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, hear words of reasoning by St. Paul to the Romans, Chapter 8 (v. 12):
"So then, brethren, we are debtors, not to the flesh, to live according to the flesh--for if you live according to the flesh, you will die, but if by the Spirit you put to death the deeds of the body, you will live."
Let us pray.
Our Father, we are shocked anew by the tidings from India.
In spite of our efforts to build a community of love and brotherhood on our globe... called earth, by the elimination of weapons to destroy people, the ugly dragon of nuclear proliferation has raised its head.
Help us to find a way to hear and heed the words of the Jewish Rabbi named Jesus in the Sermon on the Mount by the Sea of Galilee.
Help us to choose life.
Amen.

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

MEMORANDUM
TO:         The Honorable Sandra K. McKinney, Clerk of the House of Representatives
The Honorable Frank Caggiano, Clerk of the Senate
FROM:     Senator John Courson
SUBJECT:   Magistrates Study Committee Report
DATE:     May 13, 1998

Pursuant to Concurrent Resolution S. 1432 of 1996 and Concurrent Resolution S. 199 of 1997, the Magistrates Study Committee submits its report and requests that it be printed in the House and Senate Journals. Thank you for your consideration in this matter.

The Magistrates Study Committee, which was established by Concurrent Resolution S. 1432 of 1996 and extended by Concurrent Resolution S. 199 of 1997, had eight (8) members, four (4) appointed by the Chairman of the Senate Judiciary Committee and four (4) by the Speaker of the House of Representatives. The members of the study committee, which included Senators, members of the House of Representatives, and magistrates, were Senator John E. Courson (Richland), Cchairman; Representative Jackson S. "Seth" Whipper (Charleston), Vice-Chairman; Senator Luke A. Rankin (Horry); Representative William F. "Bill" Cotty (Richland/Kershaw); Representative Ronald N. "Ron" Fleming (Union); Judge R. Eugene Hartis (Kershaw); Judge Becky W. Gerrard (Oconee); and Judge J. Metz Looper (Greenville).
The study committee's task was to formulate recommendations for the General Assembly to consider in evaluating the laws concerning (1) jurisdiction, (2) number of available positions, (3) location, (4) qualifications, (5) continuing education and certification requirements, (6) compensation and other benefits, and (7) the magistrates courts' role in the uniform judicial system.
By acquiring information through public hearings in each congressional district and additional meetings in Columbia, the study committee considered a massive amount of material concerning magistrates courts in this State. The members of the study committee received letters from the public and written reports and recommendations from agencies and organizations, and heard from state and county officials and employees, persons involved in continuing education for magistrates, attorneys and litigants, magistrates, and citizens. Information received by the study committee, at the date of this report, indicated that:
--   magistrates handle about sixty-six (66%) percent of the trial cases in the State;
--   of approximately two hundred ninety-one (291) magistrates in the State, one hundred thirty-one (131) are full time and one hundred sixty (160) are part-time;
--   one hundred and seventy-six (176) of the magistrates had completed two years of college or technical school, or had an Associate, Bachelors, Masters, or Doctorate degree; twenty-three (23) magistrates are lawyers;
--   dependent upon the hours worked and the particular county involved, salaries for magistrates range from approximately five thousand dollars ($5,000) to the mid-sixty thousand dollar range (mid-$60,000's); and
--   the Supreme Court requires magistrates to complete at least eighteen (18) hours of continuing education each year.
After careful consideration, the study committee submits this report of its conclusions. With the exception of the minority reports concerning educational requirements, the report represents the opinion of all members of the study committee.
(1)   JURISDICTION
The study committee considered suggestions for raising the jurisdictional amount for civil cases tried in magistrates courts, but adopted no recommendation for increasing the amount at this time or in the future. Instead, the study committee chose to concentrate on increasing educational requirements to enable magistrates to effectively deal with the legal issues they confront in their courts.
(2)   NUMBER OF AVAILABLE POSITIONS
The study committee makes no recommendation to change the current formula for determining the number of magistrates in a county (the maximum number of magistrates in each county is the greater of that number determined by taking one (1) magistrate for every twenty-eight thousand (28,000) persons in each county, or that number determined by taking the average of the ratio of one (1) magistrate for every twenty-eight thousand (28,000) persons in each county and the ratio of one (1) magistrate for every one hundred fifty (150) square miles of area in each county); however, the study committee suggests that additional magistrates be added for counties collecting five hundred thousand dollars ($500,000) or more in accommodations tax revenues. In addition, while the study committee considered whether a county should have at least one (1) or two (2) full-time magistrates, it does not recommend a required number of full-time magistrates.
(3)   LOCATION
The study committee recommends that magistrates become state employees paid by the Supreme Court/Court Administration which would, with informational input from the counties, determine the number of full-time and part-time positions and the location of magistrates.
(4)   QUALIFICATIONS
The study committee suggests that educational qualifications for magistrates be increased from a high school equivalency to an Associate Degree for magistrates' terms beginning on or after May 1, 2002, and a Bachelor's Degree for terms beginning on or after May 1, 2006. The majority of the study committee recommends that no current magistrates be "grandfathered;" however, a minority disagrees and submits its own report on this issue.
(5)   CONTINUING EDUCATION AND CERTIFICATION
The study committee suggests that a mandatory eligibility examination be administered by Court Administration (through the technical college system) to all applicants for magistrate, and that the examination's results be used by Senators to assist in selecting nominees. In addition, the study committee recommends that the existing magistrate certification examination requirements be supplemented by a two-year continuing education program (administered by Court Administration through the technical college system) available to magistrates who have completed the certification examination. An advisory council would be established to make recommendations to the Supreme Court regarding the eligibility examination, certification examination, and continuing education requirements. Also, the study committee would provide that a newly appointed magistrate could not try a case unless he had observed four (4) criminal cases in a magistrates court, two (2) of which must be in a magistrates court where he will not preside; four (4) civil cases in a magistrates court, two (2) of which must be in a magistrates court where he will not preside; one (1) criminal jury trial in circuit court; and one (1) civil jury trial in circuit court.
(6)   COMPENSATION AND OTHER BENEFITS
The study committee received a resolution from the Summary Court Judges' Association which recommended increasing a magistrate's salary based upon a portion of a circuit judge's salary and dependent upon the population of the county in which the magistrate serves. The Summary Court Judges' Association's resolution left intact the existing six-tier population structure for determining magistrates' salaries.
The study committee changed the six-tier population structure to a three-tier structure with a magistrate's salary based upon a portion of a circuit judge's salary. The three tiers would be based on a population of:
one hundred fifty thousand (150,000) and above--sixty percent (60%) of a circuit court judge's salary
fifty thousand (50,000) but not more than one hundred forty-nine thousand, nine hundred ninety-nine (149,999)--fifty percent (50%) of a circuit court judge's salary
less than fifty thousand (50,000)--forty percent (40%) of a circuit court judge's salary
Also, the provisions for part-time pay (A part-time magistrate working twenty (20) hours but less than thirty (30) hours a week must receive fifty-five percent (55%) of a full-time magistrate's pay for that county, and a part-time magistrate working less than twenty (20) hours per week must receive thirty percent (30%) of a full-time magistrate's pay for that county) and the following salary schedule, which was proposed in the Summary Court Judges' Association's resolution, was adopted by the study committee:
70% of base salary upon appointment
80% of base salary upon completing requirements to try cases (including certification examination)
85% of base salary upon completion of second year in office
90% of base salary upon completion of third year in office
100% of base salary upon completion of fourth year in office.
Based upon a report and information from the South Carolina Retirement System the study committee recommends that all magistrates be placed under the Police Retirement System (which allows retirement after twenty-five (25) years). Magistrates in the State Retirement System could pay to transfer their existing service to the Police System.
(7)   THE MAGISTRATES COURTS' ROLE IN THE UNIFORM JUDICIAL SYSTEM
The study committee recommends that the law be clarified so the Supreme Court could suspend or remove a magistrate for failure to meet retirement or continuing education requirements. Also, the study committee requests the Supreme Court to make a report to the Chairmen of the Senate and House Judiciary Committees with recommendations for further changes.

RESPECTFULLY SUBMITTED:
SENATOR JOHN E. COURSON (RICHLAND), CHAIRMAN
SENATOR LUKE A. RANKIN (HORRY)
REPRESENTATIVE RONALD N. "RON" FLEMING (UNION)
JUDGE R. EUGENE HARTIS (KERSHAW)
JUDGE BECKY W. GERRARD (OCONEE)

The undersigned three (3) members of the study committee, with all due respect to the Chairman and other members who voted in the majority not to "grandfather" or exempt those magistrates now serving throughout the State from the new proposed educational requirements for reappointment, do hereby submit this minority report and request that same be included in the formal report of the study committee to the General Assembly:
1.   We believe that the number of judges now serving as magistrates in South Carolina who do not presently have either a two (2) year or four (4) year college education are less than one- third of the total; and that in most if not all such cases, including both those serving in full-time or part-time capacity, these are persons who due to their overall background, formal and informal education, as well as work and life experiences are exceptionally well-qualified, capable, and fine members of the magisterial system.
2.   In those few and select instances where a person who is presently serving as a magistrate may be determined to be lacking the overall intellectual, educational, or administrative skills necessary to adequately perform the duties and responsibilities required of a magistrate, we believe that the new training, testing, and other requirements and standards as determined appropriate by both the General Assembly and Supreme Court will be such that the magistrates who do not meet these requirements and standards can either be provided the necessary training and opportunities for improvement so as to qualify or otherwise be eliminated without mandating their compliance with these new educational qualifications.
3.   We feel strongly that to not grant an exemption from those new formal educational requirements for appointment for those now serving as a magistrate would be unfair and do an injustice to a number of highly skilled and capable members of the system who otherwise may not be able to qualify for retirement benefits.
4.   The undersigned sincerely request that the respective members of the Senate and House of Representatives give favorable consideration to approval of a magistrates' court reform bill which "grandfathers" those magistrates now serving and/or appointed prior to July 1, 1998, from these new formal educational standards; it being our belief that the overall magisterial system will be stronger and fairer through allowing these individuals to continue their service with the condition that they comply with all other legislative and/or Supreme Court directives with regard to training, testing, and service in the position of magistrate.
RESPECTFULLY SUBMITTED:
REPRESENTATIVE JACKSON S. "SETH" WHIPPER (CHARLESTON), VICE-CHAIRMAN
REPRESENTATIVE WILLIAM F. "BILL" COTTY
(RICHLAND/KERSHAW)
JUDGE J. METZ LOOPER (GREENVILLE)

With all due respect to the members who voted in the majority, I would respectfully submit a minority report concerning the salary schedule proposed for newly-appointed magistrates. I believe a person appointed to serve as a magistrate should be entitled to the full salary for that position upon his appointment.

RESPECTFULLY SUBMITTED:
REPRESENTATIVE JACKSON S. "SETH" WHIPPER (CHARLESTON), VICE-CHAIRMAN

On motion of Senator COURSON, with unanimous consent, ordered printed in the Journal.

On motion of Senator REESE, all appointments on the desk which were reported out of the Executive Session of Wednesday, May 6, 1998, and pending confirmation were carried over.

The following was received and referred to the appropriate committee for consideration:

Document No. 2306
Promulgated by Department of Natural Resources
Hunt Units and Wildlife Management Area Regulations
Received by Lt. Governor May 5, 1998
Referred to Senate Committee on Fish, Game and Forestry
120 day review expiration date (revised) September 2, 1998

Senators WILSON and LANDER introduced Dr. Bill Gerard of Columbia, S.C., Doctor of the Day.

On motion of Senator McGILL, at 11:00 A.M., Senator SHORT was granted a leave of absence for today.

On motion of Senator PATTERSON, at 11:00 A.M., Senator MATTHEWS was granted a leave of absence for today.

At 1:00 P.M., Senator McGILL requested a leave of absence for the balance of the day.

Senator DRUMMOND was recognized to introduce Ms. Darla Moore, who was, by prior motion, extended the Privilege of the Floor to address the members of the South Carolina Senate.

Mr. President and ladies and gentlemen of the Senate, it is my very great honor to introduce to you our guest today.
As you all know, granting the privilege of this floor to stand at this podium is a rare and very special event.
It is therefore quite fitting that the senate has extended this privilege to a rare and very, very special person. Someone who hasn't forgotten her roots.
Our guest embodies the term leadership. She leads by the example of her deeds and she will show you today, as I saw Monday evening, the leadership of her message.
She is successful beyond description in the field of corporate finance, she is president of one of America's largest private investment firms, Rainwater, Inc. She sits on the board of directors of several major corporations and she is a native daughter of Lake City, South Carolina.
Mr. President, ladies and gentlemen of the Senate, I am pleased and proud to introduce Ms. Darla D. Moore.

On motion of Senator ELLIOTT, with unanimous consent, the remarks of Ms. Moore were ordered printed in the Journal as follows:

Remarks by:   Darla Moore
Title:         "Permanent State of Disrepair"
At:           South Carolina   Senate
Date:         May 13, 1998

