Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:30 A.M., the hour to which it stood adjourned and was called to order by the PRESIDENT.

A quorum being present the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, hear "the last words of King David," recorded in Second Samuel (vv. 23:3-4):

"The God of Israel has spoken, the

Rock of Israel has said to me:

'One who rules over people justly,

ruling in the fear of God,

Is like the light of morning,

like the sun rising on a cloudless

morning, gleaming from the rain on

the grassy land'."
Let us pray.

God of ancient days and of our day: Excite us with zest and zeal for the progressive fashioning of the South Carolina of our dreams and prayers.

Free us from the contravening currents of confusion that sometimes come into play about this time in our sessions.

Help us to see ourselves in the tradition of those who heard King David say, "One who rules over people justly, ruling in the fear of God, is like the light of morning."

Amen.

The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.

May 23, 1995
Mr. President and Members of the Senate:

I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.

Respectfully,
David M. Beasley

Initial Appointments, Aiken County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Ms. Carolyn P. Williams, 672 Kershaw Street, Aiken, S.C. 29801 VICE Albert Bradley

Mr. Carl S. Insley, Post Office Box 636, Langley, S.C. 29834 VICE Ralph Barber

Received as information.

Reappointments, Aiken County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Olin T. Corbett, Post Office Box 422, Salley, S.C. 29137-0422

Honorable Gibson O'Neal Fallaw, Jr., 394 Farmview Road, Batesburg, S.C. 29006

Honorable Julian M. Williams, 1047 Minter Avenue, Langley, S.C. 29834-7553

Received as information.

Reappointments, Richland County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable William T. Smith, Jr., 6605 Arcadia Woods Road, Columbia, S.C. 29206

Honorable Michael R. Davis, 233 King Charles Road, Columbia, S.C. 29209

Received as information.

Reappointment, Newberry County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

The Honorable Hammie J. Smith, Post Office Box 198, Peak, S.C. 29122-0198

Received as information.

Reappointment, Berkeley County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

The Honorable Oliver Levine, 1120 Calamus Pond Road, Summerville, S.C. 29483

Received as information.

Initial Appointments, Berkeley County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

The Honorable David G. Brown, 5928 Commonwealth Circle, Hanahan, S.C. 29406 VICE William H. Hatchett

Ms. Ellen L. Karesh, 20 Montclair Avenue, Goose Creek, S.C. 29445 VICE Joey F. Murray

Received as information.

Initial Appointments, Anderson County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Mr. Roger D. Scott, Post Office Box 6, Pelzer, S.C. 29669 VICE Joe T. Branyon (retired)

The Honorable Nancy Wilson Devine, 121 Wilson Road, Williamston, S.C. 29697 VICE Charles A. McDowell

Received as information.

Reappointment, Anderson County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

Honorable John M. McCoy, 601 Saluda Drive, Piedmont, S.C. 29673

Received as information.

May 24, 1995
Mr. President and Members of the Senate:

I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.

Respectfully,
David M. Beasley

Reappointments, Aiken County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Max A. Meek, 1680 Richland Avenue, West, Aiken, S.C. 29801

Honorable Rodger E. Edmonds, Post Office Box 6493, North Augusta, S.C. 29841-6493

Honorable Joey Lee Addie, 14 Masonic Shopping Center, Graniteville, S.C. 29829

Received as information.

Reappointment, Aiken County Magistrate, with term to commence May 21, 1995, and to expire April 30, 1999:

Honorable Gail H. Shaw, Post Office Box 40, New Ellenton, S.C. 29809-0040

Received as information.

Reappointment, Newberry County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

The Honorable Luke B. Hart, 313 Main Street, Whitmire, S.C. 29178

Received as information.

Reappointments, Berkeley County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Harry Lee Wright, 1619 Old Highway 6, Cross, S.C. 29436

Honorable Perry L. Murray, 108 Belknap Road, Goose Creek, S.C. 29445

The Honorable Edward L. Sessions, 1064 Dominion Drive, Hanahan, S.C. 29405

Honorable McGregor T. Dennis, Post Office Box 40, Bonneau, S.C. 29431

Honorable Ervin Brown, 1133 Schurlknight Road, St. Stephen, S.C. 29479

Honorable Thomas F. Mitchum, HC 69 Box 1570, Moncks Corner, S.C. 29461

Received as information.

Initial Appointments, Berkeley County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Ms. Elizabeth S. Harper, 141 Waterloo Drive, Moncks Corner, S.C. 29461 VICE Ira M. Grady, Jr.

Ms. Karen D. Hightower, 112 Milton Drive, Goose Creek, S.C. 29445 VICE Pamela J. Polzin

Received as information.

Reappointments, Anderson County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Thomas H. Williams, 1807 Highway 243, Townville, S.C. 29689

Honorable James T. Busby, Jr., 1200 Good Hope Church Road, Starr, S.C. 29684

Honorable John C. Suber, 330 Hamilton Street, Williamston, S.C. 29697

Honorable Carl E. Anderson, 107 South Main Street, Anderson, S.C. 29622

Honorable John B. Ashley, Sr., Post Office Box 214, Honea Path, S.C. 29654

Honorable David L. Crenshaw, 804 Cherry Street, Pendleton, S.C. 29670

Honorable Robert G. Gilstrap, 108 Olivarri Drive, Anderson, S.C. 29621

Honorable William P. Steele, Jr., 100 South Main Street, Anderson, S.C. 29624

Honorable Sherry E. Mattison, Post Office Box 828, Belton, S.C. 29627

The Honorable Clarence R. Gentry, 7626 Highway 81, Starr, S.C. 29684

Received as information.

Reappointments, Fairfield County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Marion C. Smith, 308 Carlisle Avenue, Winnsboro, S.C. 29180

The Honorable William F. Pope, Route 1, Box 195-R, Winnsboro, S.C. 29180

Received as information.

Reappointment, Marlboro County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

Honorable Sidney McLaurin Rogers, Post Office Box 1313, Bennettsville, S.C. 29512

Received as information.

May 25, 1995
Mr. President and Members of the Senate:

I am transmitting herewith appointments for confirmation. These appointments are made with the "advice and consent of the Senate," and are, therefore, submitted for your consideration.

Respectfully,
David M. Beasley

Reappointments, Lexington County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Bruce Rutland, 650 Knox Abbott Drive, Cayce, S.C. 29033

Honorable William Gregory Shockley, 2029 Highway 178, Swansea, S.C. 29160

Honorable George Marion Shealy, Post Office Box 253, Batesburg, S.C. 29006

The Honorable Llewellyn H. Hames, 672 Old Friars Road, Columbia, S.C. 29210

Honorable Shirley M. Sons, 521 Gibson Road, Lexington, S.C. 29072

Received as information.

Reappointments, Fairfield County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable John J. Hood, Jr., Post Office Box 423, Winnsboro, S.C. 29180

Honorable Thomas A. Jackson, Route 1, Box 1064, Great Falls, S.C. 29055

Received as information.

May 26, 1995
Mr. President and Members of the Senate:

I am transmitting herewith an appointment for confirmation. This appointment is made with the "advice and consent of the Senate," and is, therefore, submitted for your consideration.

Respectfully,
David M. Beasley

Reappointment, Lexington County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

Honorable Thomas H. Rawl, III, 304 South Lake Drive, Lexington, S.C. 29072

Received as information.

The Honorable Marshall B. Williams
President Pro Tempore
South Carolina Senate
Post Office Box 142
Columbia, S.C. 29202

Dear Senator Williams:

This refers to R. 67 (1995), which provides for the redistricting of the Senate of the State of South Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights Act, 42 U.S.C. 1973c. We received your submission on May 17, 1995; supplemental information was received May 23 and 24, 1995.

The Attorney General does not interpose any objection to the specified change. However, we note that Section 5 expressly provides that the failure of the Attorney General to object does not bar subsequent litigation to enjoin the enforcement of the change. In addition, as authorized by Section 5, we reserve the right to reexamine this submission if additional information that would otherwise require an objection comes to our attention during the remainder of the sixty-day review period. See the Procedures for the Administration of Section 5 (28 C.F.R. 51.41 and 51.43).

Because the redistricting of the South Carolina Senate is at issue in Statewide Reapportionment Advisory Committee v. Beasley, C.A. Nos. 3:91-3310-1 and 3:91-2983-1 (D.S.C.), we are filing a Notice of Decision in that case which attaches a copy of this determination letter.

Sincerely,
Deval L. Patrick
Assistant Attorney General
Civil Rights Division

May 30, 1995
Mr. Frank Caggiano
Clerk of the Senate
Post Office Box 142
Columbia, S.C. 29202

Dear Mr. Caggiano:

Under date of May 30, 1995, the State Election Commission certified to this office the results of the election of Senate District Seven held in Greenville County on May 23, 1995. The certification shows that Honorable Sammy Boan has been elected Senator for Senate District Seven.

I, therefore, certify that the Honorable Sammy Boan has been elected as Senator for Senate District Seven for a term as prescribed by law.

Yours very truly,
Jim Miles
Secretary of State

May 30, 1995
The Honorable Bob Peeler
Lieutenant Governor
State House, 1st Floor, East Wing
Post Office Box 142
Columbia, S.C. 29211

Dear Lieutenant Governor Peeler:

This is to advise that Mr. Sammy Boan, Republican, was certified as the official winner at a special election for Senate District 7 held in Greenville County on May 23, 1995.

Very truly yours,
James F. Hendrix
Executive Director

The PRESIDENT recognized Senator WILLIAMS who welcomed Senator O. SAMUEL "SAMMY" BOAN, JR., District 7 (Greenville County).

On motion of Senator WILLIAMS, with unanimous consent, Senator BOAN presented himself at the Bar and the oath of office was administered to him by the PRESIDENT.

Desk 45           Senator BOAN

Columbia, S.C., May 30, 1995

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Breeland, Waldrop and Whatley of the Committee of Conference on the part of the House on:
H. 3135 -- Reps. Hodges, Tucker, Knotts, Inabinett, Baxley and Whatley: A BILL TO AMEND SECTION 23-28-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPOINTMENT OF RESERVE POLICE OFFICERS, SO AS TO AUTHORIZE THE CHIEF, WITH THE APPROVAL OF THE MUNICIPALITY, TO PROVIDE FOR THE COMPENSATION OF RESERVE POLICE OFFICERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., May 30, 1995

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3952 -- Rep. McAbee: A BILL TO ESTABLISH THE BOARD OF ELECTION AND REGISTRATION FOR MCCORMICK COUNTY, TO ABOLISH THE OFFICE OF COMMISSIONERS OF ELECTION AND THE REGISTRATION BOARD FOR MCCORMICK COUNTY, AND DEVOLVE THE POWERS AND DUTIES OF THE COMMISSIONERS OF ELECTION AND THE REGISTRATION BOARD UPON THE BOARD OF ELECTION AND REGISTRATION, PROVIDE FOR APPROPRIATIONS FOR THE OPERATION OF THE BOARD, PROVIDE FOR NECESSARY OFFICE SPACE, TELEPHONE SERVICE, AND EQUIPMENT FOR THE BOARD, AND TO PROVIDE THAT THE CURRENT MEMBERS OF THE MCCORMICK COUNTY ELECTION COMMISSION AND THE MCCORMICK COUNTY REGISTRATION BOARD SHALL ACT AS THE GOVERNING COMMISSION OF THE NEW MCCORMICK COUNTY BOARD OF ELECTION AND REGISTRATION UNTIL THE MEMBERS OF THE NEW BOARD APPOINTED AS PROVIDED BY THIS ACT TAKE OFFICE, AT WHICH TIME THE TERMS OF THE FORMER COMMISSIONERS OF ELECTION AND REGISTRATION BOARD MEMBERS SHALL EXPIRE.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Senator WILSON introduced Dr. Robert Mearns of Lexington, S.C., Doctor of the Day.

S. 365 -- Senators Setzler, Stilwell, Cork, Moore, Lander, Courson and Leventis: A BILL TO AMEND SECTION 59-103-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION AND THE MANNER IN WHICH THE CHAIRMAN IS SELECTED; TO AMEND SECTION 59-103-60, RELATING TO RECOMMENDATIONS OF THE COMMISSION ON HIGHER EDUCATION TO THE BUDGET AND CONTROL BOARD AND THE GENERAL ASSEMBLY, SO AS TO INCLUDE THE GOVERNOR'S OFFICE AS A RECIPIENT OF SUCH RECOMMENDATIONS AND DELETE THE BUDGET AND CONTROL BOARD AND PROVIDE THAT THE HOUSE WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE AS WELL AS THE BUDGET AND CONTROL BOARD MAY REFER TO THE COMMISSION CERTAIN REQUESTS OF INSTITUTIONS OF HIGHER LEARNING; AND TO AMEND SECTION 59-103-90, RELATING TO THE PROFESSIONAL STAFF OF THE COMMISSION, SO AS TO PROVIDE THAT THE EXECUTIVE DIRECTOR SHALL BE APPOINTED BY THE COMMISSION TO SERVE AT ITS PLEASURE WITH NO GRIEVANCE RIGHTS, AND TO PROVIDE THAT THE OTHER PROFESSIONAL STAFF COMPLEMENT OF THE COMMISSION SHALL BE ESTABLISHED BY THE EXECUTIVE DIRECTOR RATHER THAN THE COMMISSION.

On motion of Senator SETZLER, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator SETZLER spoke on the report.

On motion of Senator SETZLER, with unanimous consent, Free Conference Powers were granted.

Whereupon, the PRESIDENT appointed Senators SETZLER, BRYAN and STILWELL to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

On motion of Senator SETZLER, the Report of the Committee of Free Conference to S. 365 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 365 -- Senators Setzler, Stilwell, Cork, Moore, Lander, Courson and Leventis: A BILL TO AMEND SECTION 59-103-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE COMMISSION ON HIGHER EDUCATION, SO AS TO REVISE THE MEMBERSHIP OF THE COMMISSION AND THE MANNER IN WHICH THE CHAIRMAN IS SELECTED; TO AMEND SECTION 59-103-60, RELATING TO RECOMMENDATIONS OF THE COMMISSION ON HIGHER EDUCATION TO THE BUDGET AND CONTROL BOARD AND THE GENERAL ASSEMBLY, SO AS TO INCLUDE THE GOVERNOR'S OFFICE AS A RECIPIENT OF SUCH RECOMMENDATIONS AND DELETE THE BUDGET AND CONTROL BOARD AND PROVIDE THAT THE HOUSE WAYS AND MEANS COMMITTEE AND THE SENATE FINANCE COMMITTEE AS WELL AS THE BUDGET AND CONTROL BOARD MAY REFER TO THE COMMISSION CERTAIN REQUESTS OF INSTITUTIONS OF HIGHER LEARNING; AND TO AMEND SECTION 59-103-90, RELATING TO THE PROFESSIONAL STAFF OF THE COMMISSION, SO AS TO PROVIDE THAT THE EXECUTIVE DIRECTOR SHALL BE APPOINTED BY THE COMMISSION TO SERVE AT ITS PLEASURE WITH NO GRIEVANCE RIGHTS, AND TO PROVIDE THAT THE OTHER PROFESSIONAL STAFF COMPLEMENT OF THE COMMISSION SHALL BE ESTABLISHED BY THE EXECUTIVE DIRECTOR RATHER THAN THE COMMISSION.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the bill do pass amended as follows:

Strike all after the enacting words and insert:

/SECTION   1.   Section 59-103-10 of the 1976 Code is amended to read:

"Section 59-103-10.   There is created the State Commission on Higher Education. Two members must be appointed by the Governor from each congressional district upon the recommendation of the majority of the legislative delegation members from the district. Six members must be appointed by the Governor from the State at large with the advice and consent of the Senate. Members must be appointed for terms of four years and until their successors are appointed and qualify. No one is eligible to serve on the commission for more than two consecutive terms. A term served by a member which is less than a full four-year term must not be counted in determining when a member has served the maximum number of terms. No member may be an employee or member of a governing body of a public or private institution of higher learning in this State. The commission shall consist of fourteen members appointed by the Governor. The membership must consist of one at-large member to serve as chairman, one representative from each of the six congressional districts, three members appointed from the State at-large, three representatives of the public colleges and universities, and one representative of the independent colleges and universities of South Carolina.

The membership of the Commission on Higher Education must be as follows:

(1)   Nine members, six to represent each of the congressional districts of this State appointed by the Governor upon the recommendation of the majority of the legislative delegation members from the district and three members appointed from the State at-large upon the advice and consent of the Senate. Each representative of a congressional district must be a resident of the congressional district they represent. In order to qualify for appointment, the representatives from the congressional districts and those appointed at-large must have experience in at least one of the following areas: business, the education of future leaders and teachers, management, or policy. A member representing the congressional districts or appointed at-large must not have been, during the succeeding five years, a member of a governing body of a public institution of higher learning in this State and must not be employed or have immediate family members employed by any of the public colleges and universities of this State. These members must be appointed for terms of four years and shall not serve on the commission for more than two consecutive terms. However, the initial term of office for a member appointed from an even-numbered congressional district shall be two years.

If the boundaries of the congressional districts are changed, members serving on the commission shall continue to serve until the expiration of their current terms, but successors to members whose terms expire must be appointed from the newly defined congressional districts. If a congressional district is added, the commission must be enlarged to include a representative from that district.

(2)   Three members to serve ex officio to represent the public colleges and universities appointed by the Governor with the advice and consent of the Senate. It shall not be a conflict of interest for any voting ex officio member to vote on matters pertaining to their individual college or university. One member must be serving on the board of trustees of one of the public senior research institutions, one member must be serving on the board of trustees of one of the four-year public institutions of higher learning, and one member must be a member of one of the local area technical education commissions or the State Board for Technical and Comprehensive Education to represent the State Board for Technical and Comprehensive Education. These members must be appointed to serve terms of two years with terms to rotate among the institutions.

(3)   One ex officio member to represent the independent colleges and universities by the Governor upon the advice and consent of the Senate. The individual appointed must be serving as a member of the Advisory Council of Private College Presidents. This member must be appointed for a term of two years and shall serve as a nonvoting member.

(4)   One at-large member to serve as chairman appointed by the Governor with the advice and consent of the Senate. This member must be appointed for a term of four years and may be reappointed for one additional term, however, he may serve only one term as chairman.

The Governor, by his appointments, shall assure that various economic interests and minority groups, especially women and blacks, are fairly represented on the commission and shall attempt to assure that the graduates of no one public or private college or technical college are dominant on the commission. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term. All members of the commission shall serve until their successors are appointed and qualify. The chairman of the commission must be elected annually by the members of the commission and may not serve as chairman for more than four consecutive years. Members recommended by the General Assembly must be residents of the appropriate congressional district. If the boundaries of congressional districts are changed, members serving on the commission continue to serve until the expiration of their terms, but successors to members whose terms expire must be appointed from the newly defined congressional district. If a congressional district is added, the commission must be enlarged to include representation from that district."

SECTION   2.   The 1976 Code is amended by adding:

"Section 59-103-45.   In addition to the powers, duties, and functions of the Commission on Higher Education as provided by law, the commission, notwithstanding any other provision of law to the contrary, shall have the following additional duties and functions with regard to the various public institutions of higher education:

(1)   establish procedures for the transferability of courses at the undergraduate level between two-year and four-year institutions or schools;

(2)   coordinate with the State Board of Education in the approval of secondary education courses for the purpose of determining minimum college entrance requirements; and

(3)   review minimum undergraduate admissions standards for in-state and out-of-state students."

SECTION   3.   Section 59-103-60 of the 1976 Code is amended to read:

"Section 59-103-60.   The commission shall make such recommendations to the Governor's Office State Budget and Control Board and the General Assembly as to policies, programs, curricula, facilities, administration, and financing of all state-supported institutions of higher learning as may be considered desirable. The House Ways and Means Committee, the Senate Finance Committee, and the State Budget and Control Board may refer to the commission for investigation, study and report any requests of institutions of higher learning for new or additional appropriations for operating and for other purposes and for the establishment of new or expanded programs."

SECTION   4.   Section 59-103-90 of the 1976 is amended to read:

"Section 59-103-90.   An executive director must be appointed by the commission to manage and carry out the duties of the commission as prescribed by law and assigned by the commission. The executive director is not subject to the State Employee Grievance Procedure Act of 1982 and may be dismissed without cause.

A professional staff complement shall be established by the Commission on recommendation of the executive director which who shall insure ensure that there are persons on the staff who have the professional competence and experience to carry out the duties assigned and to insure ensure that there are persons on the staff who are familiar with the problems and capabilities of all of the principal types of state-supported institutions in the State. Provision shall be made for persons of high competence and strong professional experience in such the areas of academic affairs, public service and extension programs, business and financial affairs, institutional studies and long-range planning, student affairs, research and development, legal affairs, health affairs, institutional development, and for state and federal programs administered by the commission. The hiring of additional staff members to any position for which funds were not specifically appropriated by the General Assembly shall require prior approval by the General Assembly."

SECTION 5.   A joint legislative committee to study the governance and operation of higher education in South Carolina and the institutional structures of higher education is established as follows:

(1)   four members of the committee shall be appointed by the Speaker of the House of Representatives from that body and four members shall be appointed by the President Pro Tempore of the Senate from that body. At least one member of the committee appointed by the Speaker of the House from that body and at least one member of the committee appointed by the President Pro Tempore of the Senate from that body shall be an African-American, and at least one other member of the committee appointed by the Speaker of the House from that body and the President Pro Tempore of the Senate from that body must be a female. Four members of the committee must be appointed by the Governor, two of whom must represent the business community, one of whom must be an institutional trustee elected by the General Assembly, and one who must be a member of the Commission on Higher Education. A chairman shall be elected from among the membership of the committee. The committee shall be convened no later than July 1, 1995.

(2)   The committee shall:

(a)   conduct a comprehensive review of the current governance structure of higher education including statewide coordinating and oversight measures currently sustained.

(b)   examine:

(i)   national trends and reform efforts in higher education governance structures, including the advantages and disadvantages of increasing or decreasing the oversight role of state level governance of higher education;

(ii)   the lines of authority and the relationship between the respective boards of trustees and the Commission on Higher Education;

(c)   investigate how higher education opportunities are currently provided to South Carolina students by examining the structures of higher education institutions at all levels;

(d)   address any other matters the committee considers necessary or appropriate.

(e)   solicit topics of inquiry from all public and private institutions in the State and the Commission on Higher Education.

(3)   At least one staff person shall be transferred to the committee from the Legislative Audit Council and from the State Reorganization Commission for the duration of the study. The study committee shall use this staff in conjunction with other professional staff. Legislative staff of the committee shall be the lead staff and the staff transferred to the committee from the Legislative Audit Council, and the State Reorganization Commission shall support the lead legislative staff. Upon completion of the workplan of the study and if the committee determines that more staff are needed to ensure a timely report and so requests, one additional professional staff person must be transferred from the Legislative Audit Council and from the State Reorganization Commission. The Commission on Higher Education and the staff of the public institutions of higher education shall cooperate fully with the committee including providing staff support and other in-kind resources as requested by the committee.

(4)   The committee shall conclude its work and issue its final report by February 1, 1996, which shall serve as the decennial report of the Commission on Higher Education. The final report shall be submitted to the House Education and Public Works Committee and the Senate Education Committee, and must be considered the first report required by the Decennial section of the commission's Master Assessment plan, and upon submission of its final report, the committee shall be dissolved.

(5)   Members of the committee shall receive the usual mileage, subsistence, and per diem paid by law to members of the General Assembly to be paid from approved accounts of both houses.

SECTION   6.   The terms of the present members of the State Commission on Higher Education shall expire on July 1, 1996, at which time the members of the commission selected in the manner provided by this act shall take office. The present members of the commission who have not served a majority of two terms may be reappointed for one additional term.

SECTION   7.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

/s/Nikki Setzler   /s/Ronald Townsend
/s/James Bryan   /s/David Wright
/s/Samuel Stilwell,   /s/Rita Allison,

On the part of the Senate.     On the part of the House.

