1994 Permanent House Journal Printed Pages 2680-2689 - South Carolina Legislature Online

Journal of the House of Representatives
of the Second Session of the 110th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 11, 1994

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Printed Page 2670, Feb. 24 | Printed Page 2690, Feb. 24

Printed Page 2680 . . . . . Thursday, February 24, 1994

4. He married Joan Harrington on April 17, 1955. He has two children:James Leon Cannon, Jr., employed by Canal Wood Corporation; and Rodney Patrick Cannon, Horry County Department of Management.

5. Military Service: S.C, Army National Guard, Retired in 1988.

6. He graduated from Conway High School in 1947, attended the National Law Enforcement Academy in 1976, and has completed over 50 courses at the SC Criminal Justice Academy between 1976 and 1980.

7. He served on the Conway City Council from 1961 to 1964, as a Horry County Magistrate between 1969 and 1981, and served as Head Magistrate in Horry County from 1976 to 1981.

8. He lost his 1982 bid for probate judge and a 1984 bid for sheriff.

9. He was a clerk with the A&P Tea Co. from 1946 to 1953, an automobile salesman from 1954 to 1957, an appliance salesman for Sears from 1958 to 1968, a magistrate in Horry County from 1969 to 1981 and a SC National Guard recruiter from 1982 to 1988.

15. When serving as a magistrate, he was charged with 96 counts of misconduct and neglect of duty. All these charges revolved around the reduction or suspension of fines in traffic cases or the failure to set a trial date in such a matter. He was placed on probation, but allowed to continue his service as magistrate. He was strongly supported by the community, and Governor West, as chief magistrate, stated that he had no doubts about Mr. Cannon's integrity.

26. Professional organizations: Waccamaw Regional Planning and Development Council; Past Board Member of Conway City Recreation Department.

27. Civic, charitable, etc. organizations:Conway Jaycees (Past President); Kiwanis Club; First Baptist Church, Conway (Deacon);Conway Masonic Lodge; Waccamaw Shrine Club; and Woodman of the World.

Printed Page 2681 . . . . . Thursday, February 24, 1994

29. Five letters of reference:

(a) W.L. Hubbard, Jr.

P.O. Box 847

Marion, SC 29571

(803) 423-8208

(b) Willis Duncan

P.O. Box 320

Conway, SC 29526

(803) 248-5721

City Hall

Myrtle Beach, SC 29577

(803) 626-7645

(d) Alfred B. Schooler

P.O. Drawer 1270

715 Prince Street

Georgetown, SC 29442

(803) 546-4189

(e) Hal B. Holmes

600 Lakeside Drive

Conway, SC 29526

(803) 248-9295

30. Sixth District.

MR. COUICK: Mr. Chairman, the next candidate is Maxine Dawes. Once you're settled, if you'll just raise your right hand while you're standing, we'll do the oath.
MAXINE DAWES, having been duly sworn, testified as follows:
MS. DAWES - EXAMINATION BY MR. COUICK:
Q. Ms. Dawes, I'm looking at your driver's license. It indicates that you live at 3208 Main Street in Loris, South Carolina, 29569?
A. That's right.
Q. Your address on your voter registration is the same address; is that correct?
A. That's right.
Q. That is in Horry County, is that correct, as well?
A. That's right.
Q. Ms. Dawes, we've reviewed your credit report and also the report of the SLED. Both are negative in that there are no negative entries. They are clear reports. We report that for the committee's benefit.

Printed Page 2682 . . . . . Thursday, February 24, 1994

Ms. Dawes, do you own any utility stock?
A. Excuse me?
Q. Do you own any stock of any regulated public utility?
A. No, I do not.
Q. Does your -- anyone in your household own any utility stock, your husband or anyone else --
A. No.
Q. -- in your household? Why you would like to serve on the Public Service Commission, Ms. Dawes?
A. Because I feel that -- first of all, I've served publicly -- in a public service capacity. Not public service, per se, all my adult life. I have a very diversified background that I think qualifies me to some extent to this position because I think the person on the Public Service Commission as I understand it should be a person who certainly balances people's interest versus the financial stability of our providers, whoever they might be. And I think I can do that. I'm qualified to do that.

Having been the mayor, I have definitely tried to do those things and also I have some experience in setting rates insofar as water and sewer goes. I have not worked directly with the utility companies, but I have negotiated contracts with them by way of water and sewer, also a franchise for cable TV for the northern part of Horry County. I also have negotiated contracts for bulk delivery of water to municipalities.

