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Amend title to conform.

Rep. CROMER explained the amendment.

Rep. SIMRILL objected to the Bill.

Rep. CROMER continued speaking.

Reps. YOUNG-BRICKELL, MEACHAM, R. SMITH, INABINETT, KELLEY, McMAHAND, HARRELL, SANDIFER, WALKER, CAVE, WOFFORD and WITHERSPOON objected to the Bill.

Rep. TUCKER moved that the House recur to the morning hour, which was agreed to.

The following was received.
Columbia, S.C., May 21, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 571:

S. 571 -- Senator Peeler: A BILL TO AMEND SECTION 12-36-2680, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE USE OF SALES TAX EXEMPTION CERTIFICATES MAINTAINED ON FILE USED IN MAKING VARIOUS TAX EXEMPT PURCHASES, SO AS TO DELETE THE REQUIREMENT THAT THE PURCHASER SIGN THE INVOICE AND TO MAKE THIS DELETION EFFECTIVE FOR EXEMPT SALES MADE ON OR AFTER JANUARY 1, 1995.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

The following was received.
Columbia, S.C., May 21, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 1084:

S. 1084 -- Judiciary Committee: A BILL TO AMEND TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALCOHOL AND ALCOHOLIC BEVERAGES, BEER AND WINE, BY ADDING CHAPTERS 2, 4, 6, 8, 10, AND 12 SO AS TO PROVIDE FOR THE REGULATION, TRANSPORTATION, POSSESSION, CONSUMPTION, LICENSING, SALE, AND PENALTIES REGARDING ALCOHOLIC BEVERAGES, BEER AND WINE, AND TO MAKE CERTAIN TECHNICAL CHANGES; BY ADDING SECTION 12-33-245 SO AS TO PROVIDE FOR THE RATE AT WHICH MINIBOTTLES MUST BE TAXED; BY ADDING SECTION 12-33-475 SO AS TO PROVIDE FOR THE TAX EXEMPTION OF ALCOHOLIC LIQUORS SOLD TO THE UNITED STATES GOVERNMENT INSTRUMENTALITY FOR MILITARY PURPOSES; TO AMEND SECTION 6-27-40, AS AMENDED, RELATING TO THE DISTRIBUTION OF MONIES APPROPRIATED TO THE LOCAL GOVERNMENT FUND, SO AS TO CHANGE A CODE REFERENCE; AND TO REPEAL CHAPTERS 1, 3, 5, 7, 9, 11, AND 13 OF TITLE 61, RELATING TO GENERAL PROVISIONS REGARDING ALCOHOLIC BEVERAGES, BEER AND WINE, AND LICENSES, ALCOHOLIC BEVERAGE CONTROL ACT, REGULATION OF THE TRANSPORTATION, POSSESSION, CONSUMPTION, AND SALE OF ALCOHOLIC BEVERAGES; IMPORTATION OF ALCOHOLIC BEVERAGES, BEER, WINE, ALE, PORTER, ALCOHOL; AND NUISANCES AND ENFORCEMENT.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

The following was received.
Columbia, S.C., May 21, 1996
Mr. Speaker and Members of the House:

The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to H. 4584:

H. 4585 -- Rep. Klauber: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-275 SO AS TO PROVIDE THAT NO INSURANCE POLICY WHICH PROVIDES COVERAGE FOR DRUGS SHALL EXCLUDE COVERAGE OF ANY SUCH DRUG USED FOR THE TREATMENT OF CANCER ON THE GROUNDS THAT THE DRUG HAS NOT BEEN APPROVED BY THE FEDERAL FOOD AND DRUG ADMINISTRATION FOR THE TREATMENT OF THE SPECIFIC TYPE OF CANCER FOR WHICH THE DRUG HAS BEEN PRESCRIBED, AND TO PROVIDE FOR RELATED MATTERS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President

Received as information.

