUSAND DOLLARS, TO PROVIDE TRANSITION PROVISIONS, TO PROVIDE THAT THE AGE AT WHICH TAXPAYERS MAY DEDUCT THE LARGER AMOUNT OF RETIREMENT INCOME MUST RISE IN TANDEM WITH ELIGIBILITY FOR SOCIAL SECURITY OLD AGE BENEFITS AND TO PROVIDE THAT THE SOUTH CAROLINA TAX COMMISSION SHALL PRESCRIBE THE METHOD OF MAKING THE ELECTION; AND TO REPEAL SECTION 12-7-436 RELATING TO AN OBSOLETE LIMITATION ON THE RETIREMENT INCOME DEDUCTION.

A. Section 12-7-435 of the 1976 Code, as last amended by Act 189 of 1989, is further amended by adding an appropriately lettered item to read:

"( )(1) Beginning with the taxable year in which a taxpayer first receives retirement income, the taxpayer may:

(A) deduct his retirement income in an amount not to exceed three thousand dollars annually; or

(B) elect irrevocably to defer claiming a retirement income deduction until the taxable year the taxpayer attains the age of sixty-five years, at which time the taxpayer may deduct his retirement income in an amount not to exceed ten thousand dollars annually.

(2) A taxpayer who does not claim a retirement income deduction before the taxable year in which he attains the age of sixty-five years is considered to have made the election allowed pursuant to subitem (1)(B) of this item.

(3) A taxpayer who has attained the age of sixty-five years before 1992 is considered to have made the election allowed pursuant to subitem (1)(B) of this item.

(4) A taxpayer who in 1991 has not yet attained the age of sixty-five years and who receives retirement income in 1991 may:

(A) deduct his retirement income in an amount not to exceed three thousand dollars annually; or

(B) elect irrevocably to defer claiming a retirement income deduction until the taxable year the taxpayer attains the age of sixty-five years, at which time the taxpayer may deduct his retirement income in an amount not to exceed ten thousand dollars annually.

(5) The deduction allowed by this item extends to the taxpayer's surviving spouse and, to the extent the surviving spouse receives retirement income attributable to the deceased spouse, applies in the same manner that the deduction applied to the deceased spouse.

(6) For purposes of this item, `retirement income' means the total of all otherwise taxable income not subject to a penalty for premature distribution received by the taxpayer or the taxpayer's surviving spouse in a taxable year from qualified retirement plans which include those plans defined in Internal Revenue Code Sections 401, 403, 408, and 457, and all public employee retirement plans of the federal, state, and local governments, including military retirement for persons with twenty or more years active military duty.

(7) The commission shall prescribe the method of making the election provided in this item and may require the taxpayer to provide information necessary for proper administration of this election.

(8) (A) For a taxpayer born in the years 1943 through 1959, where subitems (1), (2), and (4) of this item refer to age sixty-five, the applicable age is sixty-six.

(B) For a taxpayer born after 1959, where subitem (1), (2), and (4) of this item refer to age sixty-five, the applicable age is sixty-seven." B. Section 12-7-435(a), (b), and (c) of the 1976 Code are amended to read:

"(a) Reserved

(b) Reserved

(c) Reserved"

C. Section 12-7-435(d) and (e) of the 1976 Code, as last amended by Section 39, Part II, Act 189 of 1989, are further amended to read:

"(d) Reserved

(e) Reserved"

D. Section 12-7-436 of the 1976 Code is repealed.

E. Subsections A, B, and C of this section are effective for taxable years beginning after 1990, and subsection D is effective upon approval by the Governor./

Amend sections, totals and title to conform.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment and Senator WADDELL argued contra.

Senator WADDELL moved to lay the amendment on the table.

The amendment was laid on the table.

Senators PASSAILAIGUE and McCONNELL desire to be recorded as voting against the motion to table the amendment.

Senators PASSAILAIGUE and McCONNELL proposed the following Amendment No. 131 (RES3650.114), which was tabled:

Amend the bill, as and if amended, Part II, Section 8, Page 0755 by:

(X) STRIKING THE SECTION IN ITS ENTIRETY.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment and Senator WADDELL argued contra.

Senator WADDELL moved to lay the amendment on the table.

The amendment was laid on the table.

Senators PASSAILAIGUE and McCONNELL desire to be recorded as voting against the motion to table the amendment.

Senator PEELER proposed the following Amendment No. 86A (9435.JM), which was adopted:

Amend the bill, as and if amended, Part II, Section 18, Page 0759, Line 07, right column by:

(X) STRIKING AND INSERTING THE FOLLOWING:

/D. Item (1) of subsection (E) of Section 44-2-130 of the 1976 Code is repealed.

E. This section takes effect July 1, 1991./

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senator WADDELL proposed the following Amendment No. 68 (5682.HC), which was adopted:

Amend the bill, as and if amended, Part II, Section 22, Page 761, right column by inserting immediately after line 31:

/J. (1) Section 44-6-146(A) of the 1976 Code, as added by Act 189 of 1989, is amended to read:

"(A) Every fiscal year the State Treasurer shall withhold from the portion of the Local Government Fund allotted to the counties a sum equal to fifty cents per capita based on the population of the several counties as shown by the latest official census of the United States. The money withheld by the State Treasurer must be placed to the credit of the commission and used to provide Title XIX (Medicaid) services."/

Amend title, sections and total to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senator MITCHELL proposed the following Amendment No. 64 (RES3650.032), which was adopted:

Amend the bill, as and if amended, Part II, Section 23, Page 762, Line 9, left column by:

(X) INSERTING after the word /members/ and before the word /of/ the following:

/, including a majority of the senators,/

Amend sections, totals and title to conform.

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

Senator McCONNELL moved that the amendment be adopted.

The amendment was adopted.

Senator McCONNELL proposed the following Amendment No. 88 (RES3650.047), which was adopted:

Amend the bill, as and if amended, Part II, Section 40, Page 767, by:

(X) DELETING THE SECTION IN ITS ENTIRETY.

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senator ROSE proposed the following Amendment No. 47B (RES3650.062), which was adopted:

Amend the bill, as and if amended, Part II, Page 772, by:

(X) ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-101-390 SO AS TO PROVIDE THAT INSTITUTIONS OF HIGHER LEARNING MUST ESTABLISH ANNUALLY WRITTEN LIMITATIONS ON THE SPENDING OF PUBLIC FUNDS.

A. The 1976 Code is amended by adding:

"Section 59-101-390. The Board of Trustees of each state funded institution of higher learning in South Carolina must establish annually written limitations on the spending of public funds by the President and every other employee of the institution. These limitations shall take the form of: (1) limits applicable to various categories of expenditures and (2) limits applicable to various categories of institution employees. These limitations must be furnished annually to the General Assembly. Public funds within the meaning of this provision include any money obtained with the use of state owned facilities, equipment, or supplies, including derived wholly or in part from athletic or other student activities or from the operation of state owned canteens and bookstores, and any interest collected on said money."/

Amend sections, totals and title to conform.

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

Senator ROSE moved that the amendment be adopted.

The amendment was adopted.

Senators PASSAILAIGUE and McCONNELL proposed the following Amendment No. 50 (RES3650.102), which was adopted:

Amend the bill, as and if amended, Part II, Page 0772:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 34 OF PART II OF ACT 189 OF 1989 RELATING TO ABATEMENT AND REFUND SO AS TO PROVIDE THAT SECTION 12-47-445 DOES NOT APPLY TO TAX PAYMENTS MADE UNDER PROTEST AND TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-47-447 SO AS TO PROVIDE THAT WHEN A TAXPAYER PREVAILS IN A LAWSUIT FOR A TAX REFUND OR ABATEMENT, THE TAX COMMISSION SHALL ISSUE REFUNDS TO ALL SIMILARLY SITUATED TAXPAYERS WHO MAKE PROPER APPLICATION AND TO PROVIDE FOR REASONABLE ATTORNEY'S FEES.

A. Section 12-47-445 of the 1976 Code, as added by Section 34, Part II, Act 189 of 1989, is amended by adding at the end of the section:

"This section does not apply to a claim for refund for a taxpayer who makes his claim by stating on his payment or on his timely filed return that he is paying under protest because he believes some or all of the tax is unconstitutional or unlawful. His protest constitutes a claim for refund for the payment made under protest under Section 12-47-440."

B. Title 12, Chapter 47 of the 1976 Code is amended by adding:

"Section 12-47-447. When a taxpayer prevails on the merits in a lawsuit seeking a refund or abatement of a license fee or tax based upon an allegation that the tax or fee has been imposed wrongfully as a matter of law, the commission must issue a refund to all similarly situated taxpayers who properly have applied for a refund pursuant to the requirements of this chapter. A taxpayer is deemed to have prevailed on the merits in a lawsuit only when a tax or license fee is refunded or abated as a result of a finding of law by a court of competent jurisdiction, and after the exhaustion of, or expiration of the time for, making all relevant appeals."/

Amend sections, totals and title to conform.

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

Senator PASSAILAIGUE moved that the amendment be adopted.

The amendment was adopted.

Senator PASSAILAIGUE proposed the following Amendment No. 61 (RES3650.103), which was adopted:

Amend the bill, as and if amended, Part II, Section , Page 0772:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 25 IN CHAPTER 21 OF TITLE 12, RELATING TO STAMP AND BUSINESS LICENSE TAXES, SO AS TO ENACT "THE MARIJUANA AND CONTROLLED SUBSTANCE TAX ACT OF 1991" AND TO PROVIDE A PENALTY.

Chapter 21 of the 1976 Code is amended by adding:

Section 12-21-3710. This article may be cited as The Marijuana and Controlled Substance Tax Act of 1991.

Section 12-21-3720. As used in this article:

(1) `Marijuana' means any marijuana, whether real or counterfeit, as defined in Section 44-53-110, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of the laws of this State.

(2) `Controlled substance' means a drug or substance, whether real or counterfeit, as defined in Section 44-53-110 that is held, possessed, transported, transferred, sold, or offered to be sold in violation of the laws of this State. `Controlled substance' does not include marijuana.

(3) `Dealer' means a person who in violation of the laws of this State manufactures, produces, ships, transports, or imports into South Carolina or in any manner acquires or possesses more than forty-two and one-half grams of marijuana, or seven or more grams of a controlled substance, or ten or more dosage units of a controlled substance which is not sold by weight. A quantity of marijuana or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

(4) `Commission' means the South Carolina Tax Commission.

Section 12-21-3730. The commission shall administer this article. Payments required by this article must be made to the commission on the form provided by the commission. Dealers are not required to give their name, address, social security number, or other identifying information on the form. The commission shall collect all taxes under this article.

Section 12-21-3740. The commission may promulgate regulations necessary to enforce this article. The commission shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.

Section 12-21-3750. No dealer may possess any marijuana or controlled substance upon which a tax is imposed unless the tax has been paid on the marijuana or other controlled substance as evidenced by a stamp or other official indicia.

Section 12-21-3760. Nothing in this article may provide immunity for a dealer from criminal prosecution pursuant to the laws of this State.

Section 12-21-3770. Nothing in this article requires persons lawfully in possession of marijuana or a controlled substance to pay the tax required under this article.

Section 12-21-3780. For the purpose of calculating the tax under Section 12-21-3790, a quantity of marijuana or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the dealer's possession. A quantity of pure controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.

Section 12-21-3790. A tax is imposed on marijuana and controlled substances as defined in Section 12-21-3720 at the following rate:

(1) on each gram of marijuana, or each portion of a gram, three dollars fifty cents; and

(2) on each gram of controlled substance, or portion of a gram, two hundred dollars; or

(3) on each fifty dosage units of a controlled substance that is not sold by weight, or portion thereof, two thousand dollars.

Section 12-21-3800. (A) A dealer violating this article is subject to a penalty of one hundred percent of the tax in addition to the tax imposed by Section 32-21-3790. The penalty must be collected as part of the tax.

(B) In addition to the tax penalty imposed, a dealer distributing or possessing marijuana or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a misdemeanor and, upon conviction, must be imprisoned for not more than five years or fined not more than ten thousand dollars, or both.

Section 12-21-3810. Official stamps, labels, or other indicia to be affixed to all marijuana or controlled substances must be purchased from the commission. The purchaser shall pay one hundred percent of face value for each stamp, label, or other indicia at the time of the purchase.

Section 12-21-3820. (A) When a dealer purchases, acquires, transports, or imports into this State marijuana or controlled substances on which a tax is imposed by Section 12-21-3790, and if the indicia evidencing the payment of the tax have not already been affixed, the dealer shall have them permanently affixed on the marijuana or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.

(B) Taxes imposed upon marijuana or controlled substances by this article are due and payable immediately upon acquisition or possession in this State by a dealer.

Section 12-21-3830. An assessment for a dealer not possessing valid stamps or other official indicia showing that the tax has been paid is considered a jeopardy assessment or collection, as provided in Article 3 of Chapter 53.

Section 12-21-3840. (A) Neither the commission nor a public employee may reveal facts contained in a report or return required by this article or any information obtained from a dealer, nor may any information contained in such a report or return or obtained from a dealer be used against the dealer in a criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this article from the dealer making the return.