I am very familiar with the acquisition of highway and utility easements and right of ways. And also not directly related to the public service, I have implemented condemnation proceedings to acquire property for the public's use. And also I have worked very closely with some other regulatory agencies although they were not directly connected with the Public Service Commission, but would be the DHEC, the EPA and also the Corps of Engineers.

I feel that my working knowledge of these agencies might help me in the decision making of any matters that might come before the commission. And also I know a little bit about the territorial boundaries of utility companies.
Q. Yes, ma'am. Ms. Dawes, you served in the Waccamaw Equal Employment Opportunity Board, I believe?
A. Oh, that -- I was incorrect. I was not serving the board. I was a supervisor employed by the board.
Q. What were your responsibilities in that position?
A. I was a supervisor for the Horry, Georgetown and Williamsburg Counties where I went to Atlanta, recruited students who had just

Printed Page 2683 . . . . . Thursday, February 24, 1994

graduated from college, trained them and supervised them in profit programs throughout the three-county area.
Q. Since you've served as a mayor of the town of Loris, what accomplishments have you made in that same area in terms of minority hiring?
A. Well, for the first time in the history of that town, we have two minorities in City Hall and for the very first time, we have a minority supervisor. We have had minority police officers trained while I was there and --
Q. How many employees total do you have in the town?
A. 37.
Q. And of those number of 37, how many minorities would you have total in that?
A. I would say -- I can't give you -- I can't tell.
Q. Just approximately.
A. I would say there are 10.
Q. And those are persons have been hired since you were elected?
A. Oh, yes.
Q. Approximately 12 years ago?
A. Yes, and trained. Right.
Q. And how many of those folks have positions of responsibility of policy setting and making?
A. Only one is in a supervisory capacity. I guess you would say maybe three in policy setting.
Q. Ms. Dawes, you indicated that you granted cable television franchises now?
A. Excuse me?
Q. Your town grants a cable television franchise now?
A. Oh, yes. But now you understand, I'm no longer the mayor.
Q. Yes, ma'am, but you were there, I take it, when you granted this franchise?
A. Oh, yes. I negotiated that contract, yes.
Q. And part of the things a lot of folks have talked about is this coming Informational Revolution and making available information throughout the country and allowing for interface. What kind of problems do you see coming with that from a regulator's standpoint?
A. Cost.
Q. Cost from what aspect?
A. Consumers.
Q. Should the consumer pay for that revolution?
A. Not totally.

Printed Page 2684 . . . . . Thursday, February 24, 1994

Q. How would you -- what would be your thought process for allocating that cost?
A. Well, it is coming. It's a reality. And naturally when anything like that happens, people who bring it are going to make a profit. I would feel that should it be coming under the regulatory commission, that it should certainly be looked at. That to make a profit, yes, but not to be to the extent that the average consumer could not participate or afford it.
Q. Would you be --
A. And as far as the specific details, I do not have the technical knowledge --
Q. Yes, ma'am.
A. -- to tell you exactly.
Q. Nor do I have the technical knowledge to question you about enough to do that. Please tell me, would you be willing to allocate cost based on use? For example, if you have a neighbor in Loris that only uses her phone for limited purposes, should she pay the same thing to put together that Informational Highway that the law firm down the street uses Lexus or Nexus computers that needs that fiberoptic capabilities? Should they pay the same thing for that base service?
A. I think, like the water and sewer and garbage disposal, waste water, anything, there is always going to a little base, but, no, they should not pay that amount. I think it should be based on use. They should not pay a major amount.
Q. What is the --
A. You know, equal to the professional person running an office.
Q. The Dawes Company, I take it, is a kind of a broad base company that does accounting and real estate work?
A. That's right.
Q. Is that correct?
A. Uh-huh.
Q. You were a licensed real estate broker. The accounting responsibilities, were those with your daughter for a while? I noticed she was --
A. Well, my accounting office -- my daughter lives in Columbia. My accounting office is still there. It was -- my real estate office. You know, it was accounting and real estate combined totally.
Q. Right.
A. And I still have the accounting.
Q. I guess I'm trying --
A. I'm still selling real estate.