"Good afternoon. Thank you, Senator Drummond, for that kind introduction and for the opportunity to address this august body. As you indicated, I've sported a lot of titles in my career... and collected a good many epithets.
But, today, you can just call me 'lightning rod.'
For I'm here for no other purpose than to attract and focus energy on an issue I think we all deem critically important to the future of this State--education.
I have no political agenda today... no particular business objective to satisfy here ... save perhaps one--protecting the $25 million dollar investment I just made in South Carolina.
I'm a native daughter of this State, so I hope you'll pardon me if I speak freely. I was born and raised here in Lake City, one of the poorer school districts in South Carolina. I went to University here, the very University I just endowed. And then I did what all promising students in South Carolina do.
I left.
I left with $400 dollars, a car from my grandmother... and a Bachelor of Arts Degree from USC.
Twenty years later, I returned to the State with $25 million dollars. That's no accident.
This fortune was earned... elsewhere, I might point out... working in various corners of the financial world. First, as an entrepreneur within a large company--Chemical Bank, now Chase Manhattan--financing bankrupt companies.
There I learned about chaos. I learned about bad management. I learned about poor capital structures...[all directly relevant to my topic today].
I made a good deal of money for that institution... and for myself.
Then, I moved to the private equity market and continued to allocate my own capital.
Our management philosophy at Rainwater, Inc. is quite simple... and it's proven to be quite effective. We identify areas of opportunity. Then we allocate capital to the best ideas... assets... and managers within those areas of opportunity. The result is: job creation... individual and corporate taxes... shared wealth.
In essence, we're financial architects or engineers. We allocate capital to secure the best and highest return for all involved. We pick great managers and back them. Then we get out of their way.
If, over time, they don't perform, we replace them. Despite what you may have read, however, that's a rare occurrence.
I tell you all this because it provides you with some insight as to how I manage my investments. And I just made a substantial investment in the educational system of this State.
I've been doing my research over the last several weeks... assessing South Carolina's current educational status... the condition of its schools... the fiscal management of its budget. And I must say, I'm surprised we haven't finished lower than dead last in the nation on more measures of academic performance.
We already have the lowest average SAT scores and the lowest high school graduation rate in the country (1994).
With per capita income stalled at roughly 80 percent of the national average--some $19,000 dollars and change--we've become borderline third world.
I don't exagerrate when I say that South Carolina is at risk of falling into a permanent state of disrepair.
A permanent state of ignorance... a permanent state of inefficiency... a permanent state of unrealized promise.
According to a report prepared for Governor Beasley last year, South Carolina currently ranks 43rd in graduate-level science and engineering students per capita. I don't need to tell you that without scientists and engineers, it's damn near impossible to build an R&D or technology infrastructure.
And that dearth of talent starts young. According to the Kids Count Data Book, 52% of South Carolina's fourth grade students scored below basic math levels in 1996. Of course, the same percent effectively 'flunked' basic reading two years earlier.
So, you might ask, 'Where is the money going?' Nearly 50 percent of South Carolina's annual general fund dollars go to education. That's over $2.2 billion from the State alone. While that's probably short of what it needs to be, it's a lot of money. You'd think it would buy better than 'dead last.'
Permanent state of ignorance--
So, let's look at this 'permanent state of ignorance' I alluded to, and figure out where the system is breaking down... where it's failing our children.
Higher education is obviously an area that I take some personal interest in. Did you know that we in South Carolina pay the highest in-state tuition in the region at $3,600 dollars a year? That's as much as 25 percent higher than some of our neighbors.
That could be because we have one of the lowest endowments... a paltry $150 million dollars as compared to, say, $800 million dollars at the University of North Carolina. Our other neighbor Georgia's endowment is 66 percent higher... it's tuition 20 percent lower.
But the real culprit here is state under-funding--to the tune of about $225 million dollars a year. To match the average funding formula of southeastern colleges, South Carolina should be allocating $855 million (ck) to institutions of higher learning. We're allocating $633 million in that direction today.
The percentage of university revenues represented by state appropriations is the lowest in the region... and it's been decreasing for the past ten years!
This in a State that consistently runs big surpluses... maintains gargantuan 'rainy day' reserves... and rebates property and corporate taxes with abandon. I don't get it.
What I also don't get is how we're directing those funds. There are 33 state-supported colleges and universities in South Carolina... with 45 percent of the student body attending one of them, USC. That's 32 underutilized campuses we're supporting. That is not cost-effective.
The experts tell us that for every 3.7 million people, a state needs one research university. There are just under 4 million people in South Carolina. We have three research universities. Now, I know that we're not too good at math, but even a South Carolina student like myself can figure out that's two too many. And none of the three are AAU accredited. We're the only State in the southeast not to have a Research I University.
We're never going to build a UNC or a UVA... much less a university of national standing... until we learn to focus. There's no central coordination in our higher education system. We have too few dollars chasing too many school budgets. We can't keep doing this...
K through 12... another quagmire. According to a capital needs analysis prepared in 1994--the most recent I could find--our public schools--elementary through high school--require more than $2 billion dollars through next year just to keep the physical plant up and running.   Taking into account known state and local funding sources (including the constitutional bond funding authorization and state building funds)...and assuming those would be fully tapped, we're still over $1 billion dollars short.
There are communities in this State that haven't seen a new school building in forty years. I come from one of them.
Needless to say, the children in these communities are not cruising the information superhighway. No, they're still parked in the driveway... in a broken-down pickup with no wheels. All schools are wired for the internet today but there is virtually no equipment. In a knowledge-based economy predicated on technology, that is an alarming statistic.
Children ought to be blowing their parents away with their computer skills and their ready access to a world of information. If they're not, then we have cheated them... badly.
The accountability legislation the General Assembly is working on looks promising. I am particularly pleased with the Senate's action to put dollars with words. Across the board, however, the State is not stepping up to the plate on funding. The six-year compound annual growth rate in EFA from 1990 to 1996 was only 2.7 percent. The rate for EIA is 4.5 percent and it's not enough. The per capita expenditure on students in this State is $4,800. By way of comparison, it's $5,200 in Georgia, and $5,100 in North Carolina.
What's perhaps more alarming is the gap that exists between those 'pockets of excellence.' I keep hearing about--i.e., the rich districts--and the 'pockets of shame.' Against a mean of only $4,800, there's a gap between the highest and the lowest district of $2,000 dollars per student.   Those kids in the pickup? They're never going to leave that driveway.   Permanent state of inefficiency--
So, that's the permanent state of ignorance we face. Now, for the permanent state of inefficiency. The fiscal management of this state's budget is appalling.
Yearly surpluses of $100 to $200 million dollars... 'rainy day' reserves that dwarf the gross national product of small countries... a virtually debt free balance sheet sitting atop a triple a credit rating... and corporate tax rebates and incentives that are downright promiscuous.
It's bad business. It's a fundamentally flawed financial model.
It's politics.
I'm not so naive as to think this financial chaos is an accident. Politicians have constituents to woo, constituents that believe that they're already taxed too highly... that are disinclined to spend more money on an educational system that is failing their children so obviously.
So the State underestimates annual revenue and sets money aside... and then, voila, turns around and gives it back to the voters in the form of tax rebates, the latest being this property tax rebate which removes $240 million dollars in economic growth dollars from the state's budget which consequently removes over $100 million from our school's coffers--annually.
You do what you have to do. But I think this approach seriously underestimates the intelligence of the South Carolina voter. You're robbing Peter to pay Paul. Or more aptly, you're robbing South Carolina's children to pay their parents.
And that ain't right.
State of unrealized promise--
And that's why South Carolina is falling into a permanent state of unrealized promise. We're a billion dollars short of keeping our school buildings safe and relevant to the needs of our children. We're $225 million dollars short a year of meeting the average funding formula for universities in the southeast.
Our schools are dilapidated... our students disappointed... our scores dismal.
Our situation is dire.
And yet we blithely move along, celebrating small victories in the spirit of Ross Perot, who said, 'If you got a penny, and you find another one, you've got a 100 percent return.'
We're like a man who is drowning in fifteen feet of water. We come up ten feet and we're thrilled... but we're still drowning!
Now, one of the earliest things I learned in business was where to pick my fights. So, I'm not going to try and cure the budget ills of South Carolina. I'll leave that in your capable--if hopelessly deadlocked--hands.
But I am going to plant a few seeds and leave you with one big idea.
First the seeds:
-Establish a coordinating committee to look at the dispersion of higher education resources in the State.
-Consider bringing state funding of our schools and universities up to the prevailing standards in the southeast.
-Direct some of these surplus and reserve dollars to infrastructure and technology improvements at the K through 12 level.
-Borrow some money. Use your bonding authority. At the interest rates you could secure with your sterling credit rating, it's bad fiscal management not to. Fund the physical plant needs with this.
-Reorganize the Dept. of Education. Empower a director beneath the superintendent to overhaul the delivery of education.
And now the big idea. I'll give you a hint. It's one you just shelved for another two years--a state lottery to fund education.
Now, I know this proposal has encountered some resistance on moral grounds--and I don't anticipate I'll make much headway with some on that issue--but let me appeal to the rest of you.
According to a recent Standard & Poor's report, 38 states now have public lotteries, taking in combined net revenues of $7.7 billion dollars in 1996. Gross revenues--before subtracting prizes and the cost of running the games--total $16 billion dollars. The national average is $200 million dollars per state.
Our neighbor, Georgia, takes in double that--$400 million--but that's because they're collecting South Carolina's share. I'm not joking. Georgia's lottery takes in millions from South Carolina's border counties. And with those lottery proceeds, they have accumulated a pool of money sufficient to send every public high school student (with a B average or above?) to the University of Georgia. Needless to say, the quality of that university's student body has demonstrably improved in recent years.
Call me crazy, but if South Carolina residents are going to fund an education system with a lottery, shouldn't it be ours?
This is not video poker. These are folks who throw a few dollars a week at a long shot... not half their paycheck in front of a computer screen. It's a voluntary tax. Constituents willingly pay for it... without cursing their legislature. It's a form of entertainment that funds a profound social good.
The students of South Carolina need a lottery. Polls show that well over 50% of the population favors a lottery. It's a solution that works.   Resurrect it.
Or, I believe, the permanent state of ignorance...inefficiency... and unrealized promise that I have just outlined will become our only prospect.
Conclusion--
Ladies and gentlemen, you have extended me a great courtesy today. You've listened to some tough messages with polite attention and, I'd like to think, earnest interest. I thank you for that.
I left this State with a one-way ticket over twenty years ago. It's a testament to your good faith efforts on this state's behalf that I came back and made the gesture I did to my alma mater. I certainly wouldn't be here today, presenting such a prickly message, if I didn't see genuine promise here.
South Carolina has this enormous spirit... this tenacity of resolve... this untapped enterprise. It's to those qualities that I appeal today.
We can pull ourselves out of this hole... if we but look up and direct our concerted efforts toward a common goal.
Thank you for your time and attention."

H. 3896 -- Rep. Kirsh: A BILL TO AMEND SECTION 38-9-200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CAPITAL, SURPLUS, RESERVES, AND OTHER FINANCIAL MATTERS REGARDING INSURANCE COMPANIES, REINSURANCE CREDITS, AND LIABILITY REDUCTIONS, SO AS TO REVAMP THE SECTION BY DELETING CERTAIN PROVISIONS AND LANGUAGE AND BY ADDING PROVISIONS THAT PROVIDE, AMONG OTHER THINGS, THAT THE ASSUMING INSURER SHALL SUBMIT TO EXAMINATION OF ITS BOOKS AND RECORDS BY THE DIRECTOR OF THE DEPARTMENT OF INSURANCE AND BEAR THE EXPENSE OF EXAMINATION, THAT CREDIT FOR REINSURANCE SHALL NOT BE GRANTED UNLESS THE FORM OF THE TRUST AND ANY AMENDMENTS TO THE TRUST HAVE BEEN APPROVED BY THE INSURANCE COMMISSIONER OF THE STATE WHERE THE TRUST IS DOMICILED OR THE INSURANCE COMMISSIONER OF ANOTHER STATE WHO, PURSUANT TO THE TERMS OF THE TRUST AGREEMENT, HAS ACCEPTED PRINCIPAL REGULATORY OVERSIGHT OF THE TRUST, THAT THE FORM OF THE TRUST AND ANY TRUST AMENDMENTS MUST BE FILED WITH THE INSURANCE COMMISSIONER OF EVERY STATE IN WHICH CEDING INSURER BENEFICIARIES OF THE TRUST ARE DOMICILED, THAT THE TRUST FUND FOR A SINGLE ASSUMING INSURER SHALL CONSIST OF FUNDS IN TRUST IN AN AMOUNT NOT LESS THAN THE ASSUMING INSURER'S LIABILITIES ATTRIBUTABLE TO REINSURANCE CEDED BY UNITED STATES CEDING INSURERS, AND THAT THE ASSUMING INSURER SHALL MAINTAIN A TRUSTEED SURPLUS OF NOT LESS THAN TWENTY MILLION DOLLARS.

Senator McCONNELL asked unanimous consent to make a motion to recall the Bill from the Committee on Banking and Insurance.
There was no objection.

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

H. 3897 -- Rep. Kirsh: A BILL TO AMEND SECTION 38-27-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REHABILITATION AND LIQUIDATION OF INSURERS, FORMAL PROCEEDINGS, AND LIABILITY OF THE REINSURER, SO AS TO PROVIDE, AMONG OTHER THINGS, THAT THE ORIGINAL INSURED OR POLICYHOLDER SHALL NOT HAVE ANY RIGHTS AGAINST THE REINSURER WHICH ARE NOT SPECIFICALLY SET FORTH IN THE REINSURANCE CONTRACT OR OTHER AGREEMENT BETWEEN THE REINSURER AND THE ORIGINAL INSURED OR POLICYHOLDER.

Senator McCONNELL asked unanimous consent to make a motion to recall the Bill from the Committee on Banking and Insurance.
There was no objection.

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

H. 4120 -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 7 TO TITLE 31 SO AS TO PROVIDE FOR THE ISSUANCE OF INDEBTEDNESS BY COUNTIES IN CONNECTION WITH REDEVELOPMENT PROJECTS AND THE PAYMENT OF SUCH INDEBTEDNESS FROM ADDED INCREMENTS OF TAX REVENUES.

Senator RAVENEL asked unanimous consent to make a motion to recall the Bill from the Committee on Labor, Commerce and Industry.
There was no objection.

Senator RAVENEL asked unanimous consent to commit the Bill to the Committee on Finance.
There was no objection.

The Bill was committed to the Committee on Finance.

The following were introduced:

S. 1233 -- Senator Hutto: A BILL TO AMEND SECTION 22-2-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO JURY AREAS FOR MAGISTRATES' COURTS, SO AS TO COMBINE AREA NO. 4 AND AREA NO. 8 IN ORANGEBURG COUNTY.
Read the first time and referred to the Committee on Judiciary.

S. 1234 -- Senators Washington and Jackson: A CONCURRENT RESOLUTION TO HONOR AND COMMEND THE REVEREND DR. LEROY CAIN, SR., OF LEXINGTON COUNTY, FOR FOUR DECADES OF SERVICE TO SOUTH CAROLINA AS A COMMUNITY LEADER, PASTOR, AND PUBLIC SERVANT.
The Concurrent Resolution was adopted, ordered sent to the House.

S. 1235 -- Senator Washington: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO THE ESTILL "LADY GATORS" GIRLS BASKETBALL TEAM AND ITS COACHES ON WINNING THE 1997-98 CLASS A STATE CHAMPIONSHIP.
The Concurrent Resolution was adopted, ordered sent to the House.

S. 1236 -- Senator Washington: A CONCURRENT RESOLUTION TO HONOR DR. LAVERNE LEBBY DAVIS, PRINCIPAL OF ST. HELENA ELEMENTARY SCHOOL IN BEAUFORT COUNTY, FOR HER OUTSTANDING LEADERSHIP IN THE SUCCESS OF HER STUDENTS AS THEIR STANDARDIZED TEST SCORES CLIMBED FROM WORST TO FIRST IN JUST SIX YEARS WITH HER AT THE SCHOOL'S HELM.
The Concurrent Resolution was adopted, ordered sent to the House.

S. 1237 -- Senator Russell: A CONCURRENT RESOLUTION EXPRESSING PROFOUND SORROW AT THE DEATH OF JUDGE ELLEN HINES SMITH OF SPARTANBURG COUNTY, ONE OF THE LEADING CITIZENS OF SOUTH CAROLINA, AND EXTENDING DEEPEST SYMPATHY TO HER FAMILY AND MANY FRIENDS.
The Concurrent Resolution was adopted, ordered sent to the House.

H. 4462 -- Reps. Limehouse, Klauber, Campsen, Vaughn, McMaster, Cromer, Tripp, Whatley, Harrell, Leach, Witherspoon, Altman, Hamilton, Cato, Stoddard and Easterday: A BILL TO AMEND CHAPTER 3, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OFFENSES AGAINST A PERSON, BY ADDING ARTICLE 2 SO AS TO PROVIDE THAT THE USE OF DEADLY FORCE IS JUSTIFIED WHEN A PERSON BELIEVES UNLAWFUL FORCE IS BEING USED AGAINST HIM TO COMMIT OR ATTEMPT TO COMMIT THE BURGLARY OR ROBBERY OF A MOTOR VEHICLE; AND BY ADDING SECTION 16-3-90 SO AS TO PROVIDE THAT WHEN A DEATH RESULTS FROM INJURIES RECEIVED FROM THE DRIVING OF MOTOR VEHICLES STOLEN PURSUANT TO UNLAWFUL FORCE, THEN THE PERSON USING UNLAWFUL FORCE IS GUILTY OF MURDER, AND TO PROVIDE A PENALTY.
Read the first time and referred to the Committee on Judiciary.

H. 5131 -- Rep. Delleney: A CONCURRENT RESOLUTION TO EXPRESS THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO LIEUTENANT MALCOLM CAMERON OF THE CHESTER COUNTY SHERIFF'S DEPARTMENT UPON BEING SELECTED AS THE "LAW ENFORCEMENT OFFICER OF THE YEAR" FOR THE MIDLANDS REGION OF SOUTH CAROLINA.
The Concurrent Resolution was adopted, ordered returned to the House.

