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(3) felony, for a second or subsequent violation, regardless of the amount of the benefit received. Upon conviction, the person must be punished by a fine not to exceed fifty thousand dollars or by imprisonment for a term not to exceed five years, or by both such fine and imprisonment.

Any person or insurer convicted under this section must be ordered to make full restitution to the victim or victims for any economic benefit or advantage which has been obtained by the person or insurer as a result of that violation.

Section 38-55-550. (A) In addition to any criminal liability, any person who is found by a court of competent jurisdiction to have violated any provision of this act, including Section 38-55-170, must be subject to a civil penalty for each violation as follows:

(1) for a first offense, a fine not to exceed five thousand dollars;

(2) for a second offense, a fine not less than five thousand dollars but not to exceed ten thousand dollars;

(3) for a third and subsequent offense, a fine not less than ten thousand dollars but not to exceed fifteen thousand dollars.

(B) The civil penalty shall be paid to the director of the Insurance Fraud Division to be used in accordance with subsection (D) of this section. The court may also award court costs and reasonable attorneys' fees to the director. When requested by the director, the Attorney General may assign one or more deputy attorney generals to assist the bureau in any civil court proceedings against the person.

(C) Nothing in subsections (A) and (B) shall be construed to prohibit the director of the Insurance Fraud Division and the person alleged to be guilty of a violation of this act from entering into a written agreement in which the person does not admit or deny the charges but consents to payment of the civil penalty. A consent agreement may not be used in a subsequent civil or criminal proceeding relating to any violation of this act.

(D) All revenues from the civil penalties imposed pursuant to this section shall be used to provide funds for the costs of enforcing and administering the provisions of this act.

(b) The Attorney General, upon receipt of any claims or allegations of violations of Sections 38-55-170 and 38-55-540 of the 1976 Code and related criminal insurance activity, is empowered to:

(1) refer the matter for investigation to the State Law Enforcement Division;

(2) prosecute persons determined to be in violation of Sections 38-55-170 and 38-55-540 of the 1976 Code and related criminal insurance activity in a court of appropriate jurisdiction; and

(3) collect fines and restitution ordered by such courts. Where deemed appropriate, the Attorney General may use the Setoff Debt Collection Act to collect fines and restitution ordered as a result of actions brought pursuant to Sections 38-55-170 and 38-55-540.

(c) The State Law Enforcement Division shall investigate thoroughly all claims or allegations of violations of Sections 38-55-170 and 38-55-540 of the 1976 Code and related criminal insurance activity received from the Attorney General pursuant to this section.

(d) The Insurance Fraud Division of the Office of Attorney General and the investigative services of the State Law Enforcement Division as provided by this section must be funded by an appropriation of not less than two hundred thousand dollars annually from the general revenues of the State derived from the insurance premium taxes collected by the Department of Insurance and/or from fines assessed under Sections 38-55-170 and 38-55-540 which shall be deposited in the general revenue fund to the credit of the Office of the Attorney General and the State Law Enforcement Division to offset the costs of this program. These monies shall be shared equally on a fifty-fifty basis by the Office of the Attorney General and the State Law Enforcement Division.

Section 38-55-570. (a) Any person, insurer, or authorized agency having reason to believe that another has made a false statement or misrepresentation or has knowledge of a suspected false statement or misrepresentation shall, for purposes of reporting and investigation, notify the Insurance Fraud Division of the Office of the Attorney General of the

(b) Upon request by the Insurance Fraud Division, any person, insurer, or authorized agency shall release to the Insurance Fraud Division any or all information relating to any suspected false statement or misrepresentation including, but not limited to:

(1) insurance policy information relevant to the investigation, including any application for such a policy;

(2) policy premium payment records, audits, or other documents which are available;

(3) history of previous claims, payments, fees, commissions, service bills, or other documents which are available; and

(4) other information relating to the investigation of the suspected false statement or misrepresentation.

