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 ACTING PRESIDENT, Senator GIESE.

TO: CLERK OF THE SENATE

CLERK OF THE HOUSE
FROM: THE JOINT LEGISLATIVE SCREENING COMMITTEE TO REVIEW CANDIDATES FOR THE SOUTH CAROLINA CONSUMER AFFAIRS COMMISSION
DATE: MAY 18, 1992

In compliance with the provisions of Act 119, of 1975, and Act 167 of 1979, it is respectfully requested that the following information be printed in the Journals of the Senate and the House.

Respectfully submitted,
/s/Edward E. Saleeby, Chairman /s/Rep. George H. Bailey
/s/Senator Nikki G. Setzler /s/Rep. Grady A. Brown
/s/Senator John E. Courson /s/Rep. Carole C. Wells
/s/Senator J. Yancey McGill /s/Rep. Lucille S. Whipper

Pursuant to Act 119 of 1975, this committee was organized to consider the qualifications of candidates seeking election to the South Carolina Consumer Affairs Commission for the Statewide vacancies. The committee conducts such investigation of each candidate as it deems appropriate and reports its findings to the General Assembly prior to election. It is not the function of the committee to recommend one candidate over another or suggest to the individual legislator for whom to vote. Our role is instead that of determining whether a candidate is qualified and under the statute our determination in that regard is not binding upon the General Assembly.

Seven candidates who were under consideration at the time of the hearings are discussed in this report. The candidates who appeared before the Joint Legislative Screening Committee for its consideration are as follows:

VACANCY # 1
Robert J. Leapord
Greer, South Carolina

VACANCY #3
Edna Page Anderson
Columbia, South Carolina

Lillian C. Bloom
Greenville, South Carolina

Joseph S. Lyles
Greenville, South Carolina

VACANCY #4

Marilyn Harris
Simpsonville, South Carolina

Barbara B. League
Greenville, South Carolina

Richard C. Moore
Simpsonville, South Carolina

THE JOINT LEGISLATIVE SCREENING COMMITTEE TO REVIEW CANDIDATES FOR THE SOUTH CAROLINA CONSUMER AFFAIRS COMMISSION COMMENCED AT 9:30 A.M. ON TUESDAY, MAY 12, 1992.
MR. SALEEBY ASKED ALL THE CANDIDATES TO INTRODUCE THEMSELVES.
SENATOR SALEEBY: I APPRECIATE ALL OF YOU BEING HERE. ALL THOSE OPPOSED TO EXECUTIVE SESSION, INDICATE BY SAYING "AYE". THERE APPEARS TO BE NO OPPOSITION, SO WE WILL ASK YOU TO KINDLY ... YOU CAN EITHER STEP DOWN TO MY OFFICE OR MAKE YOURSELVES AT HOME AND WE'LL CALL YOU IN ONE AT A TIME. WE'LL FIRST TALK TO MR. LEOPARD. YOU'RE NOT PART OF THE CHESTERFIELD LEOPARDS, ARE YOU?
MR. LEOPARD: COULD BE.
SENATOR SALEEBY: WE'LL CALL YOU ALL BACK LATER.
(THE CANDIDATES WERE THEN SHOWN TO A WAITING ROOM UNTIL REQUESTED BY THE COMMITTEE TO RETURN.)

(THE CANDIDATES WERE ALL INVITED BACK INTO THE COMMISSION ROOM)

1. Robert J. Leapord Business Address:

Home Address: The Spread Shed/Home Furnishings

506 Hackney Road 1004 E. Lee Road

Greer, SC 29936 Taylors, SC 29687

2. He was born in Greer, South Carolina, on January 16, 1935. His is presently 57 years old.

Social Security Number: ***-**-****

4. He was married to Claudine Fowler Leapord on June 24, 1967. He has two children: Cynthia Lee Leapord, (Teacher at Brook Glenn Elementry); Candace Ann Leapord, (2nd year student at Anderson College).

5. Military Service: Army - December 4, 1957 to December 4, 1959; Sp-5 with Honorable Discharge; Ft. Meade, Maryland.

6. He attended Furman University from 1952-1954; attended Greenville Technical School completing several courses in Real Estate during 1977; 1965 he attended Whirlpool Sales & Marketing in Benton Harbor, Michigan.

8. He is a member of: Taylors First Baptist Church in Taylors, SC and Hejaz Shrine Temple in Mauldin, SC.

15. He owns the Spread Shed/Home Furnishing Store which he is divesting himself from, and he also owns a former Yogurt Delights, which he has leased.

21. For almost 15 years Mr. Leapord was manager for J. M. Fields, Inc., a division of Food Fair, Inc., and for the past 14 years he has worked with most of the Furniture, Television and Appliance stores in South Carolina as a merchandise wholesaler.

22. Five (5) letters of recommendations:

(a) Mr. William Mitton VP

American Federal Bank

300 East McBee Avenue, Greenville, SC 29601

(b) Mr. Dan Boling

Daley Corporation

Woodruff Industrial Lane, Greenville, SC 29615

(c) Mr. Dan Howell

Howell Machinery Company

One Crestmere Lane, Taylors, SC 29687

(d) Mr. Jack Cochran

Jack Cochran Automotive

2129 Grove Road, Greenville, SC 29605

(e) Mr. William Howell

Howell Financial Group

5 Centry Drive, Greenville, SC 29607

MR. GARRISON: MR. LEAPORD, PLEASE COME FORWARD AND TAKE A SEAT AT THE MICROPHONE, PLEASE.
MR. ROBERT J. LEAPORD - EXAMINATION BY MR. GARRISON:
Q YOUR NAME IS MR. ROBERT J. LEAPORD?
A THAT'S CORRECT.
Q AND YOU RESIDE IN GREER, SOUTH CAROLINA?
A THAT'S CORRECT.
Q AND YOU HAVE FILED A NOTICE OF INTENT TO SEEK ELECTION FOR VACANCY NUMBER ONE ON THE DEPARTMENT OF CONSUMER AFFAIRS COMMISSION?
A THAT'S CORRECT.
Q WHAT'S YOUR OCCUPATION?
A I AM A PROPRIETOR OF TWO SMALL BUSINESSES, OR ONE BASICALLY THAT I RUN.
Q WHAT ARE THE NAMES OF THOSE BUSINESSES?
A SPREAD SHED/HOME FURNISHINGS.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO, NOT EXCEPT THROUGH THE CORPORATION BEING SOLD OR CHAPTER 11 OR WHATEVER.
Q DO YOU RECEIVE ANY INCOME FROM ANY OTHER SOURCES OTHER THAN YOUR EMPLOYMENT, SUCH AS STOCKS OR BONDS?
A OTHER THAN STOCKS OR BONDS, VERY LITTLE. I HAVE A YOGURT SHOP THAT I OWN AND I HAVE LEASED OUT, BUT VERY LITTLE.
Q DO ANY OF THE BUSINESSES THAT YOU OWN HAVE CONTRACTS WITH THE STATE OR FEDERAL GOVERNMENT?
A NONE WHATSOEVER.
Q DO YOU HAVE ANY BUSINESS OBLIGATIONS THAT WOULD PROHIBIT YOU FROM ATTENDING MEETINGS AND PUTTING IN THE NECESSARY TIME TO SERVE ON THIS COMMISSION?
A NO, I HAVE THE TIME.
Q DO YOU OR ANY MEMBER OF YOUR FAMILY HAVE ANY BUSINESS INTERESTS THAT WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS POSITION?
A NONE AT ALL.
Q ARE YOU OR ANY OF THE MEMBERS OF YOUR IMMEDIATE FAMILY RELATED TO ANYONE AFFILIATED WITH THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO.
Q WOULD YOU PLEASE ANSWER ANY OTHER QUESTIONS THAT ANY OF THE MEMBERS OF THE COMMITTEE HAVE FOR YOU, PLEASE?
A YES, I'LL BE GLAD TO.
SENATOR COURSON: MR. LEAPORD, YOU MENTIONED A CHAPTER 11. I WOULD LIKE TO JUST PURSUE THAT JUST A MOMENT. COULD YOU EXPLAIN WHAT YOU WERE TALKING ABOUT, CHAPTER 11.
A WELL, I WORKED FOR A NUMBER OF YEARS FOR FOOD FAIR, WHICH IS A PHILADELPHIA CORPORATION. AND THEY HAD APPROXIMATELY 1,200 STORES. AND I WAS THE REGIONAL MANAGER FOR THE J. M. FIELDS DIVISION FOR THE CAROLINAS AND VIRGINIA. AND WHEN MR. FREEMAN DIED, THE COMPANY STARTED GOING DOWNHILL, AND THE PARENT COMPANY WENT OUT OF BUSINESS. THAT'S WHAT I WAS REFERRING TO.
SENATOR COURSON: THANK YOU, SIR.
SENATOR SALEEBY: ANY OTHER QUESTIONS? I HAVE JUST ONE. MR. LEAPORD, WHY ARE YOU INTERESTED IN SERVING ON THIS BOARD? THIS IS A QUESTION I'M GOING TO ASK EVERYONE.
A I HAVE ALWAYS HAD A DESIRE TO SERVE, TO WORK WITH SOME OF THE STATE BOARDS OR COMMISSIONS, WHATEVER SMALL WAY THAT I COULD SERVE THE STATE. IT'S JUST SOMETHING THAT I'VE ALWAYS WANTED TO DO. AND I THOUGHT THAT THIS WAS A GOOD OPPORTUNITY. IT WAS SOMETHING THAT I KNEW SOMETHING ABOUT.
SENATOR SALEEBY: HOW DID YOU RECEIVE YOUR NOTICE THAT THIS OPENING WAS AVAILABLE?
A A COUPLE OF ACQUAINTANCES, ONE ACQUAINTANCE TOLD ME ABOUT IT. BUT I SAW IT ALSO IN THE NEWSPAPER.
SENATOR SALEEBY: THANK YOU VERY MUCH.

1. Edna Page Anderson

Home Address: Business Address:

827 Wildwood Ave. 827 Wildwood Ave.

Columbia, SC 29203 Columbia, SC 29203

2. She was born in Lake View, South Carolina on August 18, 1942. She is presently 49 years old.

Social Security Number: ***-**-****

4. She was married to Russell H. Anderson on September 28, 1973.

6. She attended Winthrop College, Rock Hill, SC; B.S. Education (Home Economics); 1959-1963; Winthrop College; M.S. Education (Home Economics); 1965-1966; The Pennsylvania State University; Ph.D. Education; 1971-1976. Dr. Anderson also has taken courses from several other colleges/universities, including Iowa State University, The University of Arizona, The University of Minnesota, and South Dakota State University; (No degree sought from these institutions).

7. She is a member of Mini Grant Committee - City of Columbia; appointed by City Council; December 4, 1991; term expires December 31, 1992.