H. 5137 -- Reps. Harvin, Kennedy, Young, Woodrum, G. Brown, Neal, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, H. Brown, J. Brown, T. Brown, Byrd, Campsen, Canty, Carnell, Cato, Cave, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, A. Harris, Harrison, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kinon, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Maddox, Martin, Mason, McAbee, McCraw, McGee, McKay, McLeod, McMahand, McMaster, Meacham, Miller, Moody-Lawrence, Mullen, Neilson, 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, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, and Young-Brickell: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY UPON THE DEATH OF BENJAMIN FRANKLIN CANTY, JR., OF SUMTER AND TO EXTEND DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
The Concurrent Resolution was adopted, ordered returned to the House.

H. 5138 -- Rep. Battle: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING ST. PAUL BAPTIST CHURCH OF MULLINS FOR ITS OUTSTANDING FAITH AND EXCELLENT OUTREACH AND SERVICE TO THE COMMUNITY.
The Concurrent Resolution was adopted, ordered returned to the House.

Senator MOORE from the Committee on Judiciary submitted a favorable with amendment report on:
S. 1098 -- Senator Anderson: A BILL TO AMEND SECTION 20-7-2725(A)(4), CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DAY CARE CENTER EMPLOYMENT SO AS TO EXEMPT CERTAIN INDIVIDUALS FROM THE PROHIBITION AGAINST BEING EMPLOYED AS DAY CARE PROVIDERS.
Ordered for consideration tomorrow.

Senator MARTIN from the Committee on Judiciary submitted a favorable with amendment report on:
S. 1214 -- Senator Holland: A BILL TO AMEND ARTICLE 11, CHAPTER 6, TITLE 23, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA PUBLIC SAFETY COORDINATING COUNCIL, SO AS TO CREATE THE SOUTH CAROLINA LAW ENFORCEMENT COORDINATING COUNCIL; BY AMENDING SECTION 23-6-510, SO AS TO ESTABLISH MEMBERSHIP ON THE COUNCIL; BY AMENDING SECTION 23-6-520, SO AS TO PROVIDE FOR THE SELECTION OF OFFICERS FOR THE COUNCIL; BY AMENDING SECTION 23-6-530, SO AS TO PROVIDE FOR MEETING PROCEDURES; AND BY ADDING SECTION 23-6-540, SO AS TO SPECIFY THE POWERS AND DUTIES OF THE COUNCIL.
Ordered for consideration tomorrow.

Senator DRUMMOND from the Committee on Finance submitted a favorable with amendment report on:
H. 3069 -- Reps. Limehouse, Seithel, Bailey and Wilkes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3500 SO AS TO ALLOW A NONREFUNDABLE CREDIT AGAINST A TAXPAYER'S STATE INCOME TAX LIABILITY FOR A PORTION OF THE TAXPAYER'S CASH INVESTMENT IN A QUALIFIED SOUTH CAROLINA FILM ENTERPRISE, TO PROVIDE DEFINITIONS, AND TO PROVIDE AN ADDITIONAL STATE CORPORATE INCOME TAX CREDIT FOR AMOUNTS INVESTED IN THE CONSTRUCTION OF A MOTION PICTURE PRODUCTION FACILITY IN THIS STATE.
Ordered for consideration tomorrow.

Senator HOLLAND from the Committee on Judiciary submitted a favorable with amendment report on:
H. 3291 -- Reps. Kelley, Witherspoon, Simrill, Young-Brickell, Edge, Keegan, Riser, Davenport, Lanford, Knotts, Robinson, Sandifer, McCraw, Law, Askins, Rice, Miller, Wilkins, Limbaugh and Phillips: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-15-386 SO AS TO PROVIDE THAT IT IS UNLAWFUL TO DISSEMINATE OR DISPLAY INDECENT MATERIAL TO MINORS AND TO PROVIDE PENALTIES; TO AMEND SECTIONS 16-15-345 AND 16-15-355, RELATING TO THE ILLEGAL DISTRIBUTION OF OBSCENE MATERIAL TO MINORS, SO AS TO REVISE THE PENALTIES; TO AMEND SECTION 16-15-375, AS AMENDED, RELATING TO DEFINITIONS REGARDING SEXUAL EXPLOITATION OF MINORS, SO AS TO PROVIDE THAT THESE DEFINITIONS APPLY TO THE PROVISIONS CONTAINED IN SECTION 16-15-386 CONCERNING DISPLAYING INDECENT MATERIAL TO MINORS, AND TO PROVIDE A DEFINITION FOR "INDECENT MATERIAL TO MINORS"; TO AMEND SECTION 44-53-391, RELATING TO THE UNLAWFUL ADVERTISEMENT FOR SALE, MANUFACTURE, POSSESSION, SALE OR DELIVERY OF PARAPHERNALIA, SO AS TO REVISE THE PENALTIES; AND TO PROVIDE A SEVERABILITY CLAUSE.
Ordered for consideration tomorrow.

Senator HOLLAND from the Committee on Judiciary submitted a favorable report on:
H. 3830 -- Rep. J. Smith: A BILL TO AMEND SECTION 16-17-445, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF UNSOLICITED CONSUMER TELEPHONE CALLS, SO AS TO ADD THE DEFINITION OF "PRIZE PROMOTION", TO PROVIDE THAT ANY TELEPHONE SOLICITOR WHO MAKES AN UNSOLICITED CONSUMER TELEPHONE CALL MUST DISCLOSE PROMPTLY TO THE PERSON RECEIVING THE CALL THE IDENTITY OF THE SELLER, THAT THE PURPOSE OF THE CALL IS TO SELL GOODS OR SERVICES, THE NATURE OF THE GOODS OR SERVICES, THAT NO PURCHASE OR PAYMENT IS NECESSARY TO WIN OR PARTICIPATE IN A PRIZE PROMOTION IF A PRIZE PROMOTION IS OFFERED, AND THAT, WHEN REQUESTED, THE TELEMARKETER MUST DISCLOSE THE NO PURCHASE/NO PAYMENT ENTRY METHOD FOR THE PRIZE PROMOTION.
Ordered for consideration tomorrow.

Senator MARTIN from the Committee on Judiciary submitted a favorable with amendment report on:
H. 4439 -- Rep. Cooper: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 33-14-410 SO AS TO REGULATE WHEN A CLAIMANT MAY COMMENCE A SUIT OR OTHER PROCEEDING AGAINST A FORMER SHAREHOLDER OF A DISSOLVED CORPORATION FOR CERTAIN CLAIMS AND TO REGULATE WHEN A CLAIMANT MAY SATISFY A JUDGMENT RENDERED AGAINST A DISSOLVED CORPORATION BY PROCEEDING AGAINST OR JOINING AN INDIVIDUAL SHAREHOLDER, AND TO PROVIDE THAT THE ABOVE PROVISIONS SHALL APPLY RETROACTIVELY.
Ordered for consideration tomorrow.

Senator McCONNELL from the Committee on Judiciary submitted a favorable with amendment report on:
H. 4949 -- Judiciary Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-67-270 SO AS TO PROVIDE FOR A COURT-ORDERED LICENSE UNDER CERTAIN CONDITIONS TO ENTER ADJOINING REAL PROPERTY TO EFFECT REPAIRS, MAINTENANCE, OR IMPROVEMENTS ON OTHER PROPERTY UPON A SHOWING OF REASONABLENESS, TO REQUIRE A GOOD FAITH EFFORT TO OBTAIN THE LANDOWNER'S CONSENT BEFORE PETITIONING THE COURT FOR LICENSE TO ENTER, TO DEFINE "GOOD FAITH EFFORT", AND TO SPECIFY LIMITATIONS ON THE SCOPE AND DURATION OF A COURT-ORDERED LICENSE.
Ordered for consideration tomorrow.

Senator HOLLAND from the Committee on Judiciary submitted a favorable with amendment report on:
H. 4975 -- Reps. Young and Askins: A BILL TO AMEND SECTION 4-23-880, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PARKING WITHIN FIVE HUNDRED FEET OF A PLACE WHERE FIRE APPARATUS IS STOPPED AND SECTION 56-5-1960 RELATING TO FOLLOWING A FIRE APPARATUS CLOSER THAN FIVE HUNDRED FEET, SO AS TO PROVIDE THAT THE FIRE APPARATUS MAY BE RESPONDING TO AN EMERGENCY RATHER THAN ONLY TO A FIRE ALARM.
Ordered for consideration tomorrow.

Senator SALEEBY from the Committee on Judiciary submitted a favorable report on:
H. 4991 -- Rep. Baxley: A BILL TO AMEND SECTION 56-5-1290, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT TRAFFIC ACCIDENT REPORTS SHALL NOT BE REFERRED TO IN ANY WAY OR USED AS EVIDENCE OF NEGLIGENCE OR DUE CARE AT TRIALS REGARDING SUCH ACCIDENTS, SO AS TO PROVIDE THAT LAW ENFORCEMENT OFFICERS MAY REFER TO THESE REPORTS WHEN TESTIFYING IN ORDER TO REFRESH THEIR RECOLLECTION OF EVENTS.
Ordered for consideration tomorrow.

H. 4346 -- Reps. Stuart, Stoddard, Leach, Rodgers, Loftis, Martin, Neal, Mason, Stille, Walker and Woodrum: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 78 SO AS TO PROVIDE CERTAIN PRODUCTION AND DISTRIBUTION GUIDELINES FOR SPECIAL LICENSE PLATES; AND TO AMEND SECTION 56-3-3710, AS AMENDED, RELATING TO THE PRODUCTION AND DISTRIBUTION OF SPECIAL COLLEGE AND UNIVERSITY LICENSE PLATES, SO AS TO REVISE THE PROCEDURE TO REQUEST A CHANGE IN A LICENSE PLATE EMBLEM, SEAL, OR SYMBOL.

On motion of Senator HUTTO, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.
Senator HUTTO spoke on the report.

On motion of Senator HUTTO, with unanimous consent, Free Conference Powers were granted.
Whereupon, the PRESIDENT Pro Tempore appointed Senators PATTERSON, HUTTO and RAVENEL 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 HUTTO, the Report of the Committee of Free Conference to H. 4346 was adopted as follows:

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H. 4346 -- Reps. Stuart, Stoddard, Leach, Rodgers, Loftis, Martin, Neal, Mason, Stille, Walker and Woodrum: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 78 SO AS TO PROVIDE CERTAIN PRODUCTION AND DISTRIBUTION GUIDELINES FOR SPECIAL LICENSE PLATES; AND TO AMEND SECTION 56-3-3710, AS AMENDED, RELATING TO THE PRODUCTION AND DISTRIBUTION OF SPECIAL COLLEGE AND UNIVERSITY LICENSE PLATES, SO AS TO REVISE THE PROCEDURE TO REQUEST A CHANGE IN A LICENSE PLATE EMBLEM, SEAL, OR SYMBOL.
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 3, Title 56 of the 1976 Code is amended by adding:

Section 56-3-8000.   (A)   The department may issue special motor vehicle license plates to owners of private passenger-carrying motor vehicles or light pickups having an empty weight of five thousand pounds or less and a gross weight of eight thousand pounds or less registered in their names which may have imprinted on the plate the emblem, a seal, or other symbol the department considers appropriate of an organization which has obtained certification pursuant to Section 501(C)(3) of the federal Internal Revenue Code. The fee for this special license plate is the fee contained in Section 56-3-2020.
The special license plate must be issued or revalidated for a biennial period which expires twenty-four months from the month it is issued.
(B)   Before the department produces and distributes a plate authorized under this section, it must receive:
(1) three hundred or more prepaid applications for the special license plate or a deposit of four thousand dollars from the individual or organization seeking issuance of the license plate;
(2) a plan to market the sale of the special license plate which must be approved by the department.
(C) If the department receives less than three hundred biennial applications and renewals for a particular plate authorized under this section, it shall not produce additional plates in that series. The department shall continue to issue plates of that series until the existing inventory is exhausted.
(D) Only certified members of organizations, as set forth by the organization, may be issued a special license plate pursuant to this section. Each certified member may only apply for one special license plate for each vehicle registered in his name.
(E) License plates issued pursuant to this section shall not contain a reference to a private or public college or university in this State or use symbols, designs, or logos of these institutions without the institution's written authorization."
SECTION   2.   Chapter 3, Title 56 of the 1976 Code is amended by adding:

Section 56-3-7910.   (A)   The department may issue special motor vehicle license plates to owners of private passenger-carrying motor vehicles or light pickups having an empty weight of five thousand pounds or less and a gross weight of eight thousand pounds or less registered in their names which may have imprinted on the plate an emblem, a seal, logo, or other symbol of the H.L. Hunley submarine. The Hunley Commission shall submit to the department for its approval the emblem, seal, logo, or other symbol it desires to be used for this special license plate. The Hunley Commission may request a change in the emblem, seal, logo, or other symbol not more than once every five years. The fee for this special license plate is one hundred dollars every two years in addition to the regular motor vehicle registration fee set forth in Article 5, Chapter 3 of this title. This special license plate must be of the same size and general design of regular motor vehicle license plates. The special license plates must be issued or revalidated for a biennial period which expires twenty-four months from the month they are issued.
(B)   The fees collected pursuant to this section must be distributed to the Fund to Save the Hunley created by the Hunley Commission or another nonprofit fund designated by the commission for the continued curation of the Hunley submarine. Any such fund must be administered by the Hunley Commission and may be used only for efforts to raise, restore, and preserve the Hunley submarine. Any funds collected must be deposited in an appropriate nonprofit account designated by the Hunley Commission. The distribution shall be thirty dollars to the department and seventy dollars to the Hunley Commission for each special license plate sold.
(C)   The department shall reserve the first twelve license plates for use by the Hunley Commission.
(D)   The provisions of items (B) and (C) of Section 56-3-8000 shall apply to special plates issued pursuant to this section."
SECTION   3.   Section 56-3-3710(A) of the 1976 Code, is amended to read:
"(A)   The department may issue to owners of private passenger motor vehicles special motor vehicle license plates which may have imprinted on them an emblem, a seal, or other symbol the department considers appropriate of a public college or university or independent institution of higher learning, defined in Section 59-113-50, located in this State. A school may submit to the department for its approval the emblem, seal, or other symbol it desires to be used for its respective special license plate. A school also may request a change in the emblem, seal, or other symbol not more than once every five years once the existing inventory of the license plate has been exhausted. The fee for this special license plate is seventy dollars every two years in addition to the regular motor vehicle registration fee set forth in Article 5, Chapter 3 of this title. This special license plate must be of the same size and general design of regular motor vehicle license plates. The special license plates must be issued or revalidated for a biennial period which expires twenty-four months from the month they are issued. "
SECTION   4.   This act takes effect upon approval by the Governor.
Amend title to conform.

/s/Kay Patterson                  /s/Elsie Rast Stuart
/s/C. Bradley Hutto               /s/Joseph Neal
/s/Arthur Ravenel, Jr.            /s/Laney Franklin Littlejohn
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

H. 4799 -- Reps. Altman, Kelley, Keegan, Lanford, Rhoad, Witherspoon and Meacham: A BILL TO AMEND SECTION 50-17-1010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COASTAL FISHERIES LAWS, SO AS TO ALLOW SHRIMP BOATS TO DRAG NETS NO CLOSER THAN ONE-FOURTH MILE OF KIAWAH AND SEABROOK ISLAND BEACHES.

