Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 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, the Spirit of the Lord spoke to Jacob at Bethel in Genesis, Chapter 28 (v.15):

"Know that I am with you and will keep

you wherever you go, and will bring you

back to this land; for I will not leave

you until I have done what I have promised

you. Then Jacob woke from his sleep and

said, 'Surely the Lord is in this place--

and I did not know it!'"
Let us pray.

O Lord, You are the God of Abraham, Isaac and Jacob. You have led us all through labrynthine ways and through the arches of the years.

We lay our record of stewardship before Your bar of justice and mercy.

Accept, O Lord, with mercy the labors of all who have served in any capacity in these hallowed chambers ... in high or humble tasks.

Guide the executive and judicial branches of our government that the legislative decisions and programs approved here may find a worthy way into the lifestream of our State.

Hear our benediction:

"Long may our land be bright, with freedom's holy light;

Protect us by Thy might, Great God, our King."

Amen.

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

On motion of Senator MOORE, with unanimous consent, Senators McCONNELL, PASSAILAIGUE and CORK were granted leave to attend a conference committee meeting and be counted in any quorum calls.

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

Alexander                 Anderson                  Bryan
Cork                      Courson                   Courtney
Drummond                  Elliott                   Fair
Giese                     Hayes                     Holland
Hutto                     Jackson                   Land
Lander                    Leatherman                Leventis
Martin                    Matthews                  McConnell
McGill                    Mescher                   Moore
O'Dell                    Passailaigue              Peeler
Rankin                    Ravenel                   Reese
Rose                      Ryberg                    Saleeby
Setzler                   Smith, J. Verne           Thomas
Waldrep                   Washington                Williams
Wilson

Senators SHORT, GREGORY, FORD, PATTERSON, RUSSELL and GLOVER recorded their presence subsequent to the Call of the Senate.

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

June 3, 1997
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 Appointment, Chesterfield County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

The Honorable Gary Rickey Faulkenberry, Post Office Box 133, Pageland, S.C. 29728 VICE David H. Freeman (retired)

Reappointment, Chesterfield County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

Honorable Elizabeth F. Gulledge, Post Office Box 131, Ruby, S.C. 29741

Initial Appointment, Beaufort County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

The Honorable Joseph N. Kline, 42 Kline Circle, Seabrook, S.C. 29940 VICE Deloris L. Washington (resigned)

Initial Appointment, Fairfield County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

The Honorable T. Leon Thompson, Route 1, Box 37-A, Jenkinsville, S.C. 29065 VICE Ernestine M. Rabb (vacated)

Initial Appointment, Lee County Board of Voter Registration, with term to commence March 15, 1996, and to expire March 15, 1998:

At-Large:

Mr. Henry Wilson, Post Office Box 523, Elliott, S.C. 29046 VICE Betty Addison

Senator SETZLER introduced Dr. Robert Cutting of the Savannah River Plant, Doctor of the Day.

At 4:30 P.M., Senator HAYES requested a leave of absence for Tuesday, June 17, 1997, to attend National Guard Annual Training.

Senator LEVENTIS rose to a Point of Personal Privilege.

Some of you probably heard that I had a very unpleasant encounter with the Secretary of Commerce yesterday upon leaving the Chamber. I feel obligated to make comments to you. I must tell you at the outset I am not going to answer questions. I don't intend to meet with the press. I intend to tell you exactly what happened and leave to your judgement what the decorum of this Senate will insist upon... I would not discuss it if this were a private or personal attack upon me. It was not. It was a public attack that many witnessed and heard, and I must relate to you exactly what happened so there'll be no doubt in your mind and for your consideration. I have to speak to you because I was verbally accosted and assaulted for acting in my official capacity as a member of this Senate and of this legislature. I realize that this office does not belong to me. These offices do not belong to us. They are public trusts that we hold.

Please let me tell you exactly what happened. You recall yesterday the point where a unanimous consent request was made to discuss H. 3695, The Economic Development Act. I objected, not because of any personal feelings I have for anyone, but because I disagreed simply because I don't feel the bill is right for this State at this time. I really don't intend to talk about the future of the bill or issues. When asked by a member if I would meet with the Secretary of Commerce and the Deputy Director of the Budget and Control Board regarding this bill, I told them I could not at that time. I would not leave this Chamber at this time. After adjournment, when I left and as I was turning the corner, to go toward the steps, I was verbally assaulted by the Secretary. He raised his voice and insisted that I had an obligation to come see him when he sent in a note. He indicated that I had to come out and see him. He raised his voice and took the Lord's name in vain, as he cursed me; he leaned his shoulder into me to try to see if he could move me. You know I'm not an aggressive fellow, but I knew that it was inappropriate behavior. Although I was very, very, upset, I hope and I pray, and I truly believe that I did not do anything during this encounter to embarrass this Senate.

I believe constitutional officers and appointees should be held to a higher standard. We and they take an oath to the people of this State. The Secretary's behavior was unethical to the notion of what should characterize the Department of Commerce and all the other agencies who work on behalf of the citizens of this State. Polarity does not build or develop this State. This behavior reflects not only on the Secretary, but those who appointed him and others who serve. The Secretary's behavior was inappropriate. It was nothing that the Governor would have approved of. It demeans the office that he holds and also those who appointed him. Many people saw and heard his comments. We should all conduct business as public officials, not on a harshly personal level. The Secretary was very harsh and very personal. Threats were made against me and the people I represent and those I associate with.

I believe, very simply, that the Secretary should disavow these threats against me and those whom I represent and those with whom I associate. The remarks were very personal and I believe that the Secretary should apologize personally, not to me, but to this Senate and to the Governor.

S. 381 -- Senator Holland: A BILL TO AMEND SECTION 7-11-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO STATEMENTS OF INTENTION OF CANDIDACY, SO AS TO PROVIDE THAT IF A FILING DATE FALLS ON A SUNDAY OR LEGAL HOLIDAY, THESE DATES SHALL BEGIN OR END, AS APPROPRIATE, ON THE NEXT DAY WHICH IS NOT A SUNDAY OR LEGAL HOLIDAY; AND TO AMEND SECTION 7-11-210, RELATING TO THE DEADLINE FOR FILING A NOTICE OF CANDIDACY AND PLEDGE, SO AS TO PROVIDE THAT IF MARCH THIRTIETH FALLS ON A SUNDAY OR LEGAL HOLIDAY, THE NOTICE AND PLEDGE MUST BE FILED ON THE NEXT DAY WHICH IS NOT A SUNDAY OR LEGAL HOLIDAY.

The House returned the Bill with amendments.

On motion of Senator HOLLAND, with unanimous consent, the Bill was recommitted to the Committee on Judiciary.

S. 802 -- Senators McConnell and Ford: A CONCURRENT RESOLUTION TO URGE THE MEDICAL UNIVERSITY OF SOUTH CAROLINA TO DETERMINE WHETHER CONTRACTS CONTEMPLATED BY THE UNIVERSITY AND COLUMBIA HCA AMOUNT TO A JOINT VENTURE, TO AUTHENTICATE THE FAIR MARKET VALUE OF ASSETS AND REEVALUATE THE MORGAN STANLEY EVALUATION, TO NOTIFY THE GENERAL ASSEMBLY AS TO ALL COSTS ASSOCIATED WITH THE PROJECT, AND TO REEXAMINE WHETHER COLUMBIA HCA IS THE APPROPRIATE PARTNER FOR THE MEDICAL UNIVERSITY OF SOUTH CAROLINA.

Senator ROSE asked unanimous consent to be added as a co-sponsor to the Concurrent Resolution.

There was no objection.

The following were introduced:

S. 812 -- Senators Peeler and Setzler: A CONCURRENT RESOLUTION TO CONGRATULATE RUTH NAGY OF CAYCE, SOUTH CAROLINA, UPON BEING SELECTED TO RECEIVE THE SOUTH CAROLINA TAX COUNCIL 1997 SERVICE AWARD AND TO COMMEND HER FOR HER CONTRIBUTION TO THE ADVANCEMENT OF THE TAX PROFESSION AND FOR HER SERVICE TO THE COMMUNITY AND THE SOUTH CAROLINA TAX COUNCIL.

On motion of Senator PEELER, the Concurrent Resolution was taken up for immediate consideration.

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

S. 823 -- Senators Lander and Peeler: A BILL TO AMEND SECTION 47-20-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SETBACK LIMITS FOR ANIMAL FEEDING OPERATIONS, SO AS TO MAKE THE SETBACK LIMITS AND OTHER RESTRICTIONS APPLICABLE ONLY TO OPERATIONS WITH A CAPACITY OF MORE THAN 420,000 POUNDS OF NORMAL PRODUCTION ANIMAL LIVE WEIGHT AT ANY ONE TIME; AND TO AMEND ACT 460 OF 1996, SO AS TO MAKE TECHNICAL CHANGES.

Read the first time and referred to the Committee on Agriculture and Natural Resources.

S. 824 -- Senator Fair: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-101-400 SO AS TO ENACT THE ANTI-DISCRIMINATION RELIGION ACT OF 1997, TO ALLOW A PUBLIC EMPLOYEE OF AN INSTITUTION OF HIGHER LEARNING TO EXERCISE HIS FREE SPEECH RIGHTS WITHOUT FEAR OF RECRIMINATION.

Read the first time and referred to the Committee on Education.

S. 825 -- Senators Land, Alexander, Anderson, Bryan, Cork, Courson, Courtney, Elliott, Fair, Ford, Giese, Glover, Gregory, Hayes, Holland, Hutto, Jackson, Land, Leatherman, Leventis, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Passailaigue, Patterson, Peeler, Rankin, Ravenel, Reese, Rose, Russell, Ryberg, Saleeby, Setzler, Short, J. Verne Smith, Thomas, Waldrep, Washington, Williams and Wilson: A SENATE RESOLUTION TO CONGRATULATE PRESIDENT PRO TEMPORE JOHN W. DRUMMOND AND MRS. HOLLY DRUMMOND ON THE SPECIAL OCCASION OF THEIR FIFTIETH WEDDING ANNIVERSARY AND EXTEND THEM BEST WISHES FOR MANY MORE YEARS OF HAPPINESS TOGETHER.

The Senate Resolution was adopted.

S. 826 -- Senator Moore: A SENATE RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SENATE TO THE MIDLAND VALLEY HIGH SCHOOL "MUSTANGS" BASEBALL TEAM OF AIKEN COUNTY ON WINNING THE 1997 AAA STATE CHAMPIONSHIP.

The Senate Resolution was adopted.

S. 827 -- Senator Moore: A SENATE RESOLUTION TO CONGRATULATE THE HONORABLE JULIAN M. WILLIAMS, NIGHT MAGISTRATE FOR AIKEN COUNTY, ON THE OCCASION OF HIS RETIREMENT.

The Senate Resolution was adopted.

S. 828 -- Senators Courtney and Waldrep: A SENATE RESOLUTION TO HONOR WENDY MICHELLE BUTLER WALTON AND THANK HER FOR SIX YEARS OF DEDICATED SERVICE TO THE SOUTH CAROLINA SENATE AND WISH HER WELL ON THE OCCASION OF HER MOVE TO FLORIDA.

The Senate Resolution was adopted.

H. 4293 -- Reps. Young and Woodrum: A CONCURRENT RESOLUTION TO EXTEND THE CONDOLENCES OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE FRIENDS AND FAMILY OF OVALYN KELLEY LATHAN OF SUMTER COUNTY WHO DIED MONDAY, JUNE 2, 1997.

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

H. 4294 -- Rep. G. Brown: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING REVEREND WILLIE LAWSON OF SUMTER COUNTY FOR HIS OUTSTANDING CONTRIBUTIONS AND SERVICE TO HIS COMMUNITY.

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

H. 4304 -- Rep. Whipper: A CONCURRENT RESOLUTION HONORING AND RECOGNIZING THE THIRTY-SEVEN YEAR LEGACY OF DR. WILLIS C. HAM, COMMISSIONER OF THE SOUTH CAROLINA HUMAN AFFAIRS COMMISSION AND A SPORTS FIGURE, WHO HAS MADE THE TRANSITION TO A STATE LEADER BASED ON HIS ABILITY TO COMMUNICATE, MOTIVATE, AND LEAD.

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

H. 4305 -- Rep. Bowers: A CONCURRENT RESOLUTION CONGRATULATING THE TOWN OF BRUNSON IN HAMPTON COUNTY ON THE OCCASION OF ITS ONE HUNDRED TWENTY-FIFTH ANNIVERSARY.

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

H. 4306 -- Reps. Spearman, Clyburn and Parks: A CONCURRENT RESOLUTION CONGRATULATING MS. GAYLE P. WERTS ON HER RETIREMENT AS TREASURER OF SALUDA COUNTY.

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

H. 4307 -- Reps. Koon, Webb, Harvin, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Byrd, Campsen, Canty, Carnell, Cato, Cave, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Edge, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, A. Harris, Harrison, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Hodges, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, Kinon, Kirsh, Klauber, Knotts, Lanford, Law, Leach, Lee, Limbaugh, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Maddox, Martin, Mason, McCraw, McKay, McLeod, McMahand, McMaster, Meacham, Miller, Moody-Lawrence, Mullen, Neal, Neilson, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Spearman, Stille, Stoddard, Stuart, Townsend, Tripp, Trotter, Vaughn, Walker, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum, Young and Young-Brickell: A CONCURRENT RESOLUTION CONGRATULATING DR. JAMES A. TIMMERMAN, JR., UPON HIS RETIREMENT AS DIRECTOR OF THE SOUTH CAROLINA DEPARTMENT OF NATURAL RESOURCES.

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

H. 4309 -- Rep. Clyburn: A CONCURRENT RESOLUTION CONGRATULATING THE GIRLS VARSITY BASKETBALL TEAM OF WARDLAW ACADEMY OF EDGEFIELD COUNTY ON WINNING THE SCISAA CLASS A STATE CHAMPIONSHIP FOR 1997.

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

H. 4310 -- Rep. Clyburn: A CONCURRENT RESOLUTION CONGRATULATING THE SOFTBALL TEAM OF WARDLAW ACADEMY OF EDGEFIELD COUNTY ON WINNING THE SCISAA CLASS A STATE CHAMPIONSHIP FOR 1997.

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

H. 4311 -- Rep. Clyburn: A CONCURRENT RESOLUTION CONGRATULATING THE PATRIOTS BASEBALL TEAM OF WARDLAW ACADEMY OF EDGEFIELD COUNTY ON WINNING THE SCISAA CLASS A STATE CHAMPIONSHIP FOR 1997.

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

H. 4312 -- Rep. Clyburn: A CONCURRENT RESOLUTION CONGRATULATING MS. MARGIE PLUNKETT ON HER RETIREMENT AS TREASURER OF AIKEN COUNTY.

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

H. 4313 -- Rep. G. Brown: A CONCURRENT RESOLUTION EXPRESSING SORROW AT THE DEATH OF MR. WALTER NELSON OF LYNCHBURG AND EXTENDING SYMPATHY TO HIS FAMILY AND FRIENDS.

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

H. 4314 -- Reps. Stuart, Bauer, Gamble, Knotts, Koon, Riser and Spearman: A CONCURRENT RESOLUTION CONGRATULATING MS. BETTY BAIRD OF LEXINGTON COUNTY UPON HER RETIREMENT FROM CLEMSON EXTENSION SERVICE.

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

H. 4326 -- Rep. McLeod: A CONCURRENT RESOLUTION CONGRATULATING SUPERINTENDENT THOMAS EDWARD CALHOUN "TEC" DOWLING FOR HIS DISTINGUISHED LEADERSHIP RECORD AND ACHIEVEMENTS ON BEHALF OF THE CHILDREN OF THE SCHOOL DISTRICT OF NEWBERRY COUNTY.

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

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

The following Bills and Joint Resolutions 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. 4122 -- Reps. Battle and M. Hines: A BILL TO AMEND ACT 608 OF 1986, RELATING TO THE CREATION OF THE REGISTRATION AND ELECTIONS COMMISSION FOR MARION COUNTY, SO AS TO PROVIDE FOR NINE COMMISSION MEMBERS INSTEAD OF SEVEN.

(By prior motion of Senator ELLIOTT)

H. 3059 -- Reps. Inabinett, Altman, Lloyd and Moody-Lawrence: A BILL TO AMEND SECTION 12-43-220, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CLASSIFICATION OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCLUDE SEAFOOD PROCESSING FACILITIES WITHIN THE CLASSIFICATION OF AGRICULTURAL REAL PROPERTY.

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

There was no objection.

H. 4036 -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO DAMS AND RESERVOIRS SAFETY ACT, DESIGNATED AS REGULATION DOCUMENT NUMBER 2160, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 3594 -- Reps. Chellis, Altman, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Boan, Bowers, H. Brown, J. Brown, T. Brown, Campsen, Cato, Cave, Cobb-Hunter, Cooper, Dantzler, Edge, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, Harrison, Haskins, Hawkins, Hinson, Howard, Inabinett, Jordan, Kennedy, Kinon, Kirsh, Klauber, Law, Leach, Lee, Limbaugh, Limehouse, Lloyd, Loftis, Maddox, Martin, Mason, McCraw, Meacham, Miller, Moody-Lawrence, Mullen, Neilson, Pinckney, Quinn, Rice, Riser, Robinson, Rodgers, Sandifer, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, R. Smith, Spearman, Stille, Stoddard, Stuart, Trotter, Walker, Webb, Whatley, Whipper, Wilder, Woodrum, Young and Young-Brickell: A BILL TO AMEND SECTION 59-20-60, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPENDING PRIORITIES, AUDITS, EVALUATIONS, AND REPORTS UNDER THE EDUCATION FINANCE ACT, SO AS TO PROVIDE THAT THE ANNUAL SCHOOL DISTRICT PROGRAMMATIC REPORTS TO THE PARENTS AND CONSTITUENTS OF THE DISTRICT MUST BE PROVIDED ON DECEMBER FIRST OF EACH YEAR RATHER THAN NOVEMBER FIFTEENTH.

On motion of Senator GIESE, with unanimous consent, the Bill was taken up for immediate consideration.

H. 4198 -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO CHARTER SCHOOLS REGULATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2164, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4206 -- Rep. G. Brown: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAY MISSED ON SEPTEMBER 6, 1996, BY THE STUDENTS OF THE SCHOOL DISTRICT OF LEE COUNTY FOR SCHOOL YEAR 1996-97 WHEN THE SCHOOLS WERE CLOSED DUE TO HURRICANE CONDITIONS ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.

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

H. 4215 -- Judiciary Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE LAW ENFORCEMENT DIVISION, RELATING TO CONCEALABLE WEAPONS PERMIT, DESIGNATED AS REGULATION DOCUMENT NUMBER 2196, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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

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

H. 3215 -- Reps. Simrill and Meacham: A BILL TO AMEND SECTION 17-13-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A TOWN OR CITY POLICE OFFICER'S JURISDICTION OUTSIDE THE TOWN'S OR CITY'S CORPORATE LIMITS WHEN IN PURSUIT OF AN OFFENDER, SO AS TO INCREASE THE OFFICER'S JURISDICTION FROM A THREE-MILE RADIUS OF THE TOWN'S OR CITY'S CORPORATE LIMITS TO COUNTYWIDE JURISDICTION.

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

H. 3253 -- Reps. Klauber and Hawkins: A BILL TO AMEND SECTION 25-1-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS AND DUTIES OF THE ADJUTANT GENERAL, SO AS TO ALLOW THE ADJUTANT GENERAL TO ORDER A MEMBER OF THE NATIONAL GUARD TO ACTIVE DUTY, SUBJECT TO CONSENT AND AVAILABLE FUNDING.

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

H. 4041 -- Rep. Jennings: A BILL TO AMEND ACT 205 OF 1993, AS AMENDED, RELATING TO THE BOARD OF EDUCATION OF THE CHESTERFIELD COUNTY SCHOOL DISTRICT, SO AS TO PROVIDE THAT A VACANCY MUST BE FILLED BY SPECIAL ELECTION CALLED BY THE BOARD RATHER THAN BY AN APPOINTMENT MADE BY THE BOARD AND T O AMEND SECTION 3 OF ACT 117 OF 1961, AS LAST AMENDED BY ACT 587 OF 1984, PERTAINING TO THE COMPENSATION OF MEMBERS OF THE COLLETON COUNTY SCHOOL BOARD OF TRUSTEES, SO AS TO PROVIDE THAT EACH MEMBER SHALL RECEIVE AN ANNUAL SALARY OF TWO THOUSAND FOUR HUNDRED DOLLARS.

(By prior motion of Senator HOLLAND)

H. 3847 -- Reps. Meacham and Kirsh: A BILL TO AMEND SECTION 39-55-215, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIMUM ACREAGE OF LAND REQUIRED FOR USE AS A CEMETERY, SO AS TO PROVIDE AN EXCEPTION.

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

Senator HAYES asked unanimous consent to make a motion to take up amendments to the Bill.

There was no objection.

On motion of Senator HAYES, with unanimous consent, Amendment No. 3 was taken up for immediate consideration.

Senator HAYES proposed the following Amendment No. 3 (PT\1378DW.97), which was adopted:

Amend the bill, as and if amended, page 1, line 24, by inserting after /municipality/ /which is within fifteen miles of the corporate limits of the City of Charlotte, North Carolina and/.

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

Senator WILSON proposed the following Amendment No. 2 (3847R002.AGW), which was adopted:

Amend the bill, as and if amended, page 1, by striking lines 26 through 28, and inserting in lieu thereof the following:

/ordinance authorizing a cemetery with less than thirty acres of land and when a licensee establishes an/

Amend title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

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

H. 3663 -- Reps. Wilkins, Haskins, Harrison, J. Brown, Sharpe, Townsend, Cato, H. Brown and D. Smith: A BILL TO AMEND SECTION 10-1-163, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT ALL PORTRAITS, FLAGS, BANNERS, MONUMENTS, STATUES, AND PLAQUES WHICH MAY BE REMOVED FROM THE STATE HOUSE DURING RENOVATIONS BE RETURNED TO THEIR ORIGINAL LOCATIONS WHEN THE STATE HOUSE IS REOCCUPIED, SO AS TO AUTHORIZE THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE SENATE TO APPROVE THE LOCATION OF THESE ITEMS IN THEIR RESPECTIVE CHAMBERS AND PROVIDE THAT THE LOCATION OF THESE ITEMS LOCATED OUTSIDE OF THE RESPECTIVE CHAMBERS MUST NOT BE CHANGED UNLESS APPROVED BY AN ACT PASSED BY THE GENERAL ASSEMBLY.

Senator MOORE asked unanimous consent to take up the Bill 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 McCONNELL proposed the following Amendment No. 3 (JUD3663.001), which was adopted:

Amend the bill, as and if amended, page 2, beginning on line 2, in Section 10-1-163 (A), as contained in SECTION 1, by striking line 2 in its entirety and inserting therein the following:

/unless approved by an absolute majority of the Senate members. The location of all/

Amend title to conform.

Senator McCONNELL explained the amendment.

The amendment was adopted.

Senators HOLLAND and MOORE proposed the following Amendment No. 4 (3663R004.DHH), which was adopted:

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

/SECTION   _____.   Notwithstanding the provisions of Section 1-3-210, the Governor may resubmit the name of his acting interim appointee, as published in the Senate Journal on February 25, 1997, for the office of Director of the Department of Public Safety if the Senate fails to confirm the interim appointee prior to the General Assembly adjourning, sine die. The acting interim appointee may continue to serve until February 1, 1998, at which time the office shall be vacant if the appointee is not confirmed and the provisions of Section 1-3-210 shall apply in filling the vacancy, nunc pro tunc./

Amend title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

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

H. 3215 -- Reps. Simrill and Meacham: A BILL TO AMEND SECTION 17-13-40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A TOWN OR CITY POLICE OFFICER'S JURISDICTION OUTSIDE THE TOWN'S OR CITY'S CORPORATE LIMITS WHEN IN PURSUIT OF AN OFFENDER, SO AS TO INCREASE THE OFFICER'S JURISDICTION FROM A THREE-MILE RADIUS OF THE TOWN'S OR CITY'S CORPORATE LIMITS TO COUNTYWIDE JURISDICTION.

Senator BRYAN asked unanimous consent to make a motion to request the return of the Bill from the House of Representatives.

There was no objection.

Senator BRYAN asked unanimous consent to make a motion to proceed to a consideration of the Bill.

There was no objection.

Senator BRYAN asked unanimous consent to make a motion to reconsider the vote whereby the Bill was given a third reading.

There was no objection.

Senator BRYAN proposed the following Amendment No. 1 (JUD3215.003), which was adopted:

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

/SECTION   1.   Section 17-13-40 of the 1976 Code is amended to read:

"Section 17-13-40.   (A)   The When the police authorities of all towns and cities of this State may make arrests of all offenders against the a town or city are in pursuit of an offender for a violation of a municipal ordinances and statutes ordinance or statute of this State committed within the corporate limits or at any place within a radius of three miles of the corporate limits, the authorities may arrest the offender, with or without a warrant, at a place within the corporate limits, at a place within the county in which the town or city is located when such police authorities are in pursuit of such offender, or at a place within a radius of three miles of the corporate limits.

(B)   When the police authorities of a county are in pursuit of an offender for a violation of a county ordinance or statute of this State committed within the unincorporated areas of the county, the authorities may arrest the offender, with or without a warrant, within the unincorporated areas or at a place within an adjacent county.

(C)   When a law enforcement officer's jurisdiction is expanded pursuant to this section, the authority, rights, privileges, and immunities, including coverage under the workers' compensation laws, and tort liability coverage obtained pursuant to the provisions of Chapter 78, Title 15, that are applicable to an officer within the jurisdiction in which he is employed are extended to and include the expanded areas of jurisdiction granted pursuant to this section."

SECTION   2.   The Department of Public Safety, in cooperation with the South Carolina Police Chiefs Association and the South Carolina Sheriffs Association, shall conduct a study concerning the number and character of accidents which result from high speed chases. The study shall determine the number of chases which result in accidents; the number of injuries and fatalities among law enforcement, persons being chased, and persons not involved in a chase; and other information relating to high speed chases that the department considers appropriate. The study shall also include suggestions on how to curtail accidents resulting from high speed chases. The department shall report its findings to the General Assembly by the second Tuesday in January 1998.

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

Amend title to conform.

Senator BRYAN explained the amendment.

The amendment was adopted.

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

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

S. 53 -- Senator Hutto: A BILL TO AMEND SECTION 20-7-420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JURISDICTION OF FAMILY COURT, SO AS TO PROVIDE THAT SIBLING VISITATION BE ORDERED WHEN IT IS DETERMINED TO BE IN THE BEST INTEREST OF THE CHILDREN.

On motion of Senator LANDER, with unanimous consent, the Bill was taken up for immediate consideration.

S. 803 -- Senators Washington, Matthews, Rose and Williams: A BILL TO AMEND SECTION 3 OF ACT 117 OF 1961, AS LAST AMENDED BY ACT 587 OF 1984, PERTAINING TO THE COMPENSATION OF MEMBERS OF THE COLLETON COUNTY SCHOOL BOARD OF TRUSTEES, SO AS TO PROVIDE THAT EACH MEMBER SHALL RECEIVE AN ANNUAL SALARY OF TWO THOUSAND FOUR HUNDRED DOLLARS.

(By prior motion of Senator WASHINGTON)

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

S. 810 -- Senator Holland: A JOINT RESOLUTION TO PERMIT THE GOVERNOR TO RESUBMIT THE NAME OF THE INTERIM DIRECTOR SERVING AT THE DEPARTMENT OF PUBLIC SAFETY IF THE INTERIM APPOINTEE IS NOT CONFIRMED BY THE SENATE PRIOR TO THE GENERAL ASSEMBLY ADJOURNING, SINE DIE AND TO PROVIDE THAT IF THE INTERIM APPOINTEE'S NAME IS RESUBMITTED BY THE GOVERNOR, THAT THE APPOINTEE MAY CONTINUE TO SERVE UNTIL FEBRUARY 1, 1998, AT WHICH TIME THE OFFICE SHALL BE VACANT IF THE APPOINTEE IS NOT CONFIRMED.

On motion of Senator HOLLAND, with unanimous consent, S. 810 was ordered to receive a third reading on Friday, June 6, 1997.

H. 4219 -- Rep. Klauber: A BILL TO AMEND SECTION 7-7-290, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VOTING PRECINCTS IN GREENWOOD COUNTY SO AS TO REVISE CERTAIN PRECINCTS AND THE DATE OF THE OFFICIAL MAP ON WHICH THE LINES OF THESE PRECINCTS ARE SHOWN.

On motion of Senator DRUMMOND, H. 4219 was ordered to receive a third reading on Friday, June 6, 1997.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.

On motion of Senator MOORE, the Senate agreed to dispense with the Motion Period.

At 11:43 A.M., on motion of Senator MOORE, the Senate receded from business until 12:00 Noon.

At 12:00 Noon, the Senate resumed.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3038 -- Reps. Vaughn, Haskins, Kirsh and Riser: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 26-1-25, SO AS TO PROVIDE ADDITIONAL METHODS FOR THE LEGISLATIVE DELEGATION MEMBERS ENDORSEMENTS REQUIRED FOR APPLICATIONS FOR NOTARY PUBLIC COMMISSIONS CONSISTING OF THE SIGNATURES OF THE CHAIRMAN AND SECRETARY OF A COUNTY LEGISLATIVE DELEGATION AND THE DELEGATION CHAIRMAN AND ADMINISTRATIVE ASSISTANT TO THE DELEGATION AND TO PROVIDE FOR NOTIFICATION TO THE SECRETARY OF STATE OF A DELEGATION'S USE OF THESE ADDITIONAL METHODS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3292 -- Reps. Klauber and Parks: A BILL TO AMEND SECTION 31-15-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO THE REPAIRING, CLOSING, OR DEMOLISHING OF UNFIT DWELLINGS, SO AS TO REVISE THE DEFINITION OF A "MUNICIPALITY";TO AMEND SECTION 31-15-30, RELATING TO MUNICIPAL ORDINANCES WITH REGARD TO UNFIT DWELLINGS, SO AS TO PROVIDE THAT COSTS INCURRED BY A MUNICIPALITY TO FIX OR REMOVE SUCH DWELLINGS SHALL BE COLLECTIBLE IN THE SAME MANNER AS MUNICIPAL TAXES AND THAT IF THE MUNICIPALITY IN DEMOLISHING AN UNFIT DWELLING CONTRACTS WITH A THIRD PARTY TO DO THE WORK, THE WORK MUST BE BID IN CONFORMITY WITH APPLICABLE PROCUREMENT CODES; AND TO AMEND SECTION 31-15-330, RELATING TO COUNTY ORDINANCES WITH REGARD TO UNFIT DWELLINGS, SO AS TO PROVIDE THAT COSTS INCURRED BY A COUNTY TO FIX OR REMOVE SUCH DWELLINGS SHALL BE COLLECTIBLE IN THE SAME MANNER AS COUNTY TAXES AND THAT IF THE COUNTY IN DEMOLISHING AN UNFIT DWELLING CONTRACTS WITH A THIRD PARTY TO DO THE WORK, THE WORK MUST BE BID IN CONFORMITY WITH APPLICABLE PROCUREMENT CODES.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3253 -- Reps. Klauber and Hawkins: A BILL TO AMEND SECTION 25-1-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POWERS AND DUTIES OF THE ADJUTANT GENERAL, SO AS TO ALLOW THE ADJUTANT GENERAL TO ORDER A MEMBER OF THE NATIONAL GUARD TO ACTIVE DUTY, SUBJECT TO CONSENT AND AVAILABLE FUNDING.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3637 -- Reps. R. Smith, Mason, Sharpe, Clyburn, Beck, Felder, Kelley and Spearman: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CALCULATION OF NEW AND ADDITIONAL NEW FULL-TIME JOBS FOR PURPOSES OF AN ANNUAL JOB TAX CREDIT, SO AS TO PROVIDE FOR AND PLACE A TIME LIMIT ON A TAYPAYER ELECTION FOR DETERMINATION OF NEW AND ADDITIONAL NEW FULL-TIME JOBS AND TO DEFINE "SINGLE SITE".
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3663 -- Reps. Wilkins, Haskins, Harrison, J. Brown, Sharpe, Townsend, Cato, H. Brown and D. Smith: A BILL TO AMEND SECTION 10-1-163, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT ALL PORTRAITS, FLAGS, BANNERS, MONUMENTS, STATUES, AND PLAQUES WHICH MAY BE REMOVED FROM THE STATE HOUSE DURING RENOVATIONS BE RETURNED TO THEIR ORIGINAL LOCATIONS WHEN THE STATE HOUSE IS REOCCUPIED, SO AS TO AUTHORIZE THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE SENATE TO APPROVE THE LOCATION OF THESE ITEMS IN THEIR RESPECTIVE CHAMBERS AND PROVIDE THAT THE LOCATION OF THESE ITEMS LOCATED OUTSIDE OF THE RESPECTIVE CHAMBERS MUST NOT BE CHANGED UNLESS APPROVED BY AN ACT PASSED BY THE GENERAL ASSEMBLY.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3669 -- Reps. R. Smith, Wilkins, Boan, Harrell, Cobb-Hunter, Harvin, Webb, Jennings, Riser, Sharpe, Cromer, Felder, Cato, H. Brown and Witherspoon: A BILL TO AMEND CHAPTER 119, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CLEMSON UNIVERSITY, BY ADDING ARTICLE 9, PROVIDING FOR CLEMSON UNIVERSITY ATHLETIC FACILITIES REVENUE BONDS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3677 -- Rep. Klauber: A BILL TO AMEND CHAPTER 1, TITLE 35, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNIFORM SECURITIES ACT, SO AS TO REVISE THE PROVISIONS OF THE CHAPTER BY DELETING CERTAIN LANGUAGE AND PROVISIONS, ADDING NEW PROVISIONS, AND PROVIDING, AMONG OTHER THINGS, FOR DEFINITIONS FOR THE TERMS "FEDERAL COVERED ADVISER" AND "FEDERAL COVERED SECURITY", THAT INVESTIGATIVE RECORDS AND COMPLAINTS FILED WITH THE SECURITIES COMMISSIONER ARE NOT CONSIDERED PUBLIC INFORMATION BUT ISSUED ORDERS, INCLUDING CERTAIN COMPLAINTS, ARE CONSIDERED PUBLIC RECORDS, THAT CERTAIN BROKER-DEALERS ARE EXEMPT FROM THE LICENSING REQUIREMENTS OF SECTION 35-1-410, THAT CERTAIN ACTIVITY IS UNLAWFUL, THAT EVERY INVESTMENT ADVISER REGISTRATION OR NOTICE FILING EXPIRES TWO YEARS FROM ITS EFFECTIVE DATE UNLESS RENEWED, THAT REGISTRATION OF AN INVESTMENT ADVISER AUTOMATICALLY CONSTITUTES REGISTRATION OF ANY INVESTMENT ADVISER REPRESENTATIVE WHO IS A PARTNER, OFFICER, OR DIRECTOR OR A PERSON OCCUPYING A SIMILAR STATUS OR PERFORMING SIMILAR FUNCTIONS, FOR CHANGES IN CERTAIN FEES, THAT THE SECURITIES COMMISSIONER MAY REQUIRE, WITH RESPECT TO INVESTMENT ADVISERS, THAT CERTAIN INFORMATION BE FURNISHED OR DISSEMINATED AS NECESSARY OR APPROPRIATE IN THE PUBLIC INTEREST OR FOR THE PROTECTION OF INVESTORS AND ADVISORY CLIENTS, FOR NOTICE FILINGS FOR FEDERAL COVERED SECURITIES, THAT UNLESS PROHIBITED BY RULE OR ORDER OF THE SECURITIES COMMISSIONER, AN INVESTMENT ADVISER REGISTERED UNDER THE INVESTMENT ADVISERS ACT OF 1940 MAY TAKE OR RETAIN CUSTODY OF SECURITIES OR FUNDS OF A CLIENT, AND THAT THE SECURITIES COMMISSIONER MAY REFER AVAILABLE EVIDENCE CONCERNING VIOLATIONS OF THIS CHAPTER OR OF ANY RULE OR ORDER UNDER THIS CHAPTER TO THE APPROPRIATE DIVISION OF THE ATTORNEY GENERAL'S OFFICE OR OTHER APPROPRIATE PROSECUTION, LAW ENFORCEMENT, OR LICENSING AUTHORITIES WHO MAY INSTITUTE THE APPROPRIATE PROCEEDINGS UNDER THIS CHAPTER.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3847 -- Reps. Meacham and Kirsh: A BILL TO AMEND SECTION 39-55-215, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIMUM ACREAGE OF LAND REQUIRED FOR USE AS A CEMETERY, SO AS TO PROVIDE AN EXCEPTION.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4026 -- Rep. H. Brown: A BILL TO AMEND CHAPTER 35, TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, SO AS TO REVISE THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE, TO PROVIDE GENERAL PROVISIONS APPLICABLE TO THE CONSOLIDATED PROCUREMENT CODE, TO PROVIDE FOR WRITTEN DETERMINATIONS AND FINDINGS REQUIRED BY THIS CODE, TO PROVIDE FOR DEFINITIONS OF TERMS USED IN THIS CODE, TO PROVIDE FOR PUBLIC ACCESS TO PROCUREMENT INFORMATION, TO PROVIDE FOR REPORTING THE PURCHASE OF FURNITURE AND CERTAIN OTHER PURCHASES, TO PROVIDE FOR PROCUREMENT ORGANIZATION AND FOR EXCEPTIONS, TO PROVIDE FOR THE CREATION OF OFFICES AND FOR THE RESPONSIBILITY AND AUTHORITY OF THOSE OFFICES UNDER THIS CODE, TO PROVIDE FOR ADVISOR COMMITTEES AND TRAINING, TO PROVIDE FOR AUDITING AND FISCAL REPORTING, TO PROVIDE FOR SOURCE SELECTION, CONTRACTS AND AUDITS, TO PROVIDE FOR METHODS OF SOURCE SELECTION, TO PROVIDE FOR CANCELLATION OF SOLICITATIONS, TO PROVIDE FOR TYPES AND FORMS OF CONTRACTS, TO PROVIDE FOR INSPECTION OF PLANTS AND PLACES OF BUSINESS AND AUDIT OF RECORDS, TO PROVIDE FOR DETERMINATIONS AND REPORTS IN CONNECTION WITH COMPETITIVE SEALED BIDDING, CORRECTION OR WITHDRAWAL OF BIDS, AND CANCELLATION OF AWARDS, TO PROVIDE FOR REGULATION OF SPECIFICATIONS, TO PROVIDE FOR CONSTRUCTION, ARCHITECT-ENGINEER, CONSTRUCTION MANAGEMENT AND LAND SURVEYING SERVICES, TO PROVIDE FOR INDEFINITE DELIVERY CONTRACTS, AND FOR MODIFICATIONS AND TERMINATION OF CONTRACTS FOR SUPPLIES AND SERVICES, TO PROVIDE FOR COST PRINCIPLES, SUPPLY MANAGEMENT, WAREHOUSES AND INVENTORY, TO PROVIDE FOR THE REGULATION OF SALE, LEASE, TRANSFER, AND DISPOSAL OF SURPLUS SUPPLIES AND OTHER PROPERTY, TO PROVIDE FOR CERTAIN LEGAL AND CONTRACTUAL REMEDIES, THE ADMINISTRATIVE RESOLUTION OF CONTROVERSIES, AND FOR THE SOUTH CAROLINA PROCUREMENT REVIEW PANEL, TO PROVIDE FOR INTERGOVERNMENTAL RELATIONS AND FOR COOPERATIVE PURCHASING, AND TO PROVIDE FOR CERTIFICATION AND ASSISTANCE TO MINORITY BUSINESSES; TO ADD SECTION 1-11-55 SO AS TO PROVIDE FOR LEASING OF REAL PROPERTY, TO ADD SECTION 1-11-56 SO AS TO PROVIDE FOR BUDGET AND CONTROL BOARD MANAGEMENT OF STATE AGENCY LEASING OF SPACE, TO ADD SECTION 1-11-57 SO AS TO PROVIDE FOR THE EXCHANGE OF TITLE TO REAL PROPERTY BY GOVERNMENTAL BODIES OTHER THAN POLITICAL SUBDIVISIONS, AND TO ADD SECTION 1-11-58 SO AS TO PROVIDE FOR INVENTORY AND ANNUAL REPORTS OF ALL RESIDENTIAL PROPERTY OWNED BY STATE AGENCIES, AND TO REPEAL SECTIONS 1-1-1110 AND 1-11-35 RELATING TO CERTAIN PROCUREMENT AND INVENTORY PROVISIONS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4041 -- Rep. Jennings: A BILL TO AMEND ACT 205 OF 1993, AS AMENDED, RELATING TO THE BOARD OF EDUCATION OF THE CHESTERFIELD COUNTY SCHOOL DISTRICT, SO AS TO PROVIDE THAT A VACANCY MUST BE FILLED BY SPECIAL ELECTION CALLED BY THE BOARD RATHER THAN BY AN APPOINTMENT MADE BY THE BOARD AND TO AMEND SECTION 3 OF ACT 117 OF 1961, AS LAST AMENDED BY ACT 587 OF 1984, PERTAINING TO THE COMPENSATION OF MEMBERS OF THE COLLETON COUNTY SCHOOL BOARD OF TRUSTEES, SO AS TO PROVIDE THAT EACH MEMBER SHALL RECEIVE AN ANNUAL SALARY OF TWO THOUSAND FOUR HUNDRED DOLLARS.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 4101 -- Reps. Edge, Kelley, Keegan, Witherspoon and Barfield: A BILL TO AMEND ACT 287 OF 1989, RELATING TO THE HORRY COUNTY BOARD OF EDUCATION, SO AS TO PROVIDE THAT BEGINNING IN 1998, THE CHAIRMAN OF THE BOARD SHALL CONSTITUTE A TWELFTH SEPARATE SEAT ON THE BOARD, AND THE CHAIRMAN SHALL BE ELECTED BY THE QUALIFIED ELECTORS OF THE COUNTY AT LARGE.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

S. 60 -- Senator Holland: A BILL TO AMEND SECTION 56-5-2990, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SUSPENSION OF A PERSON'S DRIVER'S LICENSE FOR DRIVING UNDER THE INFLUENCE OF A CONTROLLED SUBSTANCE, SO AS TO PROVIDE FOR THE REINSTATEMENT OF THE DRIVER'S LICENSE OF A PERSON WHOSE LICENSE HAS BEEN REVOKED FOR A FIFTH OFFENSE; AND TO ADD SECTION 56-1-385, SO AS TO PROVIDE FOR THE PROCEDURES AND REQUIREMENTS FOR REINSTATEMENT OF THE DRIVER'S LICENSE AFTER A FIFTH OFFENSE.

The House returned the Bill with amendments.

Senator HUTTO proposed the following amendment (60R003.CBH), which was adopted:

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

/SECTION   1.   The first paragraph of Section 56-5-2990 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"The department shall suspend the driver's license of any a person who is convicted, receives sentence upon a plea of guilty or of nolo contendere, or forfeits bail posted for the violation of Section 56-5-2930 or for the violation of any other another law or ordinance of this State or of any a municipality of this State that prohibits any a person from operating a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics for six months for the first conviction, plea of guilty or of nolo contendere, or forfeiture of bail, one year for the second conviction, plea of guilty or of nolo contendere, or forfeiture of bail, two years for the third offense, three years for the fourth offense, and a permanent revocation of the driver's license for fifth fourth and subsequent offenses. Only those violations which occurred within ten years, including and immediately preceding the date of the last violation, shall constitute prior violations within the meaning of this section. Any A person whose license is revoked following conviction for a fifth fourth offense as provided in this section is forever barred from being issued any license by the Department of Revenue and Taxation Public Safety to operate a motor vehicle except as provided in Section 56-1-385."

SECTION   2.   The 1976 Code is amended by adding:

"Section 56-1-385.   (A)   Notwithstanding another provision of law, a person whose driver's license or privilege to operate a motor vehicle has been revoked permanently pursuant to Section 56-5-2990, excluding persons convicted of felony driving under the influence of alcohol or another controlled substance under Section 56-5-2945, may petition the circuit court in the county of his residence for reinstatement of his driver's license and shall serve a copy of the petition upon the solicitor of the circuit. The solicitor or his designee within thirty days may respond to the petition and demand a hearing on the merits of the petition. If the solicitor or his designee does not demand a hearing, then the circuit court shall consider any affidavit submitted by the petitioner and the solicitor or his designee when determining whether the conditions required for driving privilege reinstatement have been met by the petitioner. The court may order the reinstatement of the person's driver's license upon the following conditions:

(1)   the person must not have been convicted of an alcohol or drug violation in this State or any other state during the previous seven-year period;

(2)   the person must have completed successfully an alcohol or drug assessment and treatment program provided by the South Carolina Department of Alcohol and Other Drug Abuse Services or an equivalent program designated by that agency; and

(3)   the person's overall driving record, attitude, habits, character, and driving ability would make it safe to grant him the privilege to operate a motor vehicle.

(B)(1)   A person may not seek reinstatement of his driver's license pursuant to this section if the person subsequently is convicted of, receives a sentence upon a plea of guilty or of nolo contendere, or forfeits bail posted for a violation of Section 56-5-2930 or for a violation of another law or ordinance of this State or any other state or of a municipality of this State or any other state that prohibits a person from operating a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics.

(2)   Nothing in this section may be construed to prohibit a person whose license has been revoked pursuant to Section 56-5-2930 before the effective date of this section from seeking reinstatement of his license pursuant to the provisions in this section.

(C)   If a person's privilege to operate a motor vehicle is restored pursuant to this section, a subsequent violation of driving under the influence of alcohol or another controlled substance or felony driving under the influence of alcohol or another controlled substance will require the cancellation of the person's driver's license and the imposition of the full period of suspension and revocation for a previous violation.

(D)   Before a person may have his driver's license reinstated under this section he must:

(1)   pay a fifty dollar filing fee to the court; and

(2)   successfully complete the requirements to obtain a driver's license contained in this article."

SECTION   3.   Section 56-1-320 of the 1976 Code is amended to read:

"Section 56-1-320.   (A)   The department may, in its discretion, suspend or revoke the license of any resident of this State or the privilege of a nonresident to drive a motor vehicle in this State upon receiving notice of the conviction of such person in another state of an offense therein which, if committed in this State, would be grounds for the suspension or revocation of the South Carolina license.

Provided, however, that if a resident of this State has his driver's license revoked or suspended for a motor vehicle violation in another jurisdiction, the department must review the revocation or suspension period for the out-of-state conviction and apply the laws of this State if the out-of-state revocation or suspension period exceeds the revocation or suspension period provided under the laws of this State for that offense. If the laws of this State are applied to an out-of-state conviction, the department must restore the individual's privilege to drive in South Carolina once the individual has cleared the suspension pursuant to this title, regardless of whether the individual's privilege to drive has been restored in the state where the conviction occurred, provided the individual is otherwise eligible for the issuance or renewal of a South Carolina license.

If another state restores limited or restricted driving privileges to the person whose license has been suspended or revoked, such restoration of privileges shall also be valid in this State and the department must issue a driver's license to the individual under the same terms and conditions under which driving is authorized in the state of conviction.

(B)   The department may not refuse to issue or renew a driver's license to an individual who:

(1)   is still under suspension or revocation in another jurisdiction for an out-of-state conviction which was not reported to the department within the one-year period provided for in Section 56-1-650(C);

(2)   has received notice of clearance from the jurisdiction where the revocation or suspension has terminated or that all requirements necessary for reissuance of driving privileges in that jurisdiction are met; or

(3)   does not have a letter of clearance from the jurisdiction where the conviction occurred and is still under suspension or revocation in that jurisdiction for a conviction which was not reported to the department within the one-year period provided for in Section 56-1-650(C)."

SECTION   4.   Section 56-1-650(C) is amended by adding:

"The department shall not post to an individual's driver's record any conviction that is not received by the department within the one-year period for offenses governed by this subsection. For purposes of this title, this means all convictions which occurred after June 4, 1995, which are not required to be reported pursuant to subsection (A). The department may not refuse to issue or renew a resident's driver's license when the individual's privilege to drive is suspended or revoked for an out-of-state conviction which was not reported to the department within one year of the date of conviction, as required in this subsection."

SECTION   5.   The 1976 Code is amended by adding:

"Section 56-1-175.   (A)   The department may issue a provisional driver's license to a person who is at least fifteen years of age and less than sixteen years of age, who has:

(1)   held a beginner's permit for at least ninety days;

(2)   passed a driver's education course as defined in subsection (D);

(3)   passed successfully the road tests or other requirements the department may prescribe; and

(4)   satisfied the school attendance requirement contained in Section 56-1-176.

(B)   A provisional driver's license is valid only in the operation of:

(1)   vehicles during daylight hours. During nighttime hours, but no later than midnight and no earlier than six a.m., the holder of a provisional driver's license must be accompanied by a licensed adult, twenty-one years of age or older;

(2)   a motor scooter or light motor-driven cycle of five-brake horsepower or less, during daylight hours.

(C)   Daylight hours, as used in this section, means after the hour of six o'clock a.m. and no later than six o'clock p.m. However, beginning on the day that daylight saving time goes into effect through the day that daylight saving time ends, the holder of the provisional license may operate a vehicle after six o'clock a.m. and no later than eight o'clock p.m. For purposes of this section, all other hours are designated as nighttime hours.

(D)   A driver training course, as used in this section, means a driver's training course administered by a driver's training school or a private, parochial, or public high school conducted by a person holding a valid driver's instructor permit contained in Section 56-23-85.

(E)   For purposes of issuing a provisional driver's license pursuant to this section, the department must accept a certificate of completion for a student who attends or is attending an out-of-state high school and passed a qualified driver's training course or program that is equivalent to an approved course or program in this State. The department must establish procedures for approving qualified driver's training courses or programs for out-of-state students."

SECTION   6.   The 1976 Code is amended by adding:

"Section 56-1-176.   (A)   School attendance is a condition for the issuance of a provisional license. The department may not issue a provisional license to a person pursuant to Section 56-1-175 unless the person:

(1)   has a high school diploma or certificate, or a General Education Development Certificate; or

(2)   is enrolled in a public or private school which has been approved by the State Board of Education or a member school of the South Carolina Independent School's Association or a similar organization, or a parochial, denominational, or church-related school, or other programs which are accepted by the State Board of Education, and:

(a)   the person has conformed to the attendance laws, regulations, and policies of the school, school district, and the State Board of Education, as applicable; and

(b)   the person is not suspended or expelled from school.

(B)   Documentation of enrollment status must be presented to the department by the applicant on a form approved by the department. The documentation must indicate whether the student is in compliance with the requirements as provided in item (2)."

SECTION   7.   The 1976 Code is amended by adding:

"Section 56-23-87.   A person successfully completing a driver's training course conducted by a person holding a valid driver's instructor permit as provided for in Section 56-23-85 must be issued a certificate of completion by the entity conducting the course in a form consistent with regulations issued by the Department of Public Safety."

SECTION   8.   Section 56-1-30(4) of the 1976 Code is amended to read:

"(4)   Any A person operating or driving implements of husbandry temporarily drawn, propelled, or moved upon a highway. Implements of husbandry include, but are not limited to, farm machinery and farm equipment other than a passenger car."

SECTION   9.   Section 56-1-40(1) of the 1976 Code, as last amended by Section 121D, Part II, Act 497 of 1994, is further amended to read:

"(1)   who is under sixteen seventeen years of age, except that the department may issue a license to a sixteen-year old who is licensed to drive pursuant to Section 56-1-175 if the driver has not been convicted of point-assessable traffic offenses posted to his driver's record after one year from the date of the issuance of the provisional license. However, the department may issue a beginner's or instruction permit as provided in Sections Section 56-1-50 and 56-1-60 to a person who is at least fifteen years of age, and meets the requirements of that section. The department also may issue a special restricted driver's license to a person who is at least fifteen sixteen years of age and less than sixteen seventeen years of age as provided in Section 56-1-180 and meets the requirements of that section;"

SECTION   10.   Section 56-1-50 of the 1976 Code, as last amended by Section 121E, Part II, Act 497 of 1995, is further amended to read:

"Section 56-1-50.   (A)   A person who is at least fifteen years of age may apply to the department for a beginner's permit. After the applicant has passed successfully all parts of the examination other than the driving test, the department may issue to the applicant a beginner's permit which entitles the applicant having the permit in his immediate possession to drive a motor vehicle under the conditions contained in this section on the public highways for not more than twelve months.

(B)   The permit is valid only in the operation of:

(1)   vehicles during the daylight hours;

(2)   motor scooter or light motor-driven cycle of five-brake horsepower or less during daylight hours.

(C)   Except as provided in subsection (E), while driving, as provided in subsection (B)(1), the permittee must be accompanied by a licensed driver eighteen twenty-one years of age or older who has had at least one year of driving experience, and who is occupying a seat beside the driver, except when the permittee is operating a motorcycle. A three-wheel vehicle requires the accompanying driver to be directly behind the driver on a saddle-type seat or beside the driver on a bench-type seat.

(D)   A beginner's permit may be renewed or a new permit issued for additional periods of twelve months, but the department may refuse to renew or issue a new permit where the examining officer has reason to believe the applicant has not made a bona fide effort to pass the required driver's road test or does not appear to the examining officer to have the aptitude to pass the road test. The fee for every beginner's or renewal permit is two dollars and fifty cents, and the permit must bear the full name, date of birth, and residence address and a brief description and color photograph of the permittee and a facsimile of the signature of the permittee or a space upon which the permittee shall write his usual signature with pen and ink immediately upon receipt of the permit. No A permit is not valid until it has been so signed by the permittee.

(E)   The following persons are not required to obtain a beginner's permit to operate a motor vehicle:

(1)   a student regularly enrolled in a high school of this State which conducts a driver's training course is not required to obtain a beginner's permit to operate a motor vehicle while the student is participating in the driver training course and when accompanied by a qualified instructor of the driver training course.; and

(2)   Also exempted from the requirement of the beginner's permit are persons a person fifteen years of age or older enrolled in a driver training courses course conducted by a driver training schools school licensed under Chapter 23 of this title. However, these persons this person at all times must be accompanied by an instructor of the school and may drive only an automobile owned or leased by the school which is covered by liability insurance in an amount not less than the minimum required by law.

(F)   A person who has never held a form of license evidencing previous driving experience first must be issued a beginner's permit and must hold the permit for at least ninety days before being eligible for full licensure.

(G)   Daylight hours, as used in this section, means after the hour of six o'clock a.m. and no later than six o'clock p.m. However, beginning on the day that daylight saving time goes into effect through the day that daylight saving time ends, the holder of the permit may operate a vehicle after six o'clock a.m. and no later than eight o'clock p.m."

SECTION   11.   Section 56-1-130 of the 1976 Code, as last amended by Act 459 of 1996, is further amended to read:

"Section 56-1-130.   (A)   The department shall examine every applicant for a driver's license, except as otherwise provided in this article. The examination shall include a test of the applicant's eyesight, his ability to read and understand highway signs regulating, warning, and directing traffic, and his knowledge of the traffic laws of this State and shall include an actual demonstration of ability to exercise ordinary and reasonable control in the operation of the type motor vehicle, including motorcycles, for which a license is sought. The department may require such further physical and mental examination as it deems necessary to determine the applicant's fitness to operate a motor vehicle upon the highways, such further examination to be at the applicant's expense. The department shall make provisions for giving an examination in the county where the applicant resides. The department shall charge an appropriate fee for each complete examination or reexamination required in this article.

(B)   No persons, except those exempted under Section 56-1-30 and Section 56-1-60 or those holding beginner's permits under Section 56-1-50, shall operate any classification of motor vehicle without first being examined and duly licensed by the driver examiner as a qualified driver of that classification of motor vehicle.

(C)   A basic driver's license authorizes the licensee to operate motor vehicles, three-wheel vehicles, or combinations of vehicles which do not exceed twenty-six thousand pounds gross vehicle weight; provided, that the driver has successfully demonstrated the ability to exercise ordinary and reasonable control in the operation of a motor vehicle in this category. A basic driver's license also authorizes the licensee to operate farm trucks provided for in Sections 56-3-670, 56-3-680, and 56-3-690, which are used exclusively by the owner for agricultural, horticultural, and dairying operations or livestock and poultry raising. Notwithstanding any other provision of law, the holder of a provisional license, or special restricted license operating a farm truck for the purposes provided in this subsection, may operate the farm truck without an accompanying adult after six o'clock a.m. and no later than nine o'clock p.m., but may not operate a farm truck on a freeway. A person operating a farm truck while holding a provisional driver's license or a special restricted license may not use the farm truck for ordinary domestic purposes or general transportation.