8. Civic, charitable, religious, educational, social and fraternal organizations: American Association of University Women; American Council on Education National Identification program for the Advancement of Women in Higher Education Administration (ACE-NIP); Advisory Committee, Department of Home Economics, Clemson University; Advocates for Women on Boards and Commissions (SC); American Home Economics Association; American Vocational Association; Association of Administrators of Home Economics; Association for Supervision and Curriculum Development; Association of Women in Development (International organization); Association for Vocational Education Research; Brookings Chamber of Commerce (Brookings, SD); Brookings Women's Center (Brookings, SD); Coalition of Family Organizations; Country Women of the World; Delta Kappa Gamma (Honor Society for Women in Education); First Lutheran Church Women (Brookings, SD); Home Economics Education Association; Institute of Food Technologists, Great Plains Subsection of Minnesota Chapter; International Federation of Home Economics; Kappa Omicron Nu (Home Economics Honor Society); Little Book Club (Columbia, SC); National Association of Teacher Educators of Vocational home Economics; National Council of Administrators of Home Economics; Nutrition Council of South Dakota; Omicron Nu (Honor Society for Home Economics); Phi Kappa Phi (National Honor Society to Advance Learning); Phi Upsilon Omicron (Honor Society for Home Economics); Seminary Ridge Neighborhood Association (Columbia, SC); SC Association for Vocational Home Economics Teachers; SC Chapter and Columbia Branch of American Association of University Women; SC Home Economics Association; SC Vocational Association; South Dakota Advocacy Network for Women; South Dakota Association for Vocational Home Economics Teachers; South Dakota Home Economics Association; South Dakota Vocational Association; Toastmasters International, Columbia 2500 Chapter, Columbia, SC; United Dairy Industries of South Dakota (Board Member); Women of the Evangelical Lutheran Church in America

13. She is presently an Education Consultant (self employed). She has contracted to do work for a state agency. She has also worked on a World Bank Contract.

21. Dr. Anderson wants to become more involved in state government. She feels in addition to having the time, energy and desire to serve, she has educational and administrative background in Consumer Affairs.

22. Five (5) letters of recommendation:

(a) Attie C. May

6506 Satchel Ford Road, Columbia, SC 29206

(b) Robert A. Wilbur, Sr.

875 Gardendale Drive, Columbia, SC 29210

(c) Robert L. and Hilda G. Stephens

Route 2, Box 251, Dillon, SC 29536

(d) Dr. Amy Clark

P.O. Box 82, Pelzer, SC 29669

(e) William J. Nates, Asst. VP and Branch Manager

First Citizens Bank

2621 N. Main Street, Columbia, SC 29201

MR. GARRISON: EDNA PAGE ANDERSON.
MS. EDNA PAGE ANDERSON - EXAMINATION BY MR. GARRISON:
Q MS. ANDERSON, YOU RESIDE IN COLUMBIA?
A THAT'S CORRECT.
Q AND YOU FILED A NOTICE OF INTENT TO SEEK ELECTION FOR THE COMMISSION ON CONSUMER AFFAIRS, VACANCY NUMBER THREE ON THAT COMMISSION?
A YES, I DID.
Q WHAT'S YOUR OCCUPATION, MS. ANDERSON?
A I'M AN EDUCATION CONSULTANT.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO, I HAVE NOT.
Q DO YOU RECEIVE ANY INCOME FROM ANY SOURCES SUCH AS STOCKS AND BONDS, OTHER THAN YOUR EMPLOYMENT?
A A SMALL AMOUNT OF INCOME FROM A PUBLIC UTILITY, PUBLIC BOND IN SOUTH DAKOTA.
Q DO ANY OF YOUR BUSINESSES HAVE CONTRACTS WITH THE STATE OR FEDERAL GOVERNMENT?
A I HAVE HAD A CONTRACT WITH THE STATE GOVERNMENT, WITH THE STATE DEPARTMENT OF EDUCATION, OCCUPATIONAL DIVISION.
Q WHAT WAS THE NATURE OF THAT CONTRACT?
A I PREPARED TWO REQUESTS FOR PROPOSALS FOR ADMINISTRATORS, SCHOOL ADMINISTRATORS IN SOUTH CAROLINA.
Q DO YOU HAVE ANY BUSINESS OBLIGATIONS THAT WOULD PROHIBIT YOU FROM ATTENDING MEETINGS AND PUTTING IN THE NECESSARY TIME TO SERVE ON THIS COMMISSION?
A NO, I DO NOT.
Q DO YOU OR ANY MEMBER OF YOUR FAMILY HAVE ANY BUSINESS INTERESTS THAT WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS OFFICE?
A NO.
Q ARE YOU OR ANY MEMBER OF YOUR IMMEDIATE FAMILY RELATED TO ANYONE AFFILIATED WITH THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO.
Q PLEASE ANSWER ANY QUESTIONS THAT THE CHAIR OR ANY MEMBERS OF THE COMMITTEE HAVE FOR YOU, PLEASE.
MR. BROWN: HOW DID YOU FIND OUT ABOUT IT?
A I FOUND OUT ABOUT IT THROUGH THE COLUMBIA BRANCH OF THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN. I BELONG TO THAT GROUP.
SENATOR COURSON: DR. BARBARA MOXON.
A YES, SHE BELONGS ... SHE'S AN OFFICER IN OUR GROUP, YES.
SENATOR SALEEBY: I SEE YOU'VE BEEN PRETTY ACTIVE COMING FROM LAKEVIEW, SOUTH CAROLINA.
A YES, SIR.
SENATOR SALEEBY: YOU ENDED UP ALL OVER THE WORLD, IT LOOKS LIKE.
A WELL, A FEW PARTS.
SENATOR SALEEBY: YOU'VE BEEN PRETTY ACTIVE, THOUGH.
A YES, SIR, I HAVE.
SENATOR SALEEBY: DO ANY OTHER MEMBERS HAVE ANY QUESTIONS? THANK YOU SO MUCH.
A THANK YOU.

1. Lillian C. Bloom

Home Address:

2207 Wade Hampton Blvd.

Apartment C-205, Greenville, SC 29615

2. She was born in New York, New York, on November 12, 1920. She is presently 71 years old.

Social Security Number: ***-**-****

4. She was married to Jack L. Bloom on October 19, 1963.

6. She attended Hunter College; A.B. (1941); New York City
She also attended New York University; M.A. (1952); New York City.

8. Civic, charitable, religious, educational, social and fraternal organizations: Greenville Free Medical Clinic, Board Member (1987-1990); Greenville Chapter American Red Cross, Board Member Secretary (1990-present); SC Appalachian Council of Governments, Member, Area Advisory Council on Aging (1988-present); Greenville Literacy Association, Member, Tutor (1988-present); Mental Health Association, Greenville County, Board Member (1982-1988); Y.W.C.A., Member, Public Policy Committee (1990-present); Congregation Beth ISRAEL, Board Member (1985-1989); Greenville Sechin, National Council of Jewish Women, Board Member (1965-present).

21. Ms. Bloom stated in her application that she has always been interested in the public good having participated actively in many volunteer services. Serving on the Consumer Affairs Commission would be most challenging and she believes her broad based interests would permit her to make a contribution.

22. Six (6) letters of recommendation:

(a) Wayne Brennessel, Chapter Manager

American Red Cross, Greenville County Chapter

P.O. Box 9035, Greenville, SC 29604

(b) Bessie M. Lee, Exec. Director

Greenville Literacy Association, Inc.

301 University Ridge, Suite 5400

Greenville, SC 29601-3673

(c) Mrs. Jo Bell

401 W. Faris Road, Greenville, SC 29605

(d) Robert L. Dreyfus

10 Stone Lake Court, Greenville, SC 29609

(e) Ms. Joanne Montaque

64 Bent Oak, Greer, SC 29650

(f) Kelly B. Kowalski, Consumer Loan Officer

The First Savings Bank

Wade Hampton Office, Greenville, SC 29615

(g) Joanne E. Batson, Exec. Director

Young Women's Christian Association

700 Augusta Street, Greenville, SC 29605

(h) Jane P. Bessinger, Exec. Director

Greenville Free Medical Clinic, Inc.

P.O. Box 8993, Greenville, SC 29604

MR. GARRISON: MS. LILLIAN C. BLOOM.

MS. LILLIAN C. BLOOM - EXAMINATION BY MR. GARRISON:
Q MS. BLOOM, YOU RESIDE IN GREENVILLE, SOUTH CAROLINA?
A I DO.
Q AND YOU HAVE FILED A NOTICE OF INTENT TO SEEK ELECTION FOR VACANCY NUMBER THREE ON THE COMMISSION ON CONSUMER AFFAIRS?
A YES, I HAVE.
Q WHAT'S YOUR OCCUPATION?
A I'M RETIRED.
Q WHAT WAS YOUR OCCUPATION BEFORE YOU RETIRED?
A OH, I'VE HAD SEVERAL CAREERS. I WAS A MEDICAL RECORDS LIBRARIAN, SOCIAL WORKER, I WAS A TEACHER ON AND OFF.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO, I HAVEN'T.
Q DO YOU RECEIVE ANY INCOME FROM ANY SOURCES, SUCH AS STOCK OR BONDS, OTHER THAN YOUR EMPLOYMENT?
A STOCKS AND BONDS.
Q COULD YOU TELL THE COMMITTEE WHAT STOCKS AND BONDS YOU HAVE?
A I HAVE SOME MUNICIPAL BONDS, I HAVE SOME UTILITY BONDS. WOULD YOU LIKE ME TO NAME THE UTILITY BONDS THAT I HAVE? DUKE POWER, CAROLINA POWER AND LIGHT, SCANA, BELLSOUTH.
Q YES, MA'AM. THAT'S FINE.
SENATOR COURSON: MR. CHAIRMAN, I THINK IF THE QUESTIONING IS GOING TO CONTINUE ALONG THOSE LINES, WE OUGHT TO INTERVIEW EACH INDIVIDUAL SEPARATELY.
SENATOR SALEEBY: THAT'S FINE.
SENATOR COURSON: PLUS, I THINK IT WOULD BE UNFAIR TO THOSE TO THOSE WHO HAVE ALREADY APPEARED BEFORE THE REST OF THEM TO HAVE THAT OPPORTUNITY TO BE ...
SENATOR SALEEBY: WE'RE JUST BEING KIND OF GENERAL, JUST TO MAKE SURE THERE'S NO CONFLICTS OF INTEREST. SO, IF YOU FEEL LIKE THOSE QUESTIONS ABOUT WHERE YOUR INCOME COMES FROM ...
REPRESENTATIVE WHIPPER: IT COULD BE REPHRASE SO THAT IT WOULD NOT HAVE TO BE LISTED, JUST ASKED IF THERE IS THAT CONFLICT.
MR. GARRISON: MR. CHAIRMAN, I APOLOGIZE. THE RESPONSES FROM THE OTHER MEMBERS, I DIDN'T THINK THEY INDICATED THAT THEY HAD ANY BONDS OR IT APPEARED TO ME THAT THEY ANSWERED WHAT BONDS THEY HAD. AND I APOLOGIZE IF THAT QUESTION WAS ASKED INAPPROPRIATELY.
SENATOR SALEEBY: LET ME JUST ASK IT THIS WAY. DO YOU HAVE ANY INCOME FROM WHATEVER SOURCE IT MIGHT BE THAT MIGHT EVER PUT YOU INTO POSITION OF A CONFLICT IF THE CONSUMER AFFAIRS OFFICE ... YOU SEE, THEY REPRESENT THE CITIZEN BEFORE THE PUBLIC SERVICE COMMISSION ON RATE INCREASES. THEY REPRESENT THE CONSUMERS BEFORE THE INSURANCE DEPARTMENT INVOLVING INSURANCE COMPANIES. WOULD YOUR INCOME BE OF SUCH A NATURE THAT THAT MIGHT CREATE A CONFLICT ON YOUR PART; THAT'S WHAT CONCERNS THE ...
A NO.
SENATOR SALEEBY: YOU CAN UNDERSTAND WHY WE WOULDN'T WANT SOMEBODY WITH $10 MILLION WORTH OF, SAY, SCANA STOCK TO SERVE ON ... OR BELLSOUTH TO SERVE.
A NO. I WOULD HARDLY BE IN THAT CATEGORY.
SENATOR SALEEBY: OKAY. I SEE THAT YOU LISTED THAT IN YOUR STATEMENT.
A I HAVE.
SENATOR SALEEBY: IF YOU'LL REFER TO YOUR FILE ON MS. BLOOM, YOU'LL SEE ...
A I THINK I NEGLECTED TO INDICATE BELLSOUTH.
SENATOR SALEEBY: THAT'S FINE.
Q MS. BLOOM, DO YOU OR DO ANY BUSINESSES THAT YOU HAVE CONTACT WITH HAVE ANY STATE OR FEDERAL GOVERNMENT CONTRACTS?
A NO.
Q DO YOU HAVE ANY PREVIOUS OBLIGATIONS THAT WILL PROHIBIT YOU FROM ATTENDING MEETINGS OR PUTTING THE NECESSARY TIME AND WORK ON THE COMMISSION?
A NO, I DON'T.
Q DO YOU OR ANY MEMBER OF YOUR FAMILY HAVE ANY BUSINESS INTERESTS THAT YOU FEEL WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS POSITION?
A NONE WHATSOEVER.
Q ARE ANY OF THE MEMBER OF YOUR IMMEDIATE FAMILY RELATED TO ANYONE AFFILIATED WITH THE OFFICE OF CONSUMER AFFAIRS?
A NO.
Q COULD YOU PLEASE ANSWER ANY QUESTIONS THE CHAIRMAN AND ANY MEMBERS MAY HAVE FOR YOU?
SENATOR SALEEBY: ARE THERE ANY QUESTIONS FROM THE MEMBERS OF THE COMMITTEE?
REPRESENTATIVE BROWN: HOW DID YOU FIND OUT ABOUT IT?
A THROUGH THE NEWSPAPER. I ALSO SIT ON A LITTLE BOARD THAT IS TRYING TO GET WOMEN ON COMMISSION BOARDS. SO, WHEN THERE IS A VACANCY, THEY CALL IT TO OUR ATTENTION. BUT I ACTUALLY SAW THIS FIRST IN THE NEWSPAPER.
REPRESENTATIVE BROWN: GREENVILLE NEWS?
A YES.
SENATOR SALEEBY: THANK YOU VERY MUCH.
MR. GARRISON: MR. CHAIRMAN, MR. JOSEPH LYLES WAS GRANTED AN EXEMPTION FROM BEING HERE TODAY BECAUSE OF HIS VACATION.