(B) A person violating this section is guilty of a misdemeanor and, upon conviction, must be imprisoned for not more than six months or fined not more than five thousand dollars, or both.

(C) This section does not prohibit the commission from publishing statistics that do not disclose the identity of dealers or the contents of particular returns or reports./

Amend sections, totals and title to conform.

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

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senators THOMAS and PASSAILAIGUE proposed the following Amendment No. 65 (RES3650.105), which was withdrawn:

Amend the bill, as and if amended, Part II, Page 0772:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 12-27-400, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO "C" CONSTRUCTION FUNDS, SO AS TO CHANGE THE FORMULA FOR DETERMINING THE APPORTIONMENT OF FUNDS TO THE COUNTIES BY ELIMINATING CONSIDERATION OF THE LAND AREA OF A COUNTY.

A. The first paragraph of Section 12-27-400 of the 1976 Code is amended to read:

"The monies collected by the commission pursuant to the provisions of Section 12-27-240 must be deposited with the State Treasurer and expended on the State Highway Secondary System for construction, improvements, and maintenance and, together with any other funds made available for the purpose, must be apportioned among the counties of the State in the following manner: one-third in the ratio in which the land area of the county bears to the total land area of the State; one-third in the ratio which the population of the county bears to the total population of the State as shown by the latest official decennial census; and one-third in the ratio which the mileage of all rural public roads in the county bears to the total rural road mileage in the State as shown by the latest official records of the Department of Highways and Public Transportation. However, a county may not receive less than eighty percent of the amount of the tax collected in that county."

Amend sections, totals and title to conform.

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

Senator MACAULAY moved to lay the amendment on the table.

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senators MACAULAY and WILLIAMS argued contra to the adoption of the amendment.

Senator J. VERNE SMITH argued contra to the adoption of the amendment.

Senator WADDELL spoke on the amendment.

On motion of Senator THOMAS, with unanimous consent, the amendment was withdrawn.

Senator PASSAILAIGUE proposed the following Amendment No. 66A (RES3650.037), which was tabled:

Amend the bill, as and if amended, Part II, Page 772 by:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STRATEGIC HIGHWAY PLAN FOR IMPROVING MOBILITY AND SAFETY PROGRAM SO AS TO PROVIDE FOR THE CREATION OF A STATE HIGHWAY BOND FUND ACCOUNT AND TO PROVIDE FOR THE REAUTHORIZATION OF THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT.

A. Article 3, Chapter 11, Title 57 of the 1976 Code is amended to read:

"Section 57-11-210. The terms defined herein shall have the meanings hereinafter set forth:

(1) `Fiscal year' means the fiscal year upon which the affairs of the State of South Carolina are then being conducted. As of the date of this enactment it is that which begins on July first and ends on June thirtieth of the succeeding calendar year.

(2) `Fuel oil tax' shall mean the tax levied pursuant to Chapter 29, Title 12.

(3) `Gasoline tax' shall mean not less than 7.09 cents of the 8.09 cents per gallon tax imposed upon gasoline, components thereof or substitutes therefor, pursuant to the provisions of Chapter 27 of Title 12, except Section 12-27-240. In the event that by legislation enacted subsequent to July 1, 1977, the tax imposed by Section 12-27-230 shall be increased to more than 8.09 cents per gallon, then in such event all of such increase shall be embraced within the definition `gasoline tax' as used in this section unless in the initial enactment subsequent to July 1, 1977, the General Assembly shall prescribe some other use for all or some portion of such increase in such tax.

(4) `Commission' shall mean that agency of government now composed in accordance with the provisions of Articles 3 and 5 of Chapter 3, Title 57, and any other commission or agency of government hereafter exercising the powers granted to the commission pursuant to the provisions of Chapter 3, Title 57.

(5) `Highway construction purposes' shall mean the construction of roads now or hereafter made a part of the state highway system, or the reconstruction and improvement of highways now or hereafter made a part of the state highway system.

(6) `Motor vehicle license tax' shall mean the annual tax imposed upon the owner of every motor and other vehicle pursuant to the provisions of Articles 5, 7, 21 and 25, Chapter 3, Title 56.

(7) `Road tax' shall mean the road tax imposed on motor carriers pursuant to Chapter 31, Title 12.

(8) `Sources of revenue' shall mean the gasoline tax, the fuel oil tax, the road tax, and the motor vehicle license tax.

(9) `State board' shall mean the State Budget and Control Board of South Carolina.

(10) `State highway bonds' shall mean all general obligation bonds of the State of South Carolina designated as State highway bonds, which are now outstanding and which may hereafter be issued pursuant to the authorizations of this article.

Section 57-11-220. Whenever it becomes necessary that monies be raised for highway construction purposes, including monies to be used to refund any state highway bonds then outstanding, the commission may make a request to the state board for the issuance of State highway bonds pursuant to this article. Such request may be in the form of a resolution adopted at any regular or special meeting of the commission. Such request shall set forth (on the face thereof or by schedules attached thereto):

(1) the amount then required for highway construction;

(2) a tentative time schedule setting forth the period of time during which the sum requested will be expended;

(3) a debt service table showing the annual principal and interest requirements for all state highway bonds then outstanding;

(4) the amount of revenues derived from each of the sources of revenue during the preceding fiscal year; and

(5) the fund balance of the state highway bond fund and a schedule showing all encumbrances of the fund and a schedule of payments to be made from the fund for all debts then outstanding.

Section 57-11-230. Following the receipt of any request pursuant to Section 57-11-220, the state board shall review the same and to the extent that it shall approve such request, it shall be empowered, by resolution duly adopted, to effect the issuance of state highway bonds, or pending the issuance thereof, effect the issuance of bond anticipation notes pursuant to Sections 11-17-10 to 11-17-110, as amended.

Section 57-11-240. The outstanding aggregate principal indebtedness on account of state highway bonds shall not exceed the limits established in Article X, Section 13 of the South Carolina Constitution. The limitation herein imposed shall not be deemed to be an obligation of the contract made between the State and the holders of bonds issued pursuant to this article, and the limitation herein imposed may be enlarged or reduced from time to time by acts amendatory hereof. Within such limitations state highway bonds may be issued from time to time under the conditions prescribed by this article.

Section 57-11-250. For the payment of the principal of and interest on all state highway bonds (whether now outstanding or hereafter issued), there shall be pledged the full faith, credit and taxing power of the State of South Carolina and in addition thereto all of the monies derived from taxes levied in Sections 12-27-1210 through 12-27-1240 of the 1976 Code which may be forthwith used by the State Treasurer, without further action of the commission, for the payment of the principal and interest of state highway bonds, as the same respectively mature.

Section 57-11-270. The pledge of monies set aside in the state highway bond fund shall not preclude the General Assembly from revising the quantum of any tax credited to the state highway bond fund except that, so long as any state highway bonds shall be outstanding, the gasoline tax shall be not less than the greater of 5.67 cents per gallon, or the larger amount to which it shall be raised by legislation enacted subsequent to January 1, 1973, the fuel oil tax shall be not less than eight cents per gallon, the road tax not less than eight cents per gallon, and the schedule of motor vehicle license tax shall not be revised in such fashion as to reduce the aggregate to be received therefrom.

Section 57-11-280. In order to effect the issuance of bonds pursuant to this article, the state board may adopt a resolution providing for the issuance of state highway bonds and may transmit a certified copy thereof to the Governor and to the State Treasurer, with the request that they issue and deliver state highway bonds in accordance with the terms and conditions of such resolution. Such resolution shall set forth the following:

(1) the amount, denomination and numbering of state highway bonds to be issued;

(2) the date as of which the same shall be issued;

(3) the maturity schedule for the retirement of such state highway bonds;

(4) the redemption provisions, if any, applicable to such bonds;

(5) the maximum rate or rates of interest the bonds shall bear which shall not be in excess of that permitted by Act 423 of 1969 as now constituted or as hereafter amended;

(6) the purposes for which the bonds are to be issued;

(7) the occasion on which bids shall be received for the sale of such bonds;

(8) the form of advertisement of sale;

(9) the form of the bonds of the particular issue; and

(10) such other matters as may be deemed necessary in order to effect the sale, issuance and delivery thereof.

Such resolution shall further set forth a finding on the part of the state board that the revenues credited to the state highway bond fund for the preceding fiscal year equaled or exceeded the maximum annual debt service requirements for all state highway bonds then outstanding and all state highway bonds thereafter to be outstanding, and that the estimate made by the commission and approved by the state board indicates that collections from the sources of revenue in the then current and in applicable future fiscal years will not be less than one hundred fifty percent of maximum annual interest and principal requirements of all state highway bonds then outstanding and all state highway bonds thereafter to be outstanding.

Section 57-11-290. If following a presentation of a certified copy of the resolution of the state board it shall appear to the satisfaction of the Governor and the State Treasurer that:

(a) the amount of revenues derived from the sources of revenue, during the preceding fiscal year, did in fact exceed one hundred fifty percent of the maximum annual principal and interest requirements of all state highway bonds then outstanding and all state highway bonds thereafter to be outstanding; and

(b) that the estimated collections from the sources of revenue in the then current and in applicable future fiscal years, will be not less than one hundred fifty percent of the maximum annual debt service requirements of all state highway bonds then outstanding and all state highway bonds thereafter to be outstanding, then the Governor and State Treasurer shall be empowered to issue bonds in accordance with the request of the resolution of the state board.

Section 57-11-300. State highway bonds shall be issued in such form and with such provisions as to time, place, or places and medium of payment as may be determined by the state board, subject to the provisions of this article.

Section 57-11-310. State highway bonds shall each be in the denomination of one thousand dollars or some multiple thereof.

Section 57-11-320. State highway bonds issued pursuant to this article may be in the form of negotiable coupon bonds, payable to bearer, with the privilege to the holder of having them registered in his name on the books of the State Treasurer as to principal only, or as to both principal and interest, and such principal, or both principal and interest, as the case may be, thus made payable to the registered holder, subject to such conditions as the state board may prescribe. State highway bonds so registered as to principal in the name of the holder may thereafter be registered as payable to bearer and made payable accordingly.

State highway bonds may also be issued as fully registered bonds with both principal and interest thereof made payable only to the registered holder. Such fully registered bonds shall be subject to transfer under such conditions as the state board shall prescribe. Such fully registered bonds may, if the proceedings authorizing their issuance so provide, be convertible into negotiable coupon bonds with the attributes set forth in the first paragraph of this section.

Section 57-11-330. State highway bonds shall bear interest, payable on such occasions as shall be prescribed by the state board, at a rate or rates not exceeding the maximum prescribed by Act No. 423 of 1969, as such act is now constituted or as such act may hereafter be constituted following amendment or revision thereof. Each issue of state highway bonds shall mature in annual series or installments, the first of which annual series or installments shall mature not more than two years after the date of the bonds and the last of which shall mature not more than thirty years after such date. Such installments or series may be equal or unequal in amount. State highway bonds may, in the discretion of the state board, be made subject to redemption at par and accrued interest, plus such redemption premium as it shall approve and on such occasions as it may prescribe. State highway bonds shall not be redeemable before maturity unless they contain a statement to that effect.

Section 57-11-340. All state highway bonds issued under this article, and the interest thereon, shall be exempt from all state, county, municipal, school district, and other taxes or assessments, direct or indirect, general or special, imposed by the State of South Carolina, whether imposed for the purpose of general revenue or otherwise, except inheritance, estate or transfer taxes.

Section 57-11-350. All state highway bonds issued under this article must be signed by the Governor and the State Treasurer. The Governor and the State Treasurer may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed, or reproduced upon each of them and each must be attested by the Secretary of State. All coupons that may be attached to state highway bonds must be authenticated by facsimile signature of the State Treasurer who is in office on the date on which the state highway bonds bear or on the date on which the state highway bonds are converted into coupon bonds. State highway bonds so executed and authenticated are valid notwithstanding any changes in officers or seal occurring after the execution or authentication.

Section 57-11-360. State highway bonds may be privately placed as an investment of the State Retirement System, if the terms and conditions of such disposition shall be approved by resolution duly adopted by the state board.

Otherwise, state highway bonds shall be sold by the Governor and the State Treasurer upon sealed proposals, after publication of notice of such sale one or more times at least seven days before such sale, in a newspaper of general circulation in the State and also in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The bonds shall be awarded to the highest bidder at a price of not less than par and accrued interest to the date of delivery, but the right shall be reserved to reject all bids and to readvertise the bonds for sale and to waive technicalities in the bidding.

For the purpose of bringing about successful sales of such bonds, the state board may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. All expenses incident to the sales of such bonds shall be paid from the proceeds of the sale of such bonds.

Section 57-11-370. It shall be lawful for all executors, administrators, guardians, and other fiduciaries and all sinking fund commissions, including the State Budget and Control Board of South Carolina in its capacities as trustee of the funds of the South Carolina Retirement System and as manager and administrator of other state sinking funds, to invest any monies in their hands in state highway bonds.

