South Carolina General Assembly
113th Session, 1999-2000
Journal of the House of Representatives


Printed Page 3075 . . . . . Tuesday, April 18, 2000

Tuesday, April 18, 2000
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The House assembled at 12:00 noon.
Deliberations were opened with prayer by the Chaplain of the House of Representatives, the Rev. Dr. Alton C. Clark, as follows:

Almighty and all powerful God, we look in amazement at the gorgeous dress of Mother Nature, bedecked in the loveliness of her spring dress. We stand in awe before trees and shrubs that so recently appeared dead. We thank You that You are a God of nature as well as a God of human nature. Accept our thanks, moreso, for unforgettable events commemorated this week, called "holy week" and "Easter" by many and by others as "the feast of the passover." Keep us everlastingly grateful for a God Who loves us from everlasting to everlasting. Amen.

Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.

After corrections to the Journal of the proceedings of Friday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. FLEMING moved that when the House adjourns, it adjourn in memory of Jimmy Gault, county councilman of Jonesville, which was agreed to.

REGULATIONS RECEIVED

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

Document No. 2503
Agency: Department of Health and Human Services
Statutory Authority: 1976 Code Section 44-6-90
Optional State Supplementation Program
Received by Speaker of the House of Representatives
April 13, 2000


Printed Page 3076 . . . . . Tuesday, April 18, 2000

Referred to Medical, Military, Public and Municipal Affairs Committee
Legislative Review Expiration August 11, 2000 (Subject to Sine Die Revision)

Document No. 2515
Agency: Department of Labor, Licensing and Regulation - Board of Long Term Health Care Administrators
Statutory Authority: 1976 Code Section 40-35-230
Community Residential Care Facilities. Pre-examination and Licensing Requirements
Received by Speaker of the House of Representatives
April 13, 2000
Referred to Medical, Military, Public and Municipal Affairs Committee
Legislative Review Expiration August 11, 2000 (Subject to Sine Die Revision)

MESSAGE FROM THE SENATE

The following was received:

Columbia, S.C., April 13, 2000
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to H. 3555:

H. 3555 (Word version) -- Reps. Allison and Rodgers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-95 SO AS TO MAKE IT UNLAWFUL AND A FELONY TO INFLICT OR TO KNOWINGLY ALLOW A PERSON TO INFLICT GREAT BODILY HARM UPON A CHILD AND TO PROVIDE PENALTIES.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President
Received as information.


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MESSAGE FROM THE SENATE

The following was received:

Columbia, S.C., April 13, 2000
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 60:

S. 60 (Word version) -- Senator Ford: A BILL TO AMEND SECTION 53-5-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGAL HOLIDAYS, SO AS TO PROVIDE THAT MARTIN LUTHER KING'S BIRTHDAY AND CONFEDERATE MEMORIAL DAY SHALL BE REGULAR, RATHER THAN OPTIONAL, HOLIDAYS; TO DELETE REFERENCES TO ROBERT E. LEE'S BIRTHDAY AND JEFFERSON DAVIS' BIRTHDAY AS HOLIDAYS; AND TO MAKE GENERAL ELECTION DAY AN OPTIONAL, RATHER THAN REGULAR, HOLIDAY.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
President
Received as information.

H. 3782--COMMITTEE OF CONFERENCE APPOINTED

The following was received from the Senate:

MESSAGE FROM THE SENATE

Columbia, S.C., April 13, 2000
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it nonconcurs in the amendments proposed by the House to H. 3782:

H. 3782 (Word version) -- Reps. Campsen, Barfield, Barrett, Beck, Bowers, Cato, Cotty, Davenport, Delleney, Easterday, Edge, Emory, Gilham, Govan, Hamilton, Harrell, Harris, Harrison, Haskins, Klauber, Koon, Leach, Limehouse, Littlejohn, Loftis, Lourie, Lucas, Maddox, M. McLeod, W. McLeod, Meacham-Richardson, Miller, J. H. Neal, Quinn, Rice, Robinson, Sandifer, Sheheen, Simrill, D. Smith, J. Smith, Stille, Stuart, Taylor, Vaughn, Whatley, Whipper and Woodrum: A BILL TO ENACT THE "SOUTH CAROLINA CONSERVATION INCENTIVES ACT" BY AMENDING THE CODE OF LAWS OF


Printed Page 3078 . . . . . Tuesday, April 18, 2000

SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3515 SO AS TO ALLOW AN INCOME TAX CREDIT EQUAL TO TWENTY-FIVE PERCENT OF THE VALUE OF A FEDERAL INCOME TAX CHARITABLE DEDUCTION FOR A QUALIFIED CONSERVATION CONTRIBUTION OF A QUALIFIED REAL PROPERTY INTEREST LOCATED IN THIS STATE, TO PROVIDE A CAP ON THIS CREDIT, TO DEFINE THE LANDS OVER WHICH THESE EASEMENTS APPLY WHICH ARE ELIGIBLE FOR THESE CREDITS, TO PROVIDE A CARRY FORWARD OF UNUSED CREDIT AND MAKE THE UNUSED CREDIT TRANSFERABLE UPON NOTICE TO THE DEPARTMENT OF REVENUE WITH THE CREDIT RETAINING ALL ITS ATTRIBUTES IN THE HANDS OF THE TRANSFEREE, AND TO PROVIDE DEFINITIONS; AND BY ADDING ARTICLE 11 IN CHAPTER 3 OF TITLE 50, RELATING TO THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO ESTABLISH THE CONSERVATION GRANT FUND IN THE STATE TREASURY, TO PROVIDE FOR THE PURPOSE, GOVERNANCE, AND SOURCE OF FUNDS FOR THIS FUND INCLUDING THE PROMOTION OF DONATIONS OF CONSERVATION EASEMENTS AND AUTHORIZING THE FUND TO MAKE GRANTS IN FURTHERANCE OF THIS PURPOSE, NOT INCLUDING GRANTS TO PURCHASE ANY INTEREST IN REAL PROPERTY; AND TO AMEND SECTION 62-3-715, AS AMENDED, RELATING TO THE TRANSACTION AUTHORIZED FOR PERSONAL REPRESENTATIVES UNDER THE SOUTH CAROLINA PROBATE CODE, SO AS TO AUTHORIZE A PERSONAL REPRESENTATIVE OR TRUSTEE, AS APPLICABLE, WITH THE CONSENT OF ALL AFFECTED PARTIES TO MAKE A DONATION OF A QUALIFIED CONSERVATION EASEMENT TO OBTAIN A FEDERAL ESTATE TAX AND STATE INCOME TAX CREDIT BENEFIT, AND TO PROVIDE FOR THE METHOD TO OBTAIN THE CONSENT OF PERSONS OTHERWISE UNABLE TO GIVE SUCH CONSENT.

Very respectfully,
President

On motion of Rep. HARRELL, the House insisted upon its amendments.


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Whereupon, the Chair appointed Reps. HARRELL, R. SMITH and CAMPSEN to the Committee of Conference on the part of the House and a message was ordered sent to the Senate accordingly.

REPORT OF STANDING COMMITTEE

Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:

H. 3831 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 57-25-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COMPENSATION FOR THE REMOVAL OF OUTDOOR ADVERTISING SIGNS, SO AS TO PROVIDE THAT COMPENSATION FOR THIS PURPOSE IS CONSIDERED TO BE FAIR MARKET VALUE OF THE PARTICULAR INTEREST OF EACH PARTY HAVING AN INTEREST IN THE LOCATION OF THE SIGN WHICH SHALL BE DETERMINED THROUGH APPRAISAL METHODS USED TO DETERMINE JUST COMPENSATION UNDER THE EMINENT DOMAIN PROCEDURE ACT, TO FURTHER PROVIDE FOR THE MANNER IN WHICH COMPENSATION MUST BE PAID PRIOR TO THE REMOVAL OF SUCH SIGNS, AND TO PROVIDE THAT NO POLITICAL SUBDIVISION OF THIS STATE MAY REQUIRE THE REMOVAL OF AN EXISTING SIGN FOR REASONS OTHER THAN TRAFFIC SAFETY OR PROXIMITY TO SPECIFIED LOCATIONS; AND TO ADD SECTION 57-25-191 SO AS TO PROVIDE FOR ADDITIONAL PROCEDURAL REQUIREMENTS IN REGARD TO THE ENACTING OF ZONING PLANS OR ORDINANCES BY A POLITICAL SUBDIVISION RELATING TO OUTDOOR ADVERTISING SIGNS.
Ordered for consideration tomorrow.

HOUSE RESOLUTION

The following was introduced:

H. 4957 (Word version) -- Rep. Cobb-Hunter: A HOUSE RESOLUTION RECOGNIZING DEACONESS ERNESTINE TOLES ON THE OCCASION OF THE DR. WILLIAM H. GRAY, JR., MEMORIAL CONCERT AT BRIGHT HOPE BAPTIST CHURCH IN


Printed Page 3080 . . . . . Tuesday, April 18, 2000

PHILADELPHIA HONORING HER OUTSTANDING SERVICE TO THE COMMUNITY AND TO BRIGHT HOPE.

The Resolution was adopted.

HOUSE RESOLUTION

On motion of Rep. M. MCLEOD, with unanimous consent, the following was taken up for immediate consideration:

H. 4958 (Word version) -- Reps. M. McLeod, Harvin, G. Brown, Canty, Woodrum and J. H. Neal: A HOUSE RESOLUTION EXTENDING THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO THE WILSON HALL BARONS BOYS BASKETBALL TEAM, COACHES, SUPPORT PERSONNEL, AND SCHOOL OFFICIALS, ON A DATE AND AT A TIME AS DETERMINED BY THE SPEAKER, FOR THE PURPOSE OF BEING RECOGNIZED AND CONGRATULATED ON WINNING THE SCISAA CLASS AAA BOYS BASKETBALL STATE CHAMPIONSHIP FOR 1999-2000.

Be it resolved by the House of Representatives:

That the privilege of the floor of the House of Representatives be, and the same hereby is, extended to the Wilson Hall Barons boys basketball team, coaches, support personnel, and school officials, on a date and at a time as determined by the Speaker, for the purpose of being recognized and congratulated on winning the SCISAA Class AAA boys basketball state championship for 1999-2000.

The Resolution was adopted.