1. Joseph S. Lyles

Home Address: Business Address:

98 Carpin Drive P.O. Box 10383

Greenville, SC 29611 Greenville, SC 29603

2. He was born in Winnsboro, South Carolina, on January 17, 1957. He is presently 35 years old.

Social Security Number: ***-**-****

3. He was married to Carole Lynne Howard on December 29, 1984. He has two children: Jenna Francis Lyles, age 4 and J. Kitt H. Lyles, age 2.

5. Military Service: United State Naval Reserves; active duty (September 1984 to September 1987). Rank: Lt.,0-3; Serial # ***-**-****. Inactive duty: Individual Ready Reserves (September 1987 to February 1992). Present status: Honorable discharge.

6. He attended Furman University from 1975 to 1977, left there to attend Western Washington University; B.S. degree in Environmental Studies; 1979. He also attended the University of South Carolina School of Law: 1980-1983, J.D.

8. Civic, charitable, religious, educational, social and fraternal organizations: Mayors Task Force for a Cleaner Greenville; St. Mary's Supper Club; Greenville County Bar Association; Greenville County Young Lawyers Association; South Carolina Trial Lawyers; American Trial Lawyers; American Bar Association; Sierra Club; South Carolina Forest Watch; South Carolina Wildlife Federation; American Rivers Association; Trout Unlimited

15. He is an Associate with the law firm of: Howard, Howard, Francis, & Reid; general practice.

22. Five (5) letters of recommendation:

(a) Frank S. Holleman, III

Wyche, Burgess, Freeman, and Parham, P.A.

P.O. Box 728, Greenville, SC 29602

(b) Thomas H. White, IV

Whitney, White and Diamaduros

P.O. Box 266, Union, SC 29379

(c) Christy Hill

First Union National Bank of SC

Greenville, SC 29602

(d) Lehman A. Moseley, Jr.

500 Poinsett Hwy.

Greenville, SC 29609

(e) W. Thomas Sprott, Jr.

McDonald, Sprott, Spong, and Clarkson

P.O. Drawer 179, Winnsboro, SC 29180

The undersigned deponent, being first sworn, does solemnly testify as follows:

Greetings, Mr. Chairman and Honorable Committee Members:

The South Carolina Consumer Affairs Commission governs one of the more effective agencies in the State. The Commission, through its staff, has a history of providing excellent representation of the consumer in rate hearings and related proceedings. Our Consumer Advocate, Steve Hamm, has built a national reputation for effectiveness. He has provided leadership in the area of consumer protection at a time when the Federal Government has been reducing its regulatory role.

Therefore, I would feel honored to sit on the Commission and contribute to its ongoing success. I believe the commission should continue to actively protect and promote the interests of the consumer. Because of the rapidly changing world, consumers are constantly faced with new products and services, some valuable, some valueless, and some actually dangerous. The Commission must insure that its staff stays abreast of these changes. I feel I can make a contribution to my State By working to help the Commission do this.

Also, the continuing emphasis on reducing government regulation at the Federal level will make the role of South Carolina Consumer Affairs Commission increasingly important. As federal protections for the consumer decrease, the State will have to increase its role.

I feel I would bring significant strength to the Commission because I am familiar with the day to day problems faced by consumers in this State. I have become aware of these consumer problems through my practice as an attorney. I encounter people every day who have consumer problems, and I have a good grasp of the laws which affect consumer transactions.

My background in the environmental protection field would be valuable to the Commission. Issues of environmental protection often intersect and mesh with consumer protection issues today. For example, product manufacturers are jumping on the band wagon to claim that their products are friendly to the environment. However, there is increasing concern that these claims may be inflated, misleading, or false.

With my undergraduate degree in environmental studies and my longstanding involvement in conservation organizations and issues, I can bring an understanding of environmental protection to the Commission's decision making process.

Finally, I feel that I have had a varied and diverse life experience to date. I believe that my background makes me a good candidate for a seat on the Consumer Affairs Commission. Thank you for your time and consideration.

Signed and sworn to this 5th day of May, 1992

/s/Joseph Sloan Lyles

MR. GARRISON: MARILYN HARRIS.

1. Marilyn Harris

Home Address: Business Address:

311 Alder Drive 1521 Laurens Road

Simpsonville, SC 29681-3501 Greenville, SC 29607-9998

2. She was born in New Jersey on December 7, 1961. She is presently 30 years old.

Social Security Number: ***-**-****

4. She was married to Mark Andrew Harris on September 29, 1984. She has three children: Bridgette Lynne Hasinec, Brianne Leigh Harris, and Zachary Dylan Andrew Harris.

6. She is enrolled at Greenville Technical College as a special student, currently taking conversational Spanish.

8. Civic, charitable, religious, educational, social and fraternal organizations: Member of Bryson Middle School PTA (currently); Member of Plain Elementary School PTA (currently); Member of Messiah Lutheran Church (currently); Member of MBP Committee (currently); Member of National Association of Postal Supv. (currently); Member of Women's Advisory Committee (former)

21. Mrs. Harris stated in her application she presently holds the position of Supervisor, Mails and Delivery, with the United States Postal Service. She is an active member in her children's PTA organizations. She is a person of ethical, moral, and loyal character.

22. Five (5) letters of recommendation:

(a) Helen Brooks

P.O. Box 448, Columbia, SC 29202

(b) William Johnson

100 E. Orchard Park Drive, Greenville, SC 29615-9998

(c) Lawrence Jordan

600 W. Washington Street, Greenville, SC 29602-9998

(d) Pastor John Yost

101 Log Shoals Road, Mauldin, SC 29662

(e) Joseph Klein

600 D. Archdale, Sumter, SC 29150

MS. MARILYN HARRIS - EXAMINATION BY MR. GARRISON:
Q MS. HARRIS, YOU'RE FROM SIMPSONVILLE?
A YES, SIR.
Q AND YOU FILED NOTICE OF INTENT TO SEEK ELECTION TO VACANCY NUMBER FOUR ON THE CONSUMER AFFAIRS COMMISSION?
A YES.
Q WHAT'S YOUR OCCUPATION?
A I'M A SUPERVISOR OF MAILS AND DELIVERY WITH THE POST OFFICE.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO.
Q DO YOU RECEIVE ANY INCOME FROM ANY STOCKS AND BONDS THAT YOU FEEL WOULD AFFECT YOUR JUDGMENT IF YOU WORKING FOR THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO.
Q DO ANY OF YOUR BUSINESSES HAVE CONTRACTS WITH STATE OR FEDERAL GOVERNMENT AGENCIES?
A NO.
Q DO YOU HAVE ANY BUSINESS OBLIGATIONS THAT WOULD PROHIBIT YOU FROM ATTENDING MEETINGS OR PUTTING IN THE NECESSARY TIME TO SERVE ON THE BOARD?
A NO, SIR.
Q DO YOU OR ANY MEMBER OF YOUR FAMILY HAVE ANY BUSINESS INTERESTS THAT WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS POSITION?
A NO, SIR.
Q ARE YOU OR ANY MEMBER OF YOUR IMMEDIATE FAMILY RELATED TO ANYONE AFFILIATED WITH THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO.
Q WOULD YOU PLEASE ANSWER ANY QUESTIONS THAT ANY OF THE MEMBERS OF THE COMMITTEE HAVE FOR YOU?
REPRESENTATIVE BROWN: HOW DID YOU FIND OUT ABOUT IT?
A I READ ABOUT IT IN THE GREENVILLE NEWS.
SENATOR SALEEBY: ANY OTHER QUESTIONS?

MR. GARRISON: MS. BARBARA LEAGUE.

1. Barbara B. League

Home Address: Business Address:

823 Altamont Road 608 Furman Road

Paris Mountain P.O. Box 3626

Greenville, SC 29609-4582 Greenville, SC 29608-3626

2. She was born in Laurens, South Carolina, on September 19, 1940. She is presently 51 years old.

Social Security Number: ***-**-****.

4. She was married to G. Frank League, III on December 29, 1962. She has three children: George F. League, IV, age 28 (G.F. League Manufacturing Co., Inc.); D. Fraser League, age 27, (G.F. League Manufacturing Co., Inc.); and W. Claude League, age 24, (Graduated 12/91 U.S.C. and Interviewing)

6. She completed a Two Year Administrative Management Business Course from Winthrop College in 1960. In 1967-1985 she attended Greenville Technical College and Furman University taking: Business Courses, Management Courses, OSHA and EEOC Courses and Seminars, Manufacturing and Plant Operation, Supervisory Management, etc.