A classified driver's license shall authorize the licensee to operate a motorcycle or those vehicles in excess of twenty-six thousand pounds gross vehicle weight which are indicated by endorsement on the license. The endorsement may include classifications such as: motorcycle, two-axle truck, three or more axle truck, combination of vehicles, motor-busses or oversize or overweight vehicles. The department shall determine from the driving demonstration the endorsements to be indicated on the license."

SECTION 12.   Section 56-1-180 of the 1976 Code, as last amended by Act 490 of 1992, is further amended to read:

"Section 56-1-180.   (A)   The department may issue a special restricted driver's license to a person who is at least fifteen sixteen years old of age and less than sixteen seventeen years old of age, who first has acquired held a beginner's permit for ninety days or an instruction permit and who has successfully passed the road tests or other requirements as the department may in its discretion may prescribe.

(B)   The special restricted driver's license is valid only under the following conditions in the operation of:

(1)   in the operation of all type vehicles during daylight hours., except that between the hours of six o'clock p.m. and six o'clock a.m. the holder of the special restricted driver's license must be accompanied by a licensed adult, twenty-one years of age or more, or accompanied by the holder's parent or guardian. However, beginning on the day that daylight saving time goes into effect through the day that daylight saving time ends, the holder of the license does not need to be accompanied before eight o'clock p.m. During nighttime hours, no later than midnight and no earlier than six a.m., the holder of a special restricted driver's license must be accompanied by a licensed adult, twenty-one years of age or older. This restriction may be modified or waived by the department if the restricted licensee proves to the department's satisfaction that the restriction interferes or substantially interferes with:

(a)   employment or the opportunity for employment;

(b)   travel between the licensee's home and place of employment or school; or

(c)   travel between the licensee's home or place of employment and vocational training;

(2)   in the operation of farm machinery and equipment, other than a passenger car, while engaged in agricultural pursuits; and

(3)   in the operation of a motor scooter or light motor-driven cycle of five-brake horsepower or less during daylight hours.

(C)   The waiver or modification of restrictions provided for in item (1) must include a statement of the purpose of the waiver or modification executed by the parents or legal guardian of the holder of the restricted license and documents executed by the driver's employment or school official, as is appropriate, evidencing the holder's need for the waiver or modification.

(D)   Daylight hours, as used in this section, means after the hour of six o'clock a.m. and no later than six o'clock p.m. However, beginning on the day that daylight saving time goes into effect through the day that daylight saving time ends, the holder of the restricted license may operate a vehicle after six o'clock a.m. and no later than eight o'clock p.m. For purposes of this section, all other hours are designated as nighttime hours."

SECTION   13.   Section 56-1-185 of the 1976 Code is amended to read:

"Section 56-1-185.   (A)   Any A person while operating a motor vehicle under a special restricted driver's license who is convicted of a point-assessable traffic offense or involved in an accident in which he was at fault shall have the removal of the restrictions postponed for six months during which period the licensee must be free of any traffic convictions.

(B)   A person while operating a motor vehicle under a beginner's permit, provisional or a special restricted driver's license who is convicted of one or more point-assessable traffic offenses totaling six or more points, as determined by the values contained in Section 56-1-720, shall have his license suspended by the department for six months. This suspension shall not preclude other penalties otherwise provided for the same violations."

SECTION   14.   The State Law Enforcement Division must submit the BAC Datamaster to a facility with expertise in breath alcohol testing so that the instrument may be tested to determine its accuracy and precision. SLED must submit the results of the test to the General Assembly by January 1, 1998.

SECTION 15. Article 9, Chapter 23 of the 1976 Code is amended by adding:

"Section 23-6-445.   Service by a law enforcement officer, who is or has been appointed chief of a municipal department by the governing body thereof, as a magistrate or municipal court judge of this State shall not be considered a break in service as an active law enforcement officer for purposes of that officer receiving equivalent training credits for law enforcement training received if he has twenty or more years of service as a law enforcement officer."

SECTION   16.   The 1976 Code is amended by adding:

"Section 56-1-325.   When a resident of this State has been convicted of a motor vehicle violation in another jurisdiction other than one that prohibits a person from operating a motor vehicle while under the influence of intoxicating liquor, drugs, or narcotics, the person may apply to the court for an order expunging the records of the offense after the person's driving privileges have been restored in the jurisdiction where the offense occurred."

SECTION   17.   SECTIONS 1, 2, 3, 4, 14, 15, and 16 of this act take effect upon approval of the Governor. SECTIONS 5, 6, 7, 8, 9, 10, 11, 12, and 13, which apply to a person applying for a beginner's permit, provisional or restricted driver's license or regular motor vehicle driver's license, take effect on July 1, 1998. A person who, on July 1, 1998, is a holder of a valid special restricted license is entitled to retain that license and is exempt from the provisional license requirements. The purpose of this provision is to grandfather persons who hold a valid special restricted license on July 1, 1998. No provision in this section must be construed to prevent loss of the holder's licensing privileges for traffic violations or other acts which would otherwise affect his driving privilege./

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was amended, ordered returned to the House with amendments.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
S. 60 -- Senator Holland: A BILL TO AMEND SECTION 56-5-2990, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SUSPENSION OF A PERSON'S DRIVER'S LICENSE FOR DRIVING UNDER THE INFLUENCE OF A CONTROLLED SUBSTANCE, SO AS TO PROVIDE FOR THE REINSTATEMENT OF THE DRIVER'S LICENSE OF A PERSON WHOSE LICENSE HAS BEEN REVOKED FOR A FIFTH OFFENSE; AND TO ADD SECTION 56-1-385, SO AS TO PROVIDE FOR THE PROCEDURES AND REQUIREMENTS FOR REINSTATEMENT OF THE DRIVER'S LICENSE AFTER A FIFTH OFFENSE.
Very respectfully,
Speaker of the House

On motion of Senator HUTTO, the Senate insisted upon its amendments to S. 60 and asked for a Committee of Conference.

Whereupon, the PRESIDENT Pro Tempore appointed Senators LEATHERMAN, COURTNEY and HUTTO of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Harrison, Townsend and Jennings of the Committee of Conference on the part of the House on:
S. 60 -- Senator Holland: A BILL TO AMEND SECTION 56-5-2990, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SUSPENSION OF A PERSON'S DRIVER'S LICENSE FOR DRIVING UNDER THE INFLUENCE OF A CONTROLLED SUBSTANCE, SO AS TO PROVIDE FOR THE REINSTATEMENT OF THE DRIVER'S LICENSE OF A PERSON WHOSE LICENSE HAS BEEN REVOKED FOR A FIFTH OFFENSE; AND TO ADD SECTION 56-1-385, SO AS TO PROVIDE FOR THE PROCEDURES AND REQUIREMENTS FOR REINSTATEMENT OF THE DRIVER'S LICENSE AFTER A FIFTH OFFENSE.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 4, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.
Very respectfully,
Speaker of the House

On motion of Senator WILSON, the Senate insisted upon its amendments to H. 3499 and asked for a Committee of Conference.

Whereupon, the PRESIDENT Pro Tempore appointed Senators BRYAN, WILSON and CORK of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Klauber, Whatley and Knotts of the Committee of Conference on the part of the House on:
H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.
Very respectfully,
Speaker of the House

Received as information.

H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.

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

Senator BRYAN spoke on the report.

On motion of Senator BRYAN, the Report of the Committee of Conference to H. 3499 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.
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 17-13-45.   When a law enforcement officer responds to a distress call or a request for assistance in an adjacent jurisdiction, the authority, rights, privileges, and immunities, including coverage under the workers' compensation laws, and tort liability coverage obtained pursuant to the provisions of Chapter 78, Title 15, that are applicable to an officer within the jurisdiction in which he is employed are extended to and include the adjacent jurisdiction."

SECTION   2.   The 1976 Code is amended by adding:

"Section 55-11-355.   No property of the Richland-Lexington Airport District is a barrier to the contiguity requirements for the purposes of annexation. Any municipality which is contiguous to property owned by the district may annex, as provided by law, any property contiguous to the district."

SECTION   3.   Section 55-11-350 of the 1976 Code is amended by adding at the end:

"Notwithstanding the provisions of this section, any public road, street, or highway located in the Richland-Lexington Airport District which is contiguous to or intersects the corporate limits of a municipality is within the police jurisdiction of that municipality. Summonses issued by municipal police officers in the jurisdiction authorized pursuant to this paragraph must be tried in municipal court, and all fines and forfeitures collected under the provisions of this paragraph may be retained by the enforcing municipality."

SECTION   4.   The Department of Public Safety, in cooperation with the South Carolina Police Chiefs Association and the South Carolina Sheriffs Association, shall conduct a study concerning the number and character of accidents which result from high speed chases. The study shall determine the number of chases which result in accidents; the number of injuries and fatalities among law enforcement, persons being chased, and persons not involved in a chase; and other information related to high speed chases that the department considers appropriate. The study shall also include suggestions on how to curtail accidents resulting from high speed chases. The department shall report its findings to the General Assembly by the second Tuesday in January 1998.

SECTION   5.   This act takes effect upon approval by the Governor.

Amend title to conform.

/s/James E. Bryan                 /s/John Milton "Jake" Knotts
/s/Addison G. "Joe" Wilson        /s/James S. Klauber
/s/Holly A. Cork                  /s/Michael Stewart "Mickey" Whatley
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that the report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
H. 3499 -- Reps. Knotts, Whatley, Cobb-Hunter, Neal, Kennedy, Govan, Lanford, Fleming, Simrill, Bailey, Altman, Stille, Harrell, Young, Sandifer, McCraw, Clyburn, Wilkins, Scott, Chellis, Davenport, Harrison, D. Smith, Riser, Webb, Barrett, Tripp, Klauber, J. Smith, Keegan, Delleney, Bauer, Campsen, Hawkins, McMaster and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 17-13-45 SO AS TO PROVIDE THAT WHEN A LAW ENFORCEMENT OFFICER RESPONDS TO A DISTRESS CALL IN A NEIGHBORING JURISDICTION, THE AUTHORITY, RIGHTS, PRIVILEGES, AND IMMUNITIES THAT APPLY TO AN OFFICER WITHIN THE JURISDICTION IN WHICH HE IS EMPLOYED, ARE EXTENDED TO AND INCLUDE THE NEIGHBORING JURISDICTION.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 4, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 4231 -- Reps. Delleney, Canty and D. Smith: A CONCURRENT RESOLUTION TO FIX 12:30 P.M. ON TUESDAY, JUNE 17, 1997, AS THE TIME FOR ELECTING A SUCCESSOR TO A CERTAIN JUDGE OF THE SIXTH JUDICIAL CIRCUIT, WHOSE UNEXPIRED TERM EXPIRES JUNE 30, 1998; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE FAMILY COURT OF THE EIGHTH JUDICIAL CIRCUIT, SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2001; AND TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE FAMILY COURT OF THE FOURTEENTH JUDICIAL CIRCUIT, SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2001.
asks for a Committee of Conference, and has appointed Reps. Delleney, Limbaugh and Haskins of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT Pro Tempore appointed Senators McCONNELL, PASSAILAIGUE and MARTIN of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Columbia, S.C., June 4, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Robinson, Vaughn and Kelley of the Committee of Conference on the part of the House on:
H. 3665 -- Ways and Means Committee: A BILL TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC FINANCE BY ADDING CHAPTER 42 SO AS TO ESTABLISH THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK ACT AND TO PROVIDE FOR ITS POWERS AND DUTIES; TO AUTHORIZE THE BANK TO PROVIDE LOANS AND OTHER FINANCIAL ASSISTANCE TO GOVERNMENT UNITS AND PRIVATE ENTITIES TO FINANCE PUBLIC HIGHWAY AND TRANSIT PROJECTS; TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO FUND THE BANK WITH UP TO FIVE PERCENT OF FUNDS APPROPRIATED FOR THE CONSTRUCTION AND MAINTENANCE OF STATE HIGHWAYS; TO ALLOW FEDERAL GRANTS, LOAN REPAYMENTS, AND OTHER AVAILABLE AMOUNTS TO BE CREDITED TO THE BANK; TO AUTHORIZE LENDING TO AND BORROWING BY GOVERNMENT UNITS AND PRIVATE ENTITLES THROUGH THE BANK; TO AUTHORIZE THE ISSUANCE OF TRANSPORTATION INFRASTRUCTURE BANK REVENUE BONDS; TO AUTHORIZE THE ISSUANCE OF TRANSPORTATION INFRASTRUCTURE BANK GENERAL OBLIGATION BONDS; TO AMEND SECTION 57-3-615, AS AMENDED, RELATING TO TOLL PROJECTS SO AS TO DELETE THE REQUIREMENT THAT CERTAIN TOLL PROJECTS BE INITIATED AS PROVIDED IN CHAPTER 37 OF TITLE 4 AND TO AUTHORIZE THE DEPARTMENT OF TRANSPORTATION TO TOLL INTERSTATE HIGHWAYS AND TO USE THE TOLL FOR PROJECTS OTHER THAN THE TOLLED INTERSTATE HIGHWAY; AND TO AMEND SECTION 56-3-910, AS AMENDED, RELATING TO DISPOSITION OF CERTAIN FEES AND PENALTIES SO AS TO PROVIDE FOR THE PLACEMENT OF THE FEES AND PENALTIES IN THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that the report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
H. 3317 -- Reps. Bailey, Young-Brickell, Allison, Altman, Askins, Barfield, Barrett, Battle, Bauer, Boan, Bowers, Breeland, G. Brown, H. Brown, T. Brown, Carnell, Cato, Chellis, Cobb-Hunter, Dantzler, Davenport, Delleney, Easterday, Edge, Felder, Fleming, Gamble, Gourdine, Hamilton, Harrell, Harrison, Harvin, Haskins, Hawkins, Hinson, Inabinett, Jordan, Keegan, Kennedy, Kinon, Kirsh, Klauber, Knotts, Lanford, Law, Leach, Limehouse, Littlejohn, Lloyd, Maddox, Martin, Mason, McCraw, McLeod, Meacham, Miller, Moody-Lawrence, Mullen, Neal, Neilson, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, D. Smith, J. Smith, R. Smith, Spearman, Stille, Stoddard, Stuart, Townsend, Tripp, Trotter, Webb, Whatley, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-6-405 SO AS TO PROVIDE REIMBURSEMENT TO A MUNICIPALITY OR OTHER GOVERNMENTAL ENTITY FOR COSTS EXPENDED ON A LAW ENFORCEMENT OFFICER ATTENDING THE MANDATORY TRAINING PROGRAM REQUIRED PURSUANT TO THE PROVISIONS OF CHAPTER 6, TITLE 23.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. McKay, Cooper and Koon of the Committee of Conference on the part of the House on:
S. 343 -- Senator Leatherman: A BILL TO AMEND SECTION 12-51-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE AN ALTERNATIVE SITE FOR THE SALE AND TO SPECIFY FORMS OF PAYMENT.
Very respectfully,
Speaker of the House

Received as information.

S. 343 -- Senator Leatherman: A BILL TO AMEND SECTION 12-51-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE AN ALTERNATIVE SITE FOR THE SALE AND TO SPECIFY FORMS OF PAYMENT.

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

Senator LEATHERMAN spoke on the report.

On motion of Senator LEATHERMAN, the Report of the Committee of Conference to S. 343 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
S. 343 -- Senator Leatherman: A BILL TO AMEND SECTION 12-51-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE AN ALTERNATIVE SITE FOR THE SALE AND TO SPECIFY FORMS OF PAYMENT.
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 12-51-50 of the 1976 Code is amended to read:

"Section 12-51-50.   The property duly advertised must be sold by the person officially charged with the collection of delinquent taxes at public auction at the courthouse or other convenient place within the county if designated and advertised on a legal sales date during regular hours for legal tender payable in full by cash, cashier's check, certified check, or money order on the date of the sale. In case the defaulting taxpayer has more than one item advertised to be sold, as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer's delinquent taxes, assessments, penalties, and costs, no further items may be sold."

SECTION   2.   "Section 12-39-250.   (A)   At any time before the tax is paid and upon order of the assessor or Board of Appeals, the county auditor shall correct upon the duplicate for any tax year the assessment of real property on which the valuation of the real property was so excessive as to constitute an invalid assessment. At any time prior to payment of the tax the auditor shall also correct upon the duplicate for any tax year any errors that may be discovered that were made by county or state officers. At any time during the current tax year and before payment of the tax the auditor further shall correct other errors that may appear in the duplicate. At any time before the tax is paid the auditor shall also correct other errors in the duplicate when such errors invalidate or make void the collection of the tax reflected by reason of such error. If the correction results in a reduction or withdrawal of the taxes assessed or levied, the correction shall be in the form of an abatement and a record of such correction and the reasons therefor shall be maintained in an abatement book. When any personal or real property has been entered for taxation in the wrong locality, the auditor shall correct the error at any time prior to payment of the tax and charge such tax in the correct locality. Any corrections made in the duplicate by the auditor shall be entered on both the auditor's and treasurer's duplicate, except that in the case of a reduction of any assessment or tax, the auditor may furnish the treasurer with a certificate of reduction.

(B)   Notwithstanding any other provision of law, the county tax assessor or the County Board of Assessment Appeals, upon application of the taxpayer, must order the County Auditor to make appropriate adjustments in the valuation and assessment of any real property and improvements which have sustained damage as a result of fire provided that the application for correction of the assessment is made prior to payment of the tax."

SECTION   3.   SECTION 1 of this act takes effect January 1, 1998, and SECTION 2 takes effect upon approval by the Governor. /

Amend title to read:
/TO AMEND SECTION 12-51-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE AN ALTERNATIVE SITE FOR THE SALE AND TO SPECIFY FORMS OF PAYMENT; AND TO REQUIRE REASSESSMENT OF REAL PROPERTY DAMAGED BY FIRE, UNDER CERTAIN CIRCUMSTANCES./

/s/Hon. Hugh K. Leatherman        /s/Hon. Woodrow M. McKay
/s/Hon. John W. Matthews, Jr.     /s/Hon. Larry L. Koon
/s/Hon. Ernie Passailaigue        /s/Hon. Daniel T. Cooper
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
S. 343 -- Senator Leatherman: A BILL TO AMEND SECTION 12-51-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF PROPERTY FOR DELINQUENT TAXES, SO AS TO PROVIDE AN ALTERNATIVE SITE FOR THE SALE AND TO SPECIFY FORMS OF PAYMENT.
Very respectfully,
Speaker of the House

Received as information.

H. 3694 -- Ways and Means Committee: A BILL TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED BY THIS ACT.

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. 3694 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3694 -- Ways and Means Committee: A BILL TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED BY THIS ACT.
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:

/SECTION   1.   Item (f) of Section 3 of Act 1377 of 1968, as last amended by Section 5, Act 531 of 1994, is further amended by adding:

"1.   Higher Education Institutions

(a)   Chesterfield-Marlboro Technical College-

Instructional/Library   3,750,000

(b)   The Citadel-

Thompson Hall Replacement   6,282,000

(c)   Clemson University-

Central Energy Facility   10,000,000

(d)   Coastal Carolina-Humanities Building   11,775,000

(e)   College of Charleston-New Library   12,000,000

(f)   Francis Marion University-

Energy Facility Upgrade   875,250

(g)   Florence-Darlington Technical College-

Renovation/Parking Facility   5,700,000

(h)   Greenville Technical College-

Renovation of the Engineering/Technology

Building   5,225,000

(i)   Horry-Georgetown Technical College-

Conway Campus-Library/Support

Services Building   3,250,000

(j)   Horry-Georgetown Technical College-

Georgetown Campus Redesign   750,000

(k)   Midlands Technical College-

Phase II Classroom Building-Airport Campus   9,000,000

(l)   Medical University of South Carolina-

Deferred Maintenance   8,752,086

(m)   Lander University-Renovation of

Barratt Hall and Equipment and Land Acquisition   3,325,000

(n)   Technical College of the Lowcountry-

New Health Sciences (Nursing) Building   1,200,000

(o)   Piedmont Technical College-

Ed. Tech/Student Services/

Administration Building   4,750,000

(p)   South Carolina State University:

(1)   Business School   1,000,000

(2)   Fine Arts Building   2,500,000

(3)   Camp Daniels Renovation   600,000

(4)   Deferred Maintenance-

Steam Distribution System   1,500,000

(q)   State Board for Technical and Comprehensive

Education - All Technical Colleges Statewide

Deferred Maintenance and/or Equipment   10,000,000

(r)   Trident Technical College-

Palmer Campus Renovation   3,100,000

(s)   USC Aiken Campus-

(1)   Ruth Patrick Science Education Center   2,500,000

(2)   New Nursing Building   1,500,000

(t)   USC Beaufort Campus-

Deferred Maintenance/Renovation

Beaufort College Building   1,084,500

(u)   University of South Carolina-Columbia-

(1)   Graduate Sciences Research Center   4,384,065

(2)   Renovation/Deferred Maintenance-

Sloan, Hamilton, LeConte, Petigru,

Callcott, and other historic facilities   14,500,000

(v)   USC Lancaster Campus-

Library Expansion   4,000,000

(w)   USC Salkehatchie Campus-

Deferred Maintenance/Reroofing   535,000

(x)   USC School of Medicine-

Deferred Maintenance/Reroofing   350,000

(y)   USC Spartanburg Campus-

Hodge Center Renovation   1,987,500

(z)   USC Sumter Campus-

Deferred Maintenance   400,000

(aa)   USC Union Campus-

Deferred Maintenance   300,000

(bb)   Winthrop University-

Sciences/Math Building   6,750,000

(cc)   York Technical College-

Arts and Sciences/

Distance Learning Classroom Building   2,500,000

(dd)   Aiken Technical College Information

Technology Training Center   4,300,000

(ee)   Williamsburg County Technical College

Renovations   200,000

2.   Department of Corrections-Construction   51,375,000

3.   Department of Education-

Governor's School for Science and

Mathematics Building   5,000,000

4.   Department of Natural Resources-

Purchase of Jocasee Property   10,000,000

5.   Adjutant General-

Emergency Preparedness Division-

Relocation/Renovation   1,500,000

6.   Clemson PSA-

Agriculture Biotechnology Complex/

Greenhouses   17,000,000

7.   Department of Juvenile Justice

(a)   Coastal Reception and Evaluation

(R&E) Center   4,250,000

(b)   Evaluation Centers Modifications   160,000

(c)   Greenwood Facility Renovation   475,000

(d)   Marine Institute Programs and

Administration Building   500,000

(e)   Emergency Power Generators   750,000

(f)   Prison Industries Building   325,000

8.   ETV-Technology Building   5,500,000

9.   Department of Commerce-

Airport improvements   3,000,000

10.   Anderson County Career Center   _________200,000

250,660,401"

SECTION   2.   Section 4 of Act 1377 of 1968, as last amended by Act 523 of 1992, is further amended to read:

"Section 4.     The aggregate principal indebtedness on account of bonds issued pursuant to this act may not exceed $1,895,539,125.10 $2,146,199,526.10. The limitation imposed by the provisions of this section does not apply to bonds issued on behalf of the Mental Health Commission as provided in Acts 1276 and 1272 of 1970, or to bonds issued on behalf of the Commission on Mental Retardation as provided in Act 1087 of 1970 or to bonds issued on behalf of the South Carolina Fire Academy. The limitation imposed by the provisions of this section is not considered to be an obligation of the contract made between the State and holders of bonds issued pursuant to this act, and the limitation imposed by the provisions of this section may be enlarged by acts amending it or reduced by the application of the Capital Reserve Fund or by amendments of this act. Within these limitations state capital improvement bonds may be issued under the conditions prescribed by this act."

SECTION 3.   Section 2-7-105 of the 1976 Code, as last amended by Act 33 of 1995, is further amended to read:

"Section 2-7-105.   State capital improvement bonds may be authorized by the General Assembly in odd-numbered years. A project may be authorized in the act only for a state agency or institution included in the annual general appropriations act."

SECTION 4.   Chapter 101, Title 59 of the 1976 Code is amended by adding:

"Section 59-101-370.   Technical education colleges receiving funds for new construction projects, not including funds provided for deferred maintenance or renovations, pursuant to authorizations for state capital improvement bonds shall match the state funds provided with at least twenty percent nonstate funds toward the total costs of the project identified in the bond authorization. This match requirement does not apply to any project that received A&E funding prior to July 1, 1995."

SECTION 5.   This act takes effect upon approval by the Governor./

Amend title to conform.

/s/J. Verne Smith                 /s/Henry E. Brown, Jr.
/s/Thomas L. Moore                William D. Boan
/s/Ernie Passailaigue             /s/Thomas G. Keegan
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 3694 -- Ways and Means Committee: A BILL TO AMEND ACT 1377 OF 1968, AS AMENDED, RELATING TO THE ISSUANCE OF STATE CAPITAL IMPROVEMENT BONDS, SO AS TO AUTHORIZE ADDITIONAL PROJECTS AND CONFORM THE AGGREGATE PRINCIPAL INDEBTEDNESS AMOUNT TO THE ADDITIONAL AMOUNTS AUTHORIZED BY THIS ACT.
Very respectfully,
Speaker of the House

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.

At 12:23 P.M., on motion of Senator BRYAN, the Senate receded from business until 12:45 P.M.

At 12:47 P.M., the Senate resumed.

THE SENATE PROCEEDED TO THE ADJOURNED DEBATE.

H. 3919 -- Rep. Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3365 SO AS TO ALLOW A TAXPAYER WHO OPERATES A QUALIFYING DISTRIBUTION FACILITY TO USE INCOME TAX CREDITS AGAINST OTHER STATE TAX LIABILITIES OTHER THAN PROPERTY TAX; TO AMEND SECTION 12-6-3490, RELATING TO THE LICENSE TAX CREDIT FOR CASH PAID TO PROVIDE INFRASTRUCTURE FOR A QUALIFIED PROJECT, SO AS TO ALLOW A PUBLICLY BUILT OFFICE PARK TO QUALIFY AS A QUALIFYING PROJECT AND DEFINE A QUALIFYING PROJECT; AND TO AMEND SECTION 12-14-60, RELATING TO THE ECONOMIC IMPACT ZONE INVESTMENT TAX CREDIT, SO AS TO ALLOW A TEN YEAR CARRY-OVER OF THE CREDIT.

The House returned the Bill with amendments.

The Senate proceeded to a consideration of the Bill. The question being concurrence in the House amendments.

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

Senator JACKSON assumed the Chair at 1:55 P.M.

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

Senator DRUMMOND spoke on the report.

Senator GIESE spoke on the report.

Senator LAND spoke on the report.

Senator LAND moved that Free Conference Powers be granted.

Senator PASSAILAIGUE spoke on the motion.

The PRESIDENT assumed the Chair at 2:34 P.M.

S. 157 -- Senator Passailaigue: A BILL TO AMEND SECTION 12-6-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

Senator PASSAILAIGUE asked unanimous consent to make a motion to reconsider the vote whereby the Bill was continued on Wednesday, June 4, 1997.

Senator WILLIAMS objected.

Senator LAND spoke on the motion.

S. 157 -- Senator Passailaigue: A BILL TO AMEND SECTION 12-6-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO UPDATE THE REFERENCE DATE WHEREBY THIS STATE ADOPTS VARIOUS PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986.

Senator COURSON asked unanimous consent to make a motion to reconsider the vote whereby the Bill was continued.

Senator MOORE objected.

The question then was the motion to request Free Conference Powers.

Free Conference Powers were granted.

Senators PASSAILAIGUE, ROSE, RYBERG, MESCHER, THOMAS, FAIR, WILSON, RAVENEL, PEELER, REESE, GREGORY and RUSSELL desired to be recorded as voting against the granting of Free Conference Powers.

Whereupon, the PRESIDENT Pro Tempore appointed Senators DRUMMOND, LAND and GIESE to the Committee of Free Conference
on the part of the Senate and a message was sent to the House accordingly.

Senator DRUMMOND moved that the Report of the Committee of Free Conference to H. 3400 be adopted.

The Report of the Committee of Free Conference was adopted and incorporated by reference in document (DKA\4676HTC.974).

Senators PASSAILAIGUE, ROSE and REESE desired to be recorded as voting against the adoption of the Free Conference Report.

, and a message was sent to the House accordingly.

Today's vote on granting the budget conferees free conference powers is critical in keeping the faith with senior citizens and ratifying the actions that the Senate took during the original budget debate by placing a complete exemption on income taxes for those South Carolinians who have reached the age of 65. A vote against granting free conference powers is simply confirmation of our original intent. This vote will not affect the current Appropriation Bill (fiscal year '97-'98). By our actions today, we have gone on record in the permanent Journal of the Senate of South Carolina in reaffirming our original commitment to the elderly citizens of this State.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it requested and was granted Free Conference Powers and appointed Reps. H. Brown, Quinn and Harrell of the Committee of Free Confernce on the part of the House on:

Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

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

Very respectfully,
Speaker of the House

The Report of the Committee of Free 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.

H. 3402 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1996-97.

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

Senator DRUMMOND spoke on the report.

On motion of Senator DRUMMOND, the Report of the Committee of Conference to H. 3402 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3402 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1996-97.
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 joint resolution, as and if amended, by striking all after the enacting words and inserting:

/SECTION   1.   In accordance with the provisions of Article III, Section 36(B)(2) and (3), Constitution of South Carolina, 1895, and Section 11-11-320(C) and (D) of the 1976 Code, there is appropriated from the monies available in the Capital Reserve Fund for fiscal year 1996-97 the following amounts:

(1)   Catawba Indian Settlement (5 of 5)   $ 2,500,000

(2)   Debt Service Nonrecurring Payment   13,102,304

(2.1)   Pursuant to the provisions of Article X, Section 13 of the South Carolina Constitution, and notwithstanding any other provision of law, the funds provided herein are to be used for debt service costs.

(3)   Election Commission

(a)   1997 Special Elections (Reapportionment)   250,000

(b)   1998 Statewide Primaries   1,800,000

(4)   Department of Education

(a)   EFA 95-96 Shortfall Reimbursement   1,771,868

(b)   Instructional Materials   5,810,819

(4.1)   Funds appropriated must be allocated to the local school districts for the actual Weighted Pupil count above that projected for FY 95-96. These funds must be distributed to school districts based on the actual final FY 95-96 Weighted Pupil counts.

(5)   State Budget and Control Board

(a)   Operations-Statehouse Renovation

Completion   10,649,400

(b)   Executive Director- Hurricane Fran Federal

Match   625,000

(5.1)   All proceeds from the sale of furnishings from the State House must be used to offset the cost of replacement furnishings. Specifically the proceeds from the sale of members' desks and chairs must be used to offset the cost of like items.

(6)   Legislative Printing and Information

Technology - Equipment   510,000

(7)   Department of Archives and History

(a)   South Carolina History Center Completion   5,600,000

(b)   South Carolina History Center relocation   104,000

(c)   Historic Camden   30,000

(d)   Cleveland School Monument   3,000

(8)   Commission on Higher Education - Nonrecurring

Formula   23,490,806

(9)   Department of Education - Governor's

School for the Arts   400,000

(10)   Commission on Higher Education

Greenville Higher Ed Consortium

Physical Therapy Program   300,000

(11)   Clemson University-Calhoun Mansion   1,200,000

(12)   University of South Carolina

(a)   Columbia-Arena   2,500,000

(b)   Columbia-Law Library   400,000

(13)   Winthrop University - Sims Science Building   1,000,000

(14)   Technical and Comprehensive Education

(a)   Equipment   2,000,000

(b)   Piedmont Tech-Edgefield Facility Renovation   300,000

(15)   Department of Health and Environmental Control

(a)   Beach Renourishment - Folly Beach and

Sullivans Island Projects   300,000

(b)   Beach Renourishment   1,300,000

(c)   Abbeville Human Services Building   70,000

(16)   Department of Mental Health

(a)   Drug pilot   1,000,000

(b)   Patient Fee Account   1,000,000

(16.1)   The Department of Mental Health is authorized to utilize $1,000,000 to implement a one-year study of the impact of three medications on department patients and the mental health system of care. The medications are: Clozaril (Clozapine), Zyprexa (Olanzapene), and Risperdal (Risperidone) or other drugs approved by the department. The department shall administer these funds and design the research with the assistance of the S. C. Public Academic Mental Health Consortium. The research will consider clinical outcomes and cost-effectiveness outcomes. The research will begin July 1, 1997, and will conclude when an adequate sample size has been achieved. A report of the research findings will be made to the Health and Human Services Subcommittee of the House Ways and Means Committee, the Senate Finance Committee, and the Governor. Nothing in this provision shall prohibit the department from making recommendations regarding the effectiveness of other drugs.

(17)   State Library

(a)   Ware Shoals library   200,000

(b)   Williamsburg County library   300,000

(18)   School for the Deaf & Blind

(a)   Fire safety system   687,000

(b)   Independent Living Skills   498,200

(19)   Department of Public Safety - DMV

Computer upgrade   3,000,000

(20)   Department of Natural Resources - Rural

water access construction   100,000

(21)   Department of Labor, Licensing and

Regulation-Fallen Firefighter Memorial   50,000

(22)   University of South Carolina

Beaufort - Penn Center   100,000

(23)   Department of Disabilities and Special Needs

(a)   Emerald Center Renovation   150,000

(b)   Genetic Research Equipment   551,590

(24)   Department of Juvenile Justice

(a)   Activities Building   150,000

(b)   Vehicles   400,000

(25)   Adjutant General

(a)   Repair and Maintenance - Armories   267,316

(b)   Repair and Renovations - McEntire ANG   5,494

(26)   Wil Lou Gray

(a)   Mini buses   32,000

(b)   Fiber Optic cable lines   32,000

(28)   State Ethics Commission - Electronic Filing

Software and Training   5,000

(29)   Forestry Commission - Field Office Computer

Equipment   50,000

(30)   Department of Agriculture - Blackville

Farmer's Market   75,000

Total, Capital Reserve Fund Appropriation   $84,670,797

SECTION   2.   This joint resolution takes effect thirty days after the completion of the 1996-97 fiscal year in accordance with the provisions of Article III, Section 36(B)(3)(a), Constitution of South Carolina, 1895, and Section 11-11-320(D)(1) of the 1976 Code. /

Amend title to conform.

/s/John W. Drummond               /s/Henry E. Brown, Jr.
/s/John C. Land, III              /s/Richard M. Quinn, Jr.
/s/Warren K. Giese                /s/Robert W. Harrell, Jr.
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 3402 -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1996-97.
Very respectfully,
Speaker of the House

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.

At 3:24 P.M., on motion of Senator MOORE, the Senate receded from business not to exceed fifteen minutes.

At 3:42 P.M., the Senate resumed.

Columbia, S.C., June 4, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. R. Smith, Allison and Harrell of the Committee of Conference on the part of the House on:
H. 3819 -- Reps. Harrell, Beck, J. Hines, Walker, Altman, Leach, Mason, Jennings, Simrill, Kinon, Limbaugh, Dantzler, Sandifer, R. Smith, Allison, Campsen, Knotts, Barrett, Seithel, Cobb-Hunter, Cooper, Young, Townsend, Felder, Kennedy, Woodrum, Hinson, Haskins, M. Hines, Harvin, Klauber, Fleming, Kelley, Limehouse, Young-Brickell, Whatley, Wilkins, Boan, McMahand, Littlejohn, Cato, H. Brown, Stuart, Robinson, Phillips, Riser, McKay, Lanford, Keegan, Edge, Jordan, Witherspoon, Gourdine, Hodges, Wilder, J. Smith, Chellis, Baxley, Kirsh and Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 44 TO TITLE 12 SO AS TO ENACT THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997" SO AS TO PROVIDE FOR SIMPLIFICATION OF FEE IN LIEU OF PROPERTY TAX TRANSACTIONS; TO DEFINE CERTAIN TERMS, INCLUDING "ECONOMIC DEVELOPMENT PROPERTY"; TO PROVIDE FOR APPROVAL BY LOCAL COUNTY COUNCILS OF FEE AGREEMENTS; TO PROVIDE FOR CALCULATION OF THE REQUIRED FEE PAYMENTS; TO PROVIDE FOR APPLICATION OF THE FEE TO REPLACEMENT PROPERTY AND A CREDIT AGAINST THE FEE FOR COSTS OF CERTAIN IMPROVEMENTS; TO PROVIDE FOR DISTRIBUTION OF THE FEE, PENALTIES FOR FAILING TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER OR THE FEE AGREEMENTS, CONSEQUENCES OF TRANSFERS OF ECONOMIC DEVELOPMENT PROPERTY AND OF TERMINATION OF FEE AGREEMENTS, AND REQUIREMENTS FOR AFFILIATE SPONSORS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS OF CERTAIN CLASSES OF PROPERTY FROM AD VALOREM TAXATION, SO AS TO INCLUDE ECONOMIC DEVELOPMENT PROPERTY AS AN EXEMPTION.
Very respectfully,
Speaker of the House

Received as information.

S. 254 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR "UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED MOTORIST FUND; TO AMEND SECTION 38-73-470, AS AMENDED, RELATING TO PROPERTY, CASUALTY, AND INLAND MARINE INSURANCE, SURETY RATES, RATE-MAKING ORGANIZATIONS, AND DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT ONE DOLLAR OF THE YEARLY PREMIUM BE PLACED ON DEPOSIT WITH THE STATE TREASURER IN THE "UNINSURED ENFORCEMENT FUND"; TO AMEND SECTION 38-73-910, AS AMENDED, RELATING TO INSURANCE, RATES, RATE-MAKING, RATE FILING, AND NOTICE OF HEARING AS A PREREQUISITE TO GRANTING OF RATE INCREASES AND EXCEPTIONS, SO AS TO, AMONG OTHER THINGS, DELETE "AUTOMOBILE INSURANCE" FROM THE LIST OF LINES OR TYPES OF INSURANCE FOR WHICH IT IS PROVIDED THAT NO INCREASE IN PREMIUM RATES MAY BE GRANTED UNDER CERTAIN CONDITIONS AND CIRCUMSTANCES, AND PROVIDE THAT, EXCEPT AS PROVIDED IN THIS SECTION, OVERALL AVERAGE RATE LEVEL INCREASES OR DECREASES FOR ALL COVERAGES COMBINED OF SEVEN PERCENT ABOVE OR BELOW THE INSURER'S RATES IN EFFECT MAY TAKE EFFECT WITHOUT PRIOR APPROVAL WITH RESPECT TO RATES FOR AUTOMOBILE INSURANCE POLICIES; BY ADDING SECTION 38-73-736 SO AS TO PROVIDE THAT ANY SCHEDULE OF RATES, RATE CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE INSURANCE AS DEFINED IN SECTION 38-77-30 FILED WITH THE DEPARTMENT OF INSURANCE MUST PROVIDE FOR AN APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR THOSE INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF AGE AND OLDER AND WHO QUALIFY AS PROVIDED IN SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS AMENDED, RELATING TO THE DECLARATION OF THE PURPOSE OF THE AUTOMOBILE INSURANCE LAW, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ONE OF THE PURPOSES IS TO PROVIDE FOR AN ASSIGNED RISK PLAN KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN" FOR CERTAIN PERSONS; TO AMEND SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN DEFINITIONS AND PROVIDE DEFINITIONS FOR "CANCELLATION", "FACILITY PHYSICAL DAMAGE RATE", "INSTITUTIONAL SOURCE", "INSURER SUPPORT ORGANIZATION", AND "POLICY OF AUTOMOBILE INSURANCE"; BY ADDING SECTION 38-77-596 SO AS TO PROVIDE THAT THE GOVERNING BOARD OF THE SOUTH CAROLINA REINSURANCE FACILITY ANNUALLY SHALL DEVELOP AND FILE PRIVATE PASSENGER AUTOMOBILE LOSS COMPONENTS FOR AUTOMOBILE INSURANCE COVERAGES BASED ON THE TOTAL EXPERIENCE OF ALL RISKS CEDED TO THE FACILITY WHICH ARE ACTUARIALLY SOUND AND SUPPORTED BY STATISTICAL EVIDENCE; TO AMEND SECTION 38-77-112, AS AMENDED, RELATING TO THE AUTOMOBILE INSURANCE LAW, THE REQUIREMENT THAT AN APPLICANT FOR, OR POLICYHOLDER OF, SUCH INSURANCE HAVE A DRIVER'S LICENSE AND EXCEPTIONS SO AS TO, AMONG OTHER THINGS, REQUIRE THAT AT THE TIME OF APPLICATION AN INSURER OR AN AGENT RETAIN FOR A PERIOD OF THREE YEARS THE DRIVER'S LICENSE NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED COVERAGE AND FURNISH THIS INFORMATION TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE UPON REQUEST; TO AMEND SECTION 38-77-120, AS AMENDED, RELATING TO REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE REQUIRED NOTICE MUST PROVIDE FOR THE NOTIFICATION REQUIRED BY SECTION 38-77-390(B) AND PROVIDE FOR CERTAIN EXCEPTIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-121 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ANY APPLICATION FOR THE ORIGINAL ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF ANY MOTOR VEHICLE AS DEFINED IN SECTION 38-77-30 MUST HAVE A CERTAIN STATEMENT PRINTED ON OR ATTACHED TO THE FIRST PAGE OF THE APPLICATION FORM; BY ADDING SECTION 38-77-122 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN AUTOMOBILE INSURANCE POLICY AS DEFINED IN SECTION 38-77-30 BECAUSE OF THE APPLICANT'S AGE, SEX, LOCATION OF RESIDENCE IN SOUTH CAROLINA, RACE, COLOR, CREED, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, INCOME LEVEL, PREVIOUS REFUSAL OF AUTOMOBILE INSURANCE BY ANOTHER INSURER, PRIOR PURCHASE OF INSURANCE THROUGH THE SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN, OR LAWFUL OCCUPATION, INCLUDING MILITARY SERVICE; BY ADDING SECTION 38-77-123 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER SHALL REFUSE TO RENEW AN AUTOMOBILE INSURANCE POLICY BECAUSE OF CERTAIN SPECIFIED FACTORS AND THAT NOTHING IN THIS SECTION REQUIRES AN INSURER TO RENEW A POLICY OF AUTOMOBILE INSURANCE WHERE THE INSURED'S OCCUPATION HAS CHANGED SO AS TO MATERIALLY INCREASE THE RISK; BY ADDING SECTION 38-77-124 SO AS TO PROVIDE THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE OR FAIL TO RENEW A POLICY OF MOTOR VEHICLE LIABILITY INSURANCE SOLELY BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE INSURED SO LONG AS THE MOTOR VEHICLE IS LICENSED; BY ADDING SECTION 38-77-141 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO NEW POLICY OR ORIGINAL PREMIUM NOTICE OF INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED UNLESS IT CONTAINS A CERTAIN STATEMENT PRINTED IN BOLDFACE TYPE OR UNLESS THAT STATEMENT IS ATTACHED TO THE FRONT OF OR IS ENCLOSED WITH THE POLICY OR PREMIUM NOTICE; BY ADDING SECTION 38-77-142 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO POLICY OR CONTRACT OF BODILY INJURED OR PROPERTY DAMAGE LIABILITY INSURANCE COVERING LIABILITY ARISING FROM THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED IN SOUTH CAROLINA TO THE OWNER OF THE VEHICLE OR MAY BE ISSUED OR DELIVERED BY AN INSURER LICENSED IN SOUTH CAROLINA UPON A MOTOR VEHICLE THAT IS PRINCIPALLY GARAGED, DOCKED, OR USED IN THIS STATE UNLESS THE POLICY CONTAINS A PROVISION INSURING THE NAMED INSURED AND ANY OTHER PERSON USING OR RESPONSIBLE FOR THE USE OF THE MOTOR VEHICLE WITH THE EXPRESSED OR IMPLIED CONSENT OF THE NAMED INSURED AGAINST LIABILITY FOR DEATH OR INJURY SUSTAINED OR LOSS OR DAMAGE INCURRED WITHIN THE COVERAGE OF THE POLICY OR CONTRACT AS A RESULT OF NEGLIGENCE IN THE OPERATION OR USE OF THE VEHICLE BY THE NAMED INSURED OR BY ANY SUCH PERSON; BY ADDING SECTION 38-77-143 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT A POLICY OR CONTRACT OF BODILY INJURY OR PROPERTY DAMAGE LIABILITY INSURANCE RELATING TO THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE EXCLUDES COVERAGE TO PERSONS OTHER THAN THE NAMED INSURED OR DIRECTORS, STOCKHOLDERS, PARTNERS, AGENTS, OR EMPLOYEES OF THE NAMED INSURED, OR RESIDENTS OF THE HOUSEHOLD OF EITHER OF THESE GROUPS WHILE THOSE PERSONS ARE EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING, OR PARKING MOTOR VEHICLES IF THERE IS ANY OTHER VALID OR COLLECTIBLE INSURANCE APPLICABLE TO THE SAME LOSS COVERING THE PERSONS UNDER A POLICY WITH LIMITS AT LEAST EQUAL TO THE FINANCIAL RESPONSIBILITY REQUIREMENTS SPECIFIED IN SECTION 38-77-140; BY ADDING SECTION 38-77-151 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ALL FUNDS COLLECTED BY THE DIRECTOR OF THE DEPARTMENT OF REVENUE UNDER CHAPTER 10, TITLE 56 MUST BE PLACED ON DEPOSIT WITH THE STATE TREASURER AND HELD IN A SPECIAL FUND TO BE KNOWN AS THE "UNINSURED MOTORISTS FUND" TO BE DISBURSED AS PROVIDED BY LAW; BY ADDING SECTION 38-77-154 SO AS TO PROVIDE THAT THE UNINSURED MOTORISTS FUND SHALL BE UNDER THE SUPERVISION AND CONTROL OF THE DEPARTMENT OF INSURANCE, REQUIRE PAYMENTS FROM THIS FUND TO BE MADE ON WARRANTS OF THE COMPTROLLER GENERAL ISSUED ON VOUCHERS SIGNED BY A PERSON DESIGNATED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, AND SET FORTH THE PURPOSE OF THE FUND; BY ADDING SECTION 38-77-155 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE SHALL DISTRIBUTE MONIES ANNUALLY FROM THE UNINSURED MOTORISTS FUND AMONG THE SEVERAL INSURERS WRITING MOTOR VEHICLE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE ON MOTOR VEHICLES REGISTERED IN SOUTH CAROLINA; TO AMEND SECTION 38-77-140, RELATING TO BODILY INJURY AND PROPERTY DAMAGE LIMITS UNDER THE AUTOMOBILE INSURANCE LAW, SO AS TO RAISE THE MINIMUM LIMITS OF COVERAGE FOR INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND SECTION 38-77-150, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF AN ACTION BY THE INSURER, SO AS TO PROVIDE FOR A MINIMUM OF TEN THOUSAND RATHER THAN FIVE THOUSAND DOLLARS COVERAGE FOR INJURY TO OR DESTRUCTION OF THE PROPERTY OF THE INSURED IN ANY ONE ACCIDENT, AND PROVIDE THAT BENEFITS PAID PURSUANT TO THIS SECTION ARE SUBJECT TO SUBROGATION AND ASSIGNMENT IF AN UNINSURED MOTORIST HAS SELECTED THE OPTION TO BE UNINSURED BY PAYING THE FEE PURSUANT TO SECTION 56-10-510; TO AMEND SECTION 38-77-350, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND THE FORM REQUIRED TO BE USED IN THE OFFERING OF OPTIONAL COVERAGES, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION REGARDING POLICIES OF INSURANCE OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR THE REINSURANCE FACILITY TO REPLACE POLICIES PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER AND CONTAINING THE SAME COVERAGE LIMITS AS THE FORMER POLICIES; BY ADDING SECTION 38-77-370 SO AS TO PROVIDE THAT IF AN INDIVIDUAL, AFTER PROPER IDENTIFICATION, SUBMITS A WRITTEN REQUEST TO AN INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL THAT IS REASONABLY DESCRIBED BY THE INDIVIDUAL AND ABLE TO BE LOCATED AND RETRIEVED BY THE INSURANCE-SUPPORT ORGANIZATION, THE INSURANCE-SUPPORT ORGANIZATION, WITHIN THIRTY BUSINESS DAYS FROM THE DATE THE REQUEST IS RECEIVED, SHALL TAKE CERTAIN ACTION, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; BY ADDING SECTION 38-77-390 SO AS TO PROVIDE THAT IN THE EVENT OF A CANCELLATION OR NONRENEWAL OF AN AUTOMOBILE INSURANCE POLICY, INCLUDING CANCELLATIONS OR NONRENEWALS THAT INVOLVE POLICIES REFERRED TO IN SECTION 38-77-120, THE INSURER OR AGENT RESPONSIBLE FOR THE CANCELLATION OR NONRENEWAL SHALL GIVE CERTAIN WRITTEN NOTICE IN A FORM APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO THE APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED FOR COVERAGE, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; TO AMEND SECTION 38-77-530, AS AMENDED, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE PLAN MUST COMMENCE RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR THROUGH THE FACILITY, THAT THE SURCHARGE MUST BE A PERCENTAGE OF THE PREMIUM ADOPTED BY THE GOVERNING BOARD OF THE FACILITY, THAT THE CHARGES DETERMINED ON THE BASIS OF THE SURCHARGE MUST BE DISPLAYED AS A PART OF THE APPLICABLE PREMIUM CHARGES, AND THAT THE FACILITY SHALL CONVERT TO THE PERCENTAGE-OF-PREMIUM BASIS OF RECOUPMENT BY MARCH 1, 1998; TO AMEND SECTION 38-77-590, AS AMENDED, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND SECTION 38-77-595, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND CONDITIONS FOR DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT FOR "DESIGNATED PRODUCER", SO AS TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT PROVISIONS OF LAW CONCERNING "ASSIGNMENT OF RISKS"; TO PROVIDE THAT BEGINNING MARCH 1, 1998, INSURERS MAY NONRENEW A POLICY OF INSURANCE THAT THEY HAVE CURRENTLY CEDED TO THE SOUTH CAROLINA REINSURANCE FACILITY, AND PROVIDE THAT THIS PROVISION DOES NOT APPLY TO BUSINESS WRITTEN THROUGH THE DESIGNATED PRODUCERS; TO REPEAL ARTICLE 5, CHAPTER 77, TITLE 38, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND DESIGNATED PRODUCERS, EFFECTIVE JANUARY 1, 2005; TO REPEAL SECTION 38-73-450, RELATING TO THE FAIRNESS OF AUTOMOBILE INSURANCE RATES OR PREMIUM CHARGES AND BURDEN ON THE INSURER TO PROVE FAIRNESS, SECTION 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, SECTION 38-73-457, RELATING TO THE REQUIREMENT UPON AUTOMOBILE INSURERS AND RATING ORGANIZATIONS TO FILE INFORMATION ON BASE RATES, SECTION 38-73-460, RELATING TO THE EFFECT OF GAINS AND LOSSES INCURRED BY MEMBER INSURERS OF THE REINSURANCE FACILITY ON RATES FOR AUTOMOBILE INSURANCE, SECTION 38-73-465, RELATING TO AUTOMOBILE INSURANCE AND UNFAIRLY DISCRIMINATORY, EXCESSIVE, OR UNREASONABLE PROFITS OR RATES, SECTION 38-73-720, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE POWER TO ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS, SECTION 38-73-730, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND RISK CLASSIFICATION PLANS, SECTION 38-73-731, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, REMOVAL FROM THE YOUTHFUL DRIVER CLASSIFICATION, AND REFUND OF EXCESS PREMIUM PAID, SECTION 38-73-735, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE PLAN FOR CREDITS AND DISCOUNTS, SECTION 38-73-750, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS FILE WITH THE STATE RATING AND STATISTICAL DIVISION THEIR PLANS OR SYSTEMS FOR ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE RISKS AND THE CLASSES OF RISKS THEREUNDER, SECTION 38-73-760, RELATING TO INSURANCE, THE STATE-RATING AND STATISTICAL DIVISION, AND UNIFORM STATISTICAL PLANS, SECTION 38-73-770, RELATING TO INSURANCE AND THE REQUIREMENT THAT EVERY CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF INSURANCE BE SO STRUCTURED AS TO PRODUCE RATES OR PREMIUM CHARGES WHICH ARE ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY DISCRIMINATORY, SECTION 38-73-775, RELATING TO THE ANNUAL FILING OF THE PHYSICAL DAMAGE LOSS COMPONENT BY THE SOUTH CAROLINA REINSURANCE FACILITY, SECTION 38-77-110, RELATING TO THE "MANDATE TO WRITE", AUTOMOBILE INSURANCE COVERAGE, THE REQUIREMENT UPON INSURERS TO INSURE, AND EXCEPTIONS, SECTION 38-77-111, RELATING TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, SECTION 38-77-115, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE SIGNS REQUIRED IN AN AGENT'S PLACE OF BUSINESS, SECTION 38-77-145, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE PROVISION THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT MANDATED, SECTION 38-77-285, RELATING TO THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE COVERAGES ARE TO BE IN ONE POLICY, SECTION 38-77-360, RELATING TO THE PROHIBITION AGAINST AN INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER CERTAIN FIRST-OFFENSE VIOLATIONS, SECTION 38-77-600, RELATING TO AUTOMOBILE INSURANCE AND THE REINSURANCE FACILITY RECOUPMENT CHARGE, SECTION 38-77-605, RELATING TO THE REQUIREMENT THAT THE REINSURANCE FACILITY RECOUPMENT CHARGE MUST BE DISPLAYED IN A CERTAIN MANNER IN INSURANCE PREMIUM NOTICES OR BILLS, SECTION 38-77-610, RELATING TO AUTOMOBILE INSURANCE AND THE FILING OF REINSURANCE FACILITY RECOUPMENT CHARGES, SECTION 38-77-620, RELATING TO AUTOMOBILE INSURANCE AND THE INCLUSION OF FACILITY RECOUPMENT CHARGES IN AUTOMOBILE INSURANCE RATES, SECTION 38-77-625, RELATING TO THE PROVISION THAT IF AN INSURED IS INVOLVED IN A MOTOR VEHICLE ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS REINSURANCE FACILITY RECOUPMENT CHARGE MAY NOT BE INCREASED BY HIS INSURER BECAUSE OF THIS OCCURRENCE, AND ARTICLE 9, CHAPTER 77, TITLE 38, RELATING TO THE AUTOMOBILE INSURANCE LAW AND CERTAIN UNLAWFUL ACTS; AND TO PROVIDE THAT NONRENEWAL NOTICES MAY BE SENT BEFORE MARCH 1, 1998, FOR AUTOMOBILE INSURANCE POLICIES RENEWING ON OR AFTER THAT DATE.