CONCURRENT RESOLUTION

The following was introduced:

H. 4959 (Word version) -- Reps. Barfield, Edge, Law, Keegan, Kelley, Miller, Witherspoon, Allen, Allison, Altman, Askins, Bailey, Bales, Barrett, Battle, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines,


Printed Page 3081 . . . . . Tuesday, April 18, 2000

M. Hines, Hinson, Hosey, Howard, Huggins, Inabinett, Jennings, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham-Richardson, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Parks, Perry, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, F. Smith, J. Smith, R. Smith, D. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION CONGRATULATING AND OFFERING SINCERE APPRECIATION TO MISS LISA RABON OF HORRY COUNTY FOR HER REPRESENTATION OF OUR STATE IN THE MISS USA 2000 PAGEANT FINISHING AS A SEMI-FINALIST, AND EPITOMIZING THE VERY BEST ROLE MODEL OUR STATE CAN HAVE IN NATIONAL COMPETITION.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 1338 (Word version) -- Senator Alexander: A CONCURRENT RESOLUTION CONGRATULATING MR. C. FREDRIC MARCINAK OF WALHALLA FOR BEING ELECTED BY ACCLAMATION AS GOVERNOR OF THE SOUTH CAROLINA STUDENT LEGISLATURE FOR 1999-2000 AND WISHING HIM WELL IN HIS TERM AS GOVERNOR AND IN ALL HIS FUTURE ENDEAVORS.

The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.

CONCURRENT RESOLUTION

The following was introduced:

H. 4965 (Word version) -- Reps. R. Smith, Clyburn, Perry and Sharpe: A CONCURRENT RESOLUTION TO RECOGNIZE EUGENE FRANCIS MCMANUS, M. D., UPON THE OCCASION OF HIS


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RETIREMENT AFTER PRACTICING PEDIATRIC MEDICINE IN AIKEN COUNTY FOR THIRTY-FOUR YEARS, DURING WHICH TIME HE WAS HONORED AS BOTH PHYSICIAN OF THE YEAR BY THE AIKEN MEDICAL ASSOCIATION AND VOLUNTEER PHYSICIAN OF THE YEAR BY THE LOWER SAVANNAH HEALTH DISTRICT.

The Concurrent Resolution was agreed to and ordered sent to the Senate.

INTRODUCTION OF BILLS

The following Bills and Joint Resolutions were introduced, read the first time, and referred to appropriate committees:

H. 4960 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO PROVIDE THE FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE CREATED TO STUDY THE FEASIBILITY OF CREATING A MASS TRANSPORTATION SYSTEM FOR THE STATE.

RULE 5.12 WAIVED

Rep. TOWNSEND moved to waive Rule 5.12, which was agreed to by a division vote of 58 to 5.

Without Reference

H. 4961 (Word version) -- Rep. Wilkins: A JOINT RESOLUTION TO ADOPT REVISED CODE VOLUME 5 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO THE EXTENT OF ITS CONTENTS, AS THE ONLY GENERAL PERMANENT STATUTORY LAW OF THE STATE AS OF JANUARY 1, 2000.
Referred to Committee on Judiciary

H. 4962 (Word version) -- Rep. Fleming: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAY OF NOVEMBER 1, 1999, MISSED BY STUDENTS OF JONESVILLE ELEMENTARY SCHOOL IN THE SCHOOL DISTRICT OF UNION COUNTY FOR SCHOOL YEAR 1999-2000 WHEN THE SCHOOL WAS CLOSED DUE TO WATER PROBLEMS IS EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT


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FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
On motion of Rep. FLEMING, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.

H. 4963 (Word version) -- Reps. Neilson, J. Hines and Lucas: A JOINT RESOLUTION TO PROVIDE THAT, NOTWITHSTANDING ANY OTHER PROVISION OF LAW, UP TO FOUR SCHOOL DAYS MISSED BY THE STUDENTS AND TEACHERS OF ANY SCHOOL OF THE DARLINGTON COUNTY SCHOOL DISTRICT DURING SCHOOL YEAR 1999-2000 WHEN THE SCHOOLS WERE CLOSED DUE TO ICE, SNOW, FLOODING, RESULTING HAZARDOUS ROAD CONDITIONS, OR HEATING PROBLEMS IN ANY PARTICULAR SCHOOL OF THE DISTRICT ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
On motion of Rep. NEILSON, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.

H. 4964 (Word version) -- Reps. McGee and Cobb-Hunter: A BILL TO AMEND SECTION 20-4-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN THE PROTECTION FROM DOMESTIC ABUSE ACT, SO AS TO ADD A DEFINITION OF ABUSE THAT INCLUDES VERBAL INTIMIDATION OR VERBAL ABUSE THAT WOULD CAUSE A REASONABLE PERSON TO FEAR FOR THE PERSON'S OR ANOTHER FAMILY OR HOUSEHOLD MEMBER'S SAFETY; AND TO AMEND CHAPTER 4 OF TITLE 20 BY ADDING SECTION 20-4-55, SO AS TO PROVIDE THAT, EVEN WHEN THE COURT FINDS NO BASIS TO ISSUE AN ORDER OF PROTECTION, THE COURT HAS THE AUTHORITY TO ISSUE A TEMPORARY ORDER ADDRESSING ISSUES APPLICABLE TO THE PARTIES AND SCHEDULE A TEMPORARY HEARING AT THE REQUEST OF EITHER PARTY.
Referred to Committee on Judiciary

H. 4966 (Word version) -- Reps. Maddox, Allen, Martin and Townsend: A BILL TO AMEND SECTION 7-7-80, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION


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OF VOTING PRECINCTS IN ANDERSON COUNTY, SO AS TO REDESIGNATE CERTAIN PRECINCTS AND CHANGE THE MAP DESIGNATION ON WHICH THE LINES OF THOSE PRECINCTS ARE DELINEATED.
On motion of Rep. MADDOX, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

S. 767 (Word version) -- Senators McConnell and Ford: A BILL TO AMEND CHAPTER 6, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENTS TO CONTRACTORS, SUBCONTRACTORS, AND SUPPLIERS, BY ADDING ARTICLE 3 SO AS TO PROVIDE THE SUBCONTRACTORS' AND SUPPLIERS' PAYMENT PROTECTION ACT, AND TO AMEND CHAPTER 6, TITLE 29, BY DESIGNATING SECTIONS 29-6-10 THROUGH 29-6-60 AS ARTICLE 1.
Referred to Committee on Labor, Commerce and Industry

S. 771 (Word version) -- Senator Martin: A BILL TO AMEND SECTION 7-13-110, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO POLL MANAGERS, SO AS TO AUTHORIZE ANY PERSON AT LEAST SIXTEEN YEARS OF AGE WHO HAS COMPLETED THE NECESSARY TRAINING AND WHO IS NOT OTHERWISE DISQUALIFIED BY LAW TO BE APPOINTED AS A POLL MANAGER'S ASSISTANT BY THE APPROPRIATE COUNTY ELECTION COMMISSION.
Referred to Committee on Judiciary

S. 858 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 62-5-433 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SETTLEMENT OF CLAIMS OF MINORS AND INCAPACITATED PERSONS SO AS TO PROVIDE THAT "COURT" FOR THE PURPOSE OF APPROVAL OF SETTLEMENTS OF CLAIMS OF MINORS AND INCAPACITATED PERSONS INCLUDES THE CIRCUIT COURT OR THE PROBATE COURT OF THE COUNTY WHERE SUIT IS PENDING.
Referred to Committee on Judiciary

S. 1012 (Word version) -- Senators J. V. Smith, Fair and Anderson: A BILL TO AMEND SECTION 61-6-2010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF


Printed Page 3085 . . . . . Tuesday, April 18, 2000

TEMPORARY PERMITS TO SELL ALCOHOLIC LIQUORS, AFTER A FAVORABLE REFERENDUM, SO AS TO INCREASE FROM TWENTY-FIVE HUNDRED TO TEN THOUSAND THE MAXIMUM NUMBER OF SIGNATURES REQUIRED TO INITIATE THE REFERENDUM, TO DELETE THE REQUIREMENT THAT THE LOCAL ELECTION COMMISSION CONDUCT THE REFERENDUM WITHIN THIRTY NOR MORE THAN FORTY DAYS AFTER RECEIVING THE PETITION, TO REQUIRE THE PETITION FORM PROVIDED TO COUNTY OFFICIALS BE USED, TO REQUIRE THE ELECTION COMMISSION TO CERTIFY THE NAMES ON THE PETITION WITHIN THIRTY DAYS FROM ITS RECEIPT, AND TO REQUIRE THE REFERENDUM TO BE CONDUCTED AT THE NEXT GENERAL ELECTION.
Referred to Committee on Judiciary

S. 1266 (Word version) -- Senator Ford: A BILL TO PROVIDE THAT THE CONFEDERATE BATTLE FLAG SHALL BE REMOVED FROM ATOP THE STATE HOUSE, FROM THE FRONT GROUND-FLOOR FOYER OF THE STATE HOUSE, AND FROM THE CHAMBERS OF THE SENATE AND THE HOUSE OF REPRESENTATIVES AND PLACED IN AN UNBREAKABLE GLASS DISPLAY CASE IN FRONT OF THE CONFEDERATE SOLDIER'S MONUMENT ON THE STATE HOUSE GROUNDS, TO PROVIDE THAT THE FIRST NATIONAL FLAG OF THE CONFEDERACY (STARS AND BARS) SHALL BE DISPLAYED AT THE WOMEN'S MONUMENT TO THE CONFEDERACY ON THE STATE HOUSE GROUNDS, AND TO PROVIDE THAT THE UNIVERSAL NEGRO IMPROVEMENT ASSOCIATION FLAG (BLACK LIBERATION FLAG) SHALL BE DISPLAYED AT THE AFRICAN AMERICAN MONUMENT ON THE STATE HOUSE GROUNDS; AND TO AMEND CHAPTER 1, TITLE 10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC BUILDINGS AND PROPERTY, BY ADDING SECTION 10-1-165 SO AS TO PROVIDE THAT ONLY THE UNITED STATES FLAG AND THE SOUTH CAROLINA STATE FLAG SHALL FLY ATOP THE STATE HOUSE, BE DISPLAYED IN THE FRONT GROUND-FLOOR FOYER OF THE STATE HOUSE, AND IN THE CHAMBERS OF THE SENATE AND THE HOUSE OF REPRESENTATIVES.
Referred to Committee on Judiciary


