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 ACTING PRESIDENT, Senator ALEXANDER.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, hear the admonition of St. Paul to his young protege, Timothy. Chapter 6 (vv. 20-21, I Tim.):
"O Timothy, guard what has been entrusted to you. Avoid the godless chatter and contradictions of what is falsely called knowledge, for by professing it some have missed the mark as regards the faith. God be with you."
Let us pray.
Eternal God, our Father, for the wonderful world about us, and for the beauty and marvels of the mysteries of nature, we thank and praise You.
For the deeper world of the Spirit within Your human creation we are often mystified. Concerned! Because out of the heart of mankind come the desires and the motives that drive us to misery... or happiness.
Help us to know that we must be right with You before we can really straighten out our business with our fellow-mortals.
Amen!
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following was received:
Document No. 2287
Promulgated by Department of Natural Resources
Hunt Units and Wildlife Management Area Regulations
Received by Lt. Governor March 3, 1998
Referred to Senate Committee on Fish, Game and Forestry
Withdrawn April 28, 1998
Senator THOMAS asked unanimous consent to make a motion that the Senate go into Executive Session after completion of the Calendar work.
Senator REESE objected.
My objection to holding an Executive Session is temporary. As soon as the Senate has in its possession all appointments, both local as well as statewide, which are subject to advice and consent of the Senate, I will ask unanimous consent to have Executive Session.
H. 3784 (Word version) -- Reps. Haskins, Jordan, Neal, H. Brown, Allison, Altman, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Bowers, G. Brown, Byrd, Cato, Cave, Clyburn, Cobb-Hunter, Cooper, Davenport, Edge, Fleming, Hamilton, J. Hines, M. Hines, Hodges, Howard, Jennings, Kelley, Knotts, Law, Leach, Lee, Limehouse, Littlejohn, Loftis, Mack, Maddox, McCraw, McKay, Meacham, Miller, Parks, Phillips, Pinckney, Quinn, Rice, Riser, Robinson, Sandifer, Scott, Sharpe, Simrill, F. Smith, R. Smith, Townsend, Tripp, Trotter, Vaughn, Webb, Whatley, Whipper, Woodrum, Young, Govan, Campsen and Harrell: A BILL TO AMEND CHAPTER 45, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LICENSING AND REGULATION OF PHYSICAL THERAPISTS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL LICENSING BOARDS IN CHAPTER 1, TITLE 40 AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF PHYSICAL THERAPISTS INCLUDING, BUT NOT LIMITED TO, DELETING THE REQUIREMENT FOR TREATMENT BY PRESCRIPTION OF A PHYSICIAN OR DENTIST, CLARIFYING THE SCOPE OF PRACTICE, PROHIBITING, RECEIVING, OR IN ANY WAY PARTICIPATING IN REFUNDING FEES FOR PATIENT REFERRALS, REVISING REQUIREMENTS FOR LICENSEES NOT GRADUATING FROM AN APPROVED SCHOOL, ESTABLISHING PROVISIONAL LICENSES AND BIENNIAL LICENSURE, REQUIRING CONTINUING EDUCATION FOR RENEWAL, PROVIDING A CIVIL PENALTY, AND INCREASING CRIMINAL PENALTIES.
On behalf of the Chairmen's Committee, Senator DRUMMOND asked unanimous consent to make a motion to make the Bill a Special Order.
There was no objection and, on behalf of the Chairmen's Committee, the Bill was made a Special Order.
S. 1049 (Word version) -- Senator Mescher: A BILL TO AMEND CHAPTER 16, TITLE 50 OF THE SOUTH CAROLINA CODE OF LAWS, 1976, RELATING TO IMPORTATION OF WILDLIFE, BY ADDING ARTICLE 3, SO AS TO AUTHORIZE DEER FARMING; TO PROVIDE FOR IMPORTATION AND REGULATION OF FARMED DEER; TO PROVIDE FOR LICENSURE OF DEER FARMING OPERATIONS; AND TO AMEND SECTION 50-11-1910 RELATING TO SALE OF DEER PARTS SO AS TO PROVIDE FOR THE PURCHASE AND SALE OF FARMED DEER PRODUCTS AND BY-PRODUCTS IN THE STATE.
Having voted on the prevailing side, Senator DRUMMOND asked unanimous consent to make a motion to reconsider the vote whereby the Bill was given third reading.
There was no objection.
On motion of Senator DRUMMOND, with unanimous consent, the Bill was ordered placed on the Calendar.
Having voted on the prevailing side, Senator MOORE asked unanimous consent to make a motion to reconsider the vote whereby the Bill was given third reading.
There was no objection.
On motion of Senator MOORE, with unanimous consent, the following amendment was taken up for immediate consideration. The amendment was then adopted.
Senators HUTTO, SHORT, CORK and JACKSON proposed the following amendment (3760R001.CBH), which was adopted:
Amend the bill, as and if amended, page 3, before the effective clause, by adding appropriately numbered new SECTION to read:
/ SECTION __. Title 44 of the 1976 Code is amended by adding:
Section 44-122-10. As used in this chapter:
(1) 'Adolescent' means an individual nineteen years of age and under.
(2) 'Contractor' means a public or private agency or organization receiving money from the fund.
(3) 'County government' means the governing body of a county or the organization or agency in a county that has been designated pursuant to Section 44-122-30(C) to assume the duties and responsibilities assigned to county governments.
(4) 'Department' means the South Carolina Department of Social Services.
(5) 'Initiative' means a local program or project funded by a county pursuant to this chapter.
(6) 'Short term outcomes' mean the intermediate results that a particular adolescent pregnancy prevention intervention is likely to produce including, but not limited to, increased knowledge, behavior change, or delays or reductions in sexual activity.
(7) 'Long term outcome' means the measurable reduction in the rate of adolescent pregnancy for a specific target population or defined geographic area.
(8) 'Primary pregnancy prevention' means prevention of first pregnancy.
(9) 'Fund' means the County Grants Fund for Adolescent Pregnancy Prevention Initiatives created by this chapter.
Section 44-122-20. (A) There is established the County Grants Fund for Adolescent Pregnancy Prevention Initiatives. The fund must be administered by the department and county governments as provided in this chapter. The purpose of the fund is to support local efforts to prevent early sexual activity and to measurably reduce the rate of adolescent pregnancy in each county and in the State and to ensure that these efforts reflect local community values.
(B) Any program components funded by federal Temporary Assistance for Needy Families (TANF) dollars will be subject to TANF reporting requirements and federal fiscal accountability requirements. The department will amend the South Carolina Temporary Assistance for Needy Families (TANF) Block Grant State Plan as required by federal law to govern expenditures of federal TANF dollars.
Section 44-122-30. (A) Ten percent of the money appropriated annually to the fund by the General Assembly is to be used by the department to evaluate the effectiveness of each initiative and the fund as specified in Section 44-122-60. The remaining money must be distributed by the department to each county government in the following manner:
(1) fifteen percent of the money appropriated must be allocated evenly among all counties;
(2) fifteen percent of the money appropriated must be allocated to counties based on the size of their adolescent population;
(3) twenty percent of the money appropriated must be allocated to counties based on their rate of adolescent pregnancy;
(4) forty percent of the funds appropriated must be allocated to counties based on their number of adolescent pregnancies.
A county government may retain up to five percent of the money it receives to cover the actual costs of administering the fund. All other funds must be allocated for initiatives mainly focused on primary pregnancy prevention. Money must be allocated by the county within two years of receipt.
(B) Money appropriated to the fund must not be used for:
(1) purchase of inpatient care;
(2) purchase or improvement of land;
(3) purchase, construction, or permanent improvement of any building or other facility;
(4) purchase of major equipment;
(5) transportation to or from abortion services;
(6) abortions; or
(7) provision of anything of monetary value to a participant in a local project or initiative; counseling and guidance may be provided as well as any service of non-monetary value.
(C) If the governing body of a county chooses not to assume the responsibilities and duties assigned to county governments by this chapter:
(1) the governing body may designate an agency or organization to assume those responsibilities and duties; or
(2) in the absence of designation by the governing body, the department may designate another agency or organization within the county to assume those responsibilities and duties.
If a county government uses money it receives pursuant to subsection (A) in a manner not expressly authorized by this chapter, the department may designate another agency or organization within the county to assume those responsibilities and duties.
Section 44-122-40. (A) A local public or private agency or organization or combination of these agencies and organizations may apply to the county government for an allocation of funds to operate an adolescent pregnancy prevention initiative. All initiatives funded by the county government pursuant to this chapter shall emphasize premarital sexual abstinence and male responsibility. All applications must meet the following minimum standards for consideration:
(1) Each initiative must have a plan of action for prevention of adolescent pregnancy that extends for at least five years. The proposal must include convincing evidence of a direct link between project activities and the reduction of adolescent pregnancy in the target population.
(2) Each initiative must have realistic, specific, and measurable goals, objectives, timelines, and budget for the prevention of adolescent pregnancy.
(3) The proposal must include a description of the method for collecting and reporting the data required by the department to evaluate the effectiveness of the initiative as specified in Section 44-122-60. Each initiative, before submitting its proposal, must send a representative to the evaluation standards workshop sponsored by the department.
(B) Continuation of funding for a local teen pregnancy prevention initiative is contingent upon:
(1) successful evaluation of the effectiveness of the contractor's performance in achieving its short term outcomes within the first two years of receiving money and in achieving the fund's long term outcome by the end of the third year of receiving money; and
(2) the contractor updating information concerning the nature of the problem in its target population, available resources, and potential barriers to success, with appropriate changes in the initiative's goals, objectives, timelines, and budget.
Section 44-122-50. (A) The Department of Social Services shall:
(1) monitor the statewide administration of the fund;
(2) evaluate the success of this chapter and initiatives funded under this chapter, as required by Section 44-122-60;
(3) analyze all available information and report to the Governor and the General Assembly on the effectiveness of the fund in measurably reducing the rate of adolescent pregnancy in the State. These reports must be made annually, with the first report due three years after the first distribution of funds pursuant to Section 44-122-30(A); and
(4) provide to each county government specific criteria required by this legislation.
(B) County governments shall:
(1) oversee and administer funds distributed to the county pursuant to Section 44-122-30(A);
(2) choose from among the applicants that meet the minimum standards;
(3) develop additional criteria, as necessary, to meet specific local needs; and
(4) monitor contractors' progress in meeting stated goals, objectives, and timelines.
(C) Contractors shall:
(1) comply with reporting, contracting, and evaluation requirements of the county government and the department;
(2) define and maintain cooperative ties with other community institutions;
(3) coordinate and collaborate with other community entities that have an interest in positive youth development and adolescent risk behavior reduction;
(4) obtain approval from the county government before making changes in program goals, objectives, and target populations; and
(5) before the beginning of each fiscal year, submit to the county government for approval a budget of planned expenditures, and at the end of each fiscal year, render an accounting of expenditures to the county government.
(D) The Department of Health and Environmental Control shall:
(1) provide technical assistance and training to county governments and contractors, as needed, related to adolescent pregnancy prevention issues; and
(2) if a community health assessment has been conducted in a county, share information with county governments, contractors, and program applicants about the nature of the problem, available resources, and potential barriers to the development of teen pregnancy prevention projects and activities.
Section 44-122-60. An evaluation must be conducted by a firm or individual external to the department, on a schedule to be determined by the department, and must assess the effectiveness of each initiative in meeting its short and long term outcomes. Evaluation standards must be consistent across all initiatives. The evaluation also must assess the effectiveness of each county government's efforts in measurably reducing the rate of adolescent pregnancy for the county. These efforts include administration of the fund and selection and oversight of contractors."/
Amend title to conform.