Section 57-11-380. The proceeds of the sale of state highway bonds shall be received by the State Treasurer and deposited to the credit of the state highway bond fund account, except that the accrued interest, if any, shall be used to discharge in part the first interest to become due on such bonds, and the premium, if any, shall be used to discharge the payment of the first installment of principal to become due on such bonds, but the purchasers of such bonds shall in no way be liable for the proper application of the proceeds to the purposes for which they are intended.

Section 57-11-390. The proceeds derived from the sale of state highway bonds shall be applied only to the purposes for which the bonds are issued.

Section 57-11-400. Within the highway fund, there is established a separate and distinct state highway bond fund and a state highway bond fund debt service account. The revenue derived from the tax levied by Section 12-27-1210, 12-27-1220, 12-27-1230, and 12-27-1240 must be remitted to the State Treasurer to be credited to the state highway bond fund debt service account. The state highway bond fund and state highway bond fund debt service account must be separate and distinct from the state general fund and highway fund. The proceeds of all issuances of state highway bonds must be deposited to and must remain part of the state highway bond fund. All earnings on investments of any monies deposited to the credit of the state highway bond fund and the state highway bond fund debt service account must accrue to and be deposited in the respective account. Money from the state highway bond fund may be expended only for the purposes delineated in the resolution authorizing the issuance. The commission is authorized to make a request to the State Budget and Control Board for the authority to issue bonds pursuant to this chapter and these bonds must be retired over a fifteen-year period."

B. Whenever the term "Strategic Highway Plan for Improving Mobility and Safety Program or Strategic Highway Plan for Improving Mobility and Safety" appears in the Code of Laws of South Carolina, it shall mean `highway bond fund'. The Code Commissioner is directed to change all such references at such time and in such manner as may be timely and cost effective.

C. Sections 12-27-1260, 12-27-1270, 12-27-1280, 12-27-1290, and 12-27-1300 are repealed.

D. Upon the effective date of this act, the commission of the department must review all pending construction projects under the Strategic Highway Plan for Improving Safety and Mobility Program, including projects which have been let and projects which are under construction. From this review, the commission shall prepare a written report that details all such projects including the approximate location of the project and the estimated cost of completing such projects. The commission must issue this written report to the Education and Public Works Committee of the House of Representatives and the Transportation Committee of the Senate. All funds not approved by the commission for the continuation of construction projects shall be transferred to the highway bond fund as established in Section 57-11-400 and all funds approved by the commission for the continuation of construction projects shall be transferred to the state highway fund to be used for the completion of such projects.

E. In accordance with Section 1-20-60 of the 1976 Code the existence of the South Carolina Coordinating Council for Economic Development is reauthorized for six years./

Amend sections, totals and title to conform.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment and Senator WADDELL argued contra.

Senator WADDELL moved to lay the amendment on the table.

The amendment was laid on the table.

Senator PASSAILAIGUE desires to be recorded as voting against the motion to table the amendment.

On motion of Senator WADDELL, debate was interrupted by recess.

At 12:42 P.M., on motion of Senator WADDELL, the Senate receded from business until 2:00 P.M.

The Senate reassembled at 2:11 P.M. and was called to order by the PRESIDENT.

Senator DRUMMOND made the point that a quorum was not present. It was ascertained that a quorum was not present.

Senator DRUMMOND moved that a call of the Senate be made. The following Senators answered the call:

Bryan Courson Drummond
Fielding Giese Gilbert
Hayes Hinds Hinson
Holland Land Leatherman
Leventis Long Lourie
Macaulay Martin Martschink
Matthews McConnell McGill
Mitchell Moore Mullinax
O'Dell Passailaigue Patterson
Peeler Pope Reese
Rose Russell Saleeby
Setzler Shealy Smith, J.V.
Smith, N.W. Stilwell Thomas
Waddell Washington Williams
Wilson

The Senate resumed.

S. 957 -- Senators Shealy, Moore and Setzler: A CONCURRENT RESOLUTION MEMORIALIZING CONGRESS, THE PRESIDENT OF THE UNITED STATES AND THE UNITED STATES DEPARTMENT OF ENERGY TO SELECT THE SAVANNAH RIVER SITE IN AIKEN COUNTY, SOUTH CAROLINA, AS THE SITE FOR THE CONSTRUCTION AND OPERATION OF THE PROPOSED PRODUCTION REACTOR.

On motion of Senator SHEALY, with unanimous consent, the Concurrent Resolution was recalled from the Committee on Labor, Commerce and Industry.

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

The Senate resumed consideration of the Bill. The question being third reading of the Bill.

Senators LAND, SETZLER and WADDELL proposed the following Amendment No. 76 (EDU3650.043), which was adopted:

Amend the bill, as and if amended, Part II, Page 0772:

(X) BY ADDING AN APPROPRIATELY NUMBERED NEW SECTION.

TO AMEND THE 1976 CODE BY ADDING SECTION 59-21-1050, SO AS TO ESTABLISH THE PERCENTAGE OF THE TOTAL COST OF EMPLOYER CONTRIBUTIONS FOR PUBLIC SCHOOL EMPLOYEES TO BE PAID OUT OF GENERAL FUND REVENUES IN THE ANNUAL GENERAL APPROPRIATION ACT.

Chapter 21, Title 59 of the 1976 Code is amended by adding:

"Section 59-21-1050. For Fiscal Year 1992-93, the General Assembly must appropriate in general fund revenues a minimum of seventy-five percent of the total cost of employer contributions for public school employees. In Fiscal Year 1993-94 and for each fiscal year thereafter, the General Assembly must appropriate in general fund revenues a minimum of eighty percent of the total cost of employer contributions for public school employees."/

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

Senator LAND moved that the amendment be adopted.

The amendment was adopted.

The Finance Committee proposed the following Amendment No. 77A (RES3650.109), which was adopted:

Amend the bill, as and if amended, Part II, Page 0772:
(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD TO TRANSFER NOT MORE THAN TEN MILLION DOLLARS IN SURPLUS BALANCES FROM OTHER ACCOUNTS TO THE DEPARTMENT OF CORRECTIONS AND THE DEPARTMENT OF SOCIAL SERVICES THROUGH THE END OF FISCAL YEAR 1990-91.

A. Notwithstanding the provisions of Section 11-11-410 of the 1976 Code, the State Budget and Control Board may authorize the Comptroller General to transfer surplus balances in other accounts to the Department of Corrections and to the Department of Social Services through the end of fiscal year 1990-91, in excess of amounts appropriated to these agencies for fiscal year 1990-91. The total of these transfers may not exceed ten million dollars./

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senators WASHINGTON and ROSE proposed the following Amendment No. 83 (3385.AL), which was adopted:

Amend the bill, as and if amended, Part II, Permanent Provisions:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 8-11-40, AS AMENDED, OF THE 1976 CODE, RELATING TO SICK LEAVE FOR STATE OFFICERS AND EMPLOYEES, SO AS TO INCREASE THE NUMBER OF DAYS AN EMPLOYEE MAY USE TO CARE FOR ILL MEMBERS OF HIS FAMILY.

The third paragraph of Section 8-11-40 of the 1976 Code, as last amended by Act 524 of 1988, is further amended to read:

"Employees earning sick leave as provided in this section may use not more than eight days of sick leave annually to care for ill members of their immediate families. For purposes of this section, `immediate family' means a spouse, children, mother, father, a spouse's mother and father, legal guardian, a spouse's legal guardian, and grandchildren if the grandchild resides with the employee, and the employee is the primary caretaker of the grandchild."/

Amend sections, totals and title to conform.

Senator WASHINGTON explained the amendment.

Senator WASHINGTON moved that the amendment be adopted.

The amendment was adopted.

Senators LAND and WILSON proposed the following Amendment No. 89 (5684.HC), which was adopted:

Amend the bill, as and if amended, Part II, by adding a new section, appropriately numbered, to read:

TO AMEND TITLE 16, CHAPTER 3 OF THE 1976 CODE, BY ADDING ARTICLE 16 SO AS TO CREATE THE CRIME VICTIMS' OMBUDSMAN, PROVIDE FOR POWERS AND DUTIES.

A. Chapter 3, Title 16 of the 1976 Code is amended by adding:

Section 16-3-1610. As used in this article:

(1) `Appropriate authority' means a person who is the subject of a complaint to the crime victim's ombudsman or a person within the agency who is in a supervisory position with regard to one who is the subject of a complaint.

(2) `Elements of the criminal and juvenile justice system' means circuit solicitors and members of their staff; law enforcement officers; probation, parole, and correction officers; the judiciary; the Department of Youth Services; state officials involved in the criminal justice system; and any state, county, or municipal victim advocacy personnel.

(3) `Victim assistance program' means an entity which provides, is required by law to provide, or claims to provide services and assistance to victims on an ongoing basis.

Section 16-3-1620. The office of Crime Victim's Ombudsman for South Carolina is created. The ombudsman is appointed by the Director of the South Carolina State Office of Victims Assistance (SOVA) with the advice of the advisory board, and serves at the pleasure of the SOVA director. The ombudsman is directly accountable to the director of SOVA. SOVA shall develop the procedures necessary to implement the provisions of this article.

Section 16-3-1630. The ombudsman shall investigate complaints concerning possible violation of the rights of crime victims or witnesses provided in the Victim's and Witness's Bill of Rights, the delivery of victims' services by victims assistance programs, and other complaints of mistreatment by elements of the criminal and juvenile justice system or victims assistance programs. The ombudsman shall act as a liaison, when necessary, between agencies, either in the criminal justice system or in victim assistance programs, and victims and witnesses. The ombudsman must be available through the use of a toll-free telephone number and shall answer questions concerning the criminal justice system and victims' services put to the ombudsman by victims and witnesses in accordance with the ombudsman's possessing knowledge of the facts or law unless the information is otherwise restricted. The ombudsman shall establish a procedure for referral when services are requested by crime victims or considered by him to be necessary.

Information and files received by the ombudsman are confidential during the course of an investigation or while the files are active. Upon completion of the investigation or when the files are placed on inactive status, they retain their confidential status.

Section 16-3-1640. The ombudsman has the power necessary to carry out the duties set forth in Section 16-3-1630, including:

(1) to investigate any action of an element of the criminal justice system or a victim assistance program;

(2) to request and obtain access to information pertaining to a complaint. The ombudsman shall request and obtain access to police reports pertaining to juveniles and juvenile delinquency petitions. Any information received by the ombudsman retains its data classification while in the ombudsman's possession. Juvenile records obtained under this section may be released only in accordance with provisions of the Children's Code.

(3) to inform, in writing, the complainant, the investigated person or entity, and other appropriate authorities, including the Attorney General and the Chief Justice of the Supreme Court, of any action taken after completing an investigation. If the complaint involves the conduct of an element of the criminal justice system in relation to a criminal or civil proceeding, the ombudsman's findings must be forwarded to the court in which the proceeding occurred.

Section 16-3-1650. Neither the ombudsman nor any member of his staff may be compelled to testify in a court with respect to matters involving the exercise of official duties except as may be necessary to enforce the provisions of this section.

Section 16-3-1660. Upon finding that a complaint is valid after an investigation, the ombudsman shall recommend action to the appropriate authorities, which within a reasonable time period, shall inform the ombudsman about the action taken or the reason for not complying with the recommendation.

Section 16-3-1670. SOVA shall develop procedures for monitoring actions recommended in cases of noncompliance with the law. The agency shall provide technical assistance and training, if necessary, with the investigated agency to help assure future compliance. Refusal by the investigated agency to cooperate with the ombudsman shall result in a complaint by the ombudsman to the appropriate federal, state, or local level authority with program or fiscal accountability for the services provided by the investigated agency. The federal, state, or local authority shall forward a report of action taken to an oversight committee established by the General Assembly with representation from the Governor to review annually summary information on compliance with the law. SOVA shall submit an annual report summarizing noncompliance issues and recommending solutions to the oversight committee."/

Amend sections, total and title to conform.

Senator LAND explained the amendment.

Senator LAND moved that the amendment be adopted.

The amendment was adopted.

Senator SETZLER proposed the following Amendment No. 93 (CYY\18566.SD), which was adopted:

Amend the bill, as and if amended, in Part II, by adding a new section to be appropriately numbered which shall read:

TO AMEND THE 1976 CODE BY ADDING SECTION 11-35-55 SO AS TO PROVIDE THAT A GOVERNMENTAL BODY PROCURING GOODS OR SERVICES UNDER THE CONSOLIDATED PROCUREMENT CODE, AND ANY AGENCY OR DEPARTMENT OF A POLITICAL SUBDIVISION OF THIS STATE PROCURING GOODS OR SERVICES UNDER THE CONSOLIDATED PROCUREMENT CODE OR ITS OWN PROCUREMENT CODE, MAY NOT ACCEPT ANY PROPOSALS FROM OR PROCURE ANY GOODS OR SERVICES FROM AN ENTITY WHICH EMPLOYS OR USES INMATES OF A CORRECTIONAL SYSTEM OF ANOTHER STATE WHO ARE NOT PAID AT LEAST THE REQUIRED FEDERAL MINIMUM WAGE FOR WORK PERFORMED IN THE MANUFACTURING, PROCESSING, OR SUPPLYING OF THOSE GOODS OR SERVICES.

