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

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| Printed Page 3100, May 23 | Printed Page 3120, May 23 |
Printed Page 3110 . . . . . Thursday, May 23, 1996
On motion of Senator J. VERNE SMITH, the Senate nonconcurred in the House amendments and a message was sent to the House accordingly.

H. 3915--CONFERENCE COMMITTEE APPOINTED

Message from the House

Columbia, S.C., May 23, 1996

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:

H. 3915 -- Education and Public Works Committee: 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 MEMBERS ARE SELECTED; TO ADD SECTION 59-103-45 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL ESTABLISH PROCEDURES FOR THE

Printed Page 3111 . . . . . Thursday, May 23, 1996
TRANSFERABILITY OF UNDERGRADUATE COURSES BETWEEN TWO-YEAR AND FOUR-YEAR INSTITUTIONS, COORDINATE WITH THE STATE BOARD OF EDUCATION THE APPROVAL OF CERTAIN SECONDARY EDUCATION COURSES, AND REVIEW UNDERGRADUATE ADMISSION STANDARDS FOR IN-STATE AND OUT-OF-STATE STUDENTS; 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; 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; AND TO CREATE A JOINT LEGISLATIVE COMMITTEE TO STUDY THE GOVERNANCE, OPERATION, AND STRUCTURE OF HIGHER EDUCATION IN SOUTH CAROLINA.
asks for a Committee of Conference, and has appointed Reps. Felder, Fulmer and Seithel of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT appointed Senators J. VERNE SMITH, MOORE and FORD of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

H. 3915--REPORT OF THE

COMMITTEE OF CONFERENCE ADOPTED

H. 3915 -- Education and Public Works Committee: A BILL TO AMEND SECTION 59-103-10, CODE OF LAWS OF SOUTH

Printed Page 3112 . . . . . Thursday, May 23, 1996
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 MEMBERS ARE SELECTED; TO ADD SECTION 59-103-45 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL ESTABLISH PROCEDURES FOR THE TRANSFERABILITY OF UNDERGRADUATE COURSES BETWEEN TWO-YEAR AND FOUR-YEAR INSTITUTIONS, COORDINATE WITH THE STATE BOARD OF EDUCATION THE APPROVAL OF CERTAIN SECONDARY EDUCATION COURSES, AND REVIEW UNDERGRADUATE ADMISSION STANDARDS FOR IN-STATE AND OUT-OF-STATE STUDENTS; 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; 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; AND TO CREATE A JOINT LEGISLATIVE COMMITTEE TO STUDY THE GOVERNANCE, OPERATION, AND STRUCTURE OF HIGHER EDUCATION IN SOUTH CAROLINA.

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

Senator J. VERNE SMITH spoke on the report.

On motion of Senator J. VERNE SMITH, the Report of the Committee of Conference to H. 3915 was adopted as follows:

Printed Page 3113 . . . . . Thursday, May 23, 1996
H. 3915--Conference Report

The General Assembly, Columbia, S.C., May 23, 1996

The COMMITTEE OF CONFERENCE, to whom was referred:

H. 3915 -- Education and Public Works Committee: 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 MEMBERS ARE SELECTED; TO ADD SECTION 59-103-45 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL ESTABLISH PROCEDURES FOR THE TRANSFERABILITY OF UNDERGRADUATE COURSES BETWEEN TWO-YEAR AND FOUR-YEAR INSTITUTIONS, COORDINATE WITH THE STATE BOARD OF EDUCATION THE APPROVAL OF CERTAIN SECONDARY EDUCATION COURSES, AND REVIEW UNDERGRADUATE ADMISSION STANDARDS FOR IN-STATE AND OUT-OF-STATE STUDENTS; 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; 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; AND TO CREATE A JOINT LEGISLATIVE COMMITTEE TO STUDY THE GOVERNANCE, OPERATION, AND STRUCTURE OF HIGHER EDUCATION IN SOUTH CAROLINA.
Beg leave to report that they have duly and carefully considered the same and recommend:

Printed Page 3114 . . . . . Thursday, May 23, 1996
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. Chapter 7, Title 44 of the 1976 Code is amended by adding:

"Article 25

Medical University of South Carolina

Lease and Sale of Certain Assets

Section 44-7-3110. The General Assembly authorizes and grants to the Board of Trustees of the Medical University of South Carolina authority to enter into reasonable agreements to transfer the management and operations of the Medical University Hospital to one or more private operators, including authority to:

(A) Lease certain Medical University Hospital land, together with all easements, rights, privileges, and appurtenances appertaining thereto, and all of the buildings, structures, fixtures, and other improvements existing and situated on that land, all as described in Section 44-7-3120; and

(B) Sell furniture, fixtures, equipment, accounts receivable, and other incidental assets associated with or employed in the operation of the Medical University Hospital on the land.