The amendment was adopted.
There being no further amendments, the Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.
Senator HOLLAND asked unanimous consent to make a motion to recall the Bill from the Committee on Judiciary.
There was no objection.
H. 4998 (Word version) -- 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.
Senator DRUMMOND asked unanimous consent to make a motion to recall the Joint Resolution from the Committee on Finance.
There was no objection.
H. 4895 (Word version) -- Reps. Carnell, McKay, Inabinett, Bailey, Wilder, Klauber, Keegan, Kelley, Bowers, Beck, Dantzler, R. Smith, Askins, J. Smith, Mason, Hawkins, H. Brown, Lanford, Townsend, Meacham, McAbee, McCraw, Sharpe, Woodrum, Witherspoon, Haskins, Stoddard, Battle, Davenport, Kirsh, Loftis, Quinn, G. Brown, Fleming and Edge: A CONCURRENT RESOLUTION TO MEMORIALIZE CONGRESS TO
AMEND THE TAX LAWS OF THE UNITED STATES RELATING TO ONLY FIFTY PERCENT OF BUSINESS MEAL AND ENTERTAINMENT EXPENSES BEING ALLOWED AS A DEDUCTION, SO AS TO RESTORE AND PROVIDE FOR THE DEDUCTION OF ONE HUNDRED PERCENT OF BUSINESS MEAL AND ENTERTAINMENT EXPENSES.
Senator DRUMMOND asked unanimous consent to make a motion to recall the Resolution from the Committee on Finance.
There was no objection.
S. 1106 (Word version) -- 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 make a motion to recall the Bill from the Committee on Finance.
There was no objection.
H. 4526 (Word version) -- 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.
Senator RANKIN asked unanimous consent to make a motion to recall the Bill from the Committee on Finance.
There was no objection.
Senator DRUMMOND asked unanimous consent to make a motion to recall the Bill from the Committee on Finance.
There was no objection.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
On motion of Senator DRUMMOND, with unanimous consent, the Bill was read the second time, passed and ordered to a third reading.
The following were introduced:
S. 1218 (Word version) -- Senator Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-645 SO AS TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO PROVIDE NOTICE OF CERTAIN HEARINGS TO FOSTER PARENTS, PREADOPTIVE PARENTS, AND RELATIVES PROVIDING CARE OF A CHILD; BY ADDING SECTION 20-7-763 SO AS TO CLARIFY WHAT IS REQUIRED OF THE DEPARTMENT OF SOCIAL SERVICES WHEN IT MUST MAKE "REASONABLE EFFORTS" IN WORKING WITH FAMILIES AND CHILDREN AND TO FURTHER AUTHORIZE THE FAMILY COURT TO MAKE DETERMINATIONS AS TO WHEN REASONABLE EFFORTS MAY BE REQUIRED AND WHEN THEY MAY BE TERMINATED OR DISPENSED WITH; BY ADDING SECTION 20-7-768 SO AS TO PROVIDE CONDITIONS UNDER WHICH THE DEPARTMENT SHALL INITIATE OR JOIN IN A PROCEEDING FOR TERMINATION OF PARENTAL RIGHTS AND TO PROVIDE EXCEPTIONS; TO AMEND SECTION 20-7-736, AS AMENDED, RELATING TO JUDICIAL PROCEEDINGS FOR REMOVAL OF A CHILD FROM THE HOME, SO AS TO REVISE THE STANDARD FOR REMOVAL; TO AMEND SECTION 20-7-766, AS AMENDED, RELATING TO PERMANENCY PLANNING AND JUDICIAL REVIEW OF THE PLAN, SO AS TO REVISE THE STANDARD FOR RETURNING THE CHILD HOME TO REFLECT THE CHANGES FOR REMOVAL OF THE CHILD AND TO REQUIRE IN THE
FINDINGS WHEN A CHILD IS NOT RETURNED TO THE PARENTS, THE STEPS THE DEPARTMENT HAS TAKEN TO PROMOTE AND EXPEDITE THE ADOPTIVE PLACEMENT OF THE CHILD; TO AMEND SECTION 20-7-1572, AS AMENDED, RELATING TO GROUNDS FOR TERMINATION OF PARENTAL RIGHTS, SO AS TO INCLUDE AS GROUNDS THAT A CHILD HAS BEEN IN FOSTER CARE WITH THE STATE FOR FIFTEEN OF THE MOST RECENT TWENTY-TWO MONTHS AND THAT PHYSICAL ABUSE CAUSED THE DEATH OR INPATIENT HOSPITALIZATION OF A CHILD AND THE PARENT WAS CONVICTED FOR THE OFFENSE; TO AMEND SECTION 20-7-1642, AS AMENDED, RELATING TO PERSONS WITH WHOM A CHILD MAY NOT BE PLACED FOR FOSTER CARE, SO AS TO INCLUDE A PERSON CONVICTED OF A FELONY DRUG-RELATED OFFENSE AND TO PROVIDE THAT SIMILAR OFFENSES COMMITTED IN OTHER JURISDICTIONS ARE ALSO A BAR TO PLACING A CHILD IN FOSTER CARE WITH SUCH AN OFFENDER; TO AMEND SECTION 20-7-1670, AS AMENDED, RELATING TO PERSONS WHO MAY PETITION FOR ADOPTION OF A CHILD, SO AS TO PROVIDE EXCEPTIONS AND TO PROVIDE FOR A HEARING IF THE DEPARTMENT VIOLATES THIS SECTION; AND TO AMEND SECTION 20-7-1895 RELATING TO THE STATEWIDE ADOPTION EXCHANGE, SO AS TO DELETE THE PROVISION THAT ONLY A "SPECIAL NEEDS CHILD" MAY BE REFERRED TO A REGIONAL OR NATIONAL ADOPTION EXCHANGE.
Read the first time and referred to the Committee on Judiciary.
S. 1219 (Word version) -- Senator Land: A BILL TO AMEND ACT 375 OF 1947, RELATING TO THE CLARENDON HOSPITAL DISTRICT, SO AS TO REVISE THE POWERS OF THE DISTRICT'S BOARD OF TRUSTEES.
Read the first time and ordered placed on the local and uncontested Calendar without reference.
On motion of Senator LAND, S. 1219 was ordered to receive a second and third reading on the next two consecutive legislative days.
S. 1220 (Word version) -- Senators Washington and Cork: A SENATE RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SOUTH CAROLINA SENATE TO THE BATTERY CREEK HIGH SCHOOL "LADY DOLPHINS" GIRLS BASKETBALL TEAM AND COACHES ON WINNING THE 1997-98 CLASS AAA STATE CHAMPIONSHIP.
The Senate Resolution was adopted.
S. 1221 (Word version) -- Senator Peeler: A CONCURRENT RESOLUTION TO OFFER THE CONGRATULATIONS AND BEST WISHES OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO SPECIAL AGENT E. DEWITT "SPIKE DOG" McCRAW, JR., OF THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION (SLED) ON THE OCCASION OF BEING SELECTED AS THE "STATEWIDE LAW ENFORCEMENT OFFICER OF THE YEAR".
The Concurrent Resolution was adopted, ordered sent to the House.
S. 1222 (Word version) -- Senator Washington: A CONCURRENT RESOLUTION TO EXTEND SINCERE CONGRATULATIONS AND BEST WISHES OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE BELOVED MRS. ELEANOR M. RANDALL OF HARDEEVILLE ON THE OCCASION OF HER EIGHTY-FIFTH BIRTHDAY CELEBRATION.
The Concurrent Resolution was adopted, ordered sent to the House.
S. 1223 (Word version) -- Senators Holland, McGill, and O'Dell: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO ERECT SIGNS IN HONOR OF THE CAMDEN MILITARY ACADEMY ALONGSIDE THE EAST AND WEST BOUND LANES OF INTERSTATE HIGHWAY TWENTY NEAR HIGHWAY 521 IN KERSHAW COUNTY.
The Concurrent Resolution was adopted, ordered sent to the House.
H. 5087 (Word version) -- Reps. Cave, Rhoad, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Byrd, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, A. Harris, Harrison, Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, 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, Neal, Neilson, Phillips, Pinckney, Quinn, 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, Woodrum, Young and Young-Brickell: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE COACHES AND MEMBERS OF THE SOUTH CAROLINA BOYS HIGH SCHOOL BASKETBALL ALL-STARS ON THE OCCASION OF THEIR WINNING THE INAUGURAL CAROLINAS CLASSIC BOYS HIGH SCHOOL ALL-STAR BASKETBALL GAME PLAYED AT ROCK HILL ON MARCH 29, 1998.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5088 (Word version) -- Reps. Cave, Rhoad, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Byrd, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Cromer, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Felder, Fleming, Gamble, Gourdine, Govan, Hamilton, Harrell, A. Harris, Harrison, Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, 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, Neal, Neilson, Phillips, Pinckney, Quinn, 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, Woodrum, Young and Young-Brickell: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE COACHES AND MEMBERS OF THE SOUTH CAROLINA GIRLS HIGH SCHOOL BASKETBALL ALL-STARS ON THE OCCASION OF THEIR WINNING THE INAUGURAL CAROLINAS CLASSIC GIRLS HIGH SCHOOL ALL-STAR BASKETBALL GAME PLAYED AT ROCK HILL ON MARCH 29, 1998.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5090 (Word version) -- Reps. Cave and Rhoad: A CONCURRENT RESOLUTION TO CONGRATULATE CLIFFORD "CHIP" ATKINS, BARNWELL HIGH SCHOOL BOYS BASKETBALL COACH, ON HIS MANY OUTSTANDING ACHIEVEMENTS DURING HIS MORE THAN THIRTY-YEAR CAREER AS A HIGH SCHOOL BASKETBALL COACH.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5093 (Word version) -- Reps. Lee and D. Smith: A CONCURRENT RESOLUTION CONGRATULATING CLEMSON UNIVERSITY ALL-AMERICA LINEBACKER ANTHONY SIMMONS OF SPARTANBURG COUNTY ON BEING SELECTED ON THE FIRST DAY OF THE FIRST ROUND OF THE 1998 NATIONAL FOOTBALL LEAGUE (NFL) DRAFT TO PLAY FOR THE SEATTLE SEAHAWKS AND WISHING HIM GREAT SUCCESS AS AN NFL PLAYER.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 5096 (Word version) -- Reps. J. Brown, Scott, Howard, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. 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, Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, 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, Neal, Neilson, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, 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, Woodrum, Young and Young-Brickell: A CONCURRENT RESOLUTION TO DECLARE MAY, 1998, AS "TEENAGE PREGNANCY PREVENTION AWARENESS MONTH".
Whereas, teenage pregnancy has significant consequences on the health, economic, and educational future for teenagers and the people of South Carolina; and
Whereas, teenage parents often are unable to complete their education, which leads to unemployment, underemployment, and dependence on public welfare; and
Whereas, the cycle of poverty can be perpetuated from generation to generation; and
Whereas, the major responsibility of parenting alters a generation of young women and renders them the primary caretakers of families; and
Whereas, teenage mothers often seek late prenatal care, frequently suffering higher than average levels of toxemia, anemia, cervical trauma, premature delivery, and low birth weight babies; and
`Whereas, it is essential to build public awareness of these issues so that programs and strategies that prevent teenage pregnancy and decrease the problems associated with teenage pregnancy in South Carolina can be developed and improved. Now, therefore,
Be it resolved by the House of Representatives, the Senate concurring:
That the members of the General Assembly, by this resolution, declare May, 1998, as "Teenage Pregnancy Prevention Awareness Month" and urge all citizens to educate themselves on the consequences of teen pregnancy in this State.
