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Amend title to conform.

Senator MARTIN explained the amendment.

Senator BRYAN argued contra to the adoption of the amendment.

Senator BRYAN moved that the amendment be laid on the table.

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

Bryan             Courtney*        Drummond

Elliott           Ford             Giese

Glover            Hayes            Holland

Jackson           Land             Matthews

McGill            Mescher          Patterson

Rankin            Saleeby          Short

Washington        Williams

Alexander         Cork             Gregory

Lander            Leventis         Martin

McConnell         O'Dell           Passailaigue

Peeler            Reese            Rose

Russell           Setzler          Smith, G.

Smith, J.V.       Stilwell         Wilson

*This Senator was not present in the Chamber at the time the vote was taken and the vote was recorded by leave of the Senate, with unanimous consent.

Senator SALEEBY proposed the following Amendment No. 2 (SALEEBY\MLP\0006), which was adopted:

Amend the bill, as and if amended, by adding the following SECTIONS:

/SECTION _____. The title of Section 38-77-540 of the 1976 Code is amended to read:

"Duties of ceding insurer Facility rate plans."

/SECTION ______. Section 38-77-540 of the 1976 Code is amended to read:

"Section 38-77-540. The ceding insurer shall transfer or credit to the Facility on any policy of automobile insurance reinsured by the Facility the pure loss component of its rate or premium charge together with the profit and contingency component of the rate or premium charge as determined under its rating plan or system as filed with the Department. The ceding insurer shall retain as and for its ceding commission the allocated loss adjustment expense component as well as the underwriting and administrative expense components of the rate or premium charge under ceding insurer's rating plan or system as filed with the Department. However, no ceding insurer may include in the agents' commissions component of its underwriting expenses any amount greater than it has actually paid its agent as commission on the reinsured risk. The facility shall accept cessions on a policy of private passenger automobile insurance at the option of an insurer but only at the rate or premium charge as determined under the rating plans established by the governing board and approved by the director or his designee, subject, however, to Section 38- 77-950 regarding reasonable utilization of the facility by the company. The rate plans for the facility are subject to the director's or his designee's approval which may be granted only if the plan is consistent with and provides for the following:

(A) The rate or premium charge for drivers of private passenger automobiles shall be the state uniform rate as defined in this chapter.

(B) Beginning on January 1, 1997, the rate or premium charge for private passenger automobile physical damage coverages shall be the facility physical damage rate as defined in this chapter.

(C) The rate plans of the facility shall use the applicable risk and territorial classification plan promulgated by the director or his designee including merit rating plan surcharges and discounts as provided for in

)D) The ceding insurer shall transfer or credit to the facility on any policy of automobile insurance reinsured by the facility the pure loss component of the applicable uniform rate together with the profit and contingency component of such rate. The ceding insurer shall retain as and for its ceding commission its allocated loss adjustment expense component as well as its underwriting and administrative expense components of the applicable uniform rate as specified in the plan of operation of the South Carolina Reinsurance Facility. However, no ceding insurer may include in the agents' commissions component of its underwriting expenses any amount greater than it has actually paid its agent as commission on the reinsured risk.

(E) The governing board shall assign a specific location to each producer designated. The governing board shall determine producers whom the director or his designee the locations assigned by him to those producers whom the director or his designee has designated. Except through the acquisition of an exiting designated agency as permitted in paragraph (H) of this section, designated producers may not open or maintain any other locations without the written authorization of the governing board; provided, however, that an applicant maintaining multiple offices on June 4, 1987, is entitled to maintain two locations as a designated agent which he owned and operated at that time and through which premiums in at least the amount of seventy-five thousand dollars were written. The governing board shall terminate the designation, and the director or his designee shall revoke all agent's licenses of any producer who does not comply with this requirement upon demand by the governing board. Upon termination, the producer's expirations on designated business become the property of the facility.

(F) The designation of a producer by the director or his designee of the governing board is transferable to the reinsurance facility for purposes of liquidation, or a spouse, child, parent, brother, sister, employee, or partner of five years, the producer upon the designated producer's retirement, incapacity, or death. The duties of a designated producer may

(G) A designated producer may have any direct or indirect connection or contract with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State. Provided that the combined annual amount of net written premiums for private passenger automobile liability insurance coverages in all of the producers voluntary market outlets shall not exceed sixty-five percent of the designated producers total annual amount of net written premiums for private passenger automobile liability insurance coverages. In the event the calculated percentage exceeds sixty-five percent in eighteen months after notification during which time an appropriate reduction in voluntary market writings has not been accomplished, the governing board shall terminate the designation of the producer.