, and a message was sent to the House accordingly.

S. 602 -- Senators Short, Jackson, Gregory and Giese: A BILL TO AMEND SECTION 34-29-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RECORDS AND REPORTS OF RESTRICTED LENDERS, BY ADDING INFORMATION REQUIRED TO BE REPORTED IN THE ANNUAL REPORT MADE BY RESTRICTED LENDERS; TO AMEND SECTION 34-29-140 OF THE 1976 CODE, RELATING TO CHARGES PERMITTED TO RESTRICTED LENDERS, SO AS TO REVISE THE FINANCE CHARGES AND TO PROVIDE LIMITATIONS ON LOAN RENEWALS; TO AMEND SECTION 37-1-301 OF THE 1976 CODE, RELATING TO DEFINITIONS UNDER THE CONSUMER PROTECTION CODE, SO AS TO ADD A DEFINITION FOR "DEBT COLLECTOR"; TO AMEND SECTION 37-1-303 OF THE 1976 CODE, RELATING TO THE INDEX OF DEFINITIONS IN TITLE 37, SO AS TO ADD "DEBT COLLECTOR"; TO AMEND SECTION 37-3-201 OF THE 1976 CODE, RELATING TO LOAN FINANCE CHARGES FOR SUPERVISED LOANS, SO AS TO PROVIDE THAT SUPERVISED LOANS NOT EXCEEDING SIX HUNDRED DOLLARS SHALL BE MADE IN ACCORDANCE WITH SECTION 34-29-140 RELATING TO FINANCE CHARGES FOR RESTRICTED LOANS; TO AMEND SECTION 37-3-305 OF THE 1976 CODE, RELATING TO THE POSTING AND FILING OF MAXIMUM RATE SCHEDULES BY SUPERVISED LENDERS, SO AS TO PROVIDE THAT FOR LOANS NOT EXCEEDING SIX HUNDRED DOLLARS, A RATE MAY NOT BE POSTED WHICH EXCEEDS THE CHARGES IMPOSED IN SECTION 34-29-140; TO AMEND SECTION 37-3-505 OF THE 1976 CODE, RELATING TO RECORDS AND ANNUAL REPORTS FOR SUPERVISED LENDERS, SO AS TO ADD INFORMATION REQUIRED TO BE INCLUDED IN THE ANNUAL REPORT OF SUPERVISED LENDERS; TO AMEND PART 5, CHAPTER 3, TITLE 37 OF THE 1976 CODE, BY ADDING SECTION 37-3-515 SO AS TO PROVIDE A LIMITATION ON LOAN RENEWALS; TO AMEND SECTION 37-5-108 OF THE 1976 CODE, RELATING TO UNCONSCIONABILITY UNDER THE CONSUMER PROTECTION CODE, BY ADDING PARTICULAR CIRCUMSTANCES WHICH CONSTITUTE UNCONSCIONABILITY AND PROVIDING REMEDIES; TO AMEND SECTION 37-6-117 OF THE 1976 CODE, RELATING TO THE ADMINISTRATIVE RESPONSIBILITIES OF THE ADMINISTRATION OF THE DEPARTMENT OF CONSUMER AFFAIRS, SO AS TO REQUIRE THE ADMINISTRATION TO DEVISE A PAMPHLET FOR DISTRIBUTION TO CERTAIN CONSUMERS INFORMING THEM OF THEIR RIGHTS; AND TO AMEND SECTION 37-9-102 OF THE 1976 CODE, RELATING TO THE LICENSURE ELECTION, SO AS TO PROVIDE THAT CERTAIN SUPERVISED LENDERS MAY ELECT TO BE RESTRICTED LENDERS.

On motion of Senator SHORT, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator SHORT spoke on the report.

On motion of Senator SHORT, with unanimous consent, Free Conference Powers were granted.

Whereupon, the PRESIDENT appointed Senators SHORT, JACKSON and GREGORY to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

On motion of Senator SHORT, the Report of the Committee of Free Conference to S. 602 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 602 -- Senators Short, Jackson, Gregory and Giese: A BILL TO AMEND SECTION 34-29-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RECORDS AND REPORTS OF RESTRICTED LENDERS, BY ADDING INFORMATION REQUIRED TO BE REPORTED IN THE ANNUAL REPORT MADE BY RESTRICTED LENDERS; TO AMEND SECTION 34-29-140 OF THE 1976 CODE, RELATING TO CHARGES PERMITTED TO RESTRICTED LENDERS, SO AS TO REVISE THE FINANCE CHARGES AND TO PROVIDE LIMITATIONS ON LOAN RENEWALS; TO AMEND SECTION 37-1-301 OF THE 1976 CODE, RELATING TO DEFINITIONS UNDER THE CONSUMER PROTECTION CODE, SO AS TO ADD A DEFINITION FOR "DEBT COLLECTOR"; TO AMEND SECTION 37-1-303 OF THE 1976 CODE, RELATING TO THE INDEX OF DEFINITIONS IN TITLE 37, SO AS TO ADD "DEBT COLLECTOR"; TO AMEND SECTION 37-3-201 OF THE 1976 CODE, RELATING TO LOAN FINANCE CHARGES FOR SUPERVISED LOANS, SO AS TO PROVIDE THAT SUPERVISED LOANS NOT EXCEEDING SIX HUNDRED DOLLARS SHALL BE MADE IN ACCORDANCE WITH SECTION 34-29-140 RELATING TO FINANCE CHARGES FOR RESTRICTED LOANS; TO AMEND SECTION 37-3-305 OF THE 1976 CODE, RELATING TO THE POSTING AND FILING OF MAXIMUM RATE SCHEDULES BY SUPERVISED LENDERS, SO AS TO PROVIDE THAT FOR LOANS NOT EXCEEDING SIX HUNDRED DOLLARS, A RATE MAY NOT BE POSTED WHICH EXCEEDS THE CHARGES IMPOSED IN SECTION 34-29-140; TO AMEND SECTION 37-3-505 OF THE 1976 CODE, RELATING TO RECORDS AND ANNUAL REPORTS FOR SUPERVISED LENDERS, SO AS TO ADD INFORMATION REQUIRED TO BE INCLUDED IN THE ANNUAL REPORT OF SUPERVISED LENDERS; TO AMEND PART 5, CHAPTER 3, TITLE 37 OF THE 1976 CODE, BY ADDING SECTION 37-3-515 SO AS TO PROVIDE A LIMITATION ON LOAN RENEWALS; TO AMEND SECTION 37-5-108 OF THE 1976 CODE, RELATING TO UNCONSCIONABILITY UNDER THE CONSUMER PROTECTION CODE, BY ADDING PARTICULAR CIRCUMSTANCES WHICH CONSTITUTE UNCONSCIONABILITY AND PROVIDING REMEDIES; TO AMEND SECTION 37-6-117 OF THE 1976 CODE, RELATING TO THE ADMINISTRATIVE RESPONSIBILITIES OF THE ADMINISTRATION OF THE DEPARTMENT OF CONSUMER AFFAIRS, SO AS TO REQUIRE THE ADMINISTRATION TO DEVISE A PAMPHLET FOR DISTRIBUTION TO CERTAIN CONSUMERS INFORMING THEM OF THEIR RIGHTS; AND TO AMEND SECTION 37-9-102 OF THE 1976 CODE, RELATING TO THE LICENSURE ELECTION, SO AS TO PROVIDE THAT CERTAIN SUPERVISED LENDERS MAY ELECT TO BE RESTRICTED LENDERS.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

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

SECTION 1. Section 34-29-100 of the 1976 Code is amended to read:

"Section 34-29-100. (a) Each licensee shall keep and use in his business such full and correct books and accounting records as are in accordance with sound and accepted accounting principles and practices and such books and records, including cards used in the card system, if any, as are in accord with the rules and regulations lawfully made by the Board board. Each licensee shall preserve such books, accounts and records, including cards used in the card system, if any, for at least two years after making the final entry on any loan recorded thereon. The renewal or refinancing of a loan shall constitute a final entry.

(b) Every licensee shall file in the office of the Board board, on or before the first day of April, a report for the preceding calendar year. The report shall give information with respect to the financial condition of such licensee, and shall include the name and address of the licensee, balance sheets at the beginning and end of the accounting period, a statement of income and expenses for the period, a reconciliation of surplus with the balance sheets, a schedule of assets used and useful in the consumer finance business in the State, an analysis of charges, size of loans and types of actions undertaken to effect collection and such other relevant information in form and detail as the Board board may prescribe.

(c) In addition to the information required to be reported under subsection (b), the annual report shall include the following:

(1) the total number of loans and aggregate dollar amounts made by the lender which renewed existing accounts;

(2) the total number of new loans and aggregate dollar amounts made to former borrowers;

(3) the total number of loans and aggregate dollar amounts made to new borrowers;

(4) the total number of loans and aggregate dollar amounts which received a final entry, as provided in subsection (a), other than by renewal;

(5) the total number of renewals in which the borrower received a cash advance which was less than ten percent of the net outstanding loan balance at the time of renewal;

(6) the total number of loans and aggregate dollar amounts outstanding at the beginning of the reporting period; and

(7) the total number of loans and aggregate dollar amounts outstanding at the end of the reporting period.

(d) Such report shall be made under oath and shall be in the form prescribed by the Board board and consistent with this section. which The board shall make and publish annually an analysis and recapitulation of such reports.

(c) (e) In addition to the report required by the provisions of Section 34-29-100 (b) and (c), the Board board may under rules and regulations promulgated by it under the procedure provided in this chapter require quarterly and/or semiannual reports from licensees to facilitate the performance of its duties and to effectively regulate the making of loans under this chapter."

SECTION 2. Section 34-29-140(a) of the 1976 Code is amended to read:

"(a) Maximum finance charges permitted; initial charge.-A licensee under this chapter may lend any sum of money not exceeding seventy-five hundred dollars, excluding charges, and notwithstanding the fact that the loan may be repayable in substantially equal monthly installments, may contract for and receive finance charges not to exceed:

(1) Loans Not Exceeding One Hundred Fifty Dollars.-On loans with cash advance not exceeding one hundred fifty dollars, a charge not to exceed two dollars and fifty cents per month if contracted for in writing by the borrower, may be charged in lieu of interest, and such loans may be repaid in weekly payments, with four weeks constituting a month.

(2) Loans Over One Hundred and Fifty Dollars But Not Exceeding Two Thousand Dollars. On loans with a cash advance exceeding one hundred fifty dollars but not exceeding two thousand dollars, twenty dollars per one hundred dollars on that portion of the cash advance not exceeding two hundred dollars; eighteen dollars per one hundred dollars on that portion of the cash advance exceeding two hundred dollars but not exceeding six hundred dollars; eleven dollars per one hundred dollars on that portion of the cash advance exceeding six hundred dollars but not exceeding one thousand dollars; nine dollars per one hundred dollars on that portion of the cash advance exceeding one thousand dollars but not exceeding two thousand dollars, when the loan is made payable over a period of one year, and proportionately at those rates over a longer or shorter period of time.

(2) Loans Over One Hundred Fifty Dollars But Not Exceeding Two Thousand Dollars. On loans with a cash advance exceeding one hundred fifty dollars but not exceeding two thousand dollars, twenty-five dollars per one hundred dollars on that portion of the cash advance not exceeding six hundred dollars; eighteen dollars per one hundred dollars on that portion of the cash advance exceeding six hundred dollars but not exceeding one thousand dollars; and twelve dollars per one hundred dollars on that portion of the cash advance exceeding one thousand dollars but not exceeding two thousand dollars when the loan is made payable over a period of one year, and proportionately at those rates over a longer or shorter period of time.

In addition to the finance charges authorized in subparagraphs (1) and (2) of this subsection (a), a licensee under this chapter may contract for and receive an initial charge in such an amount as may be agreed upon in writing with the borrower, but not to exceed seven percent of the cash advance or fifty-six dollars, whichever is the lesser, for the expenses, including, but not limited to any attorney's fees and broker's fees, then or theretofore incurred and the services then or theretofore rendered by the lender incident to the loan or the security therefor, such as investigating the moral and financial standing of the borrower, investigating the security, title and similar investigations and for closing the loan, including any and all expenses incurred or services rendered at the request of the borrower or on his behalf in connection with the loan. Such initial charge may not be contracted for and received on any renewal loan or other loan made to the same borrower more often than once in a three months period. Upon any loan made to the borrower of a sum in excess of the amount on which the initial charge may have been charged within the three-month period, then the initial charge may be contracted for and received on the excess. The initial charge is a one-time charge, not a per annum charge, and is not subject to refund. The initial charge on loans not exceeding one hundred fifty dollars is a one time charge, not a per annum charge and is not subject to refund. The initial charge on loans in excess of one hundred fifty dollars is a one time charge, not a per annum charge and shall be subject to refund upon prepayment of the loan. The amount of the refund or refund credit shall represent at least as great a proportion of the total charges as the sum of the periodical times balances after the date of the prepayment bears to the sum of all periodical time balances under the schedule of payments in the loan contract.

(3) Loans over Two Thousand but Not over Seventy-Five Hundred Dollars.-On loans with a cash advance exceeding two thousand dollars but not exceeding seventy-five hundred dollars, the finance charges authorized in subparagraphs (1) and (2) of this subsection (a) are not permitted on any part of the loan. On such loans a licensee under this chapter may contract for and receive finance charges not to exceed seven dollars per one hundred dollars of the cash advance, when the loan is made payable over a period of one year, and proportionately at that rate over a longer or shorter period.

(3) Loans Over Two Thousand But Not Over Seventy-Five Hundred Dollars.-On loans with a cash advance exceeding two thousand dollars but not exceeding seventy-five hundred dollars, the finance charges authorized in subparagraphs (1) and (2) of this subsection (a) shall not be permitted on any part of the loan. On such loans a licensee under this chapter may contract for and receive finance charges not to exceed nine dollars per one hundred dollars of the cash advance, when the loan is made payable over a period of one year, and proportionately at that rate over a longer or shorter period.

In addition to the finance charges authorized in subparagraph (3) of this subsection (a), a licensee under this chapter may contract for and receive an initial charge in such an amount as may be agreed upon in writing with the borrower, but not to exceed five percent of the cash advance or two hundred dollars, whichever is lesser, for the expenses, including, but not limited, to any attorney's fees and broker's fees, then or theretofore incurred and the services then and theretofore rendered by the lender incident to the loan or the security therefor, such as investigating the morals and financial standing of the borrower, investigating the security, title and similar investigations and for closing the loan, including any and all expenses incurred or services rendered at the request of the borrower or on his behalf in connection with the loan. The initial charge may not be contracted for or received on any renewal loan made to the same borrower more often than once in a twelve-month period. Upon any loan made to the borrower of a sum in excess of the amount on which the initial charge may have been charged within the twelve-month period, then the initial charge may be contracted for and received on the excess. If a loan is renewed or financed after the expiration of the initial twelve-month period, the initial charge may not exceed two percent of the cash advance. The initial charge is a one-time charge, not a per annum charge, and is not subject to refund. The initial charge is a one time charge, not a per annum charge and shall be subject to refund upon prepayment of the loan. The amount of the refund or refund credit shall represent at least as great a proportion of the total charges as the sum of the periodical times balances after the date of the prepayment bears to the sum of all periodical time balances under the schedule of payments in the loan contract."

SECTION 3. Section 34-29-140 of the 1976 Code is amended by adding an appropriately numbered subsection to read:

"( ) Dollar Limits on Renewals. A licensee under this chapter may not renew a loan more than one time during any fifteen-month period where the actual dollars given to the customer is less than ten percent of the net outstanding loan balance at the time of renewal."

SECTION 4. Section 37-1-301 of the 1976 Code is amended by adding appropriately numbered subsections to read:

"( ) 'Debt Collector' means any person who collects, attempts to collect, directly or indirectly, debts due or asserted to be owed or due another. The term also includes a creditor who collects, attempts to collect, directly or indirectly, his own debts.

( ) 'Licensee' means a supervised lender licensed under Section 37-3-503.

( ) 'Cash Advance' means the amount of cash or its equivalent that the borrower actually receives or is paid out at his direction or on his behalf."

SECTION 5. Section 37-1-303 of the 1976 Code is amended to read:

"Section 37-1-303.   Definitions in this title and the sections in which they appear are:

'Actuarial method'-Section 37-1-301(1)

'Administrator'-Section 37-1-301(2)

'Administrator'-Section 37-6-103

'Agreement'-Section 37-1-301(3)

'Agricultural purpose'-Section 37-1-301(4)

'Alternative mortgage loan'-Section 37-1-301(5)

'Amount financed'-Section 37-2-111

'Assumption'-Section 37-1-301(5A)

'Billing cycle'-Section 37-1-301(6)

'Card holder'-Section 37-1-301(7)

'Card issuer'-Section 37-1-301(8)

'Cash price'-Section 37-2-110

'Cash Advance'-Section 37-1-301( )

'Conspicuous'-Section 37-1-301(9)

'Consumer'-Section 37-1-301(10)

'Consumer credit insurance'-Section 37-4-103

'Consumer credit sale'-Section 37-2-104

'Consumer credit transaction'-Section 37-1-301(11)

'Consumer lease'-Section 37-2-106

'Consumer loan'-Section 37-3-104

'Contested case'-Section 37-6-402(1)

'Credit'-Section 37-1-301(12)

'Credit Insurance Act'-Section 37-4-103

'Creditor'-Section 37-1-301(13)

'Credit service charge'-Section 37-2-109

'Debt Collector'-Section 37-1-301( )

'Debtor'-Section 37-1-301(14)

'Earnings'-Section 37-1-301(15)

'Federal Truth-in-Lending Act'-Section 37-1-302

'Goods'-Section 37-2-105(1)

'Home solicitation sale'-Section 37-2-501

'Lender'-Section 37-3-107(1)

'Lender credit card or similar

arrangement'-Section 37-1-301(16)

'License'-Section 37-6-402(2)

'Licensee'- Section 37-1-301( )

'Licensing'-Section 37-6-402(3)

'Loan'-Section 37-3-106

'Loan finance charge'-Section 37-3-109

'Merchandise certificate'-Section 37-2-105(2)

'Official fees'-Section 37-1-301(17)

'Organization'-Section 37-1-301(18)

'Party'-Section 37-6-402(4)

'Payable in installments'-Section 37-1-301(19)

'Person'-Section 37-1-301(20)

'Person related to'-Section 37-1-301(21)

'Precomputed' (loan)-Section 37-3-107(2)

'Precomputed' (sale)-Section 37-2-105(7)

'Presumed' or 'presumption'-Section 37-1-301(22)

'Principal'-Section 37-3-107(3)

'Residence'-Section 37-1-301(23)

'Residential manufactured home'-Section 37-1-301(24)

'Residential real property'-Section 37-1-301(25)

'Restricted lender'-Section 37-3-501(4)

'Restricted loan'-Section 37-3-501(3)

'Revolving charge account'-Section 37-2-108

'Revolving loan account'-Section 37-3-108

'Rule'-Section 37-6-402(5)

'Sale of an interest in land'-Section 37-2-105(6)

'Sale of goods'-Section 37-2-105(4)

'Sale of services'-Section 37-2-105(5)

'Seller'-Section 37-2-107

'Seller credit card'-Section 37-1-301(26)

'Services'-Section 37-2-105(3)

'Supervised financial organization'-Section 37-1-301(27)

'Supervised lender'-Section 37-3-501(2)

'Supervised loan'-Section 37-3-501(1)."

SECTION 6. Section 37-3-201(2) of the 1976 Code is amended to read:

"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge, calculated according to the actuarial method, not exceeding the greater of either of the following:

(a)any rate filed and posted pursuant to Section 37-3-305; or

(b)eighteen percent per year on the unpaid balances of principal. as provided:

(a)on loans with a cash advance not exceeding six hundred dollars, a maximum charge not exceeding the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate, provided that a supervised lender may impose a finance charge at a rate less than provided in Section 34-29-140, and provided further that the maximum charge shall not exceed the rate posted and filed pursuant to Section 37-3-305;

(b)on loans with a cash advance exceeding six hundred dollars, and on all loans, regardless of the dollar amount, made by Supervised Financial Organizations, any rate filed and posted pursuant to Section 37-3-305; or

(c) on loans of any amount, eighteen percent per year on the unpaid balances of principal."

SECTION 7. Section 37-3-305 of the 1976 Code is amended by adding an appropriately numbered subsection to read:

"( ) On loans with a cash advance not exceeding six hundred dollars, a licensed lender may not post a rate which exceeds the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate or that rate filed and posted pursuant to this section, whichever is less."

SECTION 8. Section 37-3-505 of the 1976 Code is amended to read:

"Section 37-3-505. (1) Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the State Board of Financial Institutions to determine whether the licensee is complying with the provisions of this title. The record keeping system of a licensee shall be sufficient if he makes the required information reasonably available. The records need not be kept in the place of business where supervised loans are made, if the board is given free access to the records wherever located. The records pertaining to any loan, including the certified maximum rate chart in effect at the time the loan was made, need not be preserved for more than two years after making the final entry relating to the loan, but in the case of a revolving loan account the two years is measured from the date of each entry.

(2) On or before April 15 each year every licensee shall file with the Board board a composite annual report in the form prescribed by the Board board relating to all supervised loans made by him. The Board board shall consult with comparable officials in other states for the purpose of making the kinds of information required in annual reports uniform among the states.

(3)The report shall include, but is not limited to, the following:

(a)the total number of loans and aggregate dollar amounts made by the lender which renewed existing accounts;

(b)the total number of new loans and aggregate dollar amounts made to former borrowers;

(c)the total number of loans and aggregate dollar amounts made to new borrowers;

(d)the total number of loans and aggregate dollar amounts which received a final entry, as provided in subsection (a), other than by renewal;

(e)the total number of renewals in which the borrower received a cash advance which was less than ten percent of the net outstanding loan balance at the time of renewal;

(f)the total number of loans and aggregate dollar amounts outstanding at the beginning of the reporting period;

(g)the total number of loans and aggregate dollar amounts outstanding at the end of the reporting period;

(h)the highest annual percentage rate charged by the lender on loans of various sizes; and

(i)the most frequent annual percentage rate charged by the lender on loans of various sizes.

(4)Information contained in annual reports shall be confidential and may be published only in composite form."

SECTION 9. Chapter 3 of Title 37 of the 1976 Code is amended by adding:

"Section 37-3-515. A licensed lender may not renew a loan of one thousand dollars or less more than one time during any fifteen-month period where the dollars actually given to the customer is less than ten percent of the net outstanding loan balance at the time of renewal."

SECTION 10. Section 37-5-108 of the 1976 Code is amended to read:

"Section 37-5-108. (1) With respect to a transaction that is, gives rise to, or leads the debtor to believe will give rise to, a consumer credit transaction, if the court as a matter of law finds:

(a) the agreement or transaction to have been unconscionable at the time it was made, or to have been induced by unconscionable conduct, the court may refuse to enforce the agreement; or

(b) any term or part of the agreement or transaction to have been unconscionable at the time it was made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable term or part, or so limit the application of any unconscionable term or part as to avoid any unconscionable result and award the consumer any actual damages he has sustained.

(2) With respect to a consumer credit transaction, if the court as a matter of law finds that a person has engaged in, is engaging in, or is likely to engage in unconscionable conduct in collecting a debt arising from that transaction, the court may grant an injunction and award the consumer any treble damages he has sustained. In addition, the consumer has a cause of action to recover actual damages and, in an action other than a class action, a right to recover from the person violating this section a penalty in the amount determined by the court of not less than one hundred dollars nor more than one thousand dollars. For purposes of this subsection and subsection (3), the term 'collecting a debt' in a consumer credit transaction includes the collection or the attempt to collect any rental charge or any other fee or charge or any item rented to a lessee in connection with a consumer rental-purchase agreement as described in Section 37-2-701(6).