Introduced and referred to the Committee on Invitations.
H. 5098 (Word version) -- Reps. Byrd, Allison, Altman, Askins, Bailey, Barfield, Barrett, Battle, Bauer, Baxley, Beck, Boan, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, 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, Harvin, Haskins, Hawkins, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Jordan, Keegan, Kelley, Kennedy, 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, Neal, 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, Woodrum, Young and Young-Brickell: A CONCURRENT RESOLUTION CONGRATULATING THE BENEDICT COLLEGE "TIGERS" MEN'S BASKETBALL TEAM AND COACH WILLIE WASHINGTON FOR WINNING THE EASTERN INTERCOLLEGIATE ATHLETIC CONFERENCE TITLE FOR THE NINTH STRAIGHT YEAR.
The Concurrent Resolution was adopted, ordered returned to the House.
Senator COURTNEY from the Committee on Judiciary submitted a favorable report on:
S. 1000 (Word version) -- Senators Ford and Holland: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE III, SECTION 33 OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE AGE OF CONSENT TO SEXUAL INTERCOURSE FOR AN UNMARRIED PERSON, SO AS TO RAISE THE AGE OF CONSENT FROM FOURTEEN TO SIXTEEN YEARS OF AGE.
Ordered for consideration tomorrow.
Senator COURTNEY from the Committee on Judiciary submitted a majority favorable with amendment and Senator MARTIN a minority unfavorable report on:
S. 1140 (Word version) -- Senators Land, Hayes and Courtney: A BILL TO AMEND SECTION 42-17-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HEARINGS BEFORE THE WORKERS' COMPENSATION COMMISSION SO AS TO PROVIDE THAT THE HEARING MUST BE HELD AT A SITE DESIGNATED BY THE COMMISSION TAKING ANY HARDSHIP INTO CONSIDERATION IN SELECTING THE SITE.
Ordered for consideration tomorrow.
Senator SALEEBY from the Committee on Banking and Insurance polled out H. 4683 with no report: H. 4683 (Word version) -- 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.
Saleeby McConnell Matthews Courtney Patterson Passailaigue Hayes Russell Jackson Rankin Washington FordTOTAL--12
Leatherman Setzler Courson Thomas Reese Martin
Ordered for consideration tomorrow.
Senator WILSON from the Committee on Judiciary submitted a favorable report on:
H. 4755 (Word version) -- 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.
Ordered for consideration tomorrow.
The House returned the Bill with amendments.
Senator LEVENTIS explained the House amendments.
On motion of Senator LEVENTIS, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bills were read the third time and having received three readings in both Houses, it was ordered that the titles be changed to that of Acts and enrolled for Ratification:
H. 4968 (Word version) -- Reps. Hawkins, Littlejohn, Lee and Davenport: A BILL TO AMEND ACT 1195 OF 1958, AS AMENDED, RELATING TO THE WEST VIEW-FAIRFOREST FIRE DISTRICT CONTROL BOARD, SO AS TO INCREASE THE BOARD FROM THREE TO FIVE MEMBERS.
(By prior motion of Senator RUSSELL)
H. 4809 (Word version) -- Reps. Harvin and Young: A BILL TO AMEND ACT 959 OF 1972, AS AMENDED, RELATING TO THE CLARENDON COUNTY AREA VOCATIONAL SCHOOL AND MANPOWER TRAINING CENTER AND ITS GOVERNING BOARD, SO AS TO PROVIDE THAT THE CHAIRMAN OF THE CLARENDON COUNTY BOARD OF EDUCATION, OR HIS DESIGNEE, ALSO SHALL SERVE AS AN EX OFFICIO MEMBER OF THIS BOARD.
(By prior motion of Senator LAND)
The following Bills were read the third time and ordered sent to the House of Representatives:
S. 1170 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND CHAPTER 19, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DOMESTIC MUTUAL INSURERS, BY ADDING ARTICLE 13 SO AS TO PROVIDE FOR THE REORGANIZATION OF A DOMESTIC OR FOREIGN MUTUAL INSURER AS A DOMESTIC MUTUAL INSURANCE HOLDING COMPANY SYSTEM.
S. 981 (Word version) -- Senator Giese: A BILL TO AMEND SECTION 40-35-230, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE OF COMMUNITY RESIDENTIAL CARE FACILITY ADMINISTRATORS, SO AS TO REQUIRE AN ASSOCIATE DEGREE WITH ONE YEAR OF ON-SITE SUPERVISED EXPERIENCE RATHER THAN A HIGH SCHOOL EDUCATION. S. 1120 (Word version) -- Senators Elliott and Rankin: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM SALES TAX, SECTION 27-32-170, RELATING TO EXEMPTION FROM SALES TAX OF SALE OF A VACATION TIME SHARING PLAN, AND SECTION 27-32-250, AS AMENDED, RELATING TO EXEMPTION FROM SALES TAX OF SALE OF A VACATION MULTIPLE OWNERSHIP INTEREST, ALL SO AS TO EXEMPT FROM SALES TAX THE SALE OR RESALE OR THE EXCHANGE OF AN INTEREST IN A VACATION TIME SHARING PLAN AND A VACATION MULTIPLE OWNERSHIP INTEREST.
Senator MOORE asked unanimous consent to take the Bill up for immediate consideration.
There was no objection.
S. 1210 (Word version) -- Senator Courtney: A BILL TO AMEND SECTION 15-78-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TORT CLAIMS ACT, SO AS TO INCLUDE AS AN EXCEPTION TO WAIVER OF IMMUNITY ANY LIABILITY CAUSED BY AN INCORRECT DATE PRODUCED, CALCULATED, OR GENERATED BY A STATE OWNED OR OPERATED COMPUTER OR OTHER INFORMATION SYSTEM UNLESS CAUSED BY THE GROSS NEGLIGENCE OF THE OPERATOR.
S. 1133 (Word version) -- Senators Courtney, Leventis, Hayes, Alexander, Waldrep, Short, McConnell, Giese, O'Dell, Peeler, Cork, Wilson, Moore, Fair, McGill, Martin, Lander, Reese, Thomas, Mescher, Patterson, Ryberg, Anderson, Grooms, Land, Jackson, Branton, Holland, Ravenel, Courson, Passailaigue, J. Verne Smith, Bryan, Drummond, Leatherman, Glover, Ford, Setzler, Russell, Matthews and Rankin: A BILL TO AMEND CHAPTER 5, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-5-160, SO AS TO ENACT "THE SCHOOL TUTORING ACT" TO AUTHORIZE AN INDIVIDUAL WHO PROVIDES VOLUNTEER TUTORING SERVICES IN A PUBLIC SCHOOL TO RECEIVE A STATE TAX CREDIT OR A TUITION CREDIT REDEEMABLE AT A STATE PUBLIC INSTITUTION OF HIGHER LEARNING.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator COURTNEY proposed the following amendment (1133R001.CTC), which was adopted:
Amend the bill, as and if amended, page [1133-3], by striking lines 11-14 and inserting in lieu thereof:
/(E) The State Board of Education shall promulgate regulations relating to tutor certification and the dissemination of tuition credits. The Commission on Higher Education shall promulgate regulations relating to the redemption of tuition credits./
Amend title to conform.
Senator COURTNEY explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the third time and ordered sent to the House of Representatives.
The PRESIDENT assumed the Chair at 11:56 A.M.
The following Bills having been read the second time with notice of general amendments, were ordered placed on the third reading Calendar: S. 718 (Word version) -- Senator O'Dell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-55-55 SO AS TO PROHIBIT PRACTICING PSYCHOLOGY WITHOUT A LICENSE; TO AMEND SECTION 40-55-50, RELATING TO ACTS CONSTITUTING PRACTICING AS A PSYCHOLOGIST SO AS TO FURTHER SPECIFY WHAT ACTS CONSTITUTE SUCH PRACTICE; TO AMEND SECTION 40-55-80, AS AMENDED, RELATING TO PSYCHOLOGY LICENSE AND APPLICATION REQUIREMENTS SO AS TO REMOVE THE PROVISIONS THAT A PERSON MAY HAVE A DOCTOR'S DEGREE IN AN ALLIED FIELD RATHER THAN IN PSYCHOLOGY AND THAT A LICENSE MAY BE AWARDED WITHOUT EXAMINATION; TO AMEND SECTION 40-55-90, RELATING TO EXEMPTIONS FROM PSYCHOLOGY LICENSURE SO AS TO FURTHER SPECIFY AND CLARIFY THESE EXEMPTIONS; AND TO AMEND SECTION 40-55-170, AS AMENDED, RELATING TO PENALTIES FOR VIOLATIONS OF THE PSYCHOLOGY PRACTICE ACT SO AS TO CLARIFY THAT IT IS UNLAWFUL FOR A PERSON TO PRACTICE OR OFFER TO PRACTICE PSYCHOLOGY IN VIOLATION OF CHAPTER 55, TITLE 40, TO INCREASE PENALTIES, AND TO REQUIRE THE BOARD TO REFER POSSIBLE VIOLATIONS TO THE SOLICITOR.
Senator BRYAN asked unanimous consent to give the Bill a second reading with notice of general amendments, carrying over all amendments on third.
There was no objection.
S. 951 (Word version) -- Senators Drummond, McConnell, Courtney, Bryan, O'Dell and Waldrep: A BILL TO AMEND CHAPTER 75, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF LICENSED PROFESSIONAL COUNSELORS BY ADDING ARTICLE 3, SO AS TO PROVIDE FOR THE LICENSURE AND REGULATION OF SPECIALISTS IN SCHOOL PSYCHOLOGY; TO AMEND SECTION 40-75-20, RELATING TO THE BOARD OF EXAMINERS FOR THE LICENSURE OF PROFESSIONAL COUNSELORS, ASSOCIATE COUNSELORS, AND MARITAL AND FAMILY THERAPISTS, SO AS TO ADD A SPECIALIST IN SCHOOL PSYCHOLOGY TO THE BOARD; TO REQUIRE PERSONS QUALIFIED TO PRACTICE SCHOOL PSYCHOLOGY ON THE EFFECTIVE DATE OF THIS ACT TO APPLY FOR LICENSURE BEFORE OCTOBER 1, 1998; AND TO DESIGNATE SECTIONS 40-75-10 THROUGH 40-75-190 AS ARTICLE 1 OF CHAPTER 75, TITLE 40, ENTITLED "PROFESSIONAL COUNSELORS, ASSOCIATE COUNSELORS, AND MARITAL AND FAMILY THERAPISTS", AND TO RENAME CHAPTER 75, TITLE 40 "PROFESSIONAL COUNSELORS, ASSOCIATE COUNSELORS, MARITAL AND FAMILY THERAPISTS, AND SPECIALISTS IN SCHOOL PSYCHOLOGY".
Senator COURTNEY asked unanimous consent to give the Bill a second reading with notice of general amendments, carrying over all amendments on third.
There was no objection.
S. 1128 (Word version) -- Senators Holland, J. Verne Smith, McGill and Elliott: A BILL TO AMEND TITLE 40, CHAPTER 75, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROFESSIONAL COUNSELORS, ASSOCIATE COUNSELORS, AND MARITAL AND FAMILY THERAPISTS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK OF TITLE 40, CHAPTER 1 FOR BOARDS UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION, TO FURTHER PROVIDE FOR THE LICENSING AND REGULATION OF PROFESSIONAL COUNSELORS AND MARRIAGE THERAPISTS AND INTERNS AND TO PROVIDE FOR THE LICENSURE AND REGULATION OF ALCOHOL AND DRUG ABUSE COUNSELORS.