The following was introduced:

H. 5048 -- Reps. J. Brown and Scott: A CONCURRENT RESOLUTION TO CONGRATULATE MR. WILLIE M. MCLAUGHLIN FOR BEING ELECTED AS THE FIRST AFRICAN-AMERICAN SOUTH CAROLINA DEPARTMENT COMMANDER OF THE AMERICAN LEGION AND TO EXTEND BEST WISHES FOR MUCH CONTINUED SUCCESS IN HIS FUTURE ENDEAVORS.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

The following was introduced:

H. 5049 -- Reps. J. Brown, Scott and Byrd: A CONCURRENT RESOLUTION TO RECOGNIZE AND CONGRATULATE MR. WILLIAM LARK FOR BEING ELECTED THE FIRST

The Concurrent Resolution was agreed to and ordered sent to the Senate.

The following Bill was taken up, read the second time, and ordered to a third reading:

S. 876 -- Senator Bryan: A BILL TO AMEND ACT 779 OF 1988, RELATING TO LAURENS COUNTY SCHOOL DISTRICTS 55 AND 56, SO AS TO REVISE THE PROVISIONS FOR SCHOOL DISTRICT 56.

The motion of Rep. LIMBAUGH to reconsider the vote whereby debate was adjourned on the following Bill was taken up.

S. 921 -- Senators Bryan, Elliott, Reese, Wilson, Gregory, Leatherman and Washington: A BILL TO AMEND SECTION 1-23-120 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL ASSEMBLY APPROVAL OF REGULATIONS, SO AS TO PROVIDE THAT ALL REGULATIONS REQUIRING GENERAL ASSEMBLY REVIEW SHALL EXPIRE FIVE YEARS AFTER THEIR EFFECTIVE DATE, UNLESS SUBSEQUENTLY APPROVED FOR ADDITIONAL PERIODS OF FIVE YEARS.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\amend\PFM\9383AC.96), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 1-23-10(4) of the 1976 Code is amended to read:

"(4) `Regulation' means each agency statement of general public applicability that implements or prescribes law or policy or practice requirements of any agency except policy or guidance may not be used in lieu of regulation. The term `regulation' includes the amendment or repeal of a prior regulation but does not include descriptions of agency procedures applicable only to agency personnel; criteria or guidance that

SECTION 2. Section 1-23-110(A)(3)(c) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(c) a narrative preamble and either the text or a synopsis of the proposed regulation;. The preamble shall include a section-by-section discussion of the proposed regulation and a justification for any provision not required to maintain compliance with federal law including, but not limited to, grant programs;"

SECTION 3. Section 1-23-110(A)(3)(g) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(g) statement of the need and reasonableness of the regulation as determined by the agency based on an analysis of the factors listed in Section 1-23-115(C)(1) through (11). At no time is an agency required to include items (4) through (8) in the reasonableness and need determination. However, comments related to items (4) through (8) received by the agency during the public comment periods must be made part of the official record of the proposed regulations."

SECTION 4. Section 1-23-111 of the 1976 Code, as added by Act 181 of 1993, is amended to read:

"Section 1-23-111. (A) When a public hearing is held pursuant to this article involving the promulgation of regulations by a department for which the governing authority is a single director, it shall must be conducted by an administrative law judge assigned by the chief judge. When a public hearing is held pursuant to this article involving the promulgation of regulations by a department for which the governing authority is a board or commission, it shall must be conducted by the board or commission, with the chairman presiding. The administrative

(B) After allowing all written material to be submitted and recorded in the record of the public hearing no later than five working days after the hearing ends, unless the presiding official orders an extension for not more than twenty days, the presiding official must shall issue a written report which must shall include findings as to the need and reasonableness of the proposed regulation based on an analysis of the factors listed in Section 1-23-115(C)(1) through (11), except items (4) through (8), and other factors as the presiding official identifies and may include suggested modifications to the proposed regulations in the case of a finding of lack of need or reasonableness.

