Journal of the House of Representatives
of the Second Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 9, 1996

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| Printed Page 2770, Apr. 24 | Printed Page 2790, Apr. 24 |

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(2) Registrations are valid until the last day of the month in which the registration expires. The license fees charged during the conversion process must be prorated for the length of the license issued.

(B) After June 30, 1993, all licensees must be registered and licensed for twenty-four consecutive months, and the registrations expire on the last day of the twenty-fourth month. The registration and licensing of every licensee must be renewed biennially upon application by the holder and by payment of fees required by law to take effect on the first day of the month following the expiration of the registration and licensing to be renewed. This section does not prevent the Secretary of State's Office Department of Commerce from refusing to issue a license."

SECTION 483. Section 41-25-110 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 41-25-110. The provisions of this chapter may be enforced by any state agency having jurisdiction and authority to enforce this chapter, including, but not limited to:

(a) Secretary of State

(b) Division of Labor

(c)(b) Attorney General

(d)(c) Department of Consumer Affairs

(e)(d) South Carolina Law Enforcement Division

(f)(e) Circuit solicitors

(g)(f) Local law enforcement agencies

(h)(g) Any person who has been damaged by or has knowledge of any violation of the provisions of this chapter."

SECTION 484. Section 41-29-130 of the 1976 Code is amended to read:

"Section 41-29-130. General and special rules may be adopted, amended or rescinded by the Commission only after public hearing or opportunity to be heard thereon, of which proper notice has been given. Such notice shall be given by mail to the secretaries of the various commercial, business and trade organizations of the State who keep on file with the Commission their names and addresses for the purpose of receiving such notices. General rules shall become effective ten days after filing with the Secretary of State pursuant to the Administrative Procedures Act (Chapter 23, Title 1) and publication in one or more newspapers of general circulation in this State. Special rules shall become effective ten days after notification to or mailing to the last known address of the individuals or concerns affected thereby. Regulations may be adopted, amended or rescinded by the Commission and shall become effective in the manner and at the time prescribed by the Commission."


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SECTION 485. Section 41-43-40 of the 1976 Code, as last amended by Act 248 of 1991, is further amended to read:

"Section 41-43-40. The Governor shall appoint, upon the advice and consent of the Senate, one director from each congressional district and one from the State at large, who serves as chairman. Directors must have experience in the fields of business, commerce, finance, banking, real estate, or foreign trade. At least two directors must have direct commercial lending experience. The Governor and the Chairman of the State Development Board shall serve ex officio and may designate persons to represent them at meetings of the authority.

Directors serve for terms of three years; however, directors initially appointed from the first and sixth congressional districts and the State at large serve for three years; directors initially appointed from the second and fifth congressional districts serve for two years; and directors initially appointed from the third and fourth congressional districts serve for one year. Thereafter, all directors serve for a term of three years and until their successors are appointed and qualify. All vacancies must be filled for the unexpired term in the manner of the original appointment. Directors are not personally liable for losses unless the losses are occasioned by the wilful misconduct of the directors. Directors may be removed by the Governor for cause or at will. A certificate of the appointment or reappointment of any director must be filed in the offices of the Secretary of State Governor and the authority. The certificate is conclusive evidence of the due and proper appointment of a director."

SECTION 486. Section 42-7-200 of the 1976 Code, as last amended by Act 459 of 1994, is further amended to read:

"Section 42-7-200. (A) There is established within the office of the Second Injury Fund the South Carolina Workers' Compensation Uninsured Employers' Fund to ensure payment of workers' compensation benefits to injured employees whose employers have failed to acquire necessary coverage for employees. The fund must be administered by the director of the Second Injury Fund who shall establish procedures to implement this section.

When an employee makes a claim for benefits pursuant to Title 42 and the State Workers' Compensation Commission determines that the employer is subject to Title 42 and is operating without insurance or as an unqualified self-insurer, the commission shall notify the fund of the claim. The fund shall pay or defend the claim as it considers necessary in accordance with the provisions of Title 42.