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, the Report of the Committee of Conference to H. 4799 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 4799 -- Reps. Altman, Kelley, Keegan, Lanford, Rhoad, Witherspoon and Meacham: A BILL TO AMEND SECTION 50-17-1010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COASTAL FISHERIES LAWS, SO AS TO ALLOW SHRIMP BOATS TO DRAG NETS NO CLOSER THAN ONE-FOURTH MILE OF KIAWAH AND SEABROOK ISLAND BEACHES.
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 deleting subsection (B) on page 4799-3, so when amended Section 90-21-136 reads:
/ "Section 50-21-136.   (A)   There are established no wake zones on the following creeks and coves on Hilton Head Island in Beaufort County:
Broad Creek;
Old House Creek;
Bear Creek (also known as Park Creek);
Lawton Creek;
Jarvis Creek;
Braddock Cove;
Calibogue Creek (also known as Baynard Creek);
Folly Creek;
Skull Creek between Day Marker '13' and Day Marker '14';
Fish Haul Creek (also known as Coggin Creek);
Point Comfort Creek.
There is also established a no-wake zone between one hundred yards north of Marker 40 and Marker 41 on the New River in Beaufort County.
The no wake zone boundaries must be marked clearly with signs. The signs must be designed and installed as specified by the department.
(B)   Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, must be punished by a fine of two hundred fifty dollars or imprisonment for a period not exceeding ten days, or both, for a first offense or a fine of five hundred dollars or imprisonment for a period not exceeding thirty days, or both, for a second or subsequent offense." /
Amend title to conform.

/s/Holly A. Cork                  /s/Charles R. Sharpe
/s/John C. Land, III              /s/Thomas N. Rhoad
/s/McKinley Washington, Jr.       /s/William D. Witherspoon
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

S. 1230 -- Senator Washington: A CONCURRENT RESOLUTION TO COMMEND AND CONGRATULATE DR. FRANKLIN H. JOHNSON, PASTOR OF WESLEY UNITED METHODIST CHURCH ON JOHNS ISLAND, FOR HIS THIRTY-FIVE YEARS OF SERVICE AS A UNITED METHODIST PASTOR THROUGHOUT THE STATE OF SOUTH CAROLINA, AND TO WISH HIM AND HIS FAMILY THE VERY BEST UPON HIS RETIREMENT.
Returned with concurrence.
Received as information.

Columbia, S.C., May 12, 1998

Mr. President and Senators:
The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
S. 284 -- Senators Leventis, Courson, Waldrep, Wilson, Giese, Anderson, Elliott, Land, Short, Reese, Cork, Rose, Holland, Moore and Washington: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-5-40 SO AS TO DESIGNATE THE SECRETARY OF STATE TO MONITOR ALL ELECTED OR APPOINTED STATE BOARDS AND COMMISSIONS IN ORDER TO ASCERTAIN WHEN VACANCIES OCCUR AND PUBLICIZE THESE VACANCIES AND POSITIONS ON THESE BODIES WHOSE TERMS EXPIRE; PROVIDE THAT THE DUTIES, FUNCTIONS, AND RESPONSIBILITIES OF THE PUBLIC CHARITIES SECTION OF THE OFFICE OF THE ATTORNEY GENERAL'S OFFICE ARE DEVOLVED UPON THE SECRETARY OF STATE'S OFFICE ON JULY 1, 1998; TO TRANSFER ALL PERSONNEL ORIGINALLY TRANSFERRED FROM THE SECRETARY OF STATE'S OFFICE AND STILL EMPLOYED BY THE ATTORNEY GENERAL IN THE PUBLIC CHARITIES SECTION, APPROPRIATIONS, AND FULL-TIME EQUIVALENT POSITIONS OF THE PUBLIC CHARITIES SECTION TO THE SECRETARY OF STATE'S OFFICE ON JULY 1, 1998; TO PROVIDE THAT THE SECRETARY OF STATE SHALL ADMINISTER THE "SOUTH CAROLINA SOLICITATION OF CHARITABLE FUNDS ACT"; TO AMEND SECTIONS 33-56-20, 33-56-30, 33-56-40, 33-56-50, 33-56-60, 33-56-70, 33-56-80, 33-56-90, 33-56-100, 33-56-110, 33-56-120, 33-56-130, 33-56-140, 33-56-150, 33-56-160, AND 33-56-190, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE SOLICITATION OF CHARITABLE FUNDS, SO AS TO DELETE REFERENCES TO THE ATTORNEY GENERAL AND REFLECT THE SECRETARY OF STATE AND HIS OFFICE AS THE OFFICIAL AGENCY TO ADMINISTER THE PROVISIONS OF THE "SOUTH CAROLINA SOLICITATION OF CHARITABLE FUNDS ACT", AND TO ALLOW THE SECRETARY OF STATE TO RETAIN A PORTION OF ADMINISTRATIVE FINES TO OFFSET THE EXPENSES OF ENFORCEMENT.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House
Received as information.

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

The following Bill was read the third time and having received three readings in both Houses, it was ordered that the title be changed to that of an Act and enrolled for Ratification:

H. 4467 -- Rep. Klauber: A BILL TO AMEND SECTION 35-1-1590, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PENALTIES FOR VIOLATING THE UNIFORM SECURITIES ACT, SO AS TO CREATE CERTAIN FELONY OFFENSES AND PENALTIES AND REVISE THE PENALTY FOR THE EXISTING MISDEMEANOR OFFENSE.

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 1106 -- Senators Rankin and Elliott: A BILL TO AMEND SECTION 12-21-2420, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE IMPOSITION OF AND EXEMPTIONS FROM THE ADMISSIONS LICENSE TAX, SO AS TO PROVIDE THAT THE MEASURE OF THIS TAX DOES NOT INCLUDE ANY TAX OR FEE IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE THAT CONSTITUTES A PART OF THE CHARGE FOR ADMISSION.

Senator RANKIN asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.

H. 4569 -- Reps. Cato and Gamble: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-58-67 SO AS TO REQUIRE ANNUAL CONTINUING PROFESSIONAL EDUCATION FOR LICENSED MORTGAGE LOAN BROKERS AND ORIGINATORS; TO AMEND SECTIONS 40-58-10, 40-58-20, 40-58-30, 40-58-50, 40-58-55, 40-58-60, 40-58-65, 40-58-80, AND 40-58-110, ALL AS AMENDED, RELATING TO REGULATION OF MORTGAGE LOAN BROKERS, SO AS TO REQUIRE LICENSING RATHER THAN REGISTRATION OF MORTGAGE LOAN BROKERS, TO REQUIRE TWO YEARS' EXPERIENCE WORKING AS AN ORIGINATOR BEFORE INITIAL LICENSING AND TO PROVIDE EXCEPTIONS, TO DEFINE "ORIGINATOR"; TO ALLOW BROKERS PROPERLY REGISTERED BEFORE OCTOBER 1, 1998, TO CONTINUE TO ACT AS MORTGAGE LOAN BROKERS WITHOUT REGARD TO EXPERIENCE OR EDUCATION REQUIREMENTS ADDED BY THIS ACT, TO AUTHORIZE THE SUSPENSION OF A LICENSE FOR VIOLATIONS, AND TO INCREASE THE INITIAL APPLICATION FEE AND ANNUAL RENEWAL FEE FROM FIVE TO SIX HUNDRED DOLLARS AND IMPOSE A TWENTY-FIVE DOLLAR ADDITIONAL ANNUAL RENEWAL FEE FOR EACH ORIGINATOR.

Senator LEVENTIS asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.

The Committee on Labor, Commerce and Industry proposed the following amendment (\KGH\15593MM.98), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION   1.   Chapter 58, Title 40 of the 1976 Code is amended by adding:
"Section 40-58-67.   Effective for license years beginning after September 30, 1998, all licensed mortgage loan brokers must complete at least eight hours of continuing professional education annually. If the licensed mortgage loan broker is a sole proprietorship or partnership, any owners and partners must complete the required eight hours of continuing professional education annually. If the licensed mortgage loan broker is a limited liability company or corporation, any member or president, chief executive officer, or other officer who has ownership interest of twenty-five percent or greater and who actively participates in the broker entity must complete the required eight hours of continuing professional education annually. Up to eight hours of continuing professional education may be carried forward from one year to the next year; for the license year beginning October 1, 1998, up to eight hours of continuing professional education taken in the preceding twelve months may be carried forward. The continuing professional education completed must be reported to the department annually on a form approved by it showing the date and title of the courses taken, the teacher or sponsor of the course taken, and the hours of continuing professional education claimed for the course. If the course is taught in a classroom setting, fifty minutes of classroom contact shall equal one hour of continuing professional education. Course sponsors must maintain records of attendees for two years after the course. As used in this chapter, 'actively participates' means engaging in direct loan brokering activity as defined in Section 40-58-20(3) and (4).
Documentation of attendance at the courses or correspondence courses completed must be maintained by the mortgage loan broker and shall consist of a certificate of completion issued by the teacher or sponsor of the course showing the recommended number of hours of continuing professional education. This documentation is subject to inspection by the department for up to two years after the date of the course. Courses offered by the National Association of Mortgage Brokers, the South Carolina Mortgage Brokers Association, the department or courses related to real estate law or related law topics, appraisals, mortgage lending, financial management, financial planning, or mortgage processing are considered to qualify for continuing professional education. The department shall offer continuing professional education courses to assist mortgage loan brokers in obtaining the continuing professional education required by this chapter.
The department shall appoint two mortgage loan brokers and one representative of the department to a panel for two-year terms to approve any courses questioned as to their qualifications as continuing professional education. The panel may conduct its meetings via conference call. The department shall develop a questionnaire to ascertain the interest and background of potential members of this panel.
If a mortgage loan broker fails to complete his continuing professional education in a timely manner, his license shall expire and the licensee shall pay a penalty not in excess of one hundred dollars in order to renew the license.
However, the mortgage loan broker may request an administrative hearing to appeal the expiration of his license for failure to complete continuing professional education requirements. A license may be renewed without penalty within thirty days after the expiration if the broker completes his professional education requirements."
SECTION   2.   Section 40-58-10(A) of the 1976 Code, as last amended by Act 172 of 1993, is further amended to read:
"(A)   This chapter may be cited as the Registration Licensing Requirements Act of Certain Loan Brokers of Mortgages on Residential Real Property."
SECTION   3.   A.   Section 40-58-20(6) of the 1976 Code, as added by Act 544 of 1988, is amended to read:
"(6)   'Registrant Licensee' means a person or organization who is registered licensed pursuant to Section 40-58-50 which engages in the business of soliciting, processing, placing, or negotiating mortgage loans for others or offering to process, place, or negotiate mortgage loans for others."
B.   Section 40-58-20 of the 1976 Code, as last amended by Act 429 of 1996, is further amended by adding an appropriately numbered item at the end to read:
"( )   'Originator' means an employee of a mortgage loan broker whose primary job responsibilities include direct contact with and informing loan applicants of the rates, terms, disclosure, and other aspects of the mortgage. It does not mean an employee whose primary job responsibilities are clerical in nature, such as processing the loan."
SECTION   4.   Section 40-58-30 of the 1976 Code, as last amended by Act 172 of 1993, is further amended to read:
"Section 40-58-30.   (A)   No mortgage loan broker, as defined in Section 40-58-20(3), may engage in the business of processing, placing, or negotiating a mortgage loan or offering to process, place, or negotiate a mortgage loan in this State without first being registered licensed with the administrator.
(B) Notwithstanding subsection (A) of this section, the provisions of this chapter do not apply to an exempt person or organization as defined in Section 40-58-20(5)."
SECTION   5.   Section 40-58-50 of the 1976 Code, as last amended by Act 172 of 1993, is further amended to read:
"Section 40-58-50.   (A)   An application to become registered licensed as a mortgage loan broker must be in writing, under oath, and in a form prescribed by the department. The application must contain the name and complete business and residential address or addresses of the applicant or, if the applicant is a partnership, association, limited liability company, corporation, or other form of business organization, the names and complete business and residential addresses of each member, director, and principal officer and a list of all employees who shall engage in direct loan brokerage activity employees who engage in direct loan brokerage activity.
(B)   The application must include an affirmation of financial solvency noting bonding requirements required by the department and the descriptions of the business activities, financial responsibility, educational background, and general character and fitness of the applicant as required by this chapter. The application must be accompanied by a fee, payable to the department, of five hundred fifty dollars.
(C)   An applicant must have at least two years' experience working as an originator under the supervision of a mortgage loan broker before his initial license is issued.
(1)   In lieu of a showing of two years' experience, an applicant may show proof of two years' employment with a federally insured depository institution, or a VA, FHA, or HUD approved mortgagee during which the applicant was actively engaged in originating residential mortgage loans.
(2)   In lieu of one of the required years' experience, an applicant may show proof of the equivalent of six or more semester hours of satisfactorily completed course work in real estate finance, real estate law, or the like counting toward the successful completion of a degree that is baccalaureate level or more advanced with a major or minor in finance, accounting, business administration, real estate finance economics, or similar baccalaureate or more advanced degree approved by the administrator or the administrator's designee from an accredited college or university.
(3)   However, all mortgage loan brokers properly licensed as a mortgage loan broker before October 1, 1998, may act as mortgage loan brokers after that date without regard to the experience or education requirement of this subsection if they maintain compliance with the continuing professional education requirements of Section 40-58-67 and otherwise comply with this chapter."
SECTION   6.   Section 40-58-55 of the 1976 Code, as added by Act 172 of 1993, is amended to read:
"Section 40-58-55.   The department may refuse to register license an applicant or refuse to renew a registration license if it finds, after notice and a hearing pursuant to the Administrative Procedures Act, that the applicant or his agent has:
(1)   violated a provision of this chapter or an order of the department;
(2)   withheld material information in connection with an application for a license registration or its renewal, or made a material misstatement in connection with the application;
(3)   been convicted of a felony or of an offense involving breach of trust, moral turpitude, fraud, or dishonest dealing within the past five ten years. Any person who is in business as a mortgage loan broker or is an agent of a broker before October 1, 1998, and who has been convicted of a felony or an offense involving breach of trust, moral turpitude, fraud, or dishonest dealing within the past ten years may continue in business as a mortgage loan broker or agent, but if a mortgage loan broker or an agent of a broker is convicted of the above-referenced offenses on or after October 1, 1998, that person shall be subject to the provisions of this chapter."
SECTION     7.   Section 40-58-60 of the 1976 Code, as amended by Act 172 of 1993, is further amended to read:
"Section 40-58-60.   (A)   Upon the filing of an application for registration a license, if the department finds that the financial responsibility, experience, character, and general fitness of the applicant, and of the members if the applicant is a copartnership, or association, or limited liability company, and of the officers and directors if the applicant is a corporation, are such as to command the confidence of the community and to warrant belief that the business may be operated honestly, fairly, and efficiently according to the purposes of this chapter, it shall register license the applicant as a mortgage loan broker and issue a certificate of registration license. If the department does not so find, it shall refuse to register license the applicant and shall notify him of the denial.
(B)   Upon the receipt of the certificate license, a mortgage loan broker is authorized to engage in the business for which the registration certificate license was issued.
(C)   Each certificate license issued to a registrant licensee must state the address or addresses at which the business is to be conducted and must state fully the name of the registrant licensee and the date of the registration license. A copy of the certificate license must be posted prominently in each place of business of the registrant licensee. The certificate license is not transferable or assignable."
SECTION   8.   Section 40-58-65 of the 1976 Code, as last amended by Act 429 of 1996, is further amended to read:
"Section 40-58-65.   (A)   A person registered licensed pursuant to this chapter must maintain at his usual place of business books, records, and documents pertaining to the business conducted, to enable the department to determine compliance with this chapter. A registrant licensee with two or more registered licensed offices may consolidate the records at any one of the registered licensed offices. The records must be available for examination to the administrator or his designee upon request. Books and records must be maintained for at least three years.
(B)   A mortgage broker doing business in this State shall maintain a sufficient physical presence in this State and his records must be maintained at the registered licensed location in this State. At a minimum, the broker shall maintain an official place of business open during regular business hours, staffed by one or more employees who have the authority to contract on behalf of the broker and to accept service on behalf of the broker. If the official place of business is not open for business within the hours of 8:30 A.M. until 5:00 P.M., Monday through Friday, the broker shall notify the department in writing of the business hours maintained by the broker's official place of business.
(C)   A registered licensed mortgage loan broker with an official place of business within South Carolina also may maintain one or more satellite offices, provided that the:
(1)   mortgage loan broker notifies the department in writing ten days before the opening of a satellite office of the location of the satellite office and notifies the department that all records from the satellite office are stored in a main or branch location in this State which is staffed by one or more employees during regular business hours;
(2)   records of any pending mortgage loan application or records in which a loan closing is still in process are made available at the mortgage loan broker's main or branch location as provided in item (1) to the administrator or his designee within two business days of a written request delivered by facsimile transmission, mail, or hand-delivery by the administrator or his designee;
(3)   broker notifies the department in writing within two business days of closing a satellite office.
(D)   The department, at its discretion, may examine the books and records of a registrant licensee and other specified documents to determine whether there has been substantial compliance with this chapter. Unless there is reason to believe a violation of this chapter has occurred, examinations must be limited to one each year. Records and information obtained by the department during an examination are confidential and the department must certify that it is in compliance with the Right to Financial Privacy Act (RFPA).
(E)   If the mortgage loan broker fails to notify the department of the existence or closing of a satellite office, the actual operating hours of the main or branch offices where records are kept, or the whereabouts of its records, the broker is subject to a penalty of not less than fifty dollars and not more than two hundred fifty dollars. If after the assessment of such a fine within a one-year period, the administrator finds that additional violations of this section are both intentional and repeated, the mortgage loan broker is subject to all of the remedies for violations of this chapter set forth in Section 40-58-80."
SECTION   9.   A.   Section 40-58-80(C) of the 1976 Code, as last amended by Act 172 of 1993, is further amended to read:
"(C)   The department, upon the finding that a mortgage loan broker has engaged intentionally or repeatedly in a course of conduct in violation of this chapter, may revoke the registration license of the mortgage loan broker temporarily or permanently in its discretion after reasonable notice to the broker and an opportunity for the broker to be heard, and may increase the required bond up to a maximum of twenty-five thousand dollars to ensure that the public is protected adequately. The department also may impose upon persons violating the provisions of this chapter administrative fines of not more than five hundred dollars for each offense or not more than five thousand dollars for the same set of transactions or occurrences. Each violation constitutes a separate offense. The department, if it determines that the required bond must be increased, shall state in writing the reasons for the increase and immediately serve it upon the mortgage loan broker. The mortgage loan broker shall provide the new bond within thirty days or the department shall revoke the registration license of the mortgage loan broker."
B.   Section 40-58-80 of the 1976 Code, as last amended by Act 172 of 1993, is further amended by adding an appropriately lettered subsection at the end to read:
"( )   The administrator of the department may suspend the right of an individual to engage in mortgage loan broker activity after finding that an employee of a licensed mortgage loan broker has failed to comply with a provision of this chapter."
SECTION   10.   Section 40-58-110 of the 1976 Code, as last amended by Act 430 of 1996, is further amended to read:
"Section 40-58-110.   (A)   In addition to the initial license application for registration fee of five hundred fifty dollars required by Section 40-58-50, first time registrants licensees also shall pay a one-time, nonrefundable processing fee of two hundred dollars. Thereafter, a registrant licensee shall pay an annual renewal fee of five hundred fifty dollars. A registrant licensee shall pay an initial fee of one hundred fifty dollars and, thereafter, a renewal fee of one hundred fifty dollars for each satellite location. The broker shall notify the department in writing ten days before opening a new, official branch or satellite location. No initial fee is required when the registrant licensee notifies the department of a change in address for an official branch or satellite location.
(B)   The term of each registration license is one year. Registrations Licenses issued under this chapter expire on September thirtieth each year, and must be renewed in accordance with the provisions of this section.
(C)   Failure to renew a registration license within thirty days of its expiration results in the registration license being canceled by the department. A registration license may be renewed after the thirty-day grace period provided the renewal is accompanied by a late penalty of two hundred fifty dollars in addition to the five hundred fifty dollars dollar registration license renewal fee. All renewable applications must contain information required by the department. All fees collected by the department pursuant to this chapter must be used to implement the provisions of this chapter."
SECTION   11.   There is established a committee to study whether or not a licensing examination should be required for mortgage loan brokers. The committee consists of the administrator of the Department of Consumer Affairs, or his designee; the chairmen of the respective Senate and House Labor, Commerce and Industry committees, or their designees; and two licensed mortgage brokers appointed by the administrator of the Department of Consumer Affairs. The administrator of the Department of Consumer Affairs, or his designee, shall serve as chairman of the committee, and all members of the committee shall serve without compensation or reimbursement. The committee shall make its report and recommendations to the General Assembly no later than January 31, 1999. The committee is dissolved upon making its report and recommendations.
SECTION   12.   Section 11 of this act takes effect upon approval by the Governor. The remaining provisions take effect October 1, 1998./
Renumber sections to conform.
Amend title to conform.