(C) If the presiding official determines that the need for or reasonableness of the proposed regulation has not been established, the agency must shall elect to:

(a) follow the suggested modifications of the presiding official and submit the proposed regulation for legislative approval pursuant to Section 1-23-120 modify the proposed regulation by including the suggested modifications of the presiding official;

(b) not modify the proposed regulation but submit the proposed regulation as originally drafted for legislative approval pursuant to Section 1-23-120 with a copy of the presiding official's report attached in accordance with the presiding official's suggested modifications in which case the agency shall submit to the General Assembly, along with the promulgated regulation submitted for legislative review, a copy of the presiding official's written report; or

SECTION 5. Section 1-23-115(A) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(A) Upon written request by two members of the General Assembly, made before submission of a promulgated regulation to the General Assembly for legislative review, a regulation that has a substantial economic impact must have an assessment report prepared pursuant to this section and in accordance with the procedures contained in this article. In addition to any other method as may be provided by the General Assembly, the legislative committee to which the promulgated regulation has been referred, by majority vote, may send a written notification to the promulgating agency informing the agency that the committee cannot approve the promulgated regulation unless an assessment report is prepared and provided to the committee. The written notification tolls the running of the one-hundred-twenty-day legislative review period, and the period does not begin to run again until an assessment report prepared in accordance with this article is submitted to the committee. Upon receipt of the assessment report, additional days must be added to the days remaining in the one-hundred-twenty-day review period, if less than twenty days, to equal twenty days. A copy of the assessment report must be provided to each member of the committee."

SECTION 6. Section 1-23-115(C) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"(C) At a minimum, The preliminary and final assessment report reports required by this section must disclose the effects of the proposed regulation on the public health and environmental welfare of the community and State and the effects of the economic activities arising out of the proposed regulation. Both the preliminary and final reports required by this section may include:

(1) a description of the regulation, the purpose of the regulation, the legal authority for the regulation, and the plan for implementing the regulation;

(2) a determination of the need for and reasonableness of the regulation as determined by the agency based on an analysis of the factors listed in this subsection and the expected benefit of the regulation;

(3) a determination of the costs and benefits associated with the regulation and an explanation of why the regulation is considered to be the most cost effective, efficient, and feasible means for allocating public and private resources and for achieving the stated purpose;

(5) the effect of the regulation on the cost of living and doing business in the geographical area in which the regulation would be implemented;

(6) the effect of the regulation on employment in the geographical area in which the regulation would be implemented;

(7) the source of revenue to be used for implementing and enforcing the regulation;

(8) a conclusion on the short-term and long-term economic impact upon all persons substantially affected by the regulation, including an analysis containing a description of which persons will bear the costs of the regulation and which persons will benefit directly and indirectly from the regulation;

(9) the uncertainties associated with the estimation of particular benefits and burdens and the difficulties involved in the comparison of qualitatively and quantitatively dissimilar benefits and burdens. A determination of the need for the regulation must shall consider qualitative and quantitative benefits and burdens;

(10) the effect of the regulation on the environment and public health;

(11) the detrimental effect on the environment and public health if the regulation is not implemented. An assessment report must not consider benefits or burdens on out-of-state political bodies or businesses. The assessment of benefits and burdens which cannot be precisely quantified may be expressed in qualitative terms. This subsection must not be interpreted to require numerically precise cost-benefit analysis. At no time is an agency required to include items (4) through (8) in a preliminary assessment report or statement of the need and reasonableness; however, these items may be included in the final assessment report prepared by the division."

SECTION 7. Section 1-23-120(A) of the 1976 Code, as last amended by Act 507 of 1992, is further amended to read:

"(A) All regulations except those specifically exempted under this section must be submitted to the General Assembly for review in accordance with this article, but no regulation may be submitted to the General Assembly more than one year after publication of the drafting notice initiating the regulation pursuant to Section 1-23-110. A regulation submitted to the General Assembly for review may not be withdrawn or modified by the agency for any reason except upon written notification by a committee that the committee by majority vote cannot approve the regulation in the form submitted, as provided for in Section 1-23-125."

