1995 Permanent Senate Journal Printed Pages 3320-3330 - South Carolina Legislature Online

Journal of the Senate
of the First Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 10, 1995

Page Finder Index

Printed Page 3310, May 30 | Printed Page 3330, May 30

Printed Page 3320 . . . . . Tuesday, May 30, 1995

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.

Printed Page 3321 . . . . . Tuesday, May 30, 1995

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

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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

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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.

Printed Page 3324 . . . . . Tuesday, May 30, 1995

H. 3037--REPORT OF THE
COMMITTEE OF CONFERENCE ADOPTED

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:

H. 3037--Conference Report
The General Assembly, Columbia, S.C., May 29, 1995

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

Printed Page 3325 . . . . . Tuesday, May 30, 1995

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).

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(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--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED

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.

H. 3096--Free Conference Powers Granted
Free Conference Committee Appointed

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.

Printed Page 3327 . . . . . Tuesday, May 30, 1995

RECALLED, READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

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.

RECALLED

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.

INTRODUCTION OF BILLS AND RESOLUTIONS

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.

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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.

S. 879--Ordered to a Second and Third Reading

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.