The 1976 Code is amended by adding:

"Section 11-35-55. A governmental body procuring goods or services under the consolidated procurement code, and any agency or department of a political subdivision of this State procuring goods or services under the consolidated procurement code or its own procurement code, may not accept any proposals from or procure any goods or services from an entity which employs or uses inmates of a correctional system of another state who are not paid at least the required federal minimum wage for work performed in the manufacturing, processing, or supplying of those goods or services."/

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

Senator LAND proposed the following Amendment No. 94 (436\11700.DW), which was adopted:

Amend the bill, as and if amended, Part II,

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

/SECTION

TO AUTHORIZE A PERMANENT FULL TIME STATE EMPLOYEE WHO SERVED ON ACTIVE DUTY AS A RESULT OF OPERATION DESERT STORM TO USE UP TO FORTY-FIVE DAYS OF ACCUMULATED ANNUAL LEAVE IN A CALENDAR YEAR IF THE LEAVE IS USED BEFORE DECEMBER 31, 1991.

Notwithstanding the provisions of Section 8-11-610 of the 1976 Code, a permanent full-time state employee who served on active duty as a result of Operation Desert Storm may use up to forty-five days of accumulated annual leave in a calendar year if the leave is used before December 31, 1991./

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

Senator LAND moved that the amendment be adopted.

The amendment was adopted.

Senator WADDELL proposed the following Amendment No. 112 (5690.AC), which was adopted:

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

TO AMEND SECTION 2-11-80 OF THE 1976 CODE, RELATING TO THE SALE OF BOOKS AND DOCUMENTS BY THE LEGISLATIVE COUNCIL, SO AS TO PROVIDE THAT SUCH ITEMS, INCLUDING CODES AND SUPPLEMENTS, MAY BE SOLD BY THE COUNCIL DIRECTOR AND THE PROCEEDS REINVESTED IN THE COUNCIL LIBRARY OR CODE INVENTORY; AND TO REPEAL SECTION 2-13-230 RELATING TO THE SALE OF CODES AND SUPPLEMENTS BY THE LEGISLATIVE COUNCIL.

A. Section 2-11-80 is amended to read:

"The director of the Legislative Council may sell any codes, supplements, books, and documents and the proceeds of any sale must be invested in other books or documents for the Legislative Council library or code inventory."

B. Section 2-13-230 of the 1976 Code is repealed./

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senator MACAULAY proposed the following Amendment No. 118 (RES3650.048), which was adopted:

Amend the bill, as and if amended, Part II, Page 0772 by:

(X) ADDING A NEW SECTION

TO PROVIDE FOR THE PUBLICATION AND DISTRIBUTION OF A ROSTER OF SOUTH CAROLINA SOLDIERS, SAILORS, MARINES, AIRMEN, AND OTHER MILITARY PERSONNEL WHO SERVED THE UNITED STATES IN THE KOREAN CONFLICT, VIETNAM CONFLICT, AND OPERATION DESERT STORM.

The Department of Veterans' Affairs of the State of South Carolina shall provide for the preparation to secure the printing and publication of a complete roster of all South Carolina soldiers, sailors, marines, airmen, and all other military personnel who entered the service of the United States in the Korean conflict, the Vietnam conflict, and Operation Desert Storm.

The roster shall contain the principal items of the record of each solider, sailor, marine, or airman and of women who entered the armed services as shown by the service cards or records in the Office of the State Selective Service, the Adjutant General, and in the Department of Defense of the United States. In the preparation of such roster all names shall be arranged in alphabetical order or in such manner as to render all information contained therein readily accessible, and reference shall be made to the numerous records on file in the Office of the State Selective Service of South Carolinians who served in the Korean Conflict, the Vietnam Conflict, and Operation Desert Storm.

The distribution shall be under the direction of the Veterans' Affairs Office as follows:

One copy or set to the State Library, each public library of the State, each college or university library, the Archives Department of the State of South Carolina, Department Headquarters of the American Legion Auxiliary, Department Headquarters of the Veterans of Foreign Wars, Department Headquarters of the Disabled American Veterans, each County Veterans' Service Officer, and the State Veterans' Affairs Office. The remainder of the copies after such distribution shall be placed in the Office of the Department of Veterans' Affairs for distribution as needed./

Amend sections, totals and title to conform.

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

Senator MACAULAY moved that the amendment be adopted.

The amendment was adopted.

Senator LONG proposed the following Amendment No. 127A (RES3650.115), which was adopted:

Amend the bill, as and if amended, Part II:

BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTIONS 12-36-910 AND 12-36-2620 OF THE 1976 CODE SO AS TO PROVIDE FOR THE IMPOSITION OF A SALES TAX ON THE GROSS PROCEEDS A VENDOR RECEIVES FROM SELLING ADVERTISING ON OUTDOOR BILLBOARDS WITHIN SOUTH CAROLINA AND TO FURTHER PROVIDE THAT SUCH TAXES MUST BE RETURNED TO THE COUNTY IN WHICH IT WAS COLLECTED TO BE USED FOR THE IMPROVEMENT AND MAINTENANCE OF INFRASTRUCTURE.

A. Section 12-36-910 of the 1976 Code is amended to read:

"Section 12-36-910. (A) A sales tax, equal to five percent of the gross proceeds of sales, is imposed upon every person engaged or continuing within this State in the business of selling tangible personal property at retail.

(B) The sales tax also applies to the:

(1) gross proceeds accruing or proceeding from the business of providing or furnishing any laundering, dry cleaning, dyeing, or pressing service, but does not apply to the gross proceeds derived from coin-operated laundromats and dry cleaning machines;

(2) gross proceeds accruing or proceeding from the sale of electricity;

(3) gross proceeds accruing or proceeding from the charges for the ways or means for the transmission of the voice or messages, including the charges for use of equipment furnished by the seller or supplier of the ways or means for the transmission of the voice or messages;

(4) fair market value of tangible personal property manufactured within this State, and used or consumed within this State by the manufacturer; and

(5) gross proceeds accrued or derived from contracts to place advertising on outdoor billboards with the State of South Carolina. Such receipts are subject to the tax imposed by this chapter regardless of the location of the advertiser."

B. Section 12-36-2620 of the 1976 Code is amended to read:

"Section 12-36-2620. The taxes imposed by Sections 12-36-910, 12-36-920(B), 12-36-1310, and 12-36-1320 are composed of two taxes as follows:

(1) a four percent tax, which must be credited as provided in Section 59-21-1010(A); and

(2) a one percent tax, which must be credited as provided in Section 59-21-1010(B). The one percent tax specified in this item (2) does not apply to sales to an individual eighty-five years of age or older purchasing tangible personal property for his own personal use.

Notwithstanding any other provision of law, the revenue resulting from the tax imposed by Section 12-36-910(5) must be returned to the county in which the outdoor billboard is located to be used for the improvement and maintenance of infrastructure./

Amend sections, totals and title to conform.

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

Senator LONG moved that the amendment be adopted.

The amendment was adopted.

Senator SETZLER proposed the following Amendment No. 134 (EDU3650.050), which was adopted:

Amend the bill, as and if amended, Part II, Amendment No. 92 (EDU3650.041) by:

(X) ADDING THE FOLLOWING, after the last line:

/C. In order to complete the 1990-91 awards for the Teacher Incentive Program and the Principal Incentive Program, up to $250,000 of the administrative funds allowed for these programs may be carried forward into the 1991-92 fiscal year and used by the school districts for that purpose./

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

Senators LEVENTIS, LAND and MACAULAY proposed the following Amendment No. 132 (BR1\1649.AC), which was adopted:

Amend the bill, as and if amended, Part II, Section 30, Page 0764, by:

(X) BY STRIKING AND INSERTING:

TO AMEND SECTION 44-56-510 OF THE 1976 CODE, RELATING TO WASTE ASSESSMENTS, SO AS TO INCREASE THE FEES CHARGED FOR WASTE DISPOSED OF IN A SITE PERMITTED TO RECEIVE HAZARDOUS WASTE, NOT OTHERWISE ASSESSED, FROM SEVEN DOLLARS AND FIFTY CENTS A TON FOR OUT-OF-STATE WASTE TO EIGHT DOLLARS AND FIFTY CENTS, AND TO PROVIDE THAT ONE DOLLAR OF THESE FEES COLLECTED BE REMITTED TO THE TOWN OF PINEWOOD FOR INDUSTRIAL DEVELOPMENT IN SUMTER OR CLARENDON COUNTY WITHIN FIVE MILES OF THE PERMITTED HAZARDOUS WASTE LAND DISPOSAL SITE IN SUMTER COUNTY.

Section 44-56-510 of the 1976 Code is amended to read:

"Section 44-56-510. (A) Any waste disposed of in a land disposal site permitted to receive hazardous waste for disposal and not assessed a fee under the provisions of Article 1 of this chapter must be assessed as follows:

(1) A fee of five dollars a ton of wastes generated and disposed of in this State by landfilling or other means of land disposal must be remitted to the department.

(2) For all wastes generated outside of the State and received at a facility during the quarter, each owner/operator of a hazardous waste land disposal facility shall remit to the department a fee of eight dollars and fifty cents a ton.

(B) One dollar a ton of the fees assessed pursuant to subsection (A)(2) must be remitted to the Town of Pinewood for industrial development in Sumter or Clarendon County within five miles of the permitted hazardous waste land disposal site in Sumter County.

(C) The disbursal of funds remitted to the Town of Pinewood is at the discretion of the House and Senate members serving the geographical area of the landfill and the five mile radius of the landfill pursuant to subsection (B)."/

Amend sections, totals and title to conform.

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

Senator WADDELL raised the Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator LAND spoke on the Point of Order.

Senator MACAULAY spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Senator LAND moved that the amendment be adopted.

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

Bryan Courson Hinds
Hinson Land Leatherman
Leventis Long Lourie
Macaulay Martin McConnell
McGill Mitchell Mullinax
O'Dell Passailaigue Peeler
Pope Reese Rose
Russell Saleeby Setzler
Smith, N.W. Thomas Washington
Wilson

Drummond Gilbert Martschink
Shealy Smith, J.V. Stilwell
Waddell Williams

The amendment was adopted.

Senator HINDS proposed the following Amendment No. 111 (5689.HC), which was adopted:

Amend the bill, as and if amended, Part II, Section 48, Page 770, right column by:

(X) STRIKING SECTION 48 AND INSERTING:

TO AMEND SECTION 12-7-1220, AS AMENDED, OF THE 1976 CODE, RELATING TO THE JOBS TAX CREDIT, SO AS TO INCLUDE TOURISM FACILITIES AND DEFINE THE TERM; AND TO REVISE THE DEFINITION OF A PROCESSING FACILITY TO INCLUDE BUSINESS ENTITIES ENGAGED IN PROCESSING AGRICULTURAL, AQUACULTURAL, OR MARICULTURAL PRODUCTS.

A. Section 12-7-1220 of the 1976 Code, as last amended by Act 175 of 1989, is further amended to read:

"Section 12-7-1220. (A) Annually by December thirty-first, using the most current data available from the South Carolina Employment Security Commission and the United States Department of Commerce, the Tax Commission shall rank and designate the state's counties as provided in this section. The sixteen counties in this State having a combination of the highest unemployment rate and lowest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated less developed counties. The fifteen counties in the State with a combination of the next highest unemployment rate and next lowest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated moderately developed counties. The fifteen counties in the State with a combination of the lowest unemployment rate and the highest per capita income for the most recent thirty-six month period with equal weight being given to each category are designated developed counties. Corporations which create new full-time jobs qualify for the appropriate tax credit as provided in subsections (B), (C), and (D). The designation by the commission is effective for corporate tax years which begin after the date of designation. For corporations which plan a significant expansion in their labor forces at a South Carolina location, the appropriate commission shall prescribe certification procedures to insure that the corporations can claim credits in future years without regard to whether or not a particular county is removed from the list of less developed or moderately developed counties.

(B) Corporations operating manufacturing, tourism, processing, warehousing, distribution, research and development, and corporate office facilities in counties designated by the commission as less developed are allowed a job tax credit for taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7 of Title 38 equal to one thousand dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding in the applicable county for the taxable year with the corresponding period of the prior taxable year. Only those corporations that increase employment by ten or more in a less developed county are eligible for the credit. Credit is not allowed during the five years if the net employment increase falls below ten. The appropriate commission shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of ten.

(C) Corporations operating manufacturing, tourism, processing, warehousing, distribution, research and development, and corporate office facilities in counties that have been designated by the commission as moderately developed are allowed a job tax credit for taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7 of Title 38 equal to six hundred dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees in the applicable county subject to South Carolina income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those corporations that increase employment by eighteen or more in a county that has been designated moderately developed are eligible for the credit. The credit is not allowed during the five years if the net employment increase falls below eighteen. The appropriate commission shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of eighteen.