(3) If it is claimed or appears to the court that the agreement or transaction or any term or part thereof may be unconscionable, or that a person has engaged in, is engaging in, or is likely to engage in unconscionable conduct in collecting a debt, the parties shall be afforded a reasonable opportunity to present evidence as to the setting, purpose, and effect of the agreement or transaction or term or part thereof, or of the conduct, to aid the court in making the determination.

(4) In applying subsection (1), consideration must be given to each of the following factors, among others, as applicable:

(a) belief by the seller, lessor, or lender at the time a transaction is entered into that there is no reasonable probability of payment in full of the obligation by the consumer or debtor; provided, however, that the rental renewals necessary to acquire ownership in a consumer rental-purchase agreement shall not be construed to be the obligation contemplated in this code section;

(b) in the case of a consumer credit sale, consumer lease, or consumer rental-purchase agreement, knowledge by the seller or lessor at the time of the sale or lease of the inability of the consumer to receive substantial benefits from the property or services sold or leased;

(c) in the case of a consumer credit sale, consumer lease, consumer rental-purchase agreement, or consumer loan, gross disparity between the price of the property or services sold, leased, or loaned and the value of the property, services, or loan measured by the price at which similar property, services, or loans are readily obtainable in consumer credit transactions by like consumers;

(d) the fact that the creditor contracted for or received separate charges for insurance with respect to a consumer credit sale, consumer loan, or consumer rental-purchase agreement with the effect of making the sale or loan considered as a whole, unconscionable, including the sale of insurance where the consumer could receive no potential benefit as referenced in Section 37-4-106(1)(a);

(e) the fact that the seller, lessor, or lender has knowingly taken advantage of the inability of the consumer or debtor reasonably to protect his interests by reason of physical or mental infirmities, ignorance, illiteracy, inability to understand the language of the agreement, or similar factors.

(f) taking a nonpurchase money nonpossessory security interest in household goods defined as the following: clothing, furniture, appliances, one radio and one television, linens, china, crockery, kitchenware, and personal effects (including wedding rings) of the consumer and his or her dependents; provided, that when a purchase money consumer credit transaction is refinanced or consolidated, the security lawfully collateralizing the prior consumer credit transaction can continue to secure the new consumer credit transaction, even if the new consumer credit transaction is for a larger amount or is in other respects a nonpurchase money consumer credit transaction; and provided further, that a nonpurchase money, nonpossessory security interest may be taken in the following:

(i) work of art;

(ii) electronic entertainment equipment (except one television and one radio);

(iii) items acquired as antiques which are over 100 years of age;

(iv) jewelry (except wedding rings).

In construing subsection (f), the courts shall be guided by the interpretations and rulings of the federal courts and the Federal Trade Commission to the Credit Trade Regulation Rule (16 C.F.R. PART 444).

(5) In applying subsection (2), consideration shall be given to each of the following factors, among others, as applicable:

(a) using or threatening to use force, violence, or criminal prosecution against the consumer or members of his family, including harm to the physical person, reputation, or property of any person;

(b) communicating with the consumer or a member of his family at frequent intervals during a twenty-four hour period or at unusual hours or under other circumstances so that it is a reasonable inference that the primary purpose of the communication was to harass the consumer;. The term 'communication' means the conveying of information regarding a debt directly or indirectly to any person through any medium. A creditor or debt collector may not:

(i) communicate with a consumer at any unusual time or place known or which should be known to be inconvenient to the consumer. In the absence of knowledge of circumstances to the contrary, it may be assumed that a convenient time to communicate with a consumer is between 8 a.m. and 9 p.m.; or

(ii) communicate with a consumer who is represented by an attorney when such fact is known to the creditor or debt collector unless the attorney consents to direct communication or fails to respond within ten days to a communication;

(iii) contact a consumer at his place of employment after the consumer or his employer has requested in writing that no contacts be made at such place of employment or except as may be otherwise permitted by statute or to verify the consumer's employment;

(iv) communicate with anyone other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the attorney of the creditor or debt collector, unless the consumer or a court of competent jurisdiction has given prior direct permission;

(v) use obscene or profane language or language the natural consequence of which is to abuse the hearer or reader;

(vi) publish a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency;

(vii) cause a telephone to ring repeatedly during a twenty-four hour period or engage any person in a telephone conversation with intent to annoy, abuse, or harass any person at the called number;

(viii) advertise for sale any debt to coerce payment of the debt;

(ix) communicate with a consumer regarding a debt by postcard;

(x) deposit or threaten to deposit any postdated check or other postdated payment instrument requested by the creditor prior to the date on such check or instrument;

(xi) take or threaten to take any nonjudicial action to effect dispossession or disablement of property if:

(aa) there is no present right to possession of the property claimed as collateral through an enforceable security interest or other ownership interest;

(bb) there is no present intention to take possession of the property; or

(cc) the property is exempt by law from such dispossession or disablement; or

(xii) cause charges to be incurred by any person for communications to the consumer by concealment of the true purpose of the communication, such charges include, but are not limited to, collect telephone calls and telegram fees.

(c) using fraudulent, deceptive, or misleading representations such as a communication which simulates legal process or which gives the appearance of being authorized, issued, or approved by a government, governmental agency, or attorney at law when it is not, or threatening or attempting to enforce a right with knowledge or reason to know that the right does not exist; in connection with the collection of a consumer credit transaction. Such false representations shall include:

(i)   the character, amount, or legal status of any debt;

(ii) any services rendered or fees which may be received, unless such fees are expressly authorized by law;

(iii) a claim of an individual that he is an attorney or that any communication is from an attorney;

(iv) any claim or implication that nonpayment of any debt will result in arrest, imprisonment, garnishment, seizure, or attachment unless the remedy is legally permitted to the creditor and the claim or implication is not used for the purpose of harassment or abuse of process;

(v) a claim or implication that the consumer committed any crime or other conduct to disgrace the consumer; or

(vi) any written communication which simulates or appears to be a document authorized, issued, or approved by any state or federal agency or court or creates a false impression as to its source.

(d) causing or threatening to cause injury to the consumer's reputation or economic status by disclosing information affecting the consumer's reputation for credit-worthiness with knowledge or reason to know that the information is false; communicating with the consumer's employer before obtaining a final judgment against the consumer, except as permitted by statute or to verify the consumer's employment; disclosing to a person, with knowledge or reason to know that the person does not have a legitimate business need for the information, or in any way prohibited by statute, information affecting the consumer's credit or other reputation; or disclosing information concerning the existence of a debt known to be disputed by the consumer without disclosing that fact;

(e) engaging in conduct with knowledge that like conduct has been restrained or enjoined by a court in a civil action by the administrator against any person pursuant to the provisions on injunctions against fraudulent or unconscionable agreements or conduct (Section 37-6-111).

(6) No action at law claiming unconscionable debt collection may be commenced in any court until at least thirty days after the facts and circumstances of any claim of unconscionable conduct in collecting a debt arising out of a consumer credit transaction has been filed in writing with the administrator of the Department of Consumer Affairs. The administrator shall immediately provide to the person or organization complained against with a copy of any complaint alleging unconscionable debt collection practices filed with the Department of Consumer Affairs. The administrator shall immediately provide to the Director of the Consumer Finance Division of the Board of Financial Institutions a copy of any written claim of unconscionable conduct in collecting a debt filed against a supervised lender under this title or a restricted lender under Title 34. A creditor or debt collector may only take such action as is authorized by law to protect its collateral during the thirty-day state agency review period. The administrator shall take immediate steps to investigate, evaluate, and attempt to resolve such complaints. The administrator and director shall jointly take immediate steps to investigate, evaluate, and attempt to resolve complaints involving supervised and restricted lenders. If in an action, properly filed after the thirty-day state agency review period with regard to conduct in collecting a debt arising out of a consumer credit transaction, in which unconscionability is claimed the court finds unconscionability pursuant to subsection (1) or (2), the court shall award reasonable fees to the attorney for the consumer or debtor. If the court does not find unconscionability and the consumer or debtor claiming unconscionability has brought or maintained an action he knew to be groundless, the court may award reasonable fees to the attorney for the party against whom the claim is made. In determining attorney's fees, the amount of the recovery on behalf of the consumer is not controlling.

(7) The remedies of this section are in addition to remedies available for the same conduct under law other than this title.

(8) For the purpose of this section, a charge or practice expressly permitted by this title is not in itself unconscionable.

(9) Nothing in this title may be construed to prevent a finding of unconscionability where a creditor assesses an origination charge, prepaid finance charge, service, or other prepaid charge which substantially exceeds the usual and customary charge for the particular type of consumer credit transaction. In such a transaction the court shall consider the relative sophistication of the debtor and the creditor, the relative bargaining power of the debtor and creditor, and any oral or written representations made by the creditor regarding the credit service charge or the loan finance charge of the consumer credit transaction."

SECTION 11. Section 37-6-117 of the 1976 Code is amended by adding an appropriately numbered subsection to read:

"( ) Develop a written pamphlet that explains the rights and responsibilities of consumers who obtain from a licensed lender consumer loans under this title and Title 34 for distribution in all licensed consumer loan offices. Such pamphlet shall include the names, addresses, and telephone numbers of state agencies responsible for enforcing the provisions of this title and Title 34. Such pamphlet shall be given to a consumer at the time the initial loan by a licensed lender is made whenever the amount financed is two thousand dollars or less and shall be readily available to all consumers at all times in each licensed consumer loan office. The administrator shall consult with, and seek input from representatives of consumers, the consumer finance industry, and the Director of the Consumer Finance Division of the Board of Financial Institutions. Each licensed lender shall be responsible for reproducing and distributing the pamphlet finally approved and authorized by the administrator. The pamphlet developed under this subsection shall be provided to consumers as of January 1, 1996."

SECTION 12. Section 37-9-102 of the 1976 Code is amended to read:

"Section 37-9-102. (A)   All persons now or hereafter holding a license under the provisions of Chapter 29 of title Title 34, as amended, may elect to be licensed to make supervised loans under this title pursuant to the Part on Supervised Loans (Part 5) of the Chapter on Loans (Chapter 3), provided, however, that all persons related to such persons shall make the same election. Upon such election at any time hereafter in writing to the Board of Bank Control Financial Institutions, the lender shall be deemed to have surrendered his license to lend under Chapter 29 of title Title 34 and to have obtained a license to lend under this title. As soon as is practicable after the Board board receives such writing it shall issue a new certificate identifying the lender as a Supervised Lender. The only requirements that the Board board may impose for licensure under this section are:

(1) The election must be stated in writing;

(2) All persons related to the electing lender must also have made such election; and

(3) The person making any such election must then hold a currently valid license under Chapter 29 of title Title 34.

(B) A lender licensed to make supervised loans under this title under Chapter 3 of Title 37, who was previously licensed under the provisions of Chapter 29 of Title 34, as amended, may elect to again be licensed under Chapter 29 of Title 34, provided, however, that all persons related to such persons shall make the same election. Upon such election, which must be made in writing to the Board of Financial Institutions prior to January 1, 1997, the lender shall be deemed to have surrendered his license to lend under Chapter 3 of Title 37 and to have obtained a license to lend under Title 34. As soon as practicable after the board receives such writing, it shall issue a new certificate identifying the lender as a Restricted Lender under Title 34. The only requirements that the board may impose for licensure under this section are:

(1) The election must be stated in writing;

(2) All persons related to the electing lender must also have made such election; and

(3) The person making any such election must then hold a currently valid license under Chapter 3 of Title 37."

SECTION 13. (A) On or after July 1, 1997, a review of the consumer finance industry shall be commenced by a legislative study committee in order to study the impact of this act. The committee shall report its findings and recommendations, if any, to the General Assembly by January 1, 1998. The committee shall be composed of three members of the House of Representatives, to be appointed by the Speaker; three members of the Senate, to be appointed by the President Pro Tempore; the State Consumer Advocate, or his designee; and the Director of the Consumer Finance Division of the State Board of Financial Institutions, or his designee. The committee shall elect its chairman from among its members. The committee shall utilize the existing staff of the Senate Banking and Insurance Committee, or its successor in interest; the existing staff of the Labor, Commerce and Industry Committee of the House of Representatives, or its successor in interest; and such other legislative staff members as may be available to the chairman. The committee shall dissolve upon presentation of its report.

(B) On or after July 1, 1998, a second review of the consumer finance industry shall be commenced by a legislative study committee in order to further study the impact of this act and any subsequent amendments to the consumer finance laws. The committee shall report its findings and recommendations, if any, to the General Assembly by January 1, 1999. The committee shall be composed of three members of the House of Representatives, to be appointed by the Speaker; three members of the Senate, to be appointed by the President Pro Tempore; the State Consumer Advocate, or his designee; and the Director of the Consumer Finance Division of the State Board of Financial Institutions, or his designee. The committee shall elect its chairman from among its members. The committee shall utilize the existing staff of the Senate Banking and Insurance Committee, or its successor in interest; the existing staff of the Labor, Commerce and Industry Committee of the House of Representatives, or its successor in interest; and such other legislative staff members as may be available to the chairman. The committee shall dissolve upon presentation of its report.

SECTION 14. Section 37-3-201(1) of the 1976 Code is amended to read:

"(1) With respect to a consumer loan, including a loan pursuant to open-end credit, a lender who is not a supervised lender may contract for and receive a finance charge, calculated according to the actuarial method, not exceeding eighteen twelve percent per year. With respect to a consumer loan made pursuant to open-end credit, the finance charge shall be deemed not to exceed eighteen twelve percent per year if the finance charge contracted for and received does not exceed a charge for each monthly billing cycle which is one and one-half percent of the average daily balance of the open-end account in the billing cycle for which the charge is made. The average daily balance of the open-end account is the sum of the amount unpaid each day during that cycle divided by the number of days in the cycle. The amount unpaid on a day is determined by adding to any balance unpaid as of the beginning of that day all purchases, loans and other debits and deducting all payments and other credits made or received as of that day. If the billing cycle is not monthly, the finance charge shall be deemed not to exceed eighteen twelve percent per year if the finance charge contracted for and received does not exceed a percentage which bears the same relation to one and one-half percent as the number of days in the billing cycle bears to three hundred sixty-five divided by twelve. A billing cycle is monthly if the closing date of the cycle is the same date each month or does not vary by more than four days from the regular date."

SECTION 15. Section 37-3-501(1) of the 1976 Code is amended to read:

"(1) 'Supervised loan' means a consumer loan in which the rate of the loan finance charge exceeds eighteen twelve percent per year as determined according to the provisions on the loan finance charge for consumer loans (Section 37-3-201)."

SECTION 16. Section 37-3-511 of the 1976 Code is amended to read:

"Section 37-3-511.   Supervised loans, in which the rate of loan finance charge exceeds eighteen twelve percent per annum, not made pursuant to a revolving loan account, in which the principal is one thousand dollars or less, shall be scheduled to be payable in substantially equal installments at equal periodic intervals except to the extent that the schedule of payments is adjusted to the seasonal or irregular income of the debtor, and

(a) over a period of not more than thirty-seven months if the principal is more than three hundred dollars, or

(b) over a period of not more than twenty-five months if the principal is three hundred dollars or less."

SECTION 17. Section 37-1-301(10) of the 1976 Code is amended to read:

"(10) 'Consumer' means the buyer, lessee, or debtor to whom credit is extended in a consumer credit transaction. In addition, for purposes of Chapters 10, 11, 13, and 15 of this Title, as well as Sections 37-5-108, 37-6-108, 37-6-117(i), and 37-6-118, the term also includes:

(1) A natural person who is a purchaser or lessee or prospective purchaser or lessee in any transaction arising out of the production, promotion, sale, or lease of consumer goods or services; or

(2) a natural person who is the object of a solicitation or offer relating to a contest, game, or prize offer subject to Chapter 15."

SECTION 18. Section 34-29-160 of the 1976 Code, as last amended by Act 181 of 1993, Section 524, is further amended to read:

"Section 34-29-160. Subject to the conditions provided in this section and notwithstanding any other provisions of this chapter, reasonable insurance may be sold to and required of the borrower for insuring personal property securing a loan and for insuring the life and earning capacity of one party not more than two parties obligated on a the loan other than accommodation parties.

Property insurance shall be in an amount not to exceed the reasonable value of the property insured and for the customary term approximating the term of the loan contract. It shall be optional with the borrower to obtain such insurance in an amount greater than the amount of the loan or for a longer term.

Life insurance must be in an amount not to exceed the approximate amount of the loan and for a term not exceeding the approximate term of the loan contract. Accident and health insurance and unemployment insurance, or both, must provide periodic benefits which may not exceed an amount which approximately equals the amount of each periodic installment payment to be made under the loan contract. However, when a loan is discharged or a new policy or policies of insurance are issued, the life, property, or accident and health insurance or all three on the prior obligation must be canceled and the unearned portion of the insurance premium or premiums, or identifiable charge, must be refunded to the borrower. However, the method of refunding the premiums on the policies must be pursuant to the Rule of 78 or the Sum of the Digits Method, except that no refund under two dollars must be made; the insurance company shall calculate its reserves on the policies in the same manner or, in the case of credit life insurance, in accordance with a mortality table and interest assumption used for ordinary life policies. Notwithstanding this requirement, if the property insurance policy or policies cover the insurable interest of the borrower as well as the lender, the policy or policies may be continued in force at the request of the borrower.

This section does not require a creditor to grant a refund or credit of a life insurance premium to the debtor if any refund or credit due to the debtor under this section is less than two dollars.

If the coverage provides accident and health benefits the policy or certificate shall contain a provision that if the insured obligor is disabled, as defined in the policy, for a period of more than three days, benefits shall commence as of the first day of disability, provided that accident and health insurance shall not be allowed on loans with a cash advance of less than one hundred dollars.

All insurance sold or provided pursuant to this section shall bear a reasonable and bona fide relation to the existing hazard or risk of loss and shall be written by an agent or agency licensed in this State in an insurance company authorized to conduct such business in this State. A licensee shall not require the purchasing of insurance from the licensee or any employee, affiliate, or associate of the licensee, as a condition precedent to the making of a loan and shall not decline existing insurance where such insurance is provided by an insurance company authorized to conduct such business in this State.

The licensee shall within thirty days after the loan is made, deliver to the borrower, or if more than one, to one of them, a policy or certificate of insurance covering any insurance procured by or through the licensee or any employee, affiliate or associate of the licensee, which shall set forth the amount of any premium or identifiable charge which the borrower has paid or is obligated to pay, the amount of insurance, the term of insurance, and a complete description of the risks insured. Such policy or certificate may contain a mortgage clause or other appropriate provisions to protect the insurable interest of the licensee.

Notwithstanding any other provision of this chapter, any gain or advantages in the form of commission, dividend, identifiable charge or otherwise, to the licensee or to any employee, affiliate or associate of the licensee from such insurance or its sale shall not be deemed to be additional or further interest or charge in connection with such a loan.

Any accident and health or property insurance sold in conjunction with this chapter must be written on forms and at rates approved by the South Carolina Department of Insurance, provided that a minimum charge of two dollars may be made, pursuant to reasonable regulations adopted by it and having as their purpose the establishment and maintenance of premium rates which are reasonably commensurate with the coverage afforded and which are adequate, not excessive, and not unfairly discriminatory giving due consideration to past or prospective loss experience within or without this State, to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to borrowers, to reasonable expense allowances necessary to achieve proper risk distribution and spread, and to all other relevant factors within or without this State. These regulations may include reasonable classification systems or programs based upon identifiable and measurable variations in the hazards or expense requirements and may include statistical plans, systems, or programs, which the insurers may be required to adopt, for the purpose of providing that statistical information and data as may be necessary or reasonably appropriate to the determination of premium rates or rate levels. The premium rates and rate levels must be calculated to produce and maintain a ratio of losses incurred, or reasonably expected to be incurred, to premiums earned, or reasonably expected to be earned, of not less than fifty percent, and rates producing a lesser loss ratio are considered excessive.

Credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness is scheduled to continue, subject to a minimum charge of two three dollars:
Decreasing Balance   Level Balance
Individual $ .75 .65           $1.50$1.30
Joint Insurance $1.25$1.08         $2.50$2.16"

SECTION 19. Section 37-4-203(5) of the 1976 Code, as last amended by Act 363, Section 1 of 1994, is further amended to read:

"(5) Credit life insurance premiums for each one hundred dollars of indebtedness are considered reasonable and may be charged if they are not greater than the amounts given in the following table times the number of years, or fraction of a year, that the indebtedness is scheduled to continue, subject to a minimum charge of three dollars:

Decreasing Balance   Level Balance

Individual $ .65           $1.50$1.30

Joint Insurance $1.25$1.08           $2.16"

SECTION 20. Section 37-2-207(5) of the 1976 Code is amended to read:

"(5) Notwithstanding subsection (3), and except for subsection (4), no less than forty percent of any scheduled minimum payment for that billing cycle must be applied to principal reduction in that billing cycle., provided, however, that failure to apply the forty percent of a scheduled minimum payment is not a violation of this subsection when the consumer has agreed in writing to a promotion offered by the creditor that includes deferred payments, deferred or waived finance charges, a combination thereof, or other special financing terms. Such exception shall only apply during the period of time necessary to comply with the provisions of the promotional agreement identified in writing to the customer."

SECTION 21. This act takes effect January 1, 1996, except that Section 37-2-207(5) of the 1976 Code, as amended by this act, takes effect upon approval by the Governor.

Amend title to conform.

/s/Senator Linda Short            /s/Rep. Harry Cato
/s/Senator Greg Gregory           /s/Rep. Margaret Gamble
/s/Senator Darrell Jackson        /s/Rep. Joe Neal
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

H. 3037 -- Reps. Kirsh, Simrill, Meacham, S. Whipper, Stille, Walker, Sandifer, Cain, Whatley, Shissias, Riser and Clyburn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-2947 SO AS TO PROVIDE THAT WHEN A PERSON COMMITS CERTAIN DRUG AND ALCOHOL-RELATED MOTOR VEHICLE OFFENSES AND A MINOR WAS A PASSENGER IN THE VEHICLE AT THE TIME OF THE OFFENSE, THE PERSON IS GUILTY OF THE OFFENSE OF CHILD ENDANGERMENT AND MUST BE PENALIZED BY A MANDATORY FINE OR IMPRISONMENT NOT LESS THAN ONE-HALF OF THE MAXIMUM FINE OR IMPRISONMENT GIVEN FOR THE ORIGINAL OFFENSE, AND TO PROVIDE THAT A PERSON MAY BE CONVICTED OF CHILD ENDANGERMENT IN ADDITION TO THE OTHER OFFENSES.

On motion of Senator STILWELL, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator STILWELL spoke on the report.

On motion of Senator STILWELL, the Report of the Committee of Conference to H. 3037 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3037 -- Reps. Kirsh, Simrill, Meacham, S. Whipper, Stille, Walker, Sandifer, Cain, Whatley, Shissias, Riser and Clyburn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-2947 SO AS TO PROVIDE THAT WHEN A PERSON COMMITS CERTAIN DRUG AND ALCOHOL-RELATED MOTOR VEHICLE OFFENSES AND A MINOR WAS A PASSENGER IN THE VEHICLE AT THE TIME OF THE OFFENSE, THE PERSON IS GUILTY OF THE OFFENSE OF CHILD ENDANGERMENT AND MUST BE PENALIZED BY A MANDATORY FINE OR IMPRISONMENT NOT LESS THAN ONE-HALF OF THE MAXIMUM FINE OR IMPRISONMENT GIVEN FOR THE ORIGINAL OFFENSE, AND TO PROVIDE THAT A PERSON MAY BE CONVICTED OF CHILD ENDANGERMENT IN ADDITION TO THE OTHER OFFENSES.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

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

SECTION   1.   The 1976 Code is amended by adding:

"Section 56-5-2947.   (A) A person eighteen years of age or over is guilty of child endangerment when:

(1)   the person is in violation of:

(a)   Section 56-5-2930; or

(b)   Section 56-5-2945; and

(2)   the person has one or more passengers under sixteen years of age in the motor vehicle when the violation occurs.