When the fund is notified of a claim, the fund may place a lien on the assets of the employer by way of lis pendens or otherwise so as to protect


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the fund from payments of costs and benefits. If the fund is required to incur costs or expenses or to pay benefits, the fund has a lien against the assets of the employer to the full extent of all costs, expenses, and benefits paid and may file notice of the lien with the clerk of court or register of mesne conveyances of any county in which the employer has assets in the same manner as the filing of South Carolina tax liens and with the Secretary of State Department of Commerce in the same manner as utilized under Title 36 (Uniform Commercial Code). Any of the employer's assets sold or conveyed during the litigation of the claim must be sold or conveyed subject to the lien.

The fund has all rights of attachment set forth in Section 15-19-10 and has the right to proceed otherwise in the collection of its lien in the same manner as the Department of Revenue and Taxation is allowed to enforce a collection of taxes generally pursuant to Section 12-49-10, et seq. When all benefits due the claimant, as well as all expenses and costs of litigation, have been paid, the fund shall file notice of the total of all monies paid with the clerk of court in any county in which the employer has assets and with the Secretary of State Department of Commerce. This notice constitutes a judgment against the employer and has priority as a first lien in the same manner as liens of the Department of Revenue and Taxation, subject only to the lien of the Department of Revenue and Taxation pursuant to Section 12-49-10, et seq. If the employer files for bankruptcy or otherwise is placed into receivership, the fund becomes a secured creditor to the assets of the employer in the same manner as the Department of Revenue and Taxation has priority for unpaid taxes, subject only to the lien of the Department of Revenue and Taxation. The fund otherwise has all rights and remedies afforded the Department of Revenue and Taxation as set forth in Section 12-54-10, et seq.

(B) Nothing in this section precludes the South Carolina Workers' Compensation Uninsured Employers' Fund from entering into an agreement for the reimbursement of expenses, costs, or benefits paid by the fund. If an agreement is entered into subsequent to the filing of a lien, the lien may be canceled by the fund. Provided, however, an agreement between the fund and an employer under this section may provide that in the event the employer breaches the terms or conditions of the agreement, the fund may file or reinstate a lien, as the case may be. For purposes of this section, the term "costs' includes reasonable administrative costs which must be set by the director of the Second Injury Fund, subject to the approval of the Workers' Compensation Commission.

(C) To establish and maintain the South Carolina Workers' Compensation Uninsured Employers' Fund, there must be earmarked from


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the collections of the tax on insurance carriers and self-insured persons provided for in Sections 38-7-50 and 42-5-190 an amount sufficient to establish and annually maintain the fund at a level of not less than two hundred thousand dollars.

(D) When an employee makes a claim for benefits pursuant to Title 42 and the records of the South Carolina Workers' Compensation Commission indicate that the employer is operating without insurance, the South Carolina Workers' Compensation Uninsured Employers' Fund or any person designated by the director may subpoena the employer or its agents and require the production of any documents or records which the fund considers relevant to its investigation of the claim. The subpoena shall be returnable at the office of the fund or any place designated by it. In the case of refusal to obey a subpoena issued to any person or agent of any employer, a court of common pleas upon application of the fund may issue an order requiring the person or agent of an employer to appear at the fund and produce documentary evidence or give other evidence concerning the matter under inquiry."

SECTION 487. Section 44-7-1830 of the 1976 Code is amended to read:

"Section 44-7-1830. The term of office of the members of the board shall be six years. The initial terms however shall be adjusted in the following manner:

At the first meeting of the board, the initial terms of the eighteen representatives from the six counties shall be determined by lot with six of the members to serve a term of six years, six of the members to serve a term of four years, and six of the members to serve a term of two years. The Secretary of State Governor's Office shall be notified as to the terms established by lot.

The term of each member shall expire on the January first nearest to the end of the term of years for which he is appointed or as otherwise provided in the foregoing provisions; provided, that each member shall serve until his successor is appointed and qualified."