Printed Page 3086 . . . . . Tuesday, April 18, 2000

S. 1322 (Word version) -- Senators Holland and Giese: A BILL TO AMEND TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PRIVATE SECURITY AND INVESTIGATION AGENCIES, BY REPEALING CHAPTER 17 AND ADDING CHAPTER 18, SO AS TO PROVIDE DEFINITIONS, TO DESIGNATE THE TWO CLASSIFICATIONS OF SECURITY BUSINESSES AS CONTRACT SECURITY BUSINESSES AND PROPRIETARY SECURITY BUSINESSES, TO REQUIRE SLED LICENSURE OF CONTRACT AND PROPRIETARY SECURITY BUSINESSES AND TO PROVIDE FOR LICENSING REQUIREMENTS, TO REQUIRE SLED REGISTRATION FOR PERSONS EMPLOYED AS SECURITY OFFICERS AND TO PROVIDE FOR REGISTRATION REQUIREMENTS, TO PROVIDE THAT PERSONS EMPLOYED AS PRIVATE INVESTIGATORS BE REGISTERED WITH SLED AND BE EMPLOYED ONLY BY LICENSED PRIVATE INVESTIGATION BUSINESSES, TO PROVIDE FOR THE LICENSING REQUIREMENTS OF PRIVATE INVESTIGATION BUSINESSES AND THE REGISTRATION REQUIREMENTS OF PRIVATE INVESTIGATORS, TO REQUIRE AN APPLICANT FOR A PRIVATE INVESTIGATION LICENSE TO POST A TEN THOUSAND DOLLAR BOND WITH SLED, AND TO PROVIDE CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS OF THIS CHAPTER.
Referred to Committee on Judiciary

ROLL CALL

The roll call of the House of Representatives was taken resulting as follows:

Allen                  Allison                Altman
Bailey                 Bales                  Barfield
Barrett                Battle                 Bowers
Breeland               Brown, G.              Brown, H.
Brown, J.              Campsen                Canty
Carnell                Cato                   Chellis
Clyburn                Cobb-Hunter            Cooper
Cotty                  Dantzler               Davenport
Delleney               Easterday              Edge
Emory                  Fleming                Frye
Gamble                 Gilham                 Gourdine
Hamilton               Harrell                Harris
Harrison               Harvin                 Haskins

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Hawkins                Hayes                  Hines, J.
Hines, M.              Hinson                 Hosey
Howard                 Huggins                Inabinett
Jennings               Keegan                 Kennedy
Kirsh                  Klauber                Knotts
Koon                   Law                    Leach
Lee                    Limehouse              Littlejohn
Lloyd                  Loftis                 Lourie
Lucas                  Mack                   Maddox
Martin                 McCraw                 McGee
McKay                  McLeod, W.             McMahand
Meacham-Richardson     Miller                 Moody-Lawrence
Neal, J.H.             Neal, J.M.             Neilson
Ott                    Parks                  Perry
Phillips               Pinckney               Quinn
Rhoad                  Rice                   Riser
Robinson               Rodgers                Rutherford
Sandifer               Scott                  Sharpe
Simrill                Smith, D.              Smith, F.
Smith, J.              Smith, R.              Stille
Stuart                 Taylor                 Townsend
Tripp                  Trotter                Walker
Webb                   Whatley                Whipper
Wilder                 Wilkins                Witherspoon
Woodrum                Young-Brickell

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Tuesday, April 18.

E.B. "Mac" McLeod                 Mark Kelley
Jerry Govan                       Timothy Wilkes
Harry Askins                      Theodore Brown
Robert Sheheen                    Lynn Seithel

Total Present--121

LEAVE OF ABSENCE

The SPEAKER granted Rep. LANFORD a leave of absence for the day due to a death in the family.


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LEAVE OF ABSENCE

The SPEAKER granted Rep. VAUGHN a leave of absence due to illness.

DOCTOR OF THE DAY

Announcement was made that Dr. Woodrow Long of Greenville is the Doctor of the Day for the General Assembly.

CO-SPONSORS ADDED AND REMOVED

In accordance with House Rule 5.2 below:
"5.2   Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or co-sponsor's written notification in the House Journal. The removal or addition of a name does not apply to a bill or resolution sponsored by a committee."

CO-SPONSOR ADDED

Bill Number:   H. 4753 (Word version)
Date:   ADD:
04/18/00   EASTERDAY

CO-SPONSOR ADDED

Bill Number:   H. 4753 (Word version)
Date:   ADD:
04/18/00   RICE

CO-SPONSOR ADDED

Bill Number:   H. 4277 (Word version)
Date:   ADD:
04/18/00   W. MCLEOD


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CO-SPONSOR ADDED

Bill Number:   H. 4801 (Word version)
Date:   ADD:
04/18/00   ROBINSON

CO-SPONSOR ADDED

Bill Number:   H. 4802 (Word version)
Date:   ADD:
04/18/00   ROBINSON

CO-SPONSOR REMOVED

Bill Number:   H. 4892 (Word version)
Date:   REMOVE:
04/18/00   LEACH

CO-SPONSOR REMOVED

Bill Number:   H. 4892 (Word version)
Date:   REMOVE:
04/18/00   TRIPP

S. 226--CONFERENCE REPORT ADOPTED

The Conference Report on the following Bill was taken up:

S. 226 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 5-1-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PREREQUISITES TO ISSUANCE OF A CORPORATE CERTIFICATE TO A PROPOSED MUNICIPALITY, SO AS TO REQUIRE THE AREA SEEKING TO BE INCORPORATED TO BE CONTIGUOUS, AND PROVIDE THAT CONTIGUITY IS NOT DESTROYED BY AN INTERVENING NAVIGABLE WATERWAY, MARSHLAND, OR LOWLAND WHETHER OR NOT IT HAS BEEN PREVIOUSLY INCORPORATED OR ANNEXED, AND PROVIDE THAT THE NAVIGABLE WATERWAY, MARSHLAND, OR LOWLAND DOES NOT PRECLUDE IT FROM BEING USED BY ANOTHER MUNICIPALITY TO ESTABLISH CONTIGUITY FOR PURPOSES OF AN INCORPORATION OR ANNEXATION PROVIDED THE DISTANCE FROM HIGHLAND TO HIGHLAND OF THE AREA BEING INCORPORATED OR ANNEXED IS NOT GREATER THAN ONE MILE.


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Rep. CAMPSEN explained the Conference Report.

The Conference Report was adopted and a message was ordered sent to the Senate accordingly.

ORDERED TO THIRD READING

The following Bills were taken up, read the second time, and ordered to a third reading:

H. 4899 (Word version) -- Reps. Campsen, Harrell, Limehouse and Whatley: A BILL TO AMEND ACT 340 OF 1967, AS AMENDED, RELATING TO THE CHARLESTON COUNTY SCHOOL DISTRICT, SO AS TO REQUIRE THE BOARD OF TRUSTEES OF THE CHARLESTON SCHOOL DISTRICT TO SUBMIT ITS PROPOSED BUDGETS TO THE COUNTY COUNCIL FOR REVIEW ON OR BEFORE JUNE THIRTIETH OF EACH YEAR, TO AUTHORIZE THE COUNTY COUNCIL TO COMMENT AND MAKE RECOMMENDATIONS ON THE PROPOSED BUDGET TO WHICH THE BOARD MUST RESPOND IN WRITING WHILE LEAVING AUTHORITY TO ACCEPT OR REJECT THESE COMMENTS OR RECOMMENDATIONS WITHIN THE BOARD'S DISCRETION, TO DEVOLVE FROM THE CHARLESTON COUNTY LEGISLATIVE DELEGATION TO THE CHARLESTON COUNTY COUNCIL THE AUTHORITY TO LEVY IN EXCESS OF NINETY MILLS IN PROPERTY TAXES FOR SCHOOL OPERATIONS, AND TO REQUIRE THIS APPROVAL BY ORDINANCE.

H. 4937 (Word version) -- Reps. Cato, Tripp, Easterday, Hamilton, Leach, Loftis, McMahand, F. Smith and Wilkins: A BILL TO PROVIDE THAT THE NAME OF THE GREENVILLE MEMORIAL AUDITORIUM DISTRICT IS CHANGED TO THE GREENVILLE ARENA DISTRICT AND SHALL BE COMPOSED OF THE AREA DEFINED FOR THE GREENVILLE MEMORIAL AUDITORIUM DISTRICT AND IS VESTED WITH ALL THE POWERS, DUTIES, AND AUTHORITY VESTED IN THAT DISTRICT.

H. 4801 (Word version) -- Reps. Breeland, Lourie, Askins, Bailey, Battle, G. Brown, T. Brown, Carnell, Clyburn, Dantzler, Davenport, Gilham, Gourdine, Govan, Hamilton, Harris, Harrison, J. Hines, M. Hines, Hosey, Inabinett, Kennedy, Law, Leach, Lloyd, Mack, McGee, McMahand, Miller, Moody-Lawrence, J. H. Neal, Parks, Phillips, Quinn, Riser,


Printed Page 3091 . . . . . Tuesday, April 18, 2000

Rodgers, Scott, F. Smith, Whipper, Wilder, Young-Brickell and Robinson: A BILL TO AMEND SECTION 25-21-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE BOARD OF TRUSTEES FOR THE VETERANS' TRUST FUND, SO AS TO ELIMINATE THEIR FUNCTION OF SERVING AS AN ADVISORY COMMITTEE TO THE VETERANS' AFFAIRS DIVISION; AND TO AMEND SECTION 25-21-30, RELATING TO THE DUTIES OF THE BOARD OF TRUSTEES AND SECTION 25-21-40, RELATING TO THE DISBURSEMENT OF FUNDS FROM THE VETERANS' TRUST FUND, BOTH SO AS TO PROVIDE THAT THE BOARD OF TRUSTEES IS AUTHORIZED TO DECIDE HOW MONIES IN THE FUND MUST BE DISBURSED.

Rep. BREELAND explained the Bill.

H. 4922--POINT OF ORDER

The following Bill was taken up:

H. 4922 (Word version) -- Reps. Allison, Davenport and Hawkins: A BILL TO PROVIDE THAT STUDENTS WHO RESIDE IN AND ATTEND A PUBLIC SCHOOL IN SPARTANBURG COUNTY WHO PARTICIPATE IN INTERSCHOLASTIC SOCCER OR AS A MEMBER OF A SCHOOL SOCCER SQUAD MAY PARTICIPATE IN ORGANIZED SOCCER WHICH IS INDEPENDENT OF THE CONTROL OF THE SCHOOL UNDER CERTAIN CONDITIONS, AND TO PROVIDE THAT A SCHOOL OR STUDENT IN THOSE SCHOOLS IS NOT INELIGIBLE FOR PARTICIPATION IN INTERSCHOLASTIC SOCCER BECAUSE OF THE PARTICIPATION OF THE STUDENT OF THE SCHOOL AS A MEMBER OF AN ORGANIZED SOCCER TEAM INDEPENDENT OF THE SCHOOL'S CONTROL.