If more than one passenger under sixteen years of age is in the vehicle when a violation of subsection (A)(1) occurs, the person may be charged with only one violation of this section.

(B)   Upon conviction the person must be punished by:

(1)   a fine of not more than one-half of the maximum fine allowed for committing the violation enumerated in subsection(A)(1), when the person is fined for that offense;

(2)   a term of imprisonment of not more than one-half of the maximum term of imprisonment allowed for committing the violation enumerated in subsection (A)(1), when the person is imprisoned for the offense; or

(3)   both a fine and imprisonment as prescribed in items (1) and (2) when the person is fined and imprisoned for the offense.

(C)   No portion of the penalty assessed under subsection (B) may be suspended or revoked and probation may not be awarded.

(D)   In addition to imposing the penalties for offenses enumerated in subsection (A)(1) and the penalties contained in subsection (B), the department must suspend the person's driver's license for sixty days. Sections 56-1-1320 and 56-5-2990 as they relate to enrollment in an alcohol and drug safety action program and to the issuance of a provisional driver's license will not be effective until the sixty-day suspension period is completed.

(E)   A person may be convicted under this section for child endangerment in addition to being convicted for an offense enumerated in subsection (A)(1).

(F)   The court that has jurisdiction over an offense enumerated in subsection (A)(1) has jurisdiction over the offense of child endangerment.

(G)   A first offense charge for a violation of this section may not be used as the only evidence for taking a child into protective custody pursuant to Section 20-7-610(A) and (F)."

SECTION   2.   This act takes effect upon approval by the Governor.

Amend title to conform.

/s/H. Samuel Stilwell             /s/Herbert Kirsh
/s/Michael T. Rose                /s/John L. Scott, Jr.
/s/Maggie W. Glover               /s/John M. "Jake" Knotts
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

H. 3096 -- Reps. Thomas, Marchbanks, Simrill, Cromer, Walker, Vaughn, Wilder, Tripp, Elliott, Wells, Stille, Kelley, Richardson, Gamble, Stuart, Phillips, D. Smith, Law, Allison, Harrison, Keyserling, Tucker, Meacham, Shissias, Robinson, Baxley and Spearman: A BILL TO AMEND SECTION 16-1-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "VIOLENT CRIMES", SO AS TO INCLUDE THE CRIME OF HOMICIDE BY CHILD ABUSE.

On motion of Senator HOLLAND, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator HOLLAND spoke on the report.

On motion of Senator HOLLAND, with unanimous consent, Free Conference Powers were granted.

Whereupon, the PRESIDENT appointed Senators HOLLAND, MOORE and COURSON to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

H. 3426 -- Reps. Harrison and Hodges: A BILL TO AMEND SECTION 1-23-600, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEARINGS AND PROCEEDINGS OF THE ADMINISTRATIVE LAW JUDGE DIVISION, SO AS TO FURTHER PROVIDE FOR THE RECORD WHICH MUST BE KEPT REGARDING THE CASES AND HEARINGS BEFORE AN ADMINISTRATIVE LAW JUDGE.

Senator WILLIAMS asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

The Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.

H. 3663 -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-3-2340 SO AS TO CREATE AN ANTIQUE MOTOR VEHICLE DEALER LICENSE PLATE.

Senator REESE asked unanimous consent to make a motion to recall the Bill from the Committee on Transportation.

There was no objection.

On motion of Senator REESE, with unanimous consent, the Bill was ordered placed on the Calendar.

The following were introduced:

S. 878 -- Senator Setzler: A CONCURRENT RESOLUTION TO PROCLAIM THE WEEK OF NOVEMBER 12-18, 1995, AMERICAN EDUCATION WEEK, AND WEDNESDAY, NOVEMBER 15, 1995, AS EDUCATIONAL SUPPORT DAY.

The Concurrent Resolution was adopted, ordered sent to the House.

S. 879 -- Senator Martin: A BILL TO AMEND SECTION 7-7-450, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VOTING PRECINCTS FOR PICKENS COUNTY, SO AS TO CONSOLIDATE THE UNIVERSITY PRECINCT AND THE FORT HILL PRECINCT IN PICKENS COUNTY INTO A SINGLE PRECINCT ENTITLED THE "FORT HILL" PRECINCT.

Read the first time and ordered placed on the local and uncontested Calendar without reference.

On motion of Senator ALEXANDER, S. 879 was ordered to receive a second and third reading on the next two consecutive legislative days.

S. 880 -- Senators Wilson, Ryberg, Lander and Setzler: A SENATE RESOLUTION RECOGNIZING AND SALUTING THE ROTARY CLUB OF CAYCE, LEXINGTON COUNTY, ON ITS FORTIETH ANNIVERSARY AND COMMENDING THIS OUTSTANDING ORGANIZATION FOR ITS SERVICE AND COMMUNITY CONTRIBUTIONS OVER THE LAST FOUR DECADES.

The Senate Resolution was adopted.

S. 881 -- Senator Thomas: A SENATE RESOLUTION TO COMMEND CORPORAL HENRY CLAYTON FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HIS DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 882 -- Senator Thomas: A SENATE RESOLUTION TO COMMEND SERGEANT JAMES A. COOPER FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HIS DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 883 -- Senator Thomas: A SENATE RESOLUTION COMMENDING SOUTH CAROLINA DEPARTMENT OF CORRECTIONS OFFICER MICHAEL A. GREEN FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE PERFORMING HIS DUTIES DURING THE APRIL 17, 1995, DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION IN RICHLAND COUNTY.

The Senate Resolution was adopted.

S. 884 -- Senator Thomas: A SENATE RESOLUTION COMMENDING SOUTH CAROLINA DEPARTMENT OF CORRECTIONS OFFICER ROOSEVELT FIELDS FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE PERFORMING HIS DUTIES DURING THE APRIL 17, 1995, DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION IN RICHLAND COUNTY.

The Senate Resolution was adopted.

S. 885 -- Senator Thomas: A SENATE RESOLUTION COMMENDING CORPORAL MARVIN J. LEE FOR HIS EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HIS DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 886 -- Senator Thomas: A SENATE RESOLUTION COMMENDING CORRECTIONAL OFFICER WILLIE E. LEGGINS FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HIS DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 887 -- Senator Thomas: A SENATE RESOLUTION COMMENDING CORPORAL LESTER J. SHAW FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HIS DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 888 -- Senator Thomas: A SENATE RESOLUTION COMMENDING CORRECTIONAL OFFICER EVADNEY SPRULL FOR EXCEPTIONAL SERVICE AND BRAVERY WHILE IN THE PERFORMANCE OF HER DUTIES DURING A MAIN DISTURBANCE AT THE BROAD RIVER CORRECTIONAL INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 889 -- Senator Thomas: A SENATE RESOLUTION COMMENDING MR. TOMMY HAZELTON, FOOD SERVICE DIRECTOR AT THE BROAD RIVER CORRECTIONAL INSTITUTION, FOR HIS COURAGE AND BRAVERY DURING A MAIN DISTURBANCE AT THE INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

S. 890 -- Senator Thomas: A SENATE RESOLUTION COMMENDING MS. MARY MATHIS, FOOD SERVICE SUPERVISOR AT THE BROAD RIVER CORRECTIONAL INSTITUTION, FOR HER COURAGE AND BRAVERY DURING A MAIN DISTURBANCE AT THE INSTITUTION ON APRIL 17, 1995.

The Senate Resolution was adopted.

H. 4248 -- Reps. Stuart, Riser, Koon, Knotts, Gamble and Wright: A CONCURRENT RESOLUTION COMMENDING CHARLES A. WHITEHEAD, DIRECTOR OF PUBLIC SAFETY FOR LEXINGTON COUNTY, FOR HIS EXEMPLARY PUBLIC SERVICE, EXTENDING BEST WISHES FOR MUCH HAPPINESS FOLLOWING HIS RETIREMENT FROM THIS POSITION AND DESIGNATING HIM A "SOUTH CAROLINA STAR".

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4254 -- Reps. R. Smith, Sharpe, Huff, Mason and Clyburn: A CONCURRENT RESOLUTION TO RECOGNIZE THE ESTABLISHMENT OF THE INTERNATIONAL FOREST CENTER'S FOREST RESEARCH AND PRODUCTS LABORATORY LOCATED IN AIKEN COUNTY AS BEING A VALUABLE RESOURCE FOR SOUTH CAROLINA AND THE SOUTHEAST AND TO COMMEND THE EFFORTS OF THOSE WHO MAKE THIS ACCOMPLISHMENT POSSIBLE.

Whereas, the members of the General Assembly are very pleased to learn of the establishment of the International FoReST Center's Forest Research and Products Laboratory in Aiken; and

Whereas, the International FoReST Center was established to provide technical assistance to the southeastern United States' forest-related industries, particularly those in Georgia and South Carolina, and to promote the development, transfer, and commercialization of applied research and technologies; and

Whereas, FoReST stands for forest and related products, research, science, and technology; and

Whereas, the laboratory is staffed by a capable and dedicated executive director, Jeffrey W. Immel, who oversees the development of the center; and

Whereas, the focus areas of the laboratory are forest research and management, forest products research and management, manufacturing process research, electronic instrumentation, waste management and recycling, robotics, chemical process research, risk assessment, bioremediation technology, process modeling capabilities, communication technology, solid wood research, and educational outreach; and

Whereas, the forest, pulp, and paper industry is the eighth largest manufacturing industry in the United States, with the majority of the industry's growth being concentrated in the southeast, but it faces competition from low cost foreign producers; and

Whereas, the laboratory will establish a technical alliance with major universities, technical colleges, research centers, and governmental agencies in the southeast, particularly the University of South Carolina, Clemson University, the Medical University of South Carolina, South Carolina State University, the Georgia Institute of Technology, the University of Georgia, Augusta College, Paine College, Clark Atlanta University, Fort Valley State College, the Medical College of Georgia, and the Department of Energy (Savannah River Site); and

Whereas, the vision of laboratory, to exceed the needs and expectations of its customers and to be the recognized leader in the forest industry through the safe application of appropriate technologies by experienced multidisciplinary teams, is one to be valued and encouraged in all industries. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly, by this resolution, hereby recognize the establishment of the International FoReST Center's Forest Research and Products Laboratory located in Aiken County as being a valuable resource for South Carolina and the southeast and commend the efforts of those who make this accomplishment possible.

Be it further resolved that a copy of this resolution be forwarded to Executive Director, Jeffrey W. Immel.

Referred to the Committee on Invitations.

H. 4261 -- Reps. Kirsh, Delleney, Meacham, McCraw, Moody-Lawrence and Simrill: A CONCURRENT RESOLUTION TO EXPRESS THE HEARTFELT THANKS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE CHILDREN OF ANNE SPRINGS CLOSE FOR SETTING ASIDE TWO THOUSAND THREE HUNDRED ACRES IN YORK COUNTY TO PRESERVE AN AREA THAT WILL SERVE AS A BUFFER AGAINST URBAN ENCROACHMENT, PROTECTING THE FORT MILL COMMUNITY FOR GENERATIONS TO COME.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4262 -- Reps. G. Brown and Hines: A CONCURRENT RESOLUTION COMMENDING AND THANKING JOHN E. WALL OF BISHOPVILLE FOR HIS OUTSTANDING LEADERSHIP AND CONTRIBUTIONS TO PUBLIC EDUCATION AS SUPERINTENDENT OF THE LEE COUNTY SCHOOL DISTRICT AND EXTENDING HIM BEST WISHES FOR HAPPINESS AND SUCCESS FOLLOWING HIS RETIREMENT.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4263 -- Rep. Boan: A CONCURRENT RESOLUTION TO DECLARE DECEMBER 3-9, 1995, AS SOUTH CAROLINA HIGH SCHOOL FOOTBALL COACHES APPRECIATION WEEK AND DECLARE FRIDAY, DECEMBER 8, 1995, AS "SOUTH CAROLINA HIGH SCHOOL FOOTBALL COACHES APPRECIATION DAY".

Whereas, the members of the General Assembly are aware that the high school football coaches in South Carolina perform unselfishly to be able to mold bodies and minds of the young men with whom they come in contact; and

Whereas, many of these individuals' efforts are overlooked with only the winners being recognized at the end of their football season; and

Whereas, the efforts and sacrifices of all football coaches in high schools should be recognized in a fitting day and week. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly of the State of South Carolina declare December 3-9, 1995, as South Carolina High School Football Coaches Appreciation Week, and declare Friday, December 8, 1995, as "South Carolina High School Football Coaches Appreciation Day".

Be it further resolved that a copy of this resolution be forwarded to Keith Richardson, Executive Secretary of the High School Football Coaches Association.

Referred to the Committee on Invitations.

H. 4264 -- Rep. Stuart: A CONCURRENT RESOLUTION CONGRATULATING PELION HIGH SCHOOL OF LEXINGTON COUNTY ON WINNING THE 1995 CLASS A GIRLS SOFTBALL STATE CHAMPIONSHIP.

The Concurrent Resolution was adopted, ordered returned to the House.

H. 4265 -- Reps. Gamble, Koon, Knotts, Stuart, Riser, Wright and Spearman: A CONCURRENT RESOLUTION TO EXPRESS THE DEEPEST SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE FAMILY AND MANY FRIENDS OF MR. JOHN W. PARRISH, SR., OF WEST COLUMBIA, A PROMINENT SOUTH CAROLINA BUSINESS AND CIVIC LEADER, UPON HIS DEATH.

The Concurrent Resolution was adopted, ordered returned to the House.

S. 844 -- Senators McConnell, Passailaigue, Rose and Giese: A CONCURRENT RESOLUTION MEMORIALIZING THE UNITED STATES CONGRESS TO DIRECT THE GENERAL SERVICES ADMINISTRATION TO TRANSFER OWNERSHIP OF THE REMAINS OF THE ATTACK SUBMARINE THE HUNLEY TO THE STATE OF SOUTH CAROLINA FOR ENSHRINEMENT AT THE NAVAL MARINE MUSEUM IN PATRIOT'S POINT, SOUTH CAROLINA.

The House returned the Resolution with amendments.

On motion of Senator McCONNELL, the Senate concurred in the House amendments and a message was sent to the House accordingly.

S. 847 -- Senator Bryan: A BILL TO AMEND ACT 779 OF 1988, RELATING TO THE ELECTION OF MEMBERS OF THE BOARD OF TRUSTEES FOR LAURENS COUNTY SCHOOL DISTRICTS 55 AND 56, SO AS TO REVISE THE BOUNDARIES OF THE SINGLE-MEMBER DISTRICTS FROM WHICH TRUSTEES ARE ELECTED.

The House returned the Bill with amendments.

On motion of Senator BRYAN, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

H. 4146 -- Ways and Means Committee: A BILL TO AMEND THE 1976 CODE BY ADDING CHAPTER 28 TO TITLE 12 SO AS TO CONFORM SOUTH CAROLINA'S METHOD OF IMPOSING AN EXCISE TAX ON MOTOR FUEL TO FEDERAL LAW; AND TO REPEAL SECTIONS 39-41-20, 39-41-30, 39-41-40, 39-41-50, 39-41-60, 39-41-100, 39-41-110, 39-41-120, 39-41-130, AND 39-41-140 RELATING TO PETROLEUM AND PETROLEUM PRODUCTS, SECTIONS 12-27-210, 12-27-220, 12-27-230, 12-27-240, 12-27-250, 12-27-260, 12-27-270, 12-27-280, 12-27-300, 12-27-310, 12-27-320, 12-27-330, 12-27-340, 12-27-350, 12-27-360, 12-27-510, 12-27-520, 12-27-530, 12-27-540, 12-27-550, 12-27-560, 12-27-570, 12-27-580, 12-27-590, 12-27-600, 12-27-610, 12-27-710, 12-27-720, 12-27-730, 12-27-740, 12-27-750, 12-27-760, 12-27-770, 12-27-780, 12-27-790, 12-27-800, 12-27-810, 12-27-820, 12-27-830, 12-27-1010, 12-27-1110, 12-27-1120, 12-27-1210, 12-27-1220, 12-27-1230, 12-27-1240, 12-27-1250, 12-27-1260, 12-27-1265, AND 12-27-1510 RELATING TO GASOLINE TAXES, SECTIONS 12-29-10, 12-29-20, 12-29-30, 12-29-40, 12-29-110, 12-29-120, 12-29-130, 12-29-140, 12-29-150, 12-29-310, 12-29-320, 12-29-340, 12-29-350, 12-29-360, 12-29-370, 12-29-380, 12-29-390, 12-29-400, 12-29-410, 12-29-420, 12-29-430, 12-29-440, 12-29-610, 12-29-620, and 12-29-630 RELATING TO THE TAX ON MOTOR FUELS OTHER THAN GASOLINE, AND ARTICLE 1, CHAPTER 27, TITLE 12, RELATING TO GENERAL PROVISIONS FOR GASOLINE TAXES.

The House returned the Bill with amendments.

On motion of Senator J. VERNE SMITH, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

S. 90 -- Senators Wilson, Rose, Giese and Elliott: A BILL TO AMEND SECTION 16-11-330, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CRIMES OF ARMED ROBBERY AND ATTEMPTED ARMED ROBBERY, SO AS TO EXTEND THE OFFENSE TO CASES IN WHICH A PERSON ALLEGES HE IS ARMED WHILE USING A REPRESENTATION OF A DEADLY WEAPON OR AN OBJECT WHICH A PERSON MAY REASONABLY BELIEVE TO BE A DEADLY WEAPON.

The House returned the Bill with amendments.

On motion of Senator MOORE, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

S. 875 -- Senators Hayes, Peeler, Gregory and Short: A CONCURRENT RESOLUTION TO EXPRESS THE HEARTFELT THANKS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE CHILDREN OF ANNE SPRINGS CLOSE FOR SETTING ASIDE TWO THOUSAND THREE HUNDRED ACRES IN YORK COUNTY TO PRESERVE AN AREA THAT WILL SERVE AS A BUFFER AGAINST URBAN ENCROACHMENT, PROTECTING THE FORT MILL COMMUNITY FOR GENERATIONS TO COME.

Returned with concurrence.

Received as information.

S. 877 -- Senator McConnell: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY TO ROSE MARY S. SMITH FOR HER DEDICATED SERVICE TO THE GENERAL ASSEMBLY ON THE OCCASION OF HER RETIREMENT AND WISHING FOR HER HAPPINESS AND SUCCESS IN ALL THE YEARS TO COME.

Returned with concurrence.

Received as information.

THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.

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 be changed to that of Acts and enrolled for Ratification:

H. 3731 -- Reps. Cooper, Kinon, Askins, Quinn, Herdklotz, Neilson, Scott, Cobb-Hunter, Hines, Keyserling, Inabinett, Bailey, Mason, Easterday, Rogers, Wilder, Moody-Lawrence, White, Cato, Shissias, J. Harris, Stuart, Hutson, Wright, Koon, Allison, Trotter, Gamble, McCraw, Lloyd, Byrd, Littlejohn, Wells, Howard, J. Brown, Haskins, Limehouse, Phillips, Elliott, Seithel, Whatley and S. Whipper: A BILL TO AMEND SECTION 8-11-83, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PAYROLL DEDUCTION FOR DUES OF THE STATE EMPLOYEES' ASSOCIATION, SO AS TO ALSO AUTHORIZE A PAYROLL DEDUCTION FOR THE DUES OF THE SOUTH CAROLINA TROOPERS' ASSOCIATION.

H. 4233 -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD - RESEARCH AND STATISTICS, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SOUTH CAROLINA HOSPITALS, DESIGNATED AS REGULATION DOCUMENT NUMBER 1860, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3148 -- Reps. Davenport, Walker, Allison, Vaughn, Simrill, Inabinett, Lloyd and T. Brown: A BILL TO AMEND SECTION 59-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF COMMISSIONERS OF THE SCHOOL FOR THE DEAF AND THE BLIND, SO AS TO ADD A MEMBER WHO REPRESENTS THE INTEREST OF PERSONS WITH MULTIPLE HANDICAPS.

H. 3463 -- Reps. Harrison, Shissias, Neal, Klauber, Cromer, Sheheen, Stuart and Quinn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-2386 SO AS TO PROHIBIT A PERSON FROM SERVING ON A LOCAL FOSTER CARE REVIEW BOARD IF THE PERSON IS THE SUBJECT OF A REPORT OF CHILD ABUSE OR NEGLECT OR HAS BEEN CONVICTED OF CERTAIN CRIMINAL OFFENSES; TO REQUIRE THE DIVISION FOR REVIEW OF THE FOSTER CARE OF CHILDREN TO OBTAIN RECORD CHECKS FROM THE DEPARTMENT OF SOCIAL SERVICES AND SLED, TO CERTIFY ELIGIBILITY TO SERVE ON LOCAL BOARDS, AND TO EXEMPT THE DIVISION FROM FEES FOR DEPARTMENT OF SOCIAL SERVICES RECORD CHECKS; AND TO AMEND SECTION 20-7-690, AS AMENDED, RELATING TO CONFIDENTIALITY OF CHILD ABUSE AND NEGLECT RECORDS OF THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO AUTHORIZE THE DIVISION FOR THE REVIEW OF FOSTER CARE OF CHILDREN ACCESS TO INFORMATION TO CERTIFY THAT NOMINEES TO AND MEMBERS OF LOCAL FOSTER CARE REVIEW BOARDS ARE ELIGIBLE TO SERVE.

H. 3630 -- Reps. Kelley, Keegan, Worley, Martin, Trotter, Witherspoon and Thomas: A BILL TO AMEND SECTION 61-3-990, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESTRICTIONS ON SALES BY RETAIL DEALERS OF ALCOHOLIC BEVERAGES, SO AS TO AUTHORIZE THE SALE OF ALCOHOLIC BEVERAGES IN SEALED CONTAINERS OF TWO OUNCES OR LESS FOR CONSUMPTION IN COMMERCIAL AIRCRAFT ENGAGED IN INTERSTATE COMMERCE.

Senator RANKIN asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

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

H. 3685 -- Reps. Walker, Baxley, Fleming, Neilson, Hines, Allison, Townsend, Beatty, Chamblee, Littlejohn, Wells, Davenport, Trotter, Lanford, Marchbanks and D. Smith: A BILL TO AMEND SECTION 59-30-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TESTING ARRANGEMENTS ON THE EXIT EXAMINATION FOR STUDENTS WITH LEARNING DISABILITIES, SO AS TO PROVIDE THAT STUDENTS WITH DYSCALCULIA, AND WITH OTHER DOCUMENTED LEARNING DISABILITIES IN MATHEMATICS AS STIPULATED BY REGULATION OF THE STATE BOARD OF EDUCATION, MAY USE A CALCULATOR ON THE MATH PORTIONS OF THE EXIT EXAMINATION.