Senator GIESE asked unanimous consent to give the Bill a second reading with notice of general amendments, carrying over all amendments on third.
There was no objection.
S. 1050 (Word version) -- Senators Leventis, Drummond, Holland, Hayes and Hutto: A BILL TO AMEND TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGRICULTURE, BY ADDING CHAPTER 53 SO AS TO ENACT THE "FARM AND FOREST LANDS PROTECTION ACT" WHICH ESTABLISHES STATE AND COUNTY PRIORITY AGRICULTURAL LAND BOARDS, WHICH PROVIDES FOR THEIR POWERS AND DUTIES, WHICH ESTABLISHES CRITERIA AND PROCEDURES FOR CREATING PRIORITY AGRICULTURAL LAND AREAS AND FOR THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS FOR LAND WITHIN THE PRIORITY AREA, WHICH CREATES THE PRIORITY AGRICULTURAL LAND TRUST FUND TO DISBURSE FUNDS FOR THE PURCHASE OF CONSERVATION EASEMENTS, WHICH REQUIRES THE PERIODIC REVIEW OF ALL PRIORITY AGRICULTURAL LAND AREAS, AND WHICH RESTRICTS SOME LOCAL GOVERNMENT ACTIONS WITH REGARD TO PRIORITY AREAS.
The Senate proceeded to a consideration of the Bill, the question being the adoption of the committee amendment.
The Committee on Agriculture and Natural Resources proposed the following amendment (1050.A20.PPL), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof:
SECTION 1. Title 46 of the 1976 Code is amended by adding:
Section 46-53-10. This chapter must be known and may be cited as the 'Farm and Forest Lands Protection Act.'
Section 46-53-20. It is the purpose of this chapter to:
(1) provide a means by which agricultural and forest lands may be protected and enhanced as a viable segment of the state's economy and as an economic and environmental resource of major importance;
(2) encourage landowners to make a voluntary long-term commitment to agriculture and forestry by offering landowners financial incentives and security of land use;
(3) protect agricultural and forestry operations in priority agricultural land areas from incompatible nonagricultural and nonforestry land uses that may render agriculture and forestry operations nonviable;
(4) ensure permanent protection of productive agricultural and forest lands in order to protect the agricultural and forestry economy of this State;
(5) provide compensation to landowners in exchange for their relinquishment of the right to develop their private property; and
(6) leverage state, federal, local, and private agricultural easement purchase funds and protect the investment of taxpayers in agricultural conservation easements.
Section 46-53-30. As used in this chapter:
(1) 'Active farmer' means a landowner or operator of land who manages the daily production of agricultural or forest crops. The land that agricultural and forest crops are being grown upon must be under a conservation plan.
(2) 'Agricultural conservation easement' means an interest in land, less than fee simple, which interest represents the right to restrict or prevent the development or improvement of the land for any purpose other than agricultural production. The easement may be granted by the owner of the fee simple to any third party or to the State, to a county council, or to a unit of local government. It must be granted in perpetuity, except as provided for in Section 46-53-110(B)(2), as the equivalent of covenants running with the land. The exercise or failure to exercise any right granted by the easement shall not be deemed to be management or control of activities at the site for purposes of enforcement of the Federal Comprehensive Environmental Response Compensation Liability Act of 1980.
(3) 'Agricultural and forest crops' includes, but is not limited to:
(a) food, feed, forage, fiber, and oil seeds, field crops, fruit crops, and vegetable crops;
(b) agronomy, horticulture, mariculture, aquaculture, viticulture, and floriculture;
(c) livestock, poultry, and livestock and poultry products;
(d) specialties of beekeeping; and
(e) timber, wood, and other wood products derived from trees.
(4) 'Agricultural production' means the production of agricultural and forest crops for gain or profit through normal farming operations.
(5) 'Conservation district' means a soil and water conservation district as established in Section 48-9-30(1).
(6) 'Conservation plan' means a plan prepared by the Natural Resources Conservation Service of the United States Department of Agriculture (USDA), approved by the appropriate conservation district, and implemented by a landowner, describing best land management practices including an installation schedule and maintenance program, which when completely implemented, will improve and maintain soil, water, and related plant and animal resources of the land. The forest land portion of the conservation plan must be prepared by a registered forester and approved by the South Carolina Forestry Commission.
(7) 'County board' means a County Priority Agricultural Land Board.
(8) 'Department' means the South Carolina Department of Natural Resources.
(9) 'Director' means the Director of the South Carolina Department of Natural Resources.
(10) 'Eligible county' means a county whose purchase of agricultural conservation easement program has been approved by the State Priority Agricultural Land Board. For the purpose of annual allocations, an eligible county must have its agricultural conservation easement purchase program approved by the State Priority Agricultural Land Board at the time of allocation.
(11) 'Fallow' means inactive, barren, or unproductive but capable of being productive, agricultural and forest land.
(12) 'Farmland value' means the price as of the valuation date for property used only for agricultural production which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.
(13) 'Fiscal year' means fiscal year of the State.
(14) 'Forest farmer' means a landowner or a landowner's designee with a minimum of one hundred acres that is being actively managed for forest products.
(15) 'Fund' means the Priority Agricultural Land Trust Fund of South Carolina established by this chapter.
(16) 'Governing body' means the elected governing body of a local government unit.
(17) 'Immediate family member' means a brother, sister, son, daughter, stepson, stepdaughter, grandson, granddaughter, father, or mother of a landowner.
(18) 'Joint ownership' means joint tenancy in an agricultural conservation easement purchase as the interests of the parties appear.
(19) 'Landowner' means the record owner of the land, the authorized contract purchaser of the land, or the record owner of the development easement other than a county acquired pursuant this chapter.
(20) 'Market value' means the price as of the valuation date for the highest and best use of the property which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.
(21) 'Normal farming operation' means the customary and generally accepted practices and procedures farmers adopt, use, or engage in including, but not limited to, planting, cultivating, producing, harvesting, processing, packaging, storing, marketing for wholesale or retail distribution of their production, and managing waste. This includes on-site facilities needed to carry out these practices including, but not limited to, greenhouses, nurseries, barns, packing sheds, farm labor housing, stables, maintenance buildings, crop market facilities, and other building structures used in implementing best management practices of irrigation, air, water, and waste.
(22) 'Planning commission' means a municipal planning commission, a county planning commission, a joint city-county planning commission, or a consolidated government planning commission as defined and governed by the South Carolina Local Government Comprehensive Planning Enabling Act of 1994.
(23) 'Priority agricultural land area' means a unit of land used for agricultural production under the ownership of one or more persons and designated as such by the procedures set forth in this chapter.
(24) 'State board' means the State Priority Agricultural Land Board.
(25) 'Viable agricultural land' means land suitable for agricultural production which will continue to be economically feasible for such use if real estate taxes, farm use restrictions, and speculative activities are limited to levels approximating those in commercial agricultural areas not influenced by the proximity of urban and related nonagricultural development.
Section 46-53-40. (A) The Department of Natural Resources and the State Priority Agricultural Land Board shall administer pursuant to this section a program for the purchase of agricultural conservation easements. The department is responsible for the administration of this program.
(B) There is established within the department as a departmental board the State Priority Agricultural Land Board. The state board shall consist of the following:
(1) five voting ex-officio members: the director of the department or his designee, who shall serve as the board chairman; the Commissioner of Agriculture, or his designee; the Secretary of Commerce, or his designee; the Vice President of Natural Resources and Research at Clemson University or his designee; and the State Forester or his designee.
(2) five members appointed by the Governor, with the advice and consent of the Senate, on the recommendation of the board of the department. One member must be a current member of a county council who shall serve as voting ex-officio member; one member must be a person who is recognized as having significant knowledge in agricultural production fiscal and financial matters; one member must be a real estate agent licensed by the State of South Carolina; two must be conservation district commissioners, one of whom must be a forest farmer, who shall serve as voting ex-officio members. Initially, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and one member must be appointed for a term of two years. Thereafter, the terms of all members is for four years. The term of a person appointed to replace another member whose term has not expired is only the unexpired portion of that term. Members may be reappointed to successive terms;
(3) six members appointed by the Governor, with the advice and consent of the Senate, on the recommendation of the board of the department. The Department may seek the advice of a general farm organization. These members must be active farmers, each representing a different Congressional District, each residing within the State, and at least one of whom must be a forest farmer. Of the initial appointees, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and the other members must be appointed for a term of two years. Thereafter, the terms of all appointees is for four years. An appointment made to fill an unexpired term is only for the duration of the unexpired term. Members may be reappointed to successive terms.
Half of all members shall constitute a quorum for purposes of conducting meetings and official actions pursuant to authority given to the state board under this chapter.
It is not a conflict of interest for a voting ex-officio member to vote on matters pertaining to the county from which that member comes to the board.
(C) The state board shall:
(1) promulgate regulations pursuant to this chapter;
(2) adopt rules of procedure and bylaws governing the operations of the state board and the conduct of its meetings;
(3) allocate fund monies among eligible counties for the purchase of agricultural conservation easements, in accordance with provisions of subsection 46-53-110(F);
(4) establish and publish the standards, criteria, and requirements for the allocation of fund monies pursuant to subsection 46-53-110(F);
(5) establish and maintain a central repository of records which shall contain records of county programs for purchasing agricultural conservation easements and records of agricultural conservation easements purchased by counties;
(6) establish and publish the standards, criteria, and requirements necessary for state board approval of county programs for purchasing agricultural conservation easements;
(7) review, certify, and approve, or disapprove county programs for purchasing agricultural conservation easements;
(8) determine the maximum amount for its share for the purchase of an agricultural conservation easement;
(9) review and approve or disapprove for recertification each county program for the purchase of agricultural conservation easements;
(10) establish and publish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign priority to those applications to be submitted for consideration of federal funding;
(11) authorize the development of a publication defining all technical elements necessary for a complete application for purchase of an agricultural conservation easement. This publication shall include model formats of the specific components of applications. Publications must be distributed to every county with an approved program for purchasing agricultural conservation easements and must be available to all others upon request; and
(12) exercise other discretionary powers as may be necessary and appropriate for the exercise and performance of its duties, powers, and responsibilities under this chapter.
(D) The state board is authorized to take the actions necessary to qualify for federal guarantees and interest rate assistance for agricultural easement purchase loans under Chapter 2 of the Food Agriculture, Conservation, and Trade Act of 1990 or subsequent acts.
Section 46-53-50. (A) Upon the creation of a County Priority Agricultural Land Board, the county board must be composed of nine or eleven members appointed by a county council. The county council may seek the advice of a local general farm organization. County board members shall be appointed as follows: the number of active farmers shall constitute at least one less than a majority of the board, at least one of whom must be a forest farmer; one member must be a current conservation district commissioner of a county and shall serve in a voting ex-officio capacity; one member must be a current member of the governing body of a town located within a county and shall serve in a voting ex-officio capacity; one member must be a real estate agent licensed by the State of South Carolina; and the other members must be appointed at the pleasure of a county council. The county board shall elect annually one member of a board to serve as chairman of the board. The term ends for the member from the governing body of a town located within the county if the member vacates the elected office or at the expiration of the member's term of office in his elected position. The term of the initial farmer appointees is for three years; and the initial term of all other members is for one year. Thereafter, the term of all members is for three years.
Members shall serve without salary, but the county council may entitle each member to reimbursement for his actual and necessary expenses incurred in the performance of his official duties. The county board shall work with the planning commission, if one exists, to advise county council on matters relating to the proposed establishment, modification, and termination of a priority agricultural land area. In particular, the board shall render expert advice relating to the desirability of such action, including advice as to the nature of agricultural production within a proposed area and the relation of agricultural production in an area to the county as a whole.