Rep. WALKER moved to commit the Bill.

Rep. DAVENPORT moved to table the motion, which was agreed to.

POINT OF ORDER

Rep. WALKER made the Point of Order that the Bill was improperly before the House for consideration since its number and


Printed Page 3092 . . . . . Tuesday, April 18, 2000

title have not been printed in the House Calendar at least one legislative day prior to second reading.
The SPEAKER sustained the Point of Order.

H. 4753--REQUESTS FOR DEBATE

The following Bill was taken up:

H. 4753 (Word version) -- Reps. Altman, Robinson, Barfield, Cato, Gilham, Leach, Limehouse, Littlejohn, McGee, Meacham-Richardson, Rhoad, Riser, Stille, Young-Brickell, Loftis, Easterday and Rice: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-3525 SO AS TO AUTHORIZE STATE INCOME TAX CREDITS UP TO FIVE HUNDRED DOLLARS A YEAR ON A PHASED-IN BASIS FOR CONTRIBUTIONS MADE TO PUBLIC SCHOOLS FOR SCHOOL SUPPORT AND TO NONPROFIT SCHOLARSHIP FUNDING ORGANIZATIONS THAT PROVIDE SCHOLARSHIPS FOR CHILDREN TO ATTEND A SCHOOL OF THEIR CHOICE.

Reps. PINCKNEY, HOWARD, J. H. NEAL, BALES, WITHERSPOON, RUTHERFORD, LLOYD, HOSEY, YOUNG-BRICKELL, EASTERDAY, HARRELL, HASKINS, TRIPP, SHARPE, R. SMITH, BREELAND, MACK and INABINETT requested debate on the Bill.

S. 934--OBJECTIONS AND REQUESTS FOR DEBATE

The following Bill was taken up:

S. 934 (Word version) -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson, Passailaigue, Rankin and Glover: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-144 SO AS TO PROVIDE THAT THERE IS NO PERSONAL INJURY PROTECTION (PIP) COVERAGE MANDATED UNDER THE AUTOMOBILE INSURANCE LAWS OF SOUTH CAROLINA, AND PROVIDE THAT IF AN INSURER SELLS NO-FAULT INSURANCE COVERAGE WHICH INCLUDES PERSONAL INJURY PROTECTION, MEDICAL PAYMENT COVERAGE, OR ECONOMIC LOSS COVERAGE, SUCH COVERAGE SHALL NOT BE ASSIGNED OR SUBROGATED AND IS NOT SUBJECT TO A SETOFF.


Printed Page 3093 . . . . . Tuesday, April 18, 2000

Reps. TROTTER and LEACH objected to the Bill.

Reps. FLEMING, TRIPP, KIRSH, ALLISON, LITTLEJOHN, ROBINSON, CATO, KNOTTS and PHILLIPS requested debate on the Bill.

H. 4467--REQUEST FOR DEBATE, AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4467 (Word version) -- Reps. Cato and Tripp: A BILL TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING CHAPTER 90, SO AS TO PROVIDE FOR THE REGULATION AND OPERATION OF CAPTIVE INSURANCE COMPANIES, INCLUDING AMONG OTHER THINGS THE SCOPE OF BUSINESS THAT MAY BE CONDUCTED; REQUIREMENTS FOR INCORPORATION, LICENSURE, FINANCIAL RESPONSIBILITY, AND ANNUAL REPORTS; PROVIDING FOR PERIODIC INSPECTIONS AND EXAMINATIONS OF THE COMPANY'S AFFAIRS; ESTABLISHING GROUNDS FOR LICENSE SUSPENSION AND REVOCATION, SETTING FORTH INVESTMENT REQUIREMENTS; ESTABLISHING PREMIUM TAXES; AND PROVIDING THE PROCEDURES FOR CONVERSIONS AND MERGERS OF CERTAIN CAPTIVE INSURANCE COMPANIES WITH RECIPROCAL INSURERS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name NBD\AMEND\11988AC00), which was adopted:
Amend the bill, as and if amended, Section 38-90-10 by deleting items (12) through (23) beginning on page 3, line 7 through page 4, line 20 and inserting:
/   (12)   'Industrial insured' means an insured as defined in Section 38-25-150(8).

(13)   'Industrial insured captive insurance company' means a company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies.

(14)   'Industrial insured group' means a group that meets either of the following criteria:

(a)   a group of industrial insureds that collectively:


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(i)   own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; or

(ii)   have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or

(b)   a group which is created under the Product Liability Risk Retention Act of 1981, 15 U.S.C. Section 3901 et seq., as amended, as a corporation or other limited liability association taxable as a stock insurance company or a mutual insurer under this title.

(15)   'Member organization' means a individual, corporation, partnership, or association that belongs to an association.

(16)   'Parent' means a corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting securities of a pure captive insurance company.

(17)   'Participant' means an entity as defined in Section 38-90-230, and any affiliates of that entity, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the assets of a protected cell.

(18)   'Participant contract' means a contract by which a sponsored captive insurance company insures the risks of a participant and limits the losses of the participant to the assets of a protected cell.

(19)   'Protected cell' means a separate account established and maintained by a sponsored captive insurance company for one participant.

(20)   'Pure captive insurance company' means a company that insures risks of its parent and affiliated companies.

(21)   'Sponsor' means an entity that meets the requirements of Section 38-90-220 and is approved by the director to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company.

(22)   'Sponsored captive insurance company' means a captive insurance company:

(a)   in which the minimum capital and surplus required by applicable law is provided by one or more sponsors;

(b)   that is formed or licensed under this chapter;

(c)   that insures the risks of separate participants through the contract; and

(d)   that segregates each participant's liability through one or more protected cells./


Printed Page 3095 . . . . . Tuesday, April 18, 2000

Amend the bill, as and if amended, Section 38-90-20(A) on page 4, lines 24 and 25 by deleting / , except workers' compensation insurance, / and by deleting items (6) through (9) beginning on page 4, line 42 through page 5, line 13 so when amended Section 38-90-20(A) reads:
/"(A)   A captive insurance company, when permitted by its articles of incorporation or charter, may apply to the director for a license to do any and all insurance authorized by this title; however:

(1)   a pure captive insurance company may not insure any risks other than those of its parent and affiliated companies or controlled unaffiliated business;

(2)   an association captive insurance company may not insure any risks other than those of the member organizations of its association and their affiliated companies;

(3)   an industrial insured captive insurance company may not insure any risks other than those of the industrial insureds that comprise the industrial insured group and their affiliated companies;

(4)   a captive insurance company may not provide personal motor vehicle or homeowner's insurance coverage or any component of these coverages;

(5)   a captive insurance company may not accept or cede reinsurance except as provided in Section 38-90-110;

(6)   a captive insurance company which insures life or health risks shall comply with all applicable state and federal laws;

(7)   a branch captive insurance company may not write any business in this State except insurance or reinsurance of the employee benefit business of its parent and affiliated companies which is subject to the Employee Retirement Income Security Act of 1974, as amended; and

(8)   a sponsored captive insurance company may not insure any risks other than those of its participants./
Amend the bill, as and if amended, Section 38-90-20(D) page 7 beginning on line 32 by deleting /These examination fees must be retained by the department and are considered other funds./ so when amended Section 38-90-20(D) reads:
/   (D)   A captive insurance company shall pay to the director a nonrefundable fee of two hundred dollars for examining, investigating, and processing its application for license, and the director may retain legal, financial, and examination services from outside the department, the reasonable cost of which may be charged against the applicant. Section 38-13-60 applies to examinations, investigations, and processing conducted under the authority of this section. In addition a


Printed Page 3096 . . . . . Tuesday, April 18, 2000

captive insurance company shall pay a license fee for the year of registration and an renewal fee of three hundred dollars./
Amend the bill further, Section 38-90-20(D) page 7, line 27 by deleting /director/ and inserting /department/ so when amended, Section 38-90-20(D) reads:
/   (D)   A captive insurance company shall pay to the department a nonrefundable fee of two hundred dollars for examining, investigating, and processing its application for license, and the director may retain legal, financial, and examination services from outside the department, the reasonable cost of which may be charged against the applicant. These examination fees must be retained by the department and are considered other funds. Section 38-13-60 applies to examinations, investigations, and processing conducted under the authority of this section. In addition a captive insurance company shall pay a license fee for the year of registration and an renewal fee of three hundred dollars./
Amend the bill, as and if amended, Section 38-90-40 on page 8, beginning on line 6, by deleting subsection (B) so when amended Section 38-90-40 reads:
/   Section 38-90-40.   (A)   The director may not issue a license to a pure captive insurance company, sponsored captive insurance company, association captive insurance company incorporated as a stock insurer, or industrial insured captive insurance company incorporated as a stock insurer unless the company possesses and thereafter maintains unimpaired paid-in capital of:

(1)   in the case of a pure captive insurance company, not less than one hundred thousand dollars;

(2)   in the case of an association captive insurance company incorporated as a stock insurer, not less than four hundred thousand dollars;

(3)   in the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than two hundred thousand dollars;

(4)   in the case of a sponsored captive insurance company, not less than five hundred thousand dollars.

The capital may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System and approved by the director.

(B)   The director may prescribe additional capital based upon the type, volume, and nature of insurance business transacted. This capital may be in the form of an irrevocable letter of credit issued by a bank


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chartered by this State or a member bank of the Federal Reserve System.

(C)   In the case of a branch captive insurance company, as security for the payment of liabilities attributable to branch operations, the director shall require that a trust fund, funded by an irrevocable letter of credit or other acceptable asset, be established and maintained in the United States for the benefit of United States policyholders and United States ceding insurers under insurance policies issued or reinsurance contracts issued or assumed, by the branch captive insurance company through its branch operations. The amount of the security may be no less than the capital and surplus required by this chapter and the reserves on these insurance policies or reinsurance contracts, including reserves for losses, allocated loss adjustment expenses, incurred but not reported losses and unearned premiums with regard to business written through branch operations; however, the director may permit a branch captive insurance company that is required to post security for loss reserves on branch business by its reinsurer to reduce the funds in the trust account required by this section by the same amount so long as the security remains posted with the reinsurer. If the form of security selected is a letter of credit, the letter of credit must be established by, or issued or confirmed by, a bank chartered in this State or a member bank of the Federal Reserve System.