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators McCONNELL, COURTNEY and PASSAILAIGUE to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it requested and was granted Free Conference Powers and has appointed Reps. Cato, Kirsh and Seithel of the Committee of Free Conference on the part of the House on:
S. 254 -- Banking and Insurance Committee: RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBLITY ACT. (Abbreviated Title)
Very respectfully,
Speaker of the House

S. 254 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR "UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED MOTORIST FUND; TO AMEND SECTION 38-73-470, AS AMENDED, RELATING TO PROPERTY, CASUALTY, AND INLAND MARINE INSURANCE, SURETY RATES, RATE-MAKING ORGANIZATIONS, AND DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT ONE DOLLAR OF THE YEARLY PREMIUM BE PLACED ON DEPOSIT WITH THE STATE TREASURER IN THE "UNINSURED ENFORCEMENT FUND"; TO AMEND SECTION 38-73-910, AS AMENDED, RELATING TO INSURANCE, RATES, RATE-MAKING, RATE FILING, AND NOTICE OF HEARING AS A PREREQUISITE TO GRANTING OF RATE INCREASES AND EXCEPTIONS, SO AS TO, AMONG OTHER THINGS, DELETE "AUTOMOBILE INSURANCE" FROM THE LIST OF LINES OR TYPES OF INSURANCE FOR WHICH IT IS PROVIDED THAT NO INCREASE IN PREMIUM RATES MAY BE GRANTED UNDER CERTAIN CONDITIONS AND CIRCUMSTANCES, AND PROVIDE THAT, EXCEPT AS PROVIDED IN THIS SECTION, OVERALL AVERAGE RATE LEVEL INCREASES OR DECREASES FOR ALL COVERAGES COMBINED OF SEVEN PERCENT ABOVE OR BELOW THE INSURER'S RATES IN EFFECT MAY TAKE EFFECT WITHOUT PRIOR APPROVAL WITH RESPECT TO RATES FOR AUTOMOBILE INSURANCE POLICIES; BY ADDING SECTION 38-73-736 SO AS TO PROVIDE THAT ANY SCHEDULE OF RATES, RATE CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE INSURANCE AS DEFINED IN SECTION 38-77-30 FILED WITH THE DEPARTMENT OF INSURANCE MUST PROVIDE FOR AN APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR THOSE INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF AGE AND OLDER AND WHO QUALIFY AS PROVIDED IN SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS AMENDED, RELATING TO THE DECLARATION OF THE PURPOSE OF THE AUTOMOBILE INSURANCE LAW, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ONE OF THE PURPOSES IS TO PROVIDE FOR AN ASSIGNED RISK PLAN KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN" FOR CERTAIN PERSONS; TO AMEND SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN DEFINITIONS AND PROVIDE DEFINITIONS FOR "CANCELLATION", "FACILITY PHYSICAL DAMAGE RATE", "INSTITUTIONAL SOURCE", "INSURER SUPPORT ORGANIZATION", AND "POLICY OF AUTOMOBILE INSURANCE"; BY ADDING SECTION 38-77-596 SO AS TO PROVIDE THAT THE GOVERNING BOARD OF THE SOUTH CAROLINA REINSURANCE FACILITY ANNUALLY SHALL DEVELOP AND FILE PRIVATE PASSENGER AUTOMOBILE LOSS COMPONENTS FOR AUTOMOBILE INSURANCE COVERAGES BASED ON THE TOTAL EXPERIENCE OF ALL RISKS CEDED TO THE FACILITY WHICH ARE ACTUARIALLY SOUND AND SUPPORTED BY STATISTICAL EVIDENCE; TO AMEND SECTION 38-77-112, AS AMENDED, RELATING TO THE AUTOMOBILE INSURANCE LAW, THE REQUIREMENT THAT AN APPLICANT FOR, OR POLICYHOLDER OF, SUCH INSURANCE HAVE A DRIVER'S LICENSE AND EXCEPTIONS SO AS TO, AMONG OTHER THINGS, REQUIRE THAT AT THE TIME OF APPLICATION AN INSURER OR AN AGENT RETAIN FOR A PERIOD OF THREE YEARS THE DRIVER'S LICENSE NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED COVERAGE AND FURNISH THIS INFORMATION TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE UPON REQUEST; TO AMEND SECTION 38-77-120, AS AMENDED, RELATING TO REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE REQUIRED NOTICE MUST PROVIDE FOR THE NOTIFICATION REQUIRED BY SECTION 38-77-390(B) AND PROVIDE FOR CERTAIN EXCEPTIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-121 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ANY APPLICATION FOR THE ORIGINAL ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF ANY MOTOR VEHICLE AS DEFINED IN SECTION 38-77-30 MUST HAVE A CERTAIN STATEMENT PRINTED ON OR ATTACHED TO THE FIRST PAGE OF THE APPLICATION FORM; BY ADDING SECTION 38-77-122 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN AUTOMOBILE INSURANCE POLICY AS DEFINED IN SECTION 38-77-30 BECAUSE OF THE APPLICANT'S AGE, SEX, LOCATION OF RESIDENCE IN SOUTH CAROLINA, RACE, COLOR, CREED, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, INCOME LEVEL, PREVIOUS REFUSAL OF AUTOMOBILE INSURANCE BY ANOTHER INSURER, PRIOR PURCHASE OF INSURANCE THROUGH THE SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN, OR LAWFUL OCCUPATION, INCLUDING MILITARY SERVICE; BY ADDING SECTION 38-77-123 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER SHALL REFUSE TO RENEW AN AUTOMOBILE INSURANCE POLICY BECAUSE OF CERTAIN SPECIFIED FACTORS AND THAT NOTHING IN THIS SECTION REQUIRES AN INSURER TO RENEW A POLICY OF AUTOMOBILE INSURANCE WHERE THE INSURED'S OCCUPATION HAS CHANGED SO AS TO MATERIALLY INCREASE THE RISK; BY ADDING SECTION 38-77-124 SO AS TO PROVIDE THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE OR FAIL TO RENEW A POLICY OF MOTOR VEHICLE LIABILITY INSURANCE SOLELY BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE INSURED SO LONG AS THE MOTOR VEHICLE IS LICENSED; BY ADDING SECTION 38-77-141 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO NEW POLICY OR ORIGINAL PREMIUM NOTICE OF INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED UNLESS IT CONTAINS A CERTAIN STATEMENT PRINTED IN BOLDFACE TYPE OR UNLESS THAT STATEMENT IS ATTACHED TO THE FRONT OF OR IS ENCLOSED WITH THE POLICY OR PREMIUM NOTICE; BY ADDING SECTION 38-77-142 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO POLICY OR CONTRACT OF BODILY INJURED OR PROPERTY DAMAGE LIABILITY INSURANCE COVERING LIABILITY ARISING FROM THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED IN SOUTH CAROLINA TO THE OWNER OF THE VEHICLE OR MAY BE ISSUED OR DELIVERED BY AN INSURER LICENSED IN SOUTH CAROLINA UPON A MOTOR VEHICLE THAT IS PRINCIPALLY GARAGED, DOCKED, OR USED IN THIS STATE UNLESS THE POLICY CONTAINS A PROVISION INSURING THE NAMED INSURED AND ANY OTHER PERSON USING OR RESPONSIBLE FOR THE USE OF THE MOTOR VEHICLE WITH THE EXPRESSED OR IMPLIED CONSENT OF THE NAMED INSURED AGAINST LIABILITY FOR DEATH OR INJURY SUSTAINED OR LOSS OR DAMAGE INCURRED WITHIN THE COVERAGE OF THE POLICY OR CONTRACT AS A RESULT OF NEGLIGENCE IN THE OPERATION OR USE OF THE VEHICLE BY THE NAMED INSURED OR BY ANY SUCH PERSON; BY ADDING SECTION 38-77-143 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT A POLICY OR CONTRACT OF BODILY INJURY OR PROPERTY DAMAGE LIABILITY INSURANCE RELATING TO THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE EXCLUDES COVERAGE TO PERSONS OTHER THAN THE NAMED INSURED OR DIRECTORS, STOCKHOLDERS, PARTNERS, AGENTS, OR EMPLOYEES OF THE NAMED INSURED, OR RESIDENTS OF THE HOUSEHOLD OF EITHER OF THESE GROUPS WHILE THOSE PERSONS ARE EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING, OR PARKING MOTOR VEHICLES IF THERE IS ANY OTHER VALID OR COLLECTIBLE INSURANCE APPLICABLE TO THE SAME LOSS COVERING THE PERSONS UNDER A POLICY WITH LIMITS AT LEAST EQUAL TO THE FINANCIAL RESPONSIBILITY REQUIREMENTS SPECIFIED IN SECTION 38-77-140; BY ADDING SECTION 38-77-151 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ALL FUNDS COLLECTED BY THE DIRECTOR OF THE DEPARTMENT OF REVENUE UNDER CHAPTER 10, TITLE 56 MUST BE PLACED ON DEPOSIT WITH THE STATE TREASURER AND HELD IN A SPECIAL FUND TO BE KNOWN AS THE "UNINSURED MOTORISTS FUND" TO BE DISBURSED AS PROVIDED BY LAW; BY ADDING SECTION 38-77-154 SO AS TO PROVIDE THAT THE UNINSURED MOTORISTS FUND SHALL BE UNDER THE SUPERVISION AND CONTROL OF THE DEPARTMENT OF INSURANCE, REQUIRE PAYMENTS FROM THIS FUND TO BE MADE ON WARRANTS OF THE COMPTROLLER GENERAL ISSUED ON VOUCHERS SIGNED BY A PERSON DESIGNATED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, AND SET FORTH THE PURPOSE OF THE FUND; BY ADDING SECTION 38-77-155 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE SHALL DISTRIBUTE MONIES ANNUALLY FROM THE UNINSURED MOTORISTS FUND AMONG THE SEVERAL INSURERS WRITING MOTOR VEHICLE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE ON MOTOR VEHICLES REGISTERED IN SOUTH CAROLINA; TO AMEND SECTION 38-77-140, RELATING TO BODILY INJURY AND PROPERTY DAMAGE LIMITS UNDER THE AUTOMOBILE INSURANCE LAW, SO AS TO RAISE THE MINIMUM LIMITS OF COVERAGE FOR INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND SECTION 38-77-150, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF AN ACTION BY THE INSURER, SO AS TO PROVIDE FOR A MINIMUM OF TEN THOUSAND RATHER THAN FIVE THOUSAND DOLLARS COVERAGE FOR INJURY TO OR DESTRUCTION OF THE PROPERTY OF THE INSURED IN ANY ONE ACCIDENT, AND PROVIDE THAT BENEFITS PAID PURSUANT TO THIS SECTION ARE SUBJECT TO SUBROGATION AND ASSIGNMENT IF AN UNINSURED MOTORIST HAS SELECTED THE OPTION TO BE UNINSURED BY PAYING THE FEE PURSUANT TO SECTION 56-10-510; TO AMEND SECTION 38-77-350, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND THE FORM REQUIRED TO BE USED IN THE OFFERING OF OPTIONAL COVERAGES, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION REGARDING POLICIES OF INSURANCE OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR THE REINSURANCE FACILITY TO REPLACE POLICIES PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER AND CONTAINING THE SAME COVERAGE LIMITS AS THE FORMER POLICIES; BY ADDING SECTION 38-77-370 SO AS TO PROVIDE THAT IF AN INDIVIDUAL, AFTER PROPER IDENTIFICATION, SUBMITS A WRITTEN REQUEST TO AN INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL THAT IS REASONABLY DESCRIBED BY THE INDIVIDUAL AND ABLE TO BE LOCATED AND RETRIEVED BY THE INSURANCE-SUPPORT ORGANIZATION, THE INSURANCE-SUPPORT ORGANIZATION, WITHIN THIRTY BUSINESS DAYS FROM THE DATE THE REQUEST IS RECEIVED, SHALL TAKE CERTAIN ACTION, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; BY ADDING SECTION 38-77-390 SO AS TO PROVIDE THAT IN THE EVENT OF A CANCELLATION OR NONRENEWAL OF AN AUTOMOBILE INSURANCE POLICY, INCLUDING CANCELLATIONS OR NONRENEWALS THAT INVOLVE POLICIES REFERRED TO IN SECTION 38-77-120, THE INSURER OR AGENT RESPONSIBLE FOR THE CANCELLATION OR NONRENEWAL SHALL GIVE CERTAIN WRITTEN NOTICE IN A FORM APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO THE APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED FOR COVERAGE, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; TO AMEND SECTION 38-77-530, AS AMENDED, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE PLAN MUST COMMENCE RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR THROUGH THE FACILITY, THAT THE SURCHARGE MUST BE A PERCENTAGE OF THE PREMIUM ADOPTED BY THE GOVERNING BOARD OF THE FACILITY, THAT THE CHARGES DETERMINED ON THE BASIS OF THE SURCHARGE MUST BE DISPLAYED AS A PART OF THE APPLICABLE PREMIUM CHARGES, AND THAT THE FACILITY SHALL CONVERT TO THE PERCENTAGE-OF-PREMIUM BASIS OF RECOUPMENT BY MARCH 1, 1998; TO AMEND SECTION 38-77-590, AS AMENDED, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND SECTION 38-77-595, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND CONDITIONS FOR DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT FOR "DESIGNATED PRODUCER", SO AS TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT PROVISIONS OF LAW CONCERNING "ASSIGNMENT OF RISKS"; TO PROVIDE THAT BEGINNING MARCH 1, 1998, INSURERS MAY NONRENEW A POLICY OF INSURANCE THAT THEY HAVE CURRENTLY CEDED TO THE SOUTH CAROLINA REINSURANCE FACILITY, AND PROVIDE THAT THIS PROVISION DOES NOT APPLY TO BUSINESS WRITTEN THROUGH THE DESIGNATED PRODUCERS; TO REPEAL ARTICLE 5, CHAPTER 77, TITLE 38, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND DESIGNATED PRODUCERS, EFFECTIVE JANUARY 1, 2005; TO REPEAL SECTION 38-73-450, RELATING TO THE FAIRNESS OF AUTOMOBILE INSURANCE RATES OR PREMIUM CHARGES AND BURDEN ON THE INSURER TO PROVE FAIRNESS, SECTION 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, SECTION 38-73-457, RELATING TO THE REQUIREMENT UPON AUTOMOBILE INSURERS AND RATING ORGANIZATIONS TO FILE INFORMATION ON BASE RATES, SECTION 38-73-460, RELATING TO THE EFFECT OF GAINS AND LOSSES INCURRED BY MEMBER INSURERS OF THE REINSURANCE FACILITY ON RATES FOR AUTOMOBILE INSURANCE, SECTION 38-73-465, RELATING TO AUTOMOBILE INSURANCE AND UNFAIRLY DISCRIMINATORY, EXCESSIVE, OR UNREASONABLE PROFITS OR RATES, SECTION 38-73-720, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE POWER TO ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS, SECTION 38-73-730, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND RISK CLASSIFICATION PLANS, SECTION 38-73-731, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, REMOVAL FROM THE YOUTHFUL DRIVER CLASSIFICATION, AND REFUND OF EXCESS PREMIUM PAID, SECTION 38-73-735, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE PLAN FOR CREDITS AND DISCOUNTS, SECTION 38-73-750, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS FILE WITH THE STATE RATING AND STATISTICAL DIVISION THEIR PLANS OR SYSTEMS FOR ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE RISKS AND THE CLASSES OF RISKS THEREUNDER, SECTION 38-73-760, RELATING TO INSURANCE, THE STATE-RATING AND STATISTICAL DIVISION, AND UNIFORM STATISTICAL PLANS, SECTION 38-73-770, RELATING TO INSURANCE AND THE REQUIREMENT THAT EVERY CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF INSURANCE BE SO STRUCTURED AS TO PRODUCE RATES OR PREMIUM CHARGES WHICH ARE ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY DISCRIMINATORY, SECTION 38-73-775, RELATING TO THE ANNUAL FILING OF THE PHYSICAL DAMAGE LOSS COMPONENT BY THE SOUTH CAROLINA REINSURANCE FACILITY, SECTION 38-77-110, RELATING TO THE "MANDATE TO WRITE", AUTOMOBILE INSURANCE COVERAGE, THE REQUIREMENT UPON INSURERS TO INSURE, AND EXCEPTIONS, SECTION 38-77-111, RELATING TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, SECTION 38-77-115, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE SIGNS REQUIRED IN AN AGENT'S PLACE OF BUSINESS, SECTION 38-77-145, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE PROVISION THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT MANDATED, SECTION 38-77-285, RELATING TO THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE COVERAGES ARE TO BE IN ONE POLICY, SECTION 38-77-360, RELATING TO THE PROHIBITION AGAINST AN INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER CERTAIN FIRST-OFFENSE VIOLATIONS, SECTION 38-77-600, RELATING TO AUTOMOBILE INSURANCE AND THE REINSURANCE FACILITY RECOUPMENT CHARGE, SECTION 38-77-605, RELATING TO THE REQUIREMENT THAT THE REINSURANCE FACILITY RECOUPMENT CHARGE MUST BE DISPLAYED IN A CERTAIN MANNER IN INSURANCE PREMIUM NOTICES OR BILLS, SECTION 38-77-610, RELATING TO AUTOMOBILE INSURANCE AND THE FILING OF REINSURANCE FACILITY RECOUPMENT CHARGES, SECTION 38-77-620, RELATING TO AUTOMOBILE INSURANCE AND THE INCLUSION OF FACILITY RECOUPMENT CHARGES IN AUTOMOBILE INSURANCE RATES, SECTION 38-77-625, RELATING TO THE PROVISION THAT IF AN INSURED IS INVOLVED IN A MOTOR VEHICLE ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS REINSURANCE FACILITY RECOUPMENT CHARGE MAY NOT BE INCREASED BY HIS INSURER BECAUSE OF THIS OCCURRENCE, AND ARTICLE 9, CHAPTER 77, TITLE 38, RELATING TO THE AUTOMOBILE INSURANCE LAW AND CERTAIN UNLAWFUL ACTS; AND TO PROVIDE THAT NONRENEWAL NOTICES MAY BE SENT BEFORE MARCH 1, 1998, FOR AUTOMOBILE INSURANCE POLICIES RENEWING ON OR AFTER THAT DATE.

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

Senator McCONNELL spoke on the report.

On motion of Senator McCONNELL, the Report of the Committee of Free Conference to S. 254 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 254 -- Banking and Insurance Committee: A BILL TO AMEND SECTION 56-9-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MOTOR VEHICLE FINANCIAL RESPONSIBILITY ACT AND DEFINITIONS, SO AS TO PROVIDE A DEFINITION FOR "UNINSURED MOTORIST FUND"; TO AMEND CHAPTER 10, TITLE 56, RELATING TO MOTOR VEHICLE REGISTRATION AND FINANCIAL SECURITY, BY ADDING ARTICLE 5 SO AS TO PROVIDE FOR THE ESTABLISHMENT OF AN UNINSURED MOTORIST FUND; TO AMEND SECTION 38-73-470, AS AMENDED, RELATING TO PROPERTY, CASUALTY, AND INLAND MARINE INSURANCE, SURETY RATES, RATE-MAKING ORGANIZATIONS, AND DISPOSITION OF THE UNINSURED MOTORIST PREMIUM, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT ONE DOLLAR OF THE YEARLY PREMIUM BE PLACED ON DEPOSIT WITH THE STATE TREASURER IN THE "UNINSURED ENFORCEMENT FUND"; TO AMEND SECTION 38-73-910, AS AMENDED, RELATING TO INSURANCE, RATES, RATE-MAKING, RATE FILING, AND NOTICE OF HEARING AS A PREREQUISITE TO GRANTING OF RATE INCREASES AND EXCEPTIONS, SO AS TO, AMONG OTHER THINGS, DELETE "AUTOMOBILE INSURANCE" FROM THE LIST OF LINES OR TYPES OF INSURANCE FOR WHICH IT IS PROVIDED THAT NO INCREASE IN PREMIUM RATES MAY BE GRANTED UNDER CERTAIN CONDITIONS AND CIRCUMSTANCES, AND PROVIDE THAT, EXCEPT AS PROVIDED IN THIS SECTION, OVERALL AVERAGE RATE LEVEL INCREASES OR DECREASES FOR ALL COVERAGES COMBINED OF SEVEN PERCENT ABOVE OR BELOW THE INSURER'S RATES IN EFFECT MAY TAKE EFFECT WITHOUT PRIOR APPROVAL WITH RESPECT TO RATES FOR AUTOMOBILE INSURANCE POLICIES; BY ADDING SECTION 38-73-736 SO AS TO PROVIDE THAT ANY SCHEDULE OF RATES, RATE CLASSIFICATIONS, OR RATING PLANS FOR AUTOMOBILE INSURANCE AS DEFINED IN SECTION 38-77-30 FILED WITH THE DEPARTMENT OF INSURANCE MUST PROVIDE FOR AN APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR THOSE INSURED PERSONS WHO ARE FIFTY-FIVE YEARS OF AGE AND OLDER AND WHO QUALIFY AS PROVIDED IN SECTION 38-73-737; TO AMEND SECTION 38-77-10, AS AMENDED, RELATING TO THE DECLARATION OF THE PURPOSE OF THE AUTOMOBILE INSURANCE LAW, SO AS TO DELETE CERTAIN PROVISIONS AND LANGUAGE, AND PROVIDE, AMONG OTHER THINGS, THAT ONE OF THE PURPOSES IS TO PROVIDE FOR AN ASSIGNED RISK PLAN KNOWN AS THE "SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN" FOR CERTAIN PERSONS; TO AMEND SECTION 38-77-30, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND DEFINITIONS, SO AS TO, AMONG OTHER THINGS, DELETE CERTAIN DEFINITIONS AND PROVIDE DEFINITIONS FOR "CANCELLATION", "FACILITY PHYSICAL DAMAGE RATE", "INSTITUTIONAL SOURCE", "INSURER SUPPORT ORGANIZATION", AND "POLICY OF AUTOMOBILE INSURANCE"; BY ADDING SECTION 38-77-596 SO AS TO PROVIDE THAT THE GOVERNING BOARD OF THE SOUTH CAROLINA REINSURANCE FACILITY ANNUALLY SHALL DEVELOP AND FILE PRIVATE PASSENGER AUTOMOBILE LOSS COMPONENTS FOR AUTOMOBILE INSURANCE COVERAGES BASED ON THE TOTAL EXPERIENCE OF ALL RISKS CEDED TO THE FACILITY WHICH ARE ACTUARIALLY SOUND AND SUPPORTED BY STATISTICAL EVIDENCE; TO AMEND SECTION 38-77-112, AS AMENDED, RELATING TO THE AUTOMOBILE INSURANCE LAW, THE REQUIREMENT THAT AN APPLICANT FOR, OR POLICYHOLDER OF, SUCH INSURANCE HAVE A DRIVER'S LICENSE AND EXCEPTIONS SO AS TO, AMONG OTHER THINGS, REQUIRE THAT AT THE TIME OF APPLICATION AN INSURER OR AN AGENT RETAIN FOR A PERIOD OF THREE YEARS THE DRIVER'S LICENSE NUMBERS FOR ALL APPLICANTS WHO WERE REFUSED COVERAGE AND FURNISH THIS INFORMATION TO THE DIRECTOR OF THE DEPARTMENT OF INSURANCE OR HIS DESIGNEE UPON REQUEST; TO AMEND SECTION 38-77-120, AS AMENDED, RELATING TO REQUIREMENTS FOR NOTICE OF CANCELLATION OF OR REFUSAL TO RENEW AN AUTOMOBILE INSURANCE POLICY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE REQUIRED NOTICE MUST PROVIDE FOR THE NOTIFICATION REQUIRED BY SECTION 38-77-390(B) AND PROVIDE FOR CERTAIN EXCEPTIONS; TO AMEND THE 1976 CODE BY ADDING SECTION 38-77-121 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ANY APPLICATION FOR THE ORIGINAL ISSUANCE OF A POLICY OF AUTOMOBILE INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF ANY MOTOR VEHICLE AS DEFINED IN SECTION 38-77-30 MUST HAVE A CERTAIN STATEMENT PRINTED ON OR ATTACHED TO THE FIRST PAGE OF THE APPLICATION FORM; BY ADDING SECTION 38-77-122 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE AN AUTOMOBILE INSURANCE POLICY AS DEFINED IN SECTION 38-77-30 BECAUSE OF THE APPLICANT'S AGE, SEX, LOCATION OF RESIDENCE IN SOUTH CAROLINA, RACE, COLOR, CREED, NATIONAL ORIGIN, ANCESTRY, MARITAL STATUS, INCOME LEVEL, PREVIOUS REFUSAL OF AUTOMOBILE INSURANCE BY ANOTHER INSURER, PRIOR PURCHASE OF INSURANCE THROUGH THE SOUTH CAROLINA AUTOMOBILE INSURANCE PLAN, OR LAWFUL OCCUPATION, INCLUDING MILITARY SERVICE; BY ADDING SECTION 38-77-123 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO INSURER SHALL REFUSE TO RENEW AN AUTOMOBILE INSURANCE POLICY BECAUSE OF CERTAIN SPECIFIED FACTORS AND THAT NOTHING IN THIS SECTION REQUIRES AN INSURER TO RENEW A POLICY OF AUTOMOBILE INSURANCE WHERE THE INSURED'S OCCUPATION HAS CHANGED SO AS TO MATERIALLY INCREASE THE RISK; BY ADDING SECTION 38-77-124 SO AS TO PROVIDE THAT NO INSURER OR AGENT SHALL REFUSE TO ISSUE OR FAIL TO RENEW A POLICY OF MOTOR VEHICLE LIABILITY INSURANCE SOLELY BECAUSE OF THE AGE OF THE MOTOR VEHICLE TO BE INSURED SO LONG AS THE MOTOR VEHICLE IS LICENSED; BY ADDING SECTION 38-77-141 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO NEW POLICY OR ORIGINAL PREMIUM NOTICE OF INSURANCE COVERING LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED UNLESS IT CONTAINS A CERTAIN STATEMENT PRINTED IN BOLDFACE TYPE OR UNLESS THAT STATEMENT IS ATTACHED TO THE FRONT OF OR IS ENCLOSED WITH THE POLICY OR PREMIUM NOTICE; BY ADDING SECTION 38-77-142 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT NO POLICY OR CONTRACT OF BODILY INJURED OR PROPERTY DAMAGE LIABILITY INSURANCE COVERING LIABILITY ARISING FROM THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE MAY BE ISSUED OR DELIVERED IN SOUTH CAROLINA TO THE OWNER OF THE VEHICLE OR MAY BE ISSUED OR DELIVERED BY AN INSURER LICENSED IN SOUTH CAROLINA UPON A MOTOR VEHICLE THAT IS PRINCIPALLY GARAGED, DOCKED, OR USED IN THIS STATE UNLESS THE POLICY CONTAINS A PROVISION INSURING THE NAMED INSURED AND ANY OTHER PERSON USING OR RESPONSIBLE FOR THE USE OF THE MOTOR VEHICLE WITH THE EXPRESSED OR IMPLIED CONSENT OF THE NAMED INSURED AGAINST LIABILITY FOR DEATH OR INJURY SUSTAINED OR LOSS OR DAMAGE INCURRED WITHIN THE COVERAGE OF THE POLICY OR CONTRACT AS A RESULT OF NEGLIGENCE IN THE OPERATION OR USE OF THE VEHICLE BY THE NAMED INSURED OR BY ANY SUCH PERSON; BY ADDING SECTION 38-77-143 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT A POLICY OR CONTRACT OF BODILY INJURY OR PROPERTY DAMAGE LIABILITY INSURANCE RELATING TO THE OWNERSHIP, MAINTENANCE, OR USE OF A MOTOR VEHICLE EXCLUDES COVERAGE TO PERSONS OTHER THAN THE NAMED INSURED OR DIRECTORS, STOCKHOLDERS, PARTNERS, AGENTS, OR EMPLOYEES OF THE NAMED INSURED, OR RESIDENTS OF THE HOUSEHOLD OF EITHER OF THESE GROUPS WHILE THOSE PERSONS ARE EMPLOYED OR OTHERWISE ENGAGED IN THE BUSINESS OF SELLING, REPAIRING, SERVICING, STORING, OR PARKING MOTOR VEHICLES IF THERE IS ANY OTHER VALID OR COLLECTIBLE INSURANCE APPLICABLE TO THE SAME LOSS COVERING THE PERSONS UNDER A POLICY WITH LIMITS AT LEAST EQUAL TO THE FINANCIAL RESPONSIBILITY REQUIREMENTS SPECIFIED IN SECTION 38-77-140; BY ADDING SECTION 38-77-151 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT ALL FUNDS COLLECTED BY THE DIRECTOR OF THE DEPARTMENT OF REVENUE UNDER CHAPTER 10, TITLE 56 MUST BE PLACED ON DEPOSIT WITH THE STATE TREASURER AND HELD IN A SPECIAL FUND TO BE KNOWN AS THE "UNINSURED MOTORISTS FUND" TO BE DISBURSED AS PROVIDED BY LAW; BY ADDING SECTION 38-77-154 SO AS TO PROVIDE THAT THE UNINSURED MOTORISTS FUND SHALL BE UNDER THE SUPERVISION AND CONTROL OF THE DEPARTMENT OF INSURANCE, REQUIRE PAYMENTS FROM THIS FUND TO BE MADE ON WARRANTS OF THE COMPTROLLER GENERAL ISSUED ON VOUCHERS SIGNED BY A PERSON DESIGNATED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE, AND SET FORTH THE PURPOSE OF THE FUND; BY ADDING SECTION 38-77-155 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE DIRECTOR OF THE DEPARTMENT OF INSURANCE SHALL DISTRIBUTE MONIES ANNUALLY FROM THE UNINSURED MOTORISTS FUND AMONG THE SEVERAL INSURERS WRITING MOTOR VEHICLE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE ON MOTOR VEHICLES REGISTERED IN SOUTH CAROLINA; TO AMEND SECTION 38-77-140, RELATING TO BODILY INJURY AND PROPERTY DAMAGE LIMITS UNDER THE AUTOMOBILE INSURANCE LAW, SO AS TO RAISE THE MINIMUM LIMITS OF COVERAGE FOR INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT; TO AMEND SECTION 38-77-150, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE, THE UNINSURED MOTORIST PROVISION, AND DEFENSE OF AN ACTION BY THE INSURER, SO AS TO PROVIDE FOR A MINIMUM OF TEN THOUSAND RATHER THAN FIVE THOUSAND DOLLARS COVERAGE FOR INJURY TO OR DESTRUCTION OF THE PROPERTY OF THE INSURED IN ANY ONE ACCIDENT, AND PROVIDE THAT BENEFITS PAID PURSUANT TO THIS SECTION ARE SUBJECT TO SUBROGATION AND ASSIGNMENT IF AN UNINSURED MOTORIST HAS SELECTED THE OPTION TO BE UNINSURED BY PAYING THE FEE PURSUANT TO SECTION 56-10-510; TO AMEND SECTION 38-77-350, AS AMENDED, RELATING TO AUTOMOBILE INSURANCE AND THE FORM REQUIRED TO BE USED IN THE OFFERING OF OPTIONAL COVERAGES, SO AS TO DELETE CERTAIN PROVISIONS, INCLUDING THE PROVISION REGARDING POLICIES OF INSURANCE OFFERED OR ISSUED BY A NEW SERVICING CARRIER FOR THE REINSURANCE FACILITY TO REPLACE POLICIES PREVIOUSLY ISSUED BY A FORMER SERVICING CARRIER AND CONTAINING THE SAME COVERAGE LIMITS AS THE FORMER POLICIES; BY ADDING SECTION 38-77-370 SO AS TO PROVIDE THAT IF AN INDIVIDUAL, AFTER PROPER IDENTIFICATION, SUBMITS A WRITTEN REQUEST TO AN INSURANCE-SUPPORT ORGANIZATION FOR ACCESS TO RECORDED PERSONAL INFORMATION ABOUT THE INDIVIDUAL THAT IS REASONABLY DESCRIBED BY THE INDIVIDUAL AND ABLE TO BE LOCATED AND RETRIEVED BY THE INSURANCE-SUPPORT ORGANIZATION, THE INSURANCE-SUPPORT ORGANIZATION, WITHIN THIRTY BUSINESS DAYS FROM THE DATE THE REQUEST IS RECEIVED, SHALL TAKE CERTAIN ACTION, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; BY ADDING SECTION 38-77-390 SO AS TO PROVIDE THAT IN THE EVENT OF A CANCELLATION OR NONRENEWAL OF AN AUTOMOBILE INSURANCE POLICY, INCLUDING CANCELLATIONS OR NONRENEWALS THAT INVOLVE POLICIES REFERRED TO IN SECTION 38-77-120, THE INSURER OR AGENT RESPONSIBLE FOR THE CANCELLATION OR NONRENEWAL SHALL GIVE CERTAIN WRITTEN NOTICE IN A FORM APPROVED BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE TO THE APPLICANT, POLICYHOLDER, OR INDIVIDUAL PROPOSED FOR COVERAGE, AND PROVIDE FOR RELATED AND INCIDENTAL MATTERS; TO AMEND SECTION 38-77-530, AS AMENDED, RELATING TO THE PLAN OF OPERATION OF THE REINSURANCE FACILITY, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE PLAN MUST COMMENCE RECOUPMENT OF FACILITY ASSESSMENTS BY WAY OF A SURCHARGE ON PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE BUSINESS ISSUED BY A MEMBER OR THROUGH THE FACILITY, THAT THE SURCHARGE MUST BE A PERCENTAGE OF THE PREMIUM ADOPTED BY THE GOVERNING BOARD OF THE FACILITY, THAT THE CHARGES DETERMINED ON THE BASIS OF THE SURCHARGE MUST BE DISPLAYED AS A PART OF THE APPLICABLE PREMIUM CHARGES, AND THAT THE FACILITY SHALL CONVERT TO THE PERCENTAGE-OF-PREMIUM BASIS OF RECOUPMENT BY MARCH 1, 1998; TO AMEND SECTION 38-77-590, AS AMENDED, RELATING TO THE REINSURANCE FACILITY AND DESIGNATED PRODUCERS, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND SECTION 38-77-595, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND CONDITIONS FOR DESIGNATION OF AN OTHERWISE INELIGIBLE APPLICANT FOR "DESIGNATED PRODUCER", SO AS TO PROVIDE THAT A PRODUCER DESIGNATED UNDER THIS SECTION MAY NOT WRITE NEW PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE BUSINESS TO BE PLACED IN THE FACILITY AFTER MARCH 1, 1998, AND THAT A POLICY WITH AN EFFECTIVE DATE AFTER MARCH 1, 2001, SHALL NOT BE ACCEPTED BY THE FACILITY; TO AMEND CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 8 SO AS TO ENACT PROVISIONS OF LAW CONCERNING "ASSIGNMENT OF RISKS"; TO PROVIDE THAT BEGINNING MARCH 1, 1998, INSURERS MAY NONRENEW A POLICY OF INSURANCE THAT THEY HAVE CURRENTLY CEDED TO THE SOUTH CAROLINA REINSURANCE FACILITY, AND PROVIDE THAT THIS PROVISION DOES NOT APPLY TO BUSINESS WRITTEN THROUGH THE DESIGNATED PRODUCERS; TO REPEAL ARTICLE 5, CHAPTER 77, TITLE 38, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY AND DESIGNATED PRODUCERS, EFFECTIVE JANUARY 1, 2005; TO REPEAL SECTION 38-73-450, RELATING TO THE FAIRNESS OF AUTOMOBILE INSURANCE RATES OR PREMIUM CHARGES AND BURDEN ON THE INSURER TO PROVE FAIRNESS, SECTION 38-73-455, RELATING TO AUTOMOBILE INSURANCE RATES, SECTION 38-73-457, RELATING TO THE REQUIREMENT UPON AUTOMOBILE INSURERS AND RATING ORGANIZATIONS TO FILE INFORMATION ON BASE RATES, SECTION 38-73-460, RELATING TO THE EFFECT OF GAINS AND LOSSES INCURRED BY MEMBER INSURERS OF THE REINSURANCE FACILITY ON RATES FOR AUTOMOBILE INSURANCE, SECTION 38-73-465, RELATING TO AUTOMOBILE INSURANCE AND UNFAIRLY DISCRIMINATORY, EXCESSIVE, OR UNREASONABLE PROFITS OR RATES, SECTION 38-73-720, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE POWER TO ESTABLISH RISK AND TERRITORIAL CLASSIFICATIONS, SECTION 38-73-730, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND RISK CLASSIFICATION PLANS, SECTION 38-73-731, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, REMOVAL FROM THE YOUTHFUL DRIVER CLASSIFICATION, AND REFUND OF EXCESS PREMIUM PAID, SECTION 38-73-735, RELATING TO INSURANCE, THE STATE RATING AND STATISTICAL DIVISION, AND THE PLAN FOR CREDITS AND DISCOUNTS, SECTION 38-73-750, RELATING TO THE REQUIREMENT THAT AUTOMOBILE INSURERS FILE WITH THE STATE RATING AND STATISTICAL DIVISION THEIR PLANS OR SYSTEMS FOR ALLOCATING EXPENSES AND PROFIT AS RESPECTS THE VARIOUS KINDS OR TYPES OF AUTOMOBILE INSURANCE RISKS AND THE CLASSES OF RISKS THEREUNDER, SECTION 38-73-760, RELATING TO INSURANCE, THE STATE-RATING AND STATISTICAL DIVISION, AND UNIFORM STATISTICAL PLANS, SECTION 38-73-770, RELATING TO INSURANCE AND THE REQUIREMENT THAT EVERY CLASSIFICATION PLAN PROMULGATED BY THE DEPARTMENT OF INSURANCE BE SO STRUCTURED AS TO PRODUCE RATES OR PREMIUM CHARGES WHICH ARE ADEQUATE, NOT EXCESSIVE, AND NOT UNFAIRLY DISCRIMINATORY, SECTION 38-73-775, RELATING TO THE ANNUAL FILING OF THE PHYSICAL DAMAGE LOSS COMPONENT BY THE SOUTH CAROLINA REINSURANCE FACILITY, SECTION 38-77-110, RELATING TO THE "MANDATE TO WRITE", AUTOMOBILE INSURANCE COVERAGE, THE REQUIREMENT UPON INSURERS TO INSURE, AND EXCEPTIONS, SECTION 38-77-111, RELATING TO AUTOMOBILE INSURANCE POLICIES WHICH MAY BE CEDED TO THE REINSURANCE FACILITY, SECTION 38-77-115, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE SIGNS REQUIRED IN AN AGENT'S PLACE OF BUSINESS, SECTION 38-77-145, RELATING TO THE AUTOMOBILE INSURANCE LAW AND THE PROVISION THAT PERSONAL INJURY PROTECTION COVERAGE IS NOT MANDATED, SECTION 38-77-285, RELATING TO THE REQUIREMENT THAT ALL AUTOMOBILE INSURANCE COVERAGES ARE TO BE IN ONE POLICY, SECTION 38-77-360, RELATING TO THE PROHIBITION AGAINST AN INCREASE IN AUTOMOBILE INSURANCE PREMIUMS AFTER CERTAIN FIRST-OFFENSE VIOLATIONS, SECTION 38-77-600, RELATING TO AUTOMOBILE INSURANCE AND THE REINSURANCE FACILITY RECOUPMENT CHARGE, SECTION 38-77-605, RELATING TO THE REQUIREMENT THAT THE REINSURANCE FACILITY RECOUPMENT CHARGE MUST BE DISPLAYED IN A CERTAIN MANNER IN INSURANCE PREMIUM NOTICES OR BILLS, SECTION 38-77-610, RELATING TO AUTOMOBILE INSURANCE AND THE FILING OF REINSURANCE FACILITY RECOUPMENT CHARGES, SECTION 38-77-620, RELATING TO AUTOMOBILE INSURANCE AND THE INCLUSION OF FACILITY RECOUPMENT CHARGES IN AUTOMOBILE INSURANCE RATES, SECTION 38-77-625, RELATING TO THE PROVISION THAT IF AN INSURED IS INVOLVED IN A MOTOR VEHICLE ACCIDENT WHERE HE IS NOT THE AT-FAULT DRIVER, HIS REINSURANCE FACILITY RECOUPMENT CHARGE MAY NOT BE INCREASED BY HIS INSURER BECAUSE OF THIS OCCURRENCE, AND ARTICLE 9, CHAPTER 77, TITLE 38, RELATING TO THE AUTOMOBILE INSURANCE LAW AND CERTAIN UNLAWFUL ACTS; AND TO PROVIDE THAT NONRENEWAL NOTICES MAY BE SENT BEFORE MARCH 1, 1998, FOR AUTOMOBILE INSURANCE POLICIES RENEWING ON OR AFTER THAT DATE.
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 56-9-20 of the 1976 Code, as last amended by Act 459 of 1996, is further amended by adding the following appropriately-numbered item:

"( )   'Uninsured Motorist Fund' means a fund established for fees collected by the Director of the Department of Public Safety from registration of uninsured vehicles."

SECTION   2.   Chapter 10 of Title 56 of the 1976 Code is amended by adding:

Section 56-10-510.   In addition to any other fees prescribed by law, every person registering an uninsured motor vehicle, as defined in Section 56-9-20, at the time of registering or reregistering the uninsured vehicle, shall pay a fee of five hundred and fifty dollars. Notwithstanding any other provision of law, fifty dollars of the uninsured motor vehicle fee is nonrefundable and is directed to be paid to the South Carolina Reinsurance Facility for the recoupment of assessments or losses of the South Carolina Reinsurance Facility pursuant to Section 56-10-554 until otherwise ordered by the Director of the Department of Insurance. However, if the uninsured motor vehicle is being registered for a period of less than a full year, the uninsured motor vehicle fee exclusive of any nonrefundable portion must be prorated to conform to the registration period. This uninsured motor vehicle fee shall be increased annually based upon and in relation to the average rate level increases for private passenger automobile insurance coverages by insurers in this State. The Director of the Department of Insurance, by annual order, will set this exact fee. The application for registering an uninsured vehicle must have the following statements printed on or attached to the first page of the form, boldface, twelve point type: "THIS $500 FEE IS NOT AN INSURANCE PREMIUM AND YOU ARE NOT PURCHASING ANY INSURANCE BY PAYING THIS FEE. THIS $500 UNINSURED MOTORIST FEE IS FOR THE PRIVILEGE TO DRIVE AND OPERATE AN UNINSURED MOTOR VEHICLE ON THE SOUTH CAROLINA ROADS." This uninsured motorist notice required by this Section must also be given to the person registering an uninsured motor vehicle. The director shall prescribe the exact format of this notice by regulation and shall adjust the amount of this fee annually as part of the order by the Director of the Department of Insurance adjusting the uninsured motorist fee in relation to the average rate level increases for private passenger automobile insurance coverages by insurers in this State. Every person applying for registration of a motor vehicle and declaring it to be an insured motor vehicle, under the penalties set forth in Section 56-10-520, shall execute and furnish to the director his certificate that the motor vehicle is an insured motor vehicle as defined by the laws of this State, or that the director has issued to its owner, in accordance with Section 56-9-60, a certificate of self-insurance applicable to the vehicle sought to be registered. The director, or his designee, may require any registered owner of a motor vehicle declared to be insured or any applicant for registration of a motor vehicle to be an insured to submit a certificate of insurance on a form prescribed by the director. The director must forward the certificate of insurance or bond to the insurance company or surety company, whichever is applicable, for verification as to whether the policy or bond named in the certificate is currently in force. At that time, and not later than thirty days following receipt of the certificate of insurance, the insurance company or surety company must cause to be filed with the director a written notice if the policy or bond was not applicable as to the named insured. The director must prescribe the manner in which the written notice must be made. The refusal or neglect of any owner within thirty days to submit the certificate of insurance when required by the director or his designee or the notification by the insurance company or surety company that the policy or bond named in the certificate of insurance is not in effect, must require the director to suspend any driver's license and all registration certificates and license plates issued to the owner of the motor vehicle until the person:

(1)   has paid to the Director of the Department of Public Safety a fee of three hundred dollars to be disposed of as provided for in Sections 56-10-550 and 56-10-552 with respect to the motor vehicle determined to be uninsured; and

(2)   furnishes proof of financial responsibility for the future in the manner prescribed in Section 56-10-10, et seq. of this chapter. An order of suspension required by this section is not effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. When three years have elapsed from the effective date of the suspension required in this section, the director may relieve the person of the requirement of furnishing proof of future financial responsibility. If the director determines that the fee applicable to the registration of an uninsured motor vehicle has been paid on the vehicle in question on or before the date that the insurance certificate was requested, no suspension action must be taken. The director shall suspend the driver's license and all registration certificates and license plates of any person on receiving a record of his conviction of a violation of any provisions of Section 56-10-520, but the director shall dispense with the suspension when the person is convicted for a violation of Section 56-10-520 and the department's records show conclusively that the motor vehicle was insured or that the fee applicable to the registration of an uninsured motor vehicle has been paid by the owner before the date and time of the alleged offense.

Section 56-10-520.   A person who owns an uninsured motor vehicle:

(1)   licensed in the State; or

(2)   subject to registration in the State;
who operates or permits the operation of that motor vehicle without first having paid to the director the uninsured motor vehicle fee required by Section 56-10-510, to be disposed of as provided by Section 56-10-550, shall be guilty of a misdemeanor.

A person who is the operator of such an uninsured motor vehicle and not the titled owner, who knows that the required fee has not been paid to the director, shall be guilty of a misdemeanor.

The director or his designee, having reason to believe that a motor vehicle is being operated or has been operated on any specified date, may require the owner of such motor vehicle to submit the certificate of insurance provided for by Section 56-10-510. The refusal or neglect of the owner who has not, before the date of operation, paid the uninsured motor vehicle fee required by Section 56-10-510 as to such motor vehicle, to furnish such certificate must be prima facie evidence that the motor vehicle was an uninsured motor vehicle at the time of such operation. A person who presents or causes to be presented to the director a false certificate that a motor vehicle is an insured motor vehicle or false evidence that a motor vehicle sought to be registered is an insured motor vehicle, is guilty of a misdemeanor.

However, the foregoing portions of this section must not be applicable if it is established that the owner had good cause to believe and did believe that such motor vehicle was an insured motor vehicle, in which event the provisions of Section 56-10-245 must be applicable.

Abstracts of records of conviction, as defined in this title, of any violation of any of the provisions of this section must be forwarded to the director as prescribed by Section 56-9-330. The director shall suspend the driver's license and all registration certificates and license plates of any titled owner of an uninsured motor vehicle upon receiving a record of his conviction of a violation of any provisions of this section, and he shall not thereafter reissue the driver's license and the registration certificates and license plates issued in the name of such person until such person pays the fee applicable to the registration of an uninsured motor vehicle as prescribed in Section 56-10-510 and furnishes proof of future financial responsibility as prescribed by this section. Notice of such suspension shall be made in the form provided for in Section 56-1-465. However, when three years have elapsed from the date of the suspension herein required, the director may relieve such person of the requirement of furnishing proof of future financial responsibility. When such suspension results from a conviction for presenting or causing to be presented to the director a false certificate as to whether a motor vehicle is an insured motor vehicle or false evidence that any motor vehicle sought to be registered is insured, then the director shall not thereafter reissue the driver's license and the registration certificates and license plates issued in the name of such person so convicted for a period of one hundred eighty days from the date of such order of suspension, and only then when all other provisions of law have been complied with by such person. The director shall suspend the driver's license of any person who is the operator but not the titled owner of a motor vehicle upon receiving a record of his conviction of a violation of any provisions of this section and he shall not thereafter reissue the driver's license until thirty days from the date of such order of suspension.

Section 56-10-530.   When it appears to the director from the records of his office that an uninsured motor vehicle as defined in Section 56-9-20, subject to registration in the State, is involved in a reportable accident in the State resulting in death, injury, or property damage with respect to which motor vehicle the owner thereof has not paid the uninsured motor vehicle fee as prescribed in Section 56-10-510, the director shall, in addition to enforcing the applicable provisions of Section 56-10-10, et seq. of this chapter, suspend such owner's driver's license and all of his license plates and registration certificates until such person has complied with those provisions of law and has paid to the Director of the Department of Public Safety a reinstatement fee as provided by Section 56-10-510, to be disposed of as provided by Section 56-10-550, with respect to the motor vehicle involved in the accident and furnishes proof of future financial responsibility in the manner prescribed in Section 56-9-350, et seq. However, no order of suspension required by this section must become effective until the director has offered the person an opportunity for an administrative hearing to show cause why the order should not be enforced. Notice of the opportunity for an administrative hearing may be included in the order of suspension. Notice of such suspension shall be made in the form provided for in Section 56-1-465. However, when three years have elapsed from the effective date of the suspension herein required, the director may relieve such person of the requirement of furnishing proof of future financial responsibility. The presentation by a person subject to the provisions of this section of a certificate of insurance, executed by an agent or representative of an insurance company qualified to do business in this State, showing that on the date and at the time of the accident the vehicle was an insured motor vehicle as herein defined or, presentation by such person of evidence that the additional fee applicable to the registration of an uninsured motor vehicle had been paid to the department before the date and time of the accident, is sufficient bar to the suspension provided for in this section.

Section 56-10-535.   The director, upon receiving notice at the time of application or at any time during participation in the Fund that a titled owner of a motor vehicle has been convicted of one of the following violations: disobedience of any official traffic device; failure to stop for law enforcement officer when signaled; disobedience to any officer directing traffic; failure to stop for a school bus; leaving the scene of an accident where injury to a person or damage to property results; theft or unlawful taking of a vehicle; racing on public highways; driving under the influence of intoxicating liquor or narcotic drugs or where injury to a person of over six hundred dollars per person or damage to property of the insured or other person of over one thousand dollars results; reckless driving where injury to a person of over six hundred dollars per person or damage to property of the insured or other person of over one thousand dollars results; homicide or assault arising out of the operation of a motor vehicle; any felony involving the use of a motor vehicle; the transporting of illegal whiskey or unlawful drugs or other controlled or narcotic substances; reckless homicide; wilful making of false statements in the application for license or registration; impersonating an applicant for license or registration or procuring a license or registration through impersonation whether for himself or another; any three or more moving traffic convictions; any two or more accidents for which the owner is responsible and where injury to a person of over six hundred dollars per person or damage to property of the insured or other persons of over one thousand dollars results; or if any household driver has been licensed for less than three years; then the director shall require the owner to furnish proof of financial responsibility in the manner prescribed by the director.

However, when three years have elapsed from the effective date of any conviction for the above offenses, the director may relieve such person of the requirement of furnishing proof of future financial responsibility.

Section 56-10-540.   Whenever any proof of financial responsibility filed by any person as required by this chapter no longer fulfills the purpose for which required, the director shall require other proof of financial responsibility as required by this chapter and shall suspend such person's driver's license, registration, certificates, and license plates and decals pending the furnishing of proof in a manner prescribed by the director. Notice of such suspension shall be made in the form provided for in Section 56-1-465.

A person whose driver's license or registration certificates, or license plates and decals have been suspended as provided in this chapter and have not been reinstated shall immediately return every such license, registration certificate, and set of license plates and decals held by him to the director. A person failing to comply with this requirement shall be guilty of a traffic infraction and, upon conviction, shall be punished as provided in Section 56-9-310, et seq.

Section 56-10-550.   Except as provided in Sections 56-10-552 and 56-10-554, funds collected by the Director of the Department of Public Safety under the provisions of this chapter must be placed on deposit with the State Treasurer and held in a special fund to be known as the 'Uninsured Motorists Fund' to be disbursed as provided by law. The Director of the Department of Insurance as provided in Sections 38-77-151 and 38-77-154 may expend monies from such funds for the administration of Title 38.

Section 56-10-551.   When any insurance policy certified under this chapter is canceled or terminated, the insurer shall report the fact to the director within fifteen days after the cancellation on a form prescribed by the director.

Section 56-10-552.   (A)   All funds collected as provided in Section 38-73-470 must be directed to the Director of the Department of Public Safety for the establishment and maintenance of a special fund, to be known as the 'Uninsured Enforcement Fund', to be used by the Department of Public Safety for the purpose of enforcement and administration of Article 3, Chapter 10, Title 56.

(B)   Fifty percent of the reinstatement fee as provided by Section 56-10-510(1) must be transferred by the Department of Public Safety and recorded to the Uninsured Enforcement Fund to be used by the Department of Public Safety as provided by subsection (A) of this section. The remaining fifty percent of the reinstatement fee as provided by Section 56-10-510 must be retained in the Uninsured Motorist Fund to be used as provided in Sections 56-10-550, 38-77-151, and 38-77-154.

Section 56-10-553.   (A)   The Department of Public Safety must collect data and maintain statistics on the total number of vehicles registered in the State as of June thirtieth of each year, the number of motorists who voluntarily paid the five hundred and fifty dollar fee at the time of registration during the fiscal year, the number of motorists who paid the penalty fee after being detected by the Department of Public Safety as being uninsured during the fiscal year, the number of certificates of insurance filed during the fiscal year, the net revenue collections for these fees by the fiscal year, the net funds available in the Uninsured Motorist Fund, and the net funds received from the Department of Insurance from the uninsured motorist fee during fiscal year.

(B)   The Department of Public Safety must implement programs designed to ensure full compliance with the financial responsibility laws. These programs must include random sampling of licensed drivers with moving violations requesting proof of insurance. Other programs may be added.

(c)   The Department of Public Safety must on a daily basis select a computerized random sample of five hundred of the registered vehicles in the State and mail to each owner a written request form to be completed by him and his insurance company or the agent issuing the policy to verify liability insurance coverage. The form must be in a manner prescribed by regulation of the department. The completed and verified form must be returned by the owner to the department within fifteen days from the date he receives it. Failure to return the form verified in the proper manner is prima facie evidence that the vehicle is uninsured, and vehicles determined to be uninsured under this section are subject to the provisions of state law dealing with uninsured vehicles.

(D)   The Department of Public Safety must provide an annual report to the General Assembly containing the information required in subsections (A) and (B) of this section.

Section 56-10-554.   As provided in Section 56-10-510, fifty dollars of the uninsured motor vehicle fee paid per vehicle is nonrefundable and must be used to recoup assessments or losses of the South Carolina Reinsurance Facility. Upon collection by the Director of the Department of Public Safety from any person registering an uninsured vehicle, this money must be placed by the Director of the Department of Public Safety on deposit with the State Treasurer to be held in a special account called the "Recoupment Fund", payable on a quarterly basis, to provide for the recoupment of facility assessments or losses. Upon final recoupment of facility losses as the South Carolina Reinsurance Facility ceases to exist, the Director of the Department of Insurance shall by order (1) set the uninsured motor vehicle fee which does not include the fifty dollars dedicated for the recoupment of facility assessments or losses; (2) inform the Director of the Department of Public Safety that the facility assessments or losses have been recouped and when the Department of Public Safety must cease collection from every person registering an uninsured motor vehicle, as well as transmittal to the State Treasurer, of this fifty dollar portion; and (3) direct the State Treasurer to transfer any used portion of the "Recoupment Fund" to the "Uninsured Motorist Fund". The Director of the Department of Public Safety must cease collection of this fifty dollars as part of the uninsured motor vehicle fee which has been dedicated for the recoupment of facility assessments or losses as provided in the order issued by the Director of the Department of Insurance.

SECTION   3.   Section 38-73-470 of the 1976 Code, as last amended by Section 783 of Act 181 of 1993, is further amended to read:

"Section 38-73-470.   One dollar of the yearly premium for uninsured motorist coverage must be transferred is directed to be paid to the South Carolina Department of Public Safety to be placed on deposit with the State Treasurer in the 'Uninsured Enforcement Fund', payable on a quarterly basis, to provide funds for the costs of enforcing and administering the provisions of Article 3, Chapter 10, Title 56. Interest earned by the 'Uninsured Fund' must be retained by that fund. There is no requirement for an insurer or an agent to offer underinsured motorist coverage at limits less than the statutorily required bodily injury or property damage limits."

SECTION   4.   Section 38-73-910 of the 1976 Code, as last amended by Acts 300, 360, and 378 of 1996, is further amended to read:

"Section 38-73-910.   (A)   No increase in the premium rates may be granted for automobile, workers' compensation, fire, allied lines, and homeowners' insurance, nor for any other line or type of insurance with respect to which the director or his designee has, by order, made a finding that (a) legal or other compulsion upon the part of the insured to purchase the insurance interferes with competition, or (b) under prevailing circumstances there does not exist substantial competition, unless notice is given in all newspapers of general, statewide circulation at least thirty days in advance of the insurer's proposed effective date of the increase in premium rates. The notice shall state the amount of increase, the type and line of coverage, and the proposed effective date and shall allow any insured or affected party to request within fifteen days a public hearing upon the propriety of the rate increase request before the Administrative Law Judge Division. A copy of the notice must be sent to the Consumer Advocate.

However, the requirements of public notices and public hearings in this section do not apply to applications for rate increases when the applicant insurer had earned premiums in this State in the previous calendar year of less than two million dollars for the line or type of insurance for which the rate increase is sought or, if the rate increase is sought by a rating organization, the earned premiums in this State for all members and subscribers of the organization for whom an increase is sought were less than two million dollars for the previous calendar year for the line or type of insurance for which the rate increase is sought. The two million dollars must be increased by a factor equal to the increase in the consumer price index, all items, every three years.

However, a private insurer licensed to underwrite essential property insurance as defined by Section 38-75-310(1), notwithstanding any limitations included within this title, may file and use, pursuant to the provisions of Section 38-73-1095, any rates which result in insurance premium rates of ninety percent, or less, of the insurance premium rates then approved for the South Carolina Wind and Hail Underwriting Association for use within the coastal area of South Carolina as defined by Section 38-75-310(5).

(B)   Except as provided in subsection (c) of this section, overall average rate level increases or decreases, for all coverages combined, of seven percent above or below the insurer's rates in effect may take effect without prior approval on a file and use basis with respect to rates for automobile insurance policies. The seven percent cap does not apply on an individual insured basis.