(D) Corporations operating manufacturing, tourism, processing, warehousing, distribution, research and development, and corporate office facilities in counties designated by the commission as developed are allowed a job tax credit for taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7 of Title 38 equal to three hundred dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees in the applicable county subject to South Carolina income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those corporations that increase employment by fifty or more in a county that has been designated developed are eligible for the credit. The credit is not allowed during the five years if the net employment increase falls below fifty. The appropriate commission shall adjust the credit allowed each year for net new employment fluctuations above the minimum level of fifty.

(E) Tax credits for five years for the taxes imposed by Section 12-7-230 and for insurance premium taxes imposed pursuant to Chapter 7 of Title 38 must be awarded for additional new full-time jobs created by corporations qualified under subsections (B), (C), (D), and (I). Additional new full-time jobs must be determined by subtracting highest total employment of the corporation during years two through six, or whatever portion of year two through six completed, from the total increased employment. The appropriate commission shall adjust the credit allowed for employment fluctuations during the additional five years of credit.

(F) The sale, merger, acquisition, or bankruptcy of a corporation may not create new eligibility in a succeeding corporation, but unused job tax credits may be transferred and continued by a transferee of the corporation. The appropriate commission shall determine whether or not qualifying net increases or decreases have occurred and may require reports, promulgate regulations, and hold hearings needed for substantiation and qualification.

(G) A credit claimed under this section but not used in a taxable year may be carried forward for ten years from the close of the tax year in which the credit is earned by the corporation. However, the credit established by this section taken in one tax year must be limited to an amount not greater than fifty percent of the taxpayer's state corporate income tax or premium tax liability which is attributable to income or premiums derived from operations in the State for that year.

(H) For the purpose of this section:

(1) `New job' means a job created by an employer in South Carolina at the time a new facility or an expansion initially is staffed but does not include a job created when an employee is shifted from an existing South Carolina location to a new or expanded facility.

(2) `Full-time' means a job requiring a minimum of thirty-five hours of an employee's time a week for the entire normal year of company operations or a job requiring a minimum of thirty-five hours of an employee's time for a week for a year in which the employee was initially hired for or transferred to the South Carolina facility.

(3) `Corporation' means a business entity which is subject to South Carolina taxes as contained in Section 12-7-230 and Chapter 7 of Title 38.

(4) `Manufacturing facility' means an establishment where tangible personal property is produced or assembled.

(5) `Processing facility' means an establishment engaged in services such as manufacturing-related, computer-related, communications-related, energy-related, or transportation-related services. It does not include an establishment where retail merchandise or retail services are sold directly to retail customers. `Processing facility' also includes a business entity engaged in processing agricultural, aquacultural, or maricultural products.

(6) `Warehousing facility' means an establishment where tangible personal property is stored. It does not include an establishment which operates as a location where retail sales of tangible personal property are made to retail customers.

(7) `Distribution facility' means an establishment where shipments of tangible personal property are processed for delivery to customers. It does not include an establishment which operates as a location where retail sales of tangible personal property are made directly to retail customers. For the purpose of this definition, a `distribution facility' includes establishments which process customer sales orders by mail, telephone, or electronic means, if the establishment also processes shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside South Carolina.

(8) `Research and development facility' means an establishment engaged in laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improving existing products. It does not include an establishment engaged in efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects.

(9) `Corporate office facility' means the location where corporate managerial, professional, technical, and administrative personnel are domiciled and employed, and where corporate financial, personnel, legal, technical, support services, and other business functions are handled. Support services include, but are not limited to, claims processing, data entry, word processing, sales order processing, and telemarketing. A `corporate office facility' does not include establishments engaged in the direct sale of retail merchandise or retail services to retail customers. For the purpose of this definition, `sales order processing' facilities include establishments which process customer sales orders by mail, telephone, or electronic means, if the establishments also process shipments of tangible personal property to customers and if at least seventy-five percent of the dollar amount of goods sold through the facility are sold to customers outside South Carolina.

(10) `Retail sales' and `tangible personal property', for purposes of this section, have meanings contained in Chapter 36 of Title 12.

(11) `Tourism facility' means an establishment used for a theme park, an amusement park, an historical, an educational, or a trade museum, a botanical garden, a cultural center, a theater, a motion picture production studio, a convention center, an arena, an auditorium, or a spectator or participatory sports and similar establishments where entertainment, education, or recreation is provided to the general public. Tourism facility also includes new hotel and motel construction, except that to qualify for the credits allowed by this section and regardless of the county in which the facility is located, the number of new jobs that must be created by the new hotel or motel is twenty or more. It does not include that portion of an establishment where retail merchandise or retail services are sold directly to retail customers.

(I) Permanent business enterprises engaged in manufacturing, tourism, processing, warehousing, wholesaling, research and development, and service-related industries in a business or industrial park jointly established and developed by a group of counties pursuant to Section 13 of Article VIII of the Constitution of this State are allowed an additional job tax credit for taxes imposed by Section 12-7-230, in addition to those job tax credits already authorized by this section, equal to five hundred dollars annually for each new full-time employee job for five years beginning with years two through six after the creation of the job. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to South Carolina income tax withholding for the taxable year with the corresponding period of the prior taxable year. The limitations and conditions contained in subsections (E), (F), and (G) also apply to the additional job tax credit authorized by this subsection. Notwithstanding which of the participating counties where the permanent business is located, for purposes of the regular job tax credits authorized by subsections (B), (C), and (D), the participating county which would qualify for the greatest dollar amount of job tax credit is the county the permanent business enterprise is deemed to be located in regardless of whether or not it actually is located in another participating county."

B. This section is effective for tax years beginning after 1990./

Amend sections, totals and title to conform.

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

The amendment was adopted.

Senator PASSAILAIGUE proposed the following Amendment No. 119 (1636.DW), which was adopted:

Amend the bill, as and if amended, Part II:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO CREATE A COMMUNITY DIVERSIFICATION PROGRAM TO HELP LOCAL COMMUNITIES THAT ARE RELIANT ON FEDERAL DEFENSE EXPENDITURES COPE WITH THE ANTICIPATED DECREASE IN DEFENSE SPENDING, AND TO CREATE THE ADVISORY COUNCIL ON ECONOMIC DIVERSIFICATION TO OVERSEE THE PROGRAM.

Whereas, the General Assembly finds that the industrial and manufacturing base of the South Carolina economy has undergone tremendous change during the past two decades; and

Whereas, the challenge facing South Carolina firms is to become as productive and efficient as possible in order to survive in an increasingly competitive world market; and

Whereas, many of the state's communities are dependent on one or two industries and many firms are heavily reliant on the defense expenditures of the federal government; and

Whereas, it is the intent of the General Assembly to assist communities in planning for economic change, developing a broader economic base, and preparing for any shift in federal priorities that could cause a reduction in federal expenditures, and to assist firms by providing information and technical assistance necessary for them to introduce new products or production processes. Now, therefore,

A. The community diversification program is created under the State Development Board. The program shall include:

(1) the monitoring and forecasting of shifts in the economic prospects of major defense employers in the State. This shall include, but not be limited to, the monitoring of defense contract expenditures, other federal contracts, defense employment shifts, the aircraft and aerospace industry, computer products, and electronics;

(2) the identification of cities, counties, or regions within the State that are primarily dependent on defense or other federal contracting and the identification of firms dependent on federal defense contracts;

(3) assistance to communities in broadening the local economic base through the provision of management assistance, assistance in financing, entrepreneurial training, and assistance to businesses in using off-the-shelf technology to start new production processes or introduce new products;

(4) formulating a state plan for diversification in defense dependent communities in collaboration with the Employment Security Commission and the Budget and Control Board. The plan shall use the information made available through carrying out items (1) and (2) of this subsection; and

(5) the identification of diversification efforts conducted by other states, the federal government, and other nations, and the provision of information on these efforts, as well as information gained through carrying out items (1) and (2), for firms, communities, and workforces that are defense dependent.

The State Development Board shall, beginning January 1, 1992, report annually to the Governor and the General Assembly on the activities of the community diversification program.

B. (A) The Advisory Council on Economic Diversification consisting of nine members is created to provide advice to the State Development Board in carrying out its community diversification program. The Governor shall appoint seven members as follows:

(1) one member from a defense dependent firm in a managerial position;

(2) one non-managerial employee representative of a defense dependent firm;

(3) one civilian employee from a South Carolina military installation;

(4) two members from local governments, from communities dependent on defense expenditures;

(5) one member representing the financial institutions of the State; and

(6) one member representing military leadership in the State. Two members of the advisory council shall be from the legislature as follows:

(1) one from the Senate General Committee to be appointed by the President of the Senate, and

(2) one from the Medical, Military, Public and Municipal Affairs Committee of the House of Representatives to be appointed by the Speaker of the House of Representatives. The director of the State Development Board or the director's designee shall serve as the nonvoting chairperson of the advisory council.

Members of the council other than the chair shall serve for two-year terms. Vacancies shall be filled in the same manner as the original appointments. Members of the council shall receive no compensation but shall be reimbursed for travel expenses. The State Development Board shall assign staff to the council as necessary to carry out the purposes of this chapter.

(B) It is the council's duty to:

(1) initiate a continuous and close working relationship with the South Carolina Congressional Delegation in order that the State keep apprised of changes in the Federal Defense Budget;

(2) act as a liaison to the United States Department of Defense, other federal agencies, and private defense-related industries so that the State has an established and well identified group of offices to refer inquiries regarding the military's presence and potential in South Carolina;

(3) develop a program to forge a stronger working relationship between the legislative and executive branches in order to assist the competitiveness of South Carolina business in the national marketplace;

(4) design state procurement programs for advanced technologies to expose state offices to new technologies and encourage defense contractors to diversify their markets;

(5) develop business management and strategy workshops for small defense-related firms to encourage market diversification and to address special needs;

(6) coordinate special forums for major South Carolina contractors and military base officials to foster discourse in the defense industry;

(7) use existing funding or create new sources of funding to encourage joint ventures for the development of new products and services;

(8) promote South Carolina directories of minority-owned businesses to assist companies and military installations in fulfilling their small business content requirements for federal contracts;

(9) in cooperation with the State Board for Technical and Comprehensive Education develop and implement specialized training programs for defense prime contractors and subcontractors;

(10) promote the State Employment Service Program's recruiting service as a tool for contractors with layoff or hiring needs; and

(11) assist in designing innovative daycare programs in labor critical areas.

C. The community diversification program and the Advisory Council on Economic Diversification terminates on June 30, 1996./

Amend sections, totals and title to conform.

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

Senator PASSAILAIGUE moved that the amendment be adopted.

The amendment was adopted.

Senator LEVENTIS assumed the Chair.

Senators LEATHERMAN and LOURIE proposed the following Amendment No. 133 (RES3650.067), which was adopted:

Amend the bill, as and if amended, Part II, Section 4, Page 753, Lines 12 & 13, left column by:

STRIKING /based on funds obligated or committed by the council in the previous year./

AND INSERTING /to the extent and in an amount necessary to maintain an uncommitted and/or an unobligated fund balance not to exceed ten million dollars for the ensuing fiscal year./

Amend sections, totals and title to conform.

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

Senator PASSAILAIGUE spoke on the amendment.

Senator LEATHERMAN moved that the amendment be adopted.

The amendment was adopted.

Senator LOURIE proposed the following Amendment No. 137 (RES3650.069), which was adopted:

Amend the bill, as and if amended, Part II, Page 773 by:

(X) ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

The State Housing Finance and Development Authority shall annually transfer the sum of twenty-five thousand dollars to the Department of Mental Health for the purpose of providing staff and services for the Homeless Task Force. The transfer shall be made prior to August 16 of each year beginning with FY1991-92./

Amend sections, totals and title to conform.

Senator LOURIE explained the amendment.

Senator LOURIE moved that the amendment be adopted.

The amendment was adopted.

Senator LONG proposed the following Amendment No. 138 (7542.BD), which was adopted:

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

TO AMEND THE 1976 CODE BY ADDING CHAPTER 22 TO TITLE 24 SO AS TO PROVIDE FOR THE CLASSIFICATION SYSTEM AND ADULT CRIMINAL OFFENDER MANAGEMENT SYSTEM BY ESTABLISHING A SYSTEM TO ALLEVIATE PRISON OVERCROWDING BY PROVIDING FOR THE IDENTIFICATION, PREPARATION, AND PLACEMENT OF APPROPRIATE NONVIOLENT OFFENDERS IN THE COMMUNITY; AND TO REPEAL SECTIONS 24-3-1110 THROUGH 24-3-2060, THE PRISON OVERCROWDING POWERS ACT.

Whereas, the General Assembly finds that the prison system population of South Carolina is at epidemic proportions which has created legal and crippling economic consequences for the State; and

Whereas, the General Assembly further finds that the State shall address this immediate problem through a prison overcrowding program which identifies and prepares qualified nonviolent offenders to be placed and controlled within the community in lieu of building additional prisons.

A. Title 24 of the 1976 Code is amended by adding:

Section 24-22-10. This chapter may be cited as the `Adult Criminal Offender Management System Act'.

Section 24-22-20. As used in this chapter:

(1) `Adult Criminal Offender Management System' means the system developed by the State Board of Corrections and the State Board of Probation, Parole and Pardon Services which permits carefully screened inmates to be identified, transferred into State Department of Corrections reintegration centers, and placed in State Department of Probation, Parole and Pardon Services community control strategies.