(D)   A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in Section 38-21-250 through Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.
Amend the bill further, Section 38-90-50 on page 10, immediately after line 3 by inserting /(B)   Notwithstanding the requirements of subsection (A) a captive insurance company organized as a reciprocal insurer under this chapter may not be issued a license unless it possesses and thereafter maintains free surplus of one million dollars./ so when amended Section 38-90-50 reads:
/Section 38-90-50.   (A)   The director may not issue a license to a captive insurance company unless the company possesses and thereafter maintains free surplus of:


Printed Page 3098 . . . . . Tuesday, April 18, 2000

(1)   in the case of a pure captive insurance company, not less that one hundred and fifty thousand dollars;

(2)   in the case of an association captive insurance company incorporated as a stock insurer, not less than three hundred and fifty thousand dollars;

(3)   in the case of an industrial insured captive insurance company incorporated as a stock insurer, not less than three hundred thousand dollars;

(4)   in the case of an association captive insurance company incorporated as a mutual insurer, not less than seven hundred and fifty thousand dollars;

(5)   in the case of an industrial insured captive insurance company incorporated as a mutual insurer, not less than five hundred thousand dollars; and

(6)   in the case of a sponsored captive insurance company, not less than five hundred thousand dollars.

The surplus may be in the form of cash or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System and approved by the director.

(B)   Notwithstanding the requirements of subsection (A) a captive insurance company organized as a reciprocal insurer under this chapter may not be issued a license unless it possesses and thereafter maintains free surplus of one million dollars.

(C)   The director may prescribe additional surplus based upon the type, volume, and nature of insurance business transacted. This capital may be in the form of an irrevocable letter of credit issued by a bank chartered by this State, or a member bank of the Federal Reserve System.

(D)   A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations set forth in Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distribution must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director./
Amend the bill further, Section 38-90-70(D) page 13, line 31, after the /./ by inserting /Such waiver must be in writing and subject to public inspection./ so when amended Section 38-90-70(D) reads:
/   (D)   Sixty days after the fiscal year end, a branch captive insurance company shall file with the director a copy of all reports and


Printed Page 3099 . . . . . Tuesday, April 18, 2000

statements required to be filed under the laws of the jurisdiction in which the alien captive insurance company is formed, verified by oath by two of its executive officers. If the director is satisfied that the annual report filed by the alien captive insurance company in its domicillary jurisdiction provides adequate information concerning the financial condition of the alien captive insurance company, the director may waive the requirement for completion of the captive annual statement for business written in the alien jurisdiction. Such waiver must be in writing and subject to public inspection./
Amend the bill further, Section 38-90-80(B) page 14 beginning on line 4 by deleting /(B) Section 38-13-60 applies to examinations conducted under this section./; on page 14, line 6 by deleting /(C)/ and inserting /B/; on page 14, line 22 by deleting /(D)/ and inserting /(C)/; and immediately after line 36 by inserting /(D) to the extent that the provisions of Chapter 13 do not contradict the provisions of this section, Chapter 13 applies to captive insurance companies licensed under this chapter./ so when amended Section 38-90-80 reads:
/Section 38-90-80.   (A)   At least once in three years, and whenever the director determines it to be prudent, the director personally, or by a competent person appointed by the director, shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this chapter. The director upon application, in his discretion, may enlarge the three-year period to five years, if a captive insurance company is subject to a comprehensive annual audit during that period of a scope satisfactory to the director by independent auditors approved by the director. The expenses and charges of the examination must be paid to the State by the company or companies examined and the department shall issue its warrants for the proper charges incurred in all examinations.

(B)   All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of documents produced by, obtained by, or disclosed to the director or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the director or an employee or agent of the director without the written consent of the company, except to the extent provided in this subsection. Nothing in this subsection prevents the director from using this information in furtherance of the director's regulatory authority under this title. The director may grant access to this information to public officers having jurisdiction over the regulation of


Printed Page 3100 . . . . . Tuesday, April 18, 2000

insurance in any other state or country, or to law enforcement officers of this State or any other state or agency of the federal government at any time, so long as the officers receiving the information agree in writing to hold it in a manner consistent with this section.

(C)(1)   This section applies to all business written by a captive insurance company; however, the examination for a branch captive insurance company must be of branch business and branch operations only, as long as the branch captive insurance company provides annually to the director, a certificate of compliance, or its equivalent, issued by or filed with the licensing authority of the jurisdiction in which the branch captive insurance company is formed and demonstrates to the director's satisfaction that it is operating in sound financial condition in accordance with all applicable laws and regulations of that jurisdiction.

(2)   As a condition of licensure, the alien captive insurance company shall grant authority to the director for examination of the affairs of the alien captive insurance company in the jurisdiction in which the alien captive insurance company is formed.

(D)   To the extent that the provisions of Chapter 13 do not contradict the provisions of this section, Chapter 13 applies to captive insurance companies licensed under this chapter./
Amend the bill further, beginning on page 15, line 41, by deleting Section 38-90-110 and inserting:
/   Section 38-90-110.   (A)   A captive insurance company may provide reinsurance, as authorized in this title, on risks ceded by any other insurer.

(B)   a captive insurance company may take credit for reserves on risks or portions of risks ceded to reinsurers complying with the provisions of Sections 38-9-200, 38-9-210 and 38-9-220. A captive insurer may not take credit for reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with Sections 38-9-200, 38-9-210, and 38-9-220./
Amend the bill further, Section 38-90-140 page 18 by deleting item (I) on lines 11 through 13./
Renumber sections to conform.
Amend totals and title to conform.

Rep. TRIPP explained the amendment.

Rep. FLEMING requested debate on the Bill.


Printed Page 3101 . . . . . Tuesday, April 18, 2000

Rep. TRIPP continued speaking.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

S. 721--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

S. 721 (Word version) -- Senator Saleeby: A BILL TO AMEND SECTION 42-7-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MANNER OF FUNDING THE SECOND INJURY FUND UNDER THE SOUTH CAROLINA WORKERS' COMPENSATION LAW, SO AS TO DELETE CERTAIN PROVISIONS, AND PROVIDE FOR THE MANNER OF ASSESSING SELF-INSUREDS AND INSURANCE CARRIERS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name PSD\AMEND\7174JM00), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/   SECTION   1.   Section 42-7-310 of the 1976 Code, as last amended by Section 995 of Act 181 of 1993, is further amended to read:

"Section 42-7-310.   (a)   There is hereby established, under the Budget and Control Board, the Second Injury Fund for the purpose of making payments in accordance with the provisions of Section 42-9-400, Section 42-9-410, and this section. The fund shall be administered by a director appointed by the State Budget and Control Board. The State Treasurer shall be the custodian of the fund, and all monies and securities in the fund shall be held in a separate and distinct trust account by the State Treasurer.

(b)   Disbursements from the fund shall be made with the approval of the director by forwarding a disbursement voucher, along with an itemized statement of payments and such other information as may be necessary to justify payment, to the Comptroller General who shall issue his warrant upon the State Treasurer in payment of the disbursement request.

Agreements to reimburse an employer or his carrier for compensation or medical benefits as provided in Section 42-9-400 or


Printed Page 3102 . . . . . Tuesday, April 18, 2000

42-9-410 shall be forwarded to the commission for approval. If approved and unappealed, such agreements shall be binding in the same manner as other orders, decisions, or awards of the commission.

When awards are made under Section 42-9-400 or 42-9-410 by the commission, it shall transmit to the director of the fund an official copy of such awards which shall contain the name of the employer, carrier, and employee to whom benefits were originally paid, an itemized statement of payments, and such other information as may be necessary to constitute a full record of the case. Upon the receipt of such official award, the director of the fund, if he approves the award, shall forward a disbursement voucher, along with an official copy, to the Comptroller General who shall issue his warrant upon the State Treasurer in payment of the claim. If the director intends to litigate or otherwise contest the award, he shall notify the commission of such intention. Any questions or controversies arising under this subsection shall be decided by the commission in the procedural manner now provided under this title.

(c)   The original funding of the Second Injury Fund shall be in a manner as follows:

(1)   From the State Accident Fund, the State Treasurer is hereby authorized and directed to transfer one hundred thousand dollars to be deposited in the Second Injury Fund.

(2)   The State Treasurer is hereby authorized and directed to deposit in the Second Injury Fund one third of the workers' compensation premium tax.

(3)   The State Treasurer shall deposit to the account of the Second Injury Fund the money authorized paid to the Workers' Compensation Commission under Section 42-9-140.

(d)   The funding of the Division of the Second Injury Fund on a continuing basis is by:

(1)   deposits to the account of the fund by the State Treasurer of those monies authorized to be paid to the Workers' Compensation Commission under Section 42-9-140; and

(2)   equitable assessments upon each carrier which, as used in this section, includes all insurance carriers, self-insurers, and the State Accident Fund. Each carrier, under regulations prescribed by the Workers' Compensation Commission, shall make payments to the fund in an amount equal to that proportion of one hundred seventy-five percent of the total disbursement made from the fund during the preceding fiscal year less the amount of net assets in the fund as of June thirtieth of the preceding fiscal year which the normalized


Printed Page 3103 . . . . . Tuesday, April 18, 2000

premium of each carrier bore to the normalized premium of all carriers during the preceding calendar year which the total benefits paid by such carrier bore to the total benefits paid by all carriers during the preceding calendar year. Each insurance carrier, self-insurer, and the State Accident Fund shall make payment based upon workers' compensation normalized premiums during the preceding calendar year. The charge to each insurance carrier is a charge based upon normalized premiums. An employer who has ceased to be a self-insurer shall continue to be liable for any assessments into the fund on account of any benefits paid by him during such calendar year. Any assessment levied or established in accordance with this section constitutes a personal debt of every employer or insurance carrier so assessed and is due and payable to the Second Injury Fund when payment is called for by the fund. In the event of failure to pay any assessment upon the date determined by the fund, the employer or insurance carrier may immediately be assessed a penalty in an amount not exceeding ten percent of the unpaid assessment. If the employer or insurance carrier fails to pay the assessment and penalty within thirty days, the director may file a complaint for collection against the employer or insurance carrier in a court of competent jurisdiction for the assessment, penalty, and interest at the legal rate, and the employer/carrier is responsible for attorney's fees and costs. The penalty and interest under this subsection are payable to the Second Injury Fund. At the time of the filing of the complaint, the fund shall also notify the South Carolina Department of Insurance and the South Carolina Workers' Compensation Commission, and these government agencies shall take the appropriate legal and administrative action immediately.