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

H. 3733 -- Reps. Elliott, Inabinett, G. Brown, Neilson, Hines, Cain, Wright, Lloyd, Littlejohn, Jaskwhich, T. Brown, Govan, Stoddard, Bailey, Jennings, Rhoad, Phillips, Meacham, Kinon, Davenport and Chamblee: A BILL TO AMEND SECTION 27-40-210, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS UNDER THE RESIDENTIAL LANDLORD AND TENANT ACT, SO AS TO ADD CERTAIN LANGUAGE TO THE DEFINITION OF "FAIR-MARKET RENTAL VALUE", AND ADD A DEFINITION FOR "SECURITY DEPOSIT"; TO AMEND SECTION 27-40-240, RELATING TO NOTICE PROVISIONS UNDER THE RESIDENTIAL LANDLORD AND TENANT ACT, SO AS TO, AMONG OTHER THINGS, CLARIFY CERTAIN REFERENCES, AND DELETE THE REFERENCE TO A REPEALED CODE SECTION; TO AMEND SECTION 27-40-530, RELATING TO TENANT OBLIGATIONS AND ACCESS, SO AS TO PROVIDE THAT A TENANT MAY NOT CHANGE LOCKS ON THE DWELLING UNIT WITHOUT THE PERMISSION OF THE LANDLORD; TO AMEND SECTION 27-40-610, RELATING TO TENANT REMEDIES AND NONCOMPLIANCE BY THE LANDLORD IN GENERAL, SO AS TO PROVIDE THAT THE TENANT MAY RECOVER ACTUAL DAMAGES AND OBTAIN INJUNCTIVE RELIEF IN A MAGISTRATE'S OR CIRCUIT COURT, WITHOUT POSTING BOND, FOR "UNREASONABLE" RATHER THAN "ANY" NONCOMPLIANCE BY THE LANDLORD WITH THE RENTAL AGREEMENT OR SECTION 27-40-440; TO AMEND SECTION 27-40-650, RELATING TO TENANT REMEDIES AND FIRE OR CASUALTY DAMAGE, SO AS TO PROVIDE THAT AN ACCOUNTING FOR RENT IN THE EVENT OF TERMINATION OR APPORTIONMENT MUST BE MADE AS OF THE DATE OF THE FIRE OR CASUALTY UNLESS THE FIRE OR CASUALTY WAS DUE TO THE TENANT'S NEGLIGENCE OR CAUSED BY THE TENANT; TO AMEND SECTION 27-40-720, RELATING TO LANDLORD REMEDIES AND NONCOMPLIANCE AFFECTING HEALTH AND SAFETY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE TENANT SHALL REIMBURSE THE LANDLORD FOR CERTAIN COSTS; TO AMEND SECTION 27-40-730, RELATING TO LANDLORD REMEDIES FOR ABSENCE, NONUSE, AND ABANDONMENT OF A DWELLING UNIT, SO AS TO PROVIDE THAT IF THE TENANT HAS VOLUNTARILY TERMINATED THE UTILITIES AND THERE IS AN UNEXPLAINED ABSENCE OF A TENANT AFTER DEFAULT IN PAYMENT OF RENT, ABANDONMENT IS CONSIDERED IMMEDIATE AND THE FIFTEEN-DAY RULE DOES NOT APPLY; AND TO AMEND SECTION 27-40-790, RELATING TO THE RESIDENTIAL LANDLORD AND TENANT ACT AND THE PAYMENT OF RENT INTO COURT, SO AS TO DELETE THE WORD "JUDGMENT" AND REPLACE IT WITH THE WORD "DECISION".

Senator STILWELL explained the Bill.

H. 3104 -- Reps. Shissias, Stille and Kelley: A BILL TO AMEND SECTION 20-7-1318, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN INCOME-WITHHOLDING TO ENFORCE SUPPORT ORDERS, SO AS TO REVISE THE DEFINITION OF "SUPPORT ORDER" AND TO CORRECT A CROSS-REFERENCE.

H. 3787 -- Reps. Richardson, Cotty, Rice, Cobb-Hunter, Keyserling, J. Brown, Worley, S. Whipper, Limehouse, Moody-Lawrence, Byrd, Shissias, Herdklotz, Lloyd, D. Smith, Wilkes, Mason and Thomas: A BILL TO AMEND SECTION 12-33-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALCOHOLIC BEVERAGE LICENSES FOR PURPOSES OF THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE FOR PRORATED LICENSES; TO REPEAL SECTION 12-33-220, RELATING TO AN OBSOLETE PROVISION ALLOWING PRORATION OF LICENSES, AND TO PROVIDE FOR REFUNDS IN CASES OF CERTAIN LICENSES ISSUED AFTER NOVEMBER, 1994.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator GREG SMITH proposed the following amendment (3787R001.GS), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:

/SECTION _____. Chapter 5, Title 61 of the 1976 Code is amended by adding:

"Section 61-5-185.   (A)   Permits authorized by Section 61-5-180 may be issued to bona fide nonprofit organizations and businesses established and licensed under Section 61-5-50, upon application and payment of the filing and permit fees, as authorized in subsection (B).

(B)   Notwithstanding any other provision of law, an organization or business may qualify for the issuance of such permits if:

(1)   the applicant is an organization or business that is located east of the intracoastal waterway in an area of the county that adjoins a county that has passed a referendum authorizing the issuance of permits pursuant to Section 61-5-180 and has annual accommodations tax collections in excess of six million dollars;

(2)   the annual accommodations tax collections in the county where the applicant is located exceeds five hundred thousand dollars; and

(3) a majority of the qualified electors of the area vote in a referendum in favor of the issuance of the permits. The petition must clearly identify the area of the county for which the referendum is sought. The county election commission shall conduct a referendum upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the area for which the authorization to issue permits is sought. The county election commission shall review and certify that the requisite number of signatures has been obtained within a reasonable period of time after receipt not to exceed thirty days and the referendum must be held not less than thirty nor more than forty days after such certification. The election commission shall cause a notice to be published in a newspaper circulated in the area of the county for which authorization to issue a permit is sought at least seven days before the referendum. The state election laws shall apply to the referendum mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the Department of Revenue. The question on the ballot shall read substantially as follows:

'Shall the Department of Revenue be authorized to issue temporary permits in the (portion of the unincorporated area of the county) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'

A referendum for this purpose for a given county area may not be held more often than once in forty-eight months. However, nothing in this section shall be construed to affect a referendum held pursuant to Section 61-5-180.

The expenses of any such referendum must be paid by the county or municipality conducting the referendum."/

Amend title to conform.

Senator RANKIN explained the amendment.

On motion of Senator SALEEBY, the Bill was carried over.

H. 3787 -- Reps. Richardson, Cotty, Rice, Cobb-Hunter, Keyserling, J. Brown, Worley, S. Whipper, Limehouse, Moody-Lawrence, Byrd, Shissias, Herdklotz, Lloyd, D. Smith, Wilkes, Mason and Thomas: A BILL TO AMEND SECTION 12-33-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALCOHOLIC BEVERAGE LICENSES FOR PURPOSES OF THE ALCOHOLIC BEVERAGE CONTROL ACT, SO AS TO PROVIDE FOR PRORATED LICENSES; TO REPEAL SECTION 12-33-220, RELATING TO AN OBSOLETE PROVISION ALLOWING PRORATION OF LICENSES, AND TO PROVIDE FOR REFUNDS IN CASES OF CERTAIN LICENSES ISSUED AFTER NOVEMBER, 1994.

Senator SALEEBY asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator SALEEBY proposed the following amendment (BBM\10348JM.95), which was adopted:

Amend the bill, as and if amended, page 2, by striking SECTION 2 and inserting:

/SECTION   2.   Notwithstanding any other provision of law:

(1)   all biennial licenses and permits granted pursuant to Title 61 of the 1976 Code shall be for a period of one year only and not longer;

(2)   the Code Commissioner is authorized and directed, in keeping with the provisions of item (1) of this section, to conform any statutory law necessary to reflect an annual period for these licenses and permits and shall delete the words "biennial" and "biennially" in this context and replace them with the words "annual" and "annually". Further, the amounts of fees for these licenses and permits shall be, and hereby are, reduced to an amount equaling one-half of the amounts or fees stated for biennial licenses and permits, and the Code Commissioner is authorized and directed to change the amounts of these fees accordingly.

SECTION   3.   This act takes effect upon approval by the Governor./

Amend title to conform.

Senator GREG SMITH proposed the following amendment (3787R002.GS), which was adopted:

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

/SECTION   1.   Section 12-33-210 of the 1976 Code, as last amended by Act 501 of 1992, is further amended by adding at the end:

"A person who initially applies for a license after the first day of a license period shall pay license fees in accordance with the schedule provided in Section 61-5-80(B)."

SECTION   2.   Section 61-1-105 of the 1976 Code is amended to read:

"Section 61-1-105.   If a biennial licensee or permittee under this title closes the licensed or permitted business for loss of the business lease or due to fire or other natural disaster or dies within for any reason during the first year of the biennial license or permit year period, the licensee or permittee or his estate must be refunded the amount of the license or permit fee attributable to the second year of the biennial license or permit year period. No licensee or permittee is eligible for a refund under the provisions of this section if the license or permit has been canceled, relinquished, or revoked as a result of an enforcement action or a failure to adhere to the conditions of the license or permit."

SECTION   3.   Section 61-3-710 of the 1976 Code, as last amended by Section 1583, Act 181 of 1993, is further amended to read:

"Section 61-3-710.   (A)   Licenses issued under this chapter expire biennially according to the county where the licensed location is situated. The expiration dates are the last day of:

(1)   February in years which end in an:

(a)   odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;

(b)   even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;

(2)   May in years which end in an:

(a)   odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;

(b)   even number for Lancaster, Marion, Marlboro, Union, and York counties;

(3)   August in years which end in an:

(a)   odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;

(b)   even number for Richland County;

(4)   November in years which end in an:

(a)   odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;

(b)   even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.

(B)   (1)   Licensees in Abbeville, Aiken, Anderson, Calhoun, Edgefield, Greenville, Greenwood, Kershaw, Lee, Orangeburg, and Sumter counties shall obtain a one-year license in 1992. Beginning in 1993 these licensees shall obtain a biennial license.

(2)   Licensees in Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, Lancaster, Marion, Marlboro, Union, Williamsburg, and York counties whose license expires in 1993 shall obtain a one-year license. Beginning in 1994 these licensees shall obtain a biennial license.

(3)   Licensees located in counties not provided in item (1) or (2) whose license expires in 1992 or 1993 shall obtain a biennial license upon their first license renewal or registration after June 30, 1992.

(C)   The department shall prorate license fees for license years 1992-94 according to the time the licenses are valid."

SECTION   4.   Section 61-5-70 of the 1976 Code, as last amended by Section 1584, Act 181 of 1993, is further amended to read:

"Section 61-5-70.   (A)   Licenses issued under this article expire biennially according to the county where the licensed location is situated. The expiration dates are the last day of:

(1)   February in years which end in an:

(a)   odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;

(b)   even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;

(2)   May in years which end in an:

(a)   odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;

(b)   even number for Lancaster, Marion, Marlboro, Union, and York counties;

(3)   August in years which end in an:

(a)   odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;

(b)   even number for Richland County;

(4)   November in years which end in an:

(a)   odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;

(b)   even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.

(B)   (1)   Licensees in Abbeville, Aiken, Anderson, Calhoun, Edgefield, Greenville, Greenwood, Kershaw, Lee, Orangeburg, and Sumter counties shall obtain a one-year license in 1992. Beginning in 1993 these licensees shall obtain a biennial license.

(2)   Licensees in Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, Lancaster, Marion, Marlboro, Union, Williamsburg, and York counties whose license expires in 1993 shall obtain a one-year license. Beginning in 1994 these licensees shall obtain a biennial license.

(3)   Licensees in counties not provided in item (1) or (2) whose license expires in 1992 or 1993 shall obtain a biennial license upon their first license renewal or registration after June 30, 1992.

(C)   The department shall prorate license fees for license years 1992-94 according to the time the license is valid."
SECTION   5.   Chapter 5, Title 61 of the 1976 Code is amended by adding:

"Section 61-5-185.   (A)   Permits authorized by Section 61-5-180 may be issued to bona fide nonprofit organizations and businesses established and licensed under Section 61-5-50, upon application and payment of the filing and permit fees, as authorized in subsection (B).

(B)   Notwithstanding any other provision of law, an organization or business may qualify for the issuance of such permits if:

(1)   the applicant is an organization or business that is located east of the intracoastal waterway in an area of the county that adjoins a county that has passed a referendum authorizing the issuance of permits pursuant to Section 61-5-180 and has annual accommodations tax collections in excess of six million dollars;

(2)   the annual accommodation tax collections in the county where the applicant is located exceeds five hundred thousand dollars; and

(3)   a majority of the qualified electors of the area vote in a referendum in favor of the issuance of the permits. The petition must clearly identify the area of the county for which the referendum is sought. The county election commission shall conduct a referendum upon petition of at least ten percent but not more than twenty-five hundred qualified electors of the area for which the authorization to issue permits is sought. The county election commission shall review and certify that the requisite number of signatures has been obtained within a reasonable period of time after receipt not to exceed thirty days and the referendum must be held not less than thirty nor more than forty days after such certification. The election commission shall cause a notice to be published in a newspaper circulated in the area of the county for which authorization to issue a permit is sought at least seven days before the referendum. The state election laws shall apply to the referendum mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the Department of Revenue. The question on the ballot shall read substantially as follows:

'Shall the Department of Revenue be authorized to issue temporary permits in the (portion of the unincorporated area of the county) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for sales?'

A referendum for this purpose for a given county area may not be held more often than once in forty-eight months. However, nothing in this section shall be construed to affect a referendum held pursuant to Section 61-5-180.

The expenses of any such referendum must be paid by the county or municipality conducting the referendum."

SECTION   6.   Section 61-9-310 of the 1976 Code, as last amended by Section 1586, Act 181 of 1993, is further amended to read:

"Section 61-9-310.   (A)   Every person engaging in the business of selling beer, ale, porter, wine, or a beverage which has been declared to be nonalcoholic and nonintoxicating under Section 61-9-10 shall apply to the department for a permit to sell these beverages. Each applicant shall pay a filing fee of two hundred dollars which is not refundable. Retail dealers shall pay to the department four hundred dollars biennially for retail permits, and wholesale dealers shall pay to the department two thousand dollars biennially for wholesale permits. Separate permits are required for each separate place of business.

(B)   All permits issued under this chapter expire biennially according to the county where the place of business is situated. The expiration dates are:

(1)   the last day of February in years which end in an:

(a)   odd number for Allendale, Bamberg, Barnwell, Beaufort, and Berkeley counties;

(b)   even number for Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, and Williamsburg counties;

(2)   the last day of May in years which end in an:

(a)   odd number for Cherokee, Chester, Chesterfield, Darlington, Dillon, Fairfield, Florence, and Horry counties;

(b)   even number for Lancaster, Marion, Marlboro, Union, and York counties;

(3)   the last day of August in years which end in an:

(a)   odd number for Calhoun, Kershaw, Lee, Orangeburg, and Sumter counties;

(b)   even number for Richland County;

(4)   the last day of November in years which end in an:

(a)   odd number for Abbeville, Aiken, Anderson, Edgefield, Greenville, and Greenwood counties;

(b)   even number for Laurens, Lexington, McCormick, Newberry, Oconee, Pickens, Saluda, and Spartanburg counties.

(C)   (1)   Permittees in Abbeville, Aiken, Anderson, Calhoun, Edgefield, Greenville, Greenwood, Kershaw, Lee, Orangeburg, and Sumter shall obtain a one-year permit in 1992. Beginning in 1993 these permittees shall obtain a biennial permit.

(2)   Permittees in Charleston, Clarendon, Colleton, Dorchester, Georgetown, Hampton, Jasper, Lancaster, Marion, Marlboro, Union, Williamsburg, and York counties whose permit expires in 1993 shall obtain a one-year permit. Beginning in 1994, these permittees shall obtain a biennial permit.

(3)   Permittees in counties not provided in item (1) or (2) whose permit expires in 1992 or 1993 shall obtain a biennial permit upon their first permit renewal or registration after June 30, 1992.

(D)   The department shall prorate permit fees for permit years 1992-94 according to the length of time the permit is valid.

(C)     A person who initially applies for a permit after the first day of a permit period shall pay permit fees in accordance with the schedule provided in Section 61-5-80(B)."

SECTION   7.   Section 12-33-220 of the 1976 Code is repealed.

SECTION   8.   Anyone who purchased a license on or after June 30, 1992, and paid a full two-year fee for a partial period shall be reimbursed for the portion not covered by a two-year period on a pro-rata basis.

SECTION   9.   This act takes effect upon approval by the Governor; however, SECTION 2 applies to biennial licenses or permits issued after June 30, 1992./

There being no further amendments, the Bill was read the third time and ordered returned to the House of Representatives with amendments.

H. 3839 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTION 34-3-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COPIES AND REPRODUCTIONS OF BANKING RECORDS AND THEIR ADMISSIBILITY INTO EVIDENCE, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH THESE RECORDS MAY BE COPIED AND REPRODUCED, TO REVISE THE ENTITIES TO WHICH THIS SECTION APPLIES, AND TO FURTHER PROVIDE FOR THE MANNER IN WHICH COPIES AND REPRODUCTIONS OF THESE RECORDS MAY BE ADMITTED INTO EVIDENCE.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator LAND proposed the following amendment (PFM\7557BDW.95):

Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

/SECTION __.   Section 44-2-20, as last amended by Section 80C, Part II, Act 497 of 1984, is amended by adding appropriately numbered items to read:

"( )   'Affiliate' means persons who are affiliates to each other if, directly or indirectly, either one controls or has the power to control the other or a third person controls or has the power to control both. Indicia of control include, but are not limited to, interlocking management or ownership, identity of interest among family members, shared facilities and equipment, common use of employees, or a business entity organized following the suspension, debarment, or exclusion of a person, under applicable regulation, where the person has the same or similar management, ownership, or principal employees as the suspended, debarred, or excluded person.

( )   'Familial relationship' means a connection or association by family or relatives, in which a family member or relative has a material interest. Family or relatives include father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, grandparent, great grandparent, grandchild, great grandchild, step grandparent, step great grandparent, step grandchild, step great grandchild, or fiancee.

( )   'Financial relationship' means a connection or association through a material interest or sources of income which exceed five percent of annual gross income from a business entity.

( )   'Related interest' means affiliated companies, principal owners of the client company, or any other party with which the client deals where one of the parties can influence the management or operation policies of the other."

SECTION __.   Section 44-2-50(A) of the 1976 Code, as added by Act 486 of 1988, is amended to read:

"(A)   The department shall promulgate regulations relating to permitting, release detection, prevention, and correction applicable to all owners and operators of underground storage tanks as may be necessary to protect human health and the environment. The department in these regulations may distinguish between types and classes of underground storage tanks. The regulations promulgated pursuant to this section shall must include the following requirements for underground storage tanks:

(1)   requirements for submitting a permit application and obtaining permits prior to before the installation and operation of an underground storage tank;

(2)   requirements for maintaining a leak detection system, an inventory control system together with tank testing, or a comparable system or method designed to identify releases in a manner consistent with the protection of human health and the environment;

(3)   requirements for maintaining records of any monitoring or leak detection system or inventory control system or tank testing or comparable system;

(4)   requirements for reporting of releases and corrective action taken in response to a release from an underground storage tank;

(5)   requirements for taking corrective action in response to a release from an underground storage tank. The requirements mandated by this item, other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, do not apply to a person who, without participating in the management of an underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing; and

(6)   requirements for the closure of tanks to prevent future releases of regulated substances into the environment."

SECTION __.   Section 44-2-80 of the 1976 Code, as added by Act 486 of 1988, is amended to read:

"Section 44-2-80.   (A)   Any person who releases a regulated substance from an underground storage tank shall immediately shall undertake to contain, remove, and abate the release to the satisfaction of the department. However, the undertaking to contain, remove, or abate a release must not be considered an admission of responsibility for the release by the person taking the action. Notwithstanding this requirement, the department may undertake the removal of the abatement measures and other site rehabilitation actions in response to a release and may contract and retain agents who shall operate under the discretion of the department if a responsible party is unwilling or unable to conduct the cleanup site rehabilitation.

(B)   The requirement to conduct site rehabilitation actions other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, do not apply to a person who, without participating in the management of an underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing.

(C)   A person who acquires title to any property on which an underground storage tank has been removed is not responsible for site rehabilitation actions other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment. This exemption applies to the extent the release is eligible for compensation from the Superb Account if both of the following conditions are met:

(1)   The person does not have or has not had any familial, financial, or related interest with the person who owned or operated the underground storage tanks that were previously in use at that property. The person must not be an affiliate of the owner or operator.

(2)   The person allows for reasonable access by the underground storage tank owner or operator or the department to perform site rehabilitation activities."/

Amend title to conform.

Senator LAND explained the amendment.

On motion of Senator LAND, the Bill was carried over.

H. 3839 -- Labor, Commerce and Industry Committee: A BILL TO AMEND SECTION 34-3-540, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COPIES AND REPRODUCTIONS OF BANKING RECORDS AND THEIR ADMISSIBILITY INTO EVIDENCE, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH THESE RECORDS MAY BE COPIED AND REPRODUCED, TO REVISE THE ENTITIES TO WHICH THIS SECTION APPLIES, AND TO FURTHER PROVIDE FOR THE MANNER IN WHICH COPIES AND REPRODUCTIONS OF THESE RECORDS MAY BE ADMITTED INTO EVIDENCE.

Senator LAND asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator LAND proposed the following amendment (PFM\7557BDW.95), which was adopted:

Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

/SECTION __.   Section 44-2-20, as last amended by Section 80C, Part II, Act 497 of 1984, is amended by adding appropriately numbered items to read:

"( )   'Affiliate' means persons who are affiliates to each other if, directly or indirectly, either one controls or has the power to control the other or a third person controls or has the power to control both. Indicia of control include, but are not limited to, interlocking management or ownership, identity of interest among family members, shared facilities and equipment, common use of employees, or a business entity organized following the suspension, debarment, or exclusion of a person, under applicable regulation, where the person has the same or similar management, ownership, or principal employees as the suspended, debarred, or excluded person.

( )   'Familial relationship' means a connection or association by family or relatives, in which a family member or relative has a material interest. Family or relatives include father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister, grandparent, great grandparent, grandchild, great grandchild, step grandparent, step great grandparent, step grandchild, step great grandchild, or fiancee.

( )   'Financial relationship' means a connection or association through a material interest or sources of income which exceed five percent of annual gross income from a business entity.

( )   'Related interest' means affiliated companies, principal owners of the client company, or any other party with which the client deals where one of the parties can influence the management or operation policies of the other."

SECTION __.   Section 44-2-50(A) of the 1976 Code, as added by Act 486 of 1988, is amended to read:

"(A)   The department shall promulgate regulations relating to permitting, release detection, prevention, and correction applicable to all owners and operators of underground storage tanks as may be necessary to protect human health and the environment. The department in these regulations may distinguish between types and classes of underground storage tanks. The regulations promulgated pursuant to this section shall must include the following requirements for underground storage tanks:

(1)   requirements for submitting a permit application and obtaining permits prior to before the installation and operation of an underground storage tank;

(2)   requirements for maintaining a leak detection system, an inventory control system together with tank testing, or a comparable system or method designed to identify releases in a manner consistent with the protection of human health and the environment;

(3)   requirements for maintaining records of any monitoring or leak detection system or inventory control system or tank testing or comparable system;

(4)   requirements for reporting of releases and corrective action taken in response to a release from an underground storage tank;

(5)   requirements for taking corrective action in response to a release from an underground storage tank. The requirements mandated by this item, other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, do not apply to a person who, without participating in the management of an underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing; and

(6)   requirements for the closure of tanks to prevent future releases of regulated substances into the environment."

SECTION __.   Section 44-2-80 of the 1976 Code, as added by Act 486 of 1988, is amended to read:

"Section 44-2-80.   (A)   Any person who releases a regulated substance from an underground storage tank shall immediately shall undertake to contain, remove, and abate the release to the satisfaction of the department. However, the undertaking to contain, remove, or abate a release must not be considered an admission of responsibility for the release by the person taking the action. Notwithstanding this requirement, the department may undertake the removal of the abatement measures and other site rehabilitation actions in response to a release and may contract and retain agents who shall operate under the discretion of the department if a responsible party is unwilling or unable to conduct the cleanup site rehabilitation.

(B)   The requirement to conduct site rehabilitation actions other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, do not apply to a person who, without participating in the management of an underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing.