(c)   Notwithstanding any other provisions of this chapter, for any policies governed by this section, filings that produce rate level changes within the limitation specified in subsection (B) of this section becomes effective without prior approval; provided, however, that (1) no more than one rate increase within the limitation specified in subsection (B) of this section may be implemented during any twelve-month period and (2) no rate increase within the limitation specified in subsection (B) of this section may be implemented until the onset of the new policy period and unless the insurer, at least thirty days in advance of the end of the policy period, mails or delivers to the named insured, at the address shown in the policy, a written notice of its intention to change the rate. The overall statewide rate change implemented under this section must be stated in the notice.

A rate increase or decrease falling within the limitation specified in subsection (B) of this section may become effective not less than thirty days after the date of the filing with the director. Any such filing is deemed to meet the requirements of this chapter. The director may find that such a filing is not in compliance with this chapter. In the event of such a finding, the director shall issue a written order specifying in detail the provisions with which the insurer has not complied and state a reasonable period thereafter in which the filing shall be deemed no longer effective. Any order by the director pursuant to this section that is issued more than thirty days from the date on which the director received the rate filing shall be on a prospective basis only and shall not affect any contract issued or made prior to the effective date of the order.

Rate filings falling outside the limitation specified in subsection (B) of this section will be subject to the prior approval of the director. The director shall approve or disapprove such filings in accordance with the provisions of Section 38-73-960 and 38-73-990.

(D)   Individual automobile insurance companies and member companies of an affiliated group of automobile insurers may utilize different filed rates for automobile insurance coverages in accordance with rating plans filed with and approved by the director. These rating plans may provide for different rates, rating tiers, and rating plans among affiliated companies. For the purpose of this section, an affiliated group of automobile insurers includes a group of automobile insurers under common ownership, management, or control.

(E)   The Director of the Department of Insurance or his designee shall promulgate regulations implementing the provisions of this section.

(F)   On or before March 31, 2004, the Director of the Department of Insurance or his designee shall report to the General Assembly on the effectiveness of flexible rating for automobile insurance policies. The report which may not include data regarding a specific insurer or insurer group, except data that is public record, must analyze the impact of flexible rating on:

(1)   the extent and nature of competition;

(2)   size and significance of coverage;

(3)   level and range or rates and rate changes among insurers;

(4)   extent of consumer complaints to the Department of Insurance;

(5)   volume of cancellations and nonrenewals;

(6)   changes in the number of policies by territory and by class, including age and sex, in each territory; and

(7)   the number of new insured, nonrenewed insured and business written by each insurer."

SECTION   5.   The 1976 Code is amended by adding:

"Section 38-73-736.   Any schedule of rates, rate classifications, or rating plans for automobile insurance as defined in Section 38-77-30 filed with the Department of Insurance must provide for an appropriate reduction in premium charges for those insured persons who are fifty-five years of age and older and who qualify as provided in Section 38-73-737."

SECTION   6.   Section 38-77-10 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-10.   In order to effect a complete reform of automobile insurance and insurance practices in South Carolina, the purposes of this chapter are to provide:

(1)   To provide that every automobile insurance risk which is insurable on the basis of the criteria established in this chapter is entitled to bodily injury liability and property damage liability automobile insurance from the automobile insurer of the applicant's choice on the basis of the same rates, policy forms, claims service, and other services provided by the insurer to all other applicants or insureds falling within the classification of risk and territory under the applicable risk and territorial classification plan promulgated by the department so long as all these applicants or insureds have satisfied the same objective standards as established in Sections 38-77-280 and 38-73-455;

(2)   To provide a Reinsurance Facility for automobile insurers in which all automobile insurers which provide bodily injury liability insurance, property damage liability insurance, or both, must participate to the end that the operating expenses and net profit or loss of the facility may be shared equitably by all the insurers transacting bodily injury liability and property damage liability automobile insurance business in this State giving appropriate consideration to degrees of utilization of the facility by the several insurers of bodily injury liability and property damage liability automobile insurance and to provide prohibitions or penalties in respect to excessive utilization of the facility. for a residual market mechanism, known as the Associated Auto Insurers Plan, for every person who is legally entitled to automobile insurance but has not been able to obtain a motor vehicle liability policy to apply to the Director of the Department of Insurance to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State who shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility in this chapter;

(3)   To provide prohibitions and penalties in respect to unfairly discriminatory or unfairly competitive practices having as their purpose or effect evasion of the statutory mandate of coverage provided in this chapter or imposing an undue or unfair burden upon other automobile insurers through excessive utilization of the Facility. of the coverages as provided in this chapter; and

(4)   To provide medical, surgical, funeral, and disability insurance benefits without regard to fault to be offered under automobile insurance policies that provide bodily injury and property damage liability insurance, or other security, for motor vehicles registered in this State."

SECTION   7.   Section 38-77-30 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-30.   As used in this chapter, unless the context requires otherwise:

(1)   'Automobile insurance' means automobile bodily injury and property damage liability insurance, including medical payments and uninsured motorist coverage, and automobile physical damage insurance such as automobile comprehensive physical damage, collision, fire, theft, combined additional coverage, and similar automobile physical damage insurance and economic loss benefits as provided by this chapter written or offered by automobile insurers. An automobile insurance policy includes a motor vehicle liability policy as defined in item (7) of Section 56-9-20 and any nonowner automobile insurance policy which covers an individual private passenger automobile not owned by the insured, a family member of the insured, or a resident of the same household as the insured.

(2)   'Automobile insurer' means an insurer licensed to do business in South Carolina and authorized to issue automobile insurance policies.

(3)   'Bodily injury' includes death resulting therefrom.

(3.5)   'Cancellation' or 'to cancel' means a termination of a policy during the policy period.

(4)   'Damages' includes both actual and punitive damages.

(4.5)   'Facility physical damage rate' means the final rate or premium charge for physical damage coverage which must be established by adding the physical damage loss component developed under Section 38-77-596 to the expense component developed under Section 38-77-596.

(5)   'Facility' means the unincorporated, nonprofit, legal entity created by this chapter to reinsure policies of automobile insurance known as the South Carolina Reinsurance Facility.

(5.5)(a)   'Individual private passenger automobile' means the following types of motor vehicles owned by or leased under a long-term contract by an individual or individuals:

(I)   motor vehicles of the private passenger type or station wagon type;

(ii)   panel trucks, delivery sedans, vehicles with a pickup body, vans, or similar motor vehicles designed for use on streets and highways and so licensed; and

(iii)   motor homes, so long as the motor vehicles described in (ii) and (iii) are not used in the occupation, profession, or business of the insured other than farming and ranching.; and

(iv)   motorcycles.

(b)   A motor vehicle is not considered 'owned by or leased under a long-term contract by an individual or individuals' if the motor vehicle is owned by a partnership or corporation, unless the motor vehicle is owned by a farm family copartnership or a farm family corporation and is garaged principally on a farm or ranch.

(c)   A motor vehicle is not considered 'used in the occupation, profession, or business of the insured', because it is used in the course of driving to and from work.

(d)   Individual private passenger automobile does not include:

(I)   motor vehicles that are used for public or livery conveyance or rented to others without a driver;

(ii)   fire department vehicles, police vehicles, ambulances, and rescue squad vehicles which are publicly owned;

(iii)   motorcycles, motor-driven cycles, motor scooters, and mopeds;

(iv)   dune buggies, all-terrain vehicles, go carts, and snowmobiles;

(v)   golf carts; and

(vi)   small commercial risks.

(6)   'Institutional source' means any person or governmental entity that provides information about an individual to an agent, insurer, or insurance-support organization other than:

(a)   an agent;

(b)   the individual who is the subject of the information; or

(c)   a natural person acting in a personal capacity rather than in a business or professional capacity.

(7)   'Insured' means the named insured and, while resident of the same household, the spouse of any named insured and relatives of either, while in a motor vehicle or otherwise, and any person who uses with the consent, expressed or implied, of the named insured the motor vehicle to which the policy applies and a guest in the motor vehicle to which the policy applies or the personal representative of any of the above.

(8)   'Insurance-support organization' means any person who regularly engages, in whole or in part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurer or agent for insurance transactions, including (I) the furnishing of consumer reports or investigative consumer reports to an insurer or agent for use in connection with an insurance transaction or (ii) the collection of personal information from insurers, agents, or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation, or material nondisclosure in connection with insurance underwriting or insurance claim activity. However, the following persons shall not be considered insurance-support organizations for purposes of this chapter: agents, governmental institutions, insurers, rating organizations, medical care institutions, and medical professionals.

(7)(9)   'Motor vehicle' means every self-propelled vehicle which is designed for use upon a highway, including trailers and semitrailers designed for use with these vehicles but excepting traction engines, road rollers, farm trailers, tractor cranes, power shovels and well-drillers, and every vehicle which is propelled by electric power obtained from overhead wires but not operated upon rails. For purposes of this chapter, the term automobile has the same meaning as motor vehicle.

(8)(10)   'Nonpayment of premium' means failure of the named insured to pay when due any of his obligations in connection with the payment of premiums on a policy, or any installment of the premium, whether the premium is payable directly to the insurer or its agent or indirectly under any premium finance plan or extension of credit, or failure to maintain membership in an organization if membership is a condition precedent to insurance coverage.

(10.5)   'Policy of automobile insurance' or 'policy' means a policy or contract for bodily injury or property damage liability insurance issued or delivered in this State covering liability arising from the ownership, maintenance, or use of any motor vehicle, insuring as the named insured one individual or husband and wife who are residents of the same household, and under which the insured vehicle designated in the policy is either:

(a)   a motor vehicle of a private passenger, station wagon, or motorcycle type that is not used commercially, rented to others, or used as a public or livery conveyance where the terms 'public or livery conveyance' do not include car pools, or

(b)   any other four-wheel motor vehicle which is not used in the occupation, profession, or business, other than farming, of the insured, or as a public or livery conveyance, or rented to others. The term 'policy of automobile insurance' or 'policy' does not include:

(I)   any policy issued through the Associated Auto Insurers Plan,

(ii)   any policy covering the operation of a garage, sales agency, repair shop, service station, or public parking place,

(iii)   any policy providing insurance on an excess basis such as an umbrella policy, or

(iv)   any other contract providing insurance to the named insured even though the contract may incidentally provide insurance on motor vehicles.

(9)(11)   'Quota share reinsurance' means that form of reinsurance in which the reinsurer assumes a fixed percentage of the insured risk.

(10)(12)   'Renewal' or 'to renew' means the issuance and delivery by an insurer of a policy superseding at the end of the policy period a policy previously issued and delivered by the same insurer, the renewal policy to provide types and limits of coverage at least equal to those contained in the policy being superseded, or the issuance and delivery of a certificate or notice extending the terms of a policy beyond its policy period or term with types and limits of coverage at least equal to those contained in the policy being extended. However, any policy with a policy period or term of less than six months or any period with no fixed expiration date is considered as if written for successive policy periods or terms of six months.

(11)(13)   'Small commercial risk' means:

(a)   Garage risks including nonmotor vehicle insurance when written in combination with automobile liability coverage.

(b)   Ambulance risks.

(c)   Commercial risks which have a load capacity less than ten thousand pounds manufacturer's gross vehicular weight less than twenty thousand pounds and are not required to have a mandatory filing by a governmental authority other than an SR-22.

(d)   Church buses used by a church to transport adults or children to and from services and in activities incidental to church functions, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.

(e)   Privately owned school buses used to carry school children and students, their parents or guardians, members of the faculty, school board members, nurses, doctors, and dentists, as well as guests in connection with any school activity and operations incidental thereto, including games, outings, and similar road trips, so long as a mandatory filing by any governmental authority other than an SR-22 is not required.

'Small commercial risk' does not include pulpwood trucks or dump trucks.

(12)   'Specialized insurer' means an insurer which specializes in certain types of business such as, but without limitation on the generality, commercial automobile business, and which may be relieved, with the approval of the director or his designee, of the obligation to write types of business inconsistent with this specialty, such as private passenger automobile business. However, no insurer may be approved as a specialized insurer or continue to be so approved unless it accepts all insurable risks falling within the types of business to which it confines its writings without distinctions among applicants or policyholders as to policy forms, terms, rates or services other than as the distinctions are reflected in the approved rating plan for the classification of risks. No insurer may be approved as a specialized insurer because it specializes in or purports to specialize in select or preferred risks. A specialized insurer may not cede risks to the Reinsurance Facility and thus does not recoup losses of the facility. Specialized insurers may be excused from using the merit rating plan and the uniform classification and territorial plans upon approval by the director or his designee.

(13)(14)   'Uninsured motor vehicle' means a motor vehicle as to which:

(a)   there is not bodily injury liability insurance and property damage liability insurance both at least in the amounts specified in Section 38-77-140, or

(b)   there is nominally that insurance, but the insurer writing the same successfully denies coverage thereunder, or

(c)   there was that insurance, but the insurer who wrote the same is declared insolvent, or is in delinquency proceedings, suspension, or receivership, or is proven unable fully to respond to a judgment, and

(d)   there is no bond or deposit of cash or securities in lieu of the bodily injury and property damage liability insurance.

(e)   the owner of the motor vehicle has not qualified as a self-insurer in accordance with the applicable provisions of law.

A motor vehicle is considered uninsured if the owner or operator is unknown. However, recovery under the uninsured motorist provision is subject to the conditions set forth in this chapter.

Any motor vehicle owned by the State or any of its political subdivisions is considered an uninsured motor vehicle when the vehicle is operated by a person without proper authorization.

(14)(15)   'Underinsured motor vehicle' means a motor vehicle as to which there is bodily injury liability insurance or a bond applicable at the time of the accident in an amount of at least that specified in Section 38-77-140 and the amount of the insurance or bond is less than the amount of the insureds' damages."

SECTION   8.   The 1976 Code is amended by adding:

"Section 38-77-596.   (A)   The governing board of the South Carolina Reinsurance Facility annually shall develop and file private passenger automobile loss components and expense components which include provisions for profits and contingencies, which would combine for the final rate for automobile insurance coverages based on the total experience of all risks ceded to the facility which are actuarially sound and supported by statistical evidence. The governing board shall contract with independent actuarial services to develop the loss component. Due consideration must be given to actual loss experience within the facility for the most recent three-year period for which such information is available.

(B)   The loss component developed under this section is applicable to the risk and territorial classification plan adopted by the facility. Nothing in this section precludes the governing board of the facility from filing for approval, or the Director of the Department of Insurance from requiring the governing board to file for approval, variations in loss components and rates which are based upon differences in risk characteristics including, but not limited to, difference in driving records.

(c)   The governing board of the facility annually shall review the private passenger automobile loss components to determine if they are actuarially-sound and supported by the statistical evidence. If rate changes are required, the governing board shall submit appropriate filings for approval with the director. Facility rate increases on or after March 1, 1999, must be capped at an overall ten percent increase each year. This cap does not apply on an individual insured basis. These rate filings are subject to public hearing pursuant to applicable provisions of the Administrative Procedures Act."

SECTION   9.   Section 38-77-112 of the 1976 Code, as last amended by Act 148 of 1989, is further amended to read:

"Section 38-77-112.   Notwithstanding Sections 38-77-110, 38-77-920, and Section 38-77-280, no automobile insurer is required to write coverage for automobile insurance as defined in Section 38-77-30 for any applicant or existing policyholder who does not at the time of application or renewal possess a valid South Carolina motor vehicle or special restricted driver's license. An insurer or an agent shall retain, for a period of three years, the driver's license numbers for all persons who have submitted an application for insurance but who were refused coverage and shall furnish such information upon the request of the Director of the Department of Insurance or his designee. This section does not apply to an individual who is handicapped and who owns a vehicle in this State but who does not have a valid driver's license. If an automobile is principally garaged and operated in this State, the owner of the vehicle must can be offered coverage thereon regardless of whether or not he possesses a valid South Carolina driver's license if he designates to the insurer who the principal operator of the vehicle will be and this person has a valid South Carolina driver's license or otherwise meets the requirements of this section. This requirement does not apply to personnel of the Armed Forces of the United States on active duty and officially stationed in this State who possess a valid motor vehicle driver's license issued by another state or territory of the United States or the District of Columbia. This requirement is waived ninety days for individuals who move into South Carolina with the intent of making South Carolina their place of residence if they possess a valid driver's license issued by another state or territory of the United States or the District of Columbia."

SECTION   10.   Section 38-77-120(a) of the 1976 Code, as last amended by Section 806 of Act 181 of 1993, is further amended to read:

"(a)   No cancellation or refusal to renew by an insurer of a policy of automobile insurance is effective unless the insurer delivers or mails, to the named insured at the address shown in the policy, a written notice of the cancellation or refusal to renew. This notice:

(1)   must be approved as to form by the director or his designee prior to before use;

(2)   shall must state the date not less than fifteen days after the date of the mailing or delivering on which the cancellation or refusal to renew becomes effective;

(3)   shall must state the specific reason or reasons of the insurer for cancellation or refusal to renew and provide for the notification required by subsection (B) of Section 38-77-390. However, those notification requirements must not apply when the policy is being canceled or not renewed for the reason set forth in Section 38-77-123(B),

(4)   must inform the insured of his right to request in writing within fifteen days of the receipt of notice that the director review the action of the insurer. The notice of cancellation or refusal to renew must contain the following statement to inform the insured of such right:

Within fifteen days of receiving this notice, you or your attorney may request in writing that the director review this action to determine whether the insurer has complied with South Carolina laws in canceling or nonrenewing your policy. If this insurer has failed to comply with the cancellation or nonrenewal laws, the director may require that your policy be reinstated. However, the director is prohibited from making underwriting judgments. If this insurer has complied with the cancellation or nonrenewal laws, the director does not have the authority to overturn this action.'

(5)   must inform the insured of the possible availability of other insurance which may be obtained through his agent, through another insurer, or through the Associated Auto Insurers Plan. It must also state that the Department of Insurance has available an automobile insurance buyer's guide regarding automobile insurance shopping and availability, and provide applicable mailing addresses and telephone numbers, including a toll-free number if available, for contacting the Department of Insurance.

Nothing in this subsection prohibits any insurer or agent from including in the notice of cancellation or refusal to renew, any additional disclosure statements required by state or federal laws, or any additional information relating to the availability of other insurance. The insurer must disclose in writing whether the insured is ceded to the facility."

SECTION   11.   The 1976 Code is amended by adding:

"Section 38-77-121.   (A)   Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle as defined in Section 38-77-30 must have the following statement printed on or attached to the first page of the application form, in boldface type: 'THE INSURER CAN CANCEL THIS POLICY FOR WHICH YOU ARE APPLYING WITHOUT CAUSE DURING THE FIRST 90 DAYS. THAT IS THE INSURER'S CHOICE. AFTER THE FIRST 90 DAYS, THE INSURER CAN ONLY CANCEL THIS POLICY FOR REASONS STATED IN THE POLICY.'

(B)   Any application for the original issuance of a policy of insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle defined in Section 38-77-30 that requires the insured to disclose information as to any previous cancellation or refusal to renew must also permit the insured to offer or provide a full explanation of the reason for the cancellation or refusal to renew.

(C)   The notice required by this section must accompany the initial declarations page in the event the applicant is not provided a written copy at the time of the application and the coverage has been bound by the insurer.

(D)   The insurer may cancel without cause at any time in the first ninety days during which the policy is in effect subject to Section 38-77-122.

This section does not apply to the renewal of any policy of insurance.

Section 38-77-122.   (A)   No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 because of any one or more of the following factors: the age, sex, location of residence in this State, race, color, creed, national origin, ancestry, marital status, or income level. No insurer or agent shall refuse to issue an automobile insurance policy as defined in Section 38-77-30 solely because of any one of the following factors: the previous refusal of automobile insurance by another insurer, prior purchase of insurance through the Associated Auto Insurers Plan, or lawful occupation, including the military service, of the person seeking the coverage. Nothing in this section prohibits any insurer from limiting the issuance of motor vehicle insurance policies only to persons engaging in or who have engaged in a particular profession or occupation, or who are members of a particular religious sect.

Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data.

(B)   In determining the premium rates to be charged for an automobile insurance policy as defined in Section 38-77-30, it is unlawful to consider race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. Nor may an insurer, agent, or broker refuse to write or renew an automobile insurance policy as defined in Section 38-77-30 based upon age, sex, race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director. Any insurer or agent who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer or agent is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. Provided however, if the unfair discrimination is required by an insurer, only the insurer is subject to the penalty as long as the agent of the insurer has reported the pattern of unfair discrimination to the department. The director or his designee at any time may examine an insurer or agent to enforce this section. The expense of examination must be paid by the insurer, agent, or broker.

Section 38-77-123.   (A)(1)   No insurer shall refuse to renew an automobile insurance policy because of any one or more of the following factors:

(a)   age;

(b)   sex;

(c)   location of residence in this State;

(d)   race;

(e)   color;

(f)   creed;

(g)   national origin;

(h)   ancestry;

(I)   marital status;

(j)   income level.

(2)   No insurer shall refuse to renew an automobile insurance policy solely because of any one of the following factors:

(a)   lawful occupation, including the military service;

(b)   lack of driving experience, or number of years of driving experience;

(c)   lack of supporting business or lack of the potential for acquiring such business;

(d)   one or more accidents or violations that occurred more than thirty-six months immediately preceding the upcoming anniversary date;

(e)   one or more claims submitted under the uninsured motorists coverage of the policy where the uninsured motorist is known or there is physical evidence of contact;

(f)   single claim by a single insured submitted under the medical payments coverage or medical expense coverage due to an accident for which the insured was neither wholly nor partially at fault;

(g)   one or more claims submitted under the comprehensive or towing coverages. However, nothing in this section prohibits an insurer from modifying or refusing to renew the comprehensive or towing coverages at the time of renewal of the policy on the basis of one or more claims submitted by an insured under those coverages, provided that the insurer mails or delivers to the insured at the address shown in the policy written, notice of the change in coverage at least thirty days before the renewal; or

(h)   two or fewer motor vehicle accidents within a three-year period unless the accident was caused either wholly or partially by the named insured, a resident of the same household, or other customary operator.

(3)   Nothing contained in subsection (A)(1)(f), (g), and (h) of this subsection prohibits an insurer from refusing to renew a policy where a claim is false or fraudulent. Nothing in this section prohibits an insurer from setting rates in accordance with relevant actuarial data except that no insurer may set rates based in whole or in part on race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director.

(B)   No insurer shall cancel a policy except for one or more of the following reasons:

(1)   The named insured or any other operator who either resides in the same household or customarily operates a motor vehicle insured under the policy has had his driver's license suspended or revoked during the policy period or, if the policy is a renewal, during its policy period or the ninety days immediately preceding the last anniversary of the effective date.

(2)   The named insured fails to pay the premium for the policy or any installment of the premium, whether payable to the insurer or its agent either directly or indirectly under any premium finance plan or extension of credit.

(C)   There shall be no liability on the part of and no cause of action of any nature shall arise against the director or his designees; any insurer, its authorized representatives, its agents, or its employees; or any person furnishing to the insurer information as to reasons for cancellation or refusal to renew, for any statement made by any of them in complying with this section or for providing information pertaining to the cancellation or refusal to renew. For the purposes of this section, no insurer shall be required to furnish a notice of cancellation or refusal to renew to anyone other than the named insured, any person designated by the named insured, any other person to whom such notice is required to be given by the terms of the policy and the director.

(D)   Within fifteen days of receipt of the notice of cancellation or refusal to renew, any insured or his attorney shall be entitled to request in writing to the director that he review the action of the insurer in canceling or refusing to renew the policy of the insured. Upon receipt of the request, the director shall promptly begin a review to determine whether the insurer's cancellation or refusal to renew complies with the requirements of this section and of Section 38-77-120 if the notice was sent by mail. The policy must remain in full force and effect during the pendency of the review by the director except where the cancellation or refusal to renew is for the reason set forth in subitem (2) of subsection (B) of this section, in which case the policy terminates as of the effective date stated in the notice. Where the director finds from the review that the cancellation or refusal to renew has not complied with the requirements of this section or of Section 38-77-120, he shall immediately notify the insurer, the insured, and any other person to whom such notice was required to be given by the terms of the policy that the cancellation or refusal to renew is not effective. Nothing in this section authorizes the director to substitute his judgment as to underwriting for that of the insurer.

(E)   Each insurer shall maintain for at least three years, records of cancellation and refusal to renew and copies of every notice or statement referred to in Section 38-77-120 of this section that it sends to any of its insureds.

(F)   The provisions of this section do not apply to any insurer that limits the issuance of policies of motor vehicle liability insurance to one class or group of persons engaged in any one particular profession, trade, occupation, or business. Nothing in this section requires an insurer to renew a policy of automobile insurance if the insured does not conform to the occupational or membership requirements of an insurer who limits its writings to an occupation or membership of an organization. No insurer is required to renew a policy if the insured becomes a nonresident of South Carolina.

(G)   Any insurer who violates this section shall be subject to the penalties as provided in Section 38-2-10. If the Director of the Department of Insurance or his designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or his designee may impose a fine of up to two hundred thousand dollars. Provided however, if the unfair discrimination is required by an insurer, only the insurer is subject to the penalty as long as the agent of the insurer has reported the pattern of unfair discrimination to the department. The director or his designee at any time may examine an insurer, agent, or broker to enforce this section. . The expense of examination must be paid by the insurer, agent, or broker.

Section 38-77-124.   (A)   Notwithstanding the provisions of Sections 38-77-122 and 38-77-123, an insurer may refuse to issue or renew an automobile insurance policy as defined in Section 38-77-30 on the basis of location of residence where the insurer has filed with the director a territorial plan setting forth the precise geographic areas of the state in which it will issue or renew policies. This territorial plan may not limit issuances or renewals to areas at any level smaller than a county, except that an insurer may include in its territorial plan an area smaller than an county which is contiguous to a whole county contained within the territorial plan provided that the inclusion in the territorial plan of any such area at a level smaller than a county does not have the effect of excluding populations based upon any factors set out in Section 38-77-122(A) or Section 38-77-123(A)(1). The director must reject any territorial plan which violates the provisions of this section.

(B)   No insurer or agent shall refuse to issue or fail to renew a policy of motor vehicle liability insurance solely because of the age of the motor vehicle to be insured, provided the motor vehicle is licensed.

Section 38-77-126.   Insurers must disclose to the insured if the rate level is higher than the lowest rate level tier for that insurer or the group to which the insurer is a member. The insurer must provide in writing the reason for the higher tier.

Section 38-77-141.   No new policy or original premium notice of insurance covering liability arising out of the ownership, maintenance, or use of a motor vehicle may be issued or delivered unless it contains the following statement printed in boldface type, or unless the statement is attached to the front of or is enclosed with the policy or premium notice:

IN ADDITION TO THE INSURANCE COVERAGE REQUIRED BY LAW TO PROTECT YOU AGAINST A LOSS CAUSED BY AN UNINSURED MOTORIST, IF YOU HAVE PURCHASED LIABILITY INSURANCE COVERAGE THAT IS HIGHER THAN THAT REQUIRED BY LAW TO PROTECT YOU AGAINST LIABILITY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, OR USE OF THE MOTOR VEHICLES COVERED BY THIS POLICY, AND YOU HAVE NOT ALREADY PURCHASED UNINSURED MOTORIST INSURANCE COVERAGE EQUAL TO YOUR LIABILITY INSURANCE COVERAGE:

(1)   YOUR UNINSURED AND UNDERINSURED MOTORIST INSURANCE COVERAGE HAS INCREASED TO THE LIMITS OF YOUR LIABILITY COVERAGE AND THIS INCREASE WILL COST YOU AN EXTRA PREMIUM CHARGE; AND

(2)   YOUR TOTAL PREMIUM CHARGE FOR YOUR MOTOR VEHICLE INSURANCE COVERAGE WILL INCREASE IF YOU DO NOT NOTIFY YOUR AGENT OR INSURER OF YOUR DESIRE TO REDUCE COVERAGE WITHIN TWENTY DAYS OF THE MAILING OF THE POLICY OR THE PREMIUM NOTICE, AS THE CASE MAY BE;

(3)   IF THIS IS A NEW POLICY AND YOU HAVE ALREADY SIGNED A WRITTEN REJECTION OF SUCH HIGHER LIMITS IN CONNECTION WITH IT, PARAGRAPHS (1) AND (2) OF THIS NOTICE DO NOT APPLY.'

After twenty days, the insurer is relieved of the obligation imposed by this subsection to attach or imprint the foregoing statement to any subsequently delivered renewal policy, extension certificate, other written statement of coverage continuance, or to any subsequently mailed premium notice.

Section 38-77-142.   (A)   No policy or contract of bodily injury or property damage liability insurance covering liability arising from the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of the vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle that is principally garaged, docked, or used in this State unless the policy contains a provision insuring the named insured and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured against liability for death or injury sustained or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the vehicle by the named insured or by any such person. Each policy or contract of liability insurance, or endorsement to the policy or contract, insuring private passenger automobiles principally garaged, docked, or used in this State, that has as the named insured an individual or husband and wife who are residents of the same household and that includes, with respect to any liability insurance provided by the policy, contract, or endorsement for use of a nonowner automobile a provision requiring permission or consent of the owner of the automobile for the insurance to apply.

(B)   No policy or contract of bodily injury or property damage liability insurance relating to the ownership, maintenance, or use of a motor vehicle may be issued or delivered in this State to the owner of a vehicle or may be issued or delivered by an insurer licensed in this State upon a motor vehicle principally garaged or used in this State without an endorsement or provision insuring the named insured, and any other person using or responsible for the use of the motor vehicle with the expressed or implied consent of the named insured, against liability for death or injury sustained, or loss or damage incurred within the coverage of the policy or contract as a result of negligence in the operation or use of the motor vehicle by the named insured or by any other person. If an insurer has actual notice of a motion for judgment or complaint having been served on an insured, the mere failure of the insured to turn the motion or complaint over to the insurer may not be a defense to the insurer, nor void the endorsement or provision, nor in any way relieve the insurer of its obligations to the insured, provided the insured otherwise cooperates and in no way prejudices the insurer.

Where the insurer has elected to provide a defense to its insured under such circumstances and files responsive pleadings in the name of its insured, the insured is not subject to sanctions for failure to comply with discovery pursuant to the South Carolina Rules of Civil Procedure unless it can be shown that the suit papers actually reached the insured, and that the insurer has failed after exercising due diligence to locate its insured, and as long as the insurer provides such information in response to discovery as it can without the assistance of the insured.

(c)   Any endorsement, provision, or rider attached to or included in any policy of insurance which purports or seeks to limit or reduce the coverage afforded by the provisions required by this section is void.

Section 38-77-143.   A policy or contract of insurance relating to the maintenance, selling, repairing, servicing, storing, or parking of motor vehicles shall be primary.

Section 38-77-151.   All funds collected by the Director of the Department of Public Safety under the provisions of Chapter 10 of Title 56 must be placed on deposit with the State Treasurer and held in a special fund to be known as the 'Uninsured Motorists Fund' to be disbursed as provided by law. Interest earned by the 'Uninsured Motorists Fund' must be retained by that fund. The Director of the Department of Insurance, as provided in Sections 38-77-154 and 38-77-155, may expend such funds, for the administration of this chapter; provided, however, that the Department of Insurance shall retain ten percent of the Uninsured Motorists Fund to be used by the Department of Insurance to enforce the provisions of Title 38, including Sections 38-77-112, 38-77-122, and 38-77-123, to publish for consumers an automobile insurance buyer's guide, a brochure comparing automobile insurance premiums, and to provide for a public awareness campaign.

Section 38-77-154.   The Uninsured Motorists Fund shall be under the supervision and control of the Department of Insurance. Payments from the Uninsured Motorists Fund shall be made on warrants of the Comptroller General issued on vouchers signed by a person designated by the director. The purpose of the Uninsured Motorists Fund is to reduce the cost of the insurance required by Section 38-77-150 and to protect and educate consumers as provided by Section 38-77-151.

Section 38-77-155.   The director shall distribute monies annually from the Uninsured Motorists Fund among the several insurers writing motor vehicle bodily injury and property damage liability insurance on motor vehicles registered in this State. Monies must be distributed in the proportion that each insurer's premium income for the basic uninsured motorists limits coverage bears to the total premium income for basic uninsured motorists limits coverage written in this State during the preceding year. Premium income must be gross premiums less cancellation and return premiums for coverage required by Section 38-77-150. Only insurers that maintain records satisfactory to the director shall receive any payment from the Uninsured Motorists Fund. Records must be considered satisfactory if they adequately disclose the loss experience for the coverage."

SECTION   12.   Section 38-77-140 of the 1976 Code is amended to read:

"Section 38-77-140.   No automobile insurance policy may be issued or delivered in this State to the owner of a motor vehicle or may be issued or delivered by an insurer licensed in this State upon any motor vehicle then principally garaged or principally used in this State, unless it contains a provision insuring the persons defined as insured against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of these motor vehicles within the United States or Canada, subject to limits exclusive of interest and costs, with respect to each motor vehicle, as follows: fifteen thousand dollars because of bodily injury to one person in any one accident, and, subject to the limit for one person, thirty thousand dollars because of bodily injury to two or more persons in any one accident, and five ten thousand dollars because of injury to or destruction of property of others in any one accident. Nothing in this article prevents an insurer from issuing, selling, or delivering a policy providing liability coverage in excess of these requirements."

SECTION   13.   Section 38-77-150 of the 1976 Code, as last amended by Section 807 of Act 181 of 1993, is further amended to read:

"Section 38-77-150.   (A)   No automobile insurance policy or contract may be issued or delivered unless it contains a provision by endorsement or otherwise, herein referred to as the uninsured motorist provision, undertaking to pay the insured all sums which he is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle, within limits which may be no less than the requirements of Section 38-77-140. The uninsured motorist provision must also provide for no less than five ten thousand dollars' coverage for injury to or destruction of the property of the insured in any one accident but may provide an exclusion of the first two hundred dollars of the loss or damage. The director or his designee may prescribe the form to be used in providing uninsured motorist coverage and when prescribed and promulgated no other form may be used.

(B)   No action may be brought under the uninsured motorist provision unless copies of the pleadings in the action establishing liability are served in the manner provided by law upon the insurer writing the uninsured motorist provision. The insurer has the right to appear and defend in the name of the uninsured motorist in any action which may affect its liability and has thirty days after service of process on it in which to appear. The evidence of service upon the insurer may not be made a part of the record.

(c)   Benefits paid pursuant to this section are subject to subrogation and assignment if an uninsured motorist has selected the option to be uninsured by paying the fee pursuant to Section 56-10-510."

SECTION   14.   Section 38-77-280 of the 1976 Code, as last amended by Act 326 of 1996, is further amended to read:

"Section 38-77-280.   (A)   All automobile insurers, including those insurance companies writing private passenger physical damage coverages only, Any automobile insurer may, at their its own election, make collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage at such rates and under such rules as have been approved by the director. Automobile insurers contracted pursuant to Section 38-77-590 for risks written by them through producers assigned by the facility governing board pursuant to that section may make available collision coverage and either comprehensive or fire, theft, and combined additional coverage available to an insured or qualified applicant who requests the coverage. Notwithstanding Section 38-77-590(g), a designated producer may have one or more voluntary outlets for automobile physical damage.

(B)   Any automobile physical damage insurance coverage deductible or policy deductible does not apply to automobile safety glass.

(c)   Notwithstanding Section 38-77-110, automobile physical damage coverage in an automobile insurance policy may be canceled at any time during the policy period by reason of the factors or conditions described in the uniform merit rating plan which existed before the commencement of the policy period and which were not disclosed to the insurer at the commencement of the policy period.

(D)   No policy of insurance which provides automobile physical damage coverage only may be ceded to the facility.

(E)   Insurers of automobile insurance may charge a rate for physical damage insurance coverages different than those provided for in Section 38-73-457 if the rates are filed with the department and approved by the director or his designee. Notwithstanding Section 38-77-111, automobile physical damage insurance coverage may be ceded to the facility. However, automobile physical damage coverages ceded to the facility by an insurer or servicing carrier must be at the facility physical damage rate as defined in Section 38-77-30.

(F)(D)   In determining the premium rates to be charged on physical damage coverage or single interest collision coverage, it is unlawful to consider race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. Nor may an insurer, agent, or broker refuse to write or renew physical damage insurance coverage or single interest collision coverage based upon race, color, creed, religion, national origin, ancestry, location of residence in this State, economic status, or income level. However, nothing in this subsection may preclude the use of a territorial plan approved by the director. If the Director of the Department of Insurance or the director's designee finds that an insurer, agent, or broker is participating in a pattern of unfair discrimination, the director or the director's designee may impose a fine of up to two hundred thousand dollars. The director or the director's designee at any time may examine an insurer, agent, or broker to enforce this section. The expense of examination must be paid by the insurer, agent, or broker."

SECTION   15.   Section 38-77-350(c) of the 1976 Code, as last amended by Act 496 of 1994, is further amended to read:

"(C)   An automobile insurer is not required to make a new offer of coverage on any automobile insurance policy which renews, extends, changes, supersedes, or replaces an existing policy. However, the first renewal notices for existing policies after December 1, 1989, must include the form provided in subsection (A). A policy of automobile insurance offered or issued by a new servicing carrier for the South Carolina Reinsurance Facility to replace a policy previously issued by a former servicing carrier and containing the same coverage limits as the former policy constitutes a valid replacement policy that does not require the new servicing carrier or agent to make a new offer of coverage or to obtain a new application from the insured."

SECTION   16.   The 1976 Code is amended by adding:

"Section 38-77-370.   (A)   If an individual, after proper identification, submits a written request to an insurance-support organization for access to recorded personal information about the individual that is reasonably described by the individual and reasonably able to be located and retrieved by the insurance-support organization, the insurance-support organization, within thirty business days from the date the request is received shall:

(1)   inform the individual of the nature and substance of the recorded personal information in writing, by telephone, or by other oral communication, whichever the insurance-support organization prefers;

(2)   permit the individual to see and obtain a copy of the recorded personal information pertaining to him or to obtain a copy of the recorded personal information by mail, whichever the individual prefers, unless the recorded personal information is in coded form, in which case an accurate translation in plain language must be provided in writing;

(3)   disclose to the individual the identity, if recorded, of those persons to whom the insurance-support organization has disclosed the personal information within two years before the request, and if the identity is not recorded, the names of those insurance-support organizations or other persons to whom the information is disclosed normally; and

(4)   provide the individual with a summary of the procedures by which he may request correction, amendment, or deletion of recorded personal information.

(B)   Any personal information provided pursuant to subsection (A) of this section must identify the source of the information if it is an institutional source.

(c)   Medical record information supplied by a medical care institution or medical professional and requested under subsection (A) of this section, together with the identity of the medical professional or medical care institution that provided the information, must be supplied either directly to the individual or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer, agent, or insurance-support organization prefers. If it elects to disclose the information to a medical professional designated by the individual, the insurer, agent, or insurance-support organization shall notify the individual, at the time of the disclosure, that it has provided the information to the medical professional.

(D)   Except for personal information provided under this Section, an insurer, agent, or insurance-support organization may charge a reasonable fee to cover the costs incurred in providing a copy of recorded personal information to individuals.

(E)   The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. With respect to the copying and disclosure of recorded personal information pursuant to a request under subsection (A) of this section, an insurer, agent, or insurance-support organization may make arrangements with an insurance-support organization or a consumer reporting agency to copy and disclose recorded personal information on its behalf.

(F)   The rights granted to individuals in this section must extend to all natural persons to the extent information about them is collected and maintained by an insurer, agent, or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection must not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.

(G)   For purposes of this section, 'insurance-support organization' does not include 'consumer reporting agency'.

Section 38-77-390.   (A)   In the event of a cancellation or nonrenewal, including those that involve policies referred to in Section 38-77-120, the insurer or agent responsible for the cancellation or nonrenewal shall give a written notice in a form approved by the director that:

(1)   either provides the applicant, policyholder, or individual proposed for coverage with the specific reason or reasons for the cancellation or nonrenewal in writing or advises the person that upon written request he may receive the specific reason or reasons in writing; and

(2)   provides the applicant, policyholder, or individual proposed for coverage with a summary of the rights established under subsection (B) of this section and Section 38-77-380.

(B)   Upon receipt of a written request within ninety business days from the date of the mailing of notice or other communication of a cancellation or nonrenewal to an applicant, policyholder, or individual proposed for coverage, the insurer or agent shall furnish to the person within twenty-one business days from the date of receipt of the written request:

(1)   the specific reason or reasons for the cancellation or nonrenewal in writing, if that information was not furnished initially in writing pursuant to subsection (A)(1);

(2)   the specific items of personal and privileged information that support those reasons; however:

(a)   the insurer or agent shall not be required to furnish specific items of privileged information if it has a reasonable suspicion, based upon specific information available for review by the director, that the applicant, policyholder, or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation, or material nondisclosure; and

(b)   specific items of medical-record information supplied by a medical-care institution or medical professional must be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurer or agent prefers; and

(3)   the names and addresses of the institutional sources that supplied the specific items of information given pursuant to subsection (B)(2) of this section. However, the identity of any medical professional or medical-care institution must be disclosed either directly to the individual or to the designated medical professional, whichever the insurer or agent prefers.

(c)   The obligations imposed by this section upon an insurer or agent may be satisfied by another insurer or agent authorized to act on its behalf. However, the insurer or agent making the cancellation or nonrenewal shall remain responsible for compliance with the obligations imposed by this section.

(D)   When a cancellation or nonrenewal results solely from an insured's oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) of this section may be given orally."

SECTION   17.   Section 38-77-530 of the 1976 Code, as last amended by Section 818 of Act 181 of 1993, is further amended to read:

"Section 38-77-530.   The plan of operation of the facility is subject to the approval of the director or his designee which may be granted only if the plan provides for equitable apportionment of the operating expenses and profits or losses among the members. The plan may, if the director or his designee considers it feasible and equitable, make provision for separate apportionments between private passenger automobile insurance business and commercial automobile insurance business, or, alternatively or in addition to that division, the plan may make provision for separate apportionments between automobile liability insurance business, including medical payments and uninsured motorist insurance, and automobile physical damage insurance business. Any such apportionments shall must give consideration to a comparison between the writings or car-year exposures of each insurer of automobile insurance and the total writings or car-year exposures of all automobile insurers or, in the case of any separate apportionments approved by the director or his designee, a comparison between the writings or car-year exposures of each insurer within the applicable category of automobile insurance and the writings or car-year exposures of all insurers within that category.

In connection with his approval of the plan, the director or his designee may require that the plan make provision for such comparisons for a one-year period or for a longer period not to exceed five years and may provide for weighing the experience so as to attach a greater weight to the more recent experience.

In connection with the approval of the plan's provisions respecting equitable apportionment of the operating expenses or gains or losses of the facility, the director or his designee may require that the plan make provision for a comparison between each insurer's percentage of the aggregate written premiums or car-year exposures respecting automobile insurance or any such category thereof and the insurer's percentage of total cessions to the facility of such insurance or category thereof so as to provide that the insurer's portion of the operating expenses or gains or losses must be the average of the two percentages; or the director or his designee may approve or require any other similar or comparable provision for the apportionment of the expenses or gains or losses of the facility which relates insurers' shares to their respective utilization of the facility.

The plan of operation, provided that insurers writing liability and physical damage coverages, including nonowners coverage, in the State of South Carolina, must commence recoupment of facility assessments by way of a surcharge on liability insurance coverage on private passenger and commercial automobile business issued by a member or through the facility. Such surcharge must be a percentage of the premium adopted by the governing board of the facility; however, for the period beginning on March 1, 1999 and ending on February 28, 2002, the amount of the percentage of premium surcharge for the recoupment of facility assessments adopted by such board cannot exceed ten percent of the liability insurance coverage premium per insured motor vehicle or risk annually for all insureds or policyholders. Beginning on March 1, 2002, and continuing thereafter, every insured or policyholder who does not have any insurance merit rating points pursuant to the Uniform Merit Rating Plan in effect upon the effective date of this act must not be surcharged for the recoupment of any facility assessments or losses; therefore, a clean or nonpointed risk shall no longer pay any form of recoupment seeking to recoup facility losses. Any surcharge as provided above during the period of March 1, 1999 through February 28, 2002 must be displayed as a part of the applicable premium charge for liability insurance coverage. However, beginning on March 1, 2002, every insured or policyholder who does have insurance merit rating points pursuant to the Uniform Merit Rating Plan in effect upon the effective date of this act shall be surcharged for the recoupment of any facility assessments or losses; therefore, these pointed risks shall be the only persons in the State of South Carolina who shall pay any recoupment fee for facility losses or assessments remaining in the facility on March 1, 2002, or any losses accruing in the facility after March 1, 2002. Furthermore, the Director of the Department of Insurance shall promulgate a plan by regulation to recoup any losses remaining in the facility on March 1, 2002, or any losses accruing after March 1, 2002, only from those insureds or policyholders having insurance merit rating points as provided above. This plan shall include, but is not limited to, a schedule of recoupment and method of surcharge method whether a fixed fee, a percentage basis, or otherwise consider appropriate by the director.

No insurer may include directly or indirectly in premiums any charges or surcharges for the recoupment of facility assessments or losses other than as authorized herein. If the Director of the Department of Insurance, or his designee, determines that an insurer has violated this prohibition, the director or his designee may impose the penalties against the insurer as provided law. Upon the final recoupment of facility losses when the South Carolina Reinsurance Facility ceases to exist, no insurance carrier offering automobile insurance coverage in the State shall include any surcharge for the recoupment of facility assessments or losses as any portion of the premium charged for automobile insurance coverage and these insurance carriers must remove this surcharge at the next policy renewal thereby reducing automobile insurance premiums in the amount of the surcharge percentage of premium.

(1)   Any recoupment charge paid by policyholders must be considered premium for the purpose of calculating premium taxes and commissions and is subject to normal policy cancellation procedures.

(2)   Any net operating gains resulting from the operation of the facility must be retained by the facility, and the gains and any investment income derived from the gains must be used to offset future operating losses.

(3)   The total funds recouped by all insurers less commission and premium tax expenses and time value of money considerations must be paid to the Reinsurance Facility in accordance with the plan of operation. The governing board shall redistribute the funds to the insurers based upon each insurer's share of the Reinsurance Facility losses. Recoupment must be used solely for the purpose of recovering past facility operating deficits. The plan of operation must provide that the amount ultimately received by an individual company is not more than the company's share of the Reinsurance Facility losses, plus the time value of money.

(4)   The Reinsurance Facility shall convert to the percentage-of-premium basis of recoupment by March 1, 1999.

(5)   Servicing carrier contracts for business written by designated producers may, at the carrier's option, be extended to March 1, 2002, upon the same terms and conditions as their current contracts."

SECTION   18.   Section 38-77-590 of the 1976 Code, as last amended by Sections 821-825 of Act 181 of 1993, is further amended to read:

"Section 38-77-590.   (a)   Not more than six months after July 9, 1974, or at an earlier time as the director or his designee considers necessary by reason of complaints regarding want of access to automobile insurance in particular areas or want of outlets for producers, the director or his designee shall survey the various areas of the State to ascertain if sufficient marketing outlets exist in all areas or are available to all producers. Upon a finding by the director or his designee that insufficient marketing outlets exist in particular areas or that certain producers have been deprived of a market for risks previously serviced by them, the director or his designee may, after consultation with the facility, designate one or more insurers to service the areas through agents appointed by them or may designate the producers as the agents of any insurer. The arrangements shall must include provision for one hundred percent quota share reinsurance through the facility of any automobile insurance policy marketed through the arrangements, at the option of the insurer, and the reinsurance is not subject to the statutory provisions or regulations regarding excessive utilization of the facility.

(b)   After the effective date of this section, those producers previously designated by the director or his designee may continue to serve in that capacity under the jurisdiction and control of the governing board of the facility, except that any change in the rate of commissions allowed designated producers is subject to the approval of the director or his designee.

(c)   A producer may be designated by the governing board of the facility upon application for designation and is eligible for designation upon a finding by the governing board that the applicant meets the following qualifications:

(1)   The applicant has been, for ten continuous years, a licensed resident property and casualty insurance agent and agency owner or principal with authority from one or more licensed insurers to write liability and physical damage insurance on private passenger automobiles;

(2)   At the time of application the applicant is servicing and owns the renewals on private passenger and commercial automobile insurance business, the net premiums on which exceeded seventy-five thousand dollars of potential cedeable automobile insurance during any one of the previous five calendar years preceding the application;

(3)   Neither the applicant, nor any employee of the applicant or the applicant's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, has any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedeable to the facility;

(4)   The applicant has not contributed to his termination as agent by any insurer because of any illegal breach of agency agreement or other related, improper, or unethical conduct; and

(5)   The books, records, and accounts of the insurance business of the applicant have been audited at the expense of the applicant and found by the governing board to be indicative of a financially sound operation.

(d)   Prior to Before designation as a producer, the applicant shall furnish at his expense a bond in an amount of not less than fifty thousand dollars for the faithful performance of the duties as a producer, executed by the applicant as principal and a corporate surety licensed to do business in this State as surety, and shall also have effective errors and omissions insurance by an insurer licensed to do business in this State, with the bond and errors and omissions insurance being subject to approval by the governing board.

(e)   The governing board shall assign a specific location to each producer designated. The governing board shall determine from the director or his designee the locations assigned by him to those producers whom the director or his designee has designated. 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 agents' 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 or the governing board is transferable to a spouse, child, parent, brother, or sister of the producer upon the designated producer's retirement, incapacity, or death. The duties of a designated producer may be performed by one or more qualified employees of the producer or the producer's corporate agency.

(g)   Neither a designated producer, nor any employee of a designated producer or the producer's corporate agency, nor any partner or shareholder in any related insurance agency, related premium service company, or related other business, may have any direct or indirect connection with any voluntary market outlet for the purpose of writing any type of automobile insurance in this State except for motorcycle insurance and types not cedeable to the facility. The governing board shall terminate the designation of any producer, and the director or his designee shall revoke all licenses of the producer and of any other insurance agent and premium service company knowingly involved in this connection. Upon termination, the producer's expirations on designated business become the property of the facility.

(h)   A designated carrier who fails a claims audit shall have no new designated producer assignments until the time it passes a re-audit within a reasonable time prescribed by the governing board. If this carrier fails two claims audits, including a re-audit, within any three-year period that carrier is disqualified for renewal of its contract with the facility upon expiration of its existing contract.

A producer designated under this section may not write new private passenger and commercial automobile insurance business to be placed in the facility after March 1, 1999. A policy with an effective date after March 1, 2002 shall not be accepted by the facility."

SECTION   19.   Section 38-77-595 of the 1976 Code, as added by Act 524 of 1990, is amended by adding:

"A producer designated under this section may not write new private passenger and commercial automobile insurance business to be placed in the facility after March 1, 1999. A policy with an effective date after March 1, 2002 shall not be accepted by the facility."

SECTION   20(A).   Title 38 of the 1976 Code is amended by adding:

Section 38-91-10.   (A)   The purposes of this chapter are to:

(1)   promote the public welfare by establishing a mechanism to provide automobile insurance to those required to have such insurance,

(2)   to provide controls over such mechanism in order to lower expenses and prevent abuses,

(3)   to provide for competitive bidding of servicing carriers,

(4)   to provide controls over the application process to prevent fraud and inaccuracies as well as other improper practices.

(B)   The provisions of this chapter must cease to be of any force or effect after February 28, 2003. In other words, the joint underwriting association cannot accept any business after February 28, 2003. However, any policy currently issued by or written through the joint underwriting association, pursuant to this chapter, on February 28, 2003 shall continue to be a valid contract of insurance until the end of the policy period unless canceled by the insurer or insured. Furthermore, the Director of the Department of Insurance may promulgate regulations which he deems necessary to implement this transition, including but not limited to the termination of the joint underwriting association and its wind-up period.

Section 38-91-30.   As used in this Chapter:

(a)   "association" means the joint underwriting association established pursuant to the provisions of this act.

(b)   "automobile insurance" means direct insurance against injury or damage arising out of the ownership, operation, maintenance or use of motor vehicles, or insurance against loss for damage to motor vehicles. Private passenger automobile insurance and commercial automobile insurance are two distinct kinds of automobile insurance.

(c)   "director" means the Director of the Department of Insurance.

(d)   "plan of operation" means the plan of operation approved pursuant to the provisions of this act or ordered by the director.

(e)   "qualified applicant" means (1) a resident of this state who owns a motor vehicle registered in this state or has a valid driver's license or is required to file proof of financial responsibility in order to register his motor vehicle or obtain a driver's license, or (2) a non-resident of this state who owns a vehicle registered or principally garaged in this state; provided, however, that no one shall be a qualified applicant if he has any unpaid premium due for prior automobile insurance or if any person who usually drives the motor vehicle to be insured does not hold or is not eligible to obtain a driver's license under suspension.

(f)   "residual market mechanism" means a means of providing a market for insureds in South Carolina were the voluntary market is inadequate.

Section 38-91-110.   (a)   A joint underwriting association, hereinafter referred to as the "Associated Auto Insurers Plan", is hereby created consisting of all insurers authorized to write and engaged in writing automobile insurance within this state. Each insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact such insurance in this state.

(b)   The purpose of the association shall be to guarantee that automobile insurance will be available to any qualified applicant who is unable to procure such insurance through ordinary methods while preserving to the public the benefits of competition among financially sound automobile insurers by encouraging maximum use of the normal private insurance system.

(c)   Pursuant to the provisions of this act and its plan of operation is empowered on behalf of its members:

(1)   To issue automobile insurance policies to qualified applicants or to arrange for the issuance of such policies through members of the association;

(2)   To establish procedures for the sharing among the members of profit or loss on association business and other costs, charges, expenses, liabilities, income, property and other assets of the association. The assessment of members for their appropriate shares may be based on the member's premium volume or exposure units for business other than association business or on a combination of such bases or on any other equitable basis with allowances for incentive programs for insurers to write in the voluntary market business written in the association. Allowances may be provided for existing debits and credits under any automobile insurance plans replaced or terminated as a result of this legislation;

(3)   To reinsure association business;

(4)   To establish the compensation to be paid to any licensed resident insurance agent or broker;

(5)   To join , advise, assist, associate, cooperate and contract with its members and with such organizations , associations, insurers, governmental agencies and others as may be necessary or proper to accomplish the purpose of the association;

(6)   To sue and be sued in the name of the association. No judgement against the association shall create any direct liability in the individual participating members thereof;

(7)   To do anything not specifically enumerated above or related thereto which is otherwise necessary or proper to accomplish the purpose of the association.

Section 38-91-130.   (a)   Within ninety days after the effective date of this act, the director or his designee shall call the first, or organizational meeting, of the association and seat an Advisory Board (hereinafter referred to as the board).

The initial board shall consist of three individuals who are licensed agents or brokers and four consumer representatives to be appointed by the director or his designee, four association members, the Consumer Advocate or his designee, the Director of Public Safety or his designee, and one member from the Department of Insurance. The representative from the Department of Insurance will be a non-voting board member. Association members will be chosen as follows:

One insurer which is a member of and selected by the American Insurance Association;

  One insurer which is a member of and selected by the Alliance of American Insurers

One insurer which is a member of and selected by the National Association of Independent Insurers;

One insurer which is not affiliated with the forgoing organizations and which is elected by such nonaffiliated insurers voting in person or by proxy.

One insurer which is a domestic appointed by the director regardless of affiliation.

The terms of office for the initial and subsequent members of the board shall be as provided in the plan of operation. Such plan shall provide for the appointment by the director of three individual s who are licensed as agents or brokers in this state. The board shall elect a chairperson who is not an insurer representative.

No more than one representative of a domestic insurer may serve on the board at any one time. No insurer may serve on the board if such insurer is a servicing carrier for the association or is a member of a group of insurers which has one insurer as a servicing carrier unless the carrier or group of carriers participates in the voluntary automobile market with a level at least twice the premium level for the Associated Auto Insurers Plan. If a servicing contract is awarded mid-term, then the affected representative must resign at next board meeting.