Printed Page 2685 . . . . . Thursday, February 24, 1994

Q. I guess I'm trying to figure out your accounting background, which is one of the things this committee is called on to look for is an accounting background.
A. Well, my --
Q. Did you have --
A. -- accounting -- it was not so much formal training as it was -- well, I had a little bit of college training in accounting, but I have been in the business 20 years and I just keep abreast of new changes and I work at them on a day to day basis and I also keep updated on tax laws. If you notice that I have attended Clemson's seminars for the past 12 years.
Q. Those are tax laws seminars?
A. Yes, they're tax laws. They're updating you on tax laws and not necessarily accounting, per se, but, you know, in order to be an accountant, you need to know the law.
Q. You attended Coastal Carolina in what years?
A. Well, that -- it's at different times. I can't -- you know, I could have brought a --
Q. Was it from the sixties, seventies?
A. It's right in there. It's right in that area and then I've been back in the last ten years a couple of times, yes.
Q. And that's when you had the accounting training to some degree?
A. Prior to that. Prior to that.
Q. Yes, ma'am.
A. In the first training, yes.
Q. You have been an unsuccessful candidate for elective office on a couple of occasions, one was for the South Carolina House of Representatives, House Seat 104. When was that, Ms. Dawes?
A. When -- some of you may remember the late Charles Hodges, it was the time I was elected mayor really. I ran for that, the unexpired term of Mr. Hodges and Representative Dick Elliott won the seat.
Q. And this was Mr. Hodges died?
A. Yes, Mr. Hodges died.
Q. And you offered for the Horry County Council, District Number 9 and that was when?
A. That must have been about five years ago.
Q. Were you defeated in the primary by Mr. Elliott for House Seat 104?
A. Right. It was a special election. We were the only candidates.
Q. Have you been active in partisan politics in the last couple of years since you left the mayor's office?
A. Well, not really. See, the mayor -- the position I've held for 18 years has been a nonpartisan position.

Printed Page 2686 . . . . . Thursday, February 24, 1994

Q. Right.
A. I did seek an office on the Democratic ticket, yes.
Q. That was in 1992, I believe, right?
A. Yeah.
Q. The County Auditor position?
A. I wish it had been nonpartisan.
Q. Have you actively campaigned for or made contributions to any persons whether they be Democrat or Republican?
A. No.
Q. Is there any person in the House or the Senate at this time that you campaigned actively for or that you provided political contributions to?
A. No.
Q. On the water and sewer service that you provided for the town of Loris, did you ever have any complaints that there was any lack of service in the poorer areas of the town or the area that you serviced?
A. No. We didn't have, you know, many complaints about the services, you know, in the area there.
Q. In terms of the provisions of service?
A. You mean the availability --
Q. Yes, ma'am.
A. -- or the -- no. We didn't have any. We didn't have any. We were all following the same thing as -- you know, when it came into the Clean Water Act, which, there again, you got on -- but as far as any complaints on our part, the city, or my part, personally, in providing the water, no, we never have had a problem.

We did have a moratorium on waste water treatment plants and DHEC, of course, had mandated we had to upgrade it and during my tenure, we did do that. So now the sky is the limit.
Q. Ms. Dawes, it's hard for me as an attorney to understand accounting much as it might be an accountant to understand law. I'll certainly try -- I'm trying to peg your level of understanding of accounting. What type of accounting services do you feel comfortable offering or how would you classify yourself? You're certainly not a licensed CPA.
A. I'm not a CPA. I've done business accounting for small businesses. I've done --
Q. What size of gross revenues would these companies -- or gross sales would they typically have, just your range?
A. Well, they're not really that many small companies in Loris. We're talking about a half a million, you know. There are just not that many.
Q. And would you handle the employment side of it for them as well?