Amend sections to conform.

Amend title to conform.

Senator SALEEBY explained the amendment.

Senator SALEEBY moved that the amendment be adopted.

The amendment was adopted.

The question then was the third reading of the Bill.

Having voted on the prevailing side, Senator GIESE moved to reconsider the vote whereby Amendment No. 1 was laid on the table.

A roll call vote was ordered.

Senator SALEEBY moved to table the motion to reconsider.

Senator McCONNELL raised a Point of Order that the motion to table was out of order inasmuch as a roll call vote had been ordered.

The PRESIDENT sustained the Point of Order.

The question then was the motion to reconsider.

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

Alexander         Cork             Giese

Gregory           Lander           Leventis

Martin            McConnell        Passailaigue

Peeler            Rose             Russell

Setzler           Smith, J.V.      Stilwell

Wilson

Bryan             Courtney         Drummond

Elliott           Ford             Glover

Hayes             Holland          Jackson

Land              Matthews         McGill

Mescher           O'Dell           Patterson

Rankin            Reese            Saleeby

Short             Smith, G.        Washington

Williams

The Senate refused to reconsider the vote whereby Amendment No. 1 was laid on the table.

Senator LEVENTIS spoke on the Bill.

The Bill was read the third time, passed and ordered sent to the House of Representatives.

Senator PASSAILAIGUE desired to be recorded as voting against the third reading of S. 628.

I did not vote on S. 628 because there could be a very remote conflict of interest. I am a principal in a commercial insurance agency. The proposed legislation could technically allow for an expansion of the number of insurance carriers offering to write automobile insurance in the Palmetto State, including some of the carriers my agency represents.

I vote "no" on this Bill because it is not in the interests of the citizens of South Carolina. It requires all the people of South Carolina to buy insurance if they want to drive. But it also allows the companies that sell insurance to subjectively determine how much they will charge for insurance. The current law requires that objective standards be defined by insurers if they want to charge higher rates.

Nothing in this Bill will require the total premiums and recoupment paid in the State to go down. Nothing in this Bill will diminish the claims made by policy holders.

It is postulated that more companies will come to South Carolina. I do not believe they will come to South Carolina for lower rates or less total premiums.

The final form of this Bill was agreed to by representatives of the insurance industry without the presence of the consumer advocate or the insurance commissioner. This is wrong. Our laws should be balanced with input from all parties who are involved or affected. This will be remembered primarily because the industry was able to exclude the public and retain a law requiring and compelling people to buy their products.

THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

H. 3666 -- Education and Public Works Committee: A BILL TO AMEND TITLE 4, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 37 SO AS TO AUTHORIZE COUNTIES TO ESTABLISH OPTIONAL METHODS FOR THE FINANCING OF TRANSPORTATION FACILITIES INCLUDING THE ACQUISITION, CONSTRUCTION, EQUIPMENT, AND OPERATION OF HIGHWAYS, ROADS, STREETS, BRIDGES, AND OTHER TRANSPORTATION-RELATED PROJECTS EITHER ALONE, IN PARTNERSHIP WITH THE SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION, OR JOINTLY-OPERATED PROJECTS OF THE COUNTY AND OTHER GOVERNMENTAL ENTITIES, AND AMEND SECTION 57-5-1330, RELATING TO THE POWERS OF THE DEPARTMENT OF TRANSPORTATION, SO AS TO PROVIDE THAT THE DEPARTMENT MAY NOT DESIGNATE AS A TURNPIKE FACILITY ANY HIGHWAY, ROAD, BRIDGE, OR OTHER TRANSPORTATION FACILITY FUNDED IN WHOLE OR IN PART

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

Senator RANKIN spoke on the Bill.

At 2:00 P.M., Senator ROSE requested a leave of absence for the balance of the day.

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

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

Alexander         Bryan            Cork

Courtney          Drummond         Elliott

Ford              Giese            Glover

Gregory           Hayes            Jackson

Land              Lander           Martin

Matthews          McConnell        McGill

Mescher           O'Dell           Passailaigue

Patterson         Peeler           Rankin

Reese             Russell          Ryberg

Saleeby           Setzler          Short

Smith, G.         Stilwell         Waldrep

Washington        Williams         Wilson

A quorum being present, the Senate resumed.