Provided, however, that the following terms and conditions must be observed and included and accepted in the agreements:

(1) The term of the lease and any extensions may not exceed a total aggregate period of thirty years.

(2) The leased premises may be used only for the operation of hospitals and clinics, and for other uses reasonably related to hospitals, clinics, and healthcare, provided that those operations and uses are consistent with all Joint Commission on Accreditation and Healthcare Organizations standards.

(3) Any private operator or operators chosen by the Medical University of South Carolina's Board of Trustees to operate the Medical University Hospital shall not transfer, sell, lease, or assign control of the Medical University Hospital, or of the entity operating or controlling the Medical University Hospital or of any of its related real estate or other assets, to any other private operator without the prior express written approval of the Medical University of South Carolina Board of Trustees and without compliance with the same terms and conditions provided in this article. Prior to any such transfer, sale, lease, or assignment of control, the Medical University of South Carolina shall have the right of first refusal and be given sufficient time to consider and decide whether to exercise the right of first refusal.

Printed Page 3115 . . . . . Thursday, May 23, 1996
(4) Any private operator or operators chosen by the Medical University of South Carolina's Board of Trustees to operate the Medical University Hospital must provide indigent care in the same manner as is being provided by the Medical University of South Carolina through the operation of this Medical University Hospital and its clinical programs.

(5) The Medical University of South Carolina and the State of South Carolina must be protected from any tort liability arising from the private operation of the Medical University Hospital by the private operator, unless and except to the extent the tort liability is caused by or attributed to the Medical University of South Carolina or the State of South Carolina, or both. The agreement will require the operator of the Medical University Hospital to acquire and keep in effect sufficient insurance policies to provide a reasonable amount and type of coverage and naming the Medical University of South Carolina as an additional insured.

(6) The name and logo of the Medical University of South Carolina and its affiliates shall not be used by any private operator to market and promote health care services.

(7) The proceeds from this lease and from the sale of these assets must be used for the retirement of outstanding indebtedness incurred to finance Medical University Hospital facilities, and all other revenues and payments received from or in connection with this lease or sale must be dedicated solely for use of the Medical University of South Carolina's business and operations as the Board of Trustees of the Medical University of South Carolina may direct, subject to review by the appropriate bodies of state governments.

(8) All agreements, the manner in which all agreements are made and the implementation of all agreements must comply with all applicable laws.

(9) Access for any person or group to use the services of the Medical University Hospital and clinical services shall not be limited, restricted, denied, or allowed in a discriminatory manner that is prohibited by law; nor shall such access be denied based on lack of participation or membership in a particular health plan or network.

(10) The Medical University of South Carolina shall have access at all times to all records of all patients treated at the Medical University Hospital, and all patients shall have access at all times to their own records.

Provided, further, that the lease and sale may not be finalized until the Budget and Control Board is satisfied that the consideration paid by the private operator or operators for the agreements authorized by this article reflects a fair and reasonable value to the State of South Carolina, based

Printed Page 3116 . . . . . Thursday, May 23, 1996
upon either the net book value of the hospital, capitalization of income from operation of the hospital over a period of years, the net present value of future cash flow of the hospital, a direct comparison to a comparable transaction, or some other financially sound and general practiced method of business evaluation.

The Budget and Control Board is directed to cause the lease and purchase agreements regarding the Medical University Hospital to contain provisions requiring and insuring compliance with the terms and conditions stated above. To assist the board in performing this function, the Medical University of South Carolina is required to provide, at its expense, any information, studies, evaluations, agreements, reports, or other data requested by the Budget and Control Board, including any such items with regard to University Medical Associates or any of its employees, officers, and affiliates. The approval requirement for the transaction authorized in this act shall be governed by the provisions of Section 1-11-65 of the 1976 Code and compliance with the provisions of this act is exclusive and shall satisfy the approval requirements of any and all other statutory provisions requiring the review and/or approval of any agency, department, or division.

No lease or other agreement pursuant to this article shall be valid unless and until the provisions of this article have been complied with fully and the Budget and Control Board has certified that the provisions of this article have been complied with fully.

Section 44-7-3120. The legal description of the land and improvements thereon referenced in Section 44-7-3110(A) is as follows:

All that certain property and parcels of land in Charleston County together with improvements thereon lying on the north side of Albert B. Sabin Street, between Ashley Avenue and Jonathan Lucas Street consisting of the MUSC Teaching Hospital and the MUSC Children's Hospital but saving and excepting the Clinical Sciences Building and the Storm Eye Institute;

Together with a rectangular parcel located on the south side of Albert B. Sabin Street containing certain fuel oil tanks;

Together with the Psychiatric Institute located on the west side of President Street and the playground area located to the rear of such institute but saving and excepting the auditorium, the lobby area, and the University Services Building.