Senator LEVENTIS explained the committee amendment.

The amendment was adopted.

Senator LEVENTIS proposed the following amendment (4569005.PPL), which was adopted:
Amend the Committee Report, as and if amended, by adding an appropriately numbered new section to read:
/SECTION __.   Section 40-58-20(5) of the 1976 Code, as last amended by Act 172 of 1993 is further amended to read:
"(5)   'Exempt person or organization' means:
(a) a bank, bank holding company, credit union, savings and loan association, savings and loan association holding company, their affiliates and subsidiaries, a supervised licensed lender under Title 37 and a restricted lender under Title 34 and their affiliates and subsidiaries, a Department of Housing and Urban Development or Federal Housing Administration approved mortgagee authorized, chartered, licensed, or approved under the laws of this State or of the United States or an instrumentality of them; or persons or organizations which sell or place all of their conventional mortgage loans on real property with federally insured and/or regulated financial institutions including, but not limited to, banks, savings and loan associations, and credit unions."/

Amend title to conform.

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

H. 4735 -- Reps. Boan and Walker: A BILL TO AMEND SECTION 1-1-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE JURISDICTION AND BOUNDARIES OF THE STATE, SO AS TO REVISE A PORTION OF THE BOUNDARIES BETWEEN NORTH CAROLINA AND SOUTH CAROLINA.
Senator COURTNEY explained the Bill.

H. 4694 -- Reps. Neilson, Bailey, Barfield, Baxley, Bowers, Byrd, Cave, Clyburn, Cobb-Hunter, J. Hines, M. Hines, Howard, Inabinett, Jennings, Martin, McCraw, McLeod, Moody-Lawrence, Neal, Phillips, Scott, J. Smith, R. Smith and Stoddard: A BILL TO AMEND SECTION 1-11-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENTITIES WHOSE EMPLOYEES AND RETIREES ARE ELIGIBLE FOR STATE HEALTH AND DENTAL INSURANCE PLANS, SO AS TO CLARIFY THAT THE DIVISION ON AGING IS UNDER THE DEPARTMENT OF HEALTH AND HUMAN SERVICES RATHER THAN UNDER THE OFFICE OF THE GOVERNOR; AND TO AMEND SECTION 9-1-10, AS AMENDED, RELATING TO DEFINITIONS USED IN THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO AMEND THE DEFINITION OF "EMPLOYEE" AND "EMPLOYER" SO AS TO INCLUDE EMPLOYEES OF LOCAL COUNCILS ON AGING IN THE STATE RETIREMENT SYSTEM.
Senator SALEEBY explained the Bill.

H. 4787 -- Reps. Klauber, McLeod, J. Smith, McAbee, Harrison, Hawkins and Kinon: A BILL TO AMEND CHAPTER 17, TITLE 25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE NATIONAL GUARD MUSEUM AND STATE WEAPONS COLLECTION SO AS TO CHANGE ITS NAME TO THE SOUTH CAROLINA MILITARY MUSEUM, RENAME AND REVISE ITS GOVERNING BOARD, AND MAKE OTHER REQUIRED CONFORMING AMENDMENTS.

H. 4757 -- Reps. Barfield, Battle, T. Brown, Davenport, Edge, Miller, Sharpe, Witherspoon, Mullen, Rhoad, Hamilton and J. Smith: A BILL TO AMEND SECTION 50-21-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LAWS OR ORDINANCES GOVERNING THE OPERATION AND EQUIPPING OF VESSELS OPERATED ON THE WATERS OF THIS STATE, SO AS TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES MAY ESTABLISH TEMPORARY OR PERMANENT SLOW SPEED ZONES BY DESIGNATING THE AREAS WITH REGULATORY MARKERS, AND TO PROVIDE THAT WHENEVER FLOOD CONDITIONS MAKE OPERATION OF WATERCRAFT HAZARDOUS OR DANGEROUS TO PERSONS OR PROPERTY, THE DEPARTMENT HAS THE AUTHORITY TO TEMPORARILY CLOSE AREAS OF THE WATERS OF THIS STATE TO ALL RECREATIONAL VESSELS AND COMMERCIAL FISHING VESSELS FOR A PERIOD NOT TO EXCEED TEN DAYS, AND TO PROVIDE FOR CERTAIN EXTENSIONS OF AND EXCEPTIONS TO THIS CLOSURE.
Senator PEELER explained the Bill.

H. 4486 -- Reps. Jennings, Inabinett, Kirsh, Meacham, H. Brown, Spearman, Moody-Lawrence, Neilson, J. Hines, Cobb-Hunter, Seithel, Bailey, Battle, D. Smith, Tripp, Harrison, Rodgers, Leach, Scott, Gamble, Govan, McCraw, Riser, Stille, Stuart, Young-Brickell, Vaughn, Keegan, Neal, Kelley, Loftis, Witherspoon, Cato, A. Harris, Wilder, Stoddard, McMaster, Jordan, Martin and Cromer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-4-140 SO AS TO PROVIDE THAT A VALID PROTECTION ORDER RELATED TO DOMESTIC OR FAMILY VIOLENCE ISSUED IN ANOTHER STATE IS VALID IN THIS STATE AND MUST BE ENFORCED AS IF IT WERE ISSUED IN THIS STATE; TO PROVIDE THE PREREQUISITES TO AND PROCEDURES FOR ENFORCING SUCH ORDER; TO PROVIDE CIVIL AND CRIMINAL IMMUNITY; AND TO AMEND SECTION 16-25-50 RELATING TO PENALTIES FOR VIOLATION OF AN ORDER OF PROTECTION FROM DOMESTIC VIOLENCE, SO AS TO ALSO APPLY THE PENALTIES TO VIOLATIONS OF ORDERS ISSUED IN ANOTHER STATE.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the committee amendment.

The Committee on Judiciary proposed the following amendment (JUD4486.001), which was adopted:
Amend the bill, as and if amended, page 3, line 2, in Section 20-4-140(E), as contained in SECTION 1, by striking the word /shall / and inserting: /must/
Amend the bill further, as and if amended, page 3, beginning on line 11, in Section 16-25-50, as contained in SECTION 2, by striking lines 11 and 12 and inserting therein the following:
/of an order of protection issued in this State under Chapter 4, Title 20, the 'Protection from Domestic Abuse Act', or a valid/
Amend title to conform.

Senator COURTNEY explained the committee amendment.

The amendment was adopted.

Senator HUTTO proposed the following amendment (4486R001.CBH), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered new SECTION at the end to read:
/SECTION ___.   Section 20-7-420 of the 1976 Code, as last amended by Act No. 71, Section 39 of 1997, is further amended by adding a new subitem at the end to read:
"( )   to order sibling visitation where the court finds it is in the best interest of the children." /
Renumber sections to conform.
Amend title to conform.

The amendment was adopted.

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

The following Bills and Joint Resolutions, having been read the second time, were ordered placed on the third reading Calendar:

H. 4912 -- Reps. Baxley, Neilson and J. Hines: A BILL TO AMEND ACT 1797 OF 1972, RELATING TO THE HARTSVILLE PARKING, BEAUTIFICATION AND BUSINESS IMPROVEMENT DISTRICT IN DARLINGTON COUNTY, SO AS TO EXPAND THE AREA OF THE DISTRICT.

On motion of Senator SALEEBY, H. 4912 was ordered to receive a third reading on Thursday, May 14, 1998.

H. 5103 -- Reps. Miller and T. Brown: A BILL TO AMEND ACT 515 OF 1996, RELATING TO THE DEVOLUTION OF THE AUTHORITY FOR APPOINTMENTS AND BUDGETARY APPROVALS FOR CERTAIN OFFICES, BOARDS, AND COMMISSIONS FROM THE JOINT LEGISLATIVE DELEGATION REPRESENTING GEORGETOWN COUNTY TO THE GOVERNING BODY OF THAT COUNTY, SO AS TO RESTORE THOSE DEVOLVED POWERS TO THE DELEGATION FOR CERTAIN OFFICES, BOARDS, AND COMMISSIONS.
(By prior motion of Senator McGILL)

H. 3121 -- Reps. Kelley and Bauer: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 51 SO AS TO PROVIDE FOR THE ISSUANCE OF "SOUTH CAROLINA: FIRST IN GOLF" LICENSE PLATES, AND TO PROVIDE FOR THE DISBURSEMENT OF THE FEES COLLECTED.

Senator RAVENEL asked unanimous consent to give the Bill a third reading tomorrow.
Senator PATTERSON objected.

H. 4649 -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BUDGET AND CONTROL BOARD, OFFICE OF RESEARCH AND STATISTICS, RELATING TO DATA REPORTING REQUIREMENTS PERTAINING TO SUBMISSION OF AMBULATORY ENCOUNTER DATA, DESIGNATED AS REGULATION DOCUMENT NUMBER 2237, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4841 -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, BOARD OF DENTISTRY, RELATING TO CONTINUING
EDUCATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2203, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4507 -- Rep. Davenport: A BILL TO AMEND CHAPTER 11, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REGULATION OF CONTRACTORS AS A PROFESSION, BY ADDING SECTION 40-11-165 SO AS TO REQUIRE A PERSON WHO IS OR HAS BEEN LICENSED UNDER CHAPTER 40 WHO LEAVES SOUTH CAROLINA WITH UNPAID DEBTS AND SUBSEQUENTLY RETURNS TO THE STATE SEEKING TO BECOME LICENSED IN THIS STATE AGAIN OR TO DO BUSINESS AGAIN IN SOUTH CAROLINA UNDER THE AUTHORITY OF A STILL-VALID LICENSE TO FILE A STATEMENT LISTING CERTAIN OUTSTANDING DEBTS AND BANKRUPTCIES.

Senator LEATHERMAN asked unanimous consent to give the Bill a third reading tomorrow.
Senator PATTERSON objected.

H. 3916 -- Reps. Seithel, Knotts, Whatley, Sharpe, Fleming, Riser and Simrill: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-17-185 SO AS TO PROHIBIT THE PURCHASE, BARTER, OR TRADE OF MARINE PRODUCTS HANDLED OR TAKEN UNLAWFULLY AND PROVIDE PENALTIES.

Senator PEELER asked unanimous consent to give the Bill a third reading tomorrow.
Senator PATTERSON objected.