Senator LEATHERMAN recorded his presence subsequent to the Call of the Senate.

Senator RANKIN continued arguing in favor of second reading of the Bill.

Senator MATTHEWS asked unanimous consent to take up for immediate consideration Amendment No. 1A.

There was no objection.

Senator MATTHEWS proposed the following Amendment No. 1A (3666R019.JWM), which was adopted:

Amend the bill, as and if amended, SECTION 2, page 3, by adding after line 20 a new Section to read:

/Section 4-37-25. All expenditures made by an authority pursuant to the powers granted in Section 4-37-20 shall be in compliance with the provisions of Chapter 35 of Title 11 and the ensuing regulations that are applicable to the Department of Transportation and Section 12-27-1320./

Amend title to conform.

The amendment was adopted.

Senators ELLIOTT and LEATHERMAN argued in favor of the second reading of the Bill and Senator PASSAILAIGUE argued contra.

Senator LAND argued in favor of the second reading of the Bill.

Senator McCONNELL proposed the following Amendment No. 2 (3666R005.GFM), which was adopted:

Amend the bill, as and if amended, page 11, after line 42 and before the ("), by adding the following:

/Section 4-37-40. (A) In a county in which an ordinance is received by the county election commission pursuant to Section 4-37-30(A), if the county has previously imposed a local option sales and use tax pursuant to Chapter 10 of Title 4, the county election commission shall conduct a referendum at the same time as the referendum provided in Section 4-37-30(A) on the question of whether the local option sales and use tax imposed under Chapter 10 of Title 4 shall continue to be imposed. The question must read substantially as follows:

`Must a one percent sales and use tax continue to be levied in County for the purpose of allowing a credit against a taxpayer's county and municipal ad valorem tax liability and for the purpose of funding county and municipal operations in the County area?

(C) The provisions of this section are independent of the referendum provided for in Chapter 10 of Title 4.

(D) Two weeks before the referendum the county council and the municipal councils in the county area shall publish in a newspaper of general circulation within the jurisdiction the credit against property taxes in the most recent fiscal year. The notice must show the credit on the following classes of property:

(1) a primary residence;

(2) personal property including, but not limited to, an automobile;

(3) a commercial facility;

(4) an industrial facility.

(E) Except as otherwise provided herein, the provisions applicable to conducting and certifying the referendum provided in Section 4-37-30(A) shall also apply to the referendum provided in this section. /

Amend title to conform.

Sen. McCONNELL explained the amendment.

The amendment was adopted.

The question then was the second reading of the Bill.

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

Alexander         Bryan            Courtney

Drummond          Elliott          Glover

Hayes             Holland          Jackson

Land              Lander           Leatherman



Printed Page 2139 . . . . . Thursday, April 27,
1995

Martin            Matthews         McGill

O'Dell            Patterson        Peeler

Rankin            Russell          Saleeby

Setzler           Short            Smith, G.

Stilwell          Waldrep          Washington

Wilson

Cork              Ford             McConnell

Mescher           Passailaigue     Reese

Ryberg

The Bill was read the second time, passed and ordered to a third reading with notice of general amendments.

THE SENATE PROCEEDED TO THE MOTION PERIOD.

H. 3606 -- Rep. Richardson: A BILL TO AMEND SECTION 27-32-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF VACATION TIME SHARING PLAN, SO AS TO REVISE THE DEFINITION OF VACATION TIME SHARING OWNERSHIP PLAN TO, AMONG OTHER THINGS, PROVIDE THAT SUCH A PLAN IS AN INTEREST IN SUCH PROPERTY, TO ALLOW SUCH A PLAN TO BE CREATED IN A CONDOMINIUM ESTABLISHED FOR A TERM OF YEARS IN LEASEHOLD INTEREST OF MORE THAN THIRTY YEARS, AND PROVIDE THAT ALL SUCH INTERESTS ARE RECOGNIZED AS INTERESTS IN REAL PROPERTY, AND TO REVISE THE DEFINITION OF VACATION TIME SHARING LEASE PLAN SO AS TO PROVIDE THAT THESE LEASES DO NOT CONVEY AN INTEREST IN REAL PROPERTY.

On motion of Senator COURTNEY, the Bill was placed in the status of Adjourned Debate.

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