(c) Any authorized agency provided with or obtaining information relating to a suspected false statement or misrepresentation as provided for above may release or provide the information to any other authorized agency. The Department of Insurance, the Department of Revenue and Taxation, Division of Motor Vehicles, and the Workers' Compensation Commission shall refer, but not adjudicate, all cases of suspected or reported false statement or misrepresentation to the Insurance Fraud Division of the Office of Attorney General for appropriate investigation or prosecution, or both.

(d) Except as otherwise provided by law, any information furnished pursuant to this section shall be privileged and shall not be part of any public record. Any information or evidence furnished to an authorized agency pursuant to this section shall not be subject to subpoena or subpoena duces tecum in any civil or criminal proceeding unless, after reasonable notice to any person, insurer, or authorized agency which has an interest in the information and after a subsequent hearing, a court of competent jurisdiction determines that the public interest and any ongoing investigation will not be jeopardized by obeyance of the subpoena or subpoena duces tecum.

Section 38-55-580. (a) A person, insurer, or authorized agency, when acting without malice or in good faith, is immune from any liability arising out of filing reports, cooperating with investigations by any authorized agency, or furnishing other information, whether written or oral, and whether in response to a request by an authorized agency or upon their own initiative, concerning any suspected, anticipated, or completed insurance fraud, when such reports or information are provided to or received by any authorized agency.

(c) Nothing herein limits the liability of any person or insurer who, with malice or in bad faith, makes a report of suspected fraud under the provisions of this article.

Section 38-55-590. The director of the Insurance Fraud Division in the Office of the Attorney General shall annually report to the General Assembly regarding:

(a) the status of matters reported to the division, if not privileged information by law;

(b) the number of allegations or reports received;

(c) the number of matters referred to SLED for investigation;

(d) the outcome of all investigations and prosecutions under this act, if not privileged by law;

(e) the total amount of fines levied by the court and paid to or deposited by the division; and

(f) patterns and practices of fraudulent insurance transactions identified in the course of performing its duties. The director shall also periodically report this information to insurers transacting business in this State, health maintenance organizations transacting business in this State, and other persons, including the State of South Carolina, which provide benefits for health care in this State, whether these benefits are administered directly or through a third person."

B. The 1976 Code is amended by adding:

"Section 42-9-440. The commission shall refer all cases of suspected false statement or misrepresentation to the Insurance Fraud Division of the Office of the Attorney General for investigation and prosecution, if warranted, pursuant to the Omnibus Insurance Fraud and Reporting Immunity Act.

For the purposes of this section, `false statement and misrepresentation' means a statement or representation made by a person that is false, material, made with the person's knowledge of the falsity of the statement and made for the purpose of obtaining or denying or causing another to obtain or deny any benefit or payment in connection with an insurance transaction and such shall constitute fraud."

C. This section takes effect July 1, 1994./

Renumber sections & amend totals/title to conform.

Rep. M.O. ALEXANDER explained the amendment.

Rep. RUDNICK raised the Point of Order that Amendment No. 19 was out of order as it was not germane.

Rep. M.O. ALEXANDER argued contra the Point.

The SPEAKER stated that the House had adopted previous amendments that made it germane and he overruled the Point of Order.

Rep. M.O. ALEXANDER continued speaking.

Rep. HODGES spoke in favor of the amendment.

The amendment was then adopted.

Reps. SHARPE, CARNELL, RHOAD, J. BAILEY, COBB-HUNTER, MATTOS, STODDARD, HOLT, DAVENPORT, WALDROP, RISER, WHITE, J. WILDER, SNOW, J. HARRIS, McKAY, HARVIN, McABEE, P. HARRIS, WITHERSPOON and CHAMBLEE proposed the following Amendment No. 47 (Doc Name L:\council\legis\amend\JIC\5671HTC.94), which was adopted.

Amend the bill, as and if amended by adding:

A. Section 9-9-10(13) of the 1976 Code is amended to read:

"(13) `Earnable compensation' shall mean means forty times the daily rate of renumeration, plus thirty-six hundred six thousand dollars, of a member of the General Assembly, as from time to time in effect."