(C)   A person who acquires title to any property on which an underground storage tank has been removed is not responsible for site rehabilitation actions other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment. This exemption applies to the extent the release is eligible for compensation from the Superb Account if both of the following conditions are met:

(1)   The person does not have or has not had any familial, financial, or related interest with the person who owned or operated the underground storage tanks that were previously in use at that property. The person must not be an affiliate of the owner or operator.

(2)   The person allows for reasonable access by the underground storage tank owner or operator or the department to perform site rehabilitation activities."/

Amend title to conform.

Senator LAND explained the amendment.

There being no further amendments, the Bill was read the third time and ordered returned to the House of Representatives with amendments.

H. 4158 -- Ways and Means Committee: A BILL TO AMEND SECTIONS 12-4-710 AND 12-4-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF THE DEPARTMENT OF REVENUE AND TAXATION WITH RESPECT TO PROPERTY TAX EXEMPTIONS AND THE METHOD OF APPLYING FOR THE EXEMPTIONS, SO AS TO REVISE OR EXTEND THE TIME FOR FILING EXEMPTION APPLICATIONS AND ADD ADDITIONAL CATEGORIES OF EXEMPTIONS FOR WHICH NO APPLICATION IS REQUIRED; TO PROVIDE THAT LISTING A PROPERTY AS EXEMPT ON A PROPERTY TAX RETURN IS CONSIDERED AN APPLICATION; TO REQUIRE PROPERTY TAXPAYERS FILING PROPERTY TAX RETURNS TO CLAIM THE EXEMPTION ON THE RETURN FOR EACH YEAR THE PROPERTY IS EXEMPT; AND TO PROVIDE WHEN ADDITIONAL APPLICATIONS MUST BE FILED BY TAXPAYERS NOT REQUIRED TO FILE ANNUAL PROPERTY TAX RETURNS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CONFORM IT TO THE AMENDMENTS MADE BY THIS ACT AND TO EXTEND THE EXEMPTION FOR TWO PERSONAL MOTOR VEHICLES OF PERSONS REQUIRED TO USE WHEELCHAIRS TO INSTANCES WHEN THE OWNER IS ELIGIBLE FOR THE SPECIAL MOTOR VEHICLE LICENSE PLATE ALLOWED SUCH PERSONS.

Senator BRYAN asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment (6048HTC.95) proposed by Senator THOMAS and previously printed in the Journal of May 25, 1995.

Senator THOMAS asked unanimous consent to withdraw the previously proposed amendment.

There was no objection.

The amendment was withdrawn.

On motion of Senator RANKIN, the Bill was carried over.

H. 4158 -- Ways and Means Committee: A BILL TO AMEND SECTIONS 12-4-710 AND 12-4-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS OF THE DEPARTMENT OF REVENUE AND TAXATION WITH RESPECT TO PROPERTY TAX EXEMPTIONS AND THE METHOD OF APPLYING FOR THE EXEMPTIONS, SO AS TO REVISE OR EXTEND THE TIME FOR FILING EXEMPTION APPLICATIONS AND ADD ADDITIONAL CATEGORIES OF EXEMPTIONS FOR WHICH NO APPLICATION IS REQUIRED; TO PROVIDE THAT LISTING A PROPERTY AS EXEMPT ON A PROPERTY TAX RETURN IS CONSIDERED AN APPLICATION; TO REQUIRE PROPERTY TAXPAYERS FILING PROPERTY TAX RETURNS TO CLAIM THE EXEMPTION ON THE RETURN FOR EACH YEAR THE PROPERTY IS EXEMPT; AND TO PROVIDE WHEN ADDITIONAL APPLICATIONS MUST BE FILED BY TAXPAYERS NOT REQUIRED TO FILE ANNUAL PROPERTY TAX RETURNS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO PROPERTY TAX EXEMPTIONS, SO AS TO CONFORM IT TO THE AMENDMENTS MADE BY THIS ACT AND TO EXTEND THE EXEMPTION FOR TWO PERSONAL MOTOR VEHICLES OF PERSONS REQUIRED TO USE WHEELCHAIRS TO INSTANCES WHEN THE OWNER IS ELIGIBLE FOR THE SPECIAL MOTOR VEHICLE LICENSE PLATE ALLOWED SUCH PERSONS.

Senator RANKIN asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the third reading of the Bill.

Senator RANKIN proposed the following amendment (4158R001.LAR), which was adopted:

Amend the bill, as and if amended, page 16, after line 43, by adding an appropriately numbered new SECTION to read:

/SECTION   ____. A. Section 12-37-220(B) of the 1976 Code is amended by adding an appropriately numbered item at the end to read:

"( )   Boats and motors valued below the amount determined by the county auditor necessary to generate a tax bill equal to fifteen dollars."

B.   This section takes effect upon approval by the Governor and applies for property tax years beginning after 1995./

Amend title to conform.

There being no further amendments, the Bill was read the third time and ordered returned to the House with amendments.

The following Bills were read the third time and ordered sent to the House of Representatives:

S. 274 -- Senators Short and Rose: A BILL TO AMEND SECTION 20-7-1315, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CHILD SUPPORT OBLIGATIONS SO AS TO DIRECT THE CHILD SUPPORT ENFORCEMENT DIVISION OF THE DEPARTMENT OF SOCIAL SERVICES TO DEVELOP AN EMPLOYER NEW HIRE REPORTING PROGRAM.

Senator SHORT explained the Bill.

S. 298 -- Senator Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-26-35 SO AS TO PROVIDE THAT FOR PURPOSES OF THE PRACTICE TEACHING REQUIREMENT NECESSARY FOR TEACHER CERTIFICATION, A TEACHER WITH AT LEAST FIVE YEARS TEACHING EXPERIENCE IN A CRITICAL NEEDS CURRICULA IN AN ACCREDITED PRIVATE OR PAROCHIAL SCHOOL IN THIS STATE IS ENTITLED TO RECEIVE A WAIVER FROM THE PRACTICE TEACHING REQUIREMENT IN THE SAME MANNER A TEACHER IN THE PUBLIC SCHOOLS OF THIS STATE IN THE CRITICAL NEEDS CERTIFICATION PROGRAM MAY RECEIVE SUCH A WAIVER.

S. 642 -- Senator Thomas: A BILL TO AMEND SECTION 56-9-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT, SELF-INSURERS, AND DETERMINATION OF FINANCIAL RESPONSIBILITY, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE, AMONG OTHER THINGS, THAT A COPY OF THE APPLICANT'S LATEST FINANCIAL STATEMENT PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT LICENSED TO DO BUSINESS IN SOUTH CAROLINA INDICATING THAT THE APPLICANT HAS A POSITIVE NET WORTH MUST BE SUBMITTED FOR A DETERMINATION OF FINANCIAL RESPONSIBILITY, AND THAT AN APPLICANT MAY BE REQUIRED TO DEPOSIT IN A SEGREGATED SELF-INSURED CLAIMS ACCOUNT THE SUM OF THREE THOUSAND DOLLARS FOR EACH VEHICLE TO BE COVERED BY THE SELF-INSURER'S CERTIFICATE.

The following Bills having been read the second time with notice of general amendments were ordered placed on the third reading Calendar:

H. 3984 -- Reps. Cotty, Sheheen, Baxley, Boan and Wilkes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 12 TO CHAPTER 25, TITLE 50, SO AS TO PROVIDE RESTRICTIONS FOR MOTORBOATS ON LAKE WATEREE.

Senator HOLLAND asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

S. 501 -- Senator Gregory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-110 SO AS TO PROVIDE THAT A COUNTY OR MUNICIPALITY MAY NOT IMPOSE A MORATORIUM ON A CONSTRUCTION PROJECT FOR WHICH A PERMIT HAS BEEN GRANTED WITHOUT GIVING A TWO-WEEK NOTICE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY IN WHICH THE PROJECT IS LOCATED AND REQUIRE AT LEAST TWO READINGS WHICH ARE A WEEK APART BEFORE A MORATORIUM MAY BE IMPOSED.

H. 4015 -- Rep. Wilkins: A BILL TO AMEND SECTION 33-37-260, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AMENDMENTS TO CHARTERS FOR BUSINESS DEVELOPMENT CORPORATIONS, SO AS TO DELETE THE PROVISION PROHIBITING THE CREATION OF NEW CLASSES OF STOCK; TO AMEND SECTION 33-37-410, RELATING TO MEMBERS, STOCKHOLDERS, AND BONDHOLDERS OF THE CORPORATIONS, SO AS TO CLARIFY THE AUTHORIZED INVESTORS AND INVESTMENT LIMITS; TO AMEND SECTION 33-37-450, RELATING TO VOTING BY STOCKHOLDERS AND MEMBERS OF THE CORPORATION, SO AS TO REVISE THE PROVISIONS TO MAKE THEM CONSISTENT AND COMPATIBLE WITH HAVING NEW CLASSES OF STOCK; TO AMEND SECTION 33-37-460, AS AMENDED, RELATING TO LOANS TO THE CORPORATION, SO AS TO REVISE THE PROVISIONS FOR LOAN LIMITS AND INVESTMENT LIMITS; TO AMEND SECTION 33-37-630, RELATING TO THE ELECTION OF THE BOARD OF DIRECTORS OF CORPORATIONS, SO AS TO CLARIFY THE REQUIREMENTS FOR ELECTION; AND TO AMEND THE 1976 CODE BY ADDING SECTION 33-37-470 SO AS TO AUTHORIZE THE ISSUANCE OF NEW CLASSES OF STOCK AND ARTICLE 9 TO CHAPTER 37, TITLE 33 SO AS TO PROVIDE FOR APPLICATION OF THE BUSINESS CORPORATIONS ACT.

Senator WILSON explained the Bill.

H. 3604 -- Reps. Wilkins, McMahand, Herdklotz, Haskins, Littlejohn, Wells, Rice, Jaskwhich, D. Smith, Tripp, Walker, Davenport, Fair, Allison, Lanford and Cato: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 55-11-220 SO AS TO CREATE AN AIRPORT ENVIRONS AREA WITHIN THE GREENVILLE-SPARTANBURG AIRPORT DISTRICT AND PROVIDE THAT AN AIRPORT ENVIRONS AUTHORITY IS CREATED AND CONFERRED CERTAIN POWERS TO ENSURE COMPATIBLE LAND USE OF PROPERTY IN THE ENVIRONS AREA, PROVIDE FOR THE COMPOSITION OF THE AUTHORITY, AND PROVIDE THAT IF THERE IS A CONFLICT BETWEEN THE POWERS CONFERRED ON THE AUTHORITY AND OTHER REGULATIONS APPLICABLE TO THE SAME AREA, THE PROVISIONS CONFERRED TO THE AUTHORITY PURSUANT TO THE PROVISIONS OF THIS ACT CONTROL.

Senator J. VERNE SMITH asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

H. 3578 -- Reps. Wilkins, McMahand, Tripp, Haskins, Walker, Littlejohn, Allison, Rice, Easterday, D. Smith, Davenport, Jaskwhich, Herdklotz, Wells, Lanford, Cato and Fair: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 5-3-15 AND 55-11-185 SO AS TO PROVIDE THAT THE REAL PROPERTY OWNED BY AN AIRPORT DISTRICT COMPRISED OF MORE THAN ONE COUNTY MAY NOT BE ANNEXED BY A MUNICIPALITY WITHOUT PRIOR WRITTEN APPROVAL OF THE GOVERNING BODY OF THE DISTRICT, AND PROVIDE THAT THE REAL PROPERTY OWNED BY THE GREENVILLE-SPARTANBURG AIRPORT DISTRICT MAY NOT BE ANNEXED BY A MUNICIPALITY WITHOUT PRIOR WRITTEN APPROVAL OF THE GREENVILLE-SPARTANBURG AIRPORT COMMISSION.

Senator J. VERNE SMITH asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

H. 4008 -- Reps. Govan, Cave, Cobb-Hunter, Stuart, Rhoad and Sharpe: A BILL TO AMEND ACT 346 OF 1975, RELATING TO THE TRICOUNTY COMMISSION ON ALCOHOL AND DRUG ABUSE, SO AS TO REVISE THE COMPOSITION OF THE COMMISSION; TO DELETE THE REQUIREMENT THAT THE CHAIRMANSHIP MUST ROTATE; TO ADD ADDITIONAL POWERS AND DUTIES; TO PROVIDE ADDITIONAL DISTRIBUTION OF COPIES OF THE COMMISSION AUDIT REPORT; AND TO PROVIDE THAT ALL MEMBERS CURRENTLY SERVING ON THE COMMISSION CONTINUE TO SERVE UNTIL THE EXPIRATION OF THEIR CURRENT TERMS.

Senator MATTHEWS asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

Senator GREG SMITH asked unanimous consent to withdraw the previously proposed amendment.

There was no objection.

The Bill was given a second reading with notice of general amendments.

H. 3907 -- Agriculture, Natural Resources and Environmental Affairs Committee: A BILL TO AMEND TITLE 44, CHAPTER 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HAZARDOUS WASTE, BY ADDING ARTICLE 4 SO AS TO PROVIDE FOR DRYCLEANING FACILITY DISCHARGE REHABILITATION, TO CREATE THE DRYCLEANING FACILITY RESTORATION TRUST FUND AND PROVIDE FOR ITS USES, TO ESTABLISH PROCEDURES FOR RECEIVING SITE REHABILITATION FUNDS, TO REQUIRE DRYCLEANING FACILITIES TO REGISTER AND PAY FEES, TO ESTABLISH SURCHARGES FOR CONDUCTING A DRYCLEANING BUSINESS OR FOR PRODUCING OR IMPORTING DRYCLEANING SOLVENTS, AND TO ESTABLISH THE DRYCLEANING ADVISORY COUNCIL AND TO PROVIDE FOR ITS MEMBERSHIP AND DUTIES.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Agriculture and Natural Resources.

The Agriculture and Natural Resources Committee proposed the following amendment (GJK\22019AC.95), which was adopted:

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

Renumber sections to conform.

Amend totals and title to conform.

Senator LEVENTIS explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar with notice of general amendments.

The following Bill and Joint Resolution having been read the second time were ordered placed on the third reading Calendar:

H. 4224 -- Reps. Stille, Carnell, McAbee and Townsend: A BILL TO PROVIDE FOR PAYMENT FOR THE ATTENDANCE OF MEETINGS BY THE ABBEVILLE COUNTY TRANSPORTATION COMMITTEE.

On motion of Senator LANDER, H. 4224 was ordered to receive a third reading on Wednesday, May 31, 1995.

H. 4009 -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOLID WASTE MANAGEMENT: CONSTRUCTION, DEMOLITION AND LAND-CLEARING DEBRIS LANDFILLS, DESIGNATED AS REGULATION DOCUMENT NUMBER 1786, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator COURTNEY asked unanimous consent to take the Resolution up for immediate consideration.

There was no objection.

On motion of Senator COURTNEY, with unanimous consent, H. 4009 was ordered to receive a third reading on Wednesday, May 31, 1995.

H. 4226 -- Reps. Stuart, Cobb-Hunter, Sharpe, Felder and Govan: A BILL TO AUTHORIZE THE MEMBERS OF THE ORANGEBURG COUNTY TRANSPORTATION COMMITTEE TO BE REIMBURSED MILEAGE FROM FUNDS AVAILABLE FOR ADMINISTRATIVE EXPENSES OF THE COMMITTEE AND TO PROVIDE FOR THE ALLOWABLE RATE.

Senator MATTHEWS asked unanimous consent to take up the Bill for immediate consideration. The question was the second reading of the Bill.

The Bill was read the second time, passed and ordered to a third reading.

On motion of Senator MATTHEWS, H. 4226 was ordered to receive a third reading on Wednesday, May 31, 1995.

H. 4018 -- Rep. Cato: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-16-75 SO AS TO PROHIBIT A SPECIAL INSPECTOR FROM PERFORMING ELEVATOR INSPECTIONS UNDER CERTAIN CIRCUMSTANCES.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator LEATHERMAN proposed the following amendment (BBM\10338AC.95), which was adopted:

Amend the bill, as and if amended, by deleting SECTION 2 and inserting:

/SECTION   2.   The 1976 Code is amended by adding:

"Section 40-59-255.   (A)   An inspection report issued by a licensed home inspector under this chapter must be on a form approved by the commission. For purposes of this section, a form that contains the same information as the commission-approved form is considered to have met the requirements of this section.

(B)   Nothing in this section may require a home inspector to inspect every item contained in the commission-approved form, nor may it limit a home inspector from performing a home inspection whose scope goes beyond the information contained in the commission-approved form. A home inspector shall indicate on the inspection report which items, if any, were not inspected.

(C)   A home inspector shall disclose the scope and limitations, if any, of each inspection before performing a home inspection."

SECTION   3.   The 1976 Code is amended by adding:

"Section 40-59-257.   'Advertisement' means any form of public notice, however disseminated. An advertisement by a licensed home inspector shall include the name, business name, address, and license number of the licensee. The use of any false, misleading, unfair, or deceptive practice in any advertisement is grounds for disciplinary action as provided for under this chapter."

SECTION   4.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

S. 874 -- Senator Alexander: A BILL TO CREATE THE OCONEE COMMUNITY THEATRE AUTHORITY, PROVIDE FOR ITS RESPONSIBILITIES, MEMBERSHIP OF THE AUTHORITY, TERMS, OFFICERS, COMMITTEES, REQUIRE THE AUTHORITY TO PROPOSE AND ADOPT A BUDGET, AND THE RULES OF THE ORDER UNDER WHICH THE AUTHORITY MUST OPERATE.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

On motion of Senator ALEXANDER, the Bill was committed to the Oconee Delegation.

H. 3567 -- Rep. Quinn: A BILL TO AMEND SECTION 61-1-95, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BEER, WINE, AND ALCOHOLIC BEVERAGE PERMITS AND LICENSES, SO AS TO DELETE THE PROHIBITION ON THE ISSUE OF A PERMIT OR LICENSE FOLLOWING SUSPENSION OR REVOCATION TO ANY PERSON WITHIN THE THIRD DEGREE OF KINSHIP TO THE PERSON WHOSE PERMIT OR LICENSE WAS SUSPENDED AND TO DELETE THE PROHIBITION ON ISSUING A PERMIT OR LICENSE FOLLOWING SUSPENSION OR REVOCATION TO A PARTNER OR PERSON WITH A FINANCIAL INTEREST IN THE PREMISES OF THE ESTABLISHMENT FOR WHICH THE PERMIT OR LICENSE WAS SUSPENDED.

On motion of Senator MOORE, the Bill was carried over.

H. 3518 -- Rep. Richardson: A BILL TO AMEND SECTION 38-31-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE "SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT", SO AS TO CHANGE THE DEFINITION OF "COVERED CLAIM"; AND TO AMEND SECTION 38-31-100, RELATING TO THE SAME ACT, THE REQUIREMENT THAT CLAIMANTS EXHAUST RIGHTS UNDER OTHER POLICIES, AND CLAIMS RECOVERABLE FROM MORE THAN ONE ASSOCIATION, SO AS TO DELETE CERTAIN LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ANY RECOVERY UNDER THIS ACT MUST BE REDUCED BY THE STATUTORY CAP APPLICABLE TO THE OTHER INSURANCE GUARANTY ASSOCIATION OR ITS EQUIVALENT.

The Senate proceeded to a consideration of the Bill. The question being the second reading of the Bill.

Senator SALEEBY proposed the following amendment (S-INS\001):

Amend the bill, as and if amended, by striking SECTION 2 in its entirety.

Amend sections to conform

Amend title to conform.

On motion of Senator MOORE, the Bill was carried over.

At 12:45 P.M., on motion of Senator MOORE, the Senate receded from business until 2:00 P.M.

The Senate reassembled at 2:00 P.M., and was called to order by the PRESIDENT.

On motion of Senator MOORE, with unanimous consent, leave was granted to Senators THOMAS, WILSON and WASHINGTON to attend a meeting of a Committee of Conference on H. 3613, to be counted in any quorum calls, and they were to be notified if any roll call votes were taken.

There was no objection and the motion was adopted.

On motion of Senator MOORE, with unanimous consent, leave was granted to Senators HOLLAND, COURSON and MOORE to attend a meeting of a Committee of Conference on S. 219, to be counted in any quorum calls, and they were to be notified if any roll call votes were taken.

There was no objection and the motion was adopted.

On motion of Senator MOORE, with unanimous consent, leave was granted to Senators DRUMMOND, J. VERNE SMITH and PEELER to attend a meeting of a Committee of Conference on H. 3362 (the General Appropriation Bill), to be counted in any quorum calls, and they were to be notified if any roll call votes were taken.

There was no objection and the motion was adopted.

Senator MARTIN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Senator MARTIN moved that a call of the Senate be made. The following Senators answered the call:

Alexander                 Boan                      Bryan
Cork                      Courson                   Courtney
Drummond                  Elliott                   Ford
Giese                     Glover                    Gregory
Hayes                     Holland                   Jackson
Land                      Lander                    Leatherman
Leventis                  Martin                    Matthews
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Passailaigue
Patterson                 Peeler                    Rankin
Reese                     Richter                   Rose
Russell                   Ryberg                    Saleeby
Setzler                   Short                     Smith, G.
Smith, J.V.               Stilwell                  Thomas
Waldrep                   Washington                Williams
Wilson                    

A quorum being present, the Senate resumed.

H. 3096 -- Reps. Thomas, Marchbanks, Simrill, Cromer, Walker, Vaughn, Wilder, Tripp, Elliott, Wells, Stille, Kelley, Richardson, Gamble, Stuart, Phillips, D. Smith, Law, Allison, Harrison, Keyserling, Tucker, Meacham, Shissias, Robinson, Baxley and Spearman: A BILL TO AMEND SECTION 16-1-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "VIOLENT CRIMES", SO AS TO INCLUDE THE CRIME OF HOMICIDE BY CHILD ABUSE.

Senator HOLLAND asked unanimous consent to take up for immediate consideration the Report of the Committee of Conference.

Senator LEATHERMAN objected.

Senator DRUMMOND, Chairman of the Senate Finance Committee, was recognized to give a status report regarding the work of the Committee of Conference.

Senator J. VERNE SMITH was recognized to speak on the report.
SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

H. 3901 -- Reps. Harrell, Fleming, Cobb-Hunter, Seithel, A. Young, Limbaugh, Wilkins, Wofford, Hallman, H. Brown, Cain, Cotty, Martin, D. Smith, Fulmer, L. Whipper, Shissias, Quinn, McCraw, Knotts, Stuart, Harrison, Sheheen, Huff, Klauber, Beatty, Limehouse, Whatley, Harwell, Hodges, J. Young, Govan, Herdklotz, Jennings, Richardson, Hutson, Delleney and McElveen: A BILL TO AMEND SECTION 12-51-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REDEMPTION OF REAL PROPERTY SOLD FOR DELINQUENT TAXES, SO AS TO INCREASE THE INTEREST RATE FROM EIGHT TO TWELVE PERCENT IN THE LAST SIX MONTHS OF THE REDEMPTION PERIOD FOR ALL REAL PROPERTY NOT ASSESSED AS OWNER-OCCUPIED RESIDENTIAL PROPERTY.

The Senate proceeded to a consideration of the Bill. The question being the adoption of Amendment No. 4 (3901R004.GFM) proposed by Senator McCONNELL and previously printed in the Journal of Monday, May 29, 1995.

On motion of Senator PASSAILAIGUE, with unanimous consent, Amendment No. 4 was carried over.

Senator PASSAILAIGUE asked unanimous consent to take up for immediate consideration Amendment No. 6A.

Senator LEATHERMAN objected.

I have generally supported the plan to allow the state's electorate to vote for a sales tax to eliminate residential property tax. However, Amendment No. 6A incorporates changes in the income tax that will raise the income tax burden on the average two-income, middle-class family. For that reason, I believe the amendment requires further scrutiny.

On motion of Senator HAYES, with unanimous consent, Amendment No. 5 was carried over.