8. Civic, charitable, religious, educational, social and fraternal organizations: St. Mary's School Board; Centre Stage Theatre; River Place Festival (Non Profit Chair); YWCA (Finance Chair, Personnel Chair, Nominating Committee); Roundtowners (1st Vice President, President, Advisory Council); National Federation of Independent Business South Carolina Advisory Council; Greater Greenville Chamber of Commerce (Executive Committee, Small Business Service Board-Chair, Economic Development Board, Leadership Greenville Board of Regents, Business and Industry Board, Public Education Board, Chairman's Task Force, Intercity Visit Committee); Travelers Rest Area Council (Education Committee Chair, Library Task Force); Greenville Technical College (Management Advisory Board, Chair); Sertoma Club of Greenville (Director of Retention, Vice President of Membership, Vice President of Public Relations, Vice President Inter Clubs); St. Francis Hospital Development Council (Business & Professional Board, President's Breakfast-Chair); Freedom Weekend Aloft; 1st Night Greenville Festival (Visual Arts Chair); Metropolitan Arts Council (Personnel Chair, Executive Search Chair, Executive Committee); Coalition of Women on Boards & Commissions; School District of Greenville County Business-education Partnership; Who's Who of Women Executive; National Association of Manufacturers; National Association of Female Executives; South Carolina Chamber of Commerce; I-85 Business Belt Chamber; 300 for Greenville; Greenville Professional Women's Forum; S.C. Local Option Sales Tax Task Force; City of Greenville Acomodations Tax Committee; Greenville County Library Executive Search Committee; South Carolina Commission of the Arts; The Alliance for Quality Education; South Carolina Theatre Association; Greenville Fine Arts Center; St. Mary's Catholic Church; Winthrop College Alumni; The Emerys Foundation; The Saint's Society; Colonial Club; The Altamont Club; Fall for Greenville; The Palmetto Ski Club; Freedom Weekend Aloft; Upstate Visual Art Alliance; Centre Stage-South Carolina; The Greenville Literacy Association; The Greenville County Museum of Art; Piedmont Council for Prevention of Child Abuse; Greater Greenville Chamber of Commerce (Small Business Person of the Year Finalist, Special Events Chair Appreciation Award, Department Board Chair Appreciation Award, Board of Directors Appreciation Award, Executive Board Appreciation Award); Greenville Sertoma Club (Outstanding Service Award, Gem Award, Sertoman of the Year Award, Centurian Award, Tribune Award, Senator I Award, Senator II Award); Roundtowners (Outstanding Service Award, Roundtowner of the Year Award); Who's Who of Women Executives; School District of Greenville County Business-Education Partnership Award; National Republican Congressional Committee (Sponsor #001064379 DH 3591, active sponsor since 1981 in good standing, generously supporting the 1992 National Campaign to elect a republican majority in the U.S. Congress); National Federation of Republican Women; National Federation of Independent Business (South Carolina Guardian Council member since 1987, quarterly meetings in Columbia to focus on issues affecting small businesses and visit with members of the House and Senate); South Carolina Republican Party (Silver Elephant Club Member); South Carolina Federation of Republican Women; Upstate Republican Women's Club - Charter member in good standing,(support local and state Republican candidates financially $25 to $250 and by volunteering in their campaigns as much as my time will allow); Greenville County Republican Party (Bronze Elephant Club Member); Greenville Coalition for Women on Boards and Commissions (Active member since 1990), Promote Qualified Responsible Women's more active involvement on Boards and Commission by making them aware of available openings and to Educate them to have a better grasp on major problems facing us today.

21. Ms. League is currently serving on the S.C. Council of the National Federation of Independent Businesses. This is a position she has held for five years and if it would be considered a "conflict of interest", she would resign her seat and give someone else the opportunity to replace me in that position.

22. Five (5) letters of recommendation:

Mr. C.C. Hutto, Jr. Mr. Max Heller

SCNB 220 North Main Street

P.O. Box 969 Suite #315

Greenville, SC 29602-0969 Greenville, SC 29601

Ms. Susan B. Hoag Ms. Deb Sofield

The First Savings Bank Perimeter Designs

P.O Box 408 P.O. Box 5353

Greenville, SC 29602-0408 Greenville, SC 29606-5353

Mr. Knox H. White

Haynsworth, Marion, McKay, Guerard

P.O. Box 2048

Greenville, SC 29602-2048

MS. BARBARA LEAGUE - EXAMINATION BY MR. GARRISON:
Q MS. LEAGUE, YOU'RE FROM GREENVILLE, SOUTH CAROLINA?
A YES.
Q AND YOU FILED A NOTICE OF INTENT TO SEEK ELECTION TO VACANCY NUMBER FOUR ON THE COMMISSION OF CONSUMER AFFAIRS?
A YES.
Q WHAT'S YOUR OCCUPATION?
A I'M EXECUTIVE VICE PRESIDENT OF G. F. LEAGUE MANUFACTURING IN GREENVILLE.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO.
Q DO YOU OWN ANY STOCKS OR BONDS THAT YOU FEEL WOULD AFFECT YOUR JUDGMENT IN THE ACTIONS ON THE CONSUMER AFFAIRS COMMISSION?
A NO.
Q DO ANY OF YOUR BUSINESSES HAVE CONTRACTS WITH THE STATE OR FEDERAL GOVERNMENT?
A NO.
Q DO YOU HAVE ANY BUSINESS OBLIGATIONS THAT WOULD PROHIBIT YOU FROM ATTENDING MEETINGS AND PUTTING IN THE NECESSARY TIME TO SERVE ON THE BOARD?
A NO.
Q DO YOU OR ANY MEMBER OF YOUR FAMILY HAVE ANY BUSINESS INTERESTS THAT WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS OFFICE?
A NO.
Q ARE YOU OR ANY MEMBER OF YOUR IMMEDIATE FAMILY RELATED TO ANYONE ASSOCIATED WITH THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO.
Q WOULD YOU ANSWER ANY QUESTIONS THAT THE CHAIRMAN AND ANY MEMBERS OF THE COMMITTEE HAVE FOR YOU, PLEASE.
A YES.
REPRESENTATIVE BROWN: HOW DID YOU FIND OUT?
A WELL, AS A MATTER OF FACT, BEFORE THE GREENVILLE NEWS, I WAS CONTACTED BY A MEMBER OF THE SOUTH CAROLINA COMMISSION ON WOMEN. THEN I SAW IT IN THE GREENVILLE NEWS.
SENATOR SALEEBY: ANY OTHER QUESTIONS OF ANY OF THE BOARD MEMBERS?
REPRESENTATIVE WHIPPER: I NOTICE THAT YOU HAVE ... YOU'RE QUITE ACTIVE.
A THAT CAME FROM EMPTY NEST SYNDROME.
REPRESENTATIVE WHIPPER: I WAS JUST WONDERING ABOUT THE TIME THAT IT WOULD TAKE TO SERVE ON THIS BOARD, DO YOU THINK THAT YOU WILL BE ABLE TO ...
A YES. IF I COMMIT TO ANY ORGANIZATION, THEN I WILL ATTEND MEETINGS.
REPRESENTATIVE BROWN: THERE ARE SOME STRONG RECOMMENDATIONS IN HERE. MAX HELLER AND KNOX WHITE.
A THEY'RE VERY GOOD FRIENDS.
SENATOR SALEEBY: IF THERE ARE NO FURTHER QUESTIONS, THANK YOU VERY MUCH.
A THANK YOU.

MR. GARRISON: MR. CHAIRMAN, THE LAST CANDIDATE WILL BE MR. RICHARD MOORE.

1. Richard C. Moore

Home Address: Business Address:

P.O. Box 606 P.O. Box 10023

Simpsonville, SC 29681 Greenville, SC 29603

2. He was born in Greenville, South Carolina, on September 30, 1953. He is presently 38 years old.

Social Security Number: ***-**-****

4. Family Status: Single

6. He attended the University of South Carolina; B.A. (1971-1975); University of South Carolina Law School; J.D. (1975-1978).

8. Civic, charitable, religious, educational, social and fraternal organizations: Greenville Track Club; Golden Strip Runners Club; Simpsonville Rotary Club; Simpsonville Chamber of Commerce; Simpsonville First Baptist Church.

15. He is a sole practitioner of Law Firm (Richard C. Moore Attorney at Law, P.C.) He has been in practice for 13-1/2 years. 3-1/2 years with Riley & Riley and 10 years with Yarborough & Moore. He entered sole practice February 1992.

22. Five (5) letters of recommendation:

(a) James T. Miller, IV

James T. Miller and Associates

P.O. Box 9165, Greenville, SC 29604

(b) Richard R. Hilton

The Palmetto Bank

P.O. Box 728, Simpsonville, SC 29681

(c) Jennifer G. Black

45 Cammer Avenue, Greenville, SC 29601

(d) Linda Hendrix

105 Stone Hedge, Easley, SC 29642

(e) Carole D. Moede, Esq.

Greenville, SC 29603

MR. RICHARD MOORE - EXAMINATION BY MR. GARRISON:
Q MR. MOORE, YOU'RE FROM SIMPSONVILLE?
A THAT'S CORRECT.
Q YOU FILED NOTICE OF INTENT TO SEEK ELECTION TO VACANCY NUMBER FOUR ON THE COMMISSION OF CONSUMER AFFAIRS?
A YES, SIR.
Q AND YOU CURRENTLY HOLD THAT SEAT?
A YES, SIR.
Q WHAT'S YOUR OCCUPATION?
A I'M AN ATTORNEY.
Q HAVE YOU EVER BEEN DISCHARGED FROM ANY EMPLOYMENT?
A NO, SIR.
Q DO YOU HAVE ANY STOCKS OR BONDS OR ANY INTEREST IN ANY COMPANIES THAT YOU FEEL AFFECT OR COULD AFFECT YOUR ACTIONS ON THE COMMISSION?
A NO, SIR.
Q DOES YOUR BUSINESS HAVE ANY CONTRACTS WITH THE STATE OR FEDERAL GOVERNMENT?
A NO, SIR.
Q DO YOU HAVE ANY BUSINESS OBLIGATIONS THAT PROHIBIT YOU FROM ATTENDING MEETINGS OR PUTTING IN THE NECESSARY TIME, HAS THAT BEEN A PROBLEM FOR YOU?
A NO, SIR.
Q DO YOU HAVE ANY MEMBER OF YOUR FAMILY THAT HAS A BUSINESS INTEREST THAT WOULD PRESENT A CONFLICT OF INTEREST IN YOUR HOLDING THIS OFFICE?
A NO, SIR.
Q AND OBVIOUSLY YOU'RE CONNECTED WITH THE DEPARTMENT OF CONSUMER AFFAIRS, AND OTHER FAMILY MEMBERS THAT HAVE ANY CONNECTION WITH THE DEPARTMENT OF CONSUMER AFFAIRS?
A NO, SIR.
Q PLEASE ANSWER ANY QUESTIONS THE CHAIRMAN OR ANY OTHER MEMBERS OF THE COMMITTEE HAVE FOR YOU.
SENATOR SALEEBY: MR. BROWN, I DON'T KNOW IF YOUR QUESTION WOULD APPLY IN THIS CASE.
A I DID SEE IT IN THE GREENVILLE NEWS, THOUGH.
SENATOR SALEEBY: HOW LONG HAVE YOU SERVED?
A TEN YEARS, SIR.
SENATOR SALEEBY: ANY OTHER QUESTIONS? THANK YOU SO MUCH. THANK ALL OF YOU FOR COMING, AND THE STAFF WILL NOTIFY YOU SOMETIME SOON BECAUSE THE ELECTION IS SCHEDULED TENTATIVELY FOR THE 27TH OF MAY. THAT DOESN'T MEAN THAT IT MIGHT NOT GET CAUGHT UP IN THE LEGISLATIVE PROCESS AND IT WON'T BE ON THE 27TH, BUT THAT'S WHAT WE'RE SHOOTING FOR. AND YOU CANNOT SEEK A PLEDGE OF SUPPORT UNTIL THE COMMITTEE HAS NOTIFIED YOU THAT YOU'VE BEEN APPROVED. THAT WOULD BE A VIOLATION OF BOTH SENATE AND HOUSE RULES TO DO SO. AFTER THAT, I GUESS EVERYTHING'S FAIR. THANK ALL OF YOU FOR COMING. AND I REALLY APPRECIATE YOU LADIES GETTING ORGANIZED AND TAKING OVER THE GOVERNMENT. THANK YOU VERY MUCH.