B. This section applies for members of the General Assembly retiring after June 30, 1994./

Amend title and totals to conform.

Let the Journal reflect that I voted "no" on Amendment Number 47.

Rep. IRENE K. RUDNICK

Reps. SHARPE, CARNELL, RHOAD, J. BAILEY, COBB-HUNTER, MATTOS, STODDARD, HARVIN, HOLT, DAVENPORT, WALDROP, RISER, KOON, WHITE, McKAY, McABEE, WITHERSPOON, CHAMBLEE, J. HARRIS, M.O. ALEXANDER, NEILSON, SNOW and

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

Section 9-9-60(2) of the 1976 Code, as last amended by Act 189 of 1989, is further amended to read:

"(2) Effective July 1, 1989 1994, a retired member shall receive a monthly retirement allowance which is equal to one-twelfth of four five and eighty-two hundredths percent of earnable compensation multiplied by the number of years of his the member's credited service prorated for periods less than a year."

Amend totals and title to conform.

Rep. SHARPE explained the amendment.

The amendment was then adopted.

I voted against Amendment #49 (Section 17, Page 623.)

Rep. CANDY Y. WAITES

Let the Journal reflect that I voted "no" on Amendment Number 49.

Rep. IRENE K. RUDNICK

Reps. CROMER and GAMBLE proposed the following Amendment No. 91 (Doc Name L:\council\legis\amend\GJK\20596SD.94), which was ruled out of order.

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

A. The 1976 Code is amended by adding:

"Section 58-31-75. The Public Service Authority in procuring and operating motor vehicles shall be subject to rules, regulations, policies, and procedures of the division of motor vehicle management of the budget and control board in the same manner state agencies and departments are subject to these rules, regulations, policies, and procedures, provided all motor vehicles of the authority must be titled in the name of the authority."/

Renumber sections & amend totals/title to conform.

Rep. CROMER explained the amendment.

Rep. LAW raised the Point of Order that Amendment No. 91 was out of order as it was not germane.

Rep. CROMER argued contra the Point in stating that there was direct cost to the State under the Budget and Control Motor Vehicle Management Division which was allocated in Part I, Section 17, Page 100, Line 24 and it would be an expenditure for the Budget and Control Board to bring in the automobiles and change titles to the State of South Carolina and supervise them.

The SPEAKER stated that it had to directly relate to revenue appropriated in Part I.

Rep. CROMER stated that it directly related to revenue in that surplus automobiles would have to be disposed of by the Budget and Control Board by the Division of Vehicle Management.

The SPEAKER stated that there was no money involving the Public Service Authority in this Bill.

Rep. CROMER stated, citing page 506A in Part I, that the Public Service Authority was still a quasi public entity and it had a line item of 6.5 million dollars remitted to the General Fund.

The SPEAKER stated that that was just an assessment that they contribute under general law and that there was no money involving any

Rep. CROMER proposed the following Amendment No. 102 (Doc Name L:\council\legis\amend\DKA\3304BDW.94), which was tabled.

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

A. Section 55-5-70 of the 1976 Code, as last amended by Section 1289, Act 181 of 1993, is further amended to read:

"Section 55-5-70. The division shall foster air commerce within the State and the division shall have has supervision over the aeronautical activities and facilities within the State. Such The authority shall include includes supervision and control over all aircraft owned, operated, and maintained by the State, its departments and agencies, airports, landing fields, landing strips, air instruction, air parking, air beacons, and all other air navigation facilities. Accordingly, the division may prescribe such reasonable rules and regulations as it may deem necessary and advisable for the public safety and for the promotion of aeronautics governing:

(1) state aircraft, except aircraft used for state law enforcement and aircraft purchased, operated, and maintained by public college or university athletic departments;

(2) the designing, laying out, location, building, equipping, operation, and use of all airports, landing fields or landing strips.;