H. 4898 -- Rep. Robinson: A BILL TO AMEND SECTIONS 9-1-1140, AS AMENDED, 9-9-50, AS AMENDED, AND 9-11-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDITED SERVICE FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO ALLOW MILITARY SERVICE TO BE ESTABLISHED AS CREDITABLE SERVICE ON THE BASIS OF ONE YEAR OF MILITARY SERVICE RATHER THAN TWO YEARS OF MILITARY SERVICE FOR EACH YEAR OF SERVICE ESTABLISHED, TO ALLOW NATIONAL GUARD SERVICE TO BE ESTABLISHED AND TO PROVIDE THE REQUIREMENTS FOR ESTABLISHING SUCH SERVICE AND TO CLARIFY PROVISIONS PROHIBITING THE DUPLICATION OF BENEFITS.

Senator LAND asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.

Senator BRYAN desired to be recorded as voting against the second reading of the Bill.

H. 4683 -- Rep. Harrison: A BILL TO AMEND SECTION 38-43-106, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE AGENTS, SO AS TO ADD PROVISIONS AUTHORIZING A PROCEDURE FOR AN ASSOCIATION WHICH ISSUES PROFESSIONAL INSURANCE DESIGNATIONS, OR OTHER INSURANCE RELATED DESIGNATIONS, WHICH REQUIRE CONTINUING EDUCATION TO REQUEST AN EXEMPTION ON BEHALF OF ITS DESIGNEES FROM COMPLYING WITH THE CONTINUING EDUCATION REQUIREMENTS OF THIS SECTION DURING EACH BIENNIAL REPORTING PERIOD FOR THE LINES OF AUTHORITY COVERED BY THE DESIGNATION.

H. 4755 -- Rep. Cobb-Hunter: A BILL TO AMEND SECTION 27-40-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LIST OF ARRANGEMENTS NOT GOVERNED BY THE SOUTH CAROLINA RESIDENTIAL LANDLORD AND TENANT ACT, SO AS TO INCLUDE IN THAT LIST RESIDENCE AT A CHARITABLE OR EMERGENCY PROTECTIVE SHELTER.

H. 4883 -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, STATE ATHLETIC COMMISSION, RELATING TO BOXING, DESIGNATED AS REGULATION DOCUMENT NUMBER 2273, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 5048 -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF SOCIAL SERVICES, RELATING TO FOOD STAMP PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2195, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

H. 4802 -- Reps. McKay, Boan, Quinn, Koon, McGee and H. Brown: A BILL TO AMEND TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISH, GAME, AND WATERCRAFT BY ADDING SECTION 50-21-425 AND SECTION 50-23-295, SO AS TO PREVENT RENEWAL OF REGISTRATION OR TRANSFER OF REGISTRATION OR TRANSFER OF CERTIFICATE OF TITLE OF WATERCRAFT WITH DELINQUENT PROPERTY TAXES.

H. 4549 -- Reps. Allison, Hamilton, Altman, G. Brown, Inabinett, Rice, Mason, Stoddard, Beck, Sandifer, McKay, Battle, R. Smith, Walker, Canty, Keegan, Lloyd, Phillips, Rhoad, Riser, Breeland, McCraw, M. Hines, Neal, F. Smith, Mack, Wilkes, Byrd, Moody-Lawrence, Bauer, Barrett, Carnell, Jennings, D. Smith, Simrill, Vaughn, Young, Robinson, McGee, Rodgers, Littlejohn, Bowers, Jordan, Cave, Stille, Baxley, Gamble, Govan and McLeod: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF MENTAL HEALTH TO DEVELOP AND SUBMIT TO THE GENERAL ASSEMBLY A PROPOSAL FOR THE CONSTRUCTION AND OPERATION OF A NURSING HOME FACILITY FOR STATE VETERANS.

The Senate proceeded to a consideration of the Joint Resolution, the question being the adoption of the committee amendment.

The Committee on Medical Affairs proposed the following amendment (PSD\7343AC.98), which was adopted:
Amend the joint resolution, as and if amended, SECTION 1, page 4549-3, line 18, after / . / by inserting / In developing the proposal, the department shall give consideration to the appropriate use of existing facilities and other available options./
Renumber sections to conform.
Amend title to conform.

The amendment was adopted.

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

H. 4754 -- Reps. Witherspoon, Sharpe, Bailey, Clyburn, Simrill, Meacham, Seithel, Inabinett, Mason, Littlejohn, McKay, Rodgers, Miller, Rhoad, Walker, Battle, Lloyd, Barfield, McMahand, J. Hines, Dantzler, Stille and Leach: A BILL TO AMEND SECTION 50-11-1910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALE OF DEER PARTS, SO AS TO PROHIBIT THE SALE OF LIVE DEER AND CERTAIN DEER PARTS, INCLUDING CERTAIN VENISON, ANTLERS, AND GAMETES, AND TO REVISE THE PENALTY FOR VIOLATION; AND TO AMEND SECTION 50-11-1920, AS AMENDED, RELATING TO SALE OF VENISON IN EATING ESTABLISHMENTS, SO AS TO ALLOW SALE OF VENISON NOT ONLY BY FOOD SERVICE ESTABLISHMENTS, BUT ALSO BY OFFICIAL ESTABLISHMENTS AND WHOLESALE FOOD DISTRIBUTORS WHO COMPLY WITH INSPECTION, RECORDKEEPING, AND OTHER REQUIREMENTS.

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

Senator PEELER proposed the following amendment (4754R002.HSP), which was adopted:

Amend the bill, as and if amended, page [4754-2], by striking line 33 and inserting in lieu thereof:
/venison only if the venison is nonnative farm exotic farm-raised deer and/
Amend the bill further, as and if amended, page [4754-3] by striking line 26 and inserting in lieu thereof:
/obtain a permit, at no cost, to buy and sell exotic farm-raised/
Amend the bill further, as and if amended, page [4754-3], by adding after line 36, the following:
/   ( )   The sale of whitetail deer, wild or farm raised, is prohibited./
Amend title to conform.

Senator PEELER explained the amendment.

The amendment was adopted.

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

S. 1145 -- Senator McConnell: A BILL TO AMEND SECTION 50-17-1010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COASTAL FISHERIES LAWS, SO AS TO ALLOW SHRIMP BOATS TO DRAG NETS NO CLOSER THAN ONE-HALF MILE OF KIAWAH AND SEABROOK ISLAND BEACHES.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the committee amendment.

The Committee on Fish, Game and Forestry proposed the following amendment (GGS\22114CM.98), which was adopted:
Amend the bill, as and if amended, Section 50-17-1010(5) as contained in SECTION 1, by deleting / one-half / and inserting / one-fourth / on line 31, page 1, and by deleting / one-half / and inserting / one-fourth / on line 32, page 1.
When amended, Section 50-17-1010(5) shall read:
/ "(5)   All that area bounded by a closed line beginning at the point on the southwestern end of Seabrook Island where the inshore trawl boundary crossing North Edisto River Inlet intersects the shoreline, thence following the shoreline of Seabrook Island and crossing Captain Sams Inlet; thence following the shoreline of Kiawah Island to the easternmost point of Kiawah Island (Sandy Point) at latitude 32° 37.18' N, longitude 079° 59.65' W; thence southerly following a straight line on a geodetic azimuth of 180 degrees, to the point one-fourth nautical mile seaward from the shoreline; thence southwesterly following a line that is one-fourth nautical mile seaward of the shoreline to the point at the intersection of said line and the inshore trawl boundary, thence easterly following the inshore trawl boundary to the point of beginning; the above-described area being based on NOS chart 11521 (22nd edition, January 20, 1996)." /
Amend title to conform.

The amendment was adopted.

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

H. 4886 -- Reps. Sharpe and Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-565 SO AS TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH "ARCHERY EQUIPMENT", "BOW AND ARROWS", AND "CROSSBOWS" MAY BE USED IN THE HUNTING AND TAKING OF CERTAIN GAME.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the committee amendment.

The Committee on Fish, Game and Forestry proposed the following amendment (GGS\22111CM.98), which was adopted:
Amend the bill, as and if amended, Section 50-11-565(A)(3), as contained in SECTION 1, by inserting / permanent / before / disability / on line 36, page 1.
When amended, Section 50-11-565(A)(3) shall read:
"(3)   'Upper limb permanent disability' means an impairment certified by a licensed neurologist or orthopedist which prevents a person from holding the mass weight of archery equipment or a bow and arrow at arms length perpendicular to the body, or drawing or pulling the string of archery equipment or a bow and arrow of a minimum draw weight of forty pounds."
Amend further Section 50-11-565(B) as contained in SECTION 1, by inserting/ permanent / before / disability / on line 3, page 2, by inserting / permanent / before / disability / on line 4, page 2, and by inserting / permanent / before / disability / on line 6, page 2.
When amended, Section 50-11-565(B) shall read:
"(B)   Crossbows are legal for use statewide during any open season for deer, turkey, or bear by a person who suffers from an upper limb permanent disability, provided the person, while hunting, has in immediate possession a written statement certifying the permanent disability. The statement, based on a physical examination by the certifying neurologist or orthopedist, shall describe the permanent disability and shall state the person is not capable of operating archery equipment or a bow and arrow. A copy of the statement must be provided to the department prior to hunting with a crossbow."
Amend title to conform.

Senator PEELER explained the committee amendment.

The amendment was adopted.

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

H. 4939 -- Reps. Tripp, Wilkins, Haskins, McMahand and F. Smith: A JOINT RESOLUTION TO REQUIRE COLONIAL PIPELINE SETTLEMENT REVENUES TO BE CREDITED TO THE MITIGATION TRUST FUND FOR ENVIRONMENTAL CLEANUP OF THE REEDY RIVER.

Senator J. VERNE SMITH asked unanimous consent to take the Joint Resolution up for immediate consideration.
There was no objection.

The Senate proceeded to a consideration of the Joint Resolution, the question being the adoption of the committee amendment.

The Committee on Fish, Game and Forestry proposed the following amendment (H4939.AMD), which was adopted:
Amend the bill, as and if amended, page 4939-2 by striking lines 18-22 and inserting:
/Notwithstanding any other provisions of law, funds recovered for losses or damages to natural resources by the State as settlement for the Colonial Pipeline spill into the Reedy River shall be deposited to the Mitigation Trust Fund established pursuant to Section 50-3-180 of the 1976 Code and used for the acquisition, restoration, enhancement, or management of property for mitigation for adverse impacts to natural resources in the area(s) of the Reedy River where the losses or damages occurred. When the restoration is complete, any excess funds will be remitted to the Mitigation Trust Fund. If funds from the settlement are not adequate, then additional funds from the Mitigation Trust Fund may be used to complete such restoration./
Amend title to conform.

The amendment was adopted.

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

The following Bill was carried over:

H. 4856 -- Reps. Delleney and Wilkins: A BILL TO AMEND SECTION 2-19-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ELECTION OF JUSTICES AND JUDGES, SO AS TO REQUIRE THAT ALL MATERIALS CONCERNING A WITHDRAWN CANDIDATE INCLUDING HIS REPORT, TRANSCRIPT, APPLICATION MATERIALS, AND ALL INFORMATION GATHERED DURING THE COMMISSION'S INVESTIGATION MUST BE KEPT CONFIDENTIAL AND DESTROYED AND IS EXEMPT FROM DISCLOSURE PURSUANT TO THE FREEDOM OF INFORMATION ACT; AND TO AMEND SECTION 2-19-50, AS AMENDED, RELATING TO THE CONFIDENTIALITY OF RECORDS, SO AS TO REMOVE WITHDRAWN CANDIDATES FROM THE PROVISIONS OF THIS SECTION AND PROVIDE THAT INFORMATION REQUIRED TO BE KEPT CONFIDENTIAL ALSO IS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT.
On motion of Senator RYBERG, the Bill was carried over.

H. 4364 -- Reps. Cato, Knotts, Littlejohn, Mason, Stille, Vaughn and Hinson: A BILL TO AMEND SECTION 44-7-130, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN THE STATE CERTIFICATION OF NEED AND HEALTH FACILITY LICENSURE ACT, SO AS TO DELETE KIDNEY DISEASE TREATMENT CENTERS AND HEMODIALYSIS CENTERS FROM THE DEFINITION OF "HEALTH CARE FACILITY", AND TO AMEND SECTION 44-7-170, AS AMENDED, RELATING TO EXEMPTIONS FROM THE CERTIFICATE OF NEED PROCESS, SO AS TO EXEMPT KIDNEY DISEASE TREATMENT CENTERS.

Senator FAIR asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.