(THE CANDIDATES LEFT THE HEARING ROOM)

MS. MCQUEENEY: WE NEED TO PUT IN THE RECORD JOE LYLES' WRITTEN TESTIMONY.
SENATOR SALEEBY: THAT WILL BE DONE.
MR. GARRISON: MR. CHAIRMAN, IF IT MEETS WITH THE COMMITTEE'S APPROVAL, WE WILL DRAFT A MEMO AND TAKE IT AROUND FOR EVERYONE WHO PARTICIPATED TO REVIEW AND SIGN ...
SENATOR SALEEBY: THANK ALL OF YOU.

Continuation of Hearing to review candidates for the South Carolina Consumer Affairs Commission, taken on the 21st day of May, 1992, in Room 207 of the Gressette Building, Columbia, South Carolina, before Margaret R. Richardson, Certified Court Reporter and Notary Public for the State of South Carolina

MR. CHAIRMAN: SENATOR MCGILL MADE A MOTION TO GO INTO EXECUTIVE SESSION, AND THE MOTION CARRIED.

MR. CHAIRMAN: THE CHAIR WILL NOW ENTERTAIN A MOTION THAT WE INTRODUCE A RESOLUTION SETTING MAY 27TH AT NOON FOR THE ELECTION OF MEMBERS TO THE CONSUMER AFFAIRS COMMISSION, AND AT THE SAME TIME I AM QUALIFYING ROBERT J. LEOPARD FOR SEAT ONE; SEAT THREE, EDNA PAGE ANDERSON, LILLIAN C. BLOOM, JOSEPH S. LYLES; FOR SEAT FOUR, MARILYN HARRIS AND BARBARA B. LEAGUE AND RICHARD C. MOORE.
REPRESENTATIVE BAILEY: SO MOVED.
MR. CHAIRMAN: ALL IN FAVOR, SAY AYE.

MR. CHAIRMAN: THAT CARRIES UNANIMOUSLY.
(THERE BEING NOTHING FURTHER, THE HEARING ENDED AT 10:15 A.M.)

Having completed the investigation as required by the Act, the committee, by this report, respectfully submits its findings to the members of the General Assembly for their consideration.

This committee has investigated each of the applicants, conducted a public hearing on May 12, 1992, and duly considered the legal qualifications of each of the applicants. Based thereon, the committee finds all of the nominees to be legally qualified as candidates for the South Carolina Consumer Affairs Commission.

Respectfully submitted,
/s/Edward E. Saleeby, Chairman /s/Rep. George H. Bailey
/s/Senator Nikki Setzler /s/Rep. Grady A. Brown
/s/Senator John E. Courson /s/Rep. Carole C. Wells
/s/Senator J. Yancey McGill /s/Rep. Lucille S. Whipper

(On motion of Senator SALEEBY, ordered printed in the Journal.)

The Annual Report of the Joint Legislative Committee on Aging was received and ordered printed in the House Journal of Friday, May 22, 1992.

The Annual Report of the Hazardous Waste Management Select Oversight Committee was received and ordered printed in the House Journal of Friday, May 22, 1992.

The Joint Insurance Study Committee created in 1989 by Act 37, repealing Act 612 of 1971, submits herewith a report of its recent studies, recommendations and activities.

SENATE MEMBERS:
/s/Senator Edward E. Saleeby
/s/Senator John C. Land, III
/s/Senator Glenn F. McConnell
/s/Senator Michael F. Mullinax
/s/Senator Thomas H. Pope, III

HOUSE MEMBERS:
/s/Representative James J. Bailey
/s/Representative Roland S. Corning
/s/Representative Joseph T. McElveen, Jr.
/s/Representative Richard M. Quinn, Jr.
/s/Representative John L. Scott

GOVERNOR'S APPOINTEES:
/s/Mr. Charles M. Potok
/s/Dr. S. Travis Pritchett
/s/Mr. Ronald D. Scheetz
/s/Mr. Frank S. Smith, Jr.
/s/Mr. Roland C. Young

EX OFFICIO MEMBER
/s/Commissioner John G. Richards
Chief Insurance Commissioner

The Joint Insurance Study Committee was created by Act 37, 1989, which amended Act 612, 1971 and Act 1161, 1974, to make a continuous study and investigation of all facets of the insurance industry and related laws including, but not limited to, the study of revisions to this state's insurance laws, and to the review of medical, automobile and property insurance premium rates so as to recommend appropriate statutory or regulatory controls. This study committee combined the Joint Legislative Automobile Liability Insurance Study Committee and The Insurance Law Study Committee and provides for its members, powers, duties, staff and expenses to be similar to that of the aforementioned study committees.

COMMITTEE LEGISLATION ENACTED IN 1991
NAIC RECOMMENDATIONS FOR ACCREDITATION

In 1988 the National Association of Insurance Commissioners began work on developing minimum standards for effective solvency regulation to ensure that all states had the essential statutes, regulations and regulatory resources necessary to police the insurance industry. In 1989, the NAIC formally adopted these financial regulatory standards and in 1990, instituted a certification program whereby each state's compliance with the standards would be evaluated by an independent review team. In June of 1991, the South Carolina Department of Insurance was accredited by the NAIC becoming the third state in the country to become accredited and thus recognized as having effective financial solvency regulation.

Seven NAIC accreditation bills, which were sponsored by the study committee in 1991, were incorporated into one bill - H. 3508, Act 13 of 1991. This massive piece of legislation included the following:

INSURERS' SUPERVISION, REHABILITATION & LIQUIDATION ACT

This bill governs delinquency proceedings against both domestic and foreign insurers doing business in South Carolina by deleting current provisions governing administrative supervision from Chapter 27 and adding a new Chapter 26, Administrative Supervision of Insurers, which contains the circumstances warranting the exercise of supervision, standards for the conduct of the insurer during supervision and delineating the duties and responsibilities of the commissioner during the supervision period by adding a provision that allows the commissioner, in his discretion, to apply the provisions of the act, as amended, to current delinquency proceedings by prohibiting the release of an insurer from delinquency proceedings unless all expenses of any guaranty association have been repaid, by allowing the application of the chapter to prepaid health care delivery plans, by requiring that the commissioner submit for court approval a plan for the continued operation of an insurance company which is appealing, without a stay, an order of liquidation.

RISK RETENTION AND PURCHASING GROUPS

The Federal Liability Risk Retention Act passed in 1981 and expanded in 1986, permitted the formation of risk retention groups and purchasing groups for the purpose of selling and buying liability insurance for their members. South Carolina adopted the federal act as Chapter 83 of Title 38. This bill amended that act by ensuring that risk retention groups are treated for purposes of financial examinations, just as insurers are, and by requiring that financial examinations of risk retention groups be conducted in accordance with the NAIC's examiner's handbook. This bill clarifies that risk purchasing groups may only purchase coverage from certain entities and provides that purchasing groups may only purchase insurance from a chartered risk retention group or a licensed insurer and eligible surplus lines insurer.

INSURANCE HOLDING COMPANY REGULATORY ACT

This act requires insurers which are members of holding company systems to register with the Commissioner and to make certain filings and disclosures of transactions. It also governs the acquisition of control of a domestic insurer by any person and requires certain information be furnished in connection with proposed acquisition; expands its scope by making its provisions applicable under certain circumstances to the acquisition of foreign insurers which are licensed to do business in South Carolina; establishes a competitive standard for the Commissioner to consider in determining if an acquisition of control should be approved; requires an insurer's registration statement to contain information concerning pledge of insurer's stock, or that of a subsidiary, for a loan to a member of the holding company system; contains technical clarification of existing law concerning the payment of extraordinary dividends by domestic insurers and requires that such a determination be made by reference to the insurer's surplus in regard to the policyholders reflected in the most recent annual statement.

CREDIT FOR REINSURANCE

Before this law was enacted all insurers doing business in South Carolina were required by law to set aside monies, known as reserves, for the business they wrote in the state. They were allowed to take a deduction from those required reserves for business ceded to certain reinsurers. A company could take credit against reserve requirements for business ceded to a reinsurer only if the reinsurer was licensed to transact business of insurance in South Carolina, or if the reinsurer met statutory requirements and was approved by the Commissioner to act as a reinsurer in the state. This bill added one more instance in which insurers could take credit for reinsurance ceded by establishing standards for insurers to be approved as "accredited reinsurers" if the reinsurer submits to the state's jurisdiction, submits to examination of its books and records, is a licensed insurer or reinsurer, pays a license fee, files an annual statement and an audited financial statement, and maintains a surplus of not less than $20 million.

INSURERS IN HAZARDOUS CONDITION

Before this law was enacted the Chief Insurance Commissioner had the authority to revoke or suspend the license of an insurer if it was in "hazardous" condition. This bill establishes standards which the Commissioner may consider in determining whether an insurer's condition is hazardous, such as adverse financial condition exams, insurer's asset portfolio mix, incompetent management and liquidity problems. It also gives the Commissioner the explicit authority to order that an insurer in hazardous or unsound condition take certain actions, such as reducing, limiting or suspending the volume of business written, suspending or limiting the declaration of a dividend, filing quarterly financial statements, and increasing its capital and surplus.

STANDARDS FOR INSURANCE COMPANY INVESTMENTS

Investments made by insurance companies to cover policyholder obligations and minimum capital and surplus requirements are subject to restrictions contained in the investment statutes. This bill would require that investment standards take into account stability, liquidity and diversification, provide that investments be valued in accordance with the values or standards promulgated by the NAIC, and if no such valuation exists, for example, for real property, certain stocks or bonds, other securities, etc. The bill establishes conservative valuation standards and authorizes that additional standards be promulgated and submitted to the General Assembly for consideration.

LIMITATION OF RISK PROVISION TO CAPTIVE INSURERS

Before this law was enacted an insurer was prohibited from assuming liability for any single risk in excess of 10% of its surplus to policyholders. This prevented an insurer from endangering its financial stability by exposing itself to significant liability on one risk. The Department of Insurance had historically applied this provision to all insurers. However, to clarify that this limitation on risk applied equally to captive insurers, this bill specifically provides that it is applicable to all insurers, including captive insurers. Additionally, the bill provides a definition of a captive insurer as an insurance company formed by its parent for the sole purpose of insuring the risks of the parent and its affiliates. The bill also defines a captive insurer as one formed by an organization which is owned by its members, and whose exclusive purpose would be to insure the risks of member organizations, group members and affiliates, or both.

CAPITAL AND SURPLUS NET WORTH REQUIREMENTS

This bill increases the minimum capital and surplus required to become licensed as an insurer in South Carolina and the net worth requirements to become licensed as a HMO. It gives the Commissioner the authority to require additional capital and surplus or net worth based on the nature of the business transacted. It requires that the initial capital and surplus of insurers and net worth of an HMO consist of cash or marketplace securities.