(B) Each county board shall:
(1) adopt rules of procedure and bylaws governing the operation of the county board and the conduct of its meetings;
(2) adopt rules for the administration of a county program for the purchase of agricultural conservation easements in accordance with the provisions of this chapter;
(3) propose a priority agricultural land area or areas;
(4) adopt rules establishing the standards and procedures for purchase of agricultural conservation easements within priority agricultural land areas including, but not limited to, rules governing the submission of applications by landowners, establishing standards and procedures for the valuation of property eligible for purchase as an agricultural conservation easement, and establishing standards and procedures for the selection or purchase of agricultural conservation easements;
(5) execute agreements to purchase agricultural conservation easements in the name of the county with the advice and consent of the county council;
(6) purchase in the name of the county agricultural conservation easements within priority agricultural land areas with the advice and consent of the county council;
(7) use monies appropriated and approved by the county council from the county general fund to hire staff and administer the county program;
(8) use monies appropriated by the county council from the county general fund or the proceeds of indebtedness incurred by the county and approved by the county council for the purchase of agricultural conservation easements within priority agricultural land areas;
(9) purchase agricultural conservation easements separately or in combination with any funding source or sources, including federal, state, local, and private funds with the advice and consent of the county council;
(10) establish and maintain a repository of records of agricultural and forest lands which are subject to agricultural conservation easements purchased by the county and which are located within the county;
(11) record agricultural conservation easements purchased by the county in the office of the recorder of deeds of the county wherein agricultural conservation easements are located;
(12) submit to the state board for review the initial county program and any proposed revisions to approved county programs for purchasing agricultural conservation easements;
(13) establish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign to the applications to be submitted for consideration for federal funding; and
(14) conduct educational activities as are necessary; however, an educational workshop open to the public must be conducted prior to the establishment of a priority agriculture land area.
(C) Each county board shall submit to the state board an annual report which includes:
(1) location of priority agricultural land areas and agricultural conservation easements in the county;
(2) number of acres throughout the county which are located within priority agricultural land areas;
(3) number of acres throughout the county which are subject to agricultural conservation easements;
(4) number of agricultural conservation easements in the county;
(5) number of acres included within each agricultural conservation easement throughout the county;
(6) number and value of agricultural conservation easements purchased by the county, including the number and value of purchases made during the preceding fiscal year of the State;
(7) dollar value of the annual appropriation made by the county for the purchase of agricultural conservation easements;
(8) quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;
(9) nature, scope, and extent of development activity within areas where agricultural conservation easements have been purchased;
(10) nature and extent of conservation practices and best management practices including, but not limited to, soil erosion, sedimentation control, and nutrient management practices, which are practiced on agricultural and forest lands subject to agricultural conservation easements; and
(11) total number of recommendations filed by the county for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.
Section 46-53-60. (A)(1) A landowner, planning commission, county board, or municipal governing body may submit a request to its county council for the creation of a priority agricultural land area or areas within the county. A request must be in the format and manner prescribed by the county.
(2) When a request has been submitted for the creation of a priority agricultural land area or areas, a county council shall proceed in the following manners:
(a) Each county council shall establish a county board pursuant to Section 46-53-50 and forward a request or requests for the creation of a priority agricultural land area or areas to that county board; or
(b) Each county council shall provide notice as outlined in Section 46-53-60(B) and conduct a public hearing to determine if there is sufficient public interest to proceed with the declaration of a priority agricultural land area. If a county council determines there is sufficient public interest to proceed with the declaration of a priority agricultural land area, then the county council shall establish a county board pursuant to Section 46-53-50 and forward a request or requests for the creation of a priority agricultural land area or areas to that county board. If a county council, after holding a public hearing, determines there is insufficient public interest to proceed with the process of declaring a priority agricultural land area or areas, then the county council shall not establish a priority agricultural land area board; and if subsequent requests are submitted to a county council after a determination of insufficient public interest, the county council shall conduct a public hearing, but not before six months have elapsed since the previous public hearing, to determine if there is sufficient public interest to declare a priority agricultural land area or areas.
(3) A county priority agricultural land area board is the only entity authorized to consider, establish, declare, or otherwise put into effect a priority agricultural land area.
(4) A county board is responsible for providing notice and conducting a public hearing on priority agricultural land area or area requests and submitting a proposal for the creation of a priority agricultural land area or areas to its county council in the manner and form as may be prescribed by its county council including wherein a proposed area is situated and a description of a proposed area, including its boundaries. Each county board shall coordinate with a county planning commission, if one exists, with any request, modification, or proposal to create a priority agricultural land area or areas.
(5) If the land included in a proposal for a priority agricultural land area or areas is situated in more than one local government unit, then the proposal must be submitted and approval of the proposal must be sought from the governing body of each local government unit affected. The governing bodies may cooperate in the review of a proposed priority agricultural land area or areas and may provide joint public notices and a joint public hearing on a proposed priority agricultural land area or areas. A rejection by a governing body of a local government unit shall exclude that portion of a proposal which is situated within the local government unit. However, the rejection does not preclude the approval of the remaining portion of a proposal as a priority agricultural land area by the county council of the other affected local government units, if the approved portion meets all other requirements imposed under this chapter for a priority agricultural land area.
(B) Notice of a completed proposal must be provided by a county board by publishing a notice in a newspaper having general circulation within each proposed priority agricultural land area and by posting such notice in five conspicuous places within, adjacent to, or near each proposed area.
The notice shall contain a:
(1) statement that a request for the creation of a priority agricultural land area or areas has been filed with the county council pursuant to this chapter;
(2) statement that a proposal for a priority agricultural land area ore areas will be on file open to public inspection in the office of the local government unit;
(3) statement that any local government unit encompassing or adjacent to a proposed area, or any landowner who owns land proposed to be included within a proposed area or any landowner with lands adjacent or near to a proposed area who wishes these lands to be included or not included may propose modifications of a proposed area in the form and manner as may be prescribed by the county council;
(4) statement that a request and proposed modifications will be submitted to the county planning commission and the county board, and that after they are submitted, a public hearing will be held on the request, proposed modifications, and recommendations of the county planning commission and county board; and
(5) map identifying each proposed priority agricultural land area.
(C) A county board shall receive all requests for modifications of priority agricultural land area proposals which may be submitted by a planning commission, conservation district, county board, landowner, or local governing body.
(D)(1) For a county with a county planning commission:
(a) The county board shall refer requests and proposed modifications to its county planning commission.
(b) The county planning commission, together with its county board, shall review all requests and proposed modifications. The county planning commission shall report to its county council the potential effect of each request and proposed modifications upon the county's planning policies and objectives, including a request's compliance with the county's comprehensive plan.
(2) For a county without a county planning commission, the county board shall review all request and any proposed modifications and report to the county council its recommendations concerning any request and proposed modifications.
Section 46-53-70. (A) The standards, criteria, and requirements established by the state board for state board approval of county programs for purchase of agricultural conservation easements shall include, but are not limited to, the extent to which a county considers and addresses the following when establishing a priority agricultural land area or areas:
(1) landowner support for designation or inclusion;
(2) percentage of soils that are suitable for agricultural production;
(3) percentage of soils classified as prime, unique, or of statewide importance;
(4) amount of pressure to convert land to nonagricultural production purposes;
(5) sufficient size to ensure viability of agricultural production;
(6) existing agricultural production infrastructure investments;
(7) compatibility with comprehensive and zoning plans; and
(8) other relative, economic, or unique factors.
(B) These resource materials must be used in evaluating a priority agricultural land area:
(1) USDA Natural Resources Conservation Service soil surveys and soil information; and
(2) Other published data, charts, and relevant information recognized by the department and the USDA Natural Resources Conservation Service.
Section 46-53-80. Upon submission of a report from a county planning commission or, if a county planning commission does not exist, then by a county board, the county board shall hold a public hearing relative to a proposed priority agricultural land area or areas. The county board shall publish a notice of intent to create a priority agricultural land area or areas as specified in Section 46-53-60(B).
Section 46-53-90. (A) A county council, upon completion of the procedures and considerations prescribed in Sections 46-53-60, 46-53-70, and 46-53-80, may adopt a proposal or any modification of a proposal the county council deems appropriate, including the inclusion, to the extent feasible, of adjacent viable agricultural and forest lands and the exclusion, to the extent feasible, of nonviable agricultural and forest lands and nonagricultural and forest lands. The existence of utility facilities on a proposed area does not prevent the adoption of the area as a priority agricultural land area and the rights of utilities with respect to the existing facilities must not be disturbed or affected by the adoption. The county council shall act to adopt or reject each proposal and any modification to each proposal.
(B) Within ten days of a county council's decision to reject or modify a proposal, the county council shall submit to its county board a written decision stating why each proposal was not adopted or was modified. The written decision shall include a finding of fact, review of the evaluation criteria prescribed in Section 46-53-70, and a discussion of reasons for rejection or modification of a proposal.
(C) A priority agricultural land area becomes effective upon the adoption of a proposal or its modification by a county council. If a proposal has included land situated in more than one local government unit, the priority agricultural land area or areas only become effective upon adoption by the local government unit or units of that portion of a proposal or proposed modifications as will meet the requirements of a priority agricultural land area provided in this chapter. Subsequent adoption of the remaining portion immediately establishes that portion as a priority agricultural land area.
(D) After the creation of a priority agricultural land area, a description and map of the area must be on file and maintained by the county board and must be made available to the public.
(E) The addition of land to a priority agricultural land area may occur at any time during the period provided for in Section 46-53-60.
(F) Land situated in an existing priority agricultural land area must be removed from that area upon a request by a landowner for it to be removed. Each county board may designate the form of such a request.
Section 46-53-100. (A) After the establishment of a priority agricultural land area by a county council, the same county council shall authorize its county board to consider landowners' applications for the purchase of agricultural conservation easements from landowners whose land is within the priority agricultural land area.
(B) To qualify under this chapter, an agricultural conservation easement is subject to these terms, conditions, restrictions, and limitations:
(1) The term of an agricultural conservation easement is perpetual except as provided for in item (2).
(2) Unless authorized in accordance with item (5), an agricultural conservation easement may not be extinguished, leased, encumbered, or restricted in whole or in part for a period of thirty years beginning on the date of purchase of the easement.
(3) Unless authorized in accordance with item (5), if the land subject to an agricultural conservation easement is no longer viable agricultural land, a county, subject to the approval of its county board and its county council, may sell, convey, extinguish, lease, encumber, or restrict an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. If state funds were used to purchase an agricultural conservation easement, the state board must also give its approval that the land under easement is no longer viable prior to the county's selling, conveying, extinguishing, leasing, encumbering, or restricting an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. The purchase price must be payable to the county. Any payment received by a county pursuant to this item must be paid into a county account that may be used only for the purpose of purchasing agricultural conservation easements.
(4) Instruments and documents for the purchase, sale, and conveyance of agricultural conservation easements must be approved by a county board prior to execution and delivery. Proper releases from mortgage holders and lienholders must be obtained and executed to ensure that all agricultural conservation easements are purchased free and clear of all encumbrances.
(5) Whenever a public entity, authority, or political subdivision exercises the power of eminent domain and condemns land subject to an agricultural conservation easement, the condemner shall provide just compensation to the owner of the land in fee and to the owner of the easement as follows:
(a) The owner of the land in fee must be paid the full value which would have been payable to the owner but for the existence of an agricultural conservation easement less the value of an agricultural conservation easement at the time of condemnation.
(b) The owner of the easement must be paid the value of the easement at the time of condemnation.