(2) `Community control strategies' means offender supervision and offender management methods available in the community, including, but not limited to, home detention, day reporting centers, restitution centers, public service work programs, substance abuse programs, short term incarceration, and intensive supervision.

(3) `High count' means the largest male prison system population, the largest female prison system population, or both, on a given day during a one-month period.

(4) `Prison' means a male correctional facility, female correctional facility, or combined male and female correctional facility operated by the Department of Corrections.

(5) `Prison system' means the prisons operated by the Department of Corrections.

(6) `Offender' means a male inmate or female inmate, or both, who, at the time of the initiation of the Criminal Offender Management System or during continuation of the system is serving a criminal sentence under commitment to the Department of Corrections, including persons serving sentences in local detention facilities designated under the provisions of applicable law and regulations.

(7) `Prison system population' means the total number of male prisoners, female prisoners, or combined female and male prisoners housed in the prisons operated by the Department of Corrections.

(8) `Reintegration center' means an institution operated by the Department of Corrections which provides for the evaluation of and necessary institutional programs for inmates in the Criminal Offender Management System.

(9) `Release date' means the date projected by the Department of Corrections on which a prisoner will be released from prison, assuming maximum accrual of credit for good behavior under Section 24-13-210 and earned work credits under Section 24-13-230.

(10) `Qualified prisoners' means male prisoners, female prisoners, or the combined total of female and male prisoners convicted of a nonviolent offense as defined under Section 16-1-70 and who meet the eligibility criteria for placement in the Adult Criminal Offender Management System as determined by joint agreement between the Board of Probation, Parole and Pardon Services and the Department of Corrections.

(11) `Operating capacity' means the safe and reasonable male inmate capacity, female inmate capacity, or combined male and female inmate capacity of the prison system operated by the Department of Corrections, certified by the Department of Corrections and approved by the State Budget and Control Board.

Section 24-22-30. To be eligible to participate in the system, an offender:

(1) shall maintain a clear disciplinary record during his incarceration or for at least six months before consideration for placement in the system;

(2) shall demonstrate during incarceration a general desire to become a law-abiding member of society;

(3) shall satisfy reasonable requirements imposed on the offender by the Department of Corrections;

(4) must be willing to participate in the system and its programs and rehabilitative services and agree to conditions imposed by the departments;

(5) shall possess an acceptable risk score. The risk score is affected by, but is not limited to, the:

(a) nature and seriousness of the current offense;

(b) nature and seriousness of prior offenses;

(c) institutional record;

(d) performance under prior criminal justice supervision;

(6) shall satisfy other criteria established by the Department of Corrections and the Board of Probation, Parole and Pardon Services.

Section 24-22-40. The Department of Probation, Parole and Pardon Services and the Department of Corrections jointly shall develop the policies, procedures, guidelines, and cooperative agreements for the implementation of an adult criminal offender management system which permits carefully screened and selected male offenders and female offenders to be enrolled in the criminal offender management system. The Board of Probation, Parole and Pardon Services shall enroll offenders monthly into the system to prevent the prison system population from exceeding one hundred percent of capacity at high count.

Section 24-22-50. The system must operate when the system is funded appropriately.

Section 24-22-60. Offenders enrolled in the system must be evaluated at Department of Corrections reintegration centers. The evaluation must determine the offender's needs before community placement. The programs and services provided at a reintegration center by the Department of Corrections shall prepare offenders to be placed in the appropriate community control strategies.

Section 24-22-70. Offenders enrolled in the system are entitled to good behavior credit specified in Section 24-13-210 and earned work credits determined pursuant to Section 24-13-230. Offenders revoked from the system may not receive credit on their sentence for six months or for the time credited while placed in the community control strategies, whichever is less.

Section 24-22-80. Revocation of system status awarded under this chapter is a permissible prison disciplinary action. Offenders transferred to a reintegration center who have not been placed in and agreed to community control strategies and who violate the conditions of the system may be revoked from the system by the Department of Corrections. System status of offenders who have been placed in and agreed to the community control strategies who violate the conditions of the system certificate may be revoked by the Department of Probation, Parole and Pardon Services. The revocation procedures must be developed jointly by the Department of Corrections and the Department of Probation, Parole and Pardon Services. There is no right to appeal a revocation.

Section 24-22-90. (A) Offenders must be enrolled in the system and supervised in the community by the Department of Probation, Parole and Pardon Services. The Department of Corrections shall transfer enrolled inmates to a Department of Corrections reintegration center for evaluation pursuant to Section 24-22-60. The Department of Probation, Parole and Pardon Services shall issue a system certificate with conditions which must be agreed to by the offender before his placement in the community control strategies.

(B) The Department of Corrections shall notify the Department of Probation, Parole and Pardon Services of victim impact statements filed pursuant to Section 16-3-1550 referencing offenders enrolled in the system. The Department of Probation, Parole and Pardon Services shall send notice at least ten days before the offender's placement in the community to victims and witnesses whose names and addresses have been furnished by the Department of Corrections and to the sheriff's office of the county where the offender is to be placed.

Section 24-22-100. Offenders enrolled in the system shall participate in programs designated by the Department of Probation, Parole and Pardon Services including community control strategies. These strategies include, but are not limited to:

(1) the Department of Probation, Parole and Pardon Services home detention supervision program;

(2) day reporting centers;

(3) restitution centers;

(4) public service work programs;

(5) substance abuse programs;

(6) short term incarceration;

(7) intensive supervision programs.

Section 24-22-110. Offenders enrolled in the system retain the status of inmates in the jurisdiction of the Department of Corrections. Control over the offenders is vested in the Department of Corrections while the offender is in a reintegration center and is vested in the Department of Probation, Parole and Pardon Services while the offender is in the community. Offenders may be revoked from the system for a violation of a condition of the system. There is no right to appeal the revocation decision of either department.

Section 24-22-120. (A) When an enrolled offender is at a reintegration center, he may be disciplined or removed from the system, or both, according to procedures established by the Department of Corrections.

(B) During community supervision, a probation and parole agent may issue a warrant or a citation and affidavit setting forth that the person enrolled in the system, in the agent's judgment, has violated the conditions of the system. A police or other officer with the power of arrest in possession of a warrant may arrest the offender and detain him in the county jail or other appropriate place of detention until he is brought before the Department of Probation, Parole and Pardon Services. The offender is not entitled to be released on bond pending a hearing.

Section 24-22-130. An offender enrolled in the system must not be given a parole hearing or released on supervised furlough when he is on system status. An offender who has vested rollbacks granted under the Prison Overcrowding Powers Act may not lose benefits. An offender enrolled in the system remains in it until his sentence is satisfied, unless sooner revoked.

Section 24-22-140. This chapter does not create a `liberty interest' or an `expectancy of release' in an offender.

Section 24-22-150. The system must not be initiated and offenders must not be enrolled in the system unless it is appropriately funded out of the state general fund. When the system is in operation and either the Department of Corrections or the Department of Probation, Parole and Pardon Services determines that its funding for the system has been exhausted, the commissioner for the department having made that determination shall notify the commissioner of the other department, the Governor, the Speaker of the House of Representatives, and the President Pro Tempore of the Senate. The system terminates until appropriate funding is provided from the state general fund.

Section 24-22-160. The Board of Corrections and the Budget and Control Board shall establish the operating capacities of the male prison population and the female prison population of the prison system operated by the Department of Corrections and, at least quarterly, shall certify existing operating capacities or establish changed or new operating capacities."

B. Sections 24-3-1110, 24-3-1120, 24-3-1130, 24-3-1140, 24-3-1150, 24-3-1160, 24-3-1170, 24-3-1180, 24-3-1190, 24-3-2010, 24-3-2020, 24-3-2030, 24-3-2050, and 24-3-2060 of the 1976 Code are repealed./

Amend sections, totals and title to conform.

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

Senator LONG moved that the amendment be adopted.

The amendment was adopted.

The PRESIDENT assumed the Chair.

Senators SALEEBY and SETZLER proposed the following Amendment No. 139 (5698.HC), which was tabled:

Amend the bill, as and if amended, Part II, by adding a new section, appropriately numbered, to read:

TO AMEND THE 1976 CODE BY ADDING SECTION 9-1-1625 SO AS TO PROVIDE THAT THE REQUIRED REDUCTION IN THE BENEFITS TO A MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM WHO RETIRED BEFORE JULY 1, 1990, AND WHO ELECTED RETIREMENT OPTION 4 MAY NOT REDUCE THE TOTAL OF HIS RETIREMENT SYSTEM BENEFIT PLUS HIS SOCIAL SECURITY TITLE II BENEFIT BELOW THE BENEFIT AMOUNT HE RECEIVED FROM THE SYSTEM BEFORE THE REDUCTION.

A. Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-1625. For a member retiring before July 1, 1990, who elected retirement option 4 under Section 9-1-1620, the reduction in his benefit required pursuant to that option may not reduce the total of his retirement system benefit plus his Title II social security benefit below the benefit amount he received from the retirement system before the reduction."

B. This section takes effect July 1, 1991./

Amend sections, totals and title to conform.

Senator SALEEBY argued in favor of the adoption of the amendment and Senator WADDELL argued contra.

Senator WADDELL moved to lay the amendment on the table.

The amendment was laid on the table.

Senator MATTHEWS proposed the following Amendment No. 140 (CYY\18578.SD), which was adopted:

Amend the bill, as and if amended, in Part II, by adding a new section to be appropriately numbered which shall read:

TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION MAY CARRY FORWARD INTO FISCAL YEAR 1991-92 ANY UNEXPENDED GENERAL FUNDS FROM FISCAL YEAR 1990-91 TO BE USED ONLY FOR THE ACCESS AND EQUITY PROGRAM.

The Commission on Higher Education may carry forward into fiscal year 1991-92 any unexpended general funds from fiscal year 1990-91 to be used only for the Access and Equity Program./

Renumber sections to conform.

Amend title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

Senator THOMAS proposed the following Amendment No. 141 (3397.AL), which was tabled:

Amend the bill, as and if amended, Part II, Permanent Provisions:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND THE 1976 CODE BY ADDING SECTION 11-3-230 SO AS TO PROVIDE FOR A FIVE CENT PROCESSING FEE FOR PAYROLL DEDUCTIONS FOR INSURANCE PLANS, DEFERRED COMPENSATION PLANS, AND PROFESSIONAL ASSOCIATIONS FOR EACH DEDUCTION FOR EACH PAY PERIOD AND TO PROVIDE EXEMPTIONS.

A. The 1976 Code is amended by adding:

"Section 11-3-230. The Comptroller General shall assess a fee not to exceed five cents for processing payroll deductions for insurance plans, deferred compensation plans, and professional associations. The fee must be assessed for each deduction for each pay period. Proceeds must be remitted to the general fund of the State. This fee does not apply to charitable deductions."

B. It is the intent of the General Assembly to specifically and intentionally amend Proviso 8.7 of Section 8 of this act which includes credit unions in the assessment./

Amend sections, totals and title to conform.

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

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Senator GIESE proposed the following Amendment No. 27 (5666.HC), which was tabled:

Amend the bill, as and if amended, Part II, Section 18, Page 758, left column by:

striking lines 30 through 40 and in the right column by striking lines 1 through 4 and inserting:

/TO AMEND SECTIONS 44-2-40, AS AMENDED, AND 44-2-90 OF THE 1976 CODE, RELATING TO THE APPLICABLE FEES USED TO FUND THE SUPERB ACCOUNT, SO AS TO DOUBLE THE PORTION OF THE TANK REGISTRATION FEE WHICH MAY BE USED FOR PROGRAM ADMINISTRATION AND THE ANNUAL TOTAL WHICH MAY BE EXPENDED ON ADMINISTRATION, AND TO PROVIDE THAT AFTER DECEMBER 31, 1998, THE TANK REGISTRATION FEE DECREASES TO FIFTY DOLLARS RATHER THAN TWENTY-FIVE DOLLARS./

Amend further, page 758, right column, by striking the remainder of Section 18 beginning with line 40 and inserting:

/C. This section takes effect July 1, 1991./

Amend sections, totals and title to conform.

Senator GIESE argued in favor of the adoption of the amendment and Senator LAND argued contra.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Senators THOMAS and J. VERNE SMITH proposed the following Amendment No. 110B (9441.BD), which was ruled out of order:

Amend the bill, as and if amended, Part II, PERMANENT PROVISIONS:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 16-19-60 OF THE 1976 CODE, RELATING TO LEGAL COIN-OPERATED NONPAYOUT MACHINES, SO AS TO PROVIDE THAT THIS SECTION DOES NOT AUTHORIZE THE LICENSING OR POSSESSION OF A MACHINE THE OPERATION OF WHICH RESULTS IN A PERSON OR PERSONS PAYING OUT OR DISBURSING MONEY TO THE PLAYER AND PROVIDE FOR LICENSE REVOCATION AND FEE INCREASES FOR A LICENSEE OR HIS AGENT CONVICTED OF A GAMBLING LAW VIOLATION.