(b)   Within sixty days after the organizational meeting, the board shall file with the director or his designee for his approval, a proposed plan of operation, consistent with the provisions of this act, which shall provide for the prompt and efficient provision of automobile insurance to qualified applicants unable to procure such insurance through ordinary methods. Distinct and separate plans may be filed for private passenger automobile insurance and commercial automobile insurance. The Plan(s) of operation shall provide for, among other matters, preliminary assessments of members for initial expenses to commence operations, establishment of necessary facilities, the operation of the association, assessments of members to defray losses and expenses, compensation to licensed agents or brokers, eligibility requirements, the coverages and amounts of insurance to be provided and premium payment plans. The plan(s) of operation must be approved by the department as evidenced by a returned copy stamped approved by the department. The plan(s) of operation must include a provision that all meetings of the board will be held in Columbia unless approval is given by the director. Approval must consist of request stamped approved by the department.

(c)   If the director or his designee shall disapprove all or any part of the proposed plan of operation, he shall do so in writing, specifying in what respect the plan of operation fails to meet the requirements of this act. Unless the board takes other appropriate legal action to contest the disapproval, it shall within thirty days thereafter file for his review an appropriately revised plan of operation.

(d)   If, after a hearing, the director or his designee finds that any activity or practice of insurers participating in the association or any other residual market mechanism is unfair, unreasonable, or otherwise inconsistent with the provisions of this title, the director or his designee must issue a written order specifying in what respects such activity or practice is unfair, unreasonable, or otherwise inconsistent with the provisions of this title and require the discontinuance of such activity or practice. The director or his designee may establish a residual market mechanism by written order if the director or his designee finds that the existing residual market mechanism is unfair, unreasonable, or inconsistent with the provisions of this chapter.

(e)   Any revision of the proposed plan of operation or any subsequent amendments to an approved plan of operation shall be subject to the provisions in subsection (c) relating to the initial plan of operation.

(f)   If no plan of operation is submitted to the director or his designee within sixty days after the organizational meeting, the director or his designee shall, after consulting with the representatives of the industry, prepare and promulgate a plan of operation in accordance with the requirements of this act which shall continue in force until superseded by a plan of operation effective in accordance with subsections (b) and (c).

Section 38-91-210.   (a)   Any qualified applicant shall, on or after the effective date of the plan of operation, be entitled to apply for coverage through the association. The application may be made on his behalf by any licensed resident agent or broker authorized by him. Every licensed resident agent or broker shall offer to place insurance through the association for any qualified applicant for whom he is unable to procure such insurance thought he markets available to him. Coverage limits may be provided up to $250,000 per person and $500,000 per accident for bodily injury, $100,000 property damage or a combined single limit of $500,000 and fire, theft, comprehensive and collision coverage. In order to place the insurance of the applicant through the association, the agent or broker on the application must show (I)that the applicant has been refused automobile insurance coverage by at least one insurer, agent, or broker, and (ii) the reasons for refusal. The applicant must by his signature acknowledge this showing.

(b)   The Director of the Department of Insurance or his designee may review each application and provide such application to other qualified insurers. The director or his designee may assign the applicant to any qualified insurer other than the association willing to accept such coverage in the voluntary market. The agent who placed such applicant in the association for automobile insurance coverage shall not receive any commission from this insurance policy or applicant upon placement by the director or his designee of this applicant voluntary market; provided, however, any commission received or paid on the sale of this policy for such applicant must be refunded.

(c)   If the director or his designee determines that any agent or broker has placed ten percent or more of his applications with the association and if the director or his designee further determines that the agent improperly assigned applicants insurable through regular underwriting in the voluntary market to the association, then the director or his designee shall assess any one of, a combination thereof, or all, of the following penalties against the agent or broker: (I) a fine up to five thousand dollars per violation; (ii) suspension of that agent's or broker's right to place coverages with the association, or his binding authority, for a specified period of time; or (iii) suspension or revocation of the agent's or broker's license to offer automobile insurance in the state. In his review of the agent's or broker's residual market business, the director or his designee may considered whether the insurer, agent, or broker is participating in a pattern of unfair discrimination as provided in Section 38-77-122 and Section 38-77-123.

(d)   If the association determines that the applicant is a qualified applicant eligible under the plan of operation, then the association, upon receipt of the premium, or such portion thereof as is prescribed in the plan of operation, shall issue or cause to be issued a policy of automobile insurance and policy periods as are available under the plan of operation as may be requested.

If the director or his designee finds, after a hearing, with respect to any specified geographical area in the state, that a large number of persons are failing to gain the benefits of the association because they do not have the services of an agent or broker, the association shall provide service to assist the public in applying to the association for insurance.

(e)   The Association shall monitor applications submitted to the association in order too ascertain if applications are correct, complete and reflect that actual risk of the insured. The Association shall select a sub-committee of three board members who will review applications. The sub-committee may develop and enforce requirements on applications and if requirements are not met by agents submitting applications, shall suspend the ability of that agent to bind applications for thirty days as well as prescribe audit fees to be applied to applications from particular agents. In the event of three suspensions for a particular agent in any five year period, the ability of that agent to bind applications shall be suspended for three years. In the event of four suspensions for agents in a particular agency in any five year period, the ability of that agency to bind applications shall be suspended for three years. Appeals of the sub-committee shall be made to the full board and then the director or his designee.

The Association shall monitor agents to ensure that insureds are nor forced to purchase other insurance coverages in order for the agent to submit the application to the association. The Association or the Director of the Department of Insurance may require agents to disclose all policies written in conjunction with a policy through the association.

Section 38-91-220.   (a)   The classifications, rules, rating plans and policy forms proposed for use for automobile insurance issued by or through the association may be made by the association or by any licensed rating organization and shall be filed with the director or his designee. Such filings may incorporate by reference any other material on file with the director.

(b)   The classifications, rules, rates, rating plans and policy forms proposed for use for automobile insurance issued by or through the association shall be subject to appropriate statutes concerning approval of filings including Section 38-73-910. The association and every member shall be required to use the classifications, rules, rates, rating plans and policy forms so approved for automobile insurance issued by or through the association for business written through the association.

(c)   The rates used for the Associated Auto Insurers Plan must be actuarially sound, self-supporting and provide adequate premiums to pay losses and expenses associated with the Associated Auto Insurers Plan. Any deficits incurred by the plan should be recovered prospectively by rate changes for the Associated Auto Insurers Plan.

Section 38-91-230.   (A)   Effective March 1, 1999, the association shall file private passenger automobile loss components for automobile insurance coverages based on the total experience of all risks ceded to the South Carolina Reinsurance Facility which are actuarially sound and supported by statistical evidence. The Association shall contract with independent actuarial services to develop such loss component. Due consideration must be given to actual loss experience within the reinsurance facility for the most recent three-year period for which such information is available. The loss component developed under this section is applicable to the risk and territorial classification plan adopted by the association.

(B)   In the initial year of operation, the expense component use to develop the final rate or premium charge when combined with the loss component filed in subsection (A) shall be that expense component filed in accordance with Section 38-73-1420 by the governing board of the Reinsurance Facility.

(c)   After the initial year of operation, rates, rating plans, and rating rules must be based upon the Underwriting Association's loss and expense experience and investment income. The resultant final rate or premium charges must be on an actuarially sound basis and must be calculated to be self-supporting.

Section 38-91-310.   The board shall have all power to direct the operation of the association, except as may be specifically delegated to others or reserved to the members in the plan of operation and may delegate ministerial duties, hire a manager and contract for goods and services from others.

Section 38-91-320.   The association shall file in the office of the department annually, by March first, a statement which contains information with respect to its transactions, condition, operations, and affairs during the preceding year. The statement shall contain such matters and information as are prescribed by the director or his designee and must be in the form he directs. The director or his designee may, at any reasonable time, require the association to furnish additional information with respect to its transactions, condition, or any matter connected therewith considered to be material and of assistance in evaluating the scope, operation, and experience of the association.

Section 38-91-330.   The director or his designee shall make an examination into the financial condition and affairs of the association at least annually and shall file a report thereon with the department, the Governor, and the General Assembly. The expenses of the examination must be paid by the association.

Section 38-91-340.   The servicing carriers for the association may be competitively bid as provided for in this subsection. Separate bidding processes may be done for private passenger and commercial automobile insurance. If the carriers are competitively bid, then the director or his designee must appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. The committee must include incentive and disincentive programs that encourage proper claims processing of policies and claims handling. Insurers, or other vendors in conjunction with a licensed insurer, may submit bids. The committee or committees must evaluate and award contracts pursuant to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section. A serving carrier may be an entity other than a licensed insurance carrier if that entity can prove to the satisfaction of the director that it has the experience and capability to perform the duties of a servicing carrier and if that entity has a licensed automobile insurance carrier to which a policyholder can be issued an automobile insurance policy.

Section 38-91-410.   (a)   Any applicant for an association policy, any person insured under such a policy and any member of the association may request a hearing and ruling the board of the association on any alleged violation of the plan of operation or any alleged improper act or ruling of the association directly affecting it as to coverage or premium or in the case of a member directly affecting its assessment. Any member of the association may request a hearing and ruling on the application to him of the plan of operation. Any such member may request the board to act upon or to rule upon any proposed change in or addition to the plan of operation. The final action of the board in respect of any such proposed changes or additions shall be deemed a formal ruling for purposes of applying sections (b) and (c) below. The request for hearing must be made with thirty days after the date of the alleged violation or improper act or ruling. The hearing shall be held within thirty days after the receipt of the request. The hearing may be held by a panel appointed by the Chairman of the Advisory Board consisting of not less than three members thereof, of which one must be a consumer representatives, and the ruling of a majority of the panel shall be deemed to be the formal ruling of the board, unless the full board on its own motion shall modify or rescind the action of the panel.

(b)   Any formal ruling by the board may be appealed to the director or his designee by filing notice of appeal with the association and director within thirty days after issuance of the ruling.

(c)   The director, after a hearing if requested in the notice of appeal, shall issue an order approving the action or decision, disapproving the action or decision, or directing the board to reconsider the ruling.

(d)   In any hearing held pursuant to this section by the board or the director or his designee, the board or the commissioner as the case may be, shall issue a ruling or order within thirty days after the close of the hearing.

(e)   All rulings or orders of the director or his designee under this section shall be subject to appeal to circuit court.

Section 38-91-420.   The Director of the Department of Insurance shall promulgate regulations to implement the provisions of this chapter."

(B)   Subsection (A) of this SECTION takes effect beginning on March 1, 1999 and must cease to be of any force or effect after February 28, 2003. Beginning on March 1, 2003 and continuing thereafter, the provisions of Article 8, Chapter 77, Title 38 of the 1976 Code as added by SECTION 21 of this act take effect; thus, the residual market mechanism for the State of South Carolina shall convert from a joint underwriting association to an assigned risk plan as outlined herein. The Director of the Department of Insurance is responsible for supervising, administering, and enforcing the transition of the residual market mechanism from the joint underwriting association, as provided in Chapter 91, Title 38, of the 1976 Code as added in SECTION 20 of this act, to the assigned risk plan, as provided in Article 8, Chapter 77, Title 38 of the 1976 Code as added by SECTION 21 of this act. The Director of the Department of Insurance may by order, regulation, or both, direct the transition of the residual market mechanism so that the joint underwriting association cannot accept any business after February 28, 2003, and the assigned risk plan must accept business beginning on March 1, 2003, and continuing thereafter. Any policy currently issued by or written through the joint underwriting association, pursuant to Chapter 91, Title 38, of the 1976 Code as added in SECTION 20 of this act, on February 28, 2003 shall continue to be a valid contract of insurance until the end of the policy period unless canceled by the insurer or insured. Furthermore, the Director of the Department of Insurance may promulgate regulations which he deems necessary to implement this transition, including but not limited to the termination of the joint underwriting association and its wind-up period, and the establishment of the assigned risk plan and its start-up period.

SECTION   21(A).   Title 38, Chapter 77 of the 1976 Code is amended by adding:

Section 38-77-810.   Beginning on March 1, 2003, and continuing thereafter, the director may promulgate reasonable standards for the assignment of risks to insurance carriers and servicing carriers, and an assigned risk plan, hereinafter referred to as the Associated Auto Insurers Plan, must be established by March 1, 2003. More than one assigned risk plan may be established. The director may make reasonable regulations for the assignment of risks to insurance carriers. He shall establish rate classifications, rating schedules, rates, and regulations to be used by insurance carriers issuing assigned risk, policies of motor vehicle liability, physical damage, and underinsured and uninsured motorist insurance in accordance with this chapter as appear to it to be proper in the establishment of rate classifications, rating schedules, rates, and regulations, it shall be guided by the principles and practices which have been established under its statutory authority to regulate motor vehicle liability, physical damage, and medical payments insurance rates and it may act in conformity with its statutory discretionary authority in such matters.

The servicing carriers for the Associated Auto Insurers Plan may be competitively bid as provided for in this section. If the Associated Auto Insurers Plan is competitively bid, then the director or his designee shall appoint a committee or committees of individuals as he considers qualified to establish standards and procedures for the consideration and evaluation of bids. Insurers, or other vendors in conjunction with a licensed automobile insurer, may submit bids. The committee or committees shall evaluate and award contracts pursuant to the bidding process established by the committee or committees, subject to the final approval of the director or his designee. The director may require a bid fee to cover the expenses of implementing this section.

The plan for the Associated Auto Insurers Plan must contain a provision for which licensed agents and/or brokers may be certified such as to bind insurance policies. The manager of the plan shall establish and maintain an electronic means to bind policies immediately. The electronic effective date procedure shall be available only to producers of record who are certified by the plan.

Section 38-77-820.   Every person who has been unable to obtain a motor vehicle liability policy shall have the right to apply to the director to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the State and the insurance carrier, whether a stock or mutual company, reciprocal, or interinsurance exchange, or other type or form of insurance organization, as provided in this chapter shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility as provided in this chapter, and in addition shall provide, at the option of the insured, reasonable motor vehicle physical damage and medical payments coverages, (both as defined in Chapter 77, Title 38) in the same policy. Every person who has otherwise obtained a motor vehicle liability insurance policy, or who has been afforded motor vehicle liability insurance under the laws of this State, but who was not afforded motor vehicle medical payments insurance or motor vehicle physical damage insurance in the same policy, or who was not afforded such coverages under the provisions of that section, shall have the right to apply to the director to have his risk assigned to an insurance carrier, as provided above, licensed to write and writing either or both coverages, and the insurance carrier shall issue a policy providing the coverage or coverages applied for.

Section 38-77-830.   Insurance carriers may satisfy their Associated Auto Insurers Plan obligations by joining with other insurers to establish an Assigned Risk Pool whereby one or more insurers accepts the assignments of other insurers and in return, the other insurers agree to be responsible for any assessment necessary to pay losses associated with the servicing carrier's pool policies. These agreements are subject to approval by the director.

Section 38-77-840.   The director may in its discretion, after reviewing all information pertaining to the applicant or policyholder available from its records, the records of the department, or from other sources:

(1)   refuse to assign an application;

(2)   approve the rejection of an application by an insurance carrier;

(3)   approve the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or

(4)   refuse to approve the renewal or the reassignment of an expiring policy.

Section 38-77-841.   The producer of each Associated Auto Insurers Plan must provide on a form promulgated by the Director of the Department of Insurance the information as follows:

(1)   the name of one other insurance agent and/or insurer representative who has rejected the applicant for automobile insurance;

(2)   if the producer has at least one voluntary market for automobile insurance, the producer must provide the application to at least one voluntary market used by that producer and the application must be rejected;

(3)   the reason why the applicant is submitting an application to the Associated Auto Insurers Plan. Such reason shall include data on traffic violations, accidents and/or reasons as to why the voluntary market has not provided coverage.

Section 38-77-845.   (A)   The director or his designee, or the plan manager, may review each application. Applications which are not complete or accurate, or both, shall be considered in violation of Section 38-57-30 and are subject to penalty. The department shall promulgate regulations to enforce this section. Penalties may include suspension of binding authority, fines up to five thousand dollars, and revocation of license.

(B)   The director or his designee may review each application and provide such application to other qualified insurers upon request who may provide the insurance in the voluntary market at a rate less than the Associated Auto Insurers Plan rate. In such a case, the producer shall not receive commission on the sale of such policy.

(C)   In his review of the agent's or broker's residual market business, the director or his designee may considered whether the insurer, agent, or broker is participating in a pattern of unfair discrimination as provided in Section 38-77-122 and Section 38-77-123.

Section 38-77-850.   Any information filed with the director by an insurance carrier in connection with an assigned risk must be confidential and solely for the information of the director and its staff and must not be disclosed to any person, including an applicant, policyholder, and any other insurance carrier.

Section 38-77-860.   (A)   The director is not required to disclose to any person, including the applicant or policyholder, its reasons for:

(1)   refusing to assign an application;

(2)   approving the rejection of an application by an insurance carrier;

(3)   approving the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or

(4)   refusing to approve the renewal or the reassignment of an expiring policy.

(B)   The director or anyone acting for him is not held liable for any act or omission in connection with the administration of the duties imposed upon it by the provisions of this chapter, except upon proof of actual malfeasance.

Section 38-77-870.   The provisions of this chapter relevant to assignment of risks must be available to nonresidents who are unable to obtain a policy of motor vehicle liability, physical damage, and medical payments insurance with respect only to motor vehicles registered and used in the State.

Section 38-77-880.   Notwithstanding any other provision of law, the provisions of this chapter relating to assignment of risks must be available to carriers by motor vehicle who are required by law to carry public liability and property damage insurance for the protection of the public."

(B)   Subsection (A) of this SECTION takes effect beginning on March 1, 2003 and continuing thereafter; therefore, the residual market mechanism for the State of South Carolina shall convert from a joint underwriting association to an assigned risk plan as outlined herein. The Director of the Department of Insurance is responsible for supervising, administering, and enforcing the transition of the residual market mechanism from the joint underwriting association, as provided in Chapter 91, Title 38, of the 1976 Code as added in SECTION 20 of this act, to the assigned risk plan, as provided in Article 8, Chapter 77, Title 38 of the 1976 Code as added by SECTION 21 of this act. The Director of the Department of Insurance may by order, regulation, or both, direct the transition of the residual market mechanism so that the joint underwriting association cannot accept any business after February 28, 2003, and the assigned risk plan must accept business beginning on March 1, 2003, and continuing thereafter. Any policy currently issued by or written through the joint underwriting association, pursuant to Chapter 91, Title 38, of the 1976 Code as added in SECTION 20 of this act, on February 28, 2003 shall continue to be a valid contract of insurance until the end of the policy period unless canceled by the insurer or insured. Furthermore, the Director of the Department of Insurance may promulgate regulations which he deems necessary to implement this transition, including but not limited to the termination of the joint underwriting association and its wind-up period, and the establishment of the assigned risk plan and its start-up period.

SECTION   22.   Chapter 10, Title 56 of the 1976 Code is amended by adding:

"Section 56-10-225.   (A)   A person whose application for registration and licensing of a motor vehicle has been approved by the department must maintain in the motor vehicle at all times proof that the motor vehicle is an insured vehicle in conformity with the laws of this State and Section 56-10-510.

(B)   The owner of a motor vehicle must maintain proof of financial responsibility in the motor vehicle at all times and it must be displayed upon demand of a police officer or any other person duly authorized by law.

(c)   A person who fails to maintain the proof in his motor vehicle as required by subsection (A) is guilty of a misdemeanor and, upon conviction, is subject to the same punishment as provided by law for failure of the person driving or in control of a motor vehicle to carry the vehicle registration card and to display the registration card upon demand. A person failing to maintain in his vehicle the proof required pursuant to subsection (A), within thirty days of being cited for such failure, shall provide proof of insurance or have his driver's license suspended until satisfactory proof is provided. Further, this proof must be provided every quarter for one year after being cited for driving without proof of liability insurance. Failure to provide this proof when required shall cause his driver's license to be suspended until satisfactory proof is provided.

(D)   The penalties provided in subsection (c) are in addition to, and not in lieu of, any other penalty, of whatever nature, provided by law for failing to act as required in subsection (A)."

SECTION   23.   The 1976 Code is amended by adding:

"Section 38-77-395.   There is no liability on the part of and no cause of action of any nature may arise against the director or his designees, any insurer, or the authorized representatives, agents, and employees of either or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation or refusal to write or renew, for any statement made by any of them in complying with this article, or for the providing of information pertaining thereto, unless the person asserting the cause of action establishes that the person against whom the cause of action is asserted was motivated by express malice or gross negligence."

SECTION   24.   The 1976 Code is amended by adding:

"Section 39-5-200.   (A)   An insurer, its agent, or an insurance broker doing business in this State may not require a person to use a particular insurance premium finance company or other installment plan for which a finance charge or other fee in connection with an installment payment has been or will be imposed.

(B)   An insurer, its agent, or an insurance broker doing business in this State may not refuse to issue a policy of insurance solely because the premiums for the policy have been advanced by a premium finance company licensed in this State.

(c)   An insurer or its agent doing business in this State shall not reduce commission or intimidate or retaliate against a producer, agent, broker, or insured who uses premium financing by denying the producer, agent, broker, or insured the same rights accorded producers, agents, brokers, or insureds who pay premiums in a different manner."

SECTION   25.   Section 38-43-200 of the 1976 Code, as last amended by Section 1 of Act 465 of 1990, is amended to read:

"Section 38-43-200.   (a)   A licensed agent representing an insurer may not pay, directly or indirectly, any commission, brokerage, or other valuable consideration on account of any policy of insurance on any risk in this State to any nonresident or resident not duly licensed to act as agent or broker for the type of insurance involved.

(b)   Notwithstanding the provisions of subsection (a), agents licensed under this title may write insurance at the request of other licensed agents or licensed brokers or licensed nonresident brokers and allow the licensed agents or licensed brokers or licensed nonresident brokers not exceeding one-half of the commissions which they receive on the business written.

(c)   The limitations contained in subsection (b) with respect to the amount of commission which may be allowed other licensed agents or licensed brokers or licensed nonresident brokers do not apply where the insurance written is life insurance or accident and health insurance.

(d)   This section does not prohibit the payment of a fee to a trade or professional association exempt from income tax under Section 501(c) of the Internal Revenue Code.

(e)   Nothing in this section should be construed to prohibit any licensed insurance agent from rebating any portion of his commission collected on automobile insurance premiums to the insured upon that automobile insurance policy.

SECTION   26.   Section 38-55-50 of the 1976 Code, as last amended by Section 2 of Act 465 of 1990, is amended to read:

"Section 38-55-50.   An insurer, its agent, or an insurance broker doing business in this State may not make or permit any discrimination in favor of individuals between insureds of the same class and risk involving the same hazards in the amount of the payment of premiums or rates charged for policies of insurance except as provided in Sections 38-57-140, 38-65-310, and 38-71-1110, in the dividends or other benefits payable, or in any other of the terms and conditions of the contracts it makes. An insurer, its agent, or an insurance broker may not make a contract of insurance or agreement as to a contract other than as plainly expressed in the policy issued. An insurer or its officer, agent, solicitor, or representative or an insurance broker may not pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the taking of insurance any rebate of premium payable on the policy, any special favor or advantage in the dividends or other benefits to accrue from the policy, any paid employment or contract for services of any kind, or any valuable consideration or inducement not specified in the policy contract of insurance, or give, sell, or purchase or offer to give, sell, or purchase, as inducement to the taking of insurance or in connection therewith, any stocks, bonds, or other securities of an insurer or other corporation, association, or partnership, any dividends or profits to accrue from them, or anything of value not specified in the policy.

This section does not prohibit the payment of a fee to a trade or professional association exempt from income tax under Section 501(c) of the Internal Revenue Code.

Further, this section does not prohibit the rebating of any commission to the insured on an automobile insurance policy collected by, or on behalf of, a licensed insurance agent.

SECTION   27.   Beginning on March 1, 2000, the Director of the Department of Insurance shall review annually the impact of the repeal of the anti-rebate statutes concerning the sale of automobile insurance in South Carolina pursuant to this act and shall report annually to the General Assembly to his findings and recommendations, if any, along with the data and supporting information which the director utilized. In his review, the director shall evaluate the following, but is not limited to: the impact on automobile insurance premiums; any pattern of an insurance carrier, agent, broker, and others concerning the practice of rebating; any pattern of discrimination regarding the insured or policyholder, agent, broker, insurance carrier, or others; the impact on the automobile insurance industry, such as additional market entrants, number of insurance carriers, agents, or others who engage in this practice, or any change in the number of companies writing automobile insurance or of agents selling automobile insurance; and any complaints received by or made to the Department of Insurance concerning rebates in the sale of automobile insurance or regarding the repeal of the anti-rebate statutes concerning the sale of automobile insurance in South Carolina. The initial report by the Director of the Department of Insurance shall be submitted to the General Assembly by May 1, 2000, and notwithstanding any other provision of law, the director shall begin collecting data, material, and any information needed for this initial report on March 1, 1999. All subsequent reports shall be submitted to the General Assembly no later than March first of each year. Notwithstanding any other provision of law, the Director of the Department of Insurance shall make his final report on this matter to the General Assembly as provided herein on March 1, 2003, unless otherwise directed by the General Assembly; however, the director may at his discretion continue to submit a report to the General Assembly regarding this matter at any time after March 1, 2003, and shall continue to monitor the impact of the repeal of the anti-rebate statutes concerning the sale of automobile insurance in South Carolina pursuant to this act. The director may promulgate regulations in order to carry out the requirements of this section.

SECTION   28.   If a provision of this act or its application to a person or circumstance is held to be unconstitutional or otherwise invalid, the remainder of this act and the application of that provision to other persons or circumstances are not affected, and it must be conclusively presumed that the General Assembly would have enacted the remainder of this act without the invalid or unconstitutional provision.

SECTION   29.   Beginning March 1, 1999, insurers may nonrenew a policy that they have currently ceded to the South Carolina Reinsurance Facility. This provision does not apply to business written through the designated producers. Insurers may no longer cede to the facility after October 1, 1999. If a provision of this act or its application to a person or circumstance is held to be unconstitutional or otherwise invalid, the remainder of this act and the application of that provision to other persons or circumstances are not affected, and it must be conclusively presumed that the General Assembly would have enacted the remainder of this act without the invalid or unconstitutional provision. Insurers are not required to cede to the facility after March 1, 1999, and business ceded after March 1, 1999, must be renewal business to the facility. All renewal business ceded after March 1, 1999, must be ceded at the rate level approved for the reinsurance facility after combining its expense component with the loss component referenced in Section 38-77-596.

SECTION   30.   Article 5 of Chapter 77, Title 38 of the 1976 Code is repealed effective January 1, 2006.

SECTION   31.   Sections 38-73-450, 38-73-455, 38-73-457, 38-73-460, 38-73-465, 38-73-720, 38-73-730, 38-73-731, 38-73-735, 38-73-750, 38-73-760, 38-73-770, 38-73-775, 38-77-110, 38-77-111, 38-77-115, 38-77-145, 38-77-285, 38-77-360, 38-77-600, 38-77-605, 38-77-610, 38-77-620, and 38-77-625 and Article 9 of Chapter 77 of Title 38 of the 1976 Code are repealed.

SECTION   32.   The provisions of this act take effect as follows: (a) Sections 1 and 2 on February 1, 1999; (b) Sections 4 through 17 and Sections 19, 23, 25, 26, 27, 29 and 31 on March 1, 1999; and (c) Sections 3, 18, 20, 21, 22, 24, 28 and 30 upon approval by the Governor, except as may be otherwise specifically provided in any of those sections.

Nonrenewal notices may be sent before March 1, 1999, for policies renewing on or after March 1, 1999./

Amend title to conform.

/s/Glenn F. McConnell             /s/Harry F. Cato
/s/C. Tyrone Courtney             /s/Herbert Kirsh
/s/Ernest L. Passailaigue, Jr.    /s/Lynn Seithel
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

I am opposed to the adoption of the conference report on Automobile Insurance Reform as written. I abhor the inequities and unfairness of the recoupment fees. I also strongly resent the misdeeds of the Reinsurance Facility. I believe that legislation should be adopted to change the insurance industry in South Carolina to the betterment of safe drivers of our State.

As reported to the Senate, this legislation allows insurance companies annual rate increases of up to 7% without rate hearings/approval by the insurance department. Further, I understand that a multi-tiered approach will be installed. I have very serious misgivings that "good" drivers will receive rate increases merely because of their driver classification.

It is my further understanding that a compromise assigned risk/joint underwriting framework will be utilized over the next several years.

I believe that additional information and projected rate increases for various driver classifications should be discussed and known as best as possible. Correspondingly, drivers with multiple offenses and/or violations have been projected to decrease.

I cannot support this projected rate structure as has been explained. I, therefore, have voted "No" on this conference report hoping that further consumer protections be included before passage.

S. 83 -- Senator Rose: A BILL TO AMEND ARTICLE 11, CHAPTER 7, TITLE 20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISPOSITION OF CASES BEFORE THE FAMILY COURT, BY ADDING SECTION 20-7-1530, SO AS TO PROVIDE FACTORS WHICH MUST BE CONSIDERED IN DETERMINING THE CUSTODY OF MINOR CHILDREN; AND TO ADD SUBARTICLE 2, SO AS TO PROVIDE FOR SPECIAL VISITATION PROVISIONS WHICH A COURT MAY ORDER WHEN AWARDING VISITATION IN CASES INVOLVING DOMESTIC AND FAMILY VIOLENCE.

The House returned the Bill with amendments.

On motion of Senator RUSSELL, 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. 542 -- Senators Fair and Setzler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-31-45 SO AS TO ESTABLISH A PROCEDURE FOR THE STATE BOARD OF EDUCATION TO ADD TEXTBOOKS TO THE LIST OF TEXTBOOKS APPROVED FOR USE IN THE PUBLIC SCHOOLS OF THIS STATE UPON REQUEST OF A SPECIFIED NUMBER OF SCHOOL SUPERINTENDENTS.

The House returned the Bill with amendments.

On motion of Senator SETZLER, 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. 616 -- Senators Holland, Lander, McConnell and Giese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-1350 SO AS TO PROVIDE FOR MEDICAL EXAMINATIONS OF VICTIMS OF SEXUAL ASSAULTS; TO AMEND SECTION 16-3-1210, AS AMENDED, RELATING TO PERSONS ELIGIBLE FOR AWARDS FROM THE VICTIM'S COMPENSATION FUND, SO AS TO DELETE THE PROVISIONS THAT MAKE CERTAIN HEALTH CARE AND MEDICAL FACILITIES ELIGIBLE FOR AWARDS TO COVER CERTAIN COSTS; TO AMEND ARTICLE 15, CHAPTER 3, TITLE 16, RELATING TO THE VICTIM'S AND WITNESS'S BILL OF RIGHTS, SO AS TO DELETE THE PROVISIONS OF THIS ARTICLE AND REPLACE IT WITH PROVISIONS PROVIDING FOR VICTIM AND WITNESS SERVICES; AND TO PROVIDE A SEVERABILITY PROVISION.

The House returned the Bill with amendments.

On motion of Senator McCONNELL, 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. 811 -- Senator Holland: A CONCURRENT RESOLUTION TO PROVIDE THAT PURSUANT TO ARTICLE III, SECTION 21 OF THE CONSTITUTION OF THIS STATE AND SECTION 2-1-180 OF THE 1976 CODE, WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 5, 1997, EACH HOUSE SHALL STAND ADJOURNED TO MEET AT 11:00 A.M. ON TUESDAY, JUNE 17, 1997, AND TO CONTINUE, IF NECESSARY, UNTIL WEDNESDAY, JUNE 18, 1997, NOT LATER THAN 5:00 P.M. FOR THE CONSIDERATION OF SPECIFIED MATTERS; AND TO PROVIDE THAT WHEN EACH HOUSE ADJOURNS ON WEDNESDAY, JUNE 18, 1997, NOT LATER THAN 5:00 P.M., THE GENERAL ASSEMBLY SHALL STAND ADJOURNED SINE DIE.

The House returned the Resolution with amendments.

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

H. 3155 -- Rep. Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO MAKE IT UNLAWFUL, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED BY LAW, TO BUY, SELL, OR POSSESS FOR SALE ANY WILDLIFE NATIVE TO THIS STATE, INCLUDING LIVE OR DEAD WHOLE ANIMALS OR PARTS OF SUCH ANIMALS, AND TO PROVIDE A PENALTY.

The House returned the Bill with amendments.

Senator PEELER explained the House amendments.

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

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 3155 -- Rep. Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO MAKE IT UNLAWFUL, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED BY LAW, TO BUY, SELL, OR POSSESS FOR SALE ANY WILDLIFE NATIVE TO THIS STATE, INCLUDING LIVE OR DEAD WHOLE ANIMALS OR PARTS OF SUCH ANIMALS, AND TO PROVIDE A PENALTY.
asks for a Committee of Conference, and has appointed Reps. Rhoad, Witherspoon and Barfield of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT Pro Tempore appointed Senators PEELER, WALDREP and THOMAS of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

H. 3155 -- Rep. Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO MAKE IT UNLAWFUL, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED BY LAW, TO BUY, SELL, OR POSSESS FOR SALE ANY WILDLIFE NATIVE TO THIS STATE, INCLUDING LIVE OR DEAD WHOLE ANIMALS OR PARTS OF SUCH ANIMALS, AND TO PROVIDE A PENALTY.

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

Senator PEELER spoke on the report.

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators PEELER, THOMAS and WALDREP 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 PEELER, the Report of the Committee of Free Conference to H. 3155 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3155 -- Rep. Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO MAKE IT UNLAWFUL, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED BY LAW, TO BUY, SELL, OR POSSESS FOR SALE ANY WILDLIFE NATIVE TO THIS STATE, INCLUDING LIVE OR DEAD WHOLE ANIMALS OR PARTS OF SUCH ANIMALS, AND TO PROVIDE A PENALTY.
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 50-1-290.   It is unlawful to buy, sell, trade, or barter or offer for sale or offer to buy any protected wild mammals and birds or parts of mammals or birds except as specifically allowed by this title. Except as provided in Section 50-11-170, this section shall not apply to the sale of rabbits and grey squirrels taken during the legally established seasons. A person violating this section is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred dollars and not more than five hundred dollars or imprisoned up to thirty days."

SECTION   2.   Section 50-11-1920 of the 1976 Code, as amended by Section 1262, Act 181 of 1993, is further amended to read:

"Section 50-11-1920.   (A)   The proprietor of any an eating establishment who sells may sell or offers offer for sale venison only if the venison is nonnative from farm-raised deer and is processed through a government-approved facility. Before selling venison or offering it for sale, the eating establishment shall obtain a permit from the department at no cost. The eating establishment shall maintain adequate records to provide officials of the department information as to the source of the venison.

(B)   The sale of whitetail deer, wild or farm-raised, is prohibited.

(C)   A person who violates this section is guilty of a misdemeanor and, upon conviction, must be punished as for a violation of Section 50-11-1910.

(D)   The provisions of this section do not apply to private functions unless the private function is catered by an eating establishment or catering company for a fee.

(E)   Venison which is permitted to be sold under the provisions of this section may be sold as a separately prepared item or when mixed with other items offered by the establishment and then prepared and served."

SECTION   3.   Section 50-11-1920 of the 1976 Code, as amended by Section 1262, Act 181 of 1993, is further amended to read:

"Section 50-11-1920.   (A)   The proprietor of any an eating establishment who sells may sell or offers offer for sale venison only if the venison is nonnative from farm-raised deer and is processed through a government-approved facility. Before selling venison or offering it for sale, the eating establishment shall obtain a permit from the department at no cost. The eating establishment shall maintain adequate records to provide officials of the department information as to the source of the venison.

(B)   The sale of whitetail deer, wild or farm-raised, is prohibited.

(C)   A person who violates this section is guilty of a misdemeanor and, upon conviction, must be punished as for a violation of Section 50-11-1910.

(D)   The provisions of this section do not apply to private functions unless the private function is catered by an eating establishment or catering company for a fee.

(E)   Venison which is permitted to be sold under the provisions of this section may be sold as a separately prepared item or when mixed with other items offered by the establishment and then prepared and served.

(F)   The Department of Natural Resources shall promulgate regulations to enforce the provisions of this section."

SECTION   4.   This act takes effect May 1, 1998./

Amend title to read:
/TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO MAKE IT UNLAWFUL, EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED BY LAW, TO BUY, SELL, OR POSSESS FOR SALE ANY WILDLIFE NATIVE TO THIS STATE, INCLUDING LIVE OR DEAD WHOLE ANIMALS OR PARTS OF SUCH ANIMALS, AND TO PROVIDE A PENALTY; AND TO AMEND SECTION 50-11-1920, AS AMENDED, RELATING TO THE PROHIBITION ON THE SALE OF VENISON IN EATING ESTABLISHMENTS, SO AS TO AUTHORIZE THE SALE UNDER CERTAIN CONDITIONS; AND TO REQUIRE THE DEPARTMENT OF NATURAL RESOURCES TO PROMULGATE REGULATIONS TO ENFORCE THE PROVISIONS OF THIS SECTION./.

/s/Hon. Harvey S. Peeler          /s/Hon. William D. Witherspoon
/s/Hon. David L. Thomas           /s/Hon. Thomas N. Rhoad
/s/Hon. Robert L. Waldrep         /s/Hon. Liston D. Barfield
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

H. 3744 -- Rep. Wilkins: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO FORMULATE RECOMMENDATIONS FOR THE GENERAL ASSEMBLY TO CONSIDER FOR FUTURE LEGISLATION CONCERNING DRUG IMPAIRED INFANTS AND THE TREATMENT METHODS, COMMITMENT PROCEDURES, AND THE PROSECUTION OF MOTHERS OF DRUG IMPAIRED INFANTS, AND ALL OTHER RELATED ISSUES CONCERNING DRUG IMPAIRED INFANTS AND THEIR MOTHERS.

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

Senator ROSE spoke on the report.

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators ROSE, SHORT and WASHINGTON 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 ROSE, the Report of the Committee of Free Conference to H. 3744 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3744 -- Rep. Wilkins: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO FORMULATE RECOMMENDATIONS FOR THE GENERAL ASSEMBLY TO CONSIDER FOR FUTURE LEGISLATION CONCERNING DRUG IMPAIRED INFANTS AND THE TREATMENT METHODS, COMMITMENT PROCEDURES, AND THE PROSECUTION OF MOTHERS OF DRUG IMPAIRED INFANTS, AND ALL OTHER RELATED ISSUES CONCERNING DRUG IMPAIRED INFANTS AND THEIR MOTHERS.
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 resolving words and inserting therein the following:

/That a study committee be appointed to study the treatment, commitment, and prosecution of mothers of drug impaired infants and related issues including, but not limited to, a review of Title 44 of the South Carolina Code of Laws, and propose a comprehensive approach to this problem. The committee is composed of:

(1)   one member of the Senate Judiciary Committee and one member of the Senate Medical Affairs Committee appointed by the President Pro Tempore and one member of the House Judiciary Committee and one member of the House Medical, Military, Public and Municipal Affairs Committee appointed by the Speaker of the House of Representatives; and

(2)   the following representatives or their designees: the Attorney General, the head of the prosecution section of the Attorney General's Office, the President of the South Carolina Solicitors Association, the President of the South Carolina Medical Association, the President of the South Carolina Hospital Association, the President of the South Carolina Law Enforcement Officers Association, the Director of the Department of Health and Environmental Control, the Director of the Department of Alcohol and Other Drug Abuse Services, the Director of the Department of Social Services, the Chief of the South Carolina State Law Enforcement Division, the Director of the South Carolina Legal Services Association, the President of the South Carolina Chapter of the American College of Obstetrics and Gynecology, and the President of the South Carolina Public Defenders Association.

The committee shall be chaired jointly by a senator designated by the President Pro Tempore from his appointees and a representative designated by the Speaker of the House of Representatives from his appointees. The committee shall submit its report and recommendations to the General Assembly as soon as possible but no later than the beginning of the 1998 legislative session at which time the committee is dissolved. The committee must be staffed by personnel designated by the Speaker of the House of Representatives from the House staff and personnel designated by the President Pro Tempore from the Senate staff./

Amend title to conform.

/s/Michael T. Rose                /s/W. Jeffrey Young
/s/McKinley Washington, Jr.       /s/William F. Cotty
/s/Linda H. Short                 /s/Jerry N. Govan, Jr.
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 4, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it requested and was granted Free Conference Powers and have appointed Reps. Young, Cotty and Govan of the Free Conference on the part of the House on:
H. 3744 -- Rep. Wilkins: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO FORMULATE RECOMMENDATIONS FOR THE GENERAL ASSEMBLY TO CONSIDER FOR FUTURE LEGISLATION CONCERNING DRUG IMPAIRED INFANTS AND THE TREATMENT METHODS, COMMITMENT PROCEDURES, AND THE PROSECUTION OF MOTHERS OF DRUG IMPAIRED INFANTS, AND ALL OTHER RELATED ISSUES CONCERNING DRUG IMPAIRED INFANTS AND THEIR MOTHERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on the following:
H. 3744 -- Rep. Wilkins: A CONCURRENT RESOLUTION TO ESTABLISH A STUDY COMMITTEE TO FORMULATE RECOMMENDATIONS FOR THE GENERAL ASSEMBLY TO CONSIDER FOR FUTURE LEGISLATION CONCERNING DRUG IMPAIRED INFANTS AND THE TREATMENT METHODS, COMMITMENT PROCEDURES, AND THE PROSECUTION OF MOTHERS OF DRUG IMPAIRED INFANTS, AND ALL OTHER RELATED ISSUES CONCERNING DRUG IMPAIRED INFANTS AND THEIR MOTHERS.
Very respectfully,
Speaker of the House

Received as information.

H. 3563 -- Reps. Sandifer, Parks, Canty and Lanford: A BILL TO AMEND CHAPTER 19, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF EMBALMERS AND FUNERAL DIRECTORS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40 AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF EMBALMERS AND FUNERAL DIRECTORS.

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.

H. 3823 -- Reps. Carnell, Klauber, Stille and Parks: A BILL TO AMEND SECTION 56-1-640, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REPORTING OF CERTAIN CONVICTIONS OF A PERSON FROM ANOTHER STATE TO THE LICENSING AUTHORITY OF HIS HOME STATE, SO AS TO PROVIDE THAT CERTAIN OTHER STATES SHALL REPORT CERTAIN CONVICTIONS OF A PERSON FROM SOUTH CAROLINA THAT OCCUR IN THE OTHER STATE TO THE DEPARTMENT OF PUBLIC SAFETY WITHIN FIVE YEARS OF THE CONVICTION.

The House returned the Bill with amendments.

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

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 3823 -- Reps. Carnell, Klauber, Stille and Parks: A BILL TO AMEND SECTION 56-1-640, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REPORTING OF CERTAIN CONVICTIONS OF A PERSON FROM ANOTHER STATE TO THE LICENSING AUTHORITY OF HIS HOME STATE, SO AS TO PROVIDE THAT CERTAIN OTHER STATES SHALL REPORT CERTAIN CONVICTIONS OF A PERSON FROM SOUTH CAROLINA THAT OCCUR IN THE OTHER STATE TO THE DEPARTMENT OF PUBLIC SAFETY WITHIN FIVE YEARS OF THE CONVICTION.
asks for a Committee of Conference, and has appointed Reps. Stuart, Walker and Carnell of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT Pro Tempore appointed Senators LEATHERMAN, COURTNEY and HUTTO of the Committee of
Conference on the part of the Senate and a message was sent to the House accordingly.

H. 3919 -- Rep. Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3365 SO AS TO ALLOW A TAXPAYER WHO OPERATES A QUALIFYING DISTRIBUTION FACILITY TO USE INCOME TAX CREDITS AGAINST OTHER STATE TAX LIABILITIES OTHER THAN PROPERTY TAX; TO AMEND SECTION 12-6-3490, RELATING TO THE LICENSE TAX CREDIT FOR CASH PAID TO PROVIDE INFRASTRUCTURE FOR A QUALIFIED PROJECT, SO AS TO ALLOW A PUBLICLY BUILT OFFICE PARK TO QUALIFY AS A QUALIFYING PROJECT AND DEFINE A QUALIFYING PROJECT; AND TO AMEND SECTION 12-14-60, RELATING TO THE ECONOMIC IMPACT ZONE INVESTMENT TAX CREDIT, SO AS TO ALLOW A TEN YEAR CARRY-OVER OF THE CREDIT.

The House returned the Bill with amendments.

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

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 3919 -- Rep. Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3365 SO AS TO ALLOW A TAXPAYER WHO OPERATES A QUALIFYING DISTRIBUTION FACILITY TO USE INCOME TAX CREDITS AGAINST OTHER STATE TAX LIABILITIES OTHER THAN PROPERTY TAX; TO AMEND SECTION 12-6-3490, RELATING TO THE LICENSE TAX CREDIT FOR CASH PAID TO PROVIDE INFRASTRUCTURE FOR A QUALIFIED PROJECT, SO AS TO ALLOW A PUBLICLY BUILT OFFICE PARK TO QUALIFY AS A QUALIFYING PROJECT AND DEFINE A QUALIFYING PROJECT; AND TO AMEND SECTION 12-14-60, RELATING TO THE ECONOMIC IMPACT ZONE INVESTMENT TAX CREDIT, SO AS TO ALLOW A TEN YEAR CARRY-OVER OF THE CREDIT.
asks for a Committee of Conference, and has appointed Reps. Boan, Law and Young-Brickell of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT Pro Tempore appointed Senators LEVENTIS, McCONNELL and REESE of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 3919 -- Rep. Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3365 SO AS TO ALLOW A TAXPAYER WHO OPERATES A QUALIFYING DISTRIBUTION FACILITY TO USE INCOME TAX CREDITS AGAINST OTHER STATE TAX LIABILITIES OTHER THAN PROPERTY TAX; TO AMEND SECTION 12-6-3490, RELATING TO THE LICENSE TAX CREDIT FOR CASH PAID TO PROVIDE INFRASTRUCTURE FOR A QUALIFIED PROJECT, SO AS TO ALLOW A PUBLICLY BUILT OFFICE PARK TO QUALIFY AS A QUALIFYING PROJECT AND DEFINE A QUALIFYING PROJECT; AND TO AMEND SECTION 12-14-60, RELATING TO THE ECONOMIC IMPACT ZONE INVESTMENT TAX CREDIT, SO AS TO ALLOW A TEN YEAR CARRY-OVER OF THE CREDIT.
Very respectfully,
Speaker of the House

Received as information.

S. 795 -- Senators Saleeby and Leventis: A CONCURRENT RESOLUTION TO URGE THE FEDERAL RESERVE TO MAINTAIN ITS PROCESSING CENTER IN COLUMBIA, SOUTH CAROLINA, AND TO CONSOLIDATE SERVICES INTO THE COLUMBIA OFFICE BECAUSE OF ITS DEMONSTRATED EFFICIENT OPERATION AND ITS ESTABLISHED AND HIGHLY QUALIFIED EMPLOYEES RATHER THAN RELOCATING THE CENTER TO CHARLOTTE, NORTH CAROLINA.

Returned with concurrence.

Received as information.

S. 815 -- Senator McConnell: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO MR. WILLIAM "BILLY" R. JUDD OF CHARLESTON COUNTY FOR HIS OUTSTANDING PUBLIC SERVICE DEDICATED TO PRESERVING THE CIVIL WAR EARTHWORKS ON JAMES ISLAND.

Returned with concurrence.

Received as information.

S. 269 -- Senators Setzler and Moore: A BILL TO AMEND CHAPTER 7, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION AND LICENSURE OF BARBERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR PROFESSIONAL AND OCCUPATIONAL BOARDS AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF BARBERS.

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 Pro Tempore appointed Senators SETZLER, MOORE and ALEXANDER 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. 269 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 269 -- Senators Setzler and Moore: A BILL TO AMEND CHAPTER 7, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION AND LICENSURE OF BARBERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR PROFESSIONAL AND OCCUPATIONAL BOARDS AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF BARBERS.
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.   Chapter 7, Title 40 of the 1976 Code is amended to read:

Section 40-7-10.   Any one or combination of the following practices, when done for pay, shall constitute the practice of barbering within the purview of this chapter:

(1)   Shaving or trimming the beard, cutting the hair, or hairstyling;

(2) Giving facial or scalp massages or treatments with oils, creams, lotions and other preparations, either by hand or mechanical appliances;

(3) Singeing, shampooing, or dyeing the hair or applying hair tonics or chemicals to wave, relax, straighten, or bleach the hair;

(4) Applying cosmetic preparations, antiseptics, powders, oils, clays, and lotions to the scalp, neck or face; and

(5) Cutting, shaping, fitting, styling and service of men's hair pieces, toupees and wigs.

Section 40-7-15.   No person may use chemicals to wave, relax, straighten, or bleach the hair in a barber shop unless a license as a master haircare specialist has been issued to him by the board.

No person may be issued a license by the board to practice as a master haircare specialist unless he is otherwise qualified under the provisions of Sections 40-7-100 and 40-7-120 and qualifies as a barber after July 1, 1985, and has passed a satisfactory written and practical examination conducted by the board to determine his fitness to use chemicals to wave, relax, straighten, or bleach the hair.

Section 40-7-16.   Notwithstanding any other provision of this chapter, after June 30, 1990, the amounts of all fees provided for under this chapter must be established by the board by regulation, and the board may, after that date, increase the amount of any such fee by not more than fifteen percent a year.

Section 40-7-17.   Any registered barber who has used chemicals to wave, relax, straighten, or bleach the hair prior to July 1, 1985, may receive a temporary master haircare specialist license without the examination required in Section 40-7-15 by notifying the board and certifying sixty hours of on-the-job experience with chemical applications. The temporary license shall remain in effect until the Board of Barber Examiners is reauthorized pursuant to the Reorganization Commission procedures.

Section 40-7-18.   Any person who is licensed as a master haircare specialist on May 13, 1986 may have his license renewed annually upon payment of the required license fee.

Section 40-7-19.   The fees which may be assessed and collected by the board under this chapter are those which are enumerated in this section. The amounts of those fees, as also set forth in this section, are applicable through June 30, 1990, at which time the amounts of the fees must be promulgated in accordance with the provisions of Section 40-7-16. No new fee may be established except by enactment of the General Assembly. The fees and their amounts are the following:

(1)   Master hair care specialist renewal fee   $ 45.00

(2)   Registered barber license renewal fee   $ 35.00

(3)   Barbershop license renewal fee   $ 35.00

(4)   Apprentice barber license renewal fee   $ 25.00

(5)   Barber assistant license renewal fee

(shampooist/manicurist)   $ 25.00

(6)   Master hair care exam fee   $ 40.00

(7)   Registered barber exam fee   $ 40.00

(8)   Apprentice barber exam fee   $ 40.00

(9)   Barber assistant exam fee   $ 40.00

(10)   Master hair care out-of-state exam fee   $ 45.00

(11)   Registered barber out-of-state exam fee   $ 45.00

(12)   Apprentice barber out-of-state exam fee   $ 45.00

(13)   Barber assistant out-of-state exam fee   $ 45.00

(14)   Restoration fees (late fees) for every license   $ 25.00

(15)   Teacher's certificate renewal fee   $ 60.00

(16)   Barber school renewal fee   $ 70.00

(17)   New barbershop fee   $100.00

(18)   New barber school fee   $150.00

(19)   Student permit fee   $ 25.00

(20)   Barber assistant permit fee

(shampooist/manicurist)   $ 25.00

(21)   Reciprocity fee   $100.00

(22)   Teacher's exam fee   $100.00

(23)   On-the-job-training instructor exam fee   $ 40.00

Section 40-7-20.   No person or combination of persons shall for pay, either directly or indirectly, practice or attempt to practice barbering as herein defined in this State without a certificate of registration either as a registered apprentice or as a registered barber, issued pursuant to the provisions of this chapter by the State Board of Barber Examiners.

Section 40-7-25.   No person shall give shampoos or manicures in a barber shop unless a license as a barber assistant has been issued to him by the Board of Barber Examiners.

No person shall be issued a license to practice as a barber assistant by the Board unless such person:

(1)   Is at least sixteen years of age;

(2)   Passes a physical examination prescribed by the Board of Health and Environmental Control;

(3)   Has been issued a student permit and completed six weeks' training as a bar assistant under the supervision of a registered barber who has qualified to train an assistant barber under the laws governing barber training in this State;

(4)   Has been examined by the Board and has been determined to be qualified to practice the giving of shampoos and manicures only.

All barber assistants are required to work under the direct supervision of a licensed registered barber.

The fee to be paid by an applicant for an examination to practice as a barber assistant is the amount established by the board by regulation, and the fee must accompany the application. The annual license fee for a barber assistant is the amount established by the board by regulation, and this license must be renewed June thirtieth of each year. Failure to renew as of July first of each year shall result in suspension of license, and the applicant must be reexamined by the board and pay the required fees.

The Board shall promulgate regulations for the purpose of examination, supervision and licensing of such persons.

All barber assistants employed as of February 1, 1976, may within sixty days obtain a barber assistant license without further training or examination by paying the required fee.

Section 40-7-30.   The State Board of Barber Examiners is established to consist of five members appointed by the Governor with the advice and consent of the Senate for terms of four years and until successors are appointed and qualify. Four members must be experienced barbers who have engaged in the practice of barbering for at least five years in the State. At least two of the experienced barbers must be licensed as master haircare specialists. One member must be a public member not connected with the practice of barbering. The public member has all the rights and privileges of the other board members except he may not participate in the examination of an applicant for a license. The Governor may remove a member for good cause shown and appoint a member to fill the unexpired term.

Section 40-7-40.   Each Board member shall receive for each day actually engaged in the duties of his office a per diem not to exceed fifty dollars plus actual expenses for food and lodging and his actual mileage at the rate prescribed for state employees payable from revenue from fees collected pursuant to the provisions of this chapter.

Section 40-7-50.   The Board shall maintain a suitable office in Columbia and shall adopt and use a common seal for the authentication of its orders and records.

Section 40-7-60.   The board shall elect its own officers. The Director of the Department of Labor, Licensing, and Regulation, pursuant to Section 40-73-15, shall appoint a secretary. The secretary shall receive an annual salary, such salary, as well as all other expenses of the board, to be paid only out of the revenue derived from fees collected under the provisions of this chapter. The secretary shall keep and preserve all records of the board, issue all necessary notices to the barbers of the state and perform such other duties, clerical and otherwise, as may be imposed upon him by the Director of the Department of Labor, Licensing, and Regulation. The secretary shall turn over, as required by law, all moneys collected by him and render full, itemized and detailed reports therewith, as required by law. He shall, before entering upon the duties of his office, execute to the state a satisfactory bond, with a duly licensed bonding company in this State, as surety or with other acceptable surety, such bond to be in the penal sum of not less than ten thousand dollars and conditioned upon the faithful performance of the duties of his office.

The Director of the Department of Labor, Licensing, and Regulation may employ such staff as he deems necessary to carry out functions of the board as prescribed in this chapter subject to funds available to the board.

Section 40-7-70.   It shall be unlawful for any member, inspector or employee of the Board, to own any interest in a barber college or any company which deals in sales or services to barbershops.

Section 40-7-80. [Section repealed]

Section 40-7-90. [Section repealed]

Section 40-7-100.   No person shall be issued a certificate of registration as a registered apprentice by the Board:

(1)   Unless such person is at least sixteen years of age and has achieved a ninth grade education or its equivalent;

(2)   Unless such person passes a satisfactory physical examination prescribed by the State Department of Health and Environmental Control;

(3)   Unless such person has completed at least nine months' course of fifteen hundred hours in a reliable barber school or college approved by the Board; or twelve months' training under the personal supervision of a registered barber who, in addition, has been examined by the South Carolina Board of Barber Examiners and has been determined to be qualified to train student barbers under laws governing barber training in the State; and

(4)   Unless the person passes the examination prescribed by the board and pays the required fee.

Section 40-7-110.   No registered apprentice, registered under the provisions of this chapter, shall operate a barbershop in the State but every such apprentice must serve his period of apprenticeship under the direct supervision of a registered barber, as required by Section 40-7-120.

Section 40-7-115.   (A)   A barber training a student in a shop is required to have had three years' experience as a registered barber and must have been examined by the South Carolina Board of Barber Examiners and determined to be qualified to train a student barber under laws governing barber training in the State. The fee to be paid by the registered barber for an examination to be qualified to train a student in a shop is fifty dollars, and the fee must accompany the application. Barbers found qualified after examination must be issued an instructor's license which must be renewed as of June thirtieth of each year. The annual renewal fee is fifty dollars.

(B)   A registered barber may train no more than two students at a time if each student has a chair at all times.