Senator PASSAILAIGUE proposed the following Amendment No. 6A (3901R006.ELP), which was tabled:

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

SECTION   1.   The State Election Commission shall conduct a statewide referendum on November 7, 1995, on the question of raising the sales tax in order to provide property tax relief. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the director of the Department of Revenue and Taxation and the Code Commissioner. The referendum question must read substantially as follows:

"Do you favor raising the statewide sales, use, and casual excise tax rate from five to six percent and replacing the state individual income tax with a flat tax on all income of individuals at a rate of six percent with a non-refundable personal exemption credit of four hundred dollars per exemption to be phased out beginning with adjusted gross income that exceeds fifteen thousand dollars and to provide for a refundable credit for taxes paid to other states in order to grant owner-occupied residential property an exemption from all property taxes levied for operating purposes except those levied pursuant to referendum and those levied by special purpose or public service districts and county special tax districts?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

SECTION   1. A. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-211. (A) For taxable years beginning after 1995, a tax at the rate of six percent is imposed on the South Carolina taxable income of individuals, estates, and trusts.

(B)   For purposes of the tax imposed by this section, South Carolina taxable income is the taxpayer's adjusted gross income as defined under the Internal Revenue Code with the modifications specified in subsection (C) of this section.

(C)   There is allowed as a deduction from South Carolina adjusted gross income interest income on obligations of the United States.

B. Article 3, Chapter 7, Title 12 of the 1976 Code is amended by adding:

"Section 12-7-220. There is allowed as a non-refundable credit against the tax due imposed pursuant to Section 12-7-211 an amount equal to four hundred dollars for each individual taxpayer and dependent claimed by the taxpayer on the taxpayer's federal income tax return. This credit is reduced by an amount equal to $3.25 for each one thousand dollars in excess of fifteen thousand dollars reported on the taxpayer's South Carolina individual income tax return. If a dependent claimed on the taxpayer's federal return files a separate return, the dependent is not allowed the credit provided under this section."

C.   Sections 12-7-210, 12-7-212, 12-7-213, 12-7-215, 12-7-410, 12-7-430, 12-7-435, 12-7-437, 12-7-441, 12-7-460, 12-7-1210, 12-7-1230, and 12-7-1235 of the 1976 Code are repealed for taxable years beginning after 1995.

D.   Individual income tax revenues produced pursuant to the tax imposed by Section 12-7-211 of the 1976 Code that exceed the revenues that would have been produced by the tax imposed by Section 12-7-210 as repealed by this act must be credited to the Property Tax Relief Fund.

SECTION   2.   Chapter 36, Title 12 of the 1976 Code is amended by adding:

Section 12-36-1110.   An additional sales, use, and casual excise tax equal to one percent is imposed on amounts taxable pursuant to this chapter. Revenue of the tax imposed pursuant to this article must be credited to the Property Tax Relief Fund in the State Treasury, a fund separate and distinct from the general fund of the State.

Section 12-36-1120.   (A)   The revenues in the Property Tax Relief Fund must be distributed quarterly beginning October first of each year by the Comptroller General to reimburse property taxing jurisdictions a sum equal to that not collected in the jurisdiction for property tax year 1996 because of Section 12-37-257. If insufficient revenues are available in the Property Tax Relief Fund to pay the required reimbursements, the Comptroller General shall pay the difference from the general fund of the State. County treasurers and municipal governing bodies where appropriate shall file quarterly reports of estimated revenue losses with the Comptroller General in the manner and at the time the Comptroller General directs. After making any changes necessary to ensure accuracy, the Comptroller General shall make reimbursements based on these estimates. The final accounting for the fiscal year must be filed in the manner provided for homestead exemption reimbursements in Section 12-37-270, mutatis mutandis. For purposes of future distributions, property tax year 1996 is deemed the base year.

(B)   Reimbursements for subsequent tax years must equal the base year reimbursement from all sources. The school portion is determined by multiplying revenues above the adjusted base year amount by the ratio that school tax reimbursements represented of total reimbursements from the Property Tax Relief Fund for tax year 1996. These funds must be distributed to school districts through the provisions of the Education Finance Act. The remaining share for local governments must be distributed in the manner provided in Chapter 27 of Title 6."

SECTION   3.   Section 12-36-940 of the 1976 Code is amended to read:

"Section 12-36-940.   Every retailer may add to the sales price:

(1)   no amount on sales of ten cents or less;

(2)   one cent on sales of eleven cents and over, but not in excess of twenty cents;

(3)   two cents on sales of twenty-one cents and over, but not in excess of forty cents;

(4)   three cents on sales of forty-one cents and over, but not in excess of sixty cents;

(5)   four cents on sales of sixty-one cents and over, but not in excess of eighty cents;

(6)   five cents on sales of eighty-one cents and over, but not in excess of one dollar;

(7)   one cent additional for each twenty cents or major fraction thereon in excess of one dollar.

The inability, impracticability, refusal, or failure to add these amounts to the sales price and collect from the purchaser does not relieve the taxpayer from the tax levied by this article.

A retailer may add the amount of the tax to the sales price and the department shall prescribe tables providing the amount to be added to the sales price consistent with the total rate of the tax."

SECTION   4.   A.   The gross proceeds of sales of tangible personal property delivered after June 30, 1996 in this State, either under the terms of a construction contract executed before July 1, 1996, or a written bid submitted before July 1, 1996, culminating in a construction contract entered into before or after July 1, 1996, are exempt from the tax provided in Section 12-36-1110 of the 1976 Code if a verified copy of the contract is filed with the South Carolina Department of Revenue and Taxation before January 1, 1997.

B.   Notwithstanding the date of general imposition of the tax imposed pursuant to Section 12-36-1110 of the 1976 Code, with respect to services that are regularly billed on a monthly basis, the tax is imposed beginning on the first day of the billing period beginning on or after July 1, 1996.

SECTION   5.   Section 11-11-140(D) of the 1976 Code is amended to read:

"(D)   Appropriations from surplus may not be made before the first meeting of the General Assembly following the Comptroller General's closing of the books on the fiscal year in which the surplus occurred and may be appropriated only for nonrecurring purposes. The provisions of this subsection do not apply to appropriations to cover midyear shortfalls in the Property Tax Relief Fund as established pursuant to Article 11, Chapter 36 of Title 12."

SECTION   6.   In each county of the state in which the local option sales and use tax is not imposed, the referendum provided in Section 4-10-30 of the 1976 Code must be held on November 7, 1995. If the question is approved, the tax is imposed in the county in the manner provided by law. In each county in which is imposed the local option sales tax, the referendum provided in Section 4-10-35 of the 1976 Code must be held on November 7, 1995. If the question is approved, the tax is rescinded in the county in the manner provided by law.

SECTION   1.   A.   Article 3, Chapter 37, Title 12 of the 1976 Code is amended by adding:

"Section 12-37-257.   In addition to any other homestead exemption allowed by law, one hundred percent of the fair market value of every homestead qualifying for the assessment ratio provided pursuant to Section 12-43-220(c) is exempt from all ad valorem taxes except ad valorem taxes levied as follows:

(1)   for debt service and for payments pursuant to lease-purchase agreements;

(2)   by special purpose or public service districts;

(3)   county special tax districts;

(4)   ad valorem taxes levied pursuant to a referendum in which a majority of the qualified electors of the jurisdiction voting in the referendum voted in favor of levying the taxes."

B.   Subject to Part I of this act, Section 12-37-257 of the 1976 Code, as added by this section, is effective for property tax years beginning after 1995.

SECTION   2.   Chapter 29, Title 4 of the 1976 Code is amended by adding:

"Section 4-29-72.   For agreements executed after June 30, 1996, the provisions of Section 4-29-67 apply regardless of the amount of the project investment."

SECTION   3.   Section 4-29-10(3) of the 1976 Code is amended to read:

"(3)   'Project' means any land and any buildings and other improvements on the land including, without limiting the generality of the foregoing, water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities, and furnishing which are considered necessary, suitable, or useful by the following or any combination thereof: (a) any enterprise for the manufacturing, processing, or assembling of any agricultural or manufactured products and facilities for an enterprise engaged in the sale or distribution to the public of electricity, gas, or telephone services; (b) any commercial enterprise engaged in storing, warehousing, distributing, transporting, or selling products of agriculture, mining, or industry, or engaged in providing laundry services to hospitals, to convalescent homes, or to medical treatment facilities of any type, public or private, within or outside of the issuing county or incorporated municipality and within or outside of the State; (c) any enterprise for research in connection with any of the foregoing or for the purpose of developing new products or new processes or improving existing products or processes; (d) any enterprise engaged in commercial business including, but not limited to, wholesale, retail, or other mercantile establishments; office buildings; computer centers; tourism, sports, and recreational facilities; convention and trade show facilities; and public lodging and restaurant facilities if the primary purpose is to provide service in connection with another facility qualifying under this subitem; and (e) any enlargement, improvement, or expansion of any existing facility in subitems (a), (b), (c), and (d) of this item. The term 'project' does not include facilities for an enterprise primarily engaged in the sale or distribution to the public of electricity, gas, or telephone services. A project may be located in one or more counties or incorporated municipalities. The term 'project' also includes any structure, building, machinery, system, land, interest in land, water right, or other property necessary or desirable to provide facilities to be owned and operated by any person, firm, or corporation for the purpose of providing drinking water, water, or wastewater treatment services or facilities to any public body, agency, political subdivision, or special purpose district."

SECTION   1.   A.   Section 12-4-310 of the 1976 Code, as last amended by Act 361 of 1992, is further amended by adding at the end:

"(11)   collect taxes on properties assessed by the department as provided in Section 12-4-540 except for business personal property. The State Treasurer shall distribute property taxes collected pursuant to this item daily by electronic transfer to county treasurers for the credit of the taxing entities in the county."

B.   The amendment to Section 12-4-310 of the 1976 Code as contained in this section is effective for taxes due for tax years beginning after 1995.

SECTION   2.   Section 12-4-540(A) of the 1976 Code is amended to read:

"(A)   The commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of corporate headquarters, corporate office facilities, and distribution facilities and of the real and personal property owned, used, or leased by the following businesses in the conduct of their business:

(1)   manufacturing;

(2)   railway;

(3)   private carline;

(4)   airline;

(5)   water, heat, light and power;

(6)   telephone;

(7)   cable television;

(8)   sewer;

(9)   pipeline;

(10)   mining.

In addition, the commission department has the sole responsibility for the appraisal, assessment, and equalization of the taxable values of the business personal property of merchants."

SECTION   3.   A.   Section 12-37-970 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 12-37-970.   The assessment for property taxation of merchants' inventories, equipment, furniture, and fixtures, and manufacturers' real and tangible personal property, and the machinery, equipment, furniture, and fixtures of all other taxpayers required to file returns with the South Carolina Department of Revenue and Taxation for purposes of assessment for property taxation, must be determined by the department from property tax returns submitted by the taxpayers to the department on or before the due date for the taxpayer's state income return, including any extension last day of the fourth month after the close of the accounting period regularly employed by the taxpayer for income tax purposes in accordance with Chapter 7 of this title. The department by regulation shall prescribe the form of return required by this section, the information to be contained in it, and the manner in which the returns must be submitted and shall provide a method of filing this return as a part of the taxpayer's state income tax return. Every taxpayer required to make return to the department of property for assessment for property taxation must make the return to the department not less than once each calendar year. Whenever by a change of accounting period, or otherwise, more than one accounting period ends within any one calendar year, the taxpayer must make one such return within the prescribed time for filing following the end of each of the accounting periods and the department shall determine the assessment from the return setting forth the greatest value.

When property required to be returned as herein provided is sold after the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends after the seller's and before January first next ensuing, the property must be returned by the seller as of the end of his accounting period. The purchaser is not required to list and return the property as of the close of his accounting period during the calendar year of sale. The seller and the purchaser are jointly and singularly liable for the tax that is due and payable by reason of this provision. The provision of this section does not apply to motor vehicles licensed for use on public highways.

When property required to be returned as provided in this section is sold before the end of the seller's accounting year and before January first next ensuing and when the purchaser's accounting year ends before the date of purchase and before January first next ensuing, the property must be listed and returned by the taxpayer holding title as of December thirty-first and is liable for the tax for the ensuing year.

The Department of Revenue and Taxation shall forward the assessments prepared as a result of the returns submitted pursuant to this section for business personal property to the appropriate local taxing authorities no later than August fifteenth of the applicable tax year."

B.   Section 12-37-905 of the 1976 Code is repealed.

C.   This section is effective for property tax years beginning after 1995.

SECTION   4.   A.   Section 12-43-250 of the 1976 Code is amended to read:

"Section 12-43-250.   The Commission shall make sales ratio studies in all counties of the State and when, in the judgment of the Commission, a county needs to reassess or remap property, the Commission shall make application to the circuit court in which the county is located for a determination of whether or not the county shall be required to commence reassessment or remapping. If the circuit court determines that the county needs reassessment or remapping, such county shall be required to commence the reassessment or remapping within thirty days of such determination. All taxable real property in a county must be appraised and equalized once every fourth year beginning with the 1996 property tax year. Upon completion of a reassessment and equalization program, property taxpayers must be notified of any resulting change in value or classification. The values determined by the program first apply for the property tax year beginning after the completion of the program and notification of taxpayers. If a county fails to comply with this section, the Comptroller General shall withhold twenty percent of the reimbursement due the county pursuant to Section 12-36-1120."

B.   The Department of Revenue and Taxation shall establish a schedule of initial reassessments for all counties in conformity with the provisions of Section 12-43-250 of the 1976 Code as amended by this section.

SECTION   5.   A.   Section 12-43-300 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 12-43-300.   (A)   Whenever the market value estimate of any property is fixed by the assessor assessing authority at a sum greater by one thousand dollars or more than the amount returned by the owner or his agent, or whenever any property is valued and assessed for taxation which has not been returned or assessed previously, the assessor assessing authority shall, on or before July first, or as soon thereafter as may be practicable, in the year in which the valuation and assessment is made give written notice thereof to the owner of the property or his agent. In reassessment years, the written reassessment notice to owners or agents must be given by July first. If there is no timely written notice, the prior current year's assessed value must be the basis for assessment for the current succeeding taxable year. The notice must include the prior market value, the total market value estimate, the value estimate if applicable, the assessment ratio, the total new assessment, the percentage changes over the prior market value, if there is no change in use or physical characteristics of the property, number of acres or lots, location of property, tax map, appeal procedure, and other pertinent ownership and legal description data required by the South Carolina Department of Revenue and Taxation. The notice may be served upon the owner or his agent personally or by mailing it to the owner or his agent at his last known place of residence which may be determined from the most recent listing in the applicable telephone directory, Department of Revenue and Taxation Motor Vehicle Registration List, county treasurer's records, or official notice from the property owner or his agent. The owner or his agent, if he objects to the valuation and assessment, shall serve written notice of his objection upon the assessor assessing authority within thirty days of the date of the mailing of the notice. In years when there is no notice of appraisal because of a less than one thousand dollar change or no change in the appraised or assessed value, the owner or agent has until March first to serve written notice of objection upon the assessor assessing authority of the appraised or assessed value. In those years, failure to serve written notice of objection by March first constitutes a waiver of the owner's right of appeal for that tax year and the assessor assessing authority is not required to review any request filed after March first. The assessor assessing authority shall then schedule a conference with the owner or agent within twenty days of receipt of the notice. If the assessor assessing authority requests it, the owner, within thirty days after the conference, shall complete and return to the assessor assessing authority the form as may be approved by the Department of Revenue and Taxation relating to the owner's property and the reasons for his objection. Within thirty days after the conference, or as soon thereafter as practicable, the assessor assessing authority shall mail written notice of his action upon the objection to the owner. The owner or agent, if still aggrieved by the valuation and assessment, may appeal from the action to the Board of Assessment Appeals a department hearing officer by giving written notice of the appeal and the grounds thereof to the assessor assessing authority within thirty days from the date of the mailing of the notice. The assessor assessing authority shall notify promptly the Board of Assessment Appeals hearing officer of the appeal, who shall schedule a hearing on the appeal within thirty days after notice from the assessing authority and notify the taxpayer of the hearing date and furnish the taxpayer a summary of the applicable procedures for the hearing.

(B)   The governing body of the county may by ordinance extend the time for filing an objection to the valuation and assessment of real property resulting from reassessment within a county.

(C)   The Department of Revenue and Taxation shall prescribe a standard reassessment form designed to contain the information required in subsection (A) in a manner that may be understood easily.

(D)   At the hearing provided in subsection (A), the hearing officer shall consider the issues raised by the taxpayer and the assessing authority and subsequently shall make a determination which is binding on both parties. The department shall prescribe the procedure applicable to these hearings which shall require information from both parties sufficient for the hearing officer to make an appropriate determination. These hearings must be conducted informally. Any party aggrieved by the determination of the hearing officer may appeal the decision to the Administrative Law Judge Division in the manner prescribed by law which shall hear the matter de novo as a contested case pursuant to Chapter 23 of Title 1. Notwithstanding the provisions of this section, a taxpayer aggrieved by the determination of the assessing authority whose property is assessed pursuant to Section 12-43-220(a) or who objects to the classification imposed by that section may waive the hearing before the hearing officer and appeal directly to the Administrative Law Judge Division for a de novo hearing of the appeal.

(E)   The department shall provide sufficient hearing officers to hear all appeals expeditiously."

B.   The amendment to Section 12-37-300 of the 1976 Code contained in this section applies to appeals for taxes filed for tax years after 1995.

SECTION   6.   A.   Article 5, Chapter 4, Title 12 of the 1976 Code is amended by adding:

"Section 12-4-580.   The governing body of a county may by ordinance transfer to the department the responsibility for the appraisal, assessment, and equalization of the taxable real property under the jurisdiction of the county assessor. When this transfer occurs, the department shall perform the functions of the county assessor in that county. Before this transfer occurs, the county governing body and the department shall agree to the employees, duties, functions, and other related items to be transferred to the department. Upon agreement, and with the approval of the State Budget and Control Board, the transfer allowed under this section occurs on the first day of July following approval by the board if sufficient funds are appropriated to the department to meet the additional expenses. The State Budget and Control Board shall conduct a study to determine the expenses of the department in the transfer of functions and personnel authorized by this section and shall make recommendations to the General Assembly of the appropriations necessary to meet these expenses."

B.   This section takes effect July 1, 1996.

SECTION   7.   A.   The first paragraph of Section 12-37-90 of the 1976 Code is amended to read:

"Except as provided in Section 12-4-580, all counties shall have a full-time assessor, whose responsibility is appraising and listing all real property, whether exempted or not, except real property required by law to be assessed by the commission department and property owned by the federal government, state government, county government or any of its political subdivisions which is exempt from property taxation. If the assessor discovers that any real property required by law to be assessed by the commission department has been omitted, he shall notify the commission department that such property has been omitted and the commission department shall be is required to appraise and assess the omitted property."

B.   This section takes effect July 1, 1996.

SECTION   8.   Section 12-4-320 of the 1976 Code, as last amended by Act 516 of 1994, is further amended to read:

"Section 12-4-320.   The commission department may:

(1)   make rules and promulgate regulations, not inconsistent with law, to aid in the performance of its duties. The commission department may prescribe the extent, if any, to which these rules and regulations must be applied without retroactive effect;

(2)   upon written application, determine the tax effects of transactions and the tax liability of taxpayers, upon facts furnished to it, and it may revoke or modify the rulings if the facts should develop differently later. The commission department, in its discretion, may publish these rulings. This publication may be in brief hypothetical form so as to give all pertinent facts and decisions without violating the provisions of Section 12-54-240;

(3)   compromise any tax, interest, or penalty imposed by this title or other law assigned to it and may return to the owner, in whole or in part, any goods seized or confiscated;

(4)   enter into a written agreement with a person with regard to a tax liability. If the agreement is approved by a majority of the commissioners the department, it is final and conclusive and the case may not be reopened by administrative or judicial action or otherwise, except in cases of fraud, malfeasance, or misrepresentation;

(5)   publish its findings and decisions in all controversies resolved by it. This publication may be in brief hypothetical form so as to give all pertinent facts, decisions, and reasons without violating the provisions of Section 12-54-240.;

(6)   if damage by natural forces occurs as defined in Section 12-9-310, prescribe temporary rules including, but not limited to, the filing of returns, payment of taxes, and extensions of due dates.;

(7)   waive the retroactive assessment of a state tax when it determines the taxpayer acted in good faith, and that there were reasonable grounds for the taxpayer's interpretation of the applicable law."

SECTION   9.   A.   Section 12-54-160 of the 1976 Code is amended to read:

"Section 12-54-160.   The Commission department, unless prohibited within a specific section, may waive, dismiss, or reduce penalties provided for in this chapter;. Interest may not be waived, dismissed, or reduced except:

(1)   when the taxpayer can establish that he followed professional advice which has proved inaccurate; or

(2)   if the taxpayer can by clear and convincing evidence establish he did not know he was liable for the tax; or

(3)   the imposition of the tax is a result of regulation or other interpretation of existing tax laws."

B.   This section takes effect upon approval by the Governor and applies with respect to interest on underpayments of state taxes assessed on and after that date. The provisions of subsection A. of this section also apply to interest paid or accrued in the three years preceding the effective date of this section, but no refund of interest already paid may be made except upon application therefor to the Department of Revenue and Taxation within ninety days of the effective date of this section.

SECTION   10.   A.   The 1976 Code is amended by adding:

"Section 6-1-60.   (A)   A county, municipality, and a school district must provide notice to the public by advertising the public hearing before the adoption of its budget for the next fiscal year in the nonclassified section of the largest general circulation newspaper in the area. The public hearing must give the residents of this governing body the opportunity to express their concerns and to provide ideas or input for discussion by the local governing entity. This notice must be given fourteen days in advance of the public hearing, and must be a minimum of two columns by ten inches (four and one-half by ten inches) with at least a twenty-four point headline.

(B)   The notice shall include the following:

(1)   the governing entity's name;

(2)   the time, date, and location of the public hearing on the budget;

(3)   the total, actual, and projected expenditures of the current operating fiscal year in the budget of the governing entity;

(4)   the proposed total projected operating expenditures for the next fiscal year as proposed in next year's budget for the governing entity;

(5)   the proposed or estimated percentage change in operating budgets between the current fiscal year and the proposed budget;

(6)   the total, actual, and projected revenue of all property taxes in dollars for the current fiscal year budget;

(7)   the proposed total projected revenue of all property taxes in dollars for the proposed budget;

(8)   the millage in current year dollars for the current fiscal year;

(9)   the proposed millage in dollars as proposed in the budget for the next fiscal year; and

(10)   any new fees or taxes that would affect more than five percent of the total proposed budget.

(C)   The requirements of this section apply in the preparation of annual budget and supplemental appropriations. When a county, municipality, or school district determines that it requires a greater tax rate after the adoption of the budget or during the current fiscal year, or fails to provide notice within the above-specified period, it must also comply with the notice provisions of this section."

B.   This section is effective for fiscal years beginning after June 30, 1995.

SECTION   1.   The following provisions of this act take effect upon approval by the Governor or as otherwise provided:

Part I,

Part II, Section 6

Part IV.

The remaining provisions of this act take effect July 1, 1996, or as otherwise provided but only upon the certification of the State Election Commission to the Code Commissioner and the Department of Revenue and Taxation of a majority "yes" vote in the referendum provided by this section./

Amend title to conform.

Senator PASSAILAIGUE argued in favor of the adoption of the amendment and Senator LEATHERMAN argued contra.

Senator PASSAILAIGUE moved that the amendment be adopted.

Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander                 Boan                      Bryan
Cork                      Courtney                  Drummond
Ford                      Giese                     Glover
Hayes                     Holland                   Jackson
Land                      Lander                    Leatherman
Martin                    Matthews                  McGill
Moore                     Patterson                 Rankin
Ryberg                    Saleeby                   Smith, G.
Smith, J.V.               Stilwell                  Washington

Courson                   Elliott                   Gregory
Leventis                  McConnell                 Mescher
O'Dell                    Passailaigue              Peeler
Reese                     Richter                   Rose
Russell                   Setzler                   Short
Thomas                    Waldrep                   Wilson

The amendment was laid on the table.