Section 16-19-60 of the 1976 Code is amended to read:

"Section 16-19-60. Nothing in Section 16-19-40 or 16-19-50 extends to coin-operated nonpayout machines with a free play feature. However, this section does not authorize the licensing, possession, or operation of a machine which disburses money to the player or the licensing or possession of a machine the operation of which results in a person or persons paying out or disbursing money to the player. If a licensee under this section or his agent is convicted of violating the gambling laws of this State, the license issued pursuant to Section 12-21-2720 is suspended for two years. If that licensee is issued a license after the suspension, the license fee provided in that section is doubled for that licensee only."/

Amend sections, totals and title to conform.

Senator McCONNELL raised the Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator THOMAS spoke on the Point of Order.

Senator LEATHERMAN spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Senator MACAULAY proposed the following Amendment No. 135 (9437.JM), which was ruled out order:

Amend the bill, as and if amended, Part II, PERMANENT PROVISIONS:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 16-19-60 OF THE 1976 CODE, RELATING TO THE PROVISION THAT NOTHING IN SECTION 16-19-40 ("UNLAWFUL GAMES AND BETTING") OR SECTION 16-19-50 ("KEEPING UNLAWFUL GAMING TABLES") EXTENDS TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE AND THE PROVISION THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING, POSSESSION, OR OPERATION OF ANY MACHINE WHICH DISBURSES MONEY TO THE PLAYER, SO AS TO PROVIDE THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING OR POSSESSION OF ANY MACHINE THE OPERATION OF WHICH RESULTS IN A PERSON OR PERSONS PAYING OUT OR DISBURSING MONEY TO THE PLAYER.

Section 16-19-60 of the 1976 Code is amended to read:

"Section 16-19-60. Nothing in Section 16-19-40 or Section 16-19-50 extends to coin-operated nonpayout machines with a free play feature. However, nothing in this section authorizes the licensing, possession, or operation of any machine which disburses money to the player or the licensing or possession of any machine the operation of which results in a person or persons paying out or disbursing money to the player."/

Amend sections, totals and title to conform.

Senator McCONNELL raised the Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator MACAULAY spoke on the Point of Order.

Senator McCONNELL spoke on the Point of Order.

Senator LEATHERMAN spoke on the Point of Order.

Senator THOMAS spoke on the Point of Order.

Senator LEATHERMAN spoke on the Point of Order.

Senator MACAULAY spoke further on the Point of Order.

The PRESIDENT sustained the Point of Order.

Senators MACAULAY and J. VERNE SMITH proposed the following Amendment No. 136, (CYY\18577.SD), which was ruled out of order:

Amend the bill, as and if amended, Part II, PERMANENT PROVISIONS:

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO AMEND SECTION 16-19-60 OF THE 1976 CODE, RELATING TO THE PROVISION THAT NOTHING IN SECTION 16-19-40 ("UNLAWFUL GAMES AND BETTING") OR SECTION 16-19-50 ("KEEPING UNLAWFUL GAMING TABLES") EXTENDS TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE AND THE PROVISION THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING, POSSESSION, OR OPERATION OF ANY MACHINE WHICH DISBURSES MONEY TO THE PLAYER, SO AS TO PROVIDE THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING OR POSSESSION OF ANY MACHINE THE OPERATION OF WHICH RESULTS IN A PERSON OR PERSONS PAYING OUT OR DISBURSING MONEY TO THE PLAYER, AND TO PROVIDE THAT IF A PERSON DOES PAY OUT OR DISBURSES MONEY TO THE PLAYER, HE IN ADDITION TO ALL OTHER PENALTIES PROVIDED BY LAW IS SUBJECT TO A CIVIL FINE OF ONE HUNDRED DOLLARS WHICH MAY BE IMPOSED BY THE TAX COMMISSION THE PROCEEDS FROM WHICH MUST BE DEPOSITED IN THE GENERAL FUND OF THE STATE.

Section 16-19-60 of the 1976 Code is amended to read:

"Section 16-19-60. Nothing in Section 16-19-40 or Section 16-19-50 extends to coin-operated nonpayout machines with a free play feature. However, nothing in this section authorizes the licensing, possession, or operation of any machine which disburses money to the player or the licensing or possession of any machine the operation of which results in a person or persons paying out or disbursing money to the player.

If a person does pay out or disburses money to the player, he in addition to all other penalties provided by law is subject to a civil fine of one hundred dollars which may be imposed by the Tax Commission the proceeds from which must be deposited in the general fund of the State."/

Amend sections, totals and title to conform.

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

Senator LEATHERMAN raised the Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator MACAULAY spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Having voted on the prevailing side, Senator LONG moved to reconsider the vote whereby Amendment No. 127A was adopted.

There was no objection.

On motion of Senator LONG, with unanimous consent, Amendment No. 127A was withdrawn..

Senator THOMAS proposed the following Amendment No. 142 (5697.HC), which was tabled:

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding a new section, appropriately numbered, to read:

TO AMEND SECTION 12-21-2720, AS AMENDED, OF THE 1976 CODE,RELATING TO LICENSES FOR COIN OPERATED DEVICES OR MACHINES, SO AS TO PROVIDE THAT A MUNICIPALITY OR COUNTY MAY NOT LIMIT THE NUMBER OF MACHINES WITHIN ITS BOUNDARIES; TO AMEND SECTION 12-21-2746, RELATING TO THE LEVY OF AN ADDITIONAL LOCAL LICENSE TAX, SO AS TO SPECIFICALLY DESIGNATE PREMISES WHICH ARE SUBJECT TO THE TAX AND PROCEDURES FOR LICENSING AND TO REQUIRE TWENTY PERCENT OF LOCAL LICENSE FEES TO BE REMITTED TO THE STATE TREASURER AND CREDITED TO THE GENERAL FUND OF THE STATE; AND TO REPEAL SECTION 16-19-60, RELATING TO THE PROVISIONS THAT SECTIONS 16-19-40 (UNLAWFUL GAMES AND BETTING) AND 16-19-50 (KEEPING UNLAWFUL GAMING TABLES) DO NOT EXTEND TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE AND TO THE PROVISION THAT SECTION 16-19-60 DOES NOT AUTHORIZE THE LICENSING, POSSESSION, OR OPERATION OF A MACHINE WHICH DISBURSES MONEY TO THE PLAYER.

A. The last paragraph of Section 12-21-2720 of the 1976 Code, as last amended by Act 170, Part II, Section 3A, Act 170 of 1987, is further amended to read:

"No municipality or county may limit the number of machines within the boundaries of the municipality or county."

B. Section 12-21-2746 of the 1976 Code is amended to read:

"Section 12-21-2746. (A) Municipalities and counties may, by ordinance, license the premises which house (1) machines for the playing of games or amusements which have a free play feature operated by a slot in which is deposited a coin or other thing of value and the machines are of the nonpayout pin table type with levers or flippers operated by the player by which the course of the balls can be altered or changed or (2) machines of the nonpayout type, in-line pin games, or video games with free play feature operated by a slot in which is deposited any coin or other thing of value. Municipalities and counties may impose the license only if the described machines already comply with all of the other provisions of this article. If both the county and municipality pass ordinances to license the premises, the county may not charge a license tax within the incorporated area of the county.

The license fee which the municipalities or counties may charge under this section may not exceed fifty dollars for the machines described in item (2) of Section 12-21-2720 and may not exceed one hundred dollars for the machines described in item (3) of Section 12-21-2720.

(B) In every municipality and county which by ordinance provides for the licensing of premises as authorized by this section, it is required that the premises license fee must be paid and that the premises license must be issued by the municipality or the county, regardless of whether all other provisions of this article have been satisfied. Without a properly issued premises license, the presence of the described machines on the premises is unlawful. Further, if an issued premises license is revoked for any reason by the municipality or county which issued it, the presence of the described machines on the premises is unlawful.

(C) If a licensee under this section or his agent is convicted of violating any of the gambling laws of this State, the premises license issued pursuant to the authority of this section must be revoked for one year for a first offense and for two years for a second and every subsequent offense.

Any person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than six months, or both.

(D) The other provisions of this article are applicable to the premises license authorized and issued under this section.

(E) Twenty percent of the license fees collected by counties and municipalities pursuant to this section must be remitted to the State Treasurer for deposit to the credit of the general fund of the State."

C. Section 16-19-60 of the 1976 Code is repealed./

Amend sections, totals and title to conform.

Senator LEATHERMAN raised the Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator MACAULAY spoke on the Point of Order.

Senator McCONNELL spoke on the Point of Order.

Senator THOMAS spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Senator THOMAS continued arguing in favor of the adoption of the amendment.

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

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

Senator HAYES assumed the Chair.

Senator MACAULAY continued arguing in favor of the adoption of the amendment.

At 6:22 P.M., on motion of Senator MACAULAY, with unanimous consent, the Senate receded from business not to exceed five minutes.

At 6:40 P.M., the Senate resumed.

The PRESIDENT assumed the Chair.

Senator MACAULAY continued arguing in favor of the adoption of the Amendment No. 142.

Senator MACAULAY asked unanimous consent to make a motion
to perfect Amendment No. 142 (RES3650.118) as follows:

Amend the amendment by:

(X) STRIKING IT IN ITS ENTIRETY

AND INSERTING THE FOLLOWING:

TO AMEND SECTION 16-19-60 OF THE 1976 CODE, RELATING TO THE PROVISION THAT NOTHING IN SECTION 16-19-40 ("UNLAWFUL GAMES AND BETTING") OR SECTION 16-19-50 ("KEEPING UNLAWFUL GAMING TABLES") EXTENDS TO COIN-OPERATED NONPAYOUT MACHINES WITH A FREE PLAY FEATURE AND THE PROVISION THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING, POSSESSION, OR OPERATION OF ANY MACHINE WHICH DISBURSES MONEY TO THE PLAYER, SO AS TO PROVIDE THAT NOTHING IN THIS SECTION AUTHORIZES THE LICENSING OR POSSESSION OF ANY MACHINE THE OPERATION OF WHICH RESULTS IN A PERSON OR PERSONS PAYING OUT OR DISBURSING MONEY TO THE PLAYER.

Section 16-19-60 of the 1976 Code is amended to read:

"Section 16-19-60. Nothing in Section 16-19-40 or Section 16-19-50 extends to coin-operated nonpayout machines with a free play feature. However, nothing in this section authorizes the licensing, possession, or operation of any machine which disburses money to the player or the licensing or possession of any machine the operation of which results in a person or persons paying out or disbursing money to the player."/

Amend sections, totals and title to conform.

Senator MACAULAY argued in favor of the adoption of the perfecting amendment.

Senator PASSAILAIGUE argued contra to the adoption of the perfecting amendment.

Senator DRUMMOND argued in favor of the adoption of the perfecting amendment.

Senator WADDELL spoke on the perfecting amendment.

Senator SHEALY argued contra to the adoption of the perfecting amendment.

Senator BRYAN argued in favor of the adoption of the perfecting amendment.

Senator J. VERNE SMITH asked unanimous consent to make a motion to recall H. 3276 from the Committee on Finance.

Senator WILLIAMS objected.

Senator WILLIAMS spoke on the perfecting amendment.

Senator HINSON argued in favor of the adoption of the perfecting amendment.

Senator PASSAILAIGUE moved to lay the perfecting amendment on the table.

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

Fielding Giese Gilbert
Hayes Hinds Land
Leventis Long Martschink
Matthews McConnell Mitchell
Passailaigue Patterson Peeler
Pope Reese Rose
Russell Saleeby Setzler
Shealy Waddell Washington
Williams

Bryan Courson Drummond
Hinson Holland Leatherman
Macaulay McGill Moore
Mullinax O'Dell Smith, J.V.
Smith, N.W. Stilwell Thomas
Wilson

The perfecting amendment was laid on the table.

The question then was the adoption of Amendment No. 142.

Senator WADDELL moved to lay the amendment on the table.

The amendment was laid on the table.

The Chairman of the Finance Committee has told us if we do not table this amendment, we will throw the Bill out of balance by $30 million. On the other hand, many of us feel that the Senate was misled last year when the proviso was put in the Bill on the machines. The issue is a serious one. We are now at the eleventh hour of this Bill. The Bill will be out of balance. Before we vote on this proviso, we need a full airing of this issue in the committee to learn all of the ramifications on the state's revenue.

Re: The amendments to change the statutes regarding coin operated games.
I voted not to change these statutes because the General Assembly knowingly imposed a tax on each machine on Friday, May 25, 1990, which was so high that it was tacitly implied that these games were "special". I voted against raising these license taxes at that time.

I did, however, yield to the majority of the legislature on this issue. I do not feel the statute should be changed unless and until a full examination of the issue is made through the normal legislative process including full hearings if citizens wish to be heard.

The Tax Commission had certified to the Chairman of the Finance Committee that passage of the amendment would have resulted in a $30 million deficit which in these dire economic times would have necessitated a tax increase to cover this loss in revenues. Because I am against raising taxes, especially during a recession, I voted to table the amendment. This issue needs a full airing of this issue in the committee to learn all of the ramifications of the recent South Carolina Supreme Court decision and how to deal with its ramifications.