SECTION 488. Section 44-7-2030 of the 1976 Code is amended to read:

"Section 44-7-2030. The terms of office of the members of the board are for the length of time set forth in the enactment of the health services district but not to exceed six years. Initial terms must be established so that the terms of members of the board must expire on a staggered basis. Terms of board members must expire on a uniform date set forth in the enactment creating the health services district, provided, that each member shall serve until his successor is appointed and qualifies. Any vacancy


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shall be filled in the same manner as the original appointment for the unexpired portion of the term. A copy of the enactments of the respective counties or municipalities creating a health services district must be filed with the Secretary of State Governor's Office. The Secretary of State Governor's Office must be notified of the method established for staggering the terms of members of the board."

SECTION 489. Section 44-7-2120 of the 1976 Code is amended to read:

"Section 44-7-2120. All properties owned by a district, whether real, personal, or mixed, and the income from the properties, all securities issued by a district and the indentures and other instruments executed as security therefor, all leases made pursuant to the provisions of this article, and all revenues derived from these leases, and all deeds and other documents executed by or delivered to a district, are exempt from any and all taxation by the State or by any county, municipality, or other political subdivision of the State, including, but without limitation, license excise taxes imposed in respect of the privilege of engaging in any of the activities in which a district may engage. A district is not obligated to pay or allow any fees, taxes, or costs to the clerk of court, the Secretary of State, or the register of mesne conveyances in any county in respect of its incorporation, the amendment of its certificate of incorporation, or the recording of any document. The gross proceeds of the sale of any property owned by the district and used in the construction and equipment of any health care facilities for a district is exempt from all other and similar excise or sales taxes. It is the express intent of this section that any district authorized under this article incurs no tax liability to the State or any of its political subdivisions except to the extent that sales and use taxes may be payable on the purchases of goods or equipment by the district."

SECTION 490. Section 44-7-2153 of the 1976 Code is amended to read:

"Section 44-7-2153. (1) Within forty days following the adoption of the authorizing resolution, the applicant shall proceed to incorporate the district by filing for record in the office of the Secretary of State Governor a certificate of incorporation which shall comply with the requirements of this article and must be in the form and executed in the manner provided in this article.

(2) In addition to any other provisions required by this article, the certificate of incorporation of the district shall state:

(a) all information ordinarily included in the application for incorporation of corporations incorporated in this State;


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(b) the name of each authorizing subdivision together with the date on which the governing body of the subdivision adopted the authorizing resolutions;

(c) the method by which the district may be dissolved and provisions relating to the vesting of title to its assets and properties upon its dissolution;

(d) any matters relating to the district that the incorporators may choose to insert that are not inconsistent with this article or with the laws of this State.

(3) The certificate of incorporation must be signed and acknowledged by each of the incorporators before a notary public.

(4) When the certificate of incorporation is filed for record, there must be attached to it:

(a) a certified copy of each authorizing resolution;

(b) a certificate by the Secretary of State Governor's Office that the name of the district is not identical to that of any other corporation organized under the laws of the State or so nearly similar thereto as to lead to confusion or uncertainty.

(5) Upon filing for record the certificate of incorporation and, the documents required by subsection (4), the district is incorporated and constitutes a public corporation under the name set forth in its certificate of incorporation. The Secretary of State Governor's Office shall record the certificate of incorporation in an appropriate manner.

(6) The Secretary of State Governor's Office, subject to the requirements of this article, shall prescribe the exact form of the certificate of incorporation."

SECTION 491. Section 44-7-2154 of the 1976 Code is amended to read:

"Section 44-7-2154. The certificate of incorporation of any district incorporated under the provisions of this article, as well as that of any public hospital or corporation reincorporated under the provisions of this article, may be amended only upon the board of the district adopting a resolution proposing an amendment which amendment is subject to approval of the governing body of each authorizing subdivision or may be amended upon the initiative of the governing body of each authorizing subdivision. All these duly approved amendments must be filed with the Secretary of State Governor's Office in the same manner as with the original certificate of incorporation."