I have generally supported the plan to allow the state's electorate to vote for a sales tax to eliminate residential property tax. However, Amendment No. 6A incorporates changes in the income tax that will raise the income tax burden on the average two-income, middle-class family. For that reason, I believe the amendment requires further scrutiny.

The Senate proceeded to a consideration of Amendment No. 7.

Having voted on the prevailing side, Senator FORD moved to reconsider the vote whereby Amendment No. 3, proposed by Senators PASSAILAIGUE, McCONNELL and ROSE, was tabled.

Senator LEATHERMAN raised a Point of Order that the motion to reconsider was out of order inasmuch as the Reading Clerk had begun reading the subsequent amendment and the motion came too late.

Senator McCONNELL spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Senator ELLIOTT proposed the following Amendment No. 7 (JIC\6068HTC.95), which was tabled:

Amend the bill, as and if amended, Section 2, page 5, by inserting an appropriately lettered subsection immediately after line 10 to read:

/___.   The provisions of this section do not apply in any county in which is collected four million dollars or more annually in accommodations tax revenues./

Reletter subsections to conform.

Amend title to conform.

Senator ELLIOTT explained the amendment.

Senator ELLIOTT moved that the amendment be adopted.

Senator LEATHERMAN argued contra to the adoption of the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander                 Boan                      Bryan
Cork                      Courtney                  Drummond
Giese                     Gregory                   Hayes
Jackson                   Land                      Lander
Leatherman                Martin                    McGill
Moore                     Ryberg                    Saleeby
Setzler                   Smith, J.V.               Stilwell
Waldrep                   Williams                  

Courson                   Elliott                   Ford
Leventis                  McConnell                 Mescher
O'Dell                    Passailaigue              Peeler
Reese                     Richter                   Rose
Russell                   Smith, G.                 

The amendment was laid on the table.

Senators WASHINGTON and WILSON desired the Journal to reflect that they were attending a meeting of a Committee of Conference on H. 3613 when this vote on Amendment No. 7 was taken. Had we been present during this vote, we would have voted not to table Amendment No. 7.

Having voted on the prevailing side, Senator FORD moved to reconsider the vote whereby Amendment No. 3, proposed by Senators PASSAILAIGUE, McCONNELL and ROSE, was tabled.

Senator LEATHERMAN moved to table the motion.

Senator LEATHERMAN explained the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Boan                      Bryan                     Cork
Courtney                  Drummond                  Hayes
Holland                   Jackson                   Land
Lander                    Leatherman                McGill
Moore                     Rankin                    Ryberg
Saleeby                   Smith, G.                 Smith, J.V.
Stilwell                  Williams                  

Alexander                 Courson                   Elliott
Ford                      Giese                     Gregory
Leventis                  Martin                    McConnell
Mescher                   O'Dell                    Passailaigue
Peeler                    Reese                     Richter
Rose                      Russell                   Setzler
Waldrep                   

The motion to reconsider was laid on the table.

Senators WASHINGTON and WILSON desired the Journal to reflect that they were attending a meeting of a Committee of Conference on H. 3613 when this vote on the motion to table the motion to reconsider was taken. Had we been present during this vote, we would have voted not to table the motion to reconsider.

Senator ELLIOTT proposed the following Amendment No. 8 (JIC\6066HTC.95), which was tabled:

Amend the bill, as and if amended, by striking SECTION 2 and inserting:

/SECTION   2.   A.   The county election commission in each county shall conduct a referendum in the county on November 7, 1995, on the question of imposing a one cent sales and use tax in the county area in order to provide a property tax credit against the tax liability on owner-occupied residential property. The state election laws apply to this referendum, mutatis mutandis. The commission shall canvass the results of the referendum and certify the results to the county council and to the director of the Department of Revenue and Taxation. The referendum question must read substantially as follows:

"Do you favor imposing a one cent sales, use, and casual excise tax in ___________ County in order to grant a credit against the property tax liability on each owner-occupied residential property in the county?

_         Yes

_         No

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'."

B.   In each county in which a majority "yes" vote is certified in the referendum required pursuant to subsection A of this section, the tax authorized pursuant to Chapter 10, Title 4 of the 1976 Code is imposed in the county effective January 1, 1996, except that the revenue from this tax must be credited to a separate fund in the State Treasury styled The _____________ County Homeowner's Property Tax Credit Fund. Revenue in this fund must be distributed quarterly to the county for the credit of the taxing entities in the county area in the proportion that the amount of tax imposed by the taxing entity on owner-occupied residential property is of the total of such taxes imposed in the county area by all taxing entities in the county. A credit is allowed against the total tax liability on each parcel in the county area assessed pursuant to Section 12-43-220(c) of the 1976 Code, and the credit must be calculated in the manner provided in Section 4-10-40(B) of the 1976 Code. The tax imposed pursuant to this section may be in addition to the tax imposed pursuant to Chapter 10, Title 4 of the 1976 Code under the referendum provided in Section 4-10-30 of the 1976 Code.

C.   If a majority "no" vote is certified in the referendum provided pursuant to subsection A, another referendum may be ordered by the governing body of the county, but any subsequent referendum may be held only at the time of the general election. A majority "yes" vote in a subsequent referendum shall result in imposition of the additional tax on the succeeding January first. Once imposed, the tax authorized by this section may be rescinded in the manner provided in Section 4-10-35 of the 1976 Code, mutatis mutandis./

Amend title to conform.

Senator ELLIOTT explained the amendment.

Senator LEATHERMAN argued contra to the adoption of the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander                 Boan                      Bryan
Cork                      Courtney                  Drummond
Giese                     Hayes                     Holland
Jackson                   Land                      Lander
Leatherman                Leventis                  Martin
Moore                     Ryberg                    Smith, J.V.
Stilwell                  Williams                  

Courson                   Elliott                   McConnell
McGill                    Mescher                   O'Dell
Passailaigue              Peeler                    Rankin
Reese                     Richter                   Rose
Russell                   Setzler                   Smith, G.
Waldrep                   Wilson                    

The amendment was laid on the table.

At 5:20 P.M., Senator MARTIN assumed the Chair.

Senator ROSE proposed the following Amendment No. 10 (3901R007.MTR), which was tabled:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION to read:

/SECTION _____. Chapter 1, Title 6 of the 1976 Code is amended by adding:

"Section 6-1-75.   In a reassessment year, the governing body of a political subdivision may not collect an increase in the millage it imposes for a tax year over the millage it imposed for the prior year in an amount greater than the consumer price index in effect on the date of reassessment, except by referendum. If the consumer price index allows a millage increase without a referendum and no additional millage is imposed for that tax year, then the millage that may be imposed for any succeeding tax year without a referendum may be increased by the millage rate increase allowed but not imposed for any prior tax year.

In a reassessment year, when the governing body of a political subdivision increases the millage rate it imposes in an amount greater than the consumer price index in effect on the date of reassessment, the amount of millage increase which exceeds the consumer price index may not be collected before the property is sold, but this amount may be carried over and imposed as a lien against the taxpayer's property and collected upon sale of the property. For the purposes of this section, 'consumer price index' means the consumer price index as certified by the State Budget and Control Board."/

Amend title to conform.

Senator ROSE explained the amendment.

Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator ROSE continued arguing in favor of the adoption of the amendment and Senator LEATHERMAN argued contra.

Senator LEATHERMAN moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Alexander                 Boan                      Bryan
Cork                      Courtney                  Glover
Hayes                     Holland                   Jackson
Land                      Lander                    Leatherman
Leventis                  Martin                    Matthews
Moore                     O'Dell                    Patterson
Rankin                    Ryberg                    Short
Smith, G.                 Smith, J.V.               Stilwell
Thomas                    Waldrep                   Williams

Courson                   Elliott                   Ford
Giese                     McConnell                 McGill
Mescher                   Passailaigue              Peeler
Reese                     Richter                   Rose
Russell                   Setzler                   Washington
Wilson                    

The amendment was laid on the table.

Senator RANKIN proposed the following Amendment No. 11 (JIC\6052HTC.95):

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

/SECTION   ___.   A.   Chapter 37, Title 12 of the 1976 Code is amended by adding:

Section 12-37-505.   This article may be cited as the Homestead Property Tax Deferral for the Elderly Act.

Section 12-37-510.   As used in this article:

(1)   'Gross household income' means all income, for all individuals residing within the household, from whatever source derived including, but not limited to, the following sources:

(a)   compensation for services including fees, commissions, and similar items;

(b)   gross income derived from business;

(c)   gains derived from dealings in property;

(d)   interest;

(e)   rents;

(f)   royalties;

(g)   dividends;

(h)   alimony and separate maintenance payments;

(i)   income from life insurance and endowment contracts;

(j)   annuities;

(k)   pensions;

(l)   income from discharge of indebtedness;

(m)   distributive share of partnership gross income;

(n)   income from an interest in an estate or trust; and

(o)   federal old-age, survivor, or disability benefits.

(2)   'Household' means an individual or group of individuals living together in a room or group of rooms as a housing unit.

(3)   'Tax collector' means the county treasurer or municipal officer authorized by law to receive property tax payments.

Section 12-37-515.   (A)   Any individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 may elect to defer payment of all or part of the ad valorem taxes levied on his homestead by filing an annual application for tax deferral with the tax collector before May first of the year for which the deferral is sought. If the homestead for which a deferral is requested has an assessed value for purposes of ad valorem taxation of two thousand dollars or more, the deferral may apply only to the taxes on that portion of the assessed value which is two thousand dollars or less.

(B)   It is the duty of each applicant for a deferral to demonstrate affirmatively his compliance with the requirements of this article.

Section 12-37-520.   (A)   As an alternative to the tax deferral authorized by Section 12-37-515, an individual who is entitled to claim a homestead exemption pursuant to Section 12-37-250 may elect to defer payment of all or any part of that portion of the ad valorem taxes levied on the individual's homestead which exceeds four percent of the individual's gross household income for the immediately preceding calendar year. An application for tax deferral under this section must be filed annually with the tax collector before May first of the year for which the deferral is sought. If an individual files for a tax deferral under this section, he may not file for a tax deferral under Section 12-37-515.

(B)   The amount of the assessed value of the homestead does not limit the tax deferral authorized by this section.

(C)   It is the duty of each applicant for a deferral under this section to demonstrate affirmatively the applicant's compliance with this section and other provisions of this article.

Section 12-37-522.   No tax deferral in any one year may be granted pursuant to Section 12-37-515 or Section 12-37-520:

(1)   if the total amount of deferred taxes and interest plus the total amount of all other unsatisfied liens on the homestead exceeds eighty-five percent of the fair market value of the homestead as shown on the county tax duplicate for the immediately preceding tax year;

(2)   if the applicant's gross household income for the immediately preceding calendar year exceeds twenty thousand dollars;

(3)   if the homestead for which the deferral is sought is subject to any lien, the terms of which are dictated by federal law, rule, or regulation prohibiting deferral of taxes; or

(4)   with respect to taxes levied to retire bonded indebtedness or for special assessments.

Section 12-37-525.   (A)   The application for deferral must be made upon a form prescribed by the Department of Revenue and Taxation and furnished by the tax collector. The application form must advise the applicant of the manner in which interest is computed. Each application form must contain an explanation of the conditions to be met for approval and the conditions under which deferred taxes and interest become due, payable, and delinquent. Each application form must clearly state that all deferrals pursuant to this article constitute a lien on the applicant's homestead.

(B)   A form of oath must be provided and administered to the individual seeking the deferral. The oath may be administered by the tax collector or any individual authorized by law to administer oaths.

(C)   (1)   The tax collector shall consider each annual application for homestead tax deferral within thirty days of the date the application is filed or as soon as practicable thereafter. If the tax collector finds that the applicant is entitled to the tax deferral, he shall approve the application and file the application in the permanent records. If the tax collector finds that the applicant is not entitled to the deferral, he shall send a notice of disapproval to the applicant giving his reasons for the disapproval within thirty days of the filing of the application either by personal delivery or by certified mail to the mailing address given by the applicant, and he shall make a return on the original notice of the manner in which the notice was served on the applicant and shall file the return among the permanent records of his office. The original notice of disapproval sent to the applicant must advise the applicant of his right to appeal the decision of the tax collector to the Administrative Law Judge Division and must inform the applicant of the procedure for filing an appeal.

(2)   An appeal of the decision of the tax collector to the Administrative Law Judge Division must be in the manner provided by law for appeals to the division.

(D)   Each application must contain a list and the current value of all outstanding liens on the applicant's homestead.

(E)   If proof of fire and extended coverage insurance has not been furnished with a prior application, each applicant shall furnish proof of this insurance in an amount which is in excess of the sum of all outstanding liens and deferred taxes and interest with a loss payable clause to the tax collector.

Section 12-37-530.   (A)   The amount of taxes deferred pursuant to this article accrues interest until paid at the rate of eight percent a year.

(B)   Interest on taxes deferred pursuant to this article in any year begins accruing on the date the taxes were due.

Section 12-37-535.   The taxes and interest deferred pursuant to this article constitute a prior lien and attach as of the date and in the same manner and must be collected as are other liens for taxes, as provided for under this title, but the deferred taxes and interest are due, payable, and delinquent as provided in this article. Notwithstanding any other provision of law, the lien established by this section continues on the property until the deferred taxes and interest are paid in full.

Section 12-37-540.   Each year, at the time the tax notices are mailed, the tax collector shall notify each property owner to whom a homestead tax deferral has been previously granted of the accumulated sum of deferred taxes and interest outstanding.

Section 12-37-545.   (A)   If there is a change in tax-deferred property so that the owner is no longer entitled to a homestead exemption for the property pursuant to Section 12-37-250, or if the owner fails to maintain the required fire and extended insurance coverage, the total amount of deferred taxes and interest for all previous years are due and payable either on the date on which the change occurs or on the date failure to maintain insurance occurs.

(B)   If there is a change in ownership of tax-deferred property, the total amount of deferred taxes and interest for all previous years is due and payable on the date the change in ownership occurs. However, when the change in ownership is to a surviving spouse and the spouse is eligible for a homestead exemption on the property pursuant to Section 12-37-250, the surviving spouse may continue the deferral of previously deferred taxes and interest pursuant to this article.

(C)   During any year in which the total amount of deferred taxes, interest, and all other unsatisfied liens on a homestead exceeds eighty-five percent of the fair market value of the homestead, the tax collector shall immediately notify the owner of the homestead that the portion of taxes and interest which exceeds eighty-five percent of the value of the homestead is due and payable within thirty days of receipt of the notice. Failure to pay the amount due shall cause the total amount of deferred taxes and interest also to become due and payable at the end of the thirty days.

(D)   Each year, upon notification, each owner of property on which taxes and interest have been deferred shall submit to the tax collector a list, and the current value, of all outstanding liens on the owner's homestead. Failure to respond to the notification within thirty days of its receipt shall cause the total amount of deferred taxes and interest to become due and payable at the end of the thirty days.

(E)   All deferred taxes which are made due and payable by this section are delinquent and subject to interest in accordance with Section 12-54-20 beginning one hundred twenty days following the date the deferred taxes become due and payable.

Section 12-37-550.   (A)   All or part of the deferred taxes and accrued interest may be paid at any time to the tax collector by:

(1)   the owner of the property or the spouse of the owner, or

(2)   the next of kin of the owner, heir of the owner, child of the owner, or any person having or claiming a legal or equitable interest in the property, provided that no objection is made by the owner within thirty days after the tax collector notifies the owner of the fact that the payment has been tendered. Any payment made under this item must be deposited in a special escrow account for the thirty-day period; and the tax collector may not make distribution of the amount while the funds are held in escrow.

(B)   Any partial payment made pursuant to this section must be applied first to accrued interest. By ordinance of the governing body of the county or municipality, a minimum amount of partial payment which may be accepted pursuant to this part may be established, but required minimum payment may not exceed twenty-five dollars.

Section 12-37-555.   When deferred taxes or interest is collected, the tax collector shall maintain a record of the payment, which record must contain a description of the property and the amount of taxes or interest collected for the property. The tax collector shall distribute payments received to the local taxing entities to whom the taxes are owed and the interest must be distributed as taxes are distributed.

Section 12-37-560.   If any holder of a deed to secure debt or any mortgagee elects to pay the taxes of an applicant who qualifies for and receives a tax deferral, the election does not give the holder of the deed or the mortgagee the right to foreclose.

Section 12-37-565.   Except with respect to requirements dictated by federal law, rule, or regulation, no mortgage, deed to secure debt, or other agreement may contain a provision, clause, or statement which prohibits the owner from claiming a real property tax deferral on his homestead. Any provision, clause, or statement executed after December 31, 1995, is void and unenforceable.

Section 12-37-570.   (A)   The following penalties are imposed on a person who wilfully files information required under this article which is incorrect:

(1)   The person shall pay the total amount of taxes and interest deferred, which is immediately due;

(2)   The person is disqualified from filing a homestead tax deferral application for the next three years; and

(3)   The person shall pay a penalty of twenty-five percent of the total amount of taxes and interest deferred.

(B)   A person against whom the penalties prescribed in this section have been imposed may appeal the penalties imposed to the Administrative Law Judge Division within thirty days after the penalties are imposed."

B.   This section takes effect January 1, 1996, and first applies with respect to property taxes due for the 1996 tax year./

Renumber sections to conform.

Amend title to conform.

Senator RANKIN was recognized.

Senator LAND asked unanimous consent to make a motion, with Senator RANKIN retaining the floor, that the Senate stand adjourned.

Debate was interrupted by adjournment, Senator RANKIN retaining the floor.

Having received a favorable report from the Fairfield County Delegation, the following appointments were confirmed in open session:

Reappointments, Fairfield County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

The Honorable William F. Pope, Route 1, Box 195-R, Winnsboro, S.C. 29180

Honorable Marion C. Smith, 308 Carlisle Avenue, Winnsboro, S.C. 29180

Honorable Thomas A. Jackson, Route 1, Box 1064, Great Falls, S.C. 29055

Honorable John J. Hood, Jr., Post Office Box 423, Winnsboro, S.C. 29180

Having received a favorable report from the Marlboro County Delegation, the following appointment was confirmed in open session:

Reappointment, Marlboro County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

Honorable Sidney McLaurin Rogers, Post Office Box 1313, Bennettsville, S.C. 29512

Having received a favorable report from the Lexington County Delegation, the following appointments were confirmed in open session:

Reappointments, Lexington County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Bruce Rutland, 650 Knox Abbott Drive, Cayce, S.C. 29033

Honorable Thomas H. Rawl, III, 304 South Lake Drive, Lexington, S.C. 29072

Honorable William Gregory Shockley, 2029 Highway 178, Swansea, S.C. 29160

Honorable George Marion Shealy, Post Office Box 253, Batesburg, S.C. 29006

The Honorable Llewellyn H. Hames, 672 Old Friars Road, Columbia, S.C. 29210

Honorable Shirley M. Sons, 521 Gibson Road, Lexington, S.C. 29072

Having received a favorable report from the Aiken County Delegation, the following appointments were confirmed in open session:

Initial Appointments, Aiken County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Ms. Carolyn P. Williams, 672 Kershaw Street, Aiken, S.C. 29801 VICE Albert Bradley

Mr. Carl S. Insley, Post Office Box 636, Langley, S.C. 29834 VICE Ralph Barber

Reappointments, Aiken County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Max A. Meek, 1680 Richland Avenue, West, Aiken, S.C. 29801

Honorable Rodger E. Edmonds, Post Office Box 6493, North Augusta, S.C. 29841-6493

Honorable Olin T. Corbett, Post Office Box 422, Salley, S.C. 29137-0422

Honorable Gibson O'Neal Fallaw, Jr., 394 Farmview Road, Batesburg, S.C. 29006

Honorable Julian M. Williams, 1047 Minter Avenue, Langley, S.C. 29834-7553

Honorable Joey Lee Addie, 14 Masonic Shopping Center, Graniteville, S.C. 29829

Reappointment, Aiken County Magistrate, with term to commence May 21, 1995, and to expire April 30, 1999:

Honorable Gail H. Shaw, Post Office Box 40, New Ellenton, S.C. 29809-0040

Having received a favorable report from the Richland County Delegation, the following appointments were confirmed in open session:

Reappointments, Richland County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Michael R. Davis, 233 King Charles Road, Columbia, S.C. 29209

Honorable William T. Smith, Jr., 6605 Arcadia Woods Road, Columbia, S.C. 29206

Having received a favorable report from the Newberry County Delegation, the following appointments were confirmed in open session:

Reappointments, Newberry County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

The Honorable Luke B. Hart, 313 Main Street, Whitmire, S.C. 29178

The Honorable Hammie J. Smith, Post Office Box 198, Peak, S.C. 29122-0198

Having received a favorable report from the Berkeley County Delegation, the following appointments were confirmed in open session:

Reappointments, Berkeley County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

The Honorable Oliver Levine, 1120 Calamus Pond Road, Summerville, S.C. 29483

Honorable Harry Lee Wright, 1619 Old Highway 6, Cross, S.C. 29436

Honorable Perry L. Murray, 108 Belknap Road, Goose Creek, S.C. 29445

The Honorable Edward L. Sessions, 1064 Dominion Drive, Hanahan, S.C. 29405

Honorable Thomas F. Mitchum, HC 69 Box 1570, Moncks Corner, S.C. 29461

Honorable Ervin Brown, 1133 Schurlknight Road, St. Stephen, S.C. 29479

Honorable McGregor T. Dennis, Post Office Box 40, Bonneau, S.C. 29431

Initial Appointments, Berkeley County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Ms. Elizabeth S. Harper, 141 Waterloo Drive, Moncks Corner, S.C. 29461 VICE Ira M. Grady, Jr.

The Honorable David G. Brown, 5928 Commonwealth Circle, Hanahan, S.C. 29406 VICE William H. Hatchett

Ms. Karen D. Hightower, 112 Milton Drive, Goose Creek, S.C. 29445 VICE Pamela J. Polzin

Ms. Ellen L. Karesh, 20 Montclair Avenue, Goose Creek, S.C. 29445 VICE Joey F. Murray

Having received a favorable report from the Anderson County Delegation, the following appointments were confirmed in open session:

Reappointments, Anderson County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Honorable Thomas H. Williams, 1807 Highway 243, Townville, S.C. 29689

Honorable James T. Busby, Jr., 1200 Good Hope Church Road, Starr, S.C. 29684

Honorable John C. Suber, 330 Hamilton Street, Williamston, S.C. 29697

Honorable Carl E. Anderson, 107 South Main Street, Anderson, S.C. 29622

Honorable John B. Ashley, Sr., Post Office Box 214, Honea Path, S.C. 29654

Honorable David L. Crenshaw, 804 Cherry Street, Pendleton, S.C. 29670

Honorable Robert G. Gilstrap, 108 Olivarri Drive, Anderson, S.C. 29621

Honorable William P. Steele, Jr., 100 South Main Street, Anderson, S.C. 29624

Honorable Sherry E. Mattison, Post Office Box 828, Belton, S.C. 29627

Honorable John M. McCoy, 601 Saluda Drive, Piedmont, S.C. 29673

The Honorable Clarence R. Gentry, 7626 Highway 81, Starr, S.C. 29684

Initial Appointments, Anderson County Magistrates, with terms to commence April 30, 1995, and to expire April 30, 1999:

Mr. Roger D. Scott, Post Office Box 6, Pelzer, S.C. 29669 VICE Joe T. Branyon (retired)

The Honorable Nancy Wilson Devine, 121 Wilson Road, Williamston, S.C. 29697 VICE Charles A. McDowell

At 6:42 P.M., on motion of Senator LAND, the Senate adjourned to meet tomorrow at 11:00 A.M.

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