(3)   'Normalized premium' is defined as gross paid losses before salvage and subrogation times a factor representing normalized expenses. Normalized expenses include taxes, licenses, fees, general expenses, profit, contingencies, and other expenses as reported on the Insurance Expense Exhibit of the NAIC Annual Statement blank. This normalized expense factor shall be computed annually by the Workers' Compensation Commission by August first of each year and must be based upon aggregate expense information obtained from the Department of Insurance derived from insurers' most recently filed Annual Statements.

(e)   The director shall be authorized to employ necessary staff for administering the fund, and the monies necessary for administration of the fund shall be paid out of the fund. In furtherance of this purpose,


Printed Page 3104 . . . . . Tuesday, April 18, 2000

the Attorney General shall appoint a member of his staff to represent the fund in all proceedings brought to enforce claims against the fund."
SECTION   2.   This act takes effect upon approval by the Governor./
Amend title to conform.

Rep. TRIPP explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

S. 437--AMENDED AND DEBATE ADJOURNED

The following Bill was taken up:

S. 437 (Word version) -- Senators McConnell, Matthews, Courtney, Patterson, Reese, Hayes, Jackson and Passailaigue: 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 PERMIT, RATHER THAN REQUIRE, THE DEPARTMENT OF INSURANCE TO PROMULGATE REGULATIONS PRESCRIBING THE PARAMETERS OF THE CONTINUING EDUCATION REQUIREMENTS AND CHANGE THE COMPOSITION OF THE ADVISORY COMMITTEE; TO AMEND SECTION 38-77-580, AS AMENDED, RELATING TO THE SOUTH CAROLINA REINSURANCE FACILITY, SO AS TO CHANGE THE COMPOSITION OF THE FACILITY'S GOVERNING BOARD; TO PROVIDE THAT NOTHING INVOLVED IN THE AMENDMENT OF SECTION 38-77-580 IN THIS ACT SHALL BE CONSTRUED TO AFFECT OR CHANGE THE REPEAL OF THIS SECTION AS SCHEDULED FOR JANUARY 1, 2006; TO AMEND SECTION 38-91-130, RELATING TO THE ADVISORY BOARD FOR THE JOINT UNDERWRITING ASSOCIATION FOR PRIVATE PASSENGER AND COMMERCIAL AUTOMOBILE INSURANCE, SO AS TO CHANGE THE METHOD OF CHOOSING BOARD MEMBERS AND PROVIDE FOR RELATED MATTERS; TO PROVIDE THAT NOTHING INVOLVED IN THE AMENDMENT OF SECTION 38-91-130 IN THIS ACT SHALL BE CONSTRUED TO AFFECT OR CHANGE (1) THE PROVISION IN SECTION 20(B) OF ACT 154 OF 1997 THAT STATES THAT CHAPTER 91 OF TITLE 38 SHALL CEASE TO BE OF ANY FORCE OR EFFECT AFTER FEBRUARY


Printed Page 3105 . . . . . Tuesday, April 18, 2000

28, 2003 OR (2) ANY OTHER PROVISION CONTAINED IN SECTION 20(B) OF ACT 154 OF 1997; AND TO REPEAL SECTION 38-77-585, RELATING TO ADDITIONAL GOVERNING BOARD MEMBERS OF THE REINSURANCE FACILITY, UPON THE EFFECTIVE DATE OF THIS ACT NOTWITHSTANDING THE PROVISIONS OF SECTION 30 OF ACT 154 OF 1997 REGARDING THE REPEAL OF ARTICLE 5, CHAPTER 77 OF TITLE 38 ON JANUARY 1, 2006.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name PSD\AMEND\7175JM00), which was adopted:
Amend the bill, as and if amended, by striking Section 38-77-580, as contained in SECTION 2(A), and inserting:
/   "Section 38-77-580.   The operations and affairs of the facility are under the direction and control of a governing board of nineteen persons of whom four must be residents of South Carolina appointed by the Governor of South Carolina to represent consumers. The director shall appoint eight persons to represent the insurance industry;. in appointing these persons, the director shall select two from a list of not less than five nominated by the American Insurance Association from the officers or employees of insurers licensed in South Carolina and which are members or subscribers of that organization; he shall select two from a list of not less than five persons nominated by the American Mutual Insurance Alliance from the officers or employees of insurers licensed in South Carolina and which are members or subscribers of that organization; he shall select two from a list of not less than five persons nominated by the National Association of Independent Insurers from the officers or employees of insurers licensed in South Carolina and which are members or subscribers of that organization; he shall select two persons, one of whom must be an officer or employee of a stock insurer licensed in South Carolina and not a member or subscriber of any of these organizations, and one of whom must be an officer or employee of a nonstock insurer licensed in South Carolina and not a member or subscriber of any of these organizations; In making these appointments, the director may accept nominations for qualified individuals from the American Insurance Association, the National Association of Independent Insurers, The Alliance of American Insurers, and any other individual, group, or trade or professional association. however However, of the eight persons appointed to represent the insurance industry, not less than five


Printed Page 3106 . . . . . Tuesday, April 18, 2000

must be residents of South Carolina and those who are not residents of South Carolina must have job responsibilities that include the supervision over South Carolina operations; not less than two must be officers or employees of insurers licensed to transact automobile insurance in South Carolina and domiciled therein. The director shall appoint four six persons to represent producers, all of whom must be residents of South Carolina;. he shall select two such persons from a list of not less than five nominated by the stock agents' association and two from a list of not less than five persons nominated by the mutual agents' association. The state independent agents' association, the South Carolina Professional Auto Insurance Agents' Association, the state professional insurance agents' association, and any other individual, group, or insurance agent, trade, or professional association may nominate qualified candidates for appointment. Vacancies on the board must be published in newspapers of general, statewide circulation.

The director shall appoint two persons to represent the designated agents one of whom must be an officer of a premium service finance company and the other of whom must be a designated agent and both of whom must be residents of South Carolina. In addition, the Consumer Advocate is an ex-officio member of the governing board of the Reinsurance Facility. No person who is associated with any business within the meaning of Section 8-13-20, which is either subject to regulation by the Department of Insurance or which provides goods or services to the facility for compensation, is eligible for appointment to the board to represent consumers, except that any person serving on the board representing consumers on the effective date of this provision who would otherwise be disqualified from serving based on this provision may continue to serve for the remainder of his current term.

The director is chairman of the board, ex officio, but has no vote except in the case of a tie. The director, or his designated representative, shall preside over all meetings which must be held not less than quarterly in South Carolina at the times and places the director designates. However, upon the filing with the director of a request for a meeting signed by not fewer than five members of the board and specifying the subjects to be discussed at the proposed meeting, the director shall call a special meeting of the board to be held not less than fifteen nor more than thirty days after receipt of the request. Notice, in writing, of the special meeting must be provided members of the board.


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Members of the board shall serve one year two years or until their successors are appointed and have qualified. Any vacancy must be filled for the unexpired term only. The director may receive nominations from any individual, group, or insurance agent trade or professional association for any vacancy.

Amendment of the plan of operation may be made only at the annual meeting of the board or at a special meeting called by the director for that purpose and so specified in the notice of meeting. Amendments of the plan require the affirmative vote of two-thirds of all the board members and are subject to the approval of the director or his designee. The director or his designee may approve amendments only if they are consistent with the purposes of this chapter. If the consumer-representative members of the board unanimously dissent from a proposed amendment and specify their reasons for dissent in writing, the director or his designee may not approve the amendment until after a public hearing addressed to the reasons for the dissent.

The director may make provision for voting by proxy at meetings.

The director or his designee, through the department, may propose to the board any amendment to or modification of the plan that the director or his designee considers to be necessary to render the plan reasonable or consistent with the purposes of this chapter, specifying in writing the reasons for any proposed amendment or modification. In the event that the board fails to adopt his proposed amendment or modification, the director or his designee may, after notice and public hearing addressed to the reasons for the proposed amendment or modification, promulgate the amendment or modification considered necessary to render the plan reasonable or consistent with the purposes of this chapter."   /
Amend title to conform.

Rep. TRIPP explained the amendment.
The amendment was then adopted.

Rep. TRIPP explained the Bill.

Rep. TRIPP moved to adjourn debate on the Bill until Wednesday, April 19, which was agreed to.


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H. 4651--REQUEST FOR DEBATE, AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4651 (Word version) -- Reps. Witherspoon, Altman, Askins, Barfield, Barrett, Battle, Bowers, G. Brown, Carnell, Cato, Cooper, Dantzler, Davenport, Edge, Harrison, Hawkins, Hayes, J. Hines, Inabinett, Keegan, Kennedy, Klauber, Koon, Lanford, Lee, Limehouse, Littlejohn, Loftis, Lucas, Maddox, Martin, McCraw, W. McLeod, McMahand, Ott, Phillips, Rhoad, Rice, Riser, Robinson, Sandifer, Sharpe, Taylor, Townsend, Tripp, Trotter, Walker, Webb, Whatley, Wilkes, Allen, Chellis, Haskins, Kirsh, Leach, Meacham-Richardson, Miller, Moody-Lawrence, Parks, Rodgers, Simrill and Stille: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 TO TITLE 39 SO AS TO ENACT "THE FAIR PRACTICES OF FARM, CONSTRUCTION, INDUSTRIAL, AND OUTDOOR POWER EQUIPMENT MANUFACTURERS, DISTRIBUTORS, WHOLESALERS, AND DEALERS ACT" TO PROVIDE FOR THE PRACTICES OF MANUFACTURERS, DISTRIBUTORS, WHOLESALERS, AND DEALERS OF FARM, CONSTRUCTION, INDUSTRIAL, AND OUTDOOR POWER EQUIPMENT, INCLUDING SPECIFICATION AND PROHIBITION OF CERTAIN UNFAIR ACTS OF TRADE AND COMPETITION, AND TO PROVIDE FOR JURISDICTION, VENUE, STATUTE OF LIMITATIONS, PRIMA FACIE EVIDENCE, AND LEGAL AND EQUITABLE REMEDIES FOR ACTIONS ARISING OUT OF A VIOLATION OF ITS PROVISIONS.