SECTION 492. Section 44-61-70 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:


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"Section 44-61-70. (a) The appropriate official of the department having authority over emergency services shall have authority to recommend suspension of the license, certificate or permit of any person, firm, corporation, association, county, district, municipality or metropolitan government or agency for noncompliance with this chapter or the standards or the rules and regulations promulgated pursuant thereto.

The department official, if he has reason to believe that reasonable grounds exist, shall recommend to the board the suspension or revocation of the authorization, license, permit or certification of the licensee and shall notify the licensee of his recommendation not less than thirty days before the board shall consider such recommendation. The notice shall specify the alleged grounds therefor and the licensee shall be offered an opportunity to be heard at the hearing of the board in answer thereto. The board, at a full evidentiary hearing, shall determine whether or not the authorization, license, permit or certification shall be suspended or revoked. The decision to suspend or revoke shall be by majority vote of the total membership of the board. Such decision shall constitute final administrative action and shall be subject to review by the Circuit Court upon petition filed with the court and a copy thereof served upon the secretary of the board within thirty days from the date of delivery of the decision of the board from which such person is appealing.

No suspension or revocation of a license, authorization, permit or certification shall be effective until such time as the question of suspension or revocation has been finally resolved and if a decision of the board is appealed in court, no such suspension or revocation shall be effective until a final court determination is made. Provided, however, that if the Director of the Department of Health and Environmental Control determines that a clear and present danger would exist to the public health, safety or welfare if the license, authorization, permit or certification were not immediately suspended or revoked, the suspension or revocation shall be immediate.

(b) Grounds for revocation or suspension of an authorization, license, permit or certification shall exist for violation of any rule or regulation prescribed by the Board if such rule or regulation has been duly filed with the Secretary of State pursuant to the Administrative Procedures Act (Chapter 23, Title 1).

(c) Whoever hinders, obstructs or interferes with an officer, inspector or duly authorized agent of the Department while in the performance of his duties or violates any provision of this chapter or rule or regulation of the Board promulgated pursuant thereto shall be deemed guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less


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than fifty dollars nor more than two thousand dollars or by imprisonment for not less than ten days nor more than six months for each offense. Any certificate of the Department in regard to the records of the Department shall be admissible in evidence in all prosecutions under this chapter."

SECTION 493. Section 44-61-150 of the 1976 Code is amended to read:

"Section 44-61-150. All rules and regulations promulgated by the Board shall be filed with the Secretary of State pursuant to the Administrative Procedures Act (Chapter 23, Title 1)."

SECTION 494. Section 44-79-80(4)(c) of the 1976 Code is amended to read:

"(c) If a corporation, a certified copy of the certificate of authority or good standing certificate from the Secretary of State Department of Commerce of South Carolina."

SECTION 495. Section 46-5-10 of the 1976 Code, as last amended by Act 248 of 1991, is further amended to read:

"Section 46-5-10. There is created the Agriculture Commission of South Carolina, to be composed of one member from each judicial circuit and one member from the State at large who shall be designated chairman. The Commissioner of Agriculture shall be a member, ex officio, but without the power to vote. All terms shall be for four years, except that of the chairman, who shall be appointed by the Governor and whose term shall be coterminous with the office of the Governor appointing. The chairman shall be an agricultural producer or grower of agricultural products. The member representing a judicial circuit shall be elected by the legislative delegations representing the circuit. Representation on the Commission shall be rotated among the counties of the circuit except by unanimous consent of all members of the legislative delegation representing the circuit. The Commissioner of Agriculture shall serve as secretary to the Commission. No one shall be appointed or elected who should attain the mandatory retirement age prior to the expiration of his term.