Section 40-7-120.   Any person to practice barbering as a registered barber shall have worked as a registered apprentice for a period of at least twelve months under the direct supervision of a registered barber and this fact must be proved to the Board by the sworn affidavit of three registered barbers or by such other method of proof as the Board may prescribe and deem necessary. A certificate of registration as a registered barber shall be issued by the Board to any person who is qualified under the provisions of this chapter and meets the following qualifications:

(1)   Is   qualified under the provisions of Section 40-7-100;

(2)   Is at least seventeen years of age;

(3)   Passes a satisfactory physical examination as prescribed by the Board;

(4)   Has practiced as a registered apprentice for a period of twelve months under the immediate personal supervision of a registered barber and, upon proof that the period of twelve months has been completed and that such practice has included a total of one thousand nine hundred twenty hours, the apprentice shall be required by law to take the registered barber examination before the next fiscal year, as no further apprentice license may be issued;

(5)   Has passed a satisfactory examination, conducted by the Board, to determine his fitness to practice barbering, such examination to be so prepared and conducted as to determine (a) whether or not the applicant is possessed of the requisite skill in such trade to properly perform all the duties thereof, including the ability of the applicant in his preparation of tools, shaving, haircutting and all the duties and services incident thereto and (b) has sufficient knowledge concerning diseases of the face, skin and scalp to avoid the aggravation and spreading in the practice of such trade.

Section 40-7-125.   A certificate of registration as a master hair care specialist may be issued to a cosmetologist licensed under Chapter 13 of this title who:

(1)   has satisfied educational requirements prescribed by the board through regulations;

(2)   has passed successfully the examination required by the board.

Section 40-7-130.   Each applicant for an examination shall make application to the Board on blank forms prepared and furnished by the secretary, such application to contain proof under the applicant's oath of the particular qualifications of the applicant, and pay to the Board the required fee. All applications for examination must be filed with the secretary at least fifteen days prior to the actual taking of the examination by the applicant.

Section 40-7-140.   The Board shall conduct examinations of applicants for certificates of registration to practice as registered barbers and of applicants for certificates of registration to practice as registered apprentices not less than four times each year, at such times and places as will prove most convenient and as the Board may determine. The examination of applicants for certificates of registration as registered barbers and registered apprentices shall include such practical demonstrations and oral and written tests as the Board may determine.

Section 40-7-150.   Whenever the provisions of this chapter shall have been complied with, the Board shall issue or have issued to the applicant a certificate of registration as a registered barber or as a registered apprentice, as the case may be.

Section 40-7-160.   A person who has practiced barbering in another state or country which has licensing requirements which meet or exceed South Carolina's, as determined by the board, and who moves into this State, before practicing barbering in South Carolina, shall present:

(1)   notarized statements from previous employers establishing that he has been licensed and actively has practiced barbering for the preceding two calendar years;

(2)   a letter from the licensing board of the state or country from which he is moving verifying that he is licensed and in good standing with the board;

(3)   a certificate that he has read, understands, and will abide by the regulations and statutes of this State;

(4)   a completed application for a certificate of registration upon a form provided by the board.

Upon receipt of these documents the board shall issue to him a certificate of registration to practice barbering in this State. A fee in the amount established by the board by regulation must be submitted with the application.

Section 40-7-170.   All barbershops must be registered with the board. The registration and inspection fee for all new shops is the amount established by the board by regulation. Applications for registration and inspection of new shops must be made at least fifteen days before opening the shop. No new shop may be operated until all fees are paid and the shop has passed inspection. Annual renewal fees for shop registration are as established by the board by regulation and must be renewed as of the thirtieth day of June of each year. The fee for registration of an expired shop certificate is the amount established by the board by regulation.

Section 40-7-180.   The fee to be paid by an applicant for a student permit to train as a student barber is the amount established by the board by regulation, and the fee must accompany the application. The fee to be paid by an applicant for an examination to practice barbering as an apprentice is the amount established by the board by regulation, and the fee must accompany the application. The annual license fee of an apprentice is the amount established by the board by regulation. The fee to be paid by an applicant for an examination to determine his fitness to receive a certificate of registration as a registered barber is the amount established by the board by regulation, and the fee must accompany the application. The annual license fee of a registered barber is the amount established by the board by regulation. All licenses for apprentice and registered barbers must be renewed as of the thirtieth day of June of each year. The fee of registration of an expired certificate for apprentice barbers is the amount established by the board by regulation, and the fee for registration of an expired certificate for registered barbers is the amount established by the board by regulation. The board may regulate the payment of fees and prorate the annual license fee. The annual fee for a master hair care certificate is the amount established by the board by regulation.

Section 40-7-190.   The Board may make reasonable rules and regulations for the sanitary management of barbershops and barber schools and for the administration of the provisions of this chapter and may enforce such rules and regulations. The sanitary rules and regulations so prescribed shall be approved by the Department of Health and Environmental Control. A copy of the rules and regulations adopted by the Board shall be furnished by the Board to the owner or manager of each barbershop or barber school in the State and such copy shall be posted in a conspicuous place in each barbershop or barber school, together with the rating of the inspection so made.

Section 40-7-200.   Any member of the Board or its agents, assistants and inspectors may enter upon and inspect any barbershop or barber school at any time during business hours in the performance of the duties conferred or imposed by this chapter.

Section 40-7-210.   Every holder of a certificate of registration shall display it in a conspicuous place adjacent to or near his work chair.

Section 40-7-220.   Each of the following acts constitutes a misdemeanor, punishable on conviction by a fine of not less than twenty-five dollars, nor more than one hundred dollars, or not less than five days nor more than thirty days for each and every violation thereof:

(1)   The violation of any of the provisions of this chapter;

(2)   Permitting any person in one's employ, supervision or control to practice as an apprentice unless that person has a certificate of registration as a registered apprentice;

(3)   Permitting any person in one's employ, supervision or control to practice as a barber unless that person has a certificate as a registered barber;

(4)   Obtaining or attempting to obtain a certificate of registration for money, other than the required fee, or any other thing of value or by fraudulent misrepresentations;

(5)   Practicing or attempting to practice by fraudulent misrepresentations;

(6) Wilful failure to display a certificate of registration as required by Section 40-7-210;

(7)   The wilful and continued violation of the reasonable rules and regulations adopted by the Board for the sanitary management of barbershops and barber schools; and

(8)   The operation by an owner or manager of any shop without a license or any new shop without inspection.

Section 40-7-230.   Every registered barber and every registered apprentice annually, on or before June thirtieth of each year, shall renew his certificate of registration and pay the required fee. Every certificate of registration which has not been renewed during the month of June in any year expires on the first day of July in that year. A registered barber or a registered apprentice whose certificate of registration has expired may have his certificate restored immediately upon payment of the required restoration fee. A registered barber who retires from the practice of barbering for not more than three years may renew his certificate of registration upon payment of a restoration fee. After three years an examination is required.

Section 40-7-240.   The Board may either refuse to issue or renew or may suspend or revoke any certificate of registration for any one or combination of the following causes:

(1)   Conviction of a felony shown by a certified copy of the record of the court of the conviction;

(2)   Gross malpractice or gross incompetency;

(3)   Continued practice by a person knowingly having an infectious or contagious disease;

(4)   Advertising by means of known false or deceptive statements;

(5)   Habitual drunkenness or habitual addiction to the use of morphine, cocaine or other habit-forming drugs;

(6)   commission of one or more of the offenses described in Section 40-7-220 (3), (4), (6), (7), and (8);

(7)   The Board may have refuse to issue or may refuse to renew, or may suspend or revoke any license or may place the holder thereof on a term of probation after proper hearing and upon the holder of such license being found guilty of fraud or misrepresentation in obtaining a license.

Section 40-7-250.   Notwithstanding any other provision of this chapter, the Board may issue special certificates of registration as apprentice barbers to inmates in the custody of the State Department of Corrections who:

(a)   Comply with all provisions of Section 40-7-100, having completed the required number of hours in a barber school or college approved by the Board; and

(b)   Have been sentenced:

(1)   Under the Youthful Offender Act and have served at least nine months of their sentence, or

(2)   To a determinant sentence and are eligible for release or parole consideration within one hundred twenty days.

All such certificates shall be for a period of one hundred twenty days and may be renewed at the discretion of the Board in appropriate cases.

Section 40-7-260.   The Board may neither refuse to issue or refuse to renew, nor suspend or revoke any certificate of registration, however, for any of such causes unless the person accused has been given at least twenty days' notice in writing of the charges against him and a public hearing by the Board. Upon the hearing of any such proceeding, the Board may administer oaths and may procure by its subpoena the attendance of witnesses and the production of relevant books and papers.

Section 40-7-270.   [From and after February 1, 1994, this section reads as follows:]Any barber in the state whose case has been passed upon by the board may appeal to an administrative law judge as provided under Article 5 of Chapter 23 of Title 1.

Section 40-7-280.   The following persons are exempt from this chapter while engaged in the proper discharge of their professional duties:

(1)   persons authorized under the laws of the State to practice medicine and surgery;

(2)   commissioned medical or surgical officers of the United States Army, Navy, or Marine hospital service;

(3)   registered nurses;

(4)   students in schools, colleges, and universities who follow the practice of barbering only upon students in the school, college, or university premises for the purpose of making part of their school expenses;

(5)   undertakers;

(6)   persons authorized by state law to practice cosmetology only when they are practicing in salons or schools of cosmetology.

Section 40-7-290.   The provisions of this chapter shall not apply to any person who shall perform the service of a barber for members of his immediate family.

Section 40-7-300.   All barber colleges and teachers therein must be registered with the board. All teachers are required to have had three years' experience as practicing barbers and shall have successfully passed a teacher's examination as prescribed by the board. Registration and inspection fees for colleges are as established by the board by regulation. The examination fee for teachers is the amount established by the board by regulation, and annual renewal fees for registration of teachers are also as established by the board by regulation and must be renewed as of the first day of July of each year.

Section 40-7-5.   Unless otherwise provided for in this chapter, Article 1, Chapter 1 applies to barbers; however, if there is a conflict between this chapter and Article 1, Chapter 1, the provisions of this chapter control.

Section 40-7-10.   The State Board of Barber Examiners is established and consists of five members appointed by the Governor with the advice and consent of the Senate for terms of four years and until successors are appointed and qualify. Four members must be licensed barbers who have been engaged in the practice of barbering for at least five years in this State, and of these members at least two must be licensed as master haircare specialists. One member must be a member from the general public not connected with the practice of barbering. Nominations for the member from the general public may be submitted to the Nominations Committee by an individual, group, or association. The Nominations Committee shall give consideration to these nominations, and the appointment of this member must be made in accordance with Section 40-1-45. The member from the general public has all the rights and privileges of the other board members except the lay member may not participate in the examination of an applicant for a license. The Governor may remove a member in accordance with Section 1-3-240 and shall appoint a member to fill the unexpired portion of the term. A majority vote is required to exercise any function of the board.

Section 40-7-20.   Any one or a combination of these practices, when done for pay, constitutes the practice of barbering within the purview of this chapter:

(1)   shaving or trimming a beard, cutting the hair, or hairstyling;

(2)   giving facial or scalp massages or treatments with oils, creams, lotions, or other preparations, either by hand or mechanical appliances;

(3)   singeing, shampooing, or dyeing the hair or applying hair tonics or chemicals to wave, relax, straighten, or bleach the hair;

(4)   applying cosmetic preparations, antiseptics, powders, oils, clays, and lotions to the scalp, neck, or face;

(5)   cutting, shaping, fitting, styling, and servicing of men's hair pieces, toupees, and wigs.

Section 40-7-30.   No person may engage in the practice of barbering unless the person is licensed in accordance with this chapter.

Section 40-7-50.   (A)   The Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, inspectional, clerical, secretarial, and license renewal operations and activities of the board in accordance with Section 41-1-50.

(B)   The board shall establish in regulation fees for:

(1)   examination, licensure, renewal, and reinstatement fees for student barbers, barber assistants, barber apprentices, registered barbers, master haircare specialists, barber instructors, and any other category of barber authorized by this chapter;

(2)   the inspection, registration, renewal, and registration reinstatement of barbershops and barber schools and colleges.
The board may prorate the annual license fee as provided for in regulation. All licenses and registration must be renewed as of June thirtieth of each year. All fees must accompany applications, license renewals, license reinstatements, and barbershop inspections, registration, and renewals.

Section 40-7-60.   The board may adopt rules governing its proceedings as provided for in Section 40-1-60 and shall adopt a seal for the authentication of its orders and records. The board may promulgate regulations necessary to carry out the provisions of this chapter including, but not limited to, regulations for the sanitary management of barbershops and barber schools which must be approved by the Department of Health and Environmental Control and which must be furnished by the board to the owner or manager of each barbershop or barber school in the State.

Section 40-7-70.   In addition to the powers and duties provided for in this chapter, the board has those powers and duties set forth in Section 40-1-70.

Section 40-7-80.   The Department of Labor, Licensing and Regulation on behalf of the board shall investigate complaints and violations of this chapter as provided for in Section 40-1-80.

Section 40-7-90.   The results of an investigation must be presented to the board and any subsequent hearing must be conducted in accordance with Section 40-1-90.

Section 40-7-100.   In addition to other remedies provided for in this chapter or Article 1, Chapter 1, the board in accordance with Section 40-1-100 may issue a cease and desist order or may petition an administrative law judge for a temporary restraining order or other equitable relief to enjoin a violation of this chapter.

Section 40-7-110.   The board may take disciplinary action against a barber permittee or licensee as provided for in Section 40-1-110 and based upon grounds enumerated in that section.

Section 40-7-115.   The board has jurisdiction over the actions of licensees and permittees and former licensees and permittees as provided for in Section 40-1-115.

Section 40-7-120.   In addition to the sanctions the board may impose against a person pursuant to Section 40-1-110, the board also may take disciplinary action against a person as provided for in Section 40-1-120.   Section 40-7-130.   As provided for in Section 40-1-130, the board may deny a permit or licensure to an applicant based on the same grounds for which the board may take disciplinary action against a licensee or permittee.

Section 40-7-140.   A permit or license may be denied based on a person's prior criminal record only as provided for in Section 40-1-140.

Section 40-7-150.   A licensee or permittee under investigation for a violation of this chapter or a regulation promulgated under this chapter may voluntarily surrender the license or permit in accordance with Section 40-1-150.

Section 40-7-160.   A person aggrieved by a final action of the board may seek review of the decision in accordance with Section 40-1-160.

Section 40-7-170.   A person found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170.

Section 40-7-180.   All costs and fines imposed pursuant to this chapter must be paid in accordance with and are subject to the collection and enforcement provisions of Section 40-1-180.

Section 40-7-190.   Investigations and proceedings conducted under this chapter are confidential, and all communications are privileged as provided for in Section 40-1-190.

Section 40-7-200.   A person who practices or offers to practice barbering in this State in violation of this chapter or who knowingly submits false information for the purpose of obtaining a license is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars.

Section 40-7-210.   The department, on behalf of the board and in accordance with Section 40-1-120, may petition an administrative law judge, in the name of the State, for injunctive relief against a person violating this chapter.

Section 40-7-230.   (A)   The board shall issue a license to practice as a barber assistant to a person who:

(1)   is at least sixteen years of age;

(2)   has passed a physical examination prescribed by the Department of Health and Environmental Control;

(3)   has been issued a student permit and completed six weeks' training as a barber assistant under the supervision of a registered barber who is qualified to train an assistant barber as provided for in Section 40-7-290;

(4)   has been examined by the board and has been determined to be qualified to give shampoos and manicures.

A barber assistant only may work under the direct supervision of a licensed registered barber.

The board may promulgate regulations for the purpose of examination, supervision, and licensing of these persons.

A barber assistant employed as of February 1, 1976, may within sixty days obtain a barber assistant license without further training or examination by paying the required fee.

(B)   The board shall issue a certificate of registration as a registered barber apprentice to a person who:

(1)   is at least sixteen years of age and has achieved a ninth grade education or its equivalent;

(2)   has passed a physical examination prescribed by the Department of Health and Environmental Control;

(3)   has completed at least nine months' course of fifteen hundred hours in a reliable barber school or college approved by the board; or twelve months' training under the personal supervision of a registered barber who has been examined by the board and who has been determined to be qualified to train student barbers under laws governing barber training in this State;

(4)   has passed the examination prescribed by the board;

(5)   has submitted the applicable fees established by the board in regulation.

(C)   The board shall issue a certificate of registration as a registered barber to a person who:

(1)   is at least seventeen years of age;

(2)   has passed a physical examination as prescribed by the board;

(3)   has practiced as a registered apprentice for twelve months under the direct supervision of a registered barber, and this practice must have included at least one thousand nine hundred twenty hours, proof of which must be submitted to the board by affidavit of three registered barbers or by other methods of proof that the board may prescribe;

(4)   has passed the registered barber examination prepared and conducted by the board to determine if the applicant has:

(a)   the requisite skill to perform properly all the duties associated with the practice of barbering including, but not limited to, the ability of the applicant in the preparation of tools, shaving, haircutting, and all the duties and services incident to them;

(b)   sufficient knowledge concerning diseases of the face, skin, and scalp.

(D)   The board shall issue a certificate of registration as a master hair care specialist to:

(1)   a cosmetologist licensed under Chapter 13 who has:

(a)   satisfied educational requirements prescribed by the board in regulation;

(b)   passed the examination required by the board.

(2)   a person who after July 1, 1985, meets the requirements of subsection (C) and has passed a written and practical examination conducted by the board to determine the person's ability to use chemicals to wave, relax, straighten, or bleach the hair;

(3)   a cosmetologist licensed under Chapter 13 who has two or more years experience working as a cosmetologist and after successfully completing a practical examination prescribed and conducted by the board. The examination shall include a basic tapered hair cut.

Section 40-7-240.   (A)   An applicant for an examination shall apply to the board on forms approved and furnished by the board, and the application shall contain proof under the applicant's oath of the particular qualifications of the applicant. The applicant shall submit the required fee with the application. An application for examination must be submitted to the board at least fifteen working days before the applicant takes the examination.

(B)   The board shall conduct examinations of applicants for certificates of registration to practice as registered barbers and of applicants for certificates of registration to practice as registered apprentices not fewer than four times a year, at such times and places as is prescribed by the board. The examination of applicants for certificates of registration as registered barbers and registered apprentices shall include practical demonstrations and oral and written tests as the board may prescribe.

Section 40-7-250.   (A)   A person who is licensed as a master haircare specialist on May 13, 1986, may have this license renewed annually upon payment of the required license fee.

(B)   A registered barber or a registered apprentice whose certificate of registration has expired may have the certificate reinstated immediately upon payment of the required reinstatement fee. A registered barber who does not engage in the practice of barbering for three years or less may renew the certificate of registration upon payment of a reinstatement fee. If more than three years have elapsed, the person must pass an examination and pay the reinstatement fee.

(C)   A registered apprentice who has submitted proof of the apprenticeship for the purpose of becoming licensed as a registered barber must take the examination before the next July first and the apprentice license may not be renewed.

Section 40-7-260.   No person may use chemicals to wave, relax, straighten, or bleach the hair in a barber shop unless a license as a master haircare specialist has been issued to the person by the board.

Section 40-7-270.   A registered barber who has used chemicals to wave, relax, straighten, or bleach the hair before July 1, 1985, may receive a temporary master haircare specialist license without the examination required in Section 40-7-230(D)(2) by notifying the board and certifying sixty hours of on-the-job experience with chemical applications.

Section 40-7-280.   No person may give shampoos or manicures in a barber shop unless a license as a barber assistant has been issued to him by the Board of Barber Examiners.

Section 40-7-290.   (A)   A barber training a student in a shop must have had three years' experience as a registered barber and must have been examined by the board and determined to be qualified to train a student barber. A barber found qualified after examination must be issued an instructor's license.

(B)   A registered barber may train no more than two students at a time if each student has a chair at all times.

Section 40-7-300.   A person who has practiced barbering in another state or country which has licensing requirements which meet or exceed the requirements of this chapter, as determined by the board, and who moves into this State, before practicing barbering in South Carolina shall submit to the board:

(1)   notarized statements from previous employers establishing that the person has been licensed and actively has practiced barbering for the preceding calendar year;

(2)   a letter from the licensing board of the state or country from which the person is moving verifying that the person is licensed and in good standing with the board of that state or country;

(3)   a certificate that the person has read, understands, and will abide by the provisions of this chapter and regulations promulgated under this chapter;

(4)   a completed application for a certificate of registration upon a form provided by the board.

Upon receipt of these documents, the board shall issue the person a certificate of registration to practice barbering in this State.

Section 40-7-310.   A holder of a certificate of registration for any category of barbering authorized by this chapter shall display in a conspicuous place adjacent to or near the person's work chair.

Section 40-7-320.   (A)   A barbershop must be registered with the board. Applications for registration and inspection of new shops must be made at least fifteen working days before opening the shop. No new shop may be operated until all fees are paid and the shop has passed inspection.

(B)   A copy of the inspection rating and copy of the regulations for the sanitary management of a barbershop, as provided for in Section 40-7-60, must be posted in a conspicuous place in each barbershop or barber school.

Section 40-7-330.   A member of the board or the board's agents, assistants, and inspectors may enter upon and inspect a barbershop or barber school at any time during business hours in the performance of the duties conferred or imposed by this chapter.

Section 40-7-340.   (A)   Notwithstanding any other provision of this chapter, the board may issue special certificates of registration as an apprentice barber to an inmate in the custody of the State Department of Corrections who:

(1)   complies with Section 40-7-230(B), having completed the required number of hours in a barber school or college approved by the board; and

(2)   has been sentenced:

(a)   under the Youthful Offender Act and has served at least nine months of the sentence; or

(b)   to a determinant sentence and is eligible for release or parole consideration within one hundred twenty days.

(B)   These certificates are valid for one hundred twenty days and may be renewed at the discretion of the board.

Section 40-7-350.   A barber college and teachers at a barber college must be registered with the board. These teachers must have had three years' experience as practicing barbers and shall have passed successfully a teacher's examination as prescribed by the board.

Section 40-7-360.   This chapter does not apply to a person who performs the service of a barber for members of the person's immediate family.

Section 40-7-370.   No registered apprentice, registered under the provisions of this chapter, may operate a barbershop in this State.

Section 40-7-380.   It is unlawful for a member, inspector, or employee of the board to own an interest in a barber college or a company which deals in sales or services to barbershops.

Section 40-7-390.   These persons are exempt from this chapter while engaged in the proper discharge of their professional duties:

(1)   persons authorized under the laws of this State to practice medicine and surgery;

(2)   commissioned medical or surgical officers of the United States Army, Navy, or Marine hospital service;

(3)   registered nurses;

(4)   students in schools, colleges, and universities who practice barbering only upon students in the school, college, or university premises for the purpose of earning part of their school expenses;

(5)   undertakers;

(6)   persons authorized by state law to practice cosmetology only when they are practicing in salons or schools of cosmetology.

Section 40-7-400.   If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

SECTION   2.   This act takes effect July 1, 1997.

Amend title to conform.

/s/Hon. Nikki G. Setzler          /s/Hon. Converse A. Chellis, III
/s/Hon. Thomas L. Moore           /s/Hon. James N. Law
/s/Hon. Thomas C. Alexander       /s/Hon. Grady A. Brown
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it requested and was granted Free Conference Powers and appointed Reps. Chellis, Law and G. Brown of the Committee of Free Conference on the part of the House on:
S. 269 -- Senators Setzler and Moore: A BILL TO AMEND CHAPTER 7, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION AND LICENSURE OF BARBERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR PROFESSIONAL AND OCCUPATIONAL BOARDS AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF BARBERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on:
S. 269 -- Senators Setzler and Moore: A BILL TO AMEND CHAPTER 7, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION AND LICENSURE OF BARBERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR PROFESSIONAL AND OCCUPATIONAL BOARDS AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF BARBERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that the report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
S. 269 -- Senators Setzler and Moore: A BILL TO AMEND CHAPTER 7, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION AND LICENSURE OF BARBERS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED BY THE DEPARTMENT OF LABOR, LICENSING AND REGULATION FOR PROFESSIONAL AND OCCUPATIONAL BOARDS AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF BARBERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 3563 -- Reps. Sandifer, Parks, Canty and Lanford: A BILL TO AMEND CHAPTER 19, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF EMBALMERS AND FUNERAL DIRECTORS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40 AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF EMBALMERS AND FUNERAL DIRECTORS.
asks for a Committee of Conference, and has appointed Reps. Cave, Sandifer and Askins of the committee on the part of the House.

Very respectfully,
Speaker of the House

Whereupon, the PRESIDENT Pro Tempore appointed Senators MOORE, ALEXANDER and O'DELL of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

H. 3065 -- Reps. Limehouse, Baxley, Seithel, Altman, Whatley, Vaughn, Simrill, Harrell and Hinson: A BILL TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION IF THE BIRD OF PREY IS A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIFTEEN YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED.

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

Senator CORK spoke on the report.

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators CORK, GREGORY and HUTTO 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 CORK, the Report of the Committee of Free Conference to H. 3065 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3065 -- Reps. Limehouse, Baxley, Seithel, Altman, Whatley, Vaughn, Simrill, Harrell and Hinson: A BILL TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION IF THE BIRD OF PREY IS A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIFTEEN YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED.
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 50-11-852 of the 1976 Code is amended to read:

"Section 50-11-852.   It is unlawful for any person to molest or kill any of the birds of prey within this State. Birds of prey include all hawks, eagles, falcons, kites, vultures, owls, and ospreys. Anyone violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not less than twenty-five two hundred dollars nor more than a five hundred dollars or imprisoned for not more than thirty days. However, if the bird of prey is a bald eagle, the person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined not less than five hundred dollars nor more than one thousand dollars or be imprisoned for not less than thirty days nor more than one year, or both.

If the bird of prey is a bald eagle, the person convicted shall also lose his privilege to hunt in this State for a period of five years from the date he is convicted of this offense if the bald eagle was killed and for a period of five years if the bald eagle was molested. 'Convicted' for purposes of this section includes a plea of guilty or nolo contendere to the offense."

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

Amend title to read:
/TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION FOR BIRDS OF PREY AND A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED. /

/s/Hon. Holly A. Cork             /s/Hon. William D. Witherspoon
/s/Hon. Greg Gregory              /s/Hon. Thomas N. Rhoad
/s/Hon. C. Bradley Hutto          /s/Hon. H.B. Limehouse, III
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it requested and was granted Free Conference Powers and appointed Reps. Rhoad, Limehouse and Witherspoon of the Committee of Free Conference on the part of the House on:
H. 3065 -- Reps. Limehouse, Baxley, Seithel, Altman, Whatley, Vaughn, Simrill, Harrell and Hinson: A BILL TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION IF THE BIRD OF PREY IS A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIFTEEN YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on the following:   H. 3065 -- Reps. Limehouse, Baxley, Seithel, Altman, Whatley, Vaughn, Simrill, Harrell and Hinson: A BILL TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION IF THE BIRD OF PREY IS A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIFTEEN YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that the report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
H. 3065 -- Reps. Limehouse, Baxley, Seithel, Altman, Whatley, Vaughn, Simrill, Harrell and Hinson: A BILL TO AMEND SECTION 50-11-852, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE UNLAWFUL MOLESTING OR KILLING OF BIRDS OF PREY, SO AS TO INCREASE THE PENALTIES FOR VIOLATION IF THE BIRD OF PREY IS A BALD EAGLE, AND PROVIDE THAT THE PERSON CONVICTED SHALL LOSE HIS HUNTING LICENSE AND BE PROHIBITED FROM HUNTING IN THIS STATE FOR A PERIOD OF FIFTEEN YEARS IF THE BALD EAGLE WAS KILLED AND FOR A PERIOD OF FIVE YEARS IF THE BALD EAGLE WAS MOLESTED.
Very respectfully,
Speaker of the House

Received as information.

H. 3819 -- Reps. Harrell, Beck, J. Hines, Walker, Altman, Leach, Mason, Jennings, Simrill, Kinon, Limbaugh, Dantzler, Sandifer, R. Smith, Allison, Campsen, Knotts, Barrett, Seithel, Cobb-Hunter, Cooper, Young, Townsend, Felder, Kennedy, Woodrum, Hinson, Haskins, M. Hines, Harvin, Klauber, Fleming, Kelley, Limehouse, Young-Brickell, Whatley, Wilkins, Boan, McMahand, Littlejohn, Cato, H. Brown, Stuart, Robinson, Phillips, Riser, McKay, Lanford, Keegan, Edge, Jordan, Witherspoon, Gourdine, Hodges, Wilder, J. Smith, Chellis, Baxley, Kirsh and Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 44 TO TITLE 12 SO AS TO ENACT THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997" SO AS TO PROVIDE FOR SIMPLIFICATION OF FEE IN LIEU OF PROPERTY TAX TRANSACTIONS; TO DEFINE CERTAIN TERMS, INCLUDING "ECONOMIC DEVELOPMENT PROPERTY"; TO PROVIDE FOR APPROVAL BY LOCAL COUNTY COUNCILS OF FEE AGREEMENTS; TO PROVIDE FOR CALCULATION OF THE REQUIRED FEE PAYMENTS; TO PROVIDE FOR APPLICATION OF THE FEE TO REPLACEMENT PROPERTY AND A CREDIT AGAINST THE FEE FOR COSTS OF CERTAIN IMPROVEMENTS; TO PROVIDE FOR DISTRIBUTION OF THE FEE, PENALTIES FOR FAILING TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER OR THE FEE AGREEMENTS, CONSEQUENCES OF TRANSFERS OF ECONOMIC DEVELOPMENT PROPERTY AND OF TERMINATION OF FEE AGREEMENTS, AND REQUIREMENTS FOR AFFILIATE SPONSORS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS OF CERTAIN CLASSES OF PROPERTY FROM AD VALOREM TAXATION, SO AS TO INCLUDE ECONOMIC DEVELOPMENT PROPERTY AS AN EXEMPTION.

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

Senator LEATHERMAN spoke on the report.

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators LEATHERMAN, LEVENTIS and MATTHEWS 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 LEATHERMAN, the Report of the Committee of Free Conference to H. 3819 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 3819 -- Reps. Harrell, Beck, J. Hines, Walker, Altman, Leach, Mason, Jennings, Simrill, Kinon, Limbaugh, Dantzler, Sandifer, R. Smith, Allison, Campsen, Knotts, Barrett, Seithel, Cobb-Hunter, Cooper, Young, Townsend, Felder, Kennedy, Woodrum, Hinson, Haskins, M. Hines, Harvin, Klauber, Fleming, Kelley, Limehouse, Young-Brickell, Whatley, Wilkins, Boan, McMahand, Littlejohn, Cato, H. Brown, Stuart, Robinson, Phillips, Riser, McKay, Lanford, Keegan, Edge, Jordan, Witherspoon, Gourdine, Hodges, Wilder, J. Smith, Chellis, Baxley, Kirsh and Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 44 TO TITLE 12 SO AS TO ENACT THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997" SO AS TO PROVIDE FOR SIMPLIFICATION OF FEE IN LIEU OF PROPERTY TAX TRANSACTIONS; TO DEFINE CERTAIN TERMS, INCLUDING "ECONOMIC DEVELOPMENT PROPERTY"; TO PROVIDE FOR APPROVAL BY LOCAL COUNTY COUNCILS OF FEE AGREEMENTS; TO PROVIDE FOR CALCULATION OF THE REQUIRED FEE PAYMENTS; TO PROVIDE FOR APPLICATION OF THE FEE TO REPLACEMENT PROPERTY AND A CREDIT AGAINST THE FEE FOR COSTS OF CERTAIN IMPROVEMENTS; TO PROVIDE FOR DISTRIBUTION OF THE FEE, PENALTIES FOR FAILING TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER OR THE FEE AGREEMENTS, CONSEQUENCES OF TRANSFERS OF ECONOMIC DEVELOPMENT PROPERTY AND OF TERMINATION OF FEE AGREEMENTS, AND REQUIREMENTS FOR AFFILIATE SPONSORS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS OF CERTAIN CLASSES OF PROPERTY FROM AD VALOREM TAXATION, SO AS TO INCLUDE ECONOMIC DEVELOPMENT PROPERTY AS AN EXEMPTION.
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:

/SECTION 1.   Title 12 of the 1976 Code is amended by adding:

Section 12-44-10.   This act may be cited as the 'Fee in Lieu of Tax Simplification Act of 1997'.

Section 12-44-20.   The General Assembly finds that:

(1)   With the state's economy being centrally connected, as the wealth-generating capacity of South Carolina's businesses has increased, the state's per capita income also has increased.

(2)   Since South Carolina's property tax rates as applied to manufacturing and certain commercial properties are disproportionately higher than those applied to other property in South Carolina, this disparity and the resulting property tax burdens historically have impeded new and expanded business in South Carolina.

(3)   Previous General Assemblies have enacted legislation which reduces this disparity and the resulting property tax burden through a complex fee in lieu of tax arrangement that requires a company to transfer title to its property to the county and then lease the property back by paying rent and fees instead of property taxes on the property. The arrangement often includes the issuance of industrial revenue bonds by the county.

(4)   The transfer of title and issuance of bonds are expensive, complex, time-consuming, and difficult undertakings for the county, public, and companies to understand and implement. The current rules also make financings more difficult and more expensive. All of these factors act to discourage new investments in South Carolina.

(5)   The 'Fee in Lieu of Tax Simplification Act' simplifies the method for obtaining the fee in lieu of tax benefits while maintaining the essential county council approval process.

(6)   The 'Fee in Lieu of Tax Simplification Act' makes the fee in lieu of tax incentive more attractive by eliminating the requirement for the issuance of industrial revenue bonds or the transfer of title of property to a county. This simplification facilitates the benefit for the county and the company making the investments.

Section 12-44-30.   As used in this chapter:

(1)   'Alternative payment method' means fee payments as provided in Section 12-44-50(A)(3).

(2)   'Commencement date' means the last day of the property tax year during which economic development property is placed in service, except that this date must not be later than the last day of the property tax year
which is three years from the year in which the county and the sponsor enter into a fee agreement.

(3)   'Controlled group' or 'controlled group of corporations' means the definition provided under Section 1563(a) of the Internal Revenue Code, as defined in Chapter 6, Title 12, as of the date of the execution of the fee agreement, without regard to amendments or replacements, and without regard to subsections (a)(4) and (b) of Section 1563.

(4)   'County' means the county or counties in which the project is proposed to be located. A project may be located in more than one county, subject to the provisions of Section 12-44-40(G).

(5)   'County council' means the governing body of the county in which the economic development property is located, except as specifically provided by Section 12-44-40(G).

(6)   'Department' means the South Carolina Department of Revenue.

(7)   'Economic development property' means each item of real and tangible personal property comprising a project which satisfies the provisions of Section 12-44-40(C) and other requirements of this chapter and becomes subject to a fee agreement. That property, other than replacement property qualifying under Section 12-44-60, must be placed in service by the end of the investment period.

(8)   'Enhanced investment' means a project which results in a total investment by a sponsor of:

(a)   at least two hundred million dollars, which when added to the previous investments, results in a total investment of at least four hundred million dollars, and which is creating at least two hundred new full-time jobs at the project;

(b)   at least four hundred million dollars of property qualifying for the fee and which is creating at least two hundred new full-time jobs at the project. The new full-time jobs requirement of this item does not apply to a taxpayer which paid more than fifty percent of all property taxes actually collected in the county for more than the twenty-five years ending on the date of the agreement;

(c)   at least four hundred million dollars in a county classified as either least developed or underdeveloped, by a limited liability company and/or one or more of the members or equity holders where a member or equity holder is creating, at a site qualifying for the fee, at least one hundred new full-time jobs with an average annual salary of at least forty thousand dollars within four years of the date of execution of the fee agreement.

(9)   'Exemption period' means the period beginning on the later of the commencement date or the last day of the property tax year in which the fee agreement is entered into and ending on the termination date. For projects which are completed and placed in service during more than one year, the exemption period applies to each year's investment made by a sponsor during the investment period.

(10)   'Fee agreement' means an agreement between the sponsor and the county obligating the sponsor to pay fees instead of property taxes during the exemption period for each item of economic development property as more particularly described in Section 12-44-40.

(11)   'Inducement resolution' means a resolution of the county setting forth the commitment of the county to enter into a fee agreement.

(12)   'Infrastructure improvement credit' means a credit against the fee as provided by Section 12-44-70.

(13)   'Investment period' means the period beginning sixty days before the county takes action or identifies the project under Section 12-44-40(C), and ending five years after the commencement date; except that for a project with an enhanced investment as described above, the period ends eight years after the commencement date. The minimum investment must be completed within five years of the commencement date. For an enhanced investment, the enhanced investment must be completed within eight years of the commencement date. If the sponsor does not anticipate completing the project within this period, the sponsor may apply to the county before the end of the period for an extension of time to complete the project. If the county agrees to an extension, it must do so in writing and furnish a copy of the extension to the Department of Revenue within thirty days of the date the extension was granted. The extension may not exceed two years in which to complete the project. An extension is not allowed for the time period in which the sponsor must meet the minimum investment requirement.

(14)   'Minimum investment' means a project which results in a total investment by a sponsor of not less than five million dollars within the investment period.

(15)   'Multicounty park' means an industrial or business park developed by two or more counties as defined in Section 4-1-170.

(16)   'Project' means land and buildings and other improvements on the land including water, sewage treatment and disposal facilities, air pollution control facilities, and all other machinery, apparatus, equipment, office facilities, and furnishings which are necessary, suitable, or useful.

(17)   'Replacement property' means property placed under the fee agreement to replace economic development property previously subject to the fee agreement, as provided in Section 12-44-60.

(18)   'Sponsor' means a single entity as defined in Section 12-6-3360(m)(1) which signs the fee agreement with the county, subject to the provisions of Section 12-44-40.

(19)   'Sponsor affiliate' means an entity that joins with or is an affiliate, as defined in Section 12-44-130, of a sponsor and that participates in the investment in, or financing of, a project.

(20)   'Termination date' means the date which is the last day of a property tax year which is the nineteenth year following the first property tax year in which economic development property is placed in service. With respect to a fee agreement involving an enhanced investment, the termination date is the last day of a property tax year which is the twenty-ninth year following the first property tax year in which an economic development property is placed in service. If the fee agreement is terminated in accordance with Section 12-44-140, the termination date is the date the agreement is terminated.

Section 12-44-40.   (A)   To obtain the benefits provided by this chapter, the sponsor and the county must enter into a fee agreement requiring the payment of the fee described in Section 12-44-50. The county may not enter into a fee agreement unless the county council adopts an ordinance approving the agreement with the sponsor.

(B)   If the county and the sponsor enter into a fee agreement, all economic development property is exempt from all ad valorem taxation imposed by Chapter 37 of Title 12 for the entire exemption period. Upon termination of the exemption period, the property is subject to property taxation in the manner provided by law, unless the property is otherwise exempt.

(C)   Subject to the provisions of subsection (D) and the provisions of Section 12-44-110, real or tangible personal property of a sponsor or sponsor affiliate for which expenditures have been incurred by the sponsor or sponsor affiliate in connection with a project or a portion of it qualifies as economic development property, if the expenditures are incurred after, or within sixty days before, the county takes action reflecting or identifying the project or proposed project including, but not limited to, the adoption of an inducement or similar resolution by county council and before the end of the investment period.

(D)   A county has two years from the date it takes action reflecting or identifying the project, or proposed project, to adopt an inducement resolution if the inducement resolution was not the original county action reflecting or identifying the project or proposed project. Otherwise, expenditures incurred before adoption of the inducement resolution do not qualify as economic development property.

(E)   If a fee agreement is not executed within five years after the inducement resolution is adopted by the county council, the real property or tangible personal property of a sponsor and sponsor affiliate for which expenditures have been incurred by the sponsor and sponsor affiliate with respect to the project do not qualify as economic development property.

(F)   To be eligible to enter into a fee agreement, the sponsor shall commit to a project which meets the minimum investment level and, with respect to applicable enhanced investments, the total investment and the minimum job creation levels required for an enhanced investment.

(G)   The project which is the subject of the fee agreement must be located in a single county or in a multicounty park or on contiguous tracts of land in more than one county. When a tract crosses a county boundary, all counties in which the tract is located must be parties to the fee agreement, which must provide the manner in which the fee payments must be distributed among the counties and the fee agreement must set a minimum millage rate not lower than the millage rate applicable to the site in the county in which the greatest amount of investment occurs.

(H)   The county council shall evaluate projects for classification as economic development property, based on criteria that include, but are not limited to:

(1)   the purposes to be accomplished by the project are proper governmental and public purposes;

(2)   the anticipated dollar amount and nature of the investment to be made; and

(3)   the anticipated costs and benefits to the county.

(I)   Before entering into a fee agreement, the county council shall find that:

(1)   the project is anticipated to benefit the general public welfare of the locality by providing services, employment, recreation, or other public benefits not otherwise adequately provided locally;

(2)   the project gives rise to no pecuniary liability of the county or incorporated municipality or to no charge against its general credit or taxing power;

(3)   the purposes to be accomplished by the project are proper governmental and public purposes; and

(4)   the benefits of the project to the public are greater than the costs to the public.

(J)   In making the findings of subsections (H) and (I), the county council may seek the advice and assistance of the department or the Board of Economic Advisors.

(K)   If the governing body of a county has by contractual agreement provided for a change in fee in lieu of taxes arrangements conditioned on a future legislative enactment, a new enactment does not bind the original parties to the agreement unless the change is ratified by the governing body of the county.

(L)(1)   Upon agreement of the parties, and except as provided in item (2), a fee agreement may be amended or terminated and replaced with regard to all matters, including the addition or removal of controlled group members.

(2)   An amendment or replacement of a fee agreement may not be used to change the millage rate, discount rate, assessment ratio, or length of the agreement.

Section 12-44-50.   (A)   A fee agreement must contain the requirement that a fee in lieu of property tax be paid as follows:

(1)   During the exemption period, the sponsor shall pay, or be responsible for payment, to the county the annual fee payment in connection with the economic development property which has been placed in service, in an amount not less than the property taxes that would be due on the economic development property if it were taxable but using:

(a)   an assessment ratio of not less than six percent, or if the project involves an enhanced investment, an assessment ratio of not less than four percent;

(b)   a millage rate as established, either:

(i)   by the county, which must not be lower than the cumulative property tax millage rate legally levied by or on behalf of all millage levying entities within which the project is to be located, which is the cumulative rate applicable on the thirtieth day of June preceding the calendar year in which the fee agreement is executed; or

(ii)   as provided under subsubitem (i), except that every fifth year the millage rate is allowed to increase or decrease in step with the average cumulative actual millage rate applicable to the project based upon the preceding five-year period; and

(c)   a fair market value for the economic development property. The fair market value of real property is determined by using the original income tax basis for South Carolina income tax purposes without regard to depreciation, but if real property is constructed for the fee or is purchased in an arm's length transaction, fair market value equals the original income tax basis. Otherwise, the department shall determine fair market value by appraisal. Fair market value for personal property is determined by using the original tax basis for South Carolina income tax purposes less depreciation allowable for property tax purposes, except that the investor is not entitled to extraordinary obsolescence.

(2)   The fee calculation must be made so that the property, if taxable, is allowed all applicable property tax exemptions except the exemption allowed under Section 3(g) of Article X of the Constitution of this State and the exemption allowed pursuant to Section 12-37-220(B)(32) and (34).

(3)   If the project subject to the fee agreement involves an investment of forty-five million dollars or more, or any higher minimum established by the county, the county and the sponsor may agree to pay the fees established in subsection (A)(1) based on an alternative payment method yielding a net present value of the fee schedule as calculated in subsection (A)(1) provided the sponsor agrees to a millage rate as established in subsection (A)(1)(b)(i). Net present value calculations must use a discount rate equivalent to the yield in effect for new or existing United States Treasury bonds of similar maturity as published during the month in which the fee agreement is executed. If no yield is available for the month in which the fee agreement is executed, the last published yield for the appropriate maturity available must be used. If there are no bonds of appropriate maturity available, bonds of different maturities may be averaged to obtain the appropriate maturity.

(B)   If a sponsor or sponsor affiliate disposes of an item of economic development property, the fee must be reduced by the amount of the fee applicable to that item of economic development property. Economic development property is disposed of only when it is scrapped or sold. Transactions with respect to items of property described in Section 12-44-120 are not a disposition of property under this subsection. If the sponsor used an alternative payment method as provided in subsection (A)(3), the fee applicable to the item of property which was disposed of must be recomputed in accordance with subsection (A)(1) and, to the extent that the amount which would have been paid with respect to this item under subsection (A)(1) exceeds the fee actually paid by the sponsor, the sponsor shall pay the difference with the next annual fee payment due after the item of property is disposed of.

Section 12-44-60.   (A)   The fee agreement may provide that property which is placed in service as a replacement for economic development property may become economic development property. This replacement property is not required to serve the same function as the economic development property it is replacing. Replacement property qualifies as economic development property only to the extent of the original income tax basis of the economic development property which is being disposed of in the same property tax year. More than one piece of property can replace a single piece of property.

(B)   To the extent that the income tax basis of the replacement property exceeds the original income tax basis of the economic development property which it is replacing, the excess amount is subject to annual payments calculated as if the exemption for economic development property were not allowed. Replacement property is entitled to the fee payment for the period of time remaining during the exemption period for the economic development property which it is replacing. Where a single piece of property replaces two or more pieces of economic development property, the time period remaining must be measured from the earliest of the dates on which the replaced pieces of economic development property were placed in service.

(C)   The new replacement property which qualifies for the fee provided in Section 12-44-50 is recorded using its income tax basis, and the fee is calculated using the millage rate and assessment ratio provided on the original economic development property. The fee payment for replacement property must be based on Section 12-44-50(A)(3) if the sponsor originally used an alternative payment method.

Section 12-44-70.   (A)   If allowed by the fee agreement and subject to any limitations and conditions contained in the fee agreement, a sponsor may take a credit against the fee established in Section 12-44-50(A)(1) and (3) over the term specified in the fee agreement to offset improvement costs:

(1)   for a project not located in a multicounty park, to the extent that the cumulative credit taken does not exceed the lesser of:

(a)   the improvement costs of the project; or

(b)   the county's share of fees distributed from the project under Section 12-44-80(A).

A municipality or special purpose district that would otherwise receive a distribution of fee in lieu of taxes under Section 12-44-80(A), may agree to allow to a sponsor a credit against the fee established in Section 12-44-50(A)(1) or (A)(3) in an amount not exceeding the share of the fee in lieu of taxes that would have been distributed to the municipality or special purpose district with respect to the sponsor's project; or

(2)   for a project located within a multicounty park, to the extent that the cumulative credit taken does not exceed the lesser of:

(a)   the improvement costs of the project; or

(b)   the county's share of fees.

(B)   For purposes of this section, improvement costs include the cost of designing, acquiring, constructing, improving, or expanding:

(1)   the infrastructure serving the issuer; and

(2)   improved and unimproved real property, buildings, and structural components of buildings used in the operation of a manufacturing or commercial enterprise in order to enhance economic development.

Section 12-44-80.   (A)   For a project not located in a multicounty park, distribution of the fee payments on the project must be made in the same manner and proportion that the millage levied for school and other purposes would be distributed if the property were taxable.

(B)   For a project located in a multicounty park, distribution of the fee payments on the project must be made in the same manner provided for by the agreement between or among counties establishing the multicounty park.

Section 12-44-90.   (A)   The investor shall file returns, contracts, and other information which may be required by the department.

(B)   Fee payments, and returns calculating fee payments, are due at the same time as property tax payments and property tax returns are due.

(C)   Failure to make a timely fee payment and file required returns results in penalties being assessed as if the payment or return were a property tax payment or return.

(D)   The department may issue rulings and promulgate regulations as necessary to carry out the purpose of this section.

(E)   The provisions of Chapters 4 and 54 of Title 12, applicable to property taxes, apply to this section, and for purposes of the application, the fee is considered a property tax. Section 12-54-155 does not apply to this section.

(F)   The provisions of Chapters 49, 51, and 53 of Title 12 apply to a fee agreement and a fee due under the agreement. For purposes of those chapters, the fee is considered a property tax.

(G)   Within thirty days of the date of execution of a fee agreement, a copy of the fee agreement must be filed with the Department of Revenue, the county assessor, and the county auditor for the county in which the project is located. If the project is located in a multicounty park the fee agreement must be filed with the auditors and assessors for all counties participating in the multicounty park.

Section 12-44-100.   (A)   A fee agreement may provide that a sponsor who has committed to an enhanced investment or an investment above that required for a minimum investment may continue to receive the benefits of this chapter, even if the sponsor fails to make the required investment or fails to create the jobs required by the fee agreement, if the sponsor meets the minimum investment. If the sponsor fails to make the required investment or create the required number of jobs, the fee agreement may not provide for an assessment ratio and an exemption period more favorable than those allowed for the minimum investment.

(B)   Notwithstanding the use of the term 'assessment ratio', a sponsor and a county may negotiate a fee agreement using differing assessment ratios for different assessment years covered by the fee agreement, but the assessment ratio for an assessment year may not be lower than six percent or, if the project involves an enhanced investment, four percent.

(C)   The fee agreement may provide that replacement property is not subject to Section 12-44-60 if the sponsor fails to make the level of investment specified in the fee agreement.

Section 12-44-110.   Property which previously has been subject to property taxes in South Carolina does not qualify as economic development property, except that:

(1)   land, excluding existing improvements on the land, on which a new project is to be located may qualify as economic development property even if it previously has been subject to property taxes in this State;

(2)   property which has been subject to property taxes in this State, but which has never been placed in service in this State, may qualify as economic development property;

(3)   property which previously has been placed in service in this State and previously has been subject to property taxes in this State which is purchased in a transaction other than between any of the entities specified in Section 267(b) of the Internal Revenue Code, as defined under Chapter 6 of Title 12 as of the time of the transfer, may qualify as economic development property if the sponsor invests at least an additional forty-five million dollars at the project;

(4)   repairs, alterations, or modifications to real or personal property, which is not economic development property, are not eligible to be economic development property, even if they are capitalized expenditures, except for modifications which constitute an expansion to existing real property improvements.

Section 12-44-120.   (A)   An interest in a fee agreement and the economic development property to which the fee agreement relates may be transferred to another entity at any time. Notwithstanding another provision of this chapter, equity or other interest in an entity with an interest in a fee agreement or the economic development property, or both, to which a fee agreement relates may be transferred to another entity or person at any time.

(B)   A single entity, or two or more entities which are members of a controlled group, may enter into lending, financing, security, or similar arrangements, or succession of such arrangements, with a financing entity concerning all or part of a project and may enter into a sale-leaseback arrangement, including, without limitation, an assignment, sublease, or similar arrangement, or succession of such arrangements, with one or more financing entities concerning all or part of a project, regardless of the identity of the income tax owner of economic development property. Even though income tax basis is changed for income tax purposes, neither the original transfer to the financing entity nor the later transfer from the financing entity back to the original transferor or members of its controlled group, pursuant to terms in the sale-leaseback agreement, affects the amount of the payments due under Section 12-44-50.

(C)   All transfers undertaken with respect to other projects to effect a financing authorized under this subsection must meet the following requirements:

(1)   The department and the county must receive notification, in writing within sixty days after the transfer, of the identity of each transferee and other information required by the department with the appropriate returns. Failure to meet this notice requirement does not adversely affect the exemption, but a penalty may be assessed by the department for late notification for up to ten thousand dollars a year or portion of a year, up to a maximum penalty of fifty thousand dollars.

(2)   If the financing entity is the income tax owner of property, either the financing entity is primarily liable for the payments due under Section 12-44-50 as to that portion of the project to which the transfer relates, with the sponsor remaining secondarily liable for the payment, or the sponsor must agree to continue to be primarily liable for the annual payments as to that portion of the project to which the transfer relates.

(D)   Before a sponsor may transfer a fee agreement, or substantially all the economic development property to which the fee agreement relates, it must obtain the approval of the county with which it entered into the fee agreement. That approval is not required in connection with financing-related transfers.

Section 12-44-130.   (A)   To be eligible for the fee, a sponsor affiliate must invest five million dollars. The county and the members who are part of the fee agreement may agree that investments by other members of the controlled group within the investment period qualify for the payment regardless of whether the member was part of the fee agreement, except that the new sponsor affiliate must invest at least five million dollars in the project. To qualify for the exemption, the other members of the controlled group must be approved specifically by the county and must agree to be bound by agreements with the county relating to the exemption. These controlled group members need not be bound by agreements, or portions of agreements, which do not affect the county.

(B)   The department and the county must be notified in writing of all members of the controlled group which have investments subject to the fee exemption before or within thirty days after the execution of the fee agreement covering the investment by the member. The department may extend the thirty-day period upon written request. Failure to meet this notice requirement does not affect adversely the exemption, but a penalty may be assessed by the department for late notification of up to ten thousand dollars a month or portion of a month, with the total penalty not to exceed one hundred twenty thousand dollars. Members of the controlled group shall provide the information considered necessary by the department to ensure that the investors are part of a controlled group.

Section 12-44-140.   (A)   The county and the sponsor may agree to terminate the fee agreement at any time. From the date of termination, all economic development property is subject to ad valorem taxation as imposed by law. If the sponsor used an alternative payment method, the sponsor shall pay to the county at the time of termination an additional fee payment equal to the difference between the total amount of the fee payments that would have been made with respect to the economic development property by the sponsor if the standard fee calculation under Section 12-44-50(A)(1) had been used and the total amount of fee payments actually made by the sponsor.

(B)   A fee agreement is automatically terminated if the sponsor fails to satisfy the minimum investment level provided in Section 12-44-30(14) within the investment period or otherwise fails to meet the minimum investment or job creation requirements of a fee agreement to qualify for the benefits of this chapter. If the fee agreement is terminated under this subsection, all economic development property is subject, as of the commencement date, to ad valorem taxation as imposed by law. At the time of termination, the sponsor shall pay to the county an additional fee equal to the difference between the total amount of property taxes that would have been paid by the sponsor had the project been taxable, taking into account exemptions from property taxes that would have been available to the sponsor, and the total amount of fee payments actually made by the sponsor.

Section 12-44-150.   Projects to which a fee agreement applies pursuant to this section are considered taxable property at the level of the negotiated payments for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). However, for a project located in an industrial development park as defined in Section 4-1-170, projects are considered taxable property in the manner provided in Section 4-1-170 for purposes of bonded indebtedness pursuant to Sections 14 and 15 of Article X of the Constitution of this State, and for purposes of computing the index of taxpaying ability pursuant to Section 59-20-20(3). However, the computation of bonded indebtedness limitation is subject to the requirements of Section 4-29-68(E).

Section 12-44-160.   This chapter must be construed liberally in accordance with the findings in Section 12-44-20 with due regard to the paramount importance of the county council approvals required throughout this chapter. If the General Assembly adopts enabling legislation, property that would be exempt under this chapter but is held not to be exempt because of the unconstitutionality or illegality of this chapter, or any portion of it, is exempt from property tax under Section 4-29-67 or Chapter 12 of this title if the project and county approval would have met the requirements for exemption under them, except that fees in lieu of taxes must have been, and must continue to be, made in the amounts required by Section 4-29-67 or Chapter 12 of this title."

SECTION   2.   Section 12-37-220(B) of the 1976 Code, as last amended by Act 462 of 1996, is further amended by adding an appropriately numbered item at the end to read:

"( )   Economic development property during the exemption period as provided in Chapter 44 of Title 12."

SECTION 3.   (A)   Economic development property as defined in Section 12-44-30(7) may include property placed in service for property tax purposes after the effective date of this act.

(B)   An entity with property subject to an existing fee in lieu of property taxes arrangement under Article 1, Chapter 12, Title 4 of the 1976 Code or Section 4-29-67 of the 1976 Code, or which has acquired or will acquire property pursuant to an inducement resolution, may elect, with the consent of the applicable county, to transfer property from the prior arrangement to the fee arrangements provided by the act and that property must be considered automatically economic development property as defined in Section 12-44-30(7) subject to:

(1)   a continuation of the same fee payments required under the existing lease agreement;

(2)   a continuation of the same fee in lieu of tax payments only for the time required for payments under the existing lease agreement;

(3)   a carryover of minimum investment or employment requirements of the existing arrangements to the new fee arrangement; and

(4)   appropriate agreements and amendments between the sponsor and the county entered into continuing the provisions and limitations of the prior agreement.

The entity and the governing body of the county may enter into a new fee agreement reflecting the appropriate handling of the transition with due regard to appropriate cancellation or amendment of existing financing arrangements.