(6) An agricultural conservation easement does not prevent:
(a) The granting of rights-of-way by the owner of the subject land in and through the land for the installation of, transportation of, or use of water, sewage, electric, telephone, telecommunications, gas, oil, or oil products lines.
(b) Construction and use of structures on the subject land necessary for agricultural production.
(c) Construction and use of structures on the subject land for a landowner's principal residence or for the purpose of providing necessary housing for seasonal or full-time employees.
(d) Customary part-time or off-season minor or rural enterprises and activities which are provided for in the County Priority Agricultural Land program approved by the state board pursuant to Section 46-53-40.
(7) Land subject to an agricultural conservation easement may not be subdivided for any purpose which may harm the viability of the agricultural or forest land for agricultural production. Land may be subdivided prior to the granting of an agricultural conservation easement if subdividing will not harm the viability for agricultural production of the land subject to the easement.
(8) Nothing in this chapter prohibits a member of the state board or county board or his or her family from selling an agricultural conservation easement under this program if all decisions made regarding easement purchases are subject to Title 8, Chapter 13.
(9) Land subject to an agricultural conservation easement must be covered by a conservation plan approved by a Conservation District.
(C) The standards, criteria, and requirements established by the state board for state board approval of a county program for purchasing agricultural conservation easements shall include, but are not limited to, the extent to which a county considers:
(1) quality of the agricultural and forest lands subject to a proposed easement, including soils classified as prime, unique, or of statewide importance;
(2) likelihood that the agricultural and forest lands would be converted to nonagricultural production use unless subject to an agricultural conservation easement; areas in the county devoted primarily to agricultural production where development is occurring or is likely to occur in the next twenty years should be identified. For purposes of considering the likelihood of conversion, the existence of a zoning classification of the land is not relevant, but the market for nonagricultural production and forest use or development of agricultural and forest lands is relevant;
(3) sufficient size to ensure viability of agricultural production or to preserve sensitive environmental areas;
(4) proximity of the agricultural and forest lands subject to proposed easements to other agricultural and forest lands in a county which are subject to agricultural conservation easements;
(5) the stewardship of the land and use of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management;
(6) ancillary benefits including, but not limited to, enhancement of wildlife habitat, air and water quality, groundwater recharge, preservation of historic or other cultural features and preservation of scenic qualities; and
(7) fair, equitable, objective and nondiscriminatory procedures for determining purchase priorities.
(D) A county board may select from either of these methods of valuation:
(1) Value may be determined by a numerical point system established by the county board. If a seller disagrees with a county board valuation, a seller has the right to obtain an independent state-certified general real estate appraiser. If a landowner obtains an independent appraiser, the value must be calculated according to the average between the county board's numerical point system and a landowner's appraisal. A landowner's independent appraiser shall establish market value and farm land value in accordance with this chapter.
(2) Value may be established by an appraisal process where a county board shall retain its county assessor to determine market value and farmland value. If a seller disagrees with the appraisal made by the county assessor, a seller has the right to select and retain a separate independent state-certified general real estate appraiser within thirty days of receipt of the appraisal of the county assessor to determine market value and farmland value. The county board shall establish the agricultural value and the nonagricultural value of the property subject to an agricultural conservation easement. The state board may provide for a periodic review by a state-certified general real estate appraiser of appraisals submitted by counties in order to assure that the appraisals were performed in accordance with the standards of appraisal practice.
(a) The agricultural value shall equal the sum of:
(i) the farmland value determined by a seller's appraiser; and
(ii) one-half of the difference between the farmland value determined by the county assessor and the farmland value determined by a seller's appraiser if the farmland value determined by the county assessor exceeds the farmland value determined by a seller's appraiser.
(b) The nonagricultural value shall equal the sum of:
(i) the market value determined by the county assessor; and
(ii) one-half of the difference between the market value determined by a seller's appraiser and the market value determined by the county assessor if the market value determined by a seller's appraiser exceeds the market value determined by the county assessor.
(3) The entire acreage of the agricultural and forest land must be included in the determination of the value of an agricultural conservation easement less the value of any acreage which was subdivided prior to the granting of the easement. A county assessor or a seller's appraiser shall take into account the potential increase in the value of the subdivided acreage because of the placement of the easement on the remaining agricultural and forest land.
(E) The price paid for purchase of an agricultural conservation easement in perpetuity may not exceed the difference between the nonagricultural value and the agricultural value determined pursuant to subsection (D) of this section at the time of purchase, unless the difference is less than a county board's original appraised value in which case the county board's original easement value may be offered. The purchase price may be paid in a lump sum, in installments over a period of years, or in any other lawful manner of payment. If payment is to be made in installments or another deferred method, a person selling an easement may receive, in addition to the selling price, interest in an amount or at a rate set forth in the agreement of purchase, and final payment of all money must be made within, and no later than, five years from the date an agricultural conservation easement purchase agreement was fully executed. The county may provide for payments on an installment or other deferred basis and for interest payments by investing its allocation of state money for purchases approved under subsection (F) of this section in securities deposited into an irrevocable escrow account or in another manner provided by law.
(F) State funds to be used to support county programs shall be disbursed as follows:
(1) The state board shall disburse thirty-three percent of the total amount of state funds evenly among those counties which have eligible programs. If these funds are not expended by a county within one year of their disbursal, the county must remit the remainder of its allocation to the state board which shall disburse it to the remaining eligible counties on a competitive basis using guidelines established by the state board.
(2) The remaining sixty-seven percent of the total amount of state funds must be disbursed among eligible counties on a competitive basis using guidelines established by the state board.
Section 46-53-110. (A) The Priority Agricultural Land Trust Fund of South Carolina is created for the purpose of receiving gifts, grants, contributions, and other proceeds for the purchase of conservation easements in the State. The State Priority Agricultural Land Board is vested with full authority over the administration of the funds deposited in the fund. The State Treasurer is the custodian of the fund and shall invest its assets in an interest-bearing account pursuant to South Carolina law.
(B) The Priority Agricultural Land Trust Fund may receive appropriations of state general funds, federal funds, donations, gifts, bond issue receipts, securities, and other monetary instruments of value.
(C) The income received and accruing from the fund must be spent only on the purchase of agricultural conservation easements.
(D) The proceeds from this fund may be carried forward from year to year and do not revert to the general fund of the State.
Section 46-53-120. (A) In conjunction with a county board, any affected municipality, and a county planning commission, if one exists, a county council shall review the status of all priority agricultural land areas created under Section 46-53-90 in accordance with the time frame for the program review section in the South Carolina Local Government Comprehensive Planning Enabling Act of 1994 for the purpose of continuing, modifying, or terminating a priority agricultural area.
(B) If a municipality annexes land which includes any part of a priority agricultural land area, that portion of the priority agricultural land area that has been annexed may not be terminated except upon a majority vote of the governing body of the municipality.
Section 46-53-130. (A) A municipality or political subdivision within which a priority agricultural land area or areas are created shall encourage the continuity, development, and viability of agricultural production within a priority agricultural land area by not enacting local laws or ordinances which would unreasonably restrict agricultural production within a priority agricultural land area in contravention of the purposes of this chapter unless the restrictions or ordinances bear a direct relationship to the public health or safety.
(B) A municipal or political subdivision law or ordinance defining or prohibiting a public nuisance shall exclude from the definition of a nuisance any agricultural production activity within a priority agricultural land area as permitted by this chapter if the agricultural activity or operation does not bear a direct relationship to the public health and safety.
Section 46-53-140. All state agencies shall encourage the maintenance of viable agricultural production in priority agricultural land areas.
Section 46-53-150. No political subdivision, authority, public utility, or other body having or exercising powers of eminent domain shall condemn any land within a priority agricultural land area for any purpose without prior consultation with the county board of the county in which the condemnation is to take place.
Section 46-53-160. The State and political subdivisions of the State may appropriate and expend tax revenues for the public purposes provided by this chapter and, consistent with the requirements of Article X, Sections 13 and 14 of the Constitution of this State, may incur bonded indebtedness for the public purposes of this chapter.
Section 46-53-170. The state board shall submit to the General Assembly an annual report based on each eligible county. The report shall include, but is not limited to, the:
(1) location of priority agricultural land areas and agricultural conservation easements in the State;
(2) number of acres throughout the State which are located within priority agricultural land areas;
(3) number of acres throughout the State which are subject to agricultural conservation easements;
(4) number of agricultural conservation easements in the State.
(5) number and value of agricultural conservation easements purchased by the counties including the number and value of purchases made during the preceding fiscal year of the State;
(6) identity of counties participating in the state program for purchasing agricultural conservation easements;
(7) dollar value of the annual appropriation made by counties for the purchase of agricultural conservation easements;
(8) quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;
(9) nature, scope, and extent of development activity within the area where agricultural conservation easements have been purchased;
(10) nature and extent of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management practices, which are practiced on farmlands subject to agricultural conservation easements; and
(11) total number of recommendations filed by counties for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.
Section 46-53-180. The department shall promulgate regulations necessary to promote the efficient, uniform, and statewide administration of this chapter."
SECTION 2. This act takes effect July 1, 1998.
Amend title to conform.
Senator LEVENTIS 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 with notice of general amendments.
The following Bills, having been read the second time, were ordered placed on the third reading Calendar:
H. 5002 (Word version) -- Rep. Vaughn: A BILL TO AMEND SECTION 7-7-280, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE VOTING PRECINCTS AND POLLING PLACES IN GREENVILLE COUNTY, SO AS TO RENAME AND CORRECT ERRORS IN THE NAMES OF CERTAIN POLLING PLACES.
On motion of Senator J. VERNE SMITH, H. 5002 was ordered to receive a third reading on Thursday, April 30, 1998.
H. 5052 (Word version) -- Rep. Bauer: A BILL TO AMEND ACT 329 OF 1969, AS AMENDED, RELATING TO THE IRMO-CHAPIN RECREATION DISTRICT IN LEXINGTON COUNTY, SO AS TO AUTHORIZE THE DISTRICT TO COMMISSION AND TRAIN QUALIFIED ENFORCEMENT OFFICERS.
On motion of Senator WILSON, H. 5052 was ordered to receive a third reading on Thursday, April 30, 1998.
S. 1179 (Word version) -- Senator Drummond: A BILL TO AMEND SECTION 34-1-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AUTHORITY OF THE COMMISSIONER OF BANKING TO EXAMINE CERTAIN INSTITUTIONS SO AS TO AUTHORIZE EXAMINATION OF THE CAROLINA CAPITAL INVESTMENT CORPORATION.
S. 1173 (Word version) -- Senator Land: A BILL TO AMEND SECTIONS 57-7-210 AND 57-7-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OBSTRUCTIONS ON PUBLIC HIGHWAYS, SO AS TO ALLOW THE DEPARTMENT OF TRANSPORTATION TO APPROVE OBSTRUCTIONS ERECTED BY LOCAL GOVERNMENTS, INCLUDING SCHOOL DISTRICTS, IF THE OBSTRUCTION IS INTENDED TO PROTECT PROPERTY FROM VANDALISM.
S. 1190 (Word version) -- Senator Leatherman: A BILL TO AMEND SECTION 7-7-260, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN FLORENCE COUNTY, SO AS TO REDESIGNATE THESE PRECINCTS AND DESIGNATE A MAP NUMBER ON WHICH THE LINES OF THESE PRECINCTS ARE DELINEATED AND TO REPEAL SECTION 7-7-265, RELATING TO THE DESIGNATION OF VOTING PLACES IN FLORENCE COUNTY.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senator LEATHERMAN proposed the following amendment (PT\1910DW.98), which was adopted:
Amend the bill, as and if amended, SECTION 1, page 13, line 33, by striking /Friendfield-Mill Branch/ and inserting /Friendfield/.