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

Senator FAIR proposed the following amendment (JIC\5644AC.98):
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION   1.   Section 44-7-110 of the 1976 Code, as last amended by Act 670 of 1988, is further amended to read:
"Section 44-7-110.   This article may be cited as the 'State Certification Certificate of Need and Health Facility Licensure Act'."
SECTION   2.   Section 44-7-120 of the 1976 Code, as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-120.   The purpose of this article is to promote cost containment, prevent unnecessary duplication of health care facilities and certain services as required by Section 44-7-160, guide the establishment of health facilities and certain services which will best serve public needs, carry out the State's health planning effort, and ensure that high quality services are provided in health facilities in this State. To achieve these purposes, this article requires:
(1)   the issuance of a Certificate of Need before undertaking a project prescribed by this article;
(2)   adoption of procedures and criteria for submittal of an application and appropriate review before issuance of a Certificate of Need;
(3)   preparation and publication of a State Health Plan as prescribed by this article;
(4)(3)   the licensure of facilities rendering medical, nursing, and other health care."
SECTION   3.   Section 44-7-130 of the 1976 Code, as last amended by Act 1 of 1995, is further amended to read:
"Section 44-7-130.   As used in this article:
(1)   'Affected person' means the applicant, a person residing within the geographic service area served or proposed to be served by the applicant, including persons located in the health service area in which the project is to be located and who provide similar services to the proposed project, persons who before receipt by the department of the proposal being reviewed have formally indicated an intention to provide similar services in the future, persons who pay for health services in the health service area in which the project is to be located and who have notified the department of their interest in Certificate of Need applications, the State Consumer Advocate, and the State Ombudsman. Persons This term does not include persons from another state who would otherwise be considered 'affected persons' are not included unless that state provides for similar involvement of persons from South Carolina in its certificate of need process.
(2)   'Ambulatory surgical facility' means a facility organized and administered for the purpose of performing surgical procedures for which patients are scheduled to arrive, receive surgery, and be discharged on the same day. The owner or operator makes the facility available to other providers who comprise an organized professional staff which must include, at a minimum, a chief of staff and a credentialing committee, governance by medical staff by-laws, and recorded minutes of medical staff meetings.
(3)   'Board' means the State Board of Health and Environmental Control.
(4)   'Chiropractic inpatient facility' means a facility organized and administered to provide overnight care for patients requiring chiropractic services, including vertebral sublaxation, analysis, and adjustment.
(5)   'Competing applicants' means two or more persons or health care facilities as defined in this article who apply for Certificates of Need to provide similar services or facilities in the same service area within a time frame as established by departmental regulations and whose applications, if approved, would exceed the need for services or facilities.
(6)   'Community residential care facility' means a facility which offers room and board and provides a degree of personal assistance for two or more persons eighteen years old or older.
(7)   'Day-care facility for adults' means a facility for adults eighteen twenty-one years or older which offers in a group setting a program of individual and group activities and therapies. The program is directed toward providing community-based care for those in need of a supportive setting for less than twenty-four hours a day, thereby preventing unnecessary institutionalization, and shall provide a minimum of four and a maximum of fourteen hours of operation a day.
(8)   'Department' means the Department of Health and Environmental Control.
(9)   'The federal act' means Title VI of the United States Public Health Service Act (the Hill-Burton Construction Program); Title XVI of the United States Public Health Service Act (National Health Planning and Resources Development Act of 1974 - Public Law 93-641); grants for all center and facility construction under Public Law 91-211 (community mental health centers' amendments to Title II, Public Law 88-164, Community Mental Health Centers Act); grants for all facility construction under Public Law 91-517 (developmental disabilities services and facilities construction amendments of 1970 to Part C, Title I, grants for construction of facilities for the mentally retarded - Public Law 88-164); and other federal programs as may exist or be enacted which provide for the construction of hospitals or related health facilities. RESERVED.
(10)   'Health care facility' means acute care hospitals, psychiatric hospitals, alcohol and substance abuse hospitals, methadone treatment facilities, tuberculosis hospitals, nursing homes, kidney disease treatment centers, including free-standing hemodialysis centers, ambulatory surgical facilities, rehabilitation facilities, and residential treatment facilities for children and adolescents, habilitation centers for mentally retarded persons or persons with related conditions, and any other facility for which Certificate of Need review is required by federal law.
(11)   'Health service' means clinically related, diagnostic, treatment, or rehabilitative services and includes alcohol, drug abuse, and mental health services for which specific standards or criteria are prescribed in the State Health Plan. RESERVED.
(12)   'Hospital' means a facility organized and administered to provide overnight medical or surgical care or nursing care of illness, injury, or infirmity and may provide obstetrical care, and in which all diagnoses, treatment, or care is administered by or under the direction of persons currently licensed to practice medicine, surgery, or osteopathy.
Hospital may include residential treatment facilities for children and adolescents in need of mental health treatment which are physically a part of a licensed psychiatric hospital. This definition does not include facilities which are licensed by the Department of Social Services.
(13)   'Nursing home' means a facility with an organized nursing staff to maintain and operate organized facilities and services to accommodate two or more unrelated persons over a period exceeding twenty-four hours which is operated either in connection with a hospital or as a freestanding facility for the express or implied purpose of providing intermediate or skilled nursing care for persons who are not in need of hospital care.
(14)   'Facility for chemically dependent or addicted persons' means a facility organized to provide outpatient or residential services to chemically dependent or addicted persons and their families based on an individual treatment plan including diagnostic treatment, individual and group counseling, family therapy, vocational and educational development counseling, and referral services.
(15)   'Person' means an individual, a trust or estate, a partnership, a corporation including an association, joint stock company, insurance company, and a health maintenance organization, a state, a political subdivision, or an instrumentality including a municipal corporation of a state, or any legal entity recognized by the State.
(16)   'Residential treatment facility for children and adolescents' means a facility operated for the assessment, diagnosis, treatment, and care by two or more persons of 'children and adolescents in need of mental health treatment' which provides:
(a)   a special education program with a minimum program defined by the South Carolina Department of Education;
(b)   recreational facilities with an organized youth development program; and
(c)   residential treatment for a child or adolescent in need of mental health treatment.
(17)   'Solely for research' means a service, procedure, or equipment which has not been approved by the Food and Drug Administration (FDA) but which is currently undergoing review by the FDA as an investigational device. FDA research protocol and any applicable Investigational Device Exemption (IDE) policies and regulations must be followed by a facility proposing a project 'solely for research'. 'Service area' means that geographic area specified in the State Health Plan which is determined by population data, patient origin data, or area health facilities offering services to the area. This service area is used in planning for specified health facilities and services and is to be used when considering applications to provide health facilities and services.
(18)   'Children and adolescents in need of mental health treatment' in a residential treatment facility means a child or adolescent under age eighteen twenty-one who manifests a substantial disorder of cognitive or emotional process, which lessens or impairs to a marked degree that child's capacity either to develop or to exercise age-appropriate or age-adequate behavior. The behavior includes, but is not limited to, marked disorders of mood or thought processes, severe difficulties with self-control and judgment including behavior dangerous to self or others, and serious disturbances in the ability to care for and relate to others.
(19)   'Intermediate Care Facility for the Mentally Retarded' means a facility that serves four or more mentally retarded persons or persons with related conditions and provides health or rehabilitative services on a regular basis to individuals whose mental and physical conditions require services including room, board, and active treatment for their mental retardation or related conditions.
(20)   'Freestanding or mobile technology' means medical equipment owned or operated by a person other than a health care facility for which the total cost is in excess of that prescribed by regulation and for which specific standards or criteria are prescribed in the State Health Plan.
(21)   'Like equipment with similar capabilities' means medical equipment which does not increase the potential volume or type of procedures possible. RESERVED.
(22)   'Facilities wherein abortions are performed' means a facility, other than a hospital, in which any second trimester or five or more first trimester abortions are performed in a month."
SECTION   4.   Section 44-7-150(1) of the 1976 Code, as added by Act 670 of 1988, is amended to read:
"(1)   require reports, collect data, and make inspections and investigations as considered necessary;"
SECTION   5.   Section 44-7-160 of the 1976, as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-160.   A person or health care facility as defined in this article is required to obtain a Certificate of Need from the department before undertaking any of the following:
(1)   the construction or other establishment of a new health care facility;
(2)   a change in the existing bed complement of a health care facility through the addition of one or more beds or change in the classification of licensure of one or more beds;
(3)   an expenditure by or on behalf of a health care facility in excess of an amount to be prescribed by regulation which, under generally acceptable accounting principles consistently applied, is considered a capital expenditure except those expenditures exempted in Section 44-7-170(B)(1). The cost of any studies, surveys, designs, plans, working drawings, specifications, and other activities essential to the development, acquisition, improvement, expansion, or replacement of any plant or equipment must be included in determining if the expenditure exceeds the prescribed amount establishment, implementation, or expansion of a diagnostic or therapeutic cardiac catherization program;
(4)   a capital expenditure by or on behalf of a health care facility which is associated with the addition or substantial expansion of a health service for which specific standards or criteria are prescribed in the State Health Plan establishment, implementation, or expansion of an open heart surgery program or other cardiac revascularization program;
(5)   the offering of a health service by or on behalf of a health care facility which has not been offered by the facility in the preceding twelve months and which has an annual operating cost in excess of an amount to be prescribed by regulation and for which specific standards or criteria are prescribed in the State Health Plan establishment, implementation, or expansion of a nursery for the care of a level III infant;
(6)   the acquisition of medical equipment which is to be used for diagnosis or treatment if the total project cost is in excess of that prescribed by regulation establishment, implementation, or expansion of a linear accelerator or gamma knife;
(7)   the acquisition or change in ownership or in controlling interest of a health care facility or entity owning a health care facility directly or indirectly by purchase, lease, gift, donation, sale of stock, or comparable arrangement if the acquisition or change in ownership or controlling interest may result in an increase in cost to the facility or increase in government-sponsored reimbursement establishment, implementation, or expansion of a magnetic resonance imaging (MRI) system including free standing MRI's; and
(8)   the acquisition of an existing health care facility by a person who has failed to notify the department and seeks an exemption before entering into a contractual arrangement to acquire an existing facility;
(9)   an expenditure or financial obligation made in preparation for the offering or developing of a project which requires certification of need pursuant to this section if the expenditure or financial obligation is in excess of an amount to be prescribed by regulation the construction or other establishment of an ambulatory surgical facility."
SECTION   6.   Section 44-7-170 of the 1976 Code, as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-170.   (A)   The provisions of this article do not apply to:
(1)   health care facilities owned and operated by the federal government;
(2)   the offices of a licensed private practitioner whether for individual or group practice except as provided for in Section 44-7-160(7);
(3)   the acquisition by a health care facility of medical equipment to be used solely for research, the offering of an institutional health service by a health care facility solely for research, or the obligation of a capital expenditure by a health care facility to be made solely for research if it does not (a) affect the charges of the facility for the provision of medical or other patient care services other than the services which are included in the research; (b) change the bed capacity of the facility; or (c) substantially change the medical or other patient care services of the facility. A written description of the proposed research project must be submitted to the department in order for the department to determine if the above conditions are met. A Certificate of Need is required in order to continue use of the equipment or service after research restrictions are removed;
(4)   purchases of or agreements to purchase real estate; however, the costs associated with the purchase of real estate must be included in determining the total project cost at the time the real estate is proposed to be developed.
(B)   The Certificate of Need provisions of this article do not apply to:
(1)   an expenditure by or on behalf of a health care facility for nonmedical projects for services such as refinancing existing debt, parking garages, laundries, roof replacements, computer systems, telephone systems, heating and air conditioning systems, upgrading facilities which do not involve additional square feet or additional health services, replacement of like equipment with similar capabilities, or similar projects as described in regulations;
(2)   facilities owned and operated by the State Department of Mental Health and the South Carolina Department of Mental Retardation, except an addition of one or more beds to the total number of beds of the departments' health care facilities existing on July 1, 1988 Disabilities and Special Needs;
(3)(2)   educational and penal institutions maintaining infirmaries for the exclusive use of their respective student bodies and inmate populations;
(4)(3)   any federal health care facility sponsored and operated by this State;
(4)   purchases of or agreements to purchase real estate; however, the value associated with the purchase of real estate must be included in determining the total project cost at the time the real estate is proposed to be developed;
(5)   community-based housing designed to promote independent living for persons with mental or physical disabilities. This does not include a facility defined in this article as a 'health care facility'.;
(6)   inpatient hospices serving only terminally ill patients;
(7)   methadone treatment facilities licensed as of January 1, 1997;
(8)   home health agencies established after July 1, 2003."
SECTION   7.   Section 44-7-180 of the 1976 Code, as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-180.   (A)   There is created a health planning committee comprised of fourteen members. The Governor shall appoint twelve members, at least one member from each congressional district. Each of the following groups must be equally represented among the Governor's appointees: health care consumers, health care financiers to include business and insurance, and health care providers. The chairman of the board shall appoint one member. The South Carolina Consumer Advocate or the Consumer Advocate's designee is an ex officio nonvoting member. Members are appointed for four-year terms, may serve only two consecutive terms, and are allowed the usual mileage and subsistence as provided for members of boards, committees, and commissions.
(B)   With the advice of the health planning committee, the department shall prepare a State Health Plan for use in the state's health planning program and administration of the Certificate of Need Program provided in this article. The plan at a minimum must include:
(1)   an inventory of existing health care facilities, licensed beds, specified health services, and equipment;
(2)   projections of need for additional health care facilities, licensed beds, health services, and equipment described in Section 44-7-160;
(3)   standards for distribution of health care facilities, beds, specified health services, and equipment including scope of services to be provided, utilization, and occupancy rates, travel time, regionalization, other factors relating to proper placement of services, and proper planning of health care facilities statistical documentation of the health status of the citizens of South Carolina; comparisons of the utilization by providers of specified services to state or nationally recommended standards, or both; individual county profiles including inventories of existing health systems and their utilization; and other relevant statistical or programmatic information as may be necessary to adequately document the health status of the State. Where feasible, other health related plans, data and goals of the department and other agencies or organizations must be incorporated into the State Health Plan; and
(4)   a general statement as to the project review criteria considered most important in evaluating certificate of need applications for each type of facility, service, and equipment, including a finding as to whether the benefits of improved accessibility to each such type of facility, service, and equipment may outweigh the adverse affects caused by the duplication of any existing facility, service, or equipment.
The State Health Plan must address and include projections and standards for specified health services and equipment which have a potential to substantially impact health care cost and accessibility. Nothing in this provision shall be construed as requiring the department to approve any project which is inconsistent with the State Health Plan state or national quality indicators and other outcome data if used by the department to conduct comparative analysis.
(C)   A person proposing to offer one or more health services for which utilization data are maintained in the State Health Plan shall notify the department in writing upon initiation of the service. The notification must include the name, address, and telephone number for the site where the service will be provided and a brief description of the proposed service. All providers must supply utilization and other data as requested by the department as being necessary to fulfill development of the relevant sections of the State Health Plan.
(C)(D)   Upon approval by the health planning committee, the State Health Plan must be submitted at least once every two years to the board for final revision and adoption. Once adopted by the board, the plan may later be revised through the same planning and approval process. The department shall adopt by regulation a procedure to allow public review and comment, including regional public hearings, before adoption or revision of the plan.
(D)(E)   The Department of Health and Environmental Control may charge and collect fees to cover the cost of operating the Certificate of Need program. Upon submission of a complete Certificate of Need application, the applicant must pay a fee of five hundred dollars plus five-tenths of one percent of the project cost for review of the project, not to exceed seven thousand, five hundred dollars; however, for an applicant whose review fee would exceed seven thousand, five hundred dollars an additional fee of seven thousand, five hundred dollars is imposed if the applicant is awarded a Certificate of Need, which must be paid at the time of the award. Fees paid pursuant to this subsection must be deposited to the credit of the general fund of the State."
SECTION   8.   Section 44-7-190 of the 1976 Code, as added by Act 670 of 1988, is amended to read:
"Section 44-7-190.   The department shall adopt, upon approval of the board, Project Review Criteria which, at a minimum, must provide for the determination of need for health care facilities, beds, services and equipment described in Section 44-7-160, to include demographic needs, appropriate distribution, and utilization; accessibility to underserved groups; availability of facilities and services without regard to ability to pay; absence of less costly and more effective alternatives; appropriate financial considerations to include method of financing, financial feasibility, and cost containment; consideration of impact on health systems resources; site and building suitability; consideration of quality of care; and relevant special considerations as may be appropriate. The Project Review Criteria must be adopted as a regulation pursuant to the Administrative Procedures Act."
SECTION   9.   Section 44-7-200 of the 1976 Code, as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-200.   (A)   An application for a Certificate of Need must be submitted to the department in a form established by regulation. The application must address all applicable standards and requirements set forth in departmental regulations, Project Review Criteria of the department, and the State Health Plan. The application must include the payment of a nonrefundable initial application fee of five hundred dollars. The department shall deduct this fee from the Certificate of Need filing fee which is payable in accordance with departmental regulations when the application is determined to be complete.
(B)   Within twenty days before submission of an application, the applicant shall publish notification that an application is to be submitted to the department in a newspaper serving the area where the project is to be located for three consecutive days. The notification must contain a brief description of the scope and nature of the project. No application may be accepted for filing by the department unless accompanied by proof that publication has been made for three consecutive days within the prior twenty-day period and payment of the initial application fee has been received.
(C)   Upon publication of this notice and until a contested case hearing is requested pursuant to Section 44-7-210:
(1)   members of the board and persons appointed by the board to hear appeals from department staff decisions may not communicate directly or indirectly with any person in connection with the application; and
(2)   no person shall communicate, or cause another to communicate, as to the merits of the application with members of the board and persons appointed by the board to hear appeals from department staff decisions.
A person who violates this subsection is subject to the penalties provided in Section 1-23-360.
(D)   After receipt of an application with proof of publication and payment of the initial application fee, the department shall publish in the State Register a notice that an application has been accepted for filing. Within thirty days of acceptance of the application, the department may request additional information as may be necessary to complete the application. The applicant has thirty days from the date of the request to submit the additional information. If the applicant fails to submit the requested information within the thirty-day period, the application is considered withdrawn."
SECTION   10.   Section 44-7-210 of the 1976 Code as last amended by Act 511 of 1992, is further amended to read:
"Section 44-7-210.   (A)   After the department has determined that an application is complete, affected persons must be notified in accordance with departmental regulations. The notification of affected persons begins the review period. During the review process, the department shall determine the relative importance of the project review criteria for this project and shall notify the applicant of this determination. The applicant has thirty days from the date of the receipt of this notice to submit any additional information regarding determination by the department of the relative importance of the project review criteria. The review period for a completed application is sixty days from the date of notification of affected persons, or up to sixty days from the date that applicants are notified of the relative importance of project review criteria provided for in this section, whichever is longer. One extension of up to sixty days may be granted by the department in accordance with departmental regulations with the exception of an extension that is granted to comply with a request for a public hearing.
(B)   The department may hold a public hearing, if timely requested, to gather information and obtain public comment and opinion about the proposed project.
(C)   The department may not issue a Certificate of Need unless an application complies with the State Health Plan, Project Review Criteria, and other regulations. Based on project review criteria and other regulations, which must be identified by the department, the department may refuse to issue a Certificate of Need even if an application complies with the State Health Plan. In the case of competing applications, the department shall award a Certificate of Need, if appropriate, on the basis of which, if any, most fully complies with the requirements, goals, and purposes of this article and the State Health Plan, Project Review Criteria, and the regulations adopted by the department.
(D)   On the basis of staff review of the application, the staff of the department shall make a proposed decision to grant or deny the Certificate of Need. Notice of the proposed decision must be sent to the applicant and affected persons who have asked to be notified. The proposed decision becomes the final agency decision within ten days after the receipt of a notice of the proposed decision by the applicant unless:
(1)   a reconsideration by the staff of the department is requested in writing within the ten-day period by an affected person showing good cause for reconsideration of the proposed decision; reconsideration by the staff must occur within thirty days from receipt of the request; or
(2)   a contested case hearing before the board, or its designee, regarding the grant or denial of the Certificate of Need is requested in writing within the ten-day period by the applicant or other affected person with standing to contest the grant or denial of the application.
Reconsideration by the staff must occur within thirty days from receipt of the request.
(E)   Appeals of staff decisions, other than motions for reconsideration, must be contested pursuant to the Administrative Procedures Act. Prior to a contested case hearing, all parties shall participate in non-binding mediation as provided for regulation. The department's proposed decision is not final until the completion of reconsideration, mediation that results in settlement, or contested case proceedings. The burden of proof in a reconsideration or contested case hearing must be upon the moving party. The contested case hearing before the board or its designee is conducted as a contested case under the Administrative Procedures Act. The issues considered at the contested case hearing are limited to those presented or considered during the staff review and decision process."
SECTION   11.   The first paragraph of Section 44-7-220 of the 1976 Code, as amended by Act 471 of 1990, is further amended to read:
"After the contested case hearing is concluded and a final board decision is made, a party who participated in the contested case hearing before the board and who is affected adversely by the board's decision may obtain judicial review of the decision in the circuit court pursuant to the Administrative Procedures Act. An appeal taken to the circuit court from a decision of the board on a Certificate of Need application has precedence on the court's calendar and must be heard not later than forty-five days from the date the petition is filed."
SECTION   12.   Section 44-7-230(A) of the 1976 Code, as last amended by Act 511 of 1992, is further amended to read:
"(A)   The Certificate of Need, if issued, is valid only for the project described in the application including location, beds and services to be offered, physical plant, capital or operating costs, or other factors as set forth in the application, except as may be modified in accordance with regulations. The department shall require periodic reports and make inspections to determine compliance with the Certificate of Need. Implementation of the project or operation of the facility or medical equipment that is not in accordance with the Certificate of Need application or conditions subsequently agreed to by the applicant and the department may be considered a violation of this article and subject to penalties provided for in Section 44-7-320 or other appropriate remedy as allowed by law."
SECTION   13.   Section 44-69-75(A) of the 1976 Code, as last amended by Act 381 of 1996 is further amended to read:
"(A)   A home health agency shall obtain a certificate of need before licensure. Procedures for applying for a certificate must be in accordance with the 'State Certification Certificate of Need and Health Facility Licensure Act'. No certificate is required for home health agencies providing home health services before July 1, 1980."
SECTION   14.   The Department of Health and Environmental Control may not issue a Certificate of Need approval pursuant to Article 3, Chapter 7, Title 44 of the 1976 Code for a methadone treatment facility until licensure standards are promulgated by the department, in accordance with the Administrative Procedures Act, for these facilities. The department shall convene a study group to revise and propose licensure standards for methadone clinics. The study group shall consist of representatives of the department, the Department of Alcohol and Other Drug Abuse Services, methadone providers in South Carolina, and the Medical University of South Carolina. The licensure standards shall include standards for location of these facilities within the community. Methadone treatment facilities licensed as of January 1, 1997 are not required to obtain a certificate of need pursuant to this section.
SECTION   15.   Before July 1, 2003, but not sooner than July 1, 2001, the Department of Health and Environmental Control shall conduct a study of other states which have repealed their certificate of need programs. The study shall review what effects, if any, the repeal of this program had on cost of health care, quality of health care, accessibility of health care, and indigent care. The department shall submit a report on the study, its findings, and recommendations to the Governor and General Assembly upon completion of the study.
SECTION   16.   Section 44-7-300 of the 1976 Code is repealed.
SECTION   17.   This act takes effect July 1, 1998./
Renumber sections to conform.
Amend title to conform.