The above referenced properties are as shown on a survey prepared by Forsburg Engineering & Surveying, Inc., to be recorded and reference is made thereto for a description of the metes and bounds thereof.

Printed Page 3117 . . . . . Thursday, May 23, 1996
Section 44-7-3130. Notwithstanding any other provision of law to the contrary, University Medical Associates (UMA) is a public body as defined by Chapter 4, Title 30 (the Freedom of Information Act) for purposes of the act and the provisions of the act apply to records maintained by UMA."

SECTION 2. Upon approval of the proposed sale or lease of MUSC's facilities and assets to HCA, HCA shall take the steps necessary to create an employee grievance committee for the review of all employee disciplinary actions and terminations by HCA. The grievance procedure must provide that the final decision in any grievance involving a former MUSC employee rests with the board of directors of MUSC and that the final decision in grievances involving HCA employees rests with the official designated by HCA.

SECTION 3. Notwithstanding any other provision of law, the Budget and Control Board must consult the South Carolina Commission on Higher Education prior to granting authorization to effectuate the transaction provided for in this act.

SECTION 4. Notwithstanding any other provision of law to the contrary, upon approval of the proposed lease and sale of Medical University of South Carolina facilities and assets, no one who is currently an employee of MUSC or UMA may personally profit from the transaction by accepting compensation or other financial incentives from the purchasing and/or leasing company if that individual played a substantial role in the negotiation process. As used in this section "substantial role" means a role where one is providing direct advice to the members of a negotiating team or being a member of a negotiating team.

SECTION 5. No condition of any lease or agreement shall restrict MUSC employees to shared participation with one company's health care third party providers.

SECTION 6. At the time of default by Columbia HCA or end of the lease, MUSC shall not be required to purchase the Medical Center as a going concern but rather at the appraised value of the tangible assets owned by the lessee as personal property inventory.

SECTION 7. Any discontinuation or transfer of any inpatient clinical service offered at the Medical Center shall be with the prior written consent of the MUSC Board of Trustees.

SECTION 8. All agreements between University Medical Associates and any of its servants, agents, and subsidiaries and partners are subject to review and approval by the Board of Trustees of the Medical University of South Carolina and the terms of any such agreements shall not conflict with the terms and conditions of the lease authorized by this section.

Printed Page 3118 . . . . . Thursday, May 23, 1996
SECTION 9. Notwithstanding any other provision of law to the contrary, including any provision of the Annual General Appropriation Act for FY 1996-97, members of the General Assembly must pay any co-payment or deductible as may be applicable for receiving services at a hospital facility in this State whether or not their services are provided by the MUSC hospital or its successor in interest.

SECTION 10. Notwithstanding any other provision of law to the contrary, upon approval of the proposed sale or lease of MUSC's facilities and assets, MUSC must maintain the current level of services currently offered to indigent patients at Charleston Memorial Hospital unless the MUSC Board of Trustees approves otherwise.

SECTION 11. Notwithstanding any other provision of law to the contrary, any financial obligation under the agreements entered into by a subsidiary corporation must be unconditionally guaranteed by the ultimate parent corporation of the purchaser/tenant.

SECTION 12. This act takes effect upon approval by the Governor.

Amend title to conform.

/s/J. Verne Smith .......... /s/John G. Felder
/s/Thomas L. Moore .......... /s/Ronald C. Fulmer
/s/Robert Ford .......... Lynn Seithel

On Part of the Senate. .......... On Part of the House.

, and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., May 23, 1996

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:

H. 3915 -- Education and Public Works Committee: 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 MEMBERS ARE SELECTED; TO ADD SECTION 59-103-45 SO AS TO PROVIDE THAT THE COMMISSION ON HIGHER EDUCATION SHALL ESTABLISH PROCEDURES FOR THE TRANSFERABILITY OF UNDERGRADUATE COURSES BETWEEN TWO-YEAR AND FOUR-YEAR INSTITUTIONS,

Printed Page 3119 . . . . . Thursday, May 23, 1996
COORDINATE WITH THE STATE BOARD OF EDUCATION THE APPROVAL OF CERTAIN SECONDARY EDUCATION COURSES, AND REVIEW UNDERGRADUATE ADMISSION STANDARDS FOR IN-STATE AND OUT-OF-STATE STUDENTS; 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; 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; AND TO CREATE A JOINT LEGISLATIVE COMMITTEE TO STUDY THE GOVERNANCE, OPERATION, AND STRUCTURE OF HIGHER EDUCATION IN SOUTH CAROLINA.
Very respectfully,
Speaker of the House

H. 3915--Enrolled for Ratification

The Report of the Committee of Conference having been adopted by both Houses, ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

A message was sent to the House accordingly.

THE SENATE PROCEEDED TO THE MOTION PERIOD.

MOTION FAILED

Senator MOORE moved to dispense with the Motion Period.

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