SECTION   4.   Section 4-1-175 of the 1976 Code, as added by Act 361 of 1992, is amended to read:

"Section 4-1-175.   A county or municipality receiving revenues from a payment in lieu of taxes pursuant to Section 13 of Article VIII of the Constitution of this State may issue special source revenue bonds secured by and payable from all or a part of that portion of the revenues which the county is entitled to retain pursuant to the agreement required by Section 4-1-170 in the manner and for the purposes set forth in Section 4-29-68. The county or municipality may pledge the revenues for the additional securing of other indebtedness in the manner and for the purposes set forth in Section 4-29-68.

A county or municipality or special purpose district that receives and retains revenues from a payment in lieu of taxes pursuant to Section 13 of Article VIII of the Constitution of this State may use a portion of this revenue for the purposes outlined in Section 4-29-68 without the requirement of issuing the special source revenue bonds or meeting the requirements of Section 4-29-68(A)(4).

A political subdivision of this State subject to the limitation of either Section 14(7)(a) or Section 15(6) of Article X of the Constitution of this State pledging pursuant to this section all or a portion of the revenues received and retained by that subdivision from a payment in lieu of taxes to the repayment of any bonds shall not include in the assessed value of taxable property located in the political subdivision for the purposes of calculating the limit imposed by those sections of the Constitution any amount representing the value of the property that is the basis of the pledged portion of revenues. If the political subdivision, before pledging revenues pursuant to this section, has included an amount representing the value of a parcel or item of property that is the subject of a payment in lieu of taxes in the assessed value of taxable property located in the political subdivision and has issued general obligation debt within the debt limit calculated on the basis of such assessed value, then it may not pledge pursuant to this section revenues based on the item or parcel of property, to the extent that the amount representing its value is necessary to permit the outstanding general obligation debt within the debt limit of the political subdivision."

SECTION   5.   Section 4-12-30(Q) of the 1976 Code, as added by Act 125 of 1995, is amended by adding:

"(7)   Within thirty days of the date of execution of an inducement or lease agreement, a copy of the agreement must be filed with the Department of Revenue and the county auditors and the county assessors for the county or counties in which the project is located. If the project is located in a multicounty park, the agreements must be filed with the auditors and assessors for all counties participating in the multicounty park."

SECTION   6.   Section 4-29-67(W) of the 1976 Code, as last amended by Act 181 of 1993, is further amended by adding:

"(6)   Within thirty days of the date of execution of an inducement or lease agreement, a copy of the agreement must be filed with the Department of Revenue and the county auditors and the county assessors for the county or counties in which the project is located. If the project is located in a multicounty park, the agreements must be filed with the auditors and assessors for all counties participating in the multicounty park."

SECTION   7.   If the stream of payments from a fee in lieu of tax agreement becomes insufficient to completely service the payments of interest and principal due pursuant to a debt obligation issued pursuant to Section 4-29-68, a penalty must be imposed, in addition to any amount of fee in lieu of tax payment otherwise due or payable, in the amount necessary to pay all amounts of interest and principal which are not otherwise paid by the pledged fee revenue. This penalty does not apply if the entity obligated to make the fee payments or a member of the control group associated with the entity owns the entire bond issue one year before any such default of payment.

SECTION   8.   Section 12-43-220(d) of the 1976 Code, as last amended by Act 431 of 1996, is further amended by adding at the end:

"(5)   Any property which becomes exempt from property taxes under Section 12-37-220(A)(1) or any economic development property which becomes exempt under Section 12-37-220(B) is not subject to rollback taxes."

SECTION   9.   A.   Section 4-10-20 of the 1976 Code, as added by Act 317 of 1990, is amended to read:

"Section 4-10-20.   A county, upon referendum approval, may levy a sales and use tax of one percent on the gross proceeds of sales within the county area which are subject to tax under Chapter 36 of Title 12 and the enforcement provisions of Chapter 54 of Title 12. The sale of items with a maximum tax levied in accordance with Section 12-36-2110(A), (B) and (C) and Article 17 of Chapter 36 of Title 12 are exempt from the local sales and use tax. The adopted rate also applies to tangible personal property subject to the use tax in Section 12-36-1310. Taxpayers required to remit taxes under Section 12-36-1310 shall identify the county or municipality in the county area in which tangible personal property purchased at retail is stored, used, or consumed in this State. Utilities are required to report sales in the county or municipality in which consumption of the tangible personal property occurs. A taxpayer subject to the tax imposed by Section 12-36-920, who owns or manages rental units in more than one county or municipality, shall report separately in his sales tax return the total gross proceeds from business done in each county or municipality."

B.   Section 12-36-2110(D) of the 1976 Code, as added by Act 110 of 1991, is amended to read:

"(D)   The maximum tax levied pursuant to this chapter on the sale or use of each item of machinery for research and development is three hundred dollars. As used in this subsection, 'machinery for research and development' means machinery used directly and exclusively in research and development in the experimental or laboratory sense for new products, new uses for existing products, or for improving existing products. 'Machinery' includes machines and the parts of machines, attachments, and replacements used or manufactured for use on or in the operation of the machines and which are necessary to the operation of the machines and are customarily so used. To be eligible for the limitation imposed by this subsection, the machinery must be located in a separate facility devoted exclusively to research and development as defined in this subsection. The limitation does not extend to machinery used in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising, promotion, or research in connection with literary, historical, or similar projects."

C.   Notwithstanding any other effective date provided in this act, this section is effective for sales or use made on or after December 1, 1992.   SECTION   10.   Section 12-6-3360(L) of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:

"(L)   Notwithstanding any other provision of this section, a county with a population under twenty twenty-five thousand as determined by the most recent United States Census shall receive the next increased credit designation for purposes of the credit allowed by this section."

SECTION   11.   A.   Chapter 41, Title 2 of the 1976 Code is reenacted to read:

Section 2-41-5.   There is established the Tax Study Commission composed of nine members, three appointed by the President pro tempore of the Senate from the membership of the Senate, who shall serve ex officio with full voting powers, three appointed by the Speaker of the House of Representatives from the membership of the House, who shall serve ex officio with full voting powers, and three nonlegislative members appointed by the Governor. The terms of members of the commission appointed by the Governor are coterminous with the term of the appointing Governor.

Section 2-41-15.   The commission shall:

(1)   make a detailed and careful study of the revenue laws of the State, together with all other laws of the State which have a bearing upon the study of the revenue laws, and to make recommendations to the General Assembly;

(2)   provide for the revision of revenue laws so as to provide a more easily understandable and workable system of revenue laws for the State;

(3)   recommend changes in the basic tax structure of the State and in the rates of taxation, together with predicted revenue effects of the charges together with proposed alternate sources of revenue, to the end that our revenue system may be stable and equitable, and yet so fair when compared with the tax structures of other states, that business enterprises and persons would be encouraged by the economic impact of the South Carolina revenue laws to move themselves and their business enterprises into the State;

(4)   recommend study of alternate sources of revenue found in the tax structures of other states, and particularly in the other southeastern states, and to make a report of the economic impact of the South Carolina tax structure upon the business enterprises of various types of industry, as compared with those of other southeastern states; and

(5)   make recommendations for long range revenue planning, and for future amendments of the revenue laws of South Carolina.

Section 2-41-25.   The commission may:

(1)   hold public hearings;

(2)   receive testimony of any employees of the State or any other witnesses who may assist the commission in its duties; and

(3)   call for assistance in the performance of its duties from any employees or agencies of the State or any of its political subdivisions.

Section 2-41-35.   The commission may adopt by majority vote rules not inconsistent with this chapter it considers proper with respect to matters relating to the discharge of its duties under this chapter.

Section 2-41-45.   Professional and clerical services for the commission must be made available from the staffs of the General Assembly, the office of the Governor, the Department of Revenue, and other state agencies and institutions.

Section 2-41-55.   The commission shall make reports and recommendations to the General Assembly and the Governor. These findings and recommendations must be published and made available to the public.

Section 2-41-65.   The members of the commission shall receive the per diem, mileage, and subsistence as is allowed by law for members of boards, committees, and commissions when engaged in the exercise of their duties as members of the commission. These expenses for legislative members must be paid from approved accounts of their respective houses and these expenses of gubernatorial appointees must be paid from funds appropriated for the operation of the office of the Governor. All other costs and expenses of the commission must be paid in equal proportion by the Office of the Governor, the Senate, and the House of Representatives."

B.   Unless extended by affirmative act of the General Assembly, the existence of the commission established by this section terminates after June 30, 1999.

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

Amend title to conform.

/s/Hugh K. Leatherman, Sr.        /s/Roland Smith
/s/Phil P. Leventis               /s/Robert W. Harrell, Jr.
/s/John W. Matthews, Jr.          /s/Merita A. Allison
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has requested and was granted Free Conference Powers and appointed Reps. R. Smith, Allison and Harrell of the Committee of Free Conference on the part of the House on:
H. 3819 -- Reps. Harrell, Beck, J. Hines, Walker, Altman, Leach, Mason, Jennings, Simrill, Kinon, Limbaugh, Dantzler, Sandifer, R. Smith, Allison, Campsen, Knotts, Barrett, Seithel, Cobb-Hunter, Cooper, Young, Townsend, Felder, Kennedy, Woodrum, Hinson, Haskins, M. Hines, Harvin, Klauber, Fleming, Kelley, Limehouse, Young-Brickell, Whatley, Wilkins, Boan, McMahand, Littlejohn, Cato, H. Brown, Stuart, Robinson, Phillips, Riser, McKay, Lanford, Keegan, Edge, Jordan, Witherspoon, Gourdine, Hodges, Wilder, J. Smith, Chellis, Baxley, Kirsh and Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 44 TO TITLE 12 SO AS TO ENACT THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997" SO AS TO PROVIDE FOR SIMPLIFICATION OF FEE IN LIEU OF PROPERTY TAX TRANSACTIONS; TO DEFINE CERTAIN TERMS, INCLUDING "ECONOMIC DEVELOPMENT PROPERTY"; TO PROVIDE FOR APPROVAL BY LOCAL COUNTY COUNCILS OF FEE AGREEMENTS; TO PROVIDE FOR CALCULATION OF THE REQUIRED FEE PAYMENTS; TO PROVIDE FOR APPLICATION OF THE FEE TO REPLACEMENT PROPERTY AND A CREDIT AGAINST THE FEE FOR COSTS OF CERTAIN IMPROVEMENTS; TO PROVIDE FOR DISTRIBUTION OF THE FEE, PENALTIES FOR FAILING TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER OR THE FEE AGREEMENTS, CONSEQUENCES OF TRANSFERS OF ECONOMIC DEVELOPMENT PROPERTY AND OF TERMINATION OF FEE AGREEMENTS, AND REQUIREMENTS FOR AFFILIATE SPONSORS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS OF CERTAIN CLASSES OF PROPERTY FROM AD VALOREM TAXATION, SO AS TO INCLUDE ECONOMIC DEVELOPMENT PROPERTY AS AN EXEMPTION.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on the following:
H. 3819 -- Reps. Harrell, Beck, J. Hines, Walker, Altman, Leach, Mason, Jennings, Simrill, Kinon, Limbaugh, Dantzler, Sandifer, R. Smith, Allison, Campsen, Knotts, Barrett, Seithel, Cobb-Hunter, Cooper, Young, Townsend, Felder, Kennedy, Woodrum, Hinson, Haskins, M. Hines, Harvin, Klauber, Fleming, Kelley, Limehouse, Young-Brickell, Whatley, Wilkins, Boan, McMahand, Littlejohn, Cato, H. Brown, Stuart, Robinson, Phillips, Riser, McKay, Lanford, Keegan, Edge, Jordan, Witherspoon, Gourdine, Hodges, Wilder, J. Smith, Chellis, Baxley, Kirsh and Sharpe: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 44 TO TITLE 12 SO AS TO ENACT THE "FEE IN LIEU OF TAX SIMPLIFICATION ACT OF 1997" SO AS TO PROVIDE FOR SIMPLIFICATION OF FEE IN LIEU OF PROPERTY TAX TRANSACTIONS; TO DEFINE CERTAIN TERMS, INCLUDING "ECONOMIC DEVELOPMENT PROPERTY"; TO PROVIDE FOR APPROVAL BY LOCAL COUNTY COUNCILS OF FEE AGREEMENTS; TO PROVIDE FOR CALCULATION OF THE REQUIRED FEE PAYMENTS; TO PROVIDE FOR APPLICATION OF THE FEE TO REPLACEMENT PROPERTY AND A CREDIT AGAINST THE FEE FOR COSTS OF CERTAIN IMPROVEMENTS; TO PROVIDE FOR DISTRIBUTION OF THE FEE, PENALTIES FOR FAILING TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER OR THE FEE AGREEMENTS, CONSEQUENCES OF TRANSFERS OF ECONOMIC DEVELOPMENT PROPERTY AND OF TERMINATION OF FEE AGREEMENTS, AND REQUIREMENTS FOR AFFILIATE SPONSORS; AND TO AMEND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS OF CERTAIN CLASSES OF PROPERTY FROM AD VALOREM TAXATION, SO AS TO INCLUDE ECONOMIC DEVELOPMENT PROPERTY AS AN EXEMPTION.
Very respectfully,
Speaker of the House

Received as information.

S. 489 -- Senator Elliott: A BILL TO AMEND TITLE 40, CHAPTER 38, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OPTICIANS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40, AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF OPTICIANS INCLUDING INCREASING CONTINUING EDUCATION REQUIREMENTS FROM THREE HOURS TO FOUR HOURS FOR A LICENSED OPTICIAN AND AN ADDITIONAL HOUR FOR AN OPTICIAN ALSO LICENSED TO DISPENSE CONTACT LENSES.

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

Senator MOORE spoke on the report.

On motion of Senator MOORE, the Report of the Committee of Conference to S. 489 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
S. 489 -- Senator Elliott: A BILL TO AMEND TITLE 40, CHAPTER 38, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OPTICIANS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40, AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF OPTICIANS INCLUDING INCREASING CONTINUING EDUCATION REQUIREMENTS FROM THREE HOURS TO FOUR HOURS FOR A LICENSED OPTICIAN AND AN ADDITIONAL HOUR FOR AN OPTICIAN ALSO LICENSED TO DISPENSE CONTACT LENSES.
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:

/SECTION   1.   Chapter 38, Title 40 of the 1976 Code is amended to read:

Section 40-38-10.   As used in this chapter, 'optician' means one who prepares and dispenses lenses, spectacles, eyeglasses, and appurtenances to the intended wearers on prescriptions from physicians or optometrists duly licensed to practice their professions, and in accordance with such prescriptions mechanically interprets, measures, adapts, fits, and adjusts such lenses, spectacles, eyeglasses, and appurtenances to the human face for the aid or correction of visual or ocular anomalies of the human eye. Oral prescriptions are permitted provided a written record is made and filed by the optician. The services and appliances related to ophthalmic dispensing shall be dispensed, furnished, or supplied to the intended wearer or user only upon prescription issued by a physician or an optometrist; but duplications, replacements, reproductions, or repetitions may be done without prescription, in which event any such act shall be construed to be ophthalmic dispensing, the same as if performed on the basis of a written prescription; provided, however, contact lens shall only be dispensed in accordance with Section 40-38-150. Any person shall be deemed to be practicing opticianry within the meaning of this chapter who displays a sign or in any way advertises himself to be an optician.

Section 40-38-20.   It shall be unlawful for any person to engage in the practice of opticianry in this State unless such person has obtained a certificate of registration from the South Carolina Board of Examiners in Opticianry. This chapter shall not apply to physicians licensed under the laws of this State for the practice of medicine or osteopathy, nor to optometrists licensed under the laws of this State to practice optometry, nor persons who sell as merchandise from a regular established place of business ready-made eyeglasses or spectacles if such person shall not aid the purchaser in the fitting thereof.

Section 40-38-30.   There is created the South Carolina Board of Examiners in Opticianry (board) which shall consist of seven members. Five members shall be licensed opticians appointed by the Governor upon nomination by all licensed opticians in this State through an election conducted by the board. The Governor may reject any or all of those nominated upon satisfactory showing as to the unfitness of those rejected. If the Governor declines to appoint any of such nominees so submitted, additional nominees shall be submitted in the same manner. Vacancies shall be filled in like manner by appointment by the Governor for the unexpired portion of the term. Two members of the board shall be members of the general public who do not derive their income or support from any optical or related business or who are not related to any members of these professions. These public members shall be nominated by any individual, group, or association, and appointed by the Governor.

The board shall be responsible for examining applicants for licenses in opticianry, for investigating complaints, and for investigating and prosecuting violations of this chapter.

The members of the board shall be appointed for terms of four years and until their successors are appointed and qualify. No person may serve more than two consecutive four-year terms on the board, except that if any person is appointed to fill an unexpired term on the board, he may be reappointed for two additional four-year terms. The Governor may remove any member of the board who has been guilty of continued neglect of his duties or who is found to be incompetent, unprofessional or dishonorable. No member shall be removed without first giving him an opportunity to refute the charges filed against him. He shall be given a copy of the charges at the time they are filed.

Section 40-38-40.   The members of the board shall qualify by taking the oath of office before a notary public or other officer empowered to administer oaths. At the first board meeting, after each annual appointment, it shall elect a president, vice president and secretary-treasurer. A majority of its members shall constitute a quorum. Regular meetings shall be held at least once a year at such time and place as shall be deemed most convenient. Special meetings may be held upon the call of the president.

If a board member is disqualified and his absence results in the lack of a quorum or an adequate number of members to perform official functions, the Governor may deputize an individual to replace him during the period of disqualification. The deputized individual must take the same oath as required of other members of the board.

Section 40-38-50.   Each member may receive for his services such per diem and mileage as is provided by law for members of state boards, commissions or committees for each day actually engaged in the duties of his office, including a reasonable number of days for the preparation and reviewing of examinations, in addition to such time actually spent in conducting examinations.

Section 40-38-60.   The board may promulgate regulations and bylaws for its own proceedings and government and for the practice of opticianry and examination of applicants for the practice of opticianry.

The board or any member may administer oaths for all purposes requiring the discharge of its duties. For the purpose of any investigation or proceeding under the provisions of this chapter, the board or any person designated by it may subpoena witnesses, take evidence, and require the production of any documents or records which it deems relevant to the inquiry. In the case of contumacy by or refusal to obey a subpoena issued to any person, an administrative law judge as provided under Article 5 of Chapter 23 of Title 1, upon application of the board, may issue an order requiring the person to appear before the board, or a person designated by it, and produce documentary evidence, and to give other evidence concerning the matter under inquiry.

Section 40-38-70.   It is unlawful for a person to disseminate, directly or indirectly, or cause to be disseminated any untruthful, deceptive advertisement or representation concerning eye examinations, ophthalmic goods, ophthalmic services, or the practice of opticianry. In addition, it is unlawful for a person, partnership, or corporation to disseminate, directly or indirectly, or cause to be disseminated any untruthful, impossible, improbable, misleading, or deceptive advertisement or representation concerning the terms, guarantee, or warranty which relates to the procurement of ophthalmic goods or services.

It is unlawful for a person to offer or give eye examinations, eyeglasses, spectacles, lenses, or any part used in connection with them as a premium or bonus with merchandise or in any other manner to induce trade. The provisions of this section do not prohibit giving ophthalmic products incidental to the use of the product being offered nor the offering of a reduced price, sale, or discount on purchases if the following disclosures are made with the offer:

(a)   If the offered price is represented as being a reduced price, sale price, or discounted price, the offer shall disclose whether the reduced price, sale price, or discounted price is from the offeror's regular selling price, or shall disclose any other price and its source which serves as the standard from which the offeror represents the offered price as being a reduced price, sale price, or discounted price.

(b)   The date the offer terminates.

It is unlawful for a person to disseminate price information concerning ophthalmic goods and services without including:

(a)   Whether an advertised price for eyeglasses includes single vision or multi-focal lenses;

(b)   Whether an advertised price for contact lenses refers to hard or soft contact lenses;

(c)   Whether an advertised price for ophthalmic materials includes all dispensing fees;

(d)   Whether an advertised price for ophthalmic materials includes an eye examination;

(e)   Whether an advertised price for eyeglasses includes both frame and lenses.

The board has no authority to make regulations governing the employment of opticians, the location of optical stores, the number of optical stores operated, the advertising of optical products or services, or the manner in which these products can be displayed.

Nothing in this chapter prevents opticians from using third-party solicitation which does not involve uninvited, in-person solicitation of persons who, because of their particular circumstances, may be vulnerable to undue influences.

Section 40-38-80.   Dispensing opticians may hold themselves out as doing business and may advertise under their corporate name, trade name, or as successor to another optician in the State and the board shall make no regulations restricting these rights.

Section 40-38-90.   All revenues and income from licenses, examination fees, other fees, sale of commodities and services, and income derived from any board source or activity shall be remitted to the State Treasurer as collected, when practicable, but at least once each week, and shall be credited to the general fund of the State. All assessments, fees or licenses shall be levied in an amount sufficient to at least equal the amount appropriated in the annual general appropriation act for the board.

Section 40-38-100.   The board shall make an annual report according to the provisions of Chapter 73 of Title 40 of the 1976 Code.

Section 40-38-110.   Any person desiring to be examined by the board must fill out and swear to an application furnished by the board sixty days prior to the holding of the examination. Each applicant, on making application, shall pay to the secretary of the board a fee as determined by regulation of the board.

Section 40-38-120.   A person is qualified to receive a certificate of registration as a registered optician who:

(1)   Has graduated from an accredited public or private high school or secondary school of equal grade approved by the board or has completed an equivalent course of study approved by the board;

(2)   Has received a certificate from a two-year school of opticianry approved by the board, or holds a currently valid optician's license in another state, or has been engaged in opticianry, as defined in this section, for not less than two years or has had two years' apprenticeship under an active state-licensed optician, optometrist, or ophthalmologist. An apprenticeship must be approved by the board in writing before it is begun. All opticianry apprenticeships served under active state-licensed opticians, optometrists, or ophthalmologists are subject to the same regulations of the Board of Opticianry.

(3)   Has passed a satisfactory examination conducted by the board and shows proficiency in processing a lens, frame, or any other optical device or appurtenance in accordance with an optometrist's or physician's prescription. Processing does not mean those tasks and functions in surface grinding performed by persons who work in a wholesale laboratory.

Section 40-38-130.   Every applicant for examination shall pass the opticianry competency examination prepared by the American Board of Opticianry or, if that examination is not available, the board shall prepare an opticianry competency examination. Examinations in dispensing and other practical areas of opticianry as defined in Section 40-38-10 may be conducted by the board. The board may not require an examination that is substantially duplicative of the national examination if the national examination is available.

An optician or applicant for licensure shall successfully complete a written qualifying contact lens examination prepared by the National Committee of Contact Lens Examination or, if that examination is not available, an equivalent examination prepared by the board before the optician is eligible to dispense contact lens.

Section 40-38-140.   All persons, successfully passing the examination shall be numbered and registered in the board register, which shall be kept by the secretary, as licensed to work as an optician and shall receive a certificate of such registration, signed by the president and secretary of the board, upon payment to the board of a sum to be determined by regulation of the board.

Section 40-38-150.   Notwithstanding any other provisions of law, in all cases opticians shall act with respect to contact lenses only upon receipt of and based on a prescription for such lenses by an ophthalmologist or optometrist. Nothing in this chapter shall be construed to allow opticians to fit contact lenses or to make professional determinations as to the specifications of such lenses unless under the supervision of an ophthalmologist or optometrist. If such supervision is not direct and if the optician dispenses the contact lenses outside of the presence of the ophthalmologist or optometrist, the optician shall instruct the patient to return to the prescribing ophthalmologist or optometrist for verification of the fitting as soon as an appointment may be obtained.

Section 40-38-160.   Every person to whom a certificate of registration is granted under this chapter shall display it in a conspicuous place in his principal office or place of business or employment. A separate certificate of registration granted by the board shall also be displayed for opticians eligible to dispense contact lenses.

Section 40-38-170.   Any failure, neglect or refusal on the part of any person holding such a certificate of registration to display it after the issuance of such certificate shall ipso facto work the forfeiture of such certificate of registration and it shall not be restored except upon the payment of twenty-five dollars to the board.

Section 40-38-180.   Every optician who desires to continue to be licensed in this State shall annually, on or before the first day of October, pay to the board a renewal registration fee, to be fixed by the board. In case of default in making such payment by any person his certificate shall be automatically revoked by the board on thirty days' notice in writing prior to the effective time of revocation. The deposit of such notice in the United States Post Office addressed to such person at his last place of residence or business, registered with postage prepaid, shall be due and legal service. No certificate shall be revoked for nonpayment of such renewal fee if within the thirty day notice period the person shall pay such a penalty, to be established by regulation of the board and the renewal fee. Any person whose certificate of registration has been revoked for failure to pay his renewal fee may apply to have it regranted to him upon payment of all renewal fees with a penalty as established by regulation of the board. If the license has been lapsed for more than two years he shall appear before the board, which shall then determine if his license should be reinstated, and the terms upon which such reinstatement shall be made. Any person holding a license in South Carolina who is not practicing in this State but is in practice in another state, wishing to keep his license current, may pay annually a fee to be determined by the board, until he decides to practice in South Carolina, at which time he shall pay the current fee being charged to practitioners in South Carolina.

Each active state optician shall annually attend a minimum of three hours of continuing educational courses or meetings. The instruction shall be on subjects relative to opticianry, exclusive of office management or administration, at board approved and recognized educational seminars and courses or accredited institutions of learning. Satisfactory proof of compliance with this requirement is a prerequisite for annual renewal.

Section 40-38-190.   It shall be unlawful for any ophthalmic manufacturer, wholesale supply house, or any of their employees, whether licensed as an optician or unlicensed, to dispense spectacles to the public from its manufacturing or wholesale locations.

Section 40-38-200.   It shall be unlawful for any such licensee to permit his license to be used by any unlicensed person and shall be a violation of the terms hereof for any unlicensed person to practice or attempt to practice or conduct his business under the rights and privileges conferred upon some other person duly licensed. Notwithstanding any other provision of law, an optician may delegate tasks to his assistants working under his direct supervision. As used herein, 'direct supervision' means that a licensed optician shall be on the premises at all times. Nothing herein shall preclude such optician from being absent from the practice for reasonable periods during the working day, such as lunch or other customary, practice-related absences. No contact lenses shall be dispensed during his absence. Under no circumstances will these assistants be allowed to give a contact lens fitting.

Section 40-38-210.   The board shall receive complaints by any person against a licensed optician and shall require a complaint to be submitted in written form. Upon receipt of the complaint, the secretary or such other person as the President may designate shall investigate the allegations in the complaint and make a report to the board concerning his investigation. If the board shall then desire to proceed further, it may, in its discretion, file a formal accusation charging the optician with a violation of a provision of this chapter. The accusation shall be signed by the president or the vice president on behalf of the board. When the accusation is filed and the board shall set a date for hearing thereon, the secretary of the board shall notify the accused in writing not less than thirty days prior to the hearing and a copy of the accusation shall be attached to the notice. The accused may appear and show cause why his license should not be suspended or revoked. The accused shall have the right to be confronted with and to cross-examine the witnesses against him and he shall have the right to counsel. For the purposes of such hearings, the board may require by subpoena the attendance of witnesses, the production of documents, may administer oaths and hear testimony, either oral or documentary, for and against the accused. In instances where a board member has made the initial investigation or complaint, he shall not sit with the board at the hearing of such complaint.

Such notice may be sent to the accused by registered mail, return receipt requested, directed to his last mailing address furnished to the board. The post office registration receipt signed by the accused, his agent, or a responsible member of his household or office staff, or, if not accepted by the person to whom addressed, the postal authority stamp showing the notice refused shall be prima facie evidence of service of such notice.

All investigations and proceedings undertaken under the provisions of this chapter shall be confidential.

Every communication whether oral or written, made by or on behalf of any complainant to the board or its agents or any hearing panel or member thereof, pursuant to this chapter, whether by way of complaint or testimony, shall be privileged; and no action or proceeding, civil or criminal, shall lie against any person by whom or on whose behalf such communication shall have been made.

Section 40-38-220.   The board may revoke, suspend, or otherwise restrict the license of any optician or reprimand or otherwise discipline him when it is established that the license holder is guilty of misconduct as defined herein.

Misconduct, which constitutes grounds for revocation, suspension, or restriction of a license, or a limitation on, reprimand or other discipline of an optician shall be a satisfactory showing to the board:

(1)   That any false, fraudulent, or forged statement or document has been used, and any fraudulent, deceitful, or dishonest act has been practiced by the holder of a license or certificate in connection with any of the license requirements.

(2)   That the holder of a license has been convicted of a felony or any other crime involving moral turpitude. Forfeiture of a bond or a plea of nolo contendere shall be considered the equivalent of a conviction.

(3)   That the holder of a license practiced opticianry while under either the influence of alcohol or drugs to such a degree as to adversely affect his ability to practice opticianry.

(4)   That the holder of a license uses alcohol or drugs to such a degree as to adversely affect his ability to practice opticianry.

(5)   That the holder of a license has knowingly performed any act which in any way assists a person to practice opticianry illegally.

(6)   That the holder of a license has caused to be published or circulated directly or indirectly any fraudulent, false, or misleading statements as to the skill or methods of practice of any optician.

(7)   That the holder of a license has failed to provide and maintain reasonable sanitary facilities.

(8)   That the holder of a license has sustained any physical or mental impairment or disability which renders further practice by him dangerous to the public.

(9)   That the holder of a license has violated the principles of ethics as adopted by the board and published in its rules and regulations.

(10)   That the holder of a license has engaged in conduct that is deceptive, fraudulent or harmful to the public.

(11)   That the holder of a license is guilty of obtaining fees or assisting in obtaining such fees under deceptive, false, or fraudulent circumstances.

(12)   That the holder of a license is guilty of the use of any intentionally false or fraudulent statement in any document connected with the practice of opticianry.

(13)   That the holder of a license has been found by the board to lack the professional competence to practice opticianry.

(14)   That the holder of a license has violated any provision of this chapter regulating the practice of opticianry.

(15)   That the holder of a license has been guilty of using third-party solicitation which is untruthful, deceptive, and coercive to obtain patronage.

In addition to all other remedies and actions incorporated in this chapter, the license of an optician adjudged mentally incompetent by any court of proper jurisdiction shall be automatically suspended by the board until he is adjudged by a court of competent jurisdiction or in any other manner provided by law as being restored to mental competency.

Section 40-38-230.   If the board shall be satisfied that the optician is guilty of any offense charged in the formal accusation provided for in this chapter, it shall revoke, suspend, reprimand, or otherwise take any other reasonable action short of revocation or suspension, such as requiring the licensee to undertake additional professional training subject to the direction and supervision of the board. The board may also impose such restraint upon the licensee as circumstances warrant until the licensee demonstrates to the board adequate professional competence. In all cases where disciplinary action is taken by the board, written notice of such action shall then be mailed by the secretary of the board to the accused at his last known address as provided to the board.

Any decision by the board to revoke, suspend, or otherwise restrict the license shall be by majority vote and shall be subject to review by an administrative law judge as provided under Article 5 of Chapter 23 of Title 1. Such review shall be limited to the record established by the board's hearing.

Section 40-38-240.   No member of the board, or its secretary, its committees, special examiners, agents, and employees shall be held liable for acts performed in the course of official duties except where actual malice is shown.

Section 40-38-250.   Any person violating the provisions of this chapter is guilty of a misdemeanor and, upon conviction, shall be fined not less than twenty-five dollars nor more than one thousand dollars or imprisoned not less than twenty days nor more than thirty days.

Section 40-38-5.   Unless otherwise provided for in this chapter, Article 1, Chapter 1, Title 40 applies to opticians regulated by the Department of Labor, Licensing and Regulation under this chapter. If there is a conflict between this chapter and Article 1, Chapter 1, Title 40, the provisions of this chapter control.

Section 40-38-10.   (A)   There is created the South Carolina Board of Examiners in Opticianry which consists of seven members. Five members must be licensed opticians appointed by the Governor, with the advice and consent of the Senate, upon nomination by all licensed opticians in this State through an election conducted by the board. The Governor may reject any or all of those nominated upon satisfactory showing as to the unfitness of those rejected. If the Governor declines to appoint any of the nominees, additional nominees must be elected and submitted in the same manner as the initial nominees. Vacancies must be filled in the manner of the original appointment for the unexpired portion of the term. Two members must be members of the general public who do not derive their income or support from any optical or optical-related business or who are not related to an optician or a person engaged in an optical-related business. The members from the general public may be nominated by an individual, group, or association and appointed by the Governor, with the advice and consent of the Senate, in accordance with Section 40-1-45.

(B)   The members of the board serve terms of four years and until their successors are appointed and qualify.

(C)   The Governor may remove a member of the board in accordance with Section 1-3-240. No member may be removed without first giving the member an opportunity to refute the charges filed against the member and the member must be given a copy of the charges at the time they are filed.

Section 40-38-20.   As used in this chapter:

(1)   'Optician' means one who prepares and dispenses lenses, spectacles, eyeglasses, and appurtenances to the intended wearers on prescriptions from licensed physicians or optometrists and in accordance with these prescriptions, mechanically interprets, measures, adapts, fits, and adjusts lenses, spectacles, eyeglasses, and appurtenances to the human face for the aid or correction of visual or ocular anomalies of the human eye;

(2)   'Apprentice' means a qualified person registered by the board who is working under the supervision of a licensed optician, optometrist, or opthalmologist and who is being trained in the practice of opticianry;

(3)   'Board' means the South Carolina Board of Examiners in Opticianry; and

(4)   'Direct supervision' means, with regard to a supervisee, the licensed optician must be on the premises at all times.

Section 40-38-30.   It is unlawful for a person to practice as an optician without being licensed in accordance with this chapter. A person who displays a sign or in any way advertises himself to be an optician is deemed to be practicing opticianry within the meaning of this chapter.

Section 40-38-50.   The board must be administered by the Department of Labor, Licensing and Regulation in accordance with Article 1, Chapter 1, Title 40.

Section 40-38-60.   The board may adopt bylaws governing its own proceedings and promulgate regulations for the practice of opticianry and examination of applicants for the practice of opticianry.

Section 40-38-70.   The board shall examine or provide for the examination of applicants for licenses in opticianry, investigate complaints, and investigate and prosecute violations of this chapter.

Section 40-38-80.   For the purpose of conducting an investigation or proceeding under this chapter, the board or a person designated by the board may subpoena witnesses, take evidence, and require the production of documents or records which the board considers relevant to the inquiry.

Section 40-38-90.   If a board member files a complaint or conducts the initial investigation of a complaint, the board member must not participate in the capacity as board member at the hearing of that complaint.

Section 40-38-100.   The board may seek to enjoin violations of this chapter as provided for in Section 40-1-100.

Section 40-38-110.   (A)   In addition to the grounds for disciplinary action provided in Section 40-1-110, the board may revoke, suspend, or otherwise restrict or limit the license of an optician or reprimand or otherwise discipline a licensee when it is established upon a satisfactory showing to the board that the licensee:

(1)   has been convicted of a felony or crime involving moral turpitude. Forfeiture of a bond or a plea of nolo contendere is considered a conviction;

(2)   has knowingly performed an act which in any way assists a person to practice opticianry illegally;

(3)   has caused to be published or circulated directly or indirectly fraudulent, false, or misleading statements as to the skill or methods of practice of an optician;

(4)   has failed to provide and maintain reasonable sanitary facilities;

(5)   is guilty of obtaining fees or assisting in obtaining fees under deceptive, false, or fraudulent circumstances;

(6)   has violated a provision of this chapter or a regulation promulgated under this chapter; or

(7)   has been guilty of using third-party solicitation which is untruthful, deceptive, and coercive to obtain patronage.

(B)   In addition to all other remedies and actions provided for in this chapter, the license of an optician adjudged mentally incompetent by a court of proper jurisdiction automatically must be suspended by the board until the optician is adjudged by a court of competent jurisdiction or in any other manner provided by law as being restored to mental competency.

Section 40-38-115.   The board has jurisdiction over the action of licensees and former licensees as provided for in Section 40-1-115.

Section 40-38-120.   In addition to the sanctions the board may take against a person pursuant to Section 40-38-110, the board may take disciplinary action against a person as provided for in Section 40-1-120.

Section 40-38-130.   As provided for in Section 40-1-130, the board may deny licensure to an applicant based on the same grounds for which the board may take disciplinary action against a licensee.

Section 40-38-140.   A license for opticianry may be denied based on a person's prior criminal record as provided for in Section 40-1-140.

Section 40-38-150.   A licensee under investigation for a violation of this chapter or a regulation promulgated under this chapter may voluntarily surrender the license in accordance with Section 40-1-150.

Section 40-38-160.   A person aggrieved by a final action of the board may seek review of the decision in accordance with Section 40-1-160.

Section 40-38-170.   A person found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170.

Section 40-38-180.   All costs and fines imposed pursuant to this chapter must be paid in accordance with and are subject to the collection and enforcement provisions of Section 40-1-180.

Section 40-38-190.   All investigations and proceedings undertaken under the provisions of this chapter are confidential and all communications are privileged as provided for in Section 40-1-190.

Section 40-38-200.   A person who violates a provision of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than fifty thousand dollars or imprisoned not more than one year. Each violation constitutes a separate offense. Penalties provided for in this chapter or in Article 1, Chapter 1, Title 40 may be imposed against a corporation, association, or person aiding and abetting in a violation.

Section 40-38-210.   In addition to initiating a criminal proceeding for a violation of this chapter, the board also may seek civil penalties and injunctive relief in accordance with Section 40-1-210.

Section 40-38-230.   (A)   A person desiring to be examined by the board must submit an application furnished by the board sixty days before the examination. The application must be accompanied by a fee established by the board in regulation and in accordance with Section 40-1-50(D).

(B)   An applicant for examination shall pass the opticianry competency examination prepared by the American Board of Opticianry, or if that examination is not available, an opticianry competency examination prepared by the board. Examinations in dispensing and other practical areas of opticianry may be conducted by the board. The board may not require an examination that is substantially duplicative of the national examination if the national examination is available.

(C)   An optician or applicant for licensure as a contact lens optician successfully shall complete a written qualifying contact lens examination prepared by the National Committee of Contact Lens Examination, or if that examination is not available, an equivalent examination prepared by the board.

Section 40-38-240.   (A)   A person is qualified to receive a certificate of licensure as an optician if the person has:

(1)   graduated from an accredited public or private high school or secondary school of equal grade approved by the board or has completed an equivalent course of study approved by the board.

(2)(a)   received a certificate from a two-year school of opticianry approved by the board;

(b)   a currently valid optician's license in another state;

(c)   been engaged in opticianry for not less than two years in a state that does not license opticians; or

(d)   had two years' apprenticeship under a South Carolina licensed optician, optometrist, or ophthalmologist. The board must approve in writing an apprenticeship before the apprenticeship commences, and the regulations of the board apply to the apprentice.

(3)   satisfactorily passed an examination conducted or recognized by the board and shows proficiency in processing a lens, frame, or any other optical device or appurtenance in accordance with an optometrist's or physician's prescription. Processing does not mean those tasks and functions in surface grinding performed by persons who work in a wholesale laboratory.

Having met the requirements of this subsection and upon payment of a licensure fee established by the board in regulation, the board shall issue a certificate of licensure and shall enter the person in the board register as licensed to work as an optician.

(B)   A person is qualified to receive a certificate of licensure as a contact lens optician who has:

(1)   met all the requirements of subsection (A); and

(2)   satisfactorily passed a written qualifying contact lens examination conducted or recognized by the board.

Having met the requirement of this subsection and upon payment of a licensure fee established by the board in regulation, the board shall issue a certificate of licensure and shall enter the person in the board register as licensed to work as a contact lens dispensing optician.

Section 40-38-250.   The board shall promulgate regulations for apprentice registration requirements and fees and for the regulation of apprentices and apprenticeships.

Section 40-38-260.   (A)   A licensed optician or registered apprentice who desires to continue to be licensed or registered in this State annually, on or before the first day of October, shall pay a renewal fee, to be established by the board in regulation and in accordance with Section 40-1-50(D). In case of default in payment of the fee, the person's license or registration is automatically revoked if the board gives the licensee thirty days' notice in writing before the effective date of revocation. Deposit of the notice in the United States Postal Service addressed to the person at the person's last place of residence or business, registered with the board, with postage prepaid, constitutes legal service of the notice. No license or registration may be revoked for nonpayment of the renewal fee if within the thirty-day notice period the person pays a renewal fee and a penalty established by the board in regulation. A person whose license or registration has been revoked for failure to pay the renewal fee may apply to have it reinstated upon payment of all renewal fees and a penalty as established by the board in regulation. If the license or registration has been lapsed for more than two years, the person shall appear before the board, which shall determine if the license or registration should be reinstated and the terms under which the reinstatement is to be made. A person holding a license or registration in South Carolina not practicing in this State who wishes to keep the license or registration current, annually may pay an inactive license or registration fee established by the board in regulation. If the person decides to resume practice in this State, the person shall pay the fee being charged active practitioners in South Carolina at that time.

(B)   An optician or apprentice annually shall attend a minimum of four hours of continuing education courses or meetings, one hour of which may be in office management or administration. The instruction must be on subjects relative to opticianry at board- approved and recognized educational seminars and courses or accredited institutions of learning. An optician holding a contact lens license must obtain one additional hour of continuing education courses or meetings, which must be in contact lens education at board-approved and recognized educational seminars and courses or accredited institutions of learning. Satisfactory proof of compliance with this subsection is a prerequisite for annual renewal.

Section 40-38-270.   Notwithstanding any other provision of law, with respect to contact lenses, an optician shall act upon receipt of and based on a prescription for the lenses by an ophthalmologist or optometrist. Nothing in this chapter may be construed to allow an optician to fit contact lenses or to make professional determinations as lenses to the specifications of these lenses unless under the supervision of an ophthalmologist or optometrist. If supervision is not direct and if the optician dispenses the contact lenses outside of the presence of the ophthalmologist or optometrist, the optician shall instruct the patient to return to the prescribing ophthalmologist or optometrist for verification of the fitting as soon as an appointment may be obtained.

Section 40-38-280.   The services and appliances related to ophthalmic dispensing must be dispensed, furnished, or supplied to the intended wearer or user only upon prescription issued by a physician or an optometrist; however, duplications, replacements, reproductions, or repetitions may be provided without prescription and are deemed to be ophthalmic dispensing, as if performed on the basis of a written prescription. Oral prescriptions are permitted if the optician maintains a written record. Contact lenses may be dispensed only in accordance with Section 40-38-270.

Section 40-38-290.   It is unlawful for an ophthalmic manufacturer, wholesale supply house, or any of their employees, whether licensed as an optician or unlicensed, to dispense spectacles to the public from its manufacturing or wholesale locations.

Section 40-38-300.   (A)   It is unlawful for an optician to permit his license to be used by an unlicensed person, and it is unlawful for an unlicensed person to practice or attempt to practice or conduct optician business under the rights and privileges conferred upon another person who is a licensed optician.

(B)   Notwithstanding any other provision of law, an optician may delegate tasks to assistants working under his direct supervision. However, under no circumstances may an assistant be allowed to perform a contact lens fitting. Nothing in this section precludes an optician who is supervising an assistant from being absent from the practice for reasonable periods during the working day including, but not limited to, lunch or other customary, practice-related absences; however, no contact lenses may be dispensed during the optician's absence.

Section 40-38-310.   (A)   It is unlawful for a person to disseminate, directly or indirectly, or cause to be disseminated any untruthful, deceptive advertisement, or representation concerning eye examinations, ophthalmic goods, ophthalmic services, or the practice of opticianry. It is unlawful for a person, partnership, or corporation to disseminate, directly or indirectly, or cause to be disseminated any untruthful, impossible, improbable, misleading, or deceptive advertisement or representation concerning the terms, guarantee, or warranty which relates to the procurement of ophthalmic goods or services.

(B)   It is unlawful for a person to offer or give eye examinations, eyeglasses, spectacles, lenses, or any part used in connection with them as a premium or bonus with merchandise or in any other manner to induce trade. This section does not prohibit giving ophthalmic products incidental to the use of the product being offered or the offering of a reduced price, sale, or discount on purchases.

These disclosures must be made with any offer:

(1)   if the offered price is represented as being a reduced price, sale price, or discounted price, the offer shall disclose the reduced price, sale price, or discounted price is from the offeror's regular selling price or shall disclose any other price and its source which serves as the standard from which the offeror represents the offered price as being a reduced price, sale price, or discounted price;

(2)   the date the offer terminates.

(C)   It is unlawful for a person to disseminate price information concerning ophthalmic goods and services without including an advertised price for:

(1)   eyeglasses includes single vision or multi-focal lenses;

(2)   contact lenses refers to hard or soft contact lenses;

(3)   ophthalmic materials includes all dispensing fees;

(4)   ophthalmic materials includes an eye examination; and

(5)   eyeglasses includes both frame and lenses.

Section 40-38-320.   Nothing in this chapter prevents opticians from using third-party solicitation which does not involve uninvited, in-person solicitation of persons who, because of their particular circumstances, may be vulnerable to undue influences.

Section 40-38-330.   The board has no authority to promulgate regulations governing the employment of opticians, the location of optical stores, the number of optical stores operated, the advertising of optical products or services, or the manner in which these products can be displayed.

Section 40-38-340.   Dispensing opticians may hold themselves out as doing business and may advertise under their corporate name, trade name, or as successor to another optician in the State, and the board may not promulgate regulations restricting these rights.

Section 40-38-350.   (A)   A person to whom a certificate of licensure is granted under this chapter shall display it in a conspicuous place in the person's principal office or place of business or employment. A separate certificate of licensure as a contact lens optician granted by the board also must be displayed by an optician eligible to dispense contact lenses.

(B)   A person who fails, neglects, or refuses to display the certificate of licensure is deemed to have forfeited the certificate, and it may not be restored except upon the payment of a reinstatement fee of twenty-five dollars.

Section 40-38-360.   Notices required by this chapter may be sent by registered mail, return receipt requested, to the person's last mailing address furnished to the board. The post office registration receipt signed by the recipient, his agent, or a responsible member of his household or office staff or, if not accepted by the person to whom addressed, the postal authority stamp showing the notice refused is prima facie evidence of service of the notice.

Section 40-38-370.   This chapter does not apply to:

(1)   physicians licensed in this State for the practice of medicine or osteopathy;

(2)   optometrists licensed under the laws of this State to practice optometry; or

(3)   persons who sell as merchandise from an established place of business ready-made eyeglasses or spectacles if the person does not aid the purchaser in the fitting of the eye glasses or spectacles.

Section 40-38-380.   No member of the board, its committees, special examiners, agents, and employees may be held liable for acts performed in the course of official duties except where actual malice is shown.

Section 40-38-390.   If a provision of this chapter or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable."

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

/s/Senator Thomas L. Moore        /s/Rep. Julia Anne Parks
/s/Senator William H. O'Dell      /s/Rep. James A. Battle, Jr.
/s/Senator Thomas C. Alexander    /s/Rep. Mack T. Hines
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has recommitted the Conference Report on the following Bill to the Conference Committee:
S. 489 -- Senator Elliott: A BILL TO AMEND TITLE 40, CHAPTER 38, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OPTICIANS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL AND ADMINISTRATIVE FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40, AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF OPTICIANS INCLUDING INCREASING CONTINUING EDUCATION REQUIREMENTS FROM THREE HOURS TO FOUR HOURS FOR A LICENSED OPTICIAN AND AN ADDITIONAL HOUR FOR AN OPTICIAN ALSO LICENSED TO DISPENSE CONTACT LENSES.
Very respectfully,
Speaker of the House

Received as information.

S. 236 -- Senators McConnell, Passailaigue and Giese: A BILL TO AMEND CHAPTER 9, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUILDING CODES, SO AS TO REVISE THE REQUIREMENTS FOR THESE CODES AND THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MUST ADOPT AND ENFORCE SUCH CODES, REVISE THE MEMBERSHIP OF THE BUILDING CODES COUNCIL, REVISE PENALTIES, PROVIDE FOR DUTIES OF THE STATE FIRE MARSHAL AND DEPUTY FIRE MARSHALS IN REGARD TO THESE CODES, AND PROVIDE FOR LIMITED APPLICATION OF THE CHAPTER; TO AMEND THE 1976 CODE BY ADDING CHAPTER 8 TO TITLE 6 SO AS TO PROVIDE FOR BUILDING CODES ENFORCEMENT OFFICERS AND FOR THEIR FUNCTIONS, DUTIES, AND REGISTRATION; BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THE FIRST TWO HUNDRED FIFTY THOUSAND DOLLARS OF THE PREMIUM TAX LEVIED ON FIRE INSURERS MUST BE USED FOR THE PURPOSE OF IMPLEMENTING THE TRAINING, CERTIFICATION, AND CONTINUING EDUCATION PROGRAM FOR BUILDING CODES ENFORCEMENT OFFICERS.

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

Senator McCONNELL spoke on the report.

On motion of Senator McCONNELL, the Report of the Committee of Conference to S. 236 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
S. 236 -- Senators McConnell, Passailaigue and Giese: A BILL TO AMEND CHAPTER 9, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUILDING CODES, SO AS TO REVISE THE REQUIREMENTS FOR THESE CODES AND THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MUST ADOPT AND ENFORCE SUCH CODES, REVISE THE MEMBERSHIP OF THE BUILDING CODES COUNCIL, REVISE PENALTIES, PROVIDE FOR DUTIES OF THE STATE FIRE MARSHAL AND DEPUTY FIRE MARSHALS IN REGARD TO THESE CODES, AND PROVIDE FOR LIMITED APPLICATION OF THE CHAPTER; TO AMEND THE 1976 CODE BY ADDING CHAPTER 8 TO TITLE 6 SO AS TO PROVIDE FOR BUILDING CODES ENFORCEMENT OFFICERS AND FOR THEIR FUNCTIONS, DUTIES, AND REGISTRATION; BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THE FIRST TWO HUNDRED FIFTY THOUSAND DOLLARS OF THE PREMIUM TAX LEVIED ON FIRE INSURERS MUST BE USED FOR THE PURPOSE OF IMPLEMENTING THE TRAINING, CERTIFICATION, AND CONTINUING EDUCATION PROGRAM FOR BUILDING CODES ENFORCEMENT OFFICERS.
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.   Chapter 9, Title 6 of the 1976 Code is amended to read:

Section 6-9-10.   The governing body of any incorporated municipality or county All municipalities, as defined by Section 5-1-20, and counties in this State is authorized to shall adopt building, energy, housing, electrical, plumbing, and mechanical, gas, and fire codes, referred to as building codes in this chapter, relating to the construction, livability, sanitation, erection, energy efficiency, installation of equipment, alteration, repair, occupancy, or removal of buildings and structures located within its jurisdiction their jurisdictions and promulgate regulations to implement the codes their enforcement. The municipality or county may adopt only the national, regional, or model codes provided in Section 6-9-50.

The codes and the implementing regulations may embrace matters such as the preparation and submission of plans and specifications; the issuance of permits; standards governing the kind, quality, and performance of materials, equipment, and workmanship; the establishment of fire zones; fireproofing; means of egress and ingress; floor-area-per-occupant requirements; sanitary facilities and proceedings for the correction of unsafe, unsanitary, or inadequate structures.

The codes and regulations may only be adopted by reference to national, regional, or model codes listed in Section 6-9-60 and to certain special provisions approved by the South Carolina Building Code Council. Nothing in these codes or regulations may extend to or be construed as being applicable to the regulation of the design, construction, location, installation, or operation of equipment or facilities used in the generation, transmission, distribution, or communication of a public or private utility or electric or telephone membership cooperatives, other than buildings used primarily for offices or residential housing nor to equipment or facilities already subject to regulation by the Liquefied Petroleum Gas Board.

With the exception of structures used primarily for offices, storage, warehouses, shop areas, or residential housing, nothing in the building codes or regulations applies to electric cooperatives, the Public Service Authority, or to a public utility corporation subject to regulation by the authorities of the South Carolina Public Service Commission or the Liquefied Petroleum Gas Board.

To the extent that federal regulations preempt state and local laws, nothing in this chapter shall conflict with the federal Department of Housing and Urban Development regulations regarding manufactured housing construction and installation.

Section 6-9-20.   County and municipal bodies are authorized to establish regional agreements with other political subdivisions of the State to issue building permits and enforce building, electrical, plumbing, gas, housing, and other codes in order to more effectively carry out the provisions of this chapter. Municipalities and counties may establish agreements with other governmental entities of the State to issue permits and enforce building codes in order to provide the services required by this chapter. The South Carolina Building Codes Council may assist in arranging for municipalities, counties, or consultants to provide the services required by this chapter to other municipalities or counties if a written request from the governing body of the municipality or county is submitted to the council. If a municipality or county determines that it is unable to arrange for services for any annual period at costs totally within the schedule of fees recommended in the appendixes to the building codes referred to in Section 6-9-50, the municipality or county shall submit an affidavit to the council to be exempt from the requirements of this chapter. If such an affidavit is submitted, the municipality or county is exempt from the requirements of this chapter, which exemption is effective until such time as it becomes financially feasible for a county or municipality to provide the services, or five years, whichever is less. A county or municipality may renew its affidavit at the end of five years and at each five-year interval thereafter if it makes another determination that it cannot arrange for services at costs totally within the schedule of fees recommended in the building codes referred to in Section 6-9-50.

Section 6-9-30.   The county and municipal governing bodies may appoint building, electrical, plumbing, gas, and housing inspectors and employ other assistants as they may consider necessary and may prescribe fees or charges for permits and inspections. Each county shall appoint a building official or contract with other political subdivisions as authorized in Section 6-9-20 so that the unincorporated area of the county is under the jurisdiction of a building official. Each municipality shall appoint a building official or contract for a building official within the municipal limits. Based on the needs established by each municipality or county, the building official or appointing authority may appoint and employ other personnel and assistants necessary to perform the required inspections and duties and may prescribe fees for construction permits and inspections. The appointment of a building official and the establishment of a building inspection program for all municipalities and counties must be accomplished according to the following dates and populations based on the population figures of the latest official United States Census:

(1)   municipalities and counties with a population above 70,000: one year after the effective date of this provision;

(2)   municipalities and counties with a population of 35,000 to 70,000: two years after the effective date of this provision;

(3)   municipalities and counties with a population under 35,000: three years after the effective date of this provision.

Section 6-9-40.   Prior to adoption of any of the codes or regulations permitted in this chapter, the governing body shall hold public hearings on the codes or regulations. Not less than fifteen days' notice of the time and place of the hearings must be published in a newspaper of general circulation in the county. The building codes and standards referenced in Section 6-9-50 must be adopted within six months after the establishment of a building inspection department. State agency adoption of a building code or regulation permitted by this chapter must be accomplished in accordance with the Administrative Procedures Act.

Section 6-9-50.   (A)   County governing bodies have the authority to establish codes and promulgate regulations under this chapter for the entire unincorporated area of the county or for any specified portion of the unincorporated area. Municipalities and counties shall adopt by reference only those provisions of the latest editions of the following nationally known codes and the standards referenced in the codes for regulation of construction which directly relate to building and safety standards within their respective jurisdictions: Standard Building Code, Standard Gas Code, Standard Plumbing Code, Standard Mechanical Code, the Standard Fire Prevention Code, as published by the Southern Building Code Congress International, Inc., the Model Energy Code, as published by the Council of American Building Officials, and the National Electrical Code, as published by the National Fire Protection Association. The appendixes of the codes provided in this section may be adopted as needed by a municipality or county, but this fact must be referenced by name or letter designation in the adoption ordinance. However, the provisions of the codes referenced in this section which concern the qualification, removal, dismissal, duties, responsibilities of, and administrative procedures for all building officials, deputy building officials, chief inspectors, other inspectors, and assistants do not apply unless they have been adopted by the municipal or county governing body.

(B)   The governing body of a county may not enforce that portion of a nationally recognized fire prevention code it has adopted which may regulate outdoor burning for forestry, wildlife, and agricultural purposes as regulated by the South Carolina Forestry Commission.

(C)   A residential building is considered in compliance with the Building Envelope Requirements of the Model Energy Code if:

(1)   it is built in compliance with prescriptive standards issued by the South Carolina Residential Builders Commission, in consultation with the State Energy Office, based on computer models of the Model Energy Code including, but not limited to, options developed by Pacific Northwest National Laboratories for South Carolina's climatic zones, or

(2)   if double pane or single pane with storm windows are used for window glass and in the case of ceilings, exterior walls, floors with crawl space, and heating and air conditioning duct work, the determination of the minimum thermal resistance ratings (R-value) is:

(a)   R-30 for ceilings, except for ceiling/roof combinations, which must be at least R-19;

(b)   R-13 for exterior walls;

(c)   R-19 for floors with crawl space;

(d)   R-6, or the installed equivalent, for heating and air conditioning duct work not located in conditioned space.