Rep. MCGEE requested debate on the Bill.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name DKA\AMEND\3840MM00), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION   1.   Title 39 of the 1976 Code is amended by adding:

"CHAPTER 6
Fair Practices of Farm, Construction, Industrial, and Outdoor Power Equipment Manufacturers, Distributors,
Wholesalers, and Dealers


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Section 39-6-10.   This chapter may be cited as the 'Fair Practices of Farm, Construction, Industrial, and Outdoor Power Equipment Manufacturers, Distributors, Wholesalers, and Dealers Act'.

Section 39-6-20.   As used in this chapter, unless the text requires otherwise:

(1)   'Dealer' or 'equipment dealer' means a person who sells or attempts to effect the sale of equipment, but not including a:

(a)   distributor or wholesaler;

(b)   receiver, trustee, administrator, executor, guardian, or other person appointed by or acting pursuant to the judgment or order of a court;

(c)   public officer while performing his official duties;

(d)   person disposing of equipment acquired for his own use and used in good faith, not for the purpose of avoiding the law;

(e)   finance company or other financial institution that sells repossessed equipment;

(f)     single line dealer primarily engaged in the retail sale and service of off-road construction and earth-moving equipment. For these purposes, 'single line dealer' is any individual, partnership, corporation, limited liability company, or other legal entity that has:

(i)   purchased seventy-five percent or more of its total new product inventory from a single supplier under all agreements with that supplier; and

(ii)   a total annual average sales volume in excess of forty-five million dollars for the preceding two years with that single supplier for the territory for which the individual, partnership, corporation, limited liability company, or other legal entity is responsible; or

(g)   a person or business who sells only component parts equipment;

(h)   multi-line dealer primarily engaged in the retail sale and service of industry and outdoor power equipment. for these purposes, 'multi-line dealer' is any individual, partnership, corporation, limited liability company, or other legal entity that has:

(i)   purchased less than fifty percent of its total new product inventory from a single supplier under all agreements with that supplier; and

(ii)   a total annual average sales volume in excess of fifty million dollars.

(2)   'Dealership' means the business of selling or attempting to effect the sale by a dealer of new equipment, or the right, whether by


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written or oral arrangement with a manufacturer, distributor, or wholesaler for a definite or indefinite period of time, to sell or attempt to effect the sale of new equipment.

(3)   'Dealership agreement' means an oral or written arrangement for a definite or indefinite period in which a manufacturer, distributor, or wholesaler grants to an equipment dealer a license to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the marketing of equipment or services related to it at wholesale, retail, leasing, or otherwise.

(4)   'Distributor' means a person who sells or distributes new equipment to equipment dealers or who maintains distributor representatives within the State.

(5)   'Distributor branch' means a branch office maintained by a distributor that sells or distributes new equipment to equipment dealers.

(6)   'Distributor representative' means a representative employed by a distributor branch or distributor.

(7)   'Equipment' means machinery, implements, or mechanical devices or apparatuses used in farming, construction, or industry and any outdoor power equipment, but not including:

(a)   motor vehicles required to be registered pursuant to Section 56-3-110;

(b)   motorcycles as defined in Section 56-16-10;

(c)   outdoor power equipment sold by a retailer whose sales of that outdoor power equipment represent less than ten percent of the retailer's total gross sales in the United States;

(d)   outdoor power equipment whose primary source of power is a two-cycle or electric motor;

(e)   'all terrain vehicles' or 'ATVs' that are three-and-four-wheeled motorized vehicles, generally characterized by large, low-pressure tires, a seat designed to be straddled by the operator and handlebars for steering, which are intended for off-road use by an individual rider on various types of nonpaved terrain;

(f)   cranes; or

(g)   tires.

(8)   'Factory branch' means a branch office maintained by a manufacturer that makes or assembles equipment for sale to distributors or equipment dealers or that is maintained for directing and supervising the representatives of the manufacturer.

(9)   'Factory representative' means a representative employed by a manufacturer or by a factory branch for the purpose of selling or promoting the sale of equipment or for supervising, servicing,


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instructing, or contracting with equipment dealers or prospective equipment dealers.

(10)   'Fraud' means, in addition to its customary definitions:

(a)   a misrepresentation in any manner of a material fact, whether intentionally false or due to gross negligence;

(b)   a promise or representation made dishonestly and in bad faith; and

(c)   an intentional failure to disclose a material fact.

(11)   'Manufacturer' means a person engaged in the business of manufacturing or assembling new and unused equipment.

(12)   'New equipment' means equipment that has not been sold previously to a person other than a distributor or wholesaler or equipment dealer for resale.

(13)   'Person' means a natural person, corporation, partnership, trust, or other entity, including any other entity in which it has a majority interest or of which it has control, as well as the individual officers, directors, and other persons in active control of the activities of each entity.

(14)   'Sale' means the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation, or mortgage, whether by transfer in trust or any other form, of any equipment or interest in it or of a dealership agreement or sales agreement related to it, and any option, subscription, or contract, or solicitation, looking to a sale, or offer or attempt to sell, whether spoken or written, or any other form. A gift or delivery of equipment or a dealership as a bonus on account of the sale of anything is a sale of the equipment or dealership.

(15)   'Wholesaler' or 'equipment wholesaler' mean a person who sells or attempts to effect the sale of new equipment exclusively to equipment dealers or to other wholesalers.

Section 39-6-30.   A person who engages directly or indirectly in purposeful contacts within this State in connection with the offering or advertising of equipment for sale or has business dealings with respect to equipment within this State is subject to the provisions of this chapter and to the jurisdiction of the courts of this State upon service of process in accordance with the provisions of Chapter 9, Title 15.

Section 39-6-40.   Unfair methods of competition and unfair or deceptive acts or practices are unlawful as provided in Section 39-6-50, Chapters 5 and 7 of Title 39, and the Federal Trade Commission Act.

Section 39-6-50.   (A)   It is a violation of Section 39-6-40 for a manufacturer, factory branch, factory representative, distributor, or wholesaler, distributor branch, or distributor representative to engage in


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an action that is arbitrary, unconscionable, or in bad faith and that causes damage to any of the parties, the equipment dealer, or to the public.

(B)   It is a violation of Section 39-6-40 for a manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative of it, to coerce or attempt to coerce an equipment dealer to order or accept delivery of:

(1)   equipment or parts or accessories or other commodity that the equipment dealer has not voluntarily ordered, except as required by applicable law or unless required by a supplier as safety parts or safety accessories;

(2)   equipment with special features or accessories not included in the list price of the equipment as publicly advertised by the manufacturer of the equipment; or

(3)   any parts, accessories, equipment, machinery, tools, or other commodity for a person.

(C)   It is a violation of Section 39-6-40 for a manufacturer, a distributor, a wholesaler, a distributor branch or division, a factory branch or division, or a wholesale branch or division, or officer, agent, or other representative of it to:

(1)   discriminate, directly or indirectly, in filling an order for the purchase or lease of new equipment placed by a dealer of its product line or model:

(a)   as between dealers of the same product line or model; or

(b)   as between dealers and persons that purchase or lease new equipment directly from the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division;

(2)   coerce or attempt to coerce an equipment dealer to enter into an agreement with the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent or other representative of it, or to do any other act prejudicial to the dealer by threatening to cancel a dealership agreement or contractual agreement existing between the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, and the dealer, except that notice in good faith to an equipment dealer of the dealer's violation of terms or provisions of the dealership agreement or contractual agreement is not a violation of Section 39-6-40;


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(3)   terminate or cancel the dealership agreement or selling agreement of dealer without due cause. 'Due cause' means failure by the dealer to comply with reasonable requirements imposed on the dealer by a dealer agreement if the requirements do not differ materially from those imposed on other similarly situated dealers in this state. 'Due cause' also means that the dealer consistently fails to:

(a)   provide service and replacement parts or perform warranty obligations, or the dealer otherwise engages in business practices that are detrimental to the consumer or the manufacturer including excessive pricing or misleading advertising;

(b)   provide adequate sales, service, or parts personnel commensurate with the dealer agreement;

(c)   meet reasonable building and housekeeping requirements;

(d)   comply with the applicable licensing laws pertaining to products and services the dealer represents as being on behalf of the manufacturer;

(e)   meet the manufacturer's market penetration requirements based on available record information after receiving notice from the manufacturer of the requirements as provided in Section 39-6-60(D).

(4)   sell or offer to sell new equipment to an equipment dealer at a lower actual price than the actual price offered to another equipment dealer for the same new equipment, except that this provision does not apply to sales by a manufacturer, distributor, or wholesaler to the United States Government or an agency of it or prohibit a manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesaler branch or division from granting an equipment dealer a bonus based upon the volume of the dealer's sales, provided that the volume bonus is offered the other dealers of the same product line or make of new equipment having the same sales volumes;

(5)   sell or offer to sell parts or accessories to a new equipment dealer for use in his own business, for the purpose of repairing or replacing them on a comparable part or accessory, at a lower actual price than the actual price charged to another new equipment dealer for similar parts or accessories for use in his own business;

(6)   prevent or attempt to prevent by contract or otherwise an equipment dealer from changing the capital structure of his dealership or the means by or through which he finances the operation of his dealership, provided that the dealer at all times meets reasonable


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capital standards agreed to between the dealer and the manufacturer, distributor, or wholesaler, and provided that the change by the dealer does not result in a change in the executive management of the dealership.

(7)   prevent or attempt to prevent by contract or otherwise an equipment dealer or any officer, partner, or stockholder of an equipment dealer from selling or transferring any part of his interest to another person; except that a dealer, officer, partner, or stockholder may not sell, transfer, or assign the dealership agreement or power of management or control under it without the consent of the manufacturer, distributor, or wholesaler, but that consent may not be withheld unfairly or unreasonably.

(8)   obtain money, goods, services, anything of value, or another benefit from a person with whom the equipment dealer does business, on account of or in relation to the transactions between the dealer and that other person, unless the benefit is accounted for and transmitted promptly to the equipment dealer;

(9)   require an equipment dealer to assent to a release, assignment, novation, waiver, or estoppel that would relieve a person from liability imposed by Section 39-6-40.

Section 39-6-60.   (A)   Except as provided in subsection (E), a manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative of it shall notify an equipment dealer in writing of the termination or cancellation of the dealership agreement or selling agreement of the dealer at least one hundred eighty days before its effective date, stating the specific grounds for the termination or cancellation.