Amend the bill further, SECTION 1, page 14, by inserting after line 4 /Mill Branch/.
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.
On motion of Senator LEATHERMAN, S. 1190 was ordered to receive a third reading on Thursday, April 30, 1998.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
The Committee on Labor, Commerce and Industry proposed the following amendment (844R002.JVS), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:
/SECTION 1. Section 41-43-250 of the 1976 Code is amended to read:
"Section 41-43-250. (A) Any information submitted to or compiled by the authority, including any analysis or review conducted by the authority or any third party in connection with the identity, background, finances, marketing plans, trade secrets, or any other commercially sensitive information of persons, firms, associations, partnerships, agencies, corporations, or other entities, is confidential, except to the extent that the person or entity consents to disclosure until final approval of the loan or grant, except that information exempt from disclosure pursuant to Section 30-4-40 must remain confidential and exempt from disclosure. When the applicant submits information to the authority, the applicant shall clearly mark the information to be protected as 'confidential'. Upon request, the authority must release or make available for inspection all information or material relating to the loan or grant as provided in subsection (B). The authority may impose a reasonable fee for the cost of copying documents and, if the requestor wishes to inspect any material, the authority may impose reasonable restrictions to minimize disruptions to normal office operations. For purposes of this section, the definition of 'authority' includes any profit or nonprofit entity established by the authority.
(B) The authority must provide the Senate Finance Committee or the House Ways and Means Committee with any material it may request regarding a loan or grant. The respective committees shall determine the procedure by which a request is to be made. If the material being requested is exempt from public disclosure pursuant to Section 30-4-40, the authority must provide the protected material conspicuously marked as confidential. A person, excluding the applicant and including a
member of the General Assembly, staff of the authority or staff of the General Assembly, who knowingly discloses the contents of a document identified as confidential to a third party, is, upon conviction, guilty of a criminal offense and is subject to the penalties provided in Section 8-13-725(B)(2). For purposes of this subsection, a 'third party' is defined as anyone other than a member of the General Assembly, staff of the authority or staff of the General Assembly.
(C) Notwithstanding any other provision of law to the contrary, a loan initially approved by the authority or a loan to be administered by the authority is not valid without the final approval of the General Assembly if:
(1) default by the borrower would have the effect or potential effect of reducing the availability of future federal grants or loan funds to political subdivisions of the State that are not a party to the loan; or
(2) default would cause the repayment of principal or interest from state funds, from federal funds, or from other funds as defined in Section 2-65-15.
(D) The loan must be approved as submitted to the General Assembly and final approval required by this section is only effective upon the adoption of a bill or a joint resolution."
SECTION 2. This act takes effect upon approval by the Governor./
Amend title to conform.
Senator LEATHERMAN explained the committee amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the second time, passed and ordered to a third reading.
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 (JUD1074.001), which was adopted:
Amend the bill, as and if amended, page 1, line 37, in Section 61-4-735(B), as contained in SECTION 1, after the word /winery,/ by inserting /importer, or wholesaler of wine,/.
Amend the bill, as and if amended, page 2, beginning on line 21, in Section 61-4-735(D), as contained in SECTION 1, by striking lines 21 on page 2 through line 2 on page 3 and inserting therein the following:
/(D) A producer, winery, vintner, and importer of wine are declared to be in business on one tier, a wholesaler on another tier, and a retailer on another tier. For the purpose of this section, a manufacturer or producer of wine is declared to be a tier one business, a wholesaler or an importer owned solely by a wholesaler is declared to be a tier two business, and a retailer is declared to be a tier three business. A person or entity in the wine business on one tier or a person acting directly or indirectly on his behalf, may not have ownership or financial interest in a wine business operation on another tier. This limitation does not apply to the interest held on July 1, 1993, by the holder of a wholesale permit in a business operated by the holder of a retail permit at premises other than where the wholesale business is operated. For purposes of this subsection, ownership or financial interest does not include the ownership of less than one percent of the stock in a corporation with a class of voting shares registered with the Securities and Exchange Commission or other federal agency under Section 12 of the Securities and Exchange Act of 1934, as amended, or a consulting agreement under which the consultant has no control over business decisions and whose compensation is unrelated to the profits of the business. Notwithstanding this prohibition or the prohibition contained in Section 61-4-940(D), a manufacturer or importer of beer or wine may own in whole or in part a business that holds an on- premises retail beer and wine permit provided that:/
Amend title to conform.
Senator COURTNEY 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.
On motion of Senator SALEEBY, with unanimous consent, S. 1074 was ordered to receive a third reading on Thursday, April 30, 1998.
S. 1212 (Word version) -- Senators Saleeby and McConnell: 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.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senators SALEEBY, McCONNELL, MATTHEWS, COURTNEY, PATTERSON, REESE, HAYES, JACKSON and PASSAILAIGUE proposed the following amendment (1212I001.EES), which was adopted:
Amend the bill, as and if amended, by striking all existing language and inserting the following:
/SECTION 1. The purpose of Section 38-9-200 of the 1976 Code is to protect the interests of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The General Assembly declares that its intent in enacting this code section is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of this state interest, the General Assembly provides a mandate that upon the insolvency of a non-U.S. insurer or reinsurer that provides security to fund its United States obligations in accordance with this code section, the assets representing the security must be maintained in the United States and claims must be filed with and valued by the state insurance regulator with regulatory oversight, and the assets shall be distributed in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. The General Assembly declares that the matters contained in this code section are fundamental to the business of insurance in accordance with 15 U.S.C. Sections 1011 and 1012.
SECTION 2. Section 38-9-200 of the 1976 Code, as amended by Act 370 of 1994, is further amended to read:
"Section 38-9-200. (A) Credit for reinsurance must be allowed a domestic ceding insurer as an asset or a deduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of subsection (B), (C), (D), (E), or (F). If meeting the requirements of subsection (D) or (E), the requirements of subsection (G) must be met also.
(B) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this State or approved as a reinsurer by the director or designee provided by Section 38-5-60.
(C) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this State. An accredited reinsurer is one which:
(1) files with the director or designee evidence of its submission to this state's jurisdiction;
(2) submits to this state's authority to examine its books and records;
(3) is licensed to transact insurance or reinsurance in at least one state, or for a United States branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance, in at least one state;
(4) pays an initial submission fee of four hundred dollars and annually pays a four hundred dollar fee by March first;
(5) files annually with the director or designee a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement and:
(a) maintains a surplus as regards policyholders of not less than twenty million dollars and whose accreditation has not been denied by the director or designee within ninety days of its submission; or
(b) maintains a surplus as regards policyholders of less than twenty million dollars and whose accreditation has been approved by the director or designee. No credit is allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the director or designee after notice and hearing.
(D) Credit must be allowed when the reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or for a United States branch of an alien assuming insurer is entered through, a state which employs standards regarding credit for reinsurance substantially similar to those applicable under this statute, and the assuming insurer or United States branch of an alien assuming insurer:
(1) maintains a surplus as regards policyholders of not less than twenty million dollars;
(2) submits to the authority of this State to examine its books and records. However, the requirement of item (1) does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.
(E)
(1) Credit must be allowed when the reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution, defined in Section 38-9-220(B), for the payment of the valid claims of its United States policyholders and ceding insurers and their assigns and successors in interest. The assuming insurer shall report annually to the director or his designee information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers to enable the director or his designee to determine the sufficiency of the trust fund. For a single assuming insurer, the trust must consist of a trusteed account representing the assuming insurer's liabilities attributable to business written in the United States and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars. For a group including incorporated and individual unincorporated underwriters, the trust must consist of a trusteed account representing the group's liabilities attributable to business written in the United States and, in addition, the group shall maintain a trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States ceding insurers of a member of the group. The incorporated members of the group must not be engaged in any business other than underwriting as a member of the group and are subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members. The group shall make available to the director or his designee an annual certification of the solvency of each underwriter by the group's domiciliary regulator and its independent public accountants.
(2) For a group of incorporated insurers under common administration which complies with the filing requirements contained in item (1), has transacted continuously an insurance business outside the United States for at least three years immediately before making application for accreditation, submits to this state's authority to examine its books and records and bears the expense of the examination, and has aggregate policyholders' surplus of ten billion dollars, the trust must be in an amount equal to the group's several liabilities attributable to business ceded by United States ceding insurers to a member of the group pursuant to reinsurance contracts issued in the name of the group. The group also shall maintain a joint trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States ceding insurers of a member of the group as additional security for liabilities. Each member of the group shall make available to the director or designee an annual certification of the member's solvency by the member's domiciliary regulator and its independent public accountant.
(3) The trust must be established in a form approved by the director or designee. The trust instrument must provide that contested claims must be valid and enforceable upon the final order of a court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its United States policyholders and ceding insurers and their assigns and successors in interest. The trust and the assuming insurer are subject to examination determined by the director or designee. The trust must remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust.
(4) No later than February twenty-eighth each year the trustees of the trust shall report to the director or designee in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust may not expire before the next following December thirty-first.
(F) Credit must be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of subsection (B), (C), (D), or (E) but only with respect to the insurance of risks located in jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.
(G) If the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State, the credit permitted by subsections (D) and (E) must not be allowed unless the assuming insurer agrees in the reinsurance agreements:
(1) that when the assuming insurer fails to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of a court of competent jurisdiction in a state of the United States, comply with all requirements necessary to give the court jurisdiction, and abide by the final decision of the court or of an appellate court in an appeal;
(2) to designate the director or designee or a designated attorney as its true and lawful attorney upon whom may be served lawful process in an action, a suit, or a proceeding instituted by or on behalf of the ceding company. This subsection does not conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes if an obligation is created in the agreement.
(H) The director may promulgate regulations to implement the provisions of this section and Section 38-9-210.
(A) Credit for reinsurance shall be allowed a domestic ceding insurer as an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of subsection (B), (C), (D), (E), or (F). Credit only shall be allowed under subsections (B), (C), or (D) of this section as respects cessions of those kinds or classes of business which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a United States branch of a alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance. If meeting the requirements of subsection (D) or (E), the requirements of subsection (G) also shall be met.
(B) Credit shall be allowed when the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this State or approved as a reinsurer by the director or designee provided by Section 38-5-60.
(C) Credit shall be allowed when the reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this State. An accredited reinsurer is one which:
(1) files with the director or designee evidence of its submission to this state's jurisdiction;
(2) submits to this state's authority to examine its books and records;
(3) is licensed to transact insurance or reinsurance in at least one state, or for a United States branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance, in at least one state;
(4) pays an initial submission fee of four hundred dollars and annually pays a four hundred dollar fee by March first;
(5) files annually with the director or designee a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement and:
(a) maintains a surplus as regards policyholders of not less than twenty million dollars and whose accreditation has not been denied by the director or designee within ninety days of its submission; or
(b) maintains a surplus as regards policyholders of less than twenty million dollars and whose accreditation has been approved by the director or designee. The accreditation of an assuming insurer with a surplus as regards policyholders of less than $20,000,000 which is licensed in its state of domicile (or, in the case of an alien assuming insurer, in the state through which it is entered and in which it is licensed) to write life, health, annuity insurance, or any combination of those kinds of insurance, shall be approved by the director, and if the assuming insurer, among other criteria:
(i) maintains a surplus as regards policyholders in an amount in excess of the amounts required by Section 38-9-10 and Section 38-9-20;
(ii) maintains total adjusted capital of not less than four times the risk-based capital authorized control level (determined as of its last filed annual statement); and
(iii) satisfies the standard for exemption from asset adequacy analysis contained in South Carolina Regulation 69-52.