Section 6-9-60.   (A)   Municipalities or and counties are authorized to may adopt by reference only those provisions of the latest editions of the following nationally known codes and the standards referenced in the codes for regulation of construction which directly relate to building and safety standards within their respective jurisdictions: Standard Building Code, Standard Housing Code, Standard Gas Code, Standard Plumbing Code, Standard One and Two Family Dwelling Code, Standard Mechanical Code, Standard Fire Prevention Code Standard Existing Building Code, Standard Swimming Pool Code, the Standard Excavation and Grading Code, National Electrical Code, and National Fire Protection Association Gas Codes as published by the Southern Building Code Congress International, Inc., and the One and Two Family Dwelling Code, as published by the Council of American Building Officials. The appendixes of the codes provided in this section may be adopted as needed by a municipality or county, but this fact must be referenced by name or letter designation in the adopting ordinance. However, the provisions of the codes referenced in this section which concern the qualification, removal, dismissal, duties, responsibilities of, and administrative procedures for all building officials, deputy building officials, chief inspectors, other inspectors, and assistants do not apply unless they have been adopted by the municipal or county governing body. If a county or municipality adopts the One and Two Family Dwelling Code, the One and Two Family Dwelling Code shall take precedence over the Standard Building Code for dwellings as defined in the Standard Building Code. Should any city, town, If a municipality or county contend contends that the codes authorized by this chapter do not meet its needs due to local physical or climatological conditions, the variations and modifications must be submitted for approval to a the South Carolina Building Code Codes Council of thirteen fifteen members which is established in this section.

(B)   Members of this the council must be appointed by the Governor for terms of four years each and until a successor is appointed and qualifies. The council shall consist of include (1) an architect registered in South Carolina, representatives (2) a municipal administrator, manager, or elected official from the Municipal Association of South Carolina, (3) a county administrator, manager, or elected official the South Carolina Association of Counties, the Building Officials' Association of South Carolina, South Carolina Building Trade Council, (4) a representative from of the electric utility electrical industry who is either an engineer or master electrician registered in South Carolina, a representative of the Carolinas Branch of the Associated General Contractors of America, Inc., representatives from the gas, electric, and plumbing industries, a representative of the Home Builders Association of South Carolina, (5) a general contractor licensed in South Carolina, (6) a residential home builder licensed in South Carolina, (7) a handicapped disabled person, and the Chief Engineer of the State Budget and Control Board (8) a representative of the mechanical and gas industries who is either an engineer registered in South Carolina or a master mechanic, (9) a representative of the plumbing industry who is either an engineer registered in South Carolina or a master plumber, (10) a representative designated by the State Engineer of the Budget and Control Board, (11) a structural engineer registered in South Carolina, (12) a representative of the general public who is not in the practice of home or safety inspection, construction, or building, who does not have any financial interest in these professions, and who does not have any immediate family member in these professions, (13) a representative designated by the State Fire Marshal, (14) a representative from the Manufactured Housing Institute of South Carolina who shall serve as a nonvoting member, and (15) a representative designated by the Director of the State Energy Office of the Budget and Control Board who shall serve as a nonvoting member. At least one member of the council must be a member of each of the congressional districts, to be appointed, if positions become vacant, in the order provided below or as resignations occur. A vacancy must be filled in the manner of the original appointment for the unexpired portion of the term. The primary function of the council is to decide to what extent any a jurisdiction may vary from the series of codes listed in this section chapter in the establishment of construction standards. The council shall monitor the adoption of building codes by cities municipalities and counties to insure ensure compliance with this chapter. Of the members initially appointed by the Governor, four shall serve for terms of two years, four shall serve for four years, and five shall serve for terms of six years. After the initial appointment, all appointments are for terms of six years. Members of the council shall receive mileage, subsistence, and per diem as provided for other state boards, committees, or commissions for attendance at board meetings called by the chairman. The council shall elect from its appointive members a chairman, vice-chairman, and secretary. The council shall adopt regulations not inconsistent consistent with this chapter. Meetings may be called by the chairman on his own initiative and must be called by him at the request of three or more members of the council. All members must be notified by the chairman in writing of the time and place of meeting at least seven days in advance of the meeting. Seven members constitute a quorum. All meetings are open to the public. At least two-thirds vote of those members in attendance at the meeting constitutes an official decision of the council.

Section 6-9-65.   (A)   For purposes of this section, _farm structure' means a structure which is constructed on a farm, other than a residence or a structure attached to it, for use on the farm, including, but not limited to, barns, sheds, and poultry houses, but not public livestock areas. For purposes of this section, _farm structure' does not include a structure originally qualifying as a _farm structure' but later converted to another use.

(B)   The governing body of a county or municipality may not enforce that portion of any a nationally recognized building code it has adopted which regulates the construction or improvement of a farm structure. Standards for flood plain management by the Southern Building Code Congress International, Inc. apply The standards published by the Federal Emergency Management Agency for the National Flood Insurance Program shall apply.

(C)   The provisions of this section do not apply unless prior to before constructing a farm structure the person owning the property on which the structure is to be constructed files an affidavit with the county or municipal official responsible for enforcing the building code stating that the structure is being constructed as a farm structure. The affidavit must include a statement of purpose or intended use of the proposed structure or addition.

(D)   This section does not affect the authority of the governing body of a county or municipality to issue building permits prior to before the construction or improvement of a farm structure.

Section 6-9-70.   (A)   The violation of any of the codes or regulations adopted pursuant to the provisions of this chapter is declared to be a misdemeanor, and any A person violating found to be in violation of the building codes or regulations adopted pursuant to the provisions of this chapter is guilty of a misdemeanor and, upon conviction, must be punished by a fine not to exceed one hundred dollars or imprisonment of not more than thirty days fined, by civil fine, in an amount not more than two hundred dollars. Each day the violation continues is a separate offense. However, this provision does not prevent a county or municipality from exercising its authority to impose by ordinance criminal sanctions of a fine of not more than two hundred dollars or imprisonment for not more than thirty days in lieu of the civil penalties required by this provision.

(B)   However, before being charged with a second violation, an individual must be given seven calendar days to remedy the violation if in the opinion of the inspector or official it does not place the public in imminent danger or create an emergency situation. Each day a violation continues is a separate offense if the inspector or official determines the situation places the public in imminent danger or creates an emergency situation. In a situation which does not place the public in imminent danger or create an emergency situation, if in the opinion of the inspector or official no substantial progress is made toward correcting the violation by the end of the seventh calendar day, each day the violation continues thereafter is considered a separate offense.

Section 6-9-80.   In case of any For a violation of or proposed violation of the building codes or regulations adopted pursuant to this chapter, the South Carolina Building Code Council, the local building inspectors officials, municipal or county attorneys, or other appropriate authority authorities of the a political subdivision, or any an adjacent or neighboring property owner who would be damaged by the violation may, in addition to other remedies, may apply for injunctive relief, mandamus, or other appropriate proceeding to prevent, correct, or abate the violation or threatened violation.

Section 6-9-90.   County or municipal governing bodies are authorized to appropriate and expend funds to implement the provisions of this chapter. Notwithstanding any other provision of law, the governing body of a county or municipality may impose fees necessary to implement and continue the programs required by this chapter upon a vote of a simple majority of the governing body unless (1) a super majority vote is required by local ordinance, or (2) prior to December 1, 1998, the General Assembly specifically amends, repeals, or otherwise affects this law by direct reference to this section, or (3) after November 30, 1998, the General Assembly provides otherwise by law.

Section 6-9-100.   The provisions of this chapter are cumulative to other authority of counties and municipalities local ordinances and do not limit the authority of counties and or municipalities.

A city or county that has adopted any of the national, regional, or model codes or any other code prior to May 1, 1982, may continue its use.

Section 6-9-110.   (A)   In no event may any A county, municipal, or other local ordinance or regulation which requires the purchase or acquisition of a permit, license, or other device utilized to enforce any building standard be construed to does not apply to any a:

(1)   state department, institution, or agency permanent improvement project, construction project, renovation project, or property; or

(2)   school district facility, permanent improvement project, construction project, renovation project, or property which is reviewed and approved by the State Department of Education; except that the State Department of Education or a local school district may direct that the local ordinance or regulation apply to a particular facility, project, or property.

(B)   After successful completion of all requirements, the State Fire Marshal shall certify personnel of the State Engineer's Office of the Budget and Control Board designated by the State Engineer. The certified personnel and deputy state fire marshals, including resident state fire marshals, have exclusive jurisdiction over state buildings, including schools, in the exercise of the powers and jurisdictional authority of the State Fire Marshal under Sections 23-9-30, 23-9-40, and 23-9-50.

Section 6-9-120.   Nothing in this chapter affects water or sewer systems in this State.

Section 6-9-130.   Buildings must be inspected according to the codes in effect for the locality on the date of the issuance of the building permit."

SECTION   2.   Members of the South Carolina Building Codes Council serving in office on the effective date of this act whom the Governor determines possess those qualifications required by Section 6-9-60 and, if applicable, represent an entity required to be represented by Section 6-9-60 shall continue to serve until their current terms of office expire. The terms of all other members shall expire on the effective date of this act at which time, their successors shall be appointed by the Governor in the manner provided by Section 6-9-60.

SECTION   3.   Title 6 of the 1976 Code is amended by adding:

Section 6-8-10.   When used in this chapter 'building codes enforcement officer' means a person employed by a public entity who is primarily responsible for the overall inspection or enforcement of applicable building code requirements within the jurisdiction of the employer.

Section 6-8-20.   (A)   The South Carolina Building Codes Council is responsible for the registration of building codes enforcement officers pursuant to this chapter. The council or its designated representatives may conduct hearings and proceedings required by law or considered necessary by the council. The Department of Labor, Licensing and Regulation shall employ and supervise personnel necessary for the administration of this chapter. The council may promulgate regulations for the proper enforcement of this chapter.

(B)   The council shall keep a record of its hearings and proceedings and a register of applications for the certificates of registration showing the date of application, name, qualifications, and addresses of the business and residence of the applicant and whether the certificate is approved or denied. The council shall publish biannually during odd-numbered years the applications in the register which are approved. Applicants and registrants shall notify the council of changes in required information within ten days of a change.

Section 6-8-30.   (A)   Certificates of registration may be issued without examination to building codes enforcement officers employed in codes enforcement on the effective date of this chapter only for the position and locality held at the time of registration pursuant to this section. This registration is valid for two years and may be renewed.

(B)   Upon initial employment by a political subdivision, an individual must be granted a provisional certificate of registration without examination which is valid for one year from the date of issuance. The provisional certificate of registration may not be renewed.

Section 6-8-40.   No person may practice as a codes enforcement officer in this State unless registered as provided in this chapter. A person violating the provisions of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than two hundred dollars or imprisoned not more than thirty days. Each day the violation continues is a separate offense.

Section 6-8-50.   If the council has reason to believe that a person is violating or intends to violate a provision of this chapter, in addition to other remedies, it may order the person immediately to refrain from the conduct. The council may apply to the court of common pleas for an injunction restraining the person from the conduct. The court may issue a temporary injunction ex parte not to exceed ten days and upon notice and full hearing may issue other orders in the matter it considers proper. No bond is required of the council by the court as a condition to the issuance of an injunction or order pursuant to this section.

Section 6-8-60.   (A)   A person desiring to be registered as a building codes enforcement officer as required by this chapter shall apply upon a form prescribed by the council.

(B)   An applicant shall furnish satisfactory proof to the council of valid certification by a recognized code organization or testing agency in the general or special capacity in which he desires to be registered. Special certificates of registration authorize the registrant to practice in the named specialty only. General certificates of registration are not restricted. The council or its designated representatives shall review the guidelines employed by the organization or agency in order to determine their continued compatibility with the requirements considered by the council to be consistent with this chapter.

(C)   A local jurisdiction may impose additional requirements upon a person employed as a building codes enforcement officer in its jurisdiction.

Section 6-8-70.   (A)   A certificate of registration is valid for two years and expires on July first of each odd-numbered year unless renewed before that date. Renewal of all registrations must be based upon a determination by council of the applicant's participation in approved continuing education programs. The council must promulgate regulations setting forth the continuing education requirements for building codes enforcement officers. A person failing to make timely renewal of his certificate is not registered unless qualified in the manner provided for new registrants and may not practice until registered in accordance with this chapter.

(B)   Funding for the certification, training, and continuing education of building code enforcement officers must be appropriated to the Department of Labor, Licensing and Regulation in the manner provided in Section 38-7-35."

SECTION   4.   The 1976 Code is amended by adding:

"Section 38-7-35.   (A)   The first one hundred and seventy-five thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Labor, Licensing and Regulation for the purpose of implementing the training, certification, and continuing education program for building codes enforcement officers as provided in Section 6-8-70 and by law.

(B)   The Department of Labor, Licensing and Regulation shall report annually to the Chairman of the Senate Finance Committee and the Chairman of the House Ways and Means Committee detailing actual program expenditures including, but not limited to, the number of instructors employed, the number of training sessions conducted, and the number of certifications issued. This report must be submitted to the respective chairmen no later than January fifteenth of each year.

(C)   One hundred thousand dollars of the revenue collected annually pursuant to Section 38-7-30 must be transferred to the Department of Insurance for the purpose of implementing the program as provided in Section 38-75-480.

(D)   Subsection (C) of this section ceases to be of any force or effect after June 30, 2002."

SECTION   5.   Chapter 75 of Title 38 of the 1976 Code is amended by adding:

Section 38-75-470.   The Director of Insurance shall appoint an advisory committee to the director and the South Carolina Building Codes Council to study issues associated with the development of strategies for reducing loss of life and mitigating property losses due to hurricane, earthquake, and fire. The advisory committee also must consider the costs associated with these strategies to individual property owners. The advisory committee must include:

(1)   one representative from Clemson University involved with wind engineering;

(2)   one representative from an academic institution involved with the study of earthquakes;

(3)   one representative from the Department of Insurance;

(4)   one representative from an insurer writing property insurance in South Carolina;

(5)   one representative from the Department of Commerce;

(6)   one representative from the Federal Emergency Management Association;

(7)   one representative from the Homebuilders Association;

(8)   one representative from the Manufactured Housing Institute of South Carolina;

(9)   one representative from the State Fire Marshal's office;

(10)   two at-large members appointed by the director; and

(11)   two at-large members appointed by the Governor.

Members shall serve for terms of two years and shall receive no per diem, mileage, or subsistence. Vacancies must be filled in the same manner as the original appointment.

Within thirty days after its appointment, the advisory committee shall meet at the call of the Director of Insurance. The advisory committee shall elect from its members a chairman and a secretary and shall adopt rules not inconsistent with this chapter. Meetings may be called by the chairman on his own initiative and must be called at the request of three or more members of the advisory committee. All members shall be notified by the chairman of the time and place of the meeting at least seven days in advance of the meeting. All meetings must be open to the public. At least two-thirds vote of those members in attendance at the meeting shall constitute an official decision of the advisory committee.

Section 38-75-480.   (A)   There is established within the Department of Insurance a loss mitigation grant program. Funds may be appropriated to the grant program, and any funds so appropriated shall be used for the purpose of making grants to local governments or for the study and development of strategies for reducing loss of life and mitigating property losses due to hurricane, earthquake, and fire. Grants to local governments shall be for the following purposes:

(1)   implementation of building code enforcement programs including preliminary training of inspectors; and

(2)   conducting assessments to determine need for and desirability of making agreements to provide enforcement services pursuant to Section 6-9-60.

Funds may be appropriated for a particular grant only after a majority affirmative vote on each grant by the advisory committee.

(B)   The Department of Insurance may make application and enter into contracts for and accept grants in aid from federal and state government and private sources for the purposes of:

(1)   implementation of building code enforcement programs including preliminary training of inspectors;

(2)   conducting assessments to determine need for and desirability of making agreements to provide enforcement services pursuant to Section 6-9-60; and

(3)   study and development of strategies for reducing loss of life and mitigating property losses due to hurricane, earthquake, and fire."

SECTION   6.   Chapter 10 of Title 6 of the 1976 Code is not applicable in counties or municipalities which have fully implemented building codes as required in Section 6-9-10, as amended by this act.

SECTION   7.   The public policy of South Carolina is to maintain reasonable standards of construction in buildings and other structures in the State consistent with the public health, safety, and welfare of its citizens. To secure these purposes, a person performing building codes enforcement must be certified by the South Carolina Building Codes Council, and this act is necessary to provide for certification.

To clarify the intent of the General Assembly and address questions which might arise or have arisen with respect to provisions of the nationally known codes which have been or are in place, only those portions or provisions of the nationally known building and safety codes which relate to building standards and safety are binding upon any state or local governmental entity or agency which adopts the building and safety codes authorized or required by Chapter 9 of Title 6 of the South Carolina Code of Laws.

SECTION   8.   This act takes effect upon approval by the Governor./

Amend title to conform.

/s/Glenn F. McConnell             /s/George H. Bailey
/s/James E. Bryan, Jr.            /s/William E. Sandifer, III
/s/James A. Lander                /s/Daniel L. Tripp
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
S. 236 -- Senators McConnell, Passailaigue and Giese: A BILL TO AMEND CHAPTER 9, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUILDING CODES, SO AS TO REVISE THE REQUIREMENTS FOR THESE CODES AND THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MUST ADOPT AND ENFORCE SUCH CODES, REVISE THE MEMBERSHIP OF THE BUILDING CODES COUNCIL, REVISE PENALTIES, PROVIDE FOR DUTIES OF THE STATE FIRE MARSHAL AND DEPUTY FIRE MARSHALS IN REGARD TO THESE CODES, AND PROVIDE FOR LIMITED APPLICATION OF THE CHAPTER; TO AMEND THE 1976 CODE BY ADDING CHAPTER 8 TO TITLE 6 SO AS TO PROVIDE FOR BUILDING CODES ENFORCEMENT OFFICERS AND FOR THEIR FUNCTIONS, DUTIES, AND REGISTRATION; BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THE FIRST TWO HUNDRED FIFTY THOUSAND DOLLARS OF THE PREMIUM TAX LEVIED ON FIRE INSURERS MUST BE USED FOR THE PURPOSE OF IMPLEMENTING THE TRAINING, CERTIFICATION, AND CONTINUING EDUCATION PROGRAM FOR BUILDING CODES ENFORCEMENT OFFICERS.
Very respectfully,
Speaker of the House

Received as information.

Columbia, S.C., June 5, 1997

Mr. President and Senators:

The House respectfully informs your Honorable Body that the report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
S. 236 -- Senators McConnell, Passailaigue and Giese: A BILL TO AMEND CHAPTER 9, TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO BUILDING CODES, SO AS TO REVISE THE REQUIREMENTS FOR THESE CODES AND THE MANNER IN WHICH COUNTIES AND MUNICIPALITIES MUST ADOPT AND ENFORCE SUCH CODES, REVISE THE MEMBERSHIP OF THE BUILDING CODES COUNCIL, REVISE PENALTIES, PROVIDE FOR DUTIES OF THE STATE FIRE MARSHAL AND DEPUTY FIRE MARSHALS IN REGARD TO THESE CODES, AND PROVIDE FOR LIMITED APPLICATION OF THE CHAPTER; TO AMEND THE 1976 CODE BY ADDING CHAPTER 8 TO TITLE 6 SO AS TO PROVIDE FOR BUILDING CODES ENFORCEMENT OFFICERS AND FOR THEIR FUNCTIONS, DUTIES, AND REGISTRATION; BY ADDING SECTION 38-7-35 SO AS TO PROVIDE THE FIRST TWO HUNDRED FIFTY THOUSAND DOLLARS OF THE PREMIUM TAX LEVIED ON FIRE INSURERS MUST BE USED FOR THE PURPOSE OF IMPLEMENTING THE TRAINING, CERTIFICATION, AND CONTINUING EDUCATION PROGRAM FOR BUILDING CODES ENFORCEMENT OFFICERS.
Very respectfully,
Speaker of the House

Received as information.

S. 401 -- Senators Leventis and Giese: A BILL TO AMEND CHAPTER 11, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSING AND REGULATION OF CONTRACTORS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS IN CHAPTER1,TITLE 40, AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF CONTRACTORS INCLUDING, BUT NOT LIMITED TO, REVISING THRESHOLD PROJECT COSTS REQUIRING A LICENSED CONTRACTOR, REVISING QUALIFYING PARTY REQUIREMENTS AND RESPONSIBILITIES, AND PROVIDING A GRANDFATHER CLAUSE FOR CURRENT QUALIFIERS, ESTABLISHING FINANCIAL STATEMENT LICENSE GROUPS, AND REVISING REQUIREMENTS FOR FINANCIAL STATEMENTS, REDUCING BIDDERS' LICENSE FEES, EXPANDING GROUNDS FOR DISCIPLINARY ACTION AND SANCTIONS AGAINST UNLICENSED CONTRACTORS, AUTHORIZING CEASE AND DESIST ORDERS, AUTHORIZING EXAMINATION WAIVERS FOR CERTAIN CONTRACTORS LICENSED IN OTHER STATES, PROVIDING FOR THE REGULATION OF CONSTRUCTION MANAGEMENT SERVICES, ESTABLISHING BIDDING REQUIREMENTS FOR PRIME CONTRACTORS, REVISING LICENSING SUBCLASSIFICATIONS, PROVIDING CRITERIA FOR OWNERS TO OBTAIN BUILDING PERMITS, AND PROVIDING LICENSURE EXEMPTIONS.

Senator MOORE asked unanimous consent to take up the Bill 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 LEATHERMAN proposed the following Amendment No. A (401R002.HKL), which was adopted:

Amend the committee amendment, as and if amended, page 401-6, by striking lines 14-17, and inserting in lieu thereof:

/(8)   Public owners performing work for themselves up to the limitations of a License Group 2 General Contractor or Mechanical Contractor, so long as the public owner employs a certified qualifying party in the appropriate classification./

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

The Committee on Labor, Commerce and Industry proposed the following amendment (PSD\7204AC.97), which was adopted:

Amend the bill, as and if amended, page 9, by inserting after line 30:

/Section 40-11-5.   Unless otherwise provided for in this chapter, Article 1, Chapter 1, Title 40 applies to licensed contractors; however, if there is a conflict between this chapter and Article 1, Chapter 1, Title 40, the provisions of this chapter control./

Amend the bill further, Section 40-11-10(B), page 9, line 41 after /Governor/ by inserting /with the advice and consent of the Senate /

Amend the bill further, Section 40-11-20, page 11, by deleting items (19) through (23) contained on lines 23-36 and inserting:

/(19)   'Public owner' means the State and any of its political subdivisions;

(20)   'Qualifying party' means an individual who has been issued a certificate to qualify an entity for a license by way of examination in a license classification or subclassification.

(21)   'Sole prime contractor' means the prime contractor for a project on which there is only one prime contractor.

(22)   'Subcontractor' means an entity who contracts to perform construction services for a prime contractor or another subcontractor.

(23)   'Total cost of construction' means the actual cost incurred by the owner, all contractors, subcontractors, and other parties for labor, material, equipment, profit, and incidental expenses for the entire project. This does not include the cost of design services unless those services are included in a construction contract.

(24)   'Unlicensed contractor' means an entity performing or overseeing general or mechanical construction without a license. /

Amend the bill further, Section 40-11-100, page 13, by deleting subsection (A) contained on lines 5-11 and inserting:

/(A)   The department may refer any reports of violations of this chapter and Article 1, Chapter 1 or any reports of violations of regulations promulgated under this chapter directly to the board or may issue administrative citations and cease and desist orders in person or by certified mail and may assess administrative penalties against any entity or individual, including unlicensed contractors, for violations of this chapter as specified by the board. /

Amend the bill further, Section 40-11-110, page 14, by deleting items (4)-(24), as contained on lines 4-41, and on page 15, lines 1-16, and inserting:

/(4)   fraud or deceit in obtaining a license or certification;

(5)   violation of a provision of this chapter, Article 1, Chapter 1, or a regulation promulgated under these chapters;

(6)   misrepresentation of a material fact by an applicant in obtaining a license or certificate;

(7)   conviction or entering a guilty plea or plea of nolo contendere in a court of competent jurisdiction of this or any other state, district, or territory of the United States or of a foreign country of the offense of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, or conspiracy to defraud or other like offense regardless of whether an appeal has been sought;

(8)   conviction or entering a guilty plea or plea of nolo contendere of a felony or a crime involving moral turpitude in connection with the performance of a contract for construction regardless of whether an appeal has been sought;

(9)   aiding or abetting an unlicensed entity to evade the provisions of this chapter; combining or conspiring with an unlicensed entity, allowing one's license to be used by an unlicensed entity or acting as agent, partner, associate, or otherwise of an unlicensed entity;

(10)   entering into a contract with an unlicensed contractor for work to be performed for which a license is required;

(11)   false, misleading, or deceptive advertising whereby a member of the public may be misled and injured;

(12)   contracting or offering to contract or submitting a bid while a license is under suspension or probation;

(13)   failure to obtain a building permit as required by a local or state government before engaging in construction;

(14)   failure to take appropriate corrective action to comply with this chapter or a regulation promulgated under this chapter without valid justification within a reasonable period of time after receiving a written directive from the department;

(15)   failure to maintain the net worth requirements for licensure;

(16)   failure to comply with an order of the board;

(17)   failure to provide pertinent records and documents as requested by the department or board;

(18)   failure to maintain a business address accessible to the public;

(19)   failure to comply with a directive of the department;

(20)   failure to notify the department of changes in information required in an original or renewal application;

(21)   contracting or offering to contract for construction work exceeding the limitations of a group or outside the classification or subclassification of a license; or

(22)   attempting to serve in the capacity of primary qualifying party while serving a jail sentence. /

Amend the bill further, Section 40-11-200, page 18, by deleting subsection (D) as contained on lines 22-24 and inserting:

/(D)   Upon conviction under this section, the fines and assessments imposed by a court must be administered pursuant to Sections 14-1-205, 14-1-206, 14-1-207, 14-1-208, and 14-1-209./

Amend the bill further, Section 40-11-260(A), page 21, beginning on line 38, by deleting / and working capital. /

Amend the bill further, Section 40-11-260(A)(1), page 22, by deleting subitems (c)-(e), as contained on lines 1-5, and inserting:

/(c)   on initial application, an owner-prepared financial statement with an affidavit of accuracy;

(d)   on renewal, an owner-prepared financial statement with an affidavit of accuracy;/

Amend the bill further, Section 40-11-260(A)(2), page 22, by deleting subitems (c)-(e) as contained on lines 9-15, and inserting:

/(c)   on initial application an owner-prepared financial statement with an affidavit of accuracy;

(d)   on renewal, an owner-prepared financial statement with an affidavit of accuracy; /

Amend the bill further, Section 40-11-260(A)(3), page 22, by deleting subitems (c)-(e) on lines 19-26 and inserting:

/(c)   on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260(A)(4), page 22, by deleting subitems (c)-(e), as contained on lines 30-37 and inserting:

/(c)   on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260(A)(5), beginning on page 22, by deleting subitems (c)-(e) as contained on line 41 through page 23, line 7 and inserting:

/(c)   on initial application, a financial statement audited by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260, page 23, by deleting lines 8-15 and inserting:

/(B)   An applicant for a mechanical contractor's license or a mechanical contractor's license renewal who performs or offers to perform contracting work for which the total cost of construction is greater than five thousand dollars and an applicant for license group revisions must provide an acceptable financial statement with a balance sheet date no more than twelve months before the date of the relevant application showing a minimum net worth for each license group as follows:/

Amend the bill further, Section 40-11-260(B)(1), page 23, by deleting subitems (c)-(e), as contained on lines 19-23, and inserting:

/(c)   on initial application, an owner-prepared financial statement with an affidavit of accuracy;

(d)   on renewal, an owner-prepared financial statement with an affidavit of accuracy;/

Amend the bill further, Section 40-11-260(B)(2), page 23, by deleting subitems (c)-(e) as contained on lines 27-32 and inserting:

/(c)   on initial application, an owner-prepared financial statement with an affidavit of accuracy;

(d)   on renewal, an owner-prepared financial statement with an affidavit of accuracy;/

Amend the bill further, Section 40-11-260(B)(3), beginning on page 23, by deleting subitems (c)-(e), as contained on lines 37-41 through page 24, line 3 and inserting:

/(c)   on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260(B)(4), page 24, by deleting subitems (c)-(e), as contained on lines 7-14, and inserting:

/(c)   on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260(B)(5), page 24 by deleting subitems (c)-(e) as contained on lines 18-26 and inserting:

/(c)   on initial application, a financial statement audited by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;

(d)   on renewal, a financial statement reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP;/

Amend the bill further, Section 40-11-260, page 25, by inserting after line 2:

/(F)   Contractors licensed before April 1, 1998, must be licensed in the new group closest to their existing limitations until their license renewal date, at which time they must meet the financial requirements for license renewal set forth in this section./

Amend the bill further, Section 40-11-360(A), page 28, line 22, by deleting the / . /and inserting/ ; / and immediately after line 22 by inserting:

/(8)   Public owners performing work for themselves up to the limitations of a License Group 1 General Contractor, so long as the public owner employs a certified qualifying party in the appropriate classification./

Amend the bill further, Section 40-11-410(4), page 34, line 11, by deleting the /./ and inserting /;/ and immediately after line 11 by inserting:

/(o)   'Public Electrical Utility' which includes the installation, replacement, alteration, and repair of transmission lines on or off public rights-of-way, including erection of poles, guying systems, tower line erection, street lighting, and outside lighting of all voltages and all underground systems, including ducts for signal communication and similar installations, transformers, circuit breakers, capacitors, primary metering devices and other related equipment not used in connection with this subclassification. A contract that contains electrical work above fifty volts must be performed by a licensed public utility-electrical or mechanical-electrical contractor. This subclassification does not cover athletic field lighting, stadium lighting, or lighting which is not on public easements or rights-of-way./

Amend the bill further, Section 40-11-410(5), page 36, by deleting lines 20-33 and inserting:

/(h)   'Refrigeration' which includes the installation, replacement,/

Renumber sections to conform

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

Senator LEATHERMAN proposed the following Amendment No. 2 (401R003.HKL), which was adopted:

Amend the bill, as and if amended, Section 40-11-100, page 13, by striking lines 23 and 24 and inserting in lieu thereof the following:

/(2) for a second offense in a five-year period, the citation must be referred to the Board for action in accordance with Section 40-11-110./

Amend the bill further, as and if amended, Section 40-11-110, page 15, by striking line 29 and inserting in lieu thereof the following:

/pay a civil penalty of up to five thousand dollars for each/

Amend the bill further, as and if amended, Section 40-11-200, page 18, by striking line 14 and inserting in lieu thereof the following:

/not more than one year or fined not more than five thousand dollars./

Amend the bill further, as and if amended, Section 40-11-360, page 28, by striking lines 20 through 22 and inserting in lieu thereof the following:

/(7)   An owner constructing a wood-framed farm structure with less than five thousand square feet of floor space and not used for human habitation or office facilities;/

Amend the bill further, as and if amended, Section 40-11-390, page 29, line 22, by striking /1998/ and inserting in lieu thereof the following:

/1999/

Amend the bill further, as and if amended, Section 40-11-400, page 29, line 32, by striking /1998/ and inserting in lieu thereof the following:

/1999/

Amend the bill further, as and if amended, Section 40-11-410, page 34, by striking lines 3 through 11 and inserting in lieu thereof the following:

/'Wood Frame Structures' which include framing, roofing, siding, or flooring for wood-framed structures in excess of 5,000 feet used for housing livestock, storage, or processing, when such structures are not used for habitation or office facilities./

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

Senator LEATHERMAN proposed the following Amendment No. 3 (KGH\15318AC.97), which was adopted:

Amend the bill, as and if amended, Section 40-11-50(B), page 401-18, immediately after line 20, by inserting:

/(8)   Annual inactive license status fee - $110.00 per year. For purposes of this item, 'inactive license status' means the holding of a valid license by a contractor who is not actively submitting bids to perform work under that license./

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

Senator MOORE proposed the following Amendment No. 4 (401R005.TLM), which was adopted:

Amend the bill, as and if amended, page 19, line 35, after /examination./ by adding the following:

/An individual may be certified as, and may serve as, a primary qualifying party for a license group one, two, or three general contractor without passing either the limited building contractor examination or the unlimited general contractor examination if he has had an ownership interest in a company licensed as a general contractor for not less than four years prior to seeking certification./

Amend title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

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

S. 490 -- Senator Thomas: A BILL TO AMEND SECTION 24-3-960, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MONIES IN THE UNLAWFUL POSSESSION OF PRISONERS BEING DECLARED CONTRABAND, SO AS TO PROVIDE THAT MONIES, TOKENS, OR THINGS OF LIKE NATURE USED AS MONEY SO SEIZED MUST BE DEPOSITED IN A FUND MAINTAINED BY THE DEPARTMENT OF CORRECTIONS TO AID IN THE DEPARTMENT'S DRUG INTERDICTION EFFORTS RATHER THAN IN A WELFARE FUND OF THE INSTITUTION IN WHICH THE PRISONER IS CONFINED; TO AMEND SECTION 24-13-210, AS AMENDED, RELATING TO CREDIT GIVEN CONVICTS FOR GOOD BEHAVIOR SO AS TO PROVIDE THAT A PRISONER SERVING TIME IN AN ADMINISTRATIVE SEGREGATION UNIT OF AN INSTITUTION OR IN THE MAXIMUM SECURITY UNIT OF THE DEPARTMENT AS A RESULT OF HIS OWN MISCONDUCT, AND A PRISONER WHO COMMITS AN OFFENSE OR IS FOUND GUILTY OF A SERIOUS OR OF REPETITIVE RULE VIOLATIONS OF THE INSTITUTION, MAY NOT BE ENTITLED TO CREDIT UNDER THIS SECTION; TO AMEND SECTION 24-19-30, AS AMENDED, RELATING TO THE DUTIES OF THE YOUTHFUL OFFENDER DIVISION OF THE DEPARTMENT OF CORRECTIONS SO AS TO REQUIRE THAT THE DIVISION REFER TO THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES THE NAMES OF COMMITTED YOUTHFUL OFFENDERS FOR CONDITIONAL RELEASE AND UNCONDITIONAL DISCHARGE; TO AMEND SECTION 24-19-50, AS AMENDED, RELATING TO THE POWERS OF COURTS UPON CONVICTION OF YOUTHFUL OFFENDERS SO AS TO SUBSTITUTE THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES IN PLACE OF THE YOUTHFUL OFFENDER DIVISION AS THE DISCHARGE AUTHORITY FOR YOUTHFUL OFFENDERS UNDER TWENTY-ONE SENTENCED INDEFINITELY TO THE YOUTHFUL OFFENDER DIVISION OF THE DEPARTMENT OF CORRECTIONS; TO AMEND SECTION 24-19-90, AS AMENDED, RELATING TO OPTIONS OF THE DIRECTOR OF THE RECEPTION AND EVALUATION CENTER, SO AS TO PROVIDE THAT THE DIRECTOR MAY RECOMMEND TO THE YOUTHFUL OFFENDER DIVISION OF THE DEPARTMENT OF CORRECTIONS THAT A COMMITTED YOUTHFUL OFFENDER BE REFERRED TO THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES FOR CONDITIONAL RELEASE UNDER SUPERVISION; TO AMEND SECTION 24-19-110, AS AMENDED, RELATING TO THE PROCEDURE FOR CONDITIONAL RELEASE OF YOUTHFUL OFFENDERS, SO AS TO PROVIDE THAT THE YOUTHFUL OFFENDER DIVISION OF THE DEPARTMENT OF CORRECTIONS MAY, AFTER REASONABLE NOTICE TO THE DIRECTOR, REFER TO THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES THE NAME OF A COMMITTED YOUTHFUL OFFENDER FOR CONDITIONAL RELEASE UNDER SUPERVISION, THAT THE DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES RATHER THAN THE YOUTHFUL OFFENDER DIVISION MAY ASSESS REASONABLE FEES TO BE PAID BY YOUTHFUL OFFENDERS TO OFFSET COSTS OF SUPERVISION, AND THAT THE BOARD OF PROBATION, PAROLE AND PARDON SERVICES RATHER THAN THE YOUTHFUL OFFENDER DIVISION MAY DISCHARGE A COMMITTED YOUTHFUL OFFENDER UNCONDITIONALLY AT THE EXPIRATION OF ONE YEAR FROM THE DATE OF CONDITIONAL RELEASE; TO AMEND SECTION 24-19-130, RELATING TO REVOCATION OR MODIFICATION OF ORDERS OF THE YOUTHFUL OFFENDER DIVISION OF THE DEPARTMENT OF CORRECTIONS, SO AS TO PROVIDE THAT THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES RATHER THAN THE YOUTHFUL OFFENDER DIVISION MAY REVOKE OR MODIFY PREVIOUS ORDERS RESPECTING YOUTHFUL OFFENDERS; TO AMEND SECTION 24-19-140, RELATING TO SUPERVISORY AGENTS OF YOUTHFUL OFFENDERS PERMITTED TO REMAIN AT LIBERTY OR CONDITIONALLY RELEASED, SO AS TO SUBSTITUTE THE DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES FOR THE YOUTHFUL OFFENDER DIVISION AS THE APPOINTING AND REGULATING AUTHORITY FOR SUPERVISOR AGENTS AND REGULATIONS; TO AMEND SECTION 24-19-150, RELATING TO TREATMENT AND RETURN TO CUSTODY OF YOUTHFUL OFFENDERS, SO AS TO PROVIDE THAT IF, BEFORE THE UNCONDITIONAL DISCHARGE OF A CONDITIONALLY RELEASED YOUTHFUL OFFENDER, THE SOUTH CAROLINA BOARD OF PROBATION, PAROLE AND PARDON SERVICES IS OF THE OPINION THAT A YOUTHFUL OFFENDER WILL BE BENEFITED BY FURTHER TREATMENT, THE BOARD OF PROBATION, PAROLE AND PARDON SERVICES RATHER THAN THE YOUTHFUL OFFENDER DIVISION MAY DIRECT HIS RETURN TO CUSTODY AND MAY REVOKE THE ORDER OF CONDITIONAL RELEASE; AND TO AMEND SECTION 24-21-560, RELATING TO COMMUNITY SUPERVISION PROGRAMS AND REQUIREMENTS OF NOTIFICATION OF RELEASE OF PRISONERS TO COMMUNITY SUPERVISION PROGRAMS, SO AS TO PROVIDE THAT VICTIMS REGISTERED PURSUANT TO SECTION 16-3-1530(C) (THE VICTIMS AND WITNESSES BILL OF RIGHTS) AND THE SHERIFF'S OFFICE IN THE COUNTY WHERE A PRISONER SENTENCED FOR A "NO PAROLE OFFENSE" IS TO BE RELEASED MUST BE NOTIFIED BY THE DEPARTMENT OF CORRECTIONS RATHER THAN THE DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES, AND TO PROVIDE THAT THE DEPARTMENT OF PROBATION, PAROLE AND PARDON SERVICES MUST NOTIFY THE REGISTERED VICTIM UPON THE REVOCATION OR COMPLETION OF A COMMUNITY SUPERVISION PROGRAM.

Senator THOMAS asked unanimous consent to make a motion to take up the Bill for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill. The question being the adoption of the amendment proposed by the Committee on Corrections and Penology.

The Committee on Corrections and Penology proposed the following amendment (490R006.DLT), which was adopted:

Amend the bill, as and if amended, by striking SECTION 3 (as contained on page 490-4, lines 31 through 42, and on page 490-5, lines 1 through 3) in its entirety and inserting in lieu thereof the following:

/SECTION   3.   Section 24-19-30 of the 1976 Code is amended to read:

"Section 24-19-30.   The division shall consider problems of treatment and correction; shall consult with and make recommendations to the director with respect to general treatment and correction policies and procedures for committed youthful offenders, and recommend orders to direct the release of youthful offenders conditionally under supervision and the unconditional discharge of youthful offenders; and take such further action and recommend such other orders to the director as may be necessary or proper to carry out the purpose of this chapter."/

Amend the bill further, as and if amended, page 490-5, SECTION 4, by striking line 23 and inserting in lieu thereof the following:

/until released or discharged by the division, South Carolina Department of Probation,/.

Amend the bill further, as and if amended, page 490-6, SECTION 6, by striking lines 12 through 26 in their entirety and inserting in lieu thereof the following:

/"Section 24-19-110.   The division may at any time after reasonable notice to the director release conditionally under supervision a committed youthful offender. When, in the judgment of the director, a committed youthful offender should be released conditionally under supervision he shall so report and recommend to the division. refer to the South Carolina Board of Probation, Parole, and Pardon Services the name of a committed youthful offender for conditional release under supervision.

The Board, by a majority vote or a three member panel of the Board by a unanimous vote, may conditionally release or unconditionally discharge a youthful offender. An administrative hearing officer may be appointed by the Director of the Department of Probation, Parole, and Pardon Services to review the youthful offender's case and submit to the Board or a three member panel of the Board written findings of fact and recommendations which shall be the basis for a determination by the Board or three member panel of the Board.

The division Department of Probation, Parole, and Pardon Services may shall regularly assess a reasonable regular supervision fee or an intensive supervision fee pursuant to Section 24-21-80 to be paid by the youthful offender who is on conditional release to offset the cost of his supervision.

The division Board of Probation, Parole, and Pardon Services may discharge a committed youthful offender unconditionally at the expiration of one year from the date of conditional release."/

Amend the bill further, as and if amended, page 490-7, SECTION 8, by striking lines 4 and 5 and inserting the following:

/voluntary supervisory agents and sponsors. The powers and duties of voluntary supervisory agents and sponsors shall be limited and/

Amend the bill further, as and if amended, page 490-7, SECTION 9, by striking lines 12 through 26 in their entirety and inserting the following:

/"Section 24-19-150   If, at At any time before the unconditional discharge of a committed youthful offender, the Division is of the opinion that such youthful offender will be benefited by further treatment in an institution or other facility any member of the Division may direct his return to custody or if necessary may issue a warrant for the apprehension and return to custody of such youthful offender and cause such warrant to be executed by an appointed supervisory agent, or any policeman supervising agent may issue or cause the issuing of a warrant and cause the youthful offender to be arrested for violating any of the conditions of the conditional release and returned to the custody of the South Carolina Department of Corrections The supervising agent may, instead of issuing a warrant, issue a written citation and affidavit under Section 24-21-300. Upon return to custody, such youthful offender shall be given an opportunity to appear before the Division or a member thereof. The Division may then or at its discretion revoke the order of conditional release. a hearing officer appointed by the Director of the South Carolina Department of Probation, Parole, and Pardon Services. A decision by the hearing officer to revoke a conditional release shall be forwarded to the Board of Probation, Parole, and Pardon Services for a final decision. The decision of the Board of Probation, Parole, and Pardon Services shall be based on the findings and recommendation of the hearing officer unless the Board of Probation, Parole, and Pardon Services decides to conduct a de novo hearing. No appeal from a decision of the Board of Probation, Parole, and Pardon Services shall be allowed."/

Amend title to conform.

The amendment was adopted.

There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.

On motion of Senator THOMAS, with unanimous consent, S. 490 was ordered to receive a third reading on Friday, June 6, 1997.

On motion of Senator MOORE, the following appointments were read in open session:

Having received a favorable report from the Committee on Banking and Insurance, the following appointment was confirmed in open session:

Reappointment, Commission on Consumer Affairs, with term to commence September 1, 1996, and to expire September 1, 2000:

At-Large:

Mr. William Patrick Flack, 2041 Bolt Drive, Anderson, S.C., 29621

Having received a favorable report from the Committee on Corrections and Penology, the following appointments were confirmed in open session:

Reappointment, South Carolina Board of Probation, Parole and Pardon Services, with terms to commence March 17, 1997, and to expire March 17, 2003:

5th Congressional District:

Mr. Joseph P. Hodges, 131 Jordan Street, Bennettsville, S.C., 29512

The question then was confirmation of the appointment of Mr. Joseph P. Hodges.

Senator McCONNELL argued contra to the adoption of the appointment of Mr. Hodges and Senators LEATHERMAN, SALEEBY and ELLIOTT argued in favor.

Senator RAVENEL argued contra to the adoption of the appointment of Mr. Hodges.

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

Alexander                 Bryan                     Elliott
Giese                     Glover                    Hayes
Jackson                   Lander                    Leatherman
Martin                    Matthews                  McGill
Moore                     Patterson                 Peeler
Rankin                    Ryberg                    Saleeby
Thomas                    Washington                

Cork                      Courson                   Fair
Ford                      Gregory                   Leventis
McConnell                 Mescher                   O'Dell
Passailaigue              Ravenel                   Reese
Rose                      Setzler                   Short

Courtney   Holland   Hutto
Land   Russell   Waldrep
Wilson

The appointment of Mr. Hodges was confirmed.

Reappointment, South Carolina Board of Probation, Parole and Pardon Services, with term to commence March 15, 1997, and to expire March 15, 2003:

3rd Congressional District:

Mr. John F. Elliott, 132 Surrey Circle, Aiken, S.C. 29801

Having received a favorable report from the Committee on Education, the following appointments were confirmed in open session:

Reappointments, South Carolina Arts Commission, with terms to commence June 30, 1997, and to expire June 30, 2000:

At-Large:

Elizabeth N. Adams, Ph.D., 303 Saluda Avenue, Columbia, S.C. 29205

Mr. John B. Heaton, 943 Calhoun Place, SE, Aiken, S.C. 29801

Initial Appointment, South Carolina Arts Commission, with term to commence June 30, 1995, and to expire June 30, 1998:

At-Large:

Eligio Maoli, Ph.D., Maoli Consolidated Enterprises, 1201 Hampton Street, #2A-3, Columbia, S.C. 29201 VICE Frances B. Stogner

Reappointment, State Board for Technical and Comprehensive Education, with term to commence July 1, 1996, and to expire July 1, 2002:

6th Congressional District:

Mr. W. Reynolds Williams, Willcox, McLeod, Buyck & Williams, P.O. Box 1909, Florence, S.C. 29503-1909

Initial Appointment, John De La Howe School Board of Trustees, with term to commence April 1, 1995, and to expire April 1, 2000:

At-Large:

Ms. Frances B. Stogner, 545 Simmons Avenue, Summerville, S.C. 29483

Initial Appointment, Commission on Higher Education, with term to commence June 30, 1996, and to expire June 30, 1998:

Private College President-w/o vote

Joab M. Lesesne, Jr., PhD., President, Wofford College, 429 North Church Street, Spartanburg, S.C. 29303-3663

Initial Appointment, Commission on Higher Education, with term to commence July 1, 1996, and to expire July 1, 1998:

Four-year Institution, Ex Officio:

Mr. Timothy N. Dangerfield, 20 Wax Myrtle Circle, Aiken, S.C. 29803   VICE E. Bart Daniel (resigned)

Having received a favorable report from the Committee on Finance, the following appointment was confirmed in open session:

Initial Appointment, Board of Directors of the Gift of Life Trust Fund, with term to commence April 1, 1996, and to expire April 1, 2000:

Interested Party

Ms. Sharon D. Burgess Madison, Route 3, Box 1075, Summerton, S.C. 29148

Having received a favorable report from the General Committee, the following appointments were confirmed in open session:

Initial Appointment, Commission on Women, with term to commence October 18, 1997, and to expire October 18, 2001:

At-Large:

Ms. Kristen S. Maguire, 216 King's Way, Clemson, S.C. 29631 VICE M. Janet K. Allgood

Reappointment, Commisison of Women, with term to commence October 18, 1997, and to expire October 18, 2001:

Ms. Clara Holland Heinsohn, 1740 Vassar Drive, Charleston, S.C. 29407

Having received a favorable report from the Committee on Judiciary, the following appointments were confirmed in open session:

Reappointments, State Human Affairs Commission, with terms to commence June 30, 1997, and to expire June 30, 2000:

3rd Congressional District:

Ms. Janice C. McCord, 50 Noble Drive, Abbeville, S.C. 29620

4th Congressional District:

Mr. Michael R. Watkins, 133 Fawn Brook Drive, Greer, S.C. 29650-2517

Mr. Harris G. Andrews, 9 Selwyn Drive, Greenville, S.C. 29615-1726

5th Congressional District:

Ms. Gloria G. Rosemond, 1809 West Buford Street, Gaffney, S.C. 29341

Reappointment, South Carolina Public Service Authority, with term to commence May 19, 1994, and to expire May 19, 2001:

Georgetown:

Mr. Johnnie J. Young, 2413 Topsaw Road, Georgetown, S.C. 29440

Reappointment, Juvenile Parole Board, with term to commence June 30, 1997, and to expire June 30, 2001:

At-Large:

Mr. William J. Capers, 3244 Starlette Avenue, North Charleston, S.C. 29420-8847

Reappointment, South Carolina Public Service Authority, with term to commence May 19, 1997, and to expire May 19, 2004:

Chairman:

Mr. John S. Rainey, Post Office Box 487, Columbia, S.C. 29202

Initial Appointment, State Human Affairs Commission, with term to commence June 30, 1996, and to expire June 30, 1999:

At-Large:

Ms. Brenda L. Martin, 1031 Shiloh Road, Seneca, S.C. 29678 VICE Al Norris, Jr.

Reappointment, South Carolina Foster Care Review Board, with term to commence June 30, 1997, and to expire June 30, 2001:

6th Congressional District:

Ms. Della A. Baker, Post Office Box 4354, Florence, S.C. 29502-4354

Initial Appointment, South Carolina Workers' Compensation Commission, with term to commence April 27, 1997, and to expire April 27, 1999:

Chairman:

Mr. W. Lee Catoe, 9813 Highgate Road, Columbia, S.C. 29223 VICE Thomas M. Marchant, III (as Chairman only)

The question was confirmation of the appointment of Mr. W. Lee Catoe.

The appointment of Mr. Catoe was confirmed.

We certify that we took no action in the consideration of nor in voting in the matter of the appointment of Mr. W. Lee Catoe which would preclude representation of a client under the provisions of Section 8-13-745.

Having received a favorable report from the Committee on Labor, Commerce and Industry, the following appointments were confirmed in open session:

Reappointment, State Board of Social Work Examiners, with term to commence November 27, 1995, and to expire November 27, 1999:

Public:

Ms. Ruth B. Herron, 114 Fabrica Street, Clemson, S.C. 29631-1110

Initial Appointments, Disciplinary Panel for Massage/Bodywork, with terms to commence June 30, 1997, and to expire June 30, 1999:

Therapist:

Ms. Teresa D. Lewis, 648 Hampton Circle, North Augusta, S.C. 29841-2531

Ms. Susan M. Jones, TheraCare of Greenwood, 212 Phoenix Street, Greenwood, S.C. 29646

Initial Appointment, Advisory Panel for Massage/Bodywork, with term to commence June 30, 1997, and to expire June 30, 2001:

Therapist:

Ms. Carolyn C. Talley, Greenville Myotherapeutic and Sports Massage, 20 Mills Avenue, Greenville, S.C. 29605

Initial Appointment, South Carolina Real Estate Appraisers Board, with term to commence May 31, 1997, and to expire May 31, 2000:

Appraiser-General:

Mr. Charles B. Stone, Stone & Associates, Inc., 308 West Stone Avenue, Greenville, S.C. 29609

Initial Appointment, South Carolina Residential Builders Commission, with term to commence June 30, 1996, and to expire June 30, 2000:

1st Congressional District:

Mr. Caleb L. Davis, Jr., MSC 75, The Citadel, Charleston, S.C. 29409

Reappointments, Residential Builders Commission, with terms to commence June 30, 1997, and to expire June 30, 2001:

2nd Congressional District - Builder:

Mr. M. Stewart Mungo, Michael J. Mungo Company, 441 Western Lane, Irmo, S.C. 29063-9071

At-Large - Specialty Contractor:

Mr. Carl Lyn Bailey, Bailey Heating & Controls, Inc., Post Office Box 112, Simpsonville, S.C. 29681

Initial Appointment, South Carolina State Housing Finance and Development Authority, with term to commence August 15, 1997, and to expire August 15, 1997:

At-Large:

Mr. James J. Kerr, 2745 Canter Lane, Johns Island, S.C. 29455

Having received a favorable report from the Committee on Medical Affairs, the following appointments were confirmed in open session:

Reappointments, Board of Health and Environmental Control, with terms to commence June 30, 1997, and to expire June 30, 2001:

At-Large - Chairman:

Mr. John Hay Burriss, 130 Haywain Drive, Chapin, S.C. 29036

5th Congressional District:

William M. Hull, Jr., M.D., Rock Hill Eye Clinic, P.A., Post Office Drawer 2874, Rock Hill, S.C. 29732-2874

Reappointment, South Carolina Mental Health Commission, with term to commence March 21, 1997, and to expire March 21, 2002:

2nd Congressional District:

Mrs. Brenda H. Council, 493 Brewton Street, Orangeburg, S.C. 29115

Reappointment, South Carolina Advisory Council on Aging, with term to commence June 30, 1997, and to expire June 30, 2001:

Area 5:

Mark J. Meiler, M.D., 148 University Parkway, Aiken, S.C. 29801

Initial Appointment, State Board of Pharmacy, with term to commence June 30, 1997, and to expire June 30, 2003:

2nd Congressional District:

Mr. Davis C. Hook, Jr., Revco Drug Store #2766, 1520 Taylor Street, Columbia, S.C. 29201

Initial Appointment, Commission of Hearing Aid Specialists, with term to commence July 31, 1996, and to expire July 31, 2000:

Dealer - Miracle-Ear:

Mr. James D. Schendel, 418 South Coit Street, #A, Florence, S.C. 29501 VICE James E. Wasson

Reappointment, Advisory Board to the Head and Spinal Cord Injury Division of the Department of Disabilities and Special Needs, with term to commence June 30, 1997, and to expire June 30, 2001:

2nd Congressional District:

Mr. William B. Robb, Jr., 1008 Drawdebil Road, Gilbert, S.C. 29054

Reappointment, Commission on Disabilities and Special Needs, with term to commence June 30, 1997, and to expire June 30, 2001:

3rd Congressional District:

Mrs. Emilie A. Towler, Post Office Box 1285, Aiken, S.C. 29802

Initial Appointment, Dry Cleaning Advisory Council, with term to commence July 1, 1995, and to expire June 30, 1998:

Dry Clean. Ind.

Mr. Rick N. Osbon, Osbon Laundry & Cleaners, 136 Pendleton Street, S.W., Aiken, S.C. 29801-3862

Having received a favorable report from the Beaufort County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Beaufort County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

The Honorable Joseph N. Kline, 42 Kline Circle, Seabrook, S.C. 29940 VICE Deloris L. Washington (resigned)

Having received a favorable report from the Fairfield County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Fairfield County Magistrate, with term to commence April 30, 1995, and to expire April 30, 1999:

The Honorable T. Leon Thompson, Route 1, Box 37-A, Jenkinsville, S.C. 29065 VICE Ernestine M. Rabb (vacated)

Having received a favorable report from the Chesterfield County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Chesterfield County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

The Honorable Gary Rickey Faulkenberry, Post Office Box 133, Pageland, S.C. 29728 VICE David H. Freeman (retired)

Reappointment, Chesterfield County Magistrate, with term to commence April 30, 1994, and to expire April 30, 1998:

Honorable Elizabeth F. Gulledge, Post Office Box 131, Ruby, S.C. 29741

Having received a favorable report from the Lee County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Lee County Board of Voter Registration, with term to commence March 15, 1996, and to expire March 15, 1998:

At-Large:

Mr. Henry Wilson, Post Office Box 523, Elliott, S.C. 29046 VICE Betty Addison

On motion of Senator MOORE, with unanimous consent, the Senate agreed that when the Senate adjourns today, it stand adjourned to meet at 11:00 A.M. beginning on Friday, June 6, 1997, through Monday, June 16, 1997 for local and uncontested matters and matters allowed under S. 811, the Sine Die Resolution, and, further, that when the Senate adjourns Monday, June 16, 1997, that it stand adjourned to meet Tuesday, June 17, 1997, at 11:00 A.M.

At 4:58 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of S. 811, the Sine Die Resolution, for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

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