Senator FAIR explained the amendment.

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

H. 4526 -- Reps. Kelley, Edge, Barfield and Keegan: A BILL TO AMEND SECTION 12-21-2420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE IMPOSITION OF AND EXEMPTIONS FROM THE ADMISSIONS LICENSE TAX, SO AS TO PROVIDE THAT THE MEASURE OF THIS TAX DOES NOT INCLUDE ANY TAX OR FEE IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE THAT CONSTITUTES A PART OF THE CHARGE FOR ADMISSION.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senator SALEEBY proposed the following amendment (4526I001.EES):
Amend the bill, as and if amended, by adding an appropriately numbered section to read:
SECTION_____________.
/   Section 27-16-110. Bingo, video poker and similar devices; other gambling or wagering; state laws to govern; licenses; tax.
TXT:
(A) Except as specifically provided in the federal implementing legislation and this chapter, all laws, ordinances, and regulations of South Carolina and its political subdivisions govern the conduct of gambling or wager by the Tribe on and off the Reservation.
(B) The State shall govern the conduct of bingo under Article 23 24, Chapter 21 of Title 12, Regulation of Bingo Games, including regulations or rulings issued in relation to that article, except as provided by the special bingo license to which the Tribe is entitled in accordance with this section if it elects to sponsor bingo games under the special license.
(1) For purposes of conducting the game of bingo, the Tribe is deemed a nonprofit organization under Article 23 24, Chapter 21 of Title 12.
(2) If the Tribe elects to conduct the game of bingo either on or off the reservation, the Tribe shall obtain a license from the South Carolina Tax Commission Department of Revenue. Based on the Tribe's election, the Tribe may be licensed by the South Carolina Tax Commission Department of Revenue to conduct games of bingo under a regular license allowed nonprofit organizations or under the special license provided by this section.
(C) The Tribe may apply to the South Carolina Tax Commission Department of Revenue for a special bingo license in lieu of licenses authorized by Article 23 24, Chapter 21 of Title 12. A special or regular license must be granted if the Tribe complies with licensing requirements and procedures. The special license is identical in all respects to the class of license permitting the highest level of prizes allowed by law and carries the same privileges and duties as the class of license permitting the highest level of prizes provided by law, except:
(1) The frequency of the sessions must be determined by the Executive Committee but must be no more frequent than six sessions a week, with sessions on Sundays prohibited unless state law otherwise expressly allows Sunday sessions.
(2) The amount of prizes offered each session must be determined by the Tribe, but must not be greater than one hundred thousand dollars for any game.
(3) The Tribe shall pay, in lieu of an admission, a head, a license, or any other bingo tax, a special bingo tax equal to ten percent of the gross proceeds received during each session. for each dollar of face value for each bingo card sold. No other federal, state, or local taxes apply to revenues generated by the bingo games operated by the Tribe. All revenues derived from the special bingo tax must be collected by the South Carolina Tax Commission Department of Revenue and deposited with the State Treasurer for the benefit of the General Fund of South Carolina.
(4) At least fifty percent of the gross proceeds received by the Tribe during a calendar quarter must be returned to the players in the form of prizes. For purposes of this section, "gross proceeds" does not include the ten percent special bingo tax.
(5) The Tribe is entitled to two bingo licenses, and these licenses may be used to operate at two locations only. They are not assignable to any other entity or individual.
(6) The net proceeds derived by the Tribe from the conduct of bingo may be used for any purpose authorized by the Tribe.
(D) The Tribe may elect to operate one of the games under a special bingo license off the Reservation and not within the one hundred forty-four thousand acre Catawba Claim Area, but before doing so, it first must obtain the approval of the governing authority of the county and any municipality in which it seeks to locate the facility. If the Tribe elects to operate one or both of the games off the Reservation but within the one hundred forty-four thousand acre Catawba Claim Area, it shall do so in an area zoned compatibly for commercial activities after consulting with the municipality or county where a facility is to be located.
(E) The sponsor and promoter of the bingo games is the Catawba Indian Tribe, and all profits gained from the enterprise accrue to the Tribe. The South Carolina Tax Commission Department of Revenue, or its regulatory successor, has the power to administer, oversee, and regulate all bingo games sponsored and conducted by the Tribe, audit and enforce the operation of the games, and assess and collect taxes, interest, and penalties in accordance with the laws and regulations of the State as they apply to the Tribe. The South Carolina Tax Commission Department of Revenue, or its regulatory successor, has the right to suspend or revoke the Tribe's bingo license or special bingo license if the Tribe violates the law with regard to conducting the game. However, the Tax Commission Department of Revenue, or its regulatory successor, first shall notify the Tribe of violations and provide the Tribe with an opportunity to correct the violations before its license may be revoked. Failure to pay bingo taxes, interest, or penalties may be grounds for license revocation.
(F) A license of the Tribe to conduct bingo must be revoked if the game of bingo is no longer licensed by the State. If the State resumes licensing the game of bingo, the Tribe's license or special license must be reinstated if the Tribe complies with all licensing requirements and procedures.
(G) The Tribe may permit on its Reservation video poker or similar electronic play devices to the same extent that the devices are authorized by state law. The Tribe is subject to all taxes, license requirements, regulations, and fees governing electronic play devices provided by state law, except if the reservation is located in a county or counties which prohibit the devices pursuant to state law, the Tribe nonetheless must be permitted to operate the devices on the Reservation if the governing body of the Tribe so authorizes, subject to all taxes, license requirements, regulations, and fees governing electronic play devices provided by state law.
(H) If the Tribe elects to sponsor and conduct games of bingo under a regular license allowed nonprofit organizations under Article 23 24, Chapter 21 of Title 12, the Tribe must be taxed as a nonprofit corporation under that article.
Amend title to conform.

Senator SALEEBY explained the amendment.

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

H. 4998 -- Reps. Boan and Lanford: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 11, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PLEDGING OF THE CREDIT OF THE STATE AND PROHIBITING OWNERSHIP OF THE STATE IN A COMPANY, ASSOCIATION, OR CORPORATION, SO AS TO ALLOW THE STATE TREASURER TO INVEST ENDOWMENT FUNDS DONATED TO SPECIFIC STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING IN EQUITY SECURITIES OF UNITED STATES CORPORATIONS REGISTERED ON A NATIONAL SECURITIES EXCHANGE OR QUOTED THROUGH A NATIONAL QUOTATIONS SYSTEM, SUBJECT TO PROCEDURES DEVELOPED BY THE GENERAL ASSEMBLY IN COORDINATION WITH THE STATE RETIREMENT SYSTEM INVESTMENT PANEL, THE STATE TREASURER, AND THE BOARDS OF TRUSTEES OF THE RESPECTIVE COLLEGES AND UNIVERSITIES.

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

Senator DRUMMOND proposed the following amendment (PT/1930MM.98):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION   1.   It is proposed that Section 11, Article X of the Constitution of this State be amended by adding a paragraph at the end to read:
"Provided, however, that endowment funds donated specifically to state-supported institutions of higher learning and held by the State Treasurer may be invested and reinvested in equity securities of a corporation within the United States that is registered on a national securities exchange, as provided in the Securities Exchange Act of 1934 or a successor act, or quoted through the National Association of Securities Dealers Automatic Quotations System or similar service. The General Assembly shall implement this paragraph by enacting legislation establishing the procedures by which these funds may be invested, in coordination with the State Retirement System Investment Panel, the State Budget and Control Board, and the boards of trustees of the respective colleges and universities."
SECTION   2.   The proposed amendment must be submitted to the qualified electors at the next general election for representatives. Ballots must be provided at the various voting precincts with the following words printed or written on the ballot:
"Must Section 11, Article X of the Constitution of this State relating to the pledging of the credit of the State and prohibiting ownership of the State in a company, association, or corporation be amended so as to allow the State Treasurer to invest endowment funds donated specifically to state-supported institutions of higher learning in equity securities of United States corporations registered on a national securities exchange or quoted through a national quotations system, subject to procedures developed by the General Assembly in coordination with the State Retirement System Investment Panel, the State Budget and Control Board, and the boards of trustees of the respective colleges and universities?

Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after the word 'Yes', and those voting against the question shall deposit a ballot with a check or cross mark in the square after the word 'No'." /
Amend the bill further, by striking all before the enacting words and inserting:
/ PROPOSING AN AMENDMENT TO SECTION 11, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PLEDGING OF THE CREDIT OF THE STATE AND PROHIBITING OWNERSHIP OF THE STATE IN A COMPANY, ASSOCIATION, OR CORPORATION, SO AS TO ALLOW THE STATE TREASURER TO INVEST ENDOWMENT FUNDS DONATED SPECIFICALLY TO STATE-SUPPORTED INSTITUTIONS OF HIGHER LEARNING IN EQUITY SECURITIES OF UNITED STATES CORPORATIONS REGISTERED ON A NATIONAL SECURITIES EXCHANGE OR QUOTED THROUGH A NATIONAL QUOTATIONS SYSTEM, SUBJECT TO PROCEDURES DEVELOPED BY THE GENERAL ASSEMBLY IN COORDINATION WITH THE STATE RETIREMENT SYSTEM INVESTMENT PANEL, THE STATE BUDGET AND CONTROL BOARD, AND THE BOARDS OF TRUSTEES OF THE RESPECTIVE COLLEGES AND UNIVERSITIES. /

Senator LAND explained the amendment.

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

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.

S. 941 -- Senators Courson, Wilson, Leatherman, Ryberg, Giese, Peeler, Russell, Thomas, Fair and Grooms: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO FINANCE AND TAXATION BY ADDING SECTION 1A AND AMENDING EXISTING SECTION 6 OF THE ARTICLE SO AS TO REQUIRE PROPERTY CLASSIFIED AS "ALL OTHER PERSONAL PROPERTY" TO BE THE SUBJECT OF A SEPARATE MILLAGE LEVY WHICH MAY NOT EXCEED THE 1998 PROPERTY TAX YEAR LEVY ON SUCH PROPERTY INCLUDING MILLAGE LEVIED FOR BONDED INDEBTEDNESS AND TO MAKE A CONFORMING AMENDMENT.

The Senate proceeded to a consideration of the Joint Resolution, the question being the third reading of the Joint Resolution.

Senator PASSAILAIGUE spoke on the Joint Resolution.

On motion of Senator DRUMMOND, with unanimous consent, debate was interrupted by recess, Senator PASSAILAIGUE retaining the floor.

At 1:03 P.M., with Senator PASSAILAIGUE retaining the floor, on motion of Senator DRUMMOND, with unanimous consent, the Senate receded from business until 2:30 P.M.

The Senate reassembled at 2:30 P.M. and was called to order by the PRESIDENT.

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

Senator HAYES moved that the Senate stand adjourned.

The Senate stood adjourned.

At 2:33 P.M., on motion of Senator HAYES, the Senate adjourned to meet tomorrow at 11:00 A.M.

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