ASSESSMENT OF PROPERTY & CASUALTY GUARANTY ASSN. - H.3240, ACT 5

This bill provides additional powers to the Chief Insurance Commissioner on maximum assessment on Property and Guaranty Association members in case of emergencies such as bringing out-of-state adjusters into the state when Hugo hit South Carolina.

CONTINUING EDUCATION FOR LICENSING OF AGENTS - H.3320, ACT 141

This bill provides for biennial continuing education requirements for agents licensed to sell property and casualty insurance and to authorize the Chief Insurance Commissioner to promulgate regulations to implement these provisions.

JOINT RESOLUTION TO SPREAD HUGO LOSSES OVER 3 YEARS
H.3553, ACT 176

This bill spread the Reinsurance Facility losses caused by Hurricane Hugo, estimated to be $35 million, over a three year period.

FREE CESSION, UNIFORM FACILITY RATE, ELIMINATE PHYSICAL DAMAGE COVERAGE FROM FACILITY, AFFILIATED COMPANIES ALLOWED IN STATE, S.707, ACT 113

Due to the fact that fifty-two companies are no longer writing personal lines insurance in South Carolina, and have pulled out of the state, this bill was introduced as a product of a coalition of two independent agent associations, the direct writer agents, and the designated agents, with approval from the Department of Insurance and the Consumer Advocate. It was the hope of the study committee that passage of this piece of legislation will bring companies back in to the state to write personal lines and create competition between companies, easing the troubles that the agents were experiencing.

Before this law was enacted, companies would cede to the facility up to 35% of their business. The first part of the bill increased that limit by not counting towards the facility cap risks that do not qualify for a safe driver's discount. This part would sunset in two years. The second part of the bill eliminated the mandate to write physical damage coverage for insured who do not qualify for a safe driver's discount. This part becomes effective on October 1, 1992. The third part provided for a uniform facility rate for insureds who do not qualify for a safe driver's discount. The rate specified would be the current or the specific company's rate, whichever is higher. The last part of the legislation allows affiliated companies to charge different rates for coverage which they are not mandated by law to write (like physical damage coverage for drivers who do not qualify for the safe driver's discount).

RESOLUTION REGARDING MEDICAID ELIGIBILITY REQUIREMENTS, H.3227

This Concurrent Resolution directs the Health and Human Finance Commission to review the Medicaid eligibility requirements and determine the number of eligible Medicaid recipients who are denied benefits because of failure to comply with Medicaid procedural requirements. This resolution makes a statement that the uninsured population could be reduced if the number of eligible Medicaid recipients being denied benefits through procedural denials, who have fallen through the cracks, could receive benefits.

RESOLUTION TO INCREASE THE LEVEL OF CARE BY BOARDING AND NURSING HOMES, H.3226

Before this resolution was adopted, South Carolina had a patient classification system which resulted in over-utilization of hospital and nursing home facilities for patients needing less than acute care. By its adoption, a level of care for people who do not need acute nursing care was created.

RESOLUTION REQUIRING THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO AMEND ITS NURSING HOME REGULATIONS, H.3224

Due to a shortage of nursing home beds throughout the state, this resolution was proposed. To meet the needs of some hospitals, converting portions of their facilities to "swing beds" would be a cost savings to both. This resolution amended the nursing home regulations which are more flexible and less stringent than the standards set by hospitals.

RESOLUTION TO PROMULGATE REGULATIONS FOR UTILIZATION REVIEW FIRMS, H.3225

Currently there is a Utilization Review Section within the Insurance Department to oversee UR issues. This resolution encourages input from representatives of hospital associations, medical associations, the insurance industry (both foreign and domestic), the UR industry and the employer community.

SOUTH CAROLINA HEALTH INSURANCE POOL LEGISLATION CONCERNING INVOLUNTARY TERMINATION OF POLICYHOLDERS H.3317, ACT 74

This bill provides that the waiting period and pre-existing condition waivers do not apply to a person whose policy has been terminated or rescinded involuntarily because of a material misrepresentation. The purpose of this change was to put the person whose prior policy was rescinded for material misrepresentation in the same position as a person applying to the Pool who had no prior coverage. The bill also provides that a person who has, or is eligible for, health insurance coverage comparable to that provided by the Pool is ineligible for pool coverage.

SOUTH CAROLINA HEALTH INSURANCE POOL RECOMMENDATION CONCERNING CLAIMS INCURRED RATHER THAN PAID - H.3318, ACT 75

This bill provides that the collection of assessments from members of the pool is for claims incurred or estimated to be incurred under the plan rather than for claims paid under the plan. This was a technical change to make the language of the statute consistent throughout.

SOUTH CAROLINA HEALTH INSURANCE POOL RECOMMENDATION CONCERNING LIABILITY OF POOL DIRECTORS - H.3319, ACT 145

This bill provides that member insurers, their agents or employees, the Pools' agents or employees, Boards of Directors, or the Commissioner or his representatives, are immune for any acts or omissions occurring in the performance of their powers and duties under the Health Insurance Pool Act. This did not eliminate the liability of the Pool, but simply provided the same protection to this board as afforded by statute to the boards of other statutorily created insurance entities.

SMALL GROUP HEALTH INSURANCE REFORM - S.935,
ACT 131

Another study committee omnibus piece of legislation which emanated from the South Carolina Health Care Cost Containment Report, issued in December of 1990, dealt with abuses in individual major medical policies and small group reform. This was a massive piece of legislation which encompassed seven major reforms in the small group marketplace. South Carolina was one of the first states in the nation to take the step to address this issue. Since then many states have adopted similar legislation, and many states have contacted the Insurance Department and the Study Committee for information on this reform bill.

The first section of this bill relates to individual major medical policies with its intent to protect South Carolinians from an industry practice known as "tiering," a practice followed by some insurers, of issuing a succession of individual policies with only slightly different benefits but which all require medical underwriting. The bill was also designed to make the continuation of this practice more difficult by specifying permissible levels of rate variations for individual major medical policies and provides that the rates for such policies cannot be more than 30% higher than the lowest rated individual major medical policy of that insurer. This limitation, however, may be increased by consideration of such factors as age, sex, occupation, etc., as well as by the actuarial value of the difference in benefits among the insurers.

The second section of the bill gives an individual currently insured under an individual policy the right to transfer to another policy of equal or lesser benefits offered by the same insurer without having to pass medical underwriting. However, waiting periods or pre-existing condition exclusion periods would apply under the new policy and any riders on the old policy could be applied under the new as well.

The third section relates to group accident and health insurance policies. Its purpose was to moderate the enormous health insurance rate increases which many small groups under twenty-five were experiencing. The rates for group accident and health insurance policies are not regulated by the South Carolina Department of Insurance. Over the past few years, and depending on the underwriting and actuarial practices of different insurers, the rates charged for small groups have been calculated based on the actual experience of the small group. One person with a recurrent expensive health condition can cause the premiums being charged to the group to rise tremendously. The Insurance Department believes this practice is actuarially unsound because the rates are being based on statistically insufficient numbers. Rates for insurance, to be actuarially sound, must be based on credible experience from large numbers. Therefore, this bill requires that insurers of small group of from two to twenty-four base their rates on the experience of all of their small groups. Once a combined rate for all of the small groups is established, the rate for a particular small group cannot vary, plus or minus, more than 20% from the combined rate. The insurer is allowed to consider, in addition to the 20% policies, such rating factors as age, sex, occupation, etc. in setting the final rate.

The fourth section relates to group accident and health policies issued to groups of from two to twenty-four persons. Currently there are no statutory standards governing cancellation and non-renewal of group accident and health policies. This section limits an insurer's right to cancel or non-renew a small group accident and health policy except for nonpayment of premium, fraud, failure to maintain participation requirements, and breach of the contract unless the insurer cancels or non-renews all policies issued on the same policy form. It also provides the insured with some peace of mind that his coverage would be canceled while also reserving to the insurer the right to make a business decision to cancel or non-renew an entire block of business.

The fifth section relates to group accident and health policies issued to groups from two to twenty-four. Before passage the law provided significant protection to members of an insured group of ten or more which decides to change insurers. For instance, all employees covered under the prior policy must be covered under the new policy and credit for service of waiting periods and pre-existing conditions must be given. This section extends the protection now afforded only to groups of ten or more to all groups of two or more lives.

The sixth section allows health insurers to pick which people they want to insure in groups of less than twenty-five. This section prohibits this practice by requiring insurers to cover all members of the group, regardless of the size of the group. It would not mandate that insurers issue coverage to a group, but requires that if they choose to do so, that all members of the group be afforded coverage. The section specifically allows insurers to ask for individual medical histories to determine whether to write the group as a whole.

The last section is consumer-oriented. It serves to protect insureds who move from one insured group to another, for instance, as the result of changing jobs. It requires the insurer to which the insured moves to give credit for the satisfaction or partial satisfaction of the pre-existing condition period served under the prior plan.

LEGISLATION FOR 1992 PROPOSED & ENACTED:

NAIC RECOMMENDATIONS FOR ACCREDITATION:

STANDARD VALUATION MODEL LAW, H.4138, Act 281

Many years ago, South Carolina adopted the Standard Valuation Model Act. It requires all life insurers doing business in this state to annually value reserves for all outstanding life insurance policies, annuities and pure endowment contracts and specifies how such reserves shall be calculated. The Model Act has been amended to also require that each life insurance company annually submit an opinion by a qualified actuary with respect to reserves, and in some cases, with respect to the assets supporting such reserves. An actuarial memorandum must also be submitted in support of the actuarial opinion. The proposed amendments to the Standard Valuation Law would incorporate these changes.

STATUTORY DEPOSIT MODEL, H.4141, Act 280

Insurers and Health Maintenance Organizations (HMOs), as a condition of doing business in South Carolina, are required to make statutory deposits of specified amounts with the Chief Insurance Commissioner for the protection of South Carolinians. The amendments proposed would permit the Chief Insurance Commissioner to require deposits in excess of the statutorily prescribed amount in appropriate circumstances, permit the Chief Insurance Commissioner to require a statutory deposit from "qualified insurers" in appropriate circumstances and require that HMOs meet the same standards as an insurer for the return of statutory deposits.

HAZARDOUS CONDITIONS MODEL, S.1264, Act 277

In preparing the amendments to Section 38-5-120 contained in Act No. 13 of 1991, a technical error was made in subsection (C). That subsection incorrectly referred to subsection (A) (6). The correct reference is subsection (A). The proposed amendment would merely strike reference to (6).

REINSURANCE INTERMEDIARY ACT, S.1366, ACT 332

The Reinsurance Intermediary Model Act is designed to provide regulation of the activities of individuals who have the authority to cede or assume reinsurance on behalf of a reinsurer. Like an MGA, a reinsurance intermediary's actions can have a substantial impact on the financial condition of the reinsurer. Therefore, the Model Act requires: 1) that the reinsurance intermediary be licensed as an agent or broker in South Carolina, 2) that the responsibilities of the reinsurance intermediary and the reinsurer be established by contract, 3) that the reinsurance intermediary be subject of examination as if it were an insurer, 4) that the reinsurer utilizing a reinsurance intermediary annually file a statement of the financial condition of its reinsurance intermediary, which is prepared by a CPA, 5) that failure to comply with the provisions of the act shall result in the imposition of a fine and/or license revocation and reimbursement by the reinsurance intermediary to the reinsurer for losses incurred as a result of a violation by the reinsurance intermediary.