(3) The division may further prescribe such reasonable rules and regulations as it may deem necessary governing the curriculum, equipment, personnel, and operation, and management of all air instruction, for the purpose of protecting to protect the health and safety of students receiving or to receive such instruction and insuring, so far as may be, ensuring the public safety through the proper training and instruction of student aviators.;

(4) The division may further prescribe such reasonable rules and regulations as it may deem necessary and advisable for the public safety and the safety of those engaged in aeronautics and for the promotion of

(5) The division may further prescribe such reasonable air traffic rules and regulations as it shall deem necessary for public safety and the safety of those engaged in aeronautics and for the promotion of aeronautics;. provided, however, that no rules or regulations

Regulations prescribed by the division under the authority of this section shall be must not be inconsistent with the then current federal legislation governing aeronautics and the regulations duly promulgated thereunder under federal law."

B. The Aeronautics Division shall conduct a study to examine the feasibility and potential cost savings of providing shuttle flights in state-owned aircraft to frequently traveled destinations. The division shall report its findings to the General Assembly through the House Ways and Means and Senate Finance Committees by January 1, 1995.

C. The Aeronautics Division shall reduce by one the number of state-owned aircraft immediately upon acquisition of jurisdiction over these aircraft as provided in subsection A of this section. Proceeds from the sale of the aircraft must be expended for the division's maintenance programs and for the cost of the study provided for in subsection B.

D. This section takes effect July 1, 1994./

Renumber sections & amend totals/title to conform.

Rep. CROMER explained the amendment.

Rep. McABEE raised the Point of Order that Amendment No. 102 was out of order as it did not directly relate to a line item in Part I.

Rep. CROMER argued contra the Point in stating that it directly related to the budget of the Aeronautics Commission under the Department of Commerce under other operating expenses. He further stated that there was a ruling last year dealing with state cars and under the Speaker's conclusion, the effect of an amendment did relate to the revenue of an appropriation because it called for direct reimbursement of commuter miles. He further stated that with this there was a direct sale of an airplane bringing revenue immediately into the budget. He further stated on page 4 of the amendment the revenues were allocated when it stated that proceeds from the sale of this aircraft must be expended for the division's maintenance programs and for the cost of the study provided for in Subsection B of the amendment.

Rep. CROMER stated that the reimbursement for the commuter miles from last year were not in Part I either under the Speaker's Ruling.

The SPEAKER stated that it had to relate to a line item.

Rep. CROMER stated that it related to line 33, Other Operating Expenses on page 410 of the Bill and line 3 on page 411.

The SPEAKER stated it was germane and he overruled the Point of Order.

Rep. CROMER continued speaking.

Reps. J. WILDER, HOLT and GONZALES spoke against the amendment.

Rep. CROMER spoke in favor of the amendment.

Rep. PHILLIPS spoke against the amendment and moved to table the amendment.

Rep. CROMER demanded the yeas and nays, which were taken resulting as follows:

Those who voted in the affirmative are:

Alexander, M.O.  Alexander, T.C.  Anderson
Askins           Bailey, G.       Baker
Barber           Baxley           Breeland
Brown, H.        Brown, J.        Canty
Carnell          Cato             Chamblee
Clyborne         Cooper           Delleney
Elliott          Fair             Farr
Felder           Fulmer           Gonzales
Graham           Harrell          Harrelson
Harris, J.       Harris, P.       Harwell
Holt             Houck            Inabinett
Jennings         Keegan           Kelley
Kennedy          Kinon            Koon
Law              Marchbanks       Martin
McAbee           McCraw           McLeod
McMahand         McTeer           Phillips
Rhoad            Riser            Scott
Sharpe           Shissias         Smith, D.
Snow             Spearman         Stille

Stoddard         Townsend         Tucker
Vaughn           Walker           Whipper
White            Wilder, D.       Wilder, J.
Wilkins          Williams         Witherspoon
Worley

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