The Tax Commission certified to the Chairman of the Finance Committee that passage of Amendment No. 142 to the Appropriations Bill voted on the first of May would have resulted in a a $30 million deficit which, in these dire economic times, would have necessitated a tax increase to cover this loss in revenues at the eleventh hour of the budget process. Because I am against raising taxes, especially during a recession, I voted to table the amendment. This issue needs a full airing in the committee to learn all of the ramifications of the recent South Carolina Supreme Court decision and how to deal with its ramifications. I support recalling Representative Hodges' Bill, H. 3276, so we can this year take appropriate action to correct any current abuse of coin operated amusement machines and prevent their use as a gambling device.

I voted to table this amendment because passage of the amendment would cost $30 million already programmed in the budget before us, and loss of this $30 million would require the cutting of needed services or the raising of taxes, neither of which we can afford to do at this time. In addition, regulation of the activity referenced in the amendment should be accomplished by means of a bill considered deliberatively through the committee process, rather than by abolishing precipitously with this amendment activity which legally has been in effect for many years with little objection, without determining fully who will be hurt in what manner thereby. Government should not infringe on people's freedoms without the showing of a compelling need to do so, which was not shown in the debate on this amendment. This matter probably would be best resolved by means of a public referendum, as occurred with bingo.

Senator PASSAILAIGUE proposed the following Amendment No. 143 (7557.DW), which was adopted:

Amend the bill, as and if amended, Part II,

(X) BY ADDING AN APPROPRIATELY NUMBERED SECTION TO READ:

TO PROVIDE THAT ANY EMPLOYEE BONUS PAID FROM FUNDS APPROPRIATED IN SECTION 14, PART I, MUST BE CALCULATED BY DIVIDING THE REVENUE GENERATED BY THE CHANGE IN THE NET LONG-TERM CAPITAL GAINS TAX BY THE NUMBER OF ELIGIBLE STATE EMPLOYEES, AFTER ADJUSTMENT MANDATED BY EMPLOYER CONTRIBUTIONS; PROVIDE THAT THE BUDGET AND CONTROL BOARD MUST APPROVE AND CERTIFY THE CALCULATION OF THE BONUS AMOUNT ACCORDING TO THE PROVISIONS OF THIS SECTION; AND TO PROVIDE THAT IT IS THE INTENT OF THE GENERAL ASSEMBLY TO AWARD A SIMILARLY CALCULATED EMPLOYEE BONUS IN THE FIRST QUARTER OF FISCAL YEAR OF 1992-93, TO BE FUNDED WITH REVENUE GENERATED IN THAT FISCAL YEAR BY THE REDUCTION IN THE NET LONG-TERM CAPITAL GAINS TAX.

A. Notwithstanding the provisions of Section 14 of Part I of this act, any employee bonus paid must be calculated by dividing the revenue generated by the change in the net long-term capital gains tax provided in Section 14 of Part I by the total number of eligible state employees, after adjustments for mandated employer contributions.

B. Prior to payment, the Budget and Control Board must certify and approve the calculation of the bonus amount according to the provisions in this section, which specifically and intentionally amends the proviso in Section 14 of Part I of this act, which sets the bonus amount at $240.

C. It is the intent of the General Assembly that a similarly calculated employee bonus be awarded in the first quarter of Fiscal Year 1992-93, to be funded with revenue generated in Fiscal Year 1992-93 by this change in the net long-term capital gains tax./

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

Senator WADDELL moved that the amendment be adopted.

The amendment was adopted.

Senator MACAULAY proposed the following Amendment No. 144 (5660.HC), which was tabled:

Amend the bill, as and if amended, Part II, Permanent Provisions,

(X) BY ADDING AN APPROPRIATELY NUMBERED NEW SECTION TO READ:

TO REPEAL CHAPTER 10, TITLE 4 OF THE 1976 CODE, RELATING TO THE LOCAL OPTION SALES AND USE TAX; TO AMEND SECTION 12-36-2600, RELATING TO THE PAYMENT OF SALES TAXES, SO AS TO DELETE REFERENCES TO THE LOCAL OPTION SALES AND USE TAX; AND TO REPEAL ACT 317 OF 1990 RELATING TO THIS TAX.

A. Chapter 10 of Title 4 of the 1976 Code is repealed.

B. Section 12-36-2600 of the 1976 Code, added by Act 612 of 1990, is amended by deleting subsection (D).

C. Act 317 of 1990 is repealed.

D. Any funds allocated and distributed to the South Carolina Tax Commission before the effective date of this act to defray the administrative start-up expenses incurred by the commission for the implementation of the local option sales and use tax may be retained by the commission./

Amend sections, totals and title to conform.

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

Senator FIELDING moved to lay the amendment on the table.

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

Bryan Fielding Gilbert
Hinds Land Leatherman
Long Martschink McGill
Moore Mullinax O'Dell
Passailaigue Patterson Pope
Saleeby Shealy Smith, N.W.
Waddell Washington Williams

Courson Giese Leventis
Macaulay Matthews McConnell
Mitchell Peeler Reese
Rose Setzler Smith, J.V.
Stilwell Thomas Wilson

The amendment was laid on the table.

Senators MACAULAY, PEELER and WILSON proposed the following Amendment No. 145 (BR1\1631.AC), which was tabled:

Amend the bill, as and if amended, Part II, by:

(X) ADDING THE FOLLOWING:

TO PROVIDE THAT MEMBERS OF THE GENERAL ASSEMBLY SHALL RECEIVE ALL OF THEIR LEGISLATIVE COMPENSATION ON THE DAY FOLLOWING SINE DIE ADJOURNMENT AND TO PROVIDE FOR THE PAYMENT OF LEGISLATIVE COMPENSATION TO A MEMBER WHO SERVES AN UNEXPIRED TERM.

A. Members of the General Assembly shall receive, in one payment, all of the amount appropriated for their compensation on the day following sine die adjournment of the General Assembly.

B. Any member who serves an unexpired term shall receive the same legislative compensation as other members for each legislative day he serves, not to exceed forty days.

C. The provisions of this section are effective January 1, 1992./

Amend sections, totals and title to conform.

Senator MACAULAY explained the amendment.

Senator MACAULAY moved that the amendment be adopted.

Senator BRYAN moved to lay the amendment on the table.

The amendment was laid on the table.

Senator WADDELL proposed the following Amendment No. 149 (RES3650.076), which was adopted:

Amend the Amendment No. 125 (436\11698.DW), as and if amended, by:

STRIKING: 9,380,000 9,380,000

INSERTING: 4,690,000 4,690,000

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

The amendment was adopted.

Senator WADDELL proposed the following Amendment No. 150 (RES3650.073), which was adopted:

Amend the bill, as and if amended, Part I, Section 128, Page 732, Line 4 by:

LAST COLUMN

STRIKING: 1,600,325,061

INSERTING: 1,605,015,061

Amend the bill further, as and if amended, Part I, Section 128, Page 732, Line 20 by:

LAST COLUMN

STRIKING: 69,109,299

INSERTING: 69,209,299

Amend the bill further, as and if amended, Part I, Section 128, Page 732, Line 31 by:

LAST COLUMN

STRIKING: 3,850,000

INSERTING: 3,870,960

Amend sections, totals and title to conform.

Senator WADDELL explained the amendment.

The amendment was adopted.

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

On motion of Senator WADDELL, with unanimous consent, the Senate agreed that when it adjourns on Wednesday, May 1, 1991, that it stand adjourned to meet on Thursday, May 2, 1991, at 11:00 A.M. for local and uncontested matters; and that when the Senate adjourns on Thursday, that it stand adjourned to meet on Friday, May 3, 1991, for local and uncontested matters; and that when the Senate adjourns on Friday, that it stand adjourned to meet on Tuesday, May 7, 1991, at 12:00 Noon.

Senator J. VERNE SMITH asked unanimous consent to make a motion to recall H. 3276 from the Committee on Finance.

Senator SHEALY objected.

S. 388 -- Senators Moore, Bryan, Hinds, Courson, Washington, Wilson and Giese: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 95 SO AS TO ESTABLISH THE POLICY OF THIS STATE REGARDING SOLID WASTE AND TO PROVIDE FOR THE MANAGEMENT OF SOLID WASTE; TO AMEND SECTION 16-11-700, SO AS TO INCREASE THE PENALTIES FOR VIOLATIONS OF THE LITTER LAWS; AND TO AMEND SECTION 56-1-720 SO AS TO ASSIGN POINTS FOR THE DUMPING OF LITTER ON PUBLIC OR PRIVATE PROPERTY OR WATERS; TO AMEND CHAPTER 7 OF TITLE 12 RELATING TO THE TAX LAWS BY ADDING SECTION 12-7-1255 TO PROVIDE A TAX CREDIT FOR QUALIFIED RECYCLING EQUIPMENT; AND TO AMEND CHAPTER 7 OF TITLE 12 BY ADDING AN APPROPRIATELY NUMBERED SECTION SO AS TO PROVIDE FOR A CHECKOFF ON STATE TAX RETURNS FOR CONTRIBUTIONS MADE TO THE SOLID WASTE MANAGEMENT TRUST FUND.

Senator MOORE, with unanimous consent, was recognized to make a Report of the Committee of Conference.

Senator MOORE moved for Free Conference Powers for S. 388.

On motion of Senator MOORE, with unanimous consent, Free Conference Powers were granted to the Committee of Conference, whereupon the PRESIDENT appointed Senators MOORE, GIESE, and HAYES of the Committee of Free Conference on the part of the Senate, and a message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE

S. 494 -- Senators Lourie, Leventis, McConnell, J. Verne Smith, Macaulay, Passailaigue, Long, Fielding, Helmly, Thomas, Russell, Rose, O'Dell, Mitchell and Washington: A BILL TO AMEND ARTICLES 1, 3, AND 5, CHAPTER 3, TITLE 57, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION, THE DESIGNATION OF HIGHWAY DISTRICTS, THE ELECTION OF HIGHWAY COMMISSIONERS, AND THE APPOINTMENT OF DEPARTMENT PERSONNEL SO AS TO PROVIDE FOR THE REORGANIZATION OF THE DEPARTMENT BY PROVIDING FOR DEFINITIONS TO BE USED IN CHAPTER 3, BY CHANGING THE NAME OF THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO THE DEPARTMENT OF TRANSPORTATION, BY PROVIDING FOR THE CREATION OF CERTAIN DIVISIONS WITHIN THE DEPARTMENT AND THE APPOINTMENT OF DIVISION MANAGERS, BY PROVIDING FOR THE ELECTION OF HIGHWAY COMMISSIONERS BY THE GENERAL ASSEMBLY AT LARGE AND THEIR TERM OF OFFICE, BY PROVIDING FOR THE CREATION OF SEVEN HIGHWAY DISTRICTS, AND BY PROVIDING FOR THE APPOINTMENT OF OTHER DEPARTMENT PERSONNEL; TO AMEND ARTICLE 1, CHAPTER 11, TITLE 57, RELATING TO FINANCES OF THE DEPARTMENT SO AS TO PROVIDE THAT THE DEPARTMENT MUST PROCESS ALL VOUCHERS FOR THE PAYMENT OF GOODS, SERVICES, AND PERSONNEL SERVICES THROUGH THE COMPTROLLER GENERAL'S OFFICE; TO PROVIDE FOR NEW TERMS OF OFFICE FOR COMMISSIONERS ELECTED FOR TERMS BEGINNING IN 1992; TO AMEND SECTION 11-35-45(B), RELATING TO THE DEPARTMENT'S LUMP SUM STATUS BY ELIMINATING THE DEPARTMENT'S LUMP SUM STATUS; TO PROVIDE THAT THE CODE COMMISSIONER CHANGE CERTAIN REFERENCES IN THE 1976 CODE; TO REPEAL SECTION 124.20, PART I, ACT 612 OF 1990 RELATING TO BUDGET TRANSFERS; AND TO PROVIDE FOR THE CREATION OF AN OMBUDSMAN WITHIN THE DEPARTMENT.
The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator BRYAN asked unanimous consent to make a motion that the Bill be carried over.

Senator LONG objected.

Senator BRYAN moved to carry over the Bill.

Senator LAND raised a Point of Order that the motion was nondebatable.

The PRESIDENT sustained the Point of Order.

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

Bryan Hayes Hinson
Macaulay Smith, J.V. Stilwell
Thomas

Courson Fielding Giese
Gilbert Hinds Land
Leatherman Leventis Long
Lourie Martschink Matthews
McConnell McGill Mitchell
Moore Mullinax O'Dell
Passailaigue Patterson Peeler
Pope Reese Rose
Saleeby Setzler Shealy
Smith, N.W. Waddell Washington
Williams Wilson

The Senate refused to carry over the Bill.

Debate was interrupted by adjournment.

Senator COURSON asked unanimous consent to make H. 3071 a Special Order.

Senator SETZLER moved that the Senate stand adjourned.

At 8:14 P.M., on motion of Senator SETZLER, the Senate adjourned to meet tomorrow at 11:00 A.M.

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