MANAGING GENERAL AGENTS ACT, S.1365, Rat.5-13-92

A number of insurers operate through MGAs, who have underwriting and binding authority for the insurer represented. As such, the actions of an MGA can have a significant impact on the financial condition of the insurer. To protect the insurer and its policyholders from the currently unregulated activities of MGAs, the Model requires: 1) that MGAs be licensed in South Carolina as agents, 2) that the responsibilities of the MGA and the insurer be established by contract, 3) that the insurer file financial statements, prepared by a CPA, for each MGA with which it does business, 4) that an MGA be subject to examination of its financial condition as if it were an insurer, 5) that failure to comply with the provisions of the act shall result in the imposition of a fine and/or license revocation, and reimbursement to the insurer for losses incurred as a result of a violation by the MGA.

MEDICARE SUPPLEMENT INSURANCE REGULATION, H.4136, ACT 283

Over the past several years, Congress has acted to preempt state regulation of insurance sold to supplement Medicare. It has developed minimum standards for coverages provided under such policies and has also undertaken the regulation of sales practices. Federal legislation passed in 1990, the Omnibus Budget Reconciliation Act of 1990, required that all states conform with federal guidelines for the content and sale of Medicare supplement policies, and required that states receive approval of their Medicare supplement insurance programs from the Health Care Financing Administration. In Connection with this federal approval, South Carolina has identified one statutory change which should be made to assure compliance. This bill amends Section 38-71-730(6) which addresses Medicare supplement coverages provided under group policies, to make it clear that the minimum standard applies to any person eligible for Medicare, not just a person who qualifies by reason of age.

WINDSTORM & HAIL AMENDMENTS, H.4137, ACT 342

The amendments to the Wind & Hail Association statute would: 1) give the Association the right to rely on the member companies' annual statements when determining companies' participation, 2) impose a deadline for submissions for voluntary credits, 3) provide procedures for protesting an assessment and provide to the Commissioner a means of enforcing those procedures, and 4) require member companies to exhaust administrative remedies before bringing suit in state court when appealing technical objections such as those concerning rates, classification, assessments, voluntary credits and underwriting.

SC HEALTH INSURANCE RISK POOL, S.1363, ACT 309

These amendments, submitted by the South Carolina Health Insurance Pool Board, are an effort to contain spiraling health insurance costs. These changes empower the Board to take certain measures to keep costs down while still fulfilling the Pool's statutory duty of providing health insurance to eligible South Carolina residents who otherwise could not procure such insurance.

The first amendment, derived from the Tennessee Health Pool Act, deletes the present statutory requirement of paying benefits according to a static formula. The result would be to grant general power to the pool for paying benefits without forcing adherence to a fixed formula. All changes in benefit levels, however, would be subject to prior approval by the Commissioner.

The second amendment, adopted from the NAIC Model Act, would add provisions granting authority to the Pool to enact cost containment measures if the need arises. This approach would give needed flexibility to the Pool to promulgate cost containment measures as needed, but would limit the Pool's authority to those actions previously approved by the Commissioner.

PROPOSED LEGISLATION FOR 1991

MODEL LAW ON EXAMINATIONS, H.4135, S.1262

The Chief Insurance Commissioner currently has the statutory authority to conduct financial examinations of insurers. The Model Act is similar in many respects to current law, but also provides: 1) specific criteria which may be considered in scheduling financial examinations, 2) that after January 1, 1994, examination reports of foreign insurers may only be accepted from insurance departments of accredited states or in circumstances in which examinations were performed with participation of examiners from an accredited state, 3) that the Chief Insurance Commissioner and his representatives and examiners shall be immune from liability for any statements made or conduct engaged in which is performed in good faith in connection with a financial examination.

SAFETY LAWS LEGISLATION

The Study Committee had four hearings on this omnibus piece of legislation. The members felt that it was very important to address a major factor causing automobile insurance premiums to be as high as they are. That factor was safety. Since South Carolina ranks first in the nation for traffic deaths on rural highways and second in the United States for overall traffic deaths, it seemed logical to the members that they should address what was making South Carolinians unfit drivers. Three main points emerged. The first was the mandating of a driver's education or defensive driving course for all first time drivers who have not held a license in another state, persons to which the objective standards automobile rates apply and persons whose license has been suspended or revoked. Persons to which the objective standards auto rates apply and those who have had license suspension or revocation and have completed a drivers education training program, or are over the age of twenty-one years, must then provide certification of completion of a defensive driving course. This bill also mandated that these courses would be available in vocational schools as well as public high schools, and available to persons in public and non-public schools and those not enrolled in schools.

The second thing which the committee members felt needed to be addressed was the age of the first time driver. The bill raised the age from fifteen to sixteen years of age for a beginner's permit. It then raised the age for a regular license from sixteen to seventeen.

The last major safety element which the members addressed was primary enforcement of the seatbelt law. Currently a person may not be stopped solely for not wearing a seatbelt. If he is stopped for another offense and it is noted that he was not wearing a seatbelt he may then be ticketed and fined $10. This legislation eliminated the secondary enforcement and stated that a person not wearing a seatbelt may be stopped for this, ticketed and fined $50.00.

Unfortunately the House bill at the subcommittee level was met with opposition at each hearing. The Department of Education said it would cost the State $6 million to implement the driver's education course, even though they are presently allotted $30 for each student to take a course. The legislation had mandated an additional $25.00 fee which the student would pay. However, the Department of Education could not be swayed.

Raising the driving age for first time drivers was met with opposition from legislators on the subcommittee, and the primary seatbelt enforcement was attacked. The house bill, therefore, did not even get out of subcommittee.

On the Senate side, the bill did get out of the Transportation Committee, but primary seatbelt enforcement was deleted from the bill. After being put on the Senate calendar, objections were immediately placed upon the bill, thereby stalling a very important piece of legislation.

WORKERS' COMPENSATION STATE FUND FOR SELF-INSURED, S.1231

The Workers' Compensation system in our state can be described as shaky at best. Some 25% of the market is in the assigned risk plan, including many relatively small risks unable to find coverage in the voluntary market. Recently the National Council on Compensation (NCCI), asking for 40%, received a 22% rate increase for workers' comp. coverage and asking for 18%, received a 12% rate increase for the loss component portion of coverage written on the voluntary market. And, as a part of that filing, the differential between voluntary and assigned risk was increased from 15% to 30%.

After USF&G withdrew from the voluntary market, rumors abounded that others, including a very large writer may be considering the same course of action. It remains to be seen what effect the rate increase will have on their thinking, but it will certainly increase rates substantially for small businesses.

Should circumstances develop that bring about a collapse of the market, particularly while the General Assembly is out of session, total chaos would result. Workers' comp. is a mandated coverage, and the assigned risk plan operates only voluntarily on the part of companies which also participate in the voluntary market. This bill would set up a plan to establish a "standby" system for continuation of workers' comp. coverage which is not only desirable, but necessary. This legislation would only venture into the private sector if, and when a true collapse or crisis were declared.

TEMPORARY WORKERS' COMPENSATION COVERAGE FOR APPLICANTS TO AN APPROVED SELF-INSURED FUND, S.1245

This legislation would allow self-insured funds to provide temporary workers' compensation coverage to potential members. Since the Workers' Compensation Commission only considers applications one day each month, limited situations exist where a fund may need to provide temporary coverage in order to bridge the gap between the expiration of one policy period and the Commission's approval of coverage as a member of a self-insured fund.

COMMITTEE AND STAFF ACTIVITIES:

APPALACHIAN REGIONAL COMMISSION STUDY

A grant was awarded to the Kentucky Department of Insurance and the Kentucky Attorney General's Office by the Appalachian Regional Commission to study the availability and affordability of small group health insurance in the Appalachian Region. South Carolina, having six counties in the Appalachian Region, was asked to coordinate their experience with Kentucky. The South Carolina Department of Insurance and the Joint Insurance Study Committee agreed to cooperate in this effort. The study committee has in the previous two years had a Select Committee on Health Care Cost Containment studying this very problem resulting in a report published in December of 1990.

As a result of the three public forums held in the Appalachian Region of this State, the Deputy Chief Insurance Commissioner and the staff of the Joint Insurance Study Committee heard our citizens describe first hand, the kinds of problems they have experienced and continue to experience in obtaining and keeping health insurance. While a variety of problems was discussed, there was nonetheless a clear and persistent message: health insurance coverage is unaffordable for far too many of our citizens. From the information gathered through this study, the Insurance Department hopes to draft legislation which will address the problem of access to health insurance for South Carolina's uninsured population, particularly those employed by small businesses. These proposals will be brought forth to the study committee in the fall of 1992 for pre-filing.

There are six counties in South Carolina clustered at the northwestern corner of the State which are part of the Appalachian Region: Anderson, Oconee, Pickens, Greenville, Spartanburg and Cherokee. Although there are large manufacturing concerns in this geographical area, it is also the home of hundreds and hundreds of small businesses. These small businesses were the segment of South Carolina's population which was targeted for study. With support from the local Chambers of Commerce, the South Carolina Merchant's Association, the Senate Banking and Insurance Committee, the House Labor, Commerce and Industry Committee and the study committee, over two thousand small businesses were invited to attend two public forums, one in Anderson and one in Greenville, to be held to discuss the availability and affordability of small group health insurance. Using a flyer modeled on that employed in Kentucky, these small businesses were notified of the date, time and purpose of these public forums and were urged to appear or to express their comments by filling out the reverse side of the flyer. A press release was also prepared and distributed to print, audio and video news media in the area. Members of the legislative delegations of each county were also notified and invited to attend, as was the Governor of South Carolina and Members of Congress.

There were two public forums held. The first hearing was held at the Anderson County Court House, representing Anderson, Oconee and Pickens counties. Senator Mike Mullinax from the Study Committee graciously explained to those in attendance why these hearings were being held, and what the panel hoped to hear from people who wished to testify. The second hearing held in the Greenville County Council Chambers represented Greenville, Spartanburg and Cherokee counties.

It would be erroneous to conclude that those who testified at these hearings were the only ones involved from these six counties. From the many comments received in writing, and the numerous telephone calls to the Department of Insurance, it is most important to point out that the availability and affordability of small group health insurance is of paramount concern to the citizens of these regions of South Carolina. Among the concerns expressed were the manner in which insurers establish premium rates for small group coverages, how such coverages are underwritten, the role of managed care in curbing health insurance premium increases and the pervasive problem of affordability. Individuals who desired to speak were given an opportunity to do so. Additionally, the forums included a question and answer period for consumers to simply ask questions to gain a better understanding of the insurance mechanism.

In addition to the public forums held to afford small businesses in the Appalachian Region an opportunity to discuss health insurance problems, a final forum was held in Columbia to give the insurance industry a chance to exchange ideas with each other and with the Department concerning how best to address the dual problems of availability and affordability of coverage for small businesses. The top thirty-five writers of accident and health insurance coverage in South Carolina were invited to attend this forum and were requested to critique various proposals being discussed nationwide to increase access to coverage for small businesses. Attendance at this industry forum was excellent as was the discussion which ensued. The forum proved of particular benefit to the Department and the study committee.

In 1991, the South Carolina General Assembly enacted the NAIC Small Group Rating and Renewability Model, which became effective on January 1, 1992, as well as other substantive reforms which affect both group and individual accident and health insurance policies. The Department is monitoring the marketplace to gage the impact of these reforms and is actively studying what the next step should be to improve access to coverage. Consequently, the industry forum which focused on this particular issue could not have been more timely. Each access model was discussed and debated, with its advantages and disadvantages highlighted. Members of the insurance industry listened to the comments of their colleagues and their justifications for supporting or opposing a particular model. As a result, an initial step has been taken in forging a coalition to draft an access model for adoption in South Carolina. Significant work lies ahead in attempting to fashion legislation that will be feasible and tailored to South Carolina's insurance market place, but a foundation has been laid.