"(I) Each state agency which promulgates regulations or to which the responsibility for administering regulations has been transferred shall by July 1, 1997, and every five years thereafter, conduct a formal review of all regulations which it has promulgated or for which it has been transferred the responsibility of administering, except that those regulations described in subsection (G) are not subject to this review. Upon completion of the review, the agency shall submit to the Code Commissioner a report which identifies those regulations:

(1) for which the agency intends to begin the process of repeal in accordance with this article;

(2) for which the agency intends to begin the process of amendment in accordance with this article; and

(3) which do not require repeal or amendment.

Nothing in this subsection may be construed to prevent an agency from repealing or amending a regulation in accordance with this article before or after it is so identified in the report to the Code Commissioner."

SECTION 9. Section 1-23-125 of the 1976 Code, as last amended by Act 605 of 1988, is further amended to read:

"(A) The legislative committee to which a regulation is submitted is not authorized to amend a particular regulation and then introduce a joint resolution approving the regulation as amended; however, this provision does not prevent the introduction of a resolution disapproving one or more of a group of regulations submitted to the committee and approving others submitted at the same time or deleting a clearly separable portion of a single regulation and approving the balance of the regulation in the committee resolution. An agency may not withdraw from or modify a regulation under legislative review unless the agency receives written notification, as provided for in this section, from a committee that the committee by majority vote cannot approve the regulation in the form submitted.

(B) If a majority of a committee determines that it cannot approve a regulation in the form submitted, it shall notify the promulgating agency in writing along with its recommendations as to changes that would be necessary to obtain committee approval. The agency may:

(a)(1) withdraw the regulation from the General Assembly and resubmit it with the recommended changes to the Speaker and the Lieutenant Governor, but any regulation not resubmitted within thirty days is considered permanently withdrawn;

(b)(2) withdraw the regulation permanently;

(C) The notification tolls the one-hundred-twenty-day period for automatic approval, and when an agency withdraws regulations from the General Assembly prior to the time a committee resolution to approve or disapprove the regulation has been introduced, the remainder of the period begins to run only on the date the regulations are resubmitted to the General Assembly. Upon resubmission of the regulations, additional days must be added to the days remaining in the review period for automatic approval, if less than twenty days, to equal twenty days, and a copy of the amended regulation must be given to each member of the committee. If an agency decides to take no action pursuant to item (c)(3), it shall notify the committee in writing, and the remainder of the period begins to run only upon this notification.

(D) The provisions of This section, as they apply it applies to approval, disapproval, or modification of regulations, do does not apply to joint resolutions introduced by other than the committees to which regulations are initially referred by the Lieutenant Governor or the Speaker of the House of Representatives.

(E) When any If a regulation, when finally promulgated, includes a substantive change in the content of the regulation as proposed and published in the State Register, and the substantive change was not raised, considered, or discussed by public comment required in Section 1-23-110, the regulation must be refiled by the agency with the Legislative Council and published as revised in the State Register and processed as a new regulation in accordance with the provisions of this article."

SECTION 10. Section 8 of this act takes effect July 1, 1997, and applies to regulations which became effective before this date and on and after this date. All other sections of this act take effect upon approval by the Governor and apply to any regulation which has not been submitted to the General Assembly for the prescribed legislative review as provided for in Title 1, Chapter 23, Article 1 of the 1976 Code./

Renumber sections to conform.

Amend totals and title to conform.

Rep. D. SMITH explained the amendment.

The amendment was then adopted.

Rep. SHARPE proposed the following Amendment No. 2.

Amend the bill as and if amended:

Section 1. Section 1-23-10(4) of the 1976 code is amended to read:

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