No credit is allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the director or designee after notice and hearing.
(D)(1) Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is domiciled in, or in the case of a U.S. branch of an alien assuming insurer is entered through, a state that employs standards regarding credit for reinsurance substantially similar to those applicable under this statute and the assuming insurer or U.S. branch of an alien assuming insurer:
(a) maintains a surplus as regards policyholders in an amount not less than $20,000,000 and
(b) submits to the authority of this State to examine its books and records.
(2) The requirement of Section (D)(1)(a) does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system.
(E)(1) Credit shall be allowed when the reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution, defined in Section 38-9-220(B), for the payment of the valid claims of its United States ceding insurers and their assigns and successors in interest. To enable the director to determine the sufficiency of the trust fund, the assuming insurer shall report annually to the director or his designee information substantially the same as that required to be reported on the National Association of Insurance Commissioners annual statement form by licensed insurers. The assuming insurer shall submit to examination of its books and records by the director and bear the expense of examination.
(2)(a) Credit for reinsurance shall not be granted under this subsection (E) unless the form of the trust and any amendments to the trust have been approved by:
(i) the insurance commissioner of the state where the trust is domiciled; or
(ii) the insurance commissioner of another state who, pursuant to the terms of the trust instrument, has accepted principal regulatory oversight of the trust.
(b) The form of the trust and any trust amendments also shall be filed with the commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument shall provide that contested claims shall be valid and enforceable upon the final order of a court of competent jurisdiction in the United States. The trust must vest legal title to assets in the trustees of the trust for the benefit of the assuming insurers' United States ceding insurers and their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the director or his designee.
(c) The trust shall remain in effect for as long as the assuming insurer has outstanding obligations due under the reinsurance agreements subject to the trust. No later than February twenty-eighth of each year the trustees of the trust shall report to the director or designee in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust may not expire before the next following December thirty-first.
(3) The following requirements apply to the following categories of assuming insurers:
(a) The trust fund for a single assuming insurer consists 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 in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars.
(b)(i) In the case of a group including incorporated and individual unincorporated underwriters:
(A) For reinsurance ceded under reinsurance agreements with an inception, amendment, or renewal date on or after August 1, 1995, the trust consists of a trusteed account in an amount not less than the group's several liabilities attributable to business ceded by United States domiciled ceding insurers to any member of the group;
(B) For reinsurance ceded under reinsurance agreements with an inception date on or before July 31, 1995, and not amended or renewed after that date, notwithstanding the other provisions of this section, the trust consists of a trusteed account in an amount not less than the group's several insurance and reinsurance liabilities attributable to business written in the United States; and
(C) In addition to these trusts, the group shall maintain in trust a trusteed surplus of which one hundred million dollars is held jointly for the benefit of the United States domiciled ceding insurers of any member of the group for all years of account; and
(ii) The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of regulation and solvency control by the group's domiciliary regulator as are the unincorporated members.
(iii) The group, within ninety days after its financial statements are due to be filed with the group's domiciliary regulator, shall provide to the director an annual certification by the group's domiciliary regulator of the solvency of each underwriter member or if a certification is unavailable, financial statements prepared by independent public accountants of each underwriter member of the group.
(c) In the case of a group of incorporated underwriters under common administration, the group shall:
(i) have continuously transacted an insurance business outside the United States for at least three years immediately before making application for accreditation;
(ii) maintain aggregate policyholders' surplus of at least ten billion dollars;
(iii) maintain a trust fund in an amount not less than the group's several liabilities attributable to business ceded by United States domiciled ceding insurers to any member of the group pursuant to reinsurance contracts issued in the name of the group;
(iv) in addition, maintain a joint trusteed surplus of which one hundred million dollars must be held jointly for the benefit of United States domiciled ceding insurers of any member of the group as additional security for these liabilities; and
(v) within ninety days after its financial statements are due to be filed with the group's domiciliary regulator, make available to the director an annual certification of each underwriter member's solvency by the member's domiciliary regulator and financial statements of each underwriter member of the group prepared by its independent public accountant.
(F) Credit shall be allowed when the reinsurance is ceded to an assuming insurer not meeting the requirements of subsections (B), (C), (D), or (E) but only as to the insurance of risks located in jurisdictions where the reinsurance is required by applicable law or regulation of that jurisdiction.
(G) If the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State, the credit permitted by subsections (D) and (E) shall not be allowed unless the assuming insurer agrees in the reinsurance agreements:
(1) that when the assuming insurer fails to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of a court of competent jurisdiction in a state of the United States, comply with all requirements necessary to give the court jurisdiction, and abide by the final decision of the court or of an appellate court in an appeal;
(2) to designate the director or designee or a designated attorney as its true and lawful attorney upon whom may be served lawful process in an action, a suit, or a proceeding instituted by or on behalf of the ceding company. This subsection does not conflict with or override the obligation of the parties to a reinsurance agreement to arbitrate their disputes if an obligation is created in the agreement.
(H) If the assuming insurer does not meet the requirements of subsections (B), (C), or (D), the credit permitted by subsection (E) shall not be allowed unless the assuming insurer agrees in the trust agreements to the following conditions:
(1) Notwithstanding any other provisions in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subsection (E)(3), or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile, the trustee shall comply with an order of the commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the commissioner with regulatory oversight all of the assets of the trust fund.
(2) The assets shall be distributed by and claims shall be filed with and valued by the commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies.
(3) If the commissioner with regulatory oversight determines that the assets of the trust fund or any part of them are not necessary to satisfy the claims of the United States ceding insurers of the grantor of the trust, the assets or part of them shall be returned by the commissioner with regulatory oversight to the trustee for distribution in accordance with the trust agreement.
(4) The grantor shall waive any right otherwise available to it under United States law that is inconsistent with this provision.
(I) The director may promulgate regulations to implement the provisions of this section and Section 38-9-210."
SECTION 3. Section 38-9-210 of the 1976 Code, as amended by Section 535 of Act 181 of 1993, is further amended to read:
"Section 38-9-210. A An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 38-9-200 must be allowed in an amount not exceeding the liabilities carried by the ceding insurer. The reduction must be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations, if the security is held in the United States subject to withdrawal solely by and under the exclusive control of the ceding insurer or, for a trust, held in a qualified United States financial institution, defined in Section 38-9-220(B). This security may be in the form of:
(1) cash;
(2) securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualifying as admitted assets under Section 38-11-100;
(3) clean, irrevocable, unconditional letters of credit issued or confirmed by a qualified United States financial institution defined in Section 38-9-220(A) no later than December thirty-first of the year for which filing is being made and in the possession of, or in trust for, the ceding company on or before the filing date of its annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation, notwithstanding the issuing or confirming institution's subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification, or amendment, whichever first occurs; or
(4) other form of security acceptable to the director or designee."
SECTION 4. This act takes effect upon approval by the Governor./
Amend title to conform.
Senator McCONNELL 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.
Senator COURTNEY asked unanimous consent to give the Bill a third reading tomorrow.
Senator RYBERG objected to third reading.
S. 1215 (Word version) -- Senators Saleeby and McConnell: 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.
The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.
Senators SALEEBY, McCONNELL, MATTHEWS, COURTNEY, PATTERSON, REESE, HAYES, JACKSON and PASSAILAIGUE proposed the following amendment (1215I001.EES), which was adopted:
Amend the bill, as and if amended, by striking all existing language and inserting the following:
/SECTION 1. Section 38-27-510 of the 1976 Code is amended to read:
"Section 38-27-510. The amount recoverable by the liquidator from reinsurers may not be reduced as a result of delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor does not diminish the reinsurer's obligation to the insurer's estate except: when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.
(1) where the contract or other written agreement specifically provides another payee of the reinsurance in the event of the insolvency of the ceding insurer; or
(2) where the assuming insurer, with the consent of the direct insured, has assumed the policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under the policies and in substitution for the obligations of the ceding insurer to the payees.
The reinsurance is payable under contracts reinsured by the assuming insurer on the basis of reported claims allowed in the liquidation proceedings, subject to court approval, without diminution because of the insolvency of the ceding insurer.
The domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of a claim against the ceding insurer on the contract reinsured within a reasonable time after the claim is filed in the liquidation proceeding. During the pendency of the claim, an assuming insurer may investigate the claim and interpose, at its own expense in the proceeding where the claim is to be adjudicated, any defenses which it considers available to the ceding insurer or its liquidator. This expense is chargeable, subject to court approval, against the insolvent ceding insurer as part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the ceding insurer solely as a result of the defense undertaken by the assuming insurer. Where two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose a defense to the claim, the expense must be apportioned in accordance with the terms of the reinsurance agreement as though the expense had been incurred by the ceding insurer."
SECTION 2. This act takes effect upon approval by the Governor./
Amend title to conform.
Senator McCONNELL 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.
Senator COURTNEY asked unanimous consent to give the Bill a third reading tomorrow.
Senator RYBERG objected to third reading.
S. 1206 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO AUTHORIZE THE YMCA YOUTH IN GOVERNMENT HIGH SCHOOL PROGRAM TO USE THE AVAILABLE MEETING SPACE IN THE BLATT AND GRESSETTE OFFICE BUILDINGS ON THURSDAY, DECEMBER 3, 1998, AND FRIDAY, DECEMBER 4, 1998, IN ACCORDANCE WITH THE BUILDING POLICY OF THE RESPECTIVE BODIES TO CONDUCT A YOUTH IN GOVERNMENT HIGH SCHOOL PROGRAM, AND TO PROVIDE FOR ASSISTANCE BY APPROPRIATE HOUSE AND SENATE STAFF.
The Concurrent Resolution was adopted, ordered sent to the House.
S. 882 (Word version) -- Senators Peeler, Gregory and Giese: A BILL TO AMEND CHAPTER 21, TITLE 50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WATERCRAFT EQUIPMENT AND OPERATION, BY ADDING ARTICLE 10 SO AS TO ESTABLISH A POINT SYSTEM FOR WATERCRAFT VIOLATIONS, TO PROVIDE FOR A PROCEDURE FOR SUSPENSION OF WATERCRAFT PRIVILEGES OF A PERSON WHO ACCUMULATES A SPECIFIC NUMBER OF POINTS, TO REQUIRE THE REPORTING OF WATERCRAFT CONVICTIONS TO THE DEPARTMENT OF NATURAL RESOURCES, TO MAKE IT UNLAWFUL FOR A PERSON TO OPERATE A WATERCRAFT WHILE UNDER SUSPENSION, AND TO PROVIDE PENALTIES FOR VIOLATION.
Senator CORK asked unanimous consent to take the Bill up for immediate consideration.
Senator McCONNELL objected.
Senator PEELER spoke on the Bill and asked unanimous consent to take the Bill up for immediate consideration.
Senator McCONNELL objected.
THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE INTERRUPTED DEBATE.
S. 941 (Word version) -- 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, with Senator PASSAILAIGUE retaining the floor.
At 12:40 P.M., on motion of Senator DRUMMOND, the Senate receded from business until 2:30 P.M.
The Senate reassembled at 2:32 P.M. and was called to order by the PRESIDENT.
Senator MOORE made the point that a quorum was not present. It was ascertained that a quorum was not present. Senator MOORE moved that the Senate stand adjourned.
The Senate stood adjourned.
On motion of Senator HUTTO, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. William Walter "Bill" Dukes, Jr. of Orangeburg, S.C., esteemed civic and community leader.
At 2:33 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 11:00 A.M.
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