From the perspective of the participants at these forums, the small business people who made written comments, and those who called the Department, this initiative has been a success. The availability and affordability of health insurance is of significant concern to this particular segment of South Carolina's population, as it is to our State leaders as well. The fact that the Appalachian Regional Commission shares this concern and demonstrated its commitment to searching for solutions by awarding this grant has given many in our State new hope that a comprehensive answer may be more than an elusive dream.

NATIONAL CONFERENCE OF INSURANCE LEGISLATORS

Over the years, South Carolina has played an active part in the National Conference of Insurance Legislators (NCOIL). South Carolina has two legislators who have been president of NCOIL. Presently, two senators, Senator Ed Saleeby and Senator Glenn McConnell sit on the Executive Committee of this organization.

NCOIL is a national organization of state legislators, working toward better understanding of insurance, state insurance regulation and legislation, and against federal intervention into the rights of the states to regulate and legislate insurance matters. It provides its members with education and informational services to stay abreast of trends and to anticipate new developments. NCOIL also helps legislators in understanding the insurance industry, its impact on constituents, and consumer pressures. The importance of NCOIL to its members is underscored by the fact that insurance is one of the largest private industries regulated by the states, and in any typical legislative year some 25,000 insurance -related bills will be introduced in state legislatures.

South Carolina has sought approval from the Site Selection Committee of NCOIL for the past three years to hold their Annual Meeting in Charleston. This year, on November 14-18, 1992, NCOIL has selected Charleston as the location for the Annual Meeting. Three of the Study Committee members, Senators Ed Saleeby and Glenn McConnell and Representative Jimmy Bailey, will host this event that will bring legislators, insurance commissioners and their staffs to South Carolina from over thirty-five states. This is a high tribute to South Carolina and the hard work of its legislators to bring this conference here.

SOUTH CAROLINA HEALTH POLICY COUNCIL

Spending on health care in the United States rose from $1000 per person in 1980 to $2500 per person in 1990. Consumers, employers, insurers and providers have become concerned about the availability of quality, affordable health care. In South Carolina, two legislative committees, the Blue Ribbon Task Force of the Health Care Planning and Oversight Committee, and the Select Committee on Health Care Cost Containment by the Joint Insurance Study Committee, created task forces to recommend comprehensive health care reform. While helping these groups, the South Carolina Hospital Association and the South Carolina Medical Association also sponsored studies of pressing health care needs. These short term efforts shared one common finding: the state needs a permanent, independent council to explore health care issues. Working together, the four groups founded the South Carolina Health Policy Council.

The Council is a private nonprofit organization. It aims to improve the health of residents through lasting involvement in health issues. It is a forum for business and government leaders, providers, insurers and consumers to discuss and address health care costs, access, quality and the best use of resources.

The Council intends to provide decisive leadership. It will identify key health issues in the state and stimulate informed discussion. The Council will work with consumers, public officials and private leaders to improve our health care system. Relying on a small voluntary staff, of which this study committee's staff is part, the Council will sponsor studies funded by public agencies, business groups or private organizations. The Council will also review and endorse objective work done by others.

The Council's main challenge is to assure affordable and quality health care to all residents. To guide its efforts, the Council has set these priorities: to understand better the forces that affect health spending and share that understanding with decision makers and consumers, to examine ideas meant to slow down the rate of health care inflation and suggest ways to limit health spending, to recommend a basic level of health care that should be available to all South Carolinians and to highlight existing barriers to health care services, such as income or location, and recommend strategies to overcome them.

OTHER ACTIVITIES:

Besides the activities stated above, the Committee's staff continues to work closely with the Department of Insurance, attending the Insurance Commission's monthly meetings. The staff also attends the quarterly meetings of the South Carolina Health Insurance Pool serving as a conduit between the board and the legislature. Staff has also made numerous speeches to various organizations and associations on committee and legislative activity, and appeared in front of U.S. Senator Fritz Hollings' panel on health care reform. Attendance at the National Association of Insurance Commissioners' meetings has been invaluable because Staff not only has the opportunity to follow the progress concerning insurance related legislation in other states, but is also able to pass on to committee members and other legislators, information on the progress of model acts which this association produces, and on which many of South Carolina's insurance laws are based.

Staff is also available and called upon throughout the session and interim to answer any constituent concerns for any member of the General Assembly on any insurance related matter.

On motion on Senator SALEEBY, ordered printed in the Journal.

The following Bills and Joint Resolution were read the third time and having received three readings in both Houses, it was ordered that the titles thereof be changed to that of Acts and same enrolled for Ratification:

H. 3607 -- Reps. Waites, Kinon, Corning, Quinn, Keyserling, Beasley, Burriss, Kempe, McGinnis, Rogers, Huff, Cromer and Rudnick: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 14-17-725 SO AS TO PROVIDE THAT WHERE GENERAL SESSIONS FINES OR RESTITUTION PAYMENTS ARE PAID THROUGH INSTALLMENTS, A COLLECTION COST CHARGE OF THREE PERCENT OF THE PAYMENT MUST ALSO BE COLLECTED BY THE CLERK OF COURT AND TRANSFERRED TO THE COUNTY TREASURER FOR DEPOSIT TO CREDIT OF THE COUNTY GENERAL FUND.

(By prior motion of Senator WILLIAMS, with unanimous consent)

H. 4393 -- Rep. McLeod: A BILL TO AMEND SECTION 23-45-130, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPLICATION OF THE FIRE PROTECTION SPRINKLER SYSTEMS ACT, SO AS TO DELETE THE REQUIREMENT THAT BIDS MUST BE ACCOMPANIED BY A COPY OF A VALID SPRINKLER CONTRACTOR'S LICENSE AND PROVIDE THAT THE CONTRACTOR WHO SUBMITS A BID DIRECTLY TO THE STATE MUST INCLUDE ON IT THE FIRE SPRINKLER LICENSE NUMBER.

(By prior motion of Senator GIESE, with unanimous consent)

H. 4422 -- Rep. Farr: A BILL TO AMEND SECTION 56-5-4070, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LENGTH OF VEHICLES, SO AS TO PROVIDE THAT SADDLE MOUNTS AND FULL MOUNTS MUST NOT EXCEED SEVENTY-FIVE FEET.

(By prior motion of Senator LOURIE, with unanimous consent)

H. 4512 -- Reps. Chamblee, Waldrop, Shirley, Carnell, McAbee and Tucker: A BILL TO AMEND SECTION 14-7-840, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTION FROM JURY SERVICE, SO AS TO PROVIDE THAT JURORS ARE EXCUSED UPON TELEPHONE CONFIRMATION OF EXEMPT STATUS.

(By prior motion of Senator GIESE, with unanimous consent)

H. 4755 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE PUBLIC SERVICE COMMISSION, RELATING TO 900 AND 900-TYPE SERVICES, DESIGNATED AS REGULATION DOCUMENT NUMBER 1460, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

(By prior motion of Senator THOMAS, with unanimous consent)

H. 4406 -- Reps. Manly, D. Williams, Cromer, G. Bailey, Rama, Rogers, Hallman, Mattos, Kempe, Smith, Wilkes, Waites, McElveen, Whipper, J. Bailey, Anderson, Rhoad, Beatty, Jennings, Harrelson, Shissias, Barber, Littlejohn, McCraw, Chamblee, Quinn, Corning, Haskins, L. Martin, Cobb-Hunter, Harrison, Sturkie, Riser and Altman: A BILL TO AMEND SECTION 12-37-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLASSES OF PROPERTY EXEMPT FROM AD VALOREM TAXATION, SO AS TO PROVIDE THAT THE EXEMPTION FOR THE PROPERTY OF ANY RELIGIOUS, CHARITABLE, OR ELEEMOSYNARY SOCIETY, CORPORATION, OR OTHER ASSOCIATION WHEN THE PROPERTY IS ACQUIRED FOR THE PURPOSE OF BUILDING OR RENOVATING RESIDENTIAL STRUCTURES ON IT FOR SALE TO ECONOMICALLY DISADVANTAGED PERSONS MAY BE CLAIMED FOR UP TO FIVE, RATHER THAN TWO, TAX YEARS ON A SINGLE PROPERTY, SPECIFY THAT THE SALE OF THE PROPERTY BE A NOT-FOR-PROFIT SALE, AND PROVIDE THAT THE TOTAL PROPERTIES FOR WHICH THE RELIGIOUS, CHARITABLE, OR ELEEMOSYNARY SOCIETY, CORPORATION, OR OTHER ASSOCIATION MAY CLAIM THIS EXEMPTION MAY NOT EXCEED FIFTEEN ACRES PER COUNTY WITHIN THE STATE.

(By prior motion of Senator J. VERNE SMITH, with unanimous consent)

The following House Bills were read the third time, passed and ordered returned to the House with amendments:

H. 4233 -- Reps. McGinnis, Neilson and Baxley: A BILL TO AMEND SECTION 6-11-91, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMPENSATION FOR THE GOVERNING BODY OF A SPECIAL PURPOSE DISTRICT OR PUBLIC SERVICE DISTRICT, SO AS TO DELETE THE REQUIREMENTS PERTAINING TO REIMBURSEMENT FOR MILEAGE, INSURANCE BENEFITS, AND PER DIEM.

(By prior motion of Senator WILLIAMS)

H. 4669 -- Reps. Wilkins, Whipper, Wilkes, Rama, A. Young, Hallman, Sharpe, Corning, Barber, Klapman, Wright, McAbee, Smith, Townsend, Shirley, Waites, Wofford, Quinn, Bruce, Tucker, Boan, McKay, Riser, Taylor, Koon, Rhoad, H. Brown, Littlejohn, Canty, Corbett, Mattos, Keegan, Byrd, Chamblee, McGinnis, Haskins, Harvin, Harrison, D. Elliott, Beasley, Lanford, Carnell, White, Gonzales, Fair, K. Burch, Stone, Shissias, Wells, Foster and Scott: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-23-65 SO AS TO PROVIDE FOR CIVIL IMMUNITY FOR THE SOUTH CAROLINA LAW ENFORCEMENT TRAINING COUNCIL.

(By prior motion of Senator GIESE, with unanimous consent)

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

S. 1571 -- Senators Matthews, Williams, Land, McGill, Peeler, Fielding, Washington, Saleeby, Moore, Leventis, Pope, Bryan, Carmichael, Cork, Courson, Courtney, Drummond, Giese, Gilbert, Robert W. Hayes, Jr., Helmly, Hinds, Hinson, Holland, Leatherman, Lourie, Macaulay, Martin, Martschink, McConnell, Mitchell, Mullinax, O'Dell, Passailaigue, Patterson, Reese, Rose, Russell, Setzler, Shealy, J. Verne Smith, Nell W. Smith, Stilwell, Thomas and Wilson: A BILL TO AMEND SECTION 57-25-150(B) OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO EXEMPT CERTAIN SOUTH CAROLINA FARMERS FROM THE INITIAL APPLICATION FEE REQUIRED OF APPLICANTS SEEKING PERMITS TO ERECT OUTDOOR ADVERTISING SIGNS.

(By prior motion of Senator MATTHEWS, with unanimous consent)

At 12:03 P.M., on motion of Senator WILSON, the Senate adjourned to meet next Tuesday, May 26, 1992, at 12:00 Noon.

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