Printed Page 2687 . . . . . Thursday, February 24, 1994

A. Yes, the employment as well as the sales tax and the other taxes that they might have to pay. Any kind of employment tax.
Q. And how many businesses would you typically be handling at a time?
A. Maybe six or seven. I didn't do a lot of those. I mostly did -- no, I'd say six or seven and I do -- I have about 400 tax clients where I do tax returns and they range from anywhere very short things to estate taxes.
Q. You do estate tax work as well?
A. I have done -- I have one client.
Q. The Dawes Company, what are your plans for it if you were to be elected?
A. I would just probably close the door because my daughter who is the accountant is here. And I don't have anyone else that's that interested in it, and -- that's what I would do.
Q. The Public Service Commission is unique in that it's -- while not judges, they're called upon to hear cases of many types and typically there is a consumer side and then there is an industry side and how would you approach balancing those interests?
A. Consumer and --
Q. The industry that seeks -- that's regulated that needs to make a profit?
A. I would vote -- if you be fair and objective, it always balances. One side might not be satisfied with it, but it always balances.
Q. Now, let's throw the third component in, the environment and that sometimes costs more for both sides?
A. Yes, I know.
Q. How much are you willing to let that figure into your formula?
A. When you talk about the environment, you're referring to the -- regulatory agencies and the things that they -- you're talking about the wetlands and you're talking about --
Q. Let me ask your understanding. Does the Public Service Commission have any independent authority or responsibility in the area of the environment?
A. Independent, I would think that that was the -- all the things that would come before the -- not all of them, but some of the things that come before the Public Service Commission as I understand it are definitely going to be related either indirectly or directly insofar as the environment -- will effect the environment in some way. I'm well aware of that. But I don't see -- maybe I'm not familiar enough with it, but I don't see--
Q. And that's why I didn't want to leave you hanging?
A. Okay.

Printed Page 2688 . . . . . Thursday, February 24, 1994

Q. It's my understanding that the Public Service Commission is called upon to make an independent environmental assessment in siting decisions for generation plants independent of whether --
A. It's not --
Q. -- DHEC says or --
A. I do not see that the Public Service Commission's role is to regulate the matters of the environment, if that's your question.
Q. If I were to tell you that the statutes say that whenever you site a new power generation plant --
A. Oh, yeah, you've got to consider what it does to the environment.
Q. Right.
A. Yes, you have to take that in consideration. Yes.
Q. How would you do that? How far would you be willing to go in ensuring whatever the environment is -- the effect on the environment? How would that factor into your decision?
A. How far can the commission go? I mean, would -- what authority would we have? Are you saying that would I take that in consideration?
Q. Yes, ma'am, and how far. If the law says now the commission is called upon to assess the environmental impact of its siting decisions, and that's essential how -- what the law says. It's not much more definite than that. How far would you look and what would you look for?
A. Well, it would depend on the industry we're looking at as to how it would effect the environment.
Q. If it were shown that it would be more costly to make it environmentally clean and green, would you be willing to go along with that? More costly to the rate payer and to the industry?
A. If it were required. But --
Q. So you would not take a proactive stance as it related to the environment? You would not go beyond the minimum requirements of the law?
A. Well, I think -- now I don't want to sound pro like that, but I think most any case would stand -- you know, would be -- I have to consider each case individually and I'll cite you why.

I had a situation one time where I wanted to open a canal to -- it was in wetlands which was to relieve storm drainage on a community. There was a technicality on which side of the canal, you're going to put the spoils.
Q. Right.
A. Now, I think that's going a little far, you know, so I wouldn't say I'd go to the extreme, but certainly you're going to have to take the

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environment into consideration and the impact that it might have on anything you do.
Q. Mr. Chairman, that's all my questions.
THE CHAIRMAN: Any question from any member of the committee? Representative Wilkes.
EXAMINATION BY REPRESENTATIVE WILKES:
Q. Ms. Dawes, I would assume from your answer about this environmental question that you certainly would use your best judgment, but you might fall on the side, if I ask you which was more important woodpeckers or jobs, you probably would fall on the job side?
A. To be perfectly honest with you, I would.
Q. Thank you.
A. If that were the case.
Q. Yes, ma'am, I understand perfectly. Thank you.
SENATOR COURTNEY: Mr. Chairman?
THE CHAIRMAN: Senator Courtney.
EXAMINATION BY SENATOR COURTNEY:
Q. Ms. Dawes, do I remember this controversy with the police department or something?
A. Excuse me?
Q. Was there some controversy in your police department there when you were mayor? It seems like I remember reading --
A. There surely was.
Q. What was that?
A. We had a police chief that I thought was corrupt and I was trying to get an investigation to not necessarily have him removed, but to get an investigation to see if he were, in fact, corrupt. But all his friends were all or the majority of his friends were on the council and he did have some friends in higher places and I never really could do anything about it.
Q. That's what that was about?
A. That's what that was about, yes, sir.
Q. Thank you.
A. But he moved on.
THE CHAIRMAN: Senator Jackson.
EXAMINATION BY SENATOR JACKSON:
Q. Ms. Dawes, I see that your term as mayor ended in 1992?
A. That's right.
Q. Was that as a result of you choosing not to run again or losing that election?
A. That was the people's choice by seven votes.
Q. So you lost the election by seven votes?

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