The legislative delegations representing the counties of each judicial circuit shall meet upon written call of a majority of the members of the delegations of each judicial circuit at a time and place to be designated in such call for the purpose of electing a member of the Commission to represent such circuit. A majority present, either in person or by written proxy, of the members of the county legislative delegations from a given circuit shall constitute a quorum for the purpose of electing a member, but no person shall be declared elected who shall fail to receive a majority vote of all the members of the county legislative delegations from the


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circuit. The joint county legislative delegations of each circuit shall be organized by the election of a chairman and a secretary and such joint legislative delegations shall, subject to the provisions herein, adopt such rules as they deem proper to govern the election. Any absentee may vote by written proxy. When the election is completed, the chairman and secretary of the joint county legislative delegations of each circuit shall immediately transmit the name of the person elected to the Secretary of State Governor who shall forthwith issue to such person, after he has taken the usual oath of office, a certificate of election as a member of the Agriculture Commission of South Carolina. The Governor shall thereupon issue a commission to such person and pending such issuance the certificate of election shall be a sufficient warrant to such person to perform all of the duties and functions of his office.

Any vacancy shall be filled in the manner as prescribed herein by election by the legislative delegations of the judicial circuit for the unexpired portion of the term.

The Commission shall meet on the call of the chairman or a majority of the members."

SECTION 496. Section 46-13-60(2)(a)(iii) of the 1976 Code, as last amended by Act 491 of 1990, is further amended to read:

"(iii) the name and address of a person, who may be the Secretary of State Attorney General, whose domicile is in the State, and who is authorized to receive and accept services of summons and legal notice of all kinds for the applicant;"

SECTION 497. Section 46-15-30 of the 1976 Code is amended to read:

"Section 46-15-30. Any rules and regulations made and promulgated under the provisions of paragraph (12) of Section 46-15-20 shall be filed with the Secretary of State pursuant to the Administrative Procedures Act (Chapter 23, Title 1) and shall be posted in a conspicuous place in each market. When so filed and posted such rules and regulations shall have the force and effect of law."

SECTION 498. Section 46-17-260 of the 1976 Code is amended to read:

"Section 46-17-260. Each commodity board is authorized to accept donations, gifts, and other property to be used for commodity board purposes. Each commodity board may exercise the powers and authority conferred by law upon corporations. It shall be the duty of the Commission to certify to the Secretary of State Governor the status and changes in the membership of each commodity board. All marketing orders and agreements receiving assent in referendum and all bylaws and


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rules and regulations pertaining thereto shall be filed in the office of the Secretary of State Governor."

SECTION 499. Section 46-19-20 of the 1976 Code is amended to read:

"Section 46-19-20. The Department shall investigate and consider all petitions for local marketing authorities filed with it and, if a need for such local authority and reasonable chances for success shall appear, the department shall certify such facts to the Secretary of State Department of Commerce who, without charge, shall issue a certificate of incorporation to the local marketing authority."

SECTION 500. Section 46-33-40 of the 1976 Code is amended to read:

"Section 46-33-40. As a further condition precedent for doing business in this State any person to whom the provisions of Section 46-33-10 apply shall appoint the Secretary of State Attorney General as his agent to accept service in any suit brought against him for the violation of the conditions of the bond required by Section 46-33-20."

SECTION 501. Section 46-39-30 of the 1976 Code is amended to read:

"Section 46-39-30. They shall file with the Secretary of State Department of Commerce a written petition signed by themselves setting forth:

(1) The names and residences of the petitioners;

(2) The name of the proposed association which shall include the words `Farmers Association';

(3) The place at which it proposes to have its principal place of business;

(4) The amount of capital stock of the association and how and when payable;

(5) The number of shares into which the capital stock is to be divided and the par value of each share; and

(6) All other matters which may be desirable to set forth or which the Secretary of State Department of Commerce may require."

SECTION 502. Section 46-39-40 of the 1976 Code is amended to read:

"Section 46-39-40. Upon the filing of the petition as above and upon the payment of the fee for filing such petition, the Secretary of State Department of Commerce shall issue to the petitioners a commission constituting them a board of incorporators and authorizing them to open books of subscription to the capital stock of the proposed association after


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