(B)   The manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative of it shall notify an equipment dealer in writing at least one hundred eighty days before the contractual term of his dealership agreement or selling agreement expires that the agreement will not be renewed, stating the specific grounds for the nonrenewal in those cases where there is no intention to renew. The contractual term of a dealership agreement or selling agreement may not expire, without the written consent of the equipment dealer involved, before the expiration of at least one hundred eighty days following the written notice.

(C)   During the one hundred eighty-day period, either party may petition a court to modify the one hundred eighty-day stay or to extend


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it pending a final determination of the proceedings on the merits. The court may grant preliminary and final injunctive relief pursuant to the Rules of Civil Procedure.

(D)   Before termination or nonrenewal of the dealership agreement or selling agreement because of the dealer's failure to meet reasonable marketing criteria or market penetration, the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, shall provide written notice of the intention at least one year in advance. After the notice, the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division shall provide fair and reasonable efforts to work with the equipment dealer to gain the desired market share including, without limitation, reasonably making available to the dealer an adequate inventory of new equipment and parts and competitive marketing programs. The manufacturer, distributor, factory branch or division, or wholesale branch or division, at the end of the one-year notice period, may terminate or elect not to renew the agreement only upon written notice specifying the reasons for determining that the dealer failed to meet reasonable criteria or market penetration. This written notice must specify that termination or nonrenewal is effective one hundred eighty days from the date of the notice. Either party may petition the court pursuant to subsection (C).

(E)   Immediate notice of termination without an opportunity to cure is considered reasonable if, during the agreement term, the equipment dealer:

(1)   is declared bankrupt or is determined judicially to be insolvent, assigns all or a substantial part of his assets to or for the benefit of a creditor, or admits his inability to pay his debts as they come due;

(2)   abandons the dealership agreement or sales agreement by failing to operate the business for five consecutive days that the equipment dealer is required to operate the business pursuant to the terms of the dealership agreement or sales agreement, or any shorter period after which it is reasonable under the facts and circumstances for the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division to conclude that the equipment dealer does not intend to continue to operate pursuant to the dealership agreement or sales agreement, unless the failure to operate is due to fire, flood, earthquake, or other similar causes beyond the equipment dealer's control;


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(3)   agrees in writing with the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division agrees to terminate the dealership agreement or sales agreement;

(4)   makes a misrepresentation material to the acquisition of the dealership agreement or sales agreement or engages in conduct that reflects materially and unfavorably upon the reputation of the business of the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division;

(5)   fails to comply with a federal, state, or local law or regulation applicable to the operation of his business for a period of ten days after notification of noncompliance; or

(6)   has his business or business premises seized, taken over, or foreclosed by a government official in the exercise of his duties or by a creditor, lienholder, or lessor, and a final judgment against the dealer remains unsatisfied for thirty days absent a filing of a supersedes or other appeal bond, or a levy of execution is made upon a license granted by the dealership agreement or sales agreement and it is not discharged within five days of the levy;

(7)   makes a material misrepresentation or falsification of a record;

(8)   pleads guilty to or is convicted of a felony;

(9)   transfers a controlling ownership interest in the dealership without the manufacturer's consent, except that the manufacturer may not withhold consent unfairly or unreasonably;

(10)   relocates or establishes a new or additional dealer location without the supplier's consent;

(11)   fails to satisfy a payment obligation as it comes due and payable to the manufacturer; or

(12)   fails to account promptly to the manufacturer for proceeds from the sale of equipment or to hold those proceeds in trust for the manufacturer's benefit.

Section 39-6-70.   (A)(1)   It is unlawful for a manufacturer, distributor, or wholesaler or any parent, affiliate, wholly or partially owned subsidiary, officer, or representative of a manufacturer, distributor, or wholesaler to:

(a)   own, operate, or control or to participate in the ownership, operation, or control of a new equipment dealer in this State;

(b)   establish in this State an additional dealer or dealership in which that person or entity has an interest; or


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(c)   own, operate, or control, directly or indirectly, an interest in a dealer or dealership in this State.

(2)   This subsection does not prohibit the making of a loan by a manufacturer, distributor, or wholesaler to any person or entity for the purpose of acquiring a dealer or dealership, nor does it prohibit the ownership, operation, or control of a new equipment dealer by a manufacturer, distributor, or wholesaler:

(a)   for a temporary period, not to exceed three years, during the transition from one owner or operator to another;

(b)   if a prospective new equipment dealer is not available to own or operate the dealership within a particular geographic market area not serviced by an existing dealer and the manufacturer, distributor, or wholesaler contracts with or employs a third party to open or operate a dealership owned or controlled by the manufacturer, distributor, or wholesaler pursuant to a bona fide written agreement or plan giving a third party ownership of the new equipment dealer or dealership over time;

(c)   during the period the new equipment dealer is being sold pursuant to a bona fide contract, shareholder agreement, or purchase option to the operator of the dealership; or

(d)   if the manufacturer, distributor, or wholesaler is an owner, operator, or controller as of January 1, 2000, of a dealership that has been engaged in the retail sale of equipment within the same geographical market area for a continuous two-year period of time immediately before January 1, 2000, and a prospective new equipment dealer is not available to own or operate the dealership in a manner consistent with the public interest.

(B)   It is unlawful for a manufacturer, distributor, or wholesaler or any parent, affiliate, wholly or partially owned subsidiary, officer, or representative of a manufacturer, distributor, or wholesaler to compete unfairly with a new equipment dealer of the same product line or make of new equipment operating pursuant to a dealership agreement or sales agreement in this State. Except as otherwise provided in this section, the mere ownership, operation, or control of a new equipment dealer by a manufacturer, distributor, or wholesaler is not a violation of this section.

Section 39-6-80.   (A)   A manufacturer, distributor, or wholesaler who intends to establish a new dealer or dealership or to relocate a current dealer or dealership for a particular product line or make of new equipment within the geographic market area of an existing dealer of the same product line or make of new equipment shall give written


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notice of that intent by certified mail to the existing dealer. The notice must include the following information about the new or relocated dealer or ownership:

(1)   specific location;

(2)   date of commencement of operation at the new location;

(3)   identities of all existing dealers or dealerships located in its market area; and

(4)   names and addresses of the dealer and principals.

(B)   An existing dealer located in the geographic market area in which a manufacturer, distributor, or wholesaler intends to establish a new dealership or to relocate a current dealer may petition the court, within sixty days of the receipt of the notice, to enjoin or prohibit the establishment of the new or relocated dealer or dealership within the geographic market area of the existing dealer. The court may enjoin or prohibit the establishment of the new dealer or dealership or relocation of a current dealer within the geographic market area of the existing dealer if the dealer proves by a preponderance of the evidence that the existing dealer is providing adequate representation of the product line or make of new equipment in his geographic market area. In determining if the existing dealer is providing adequate representation and whether the new or relocated dealer or dealership is necessary, the court may consider, but is not limited to considering:

(1)   the impact the establishment of the new or relocated dealer or dealership will have on users of new equipment, the public, and the existing dealer, except that financial impact may be considered only with respect to the existing dealer;

(2)   the size and permanency of investment reasonably made and the reasonable obligations incurred by the existing dealer to perform its obligation pursuant to the dealership agreement or sales agreement;

(3)   the reasonably expected market penetration of the product line or make of equipment for the geographic market area, after consideration of all factors that may affect the penetration including, but not limited to, demographic factors such as age, income, education, size class preference, product popularity, retail lease transactions, and other factors affecting sales of equipment in the geographic market area;

(4)   actions by the manufacturer, distributor, or wholesaler in denying its existing dealer of the same product line or make of equipment the opportunity for reasonable growth, market expansion, or relocation including the availability of equipment in keeping with


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reasonable expectations of the manufacturer, distributor, or wholesaler in providing an adequate number of dealerships in the geographic market area;

(5)   attempts by the manufacturer, distributor, or wholesaler to coerce the existing dealer into consenting to an additional or relocated dealer or dealership of the same product line or make of new equipment in the geographic market area;

(6)   distance, travel time, traffic patterns, and accessibility between the existing dealer's place of business for the same product line or make of new equipment and location of the proposed new or relocated dealer or dealership;

(7)   the likelihood of benefits to users of new equipment from the establishment or relocation of the dealer or dealership, which may not be obtained by other demographic changes or other expected changes in the geographic market area;

(8)   if the existing dealer is in substantial compliance with its dealership agreement or sales agreement;

(9)   if there is adequate interbrand and intrabrand competition with respect to the product line or make of new equipment, including the adequacy of sales and service facilities;

(10)   if the establishment or relocation of the proposed dealer or dealership appears to be warranted and justified based on economic and market conditions pertinent to dealers competing in the geographic market area including anticipated changes; and

(11)   the volume of registrations and service business transacted by the existing dealer in the geographic market area of the proposed dealer or dealership.

(C)   This section does not apply to the:

(1)   addition of a new dealership at a location that is within a three-mile radius of a former dealership of the same product line or make of new equipment that has been closed for less than two years;

(2)   relocation of an existing dealer to a new location that is farther away from the protesting dealer's location than the relocated dealer's previous location; or

(3)   relocation of an existing dealer to a new location that is within a three-mile radius of the dealer's current location, when it has been at the current location at least ten years.

Section 39-6-90.   (A)   A manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division may sell or lease new equipment for use within this State. If the equipment is prepared for delivery or serviced by a dealer,


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the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division reasonably shall compensate the dealer in the relevant geographical market area as defined in subsection (B) for preparation and delivery of the new equipment and pay to the dealer a reasonable commission on the sale or lease of the new equipment. This compensation must be paid or credited in the same manner as provided in Section 39-6-100.

(B)   For purposes of this section, equipment is considered to be used primarily within a dealer's geographic market area if the new equipment is located or housed at a user's facility located within that geographic market area.

Section 39-6-100.   (A)   Each manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division must fulfill properly a warranty agreement and compensate adequately and fairly each of its equipment dealers for labor and parts. All claims made by equipment dealers pursuant to this section for the labor and parts and pursuant to Section 39-6-90 must be paid within thirty days following their approval. All claims must be approved or disapproved within thirty days after their receipt. The equipment dealer who submits a disapproved claim must be notified in writing of its disapproval within that period, and the notice must state the specific grounds for the disapproval. Special handling of claims required by the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, but not uniformly required of all dealers of that make, may be enforced only after thirty days' notice in writing of good and sufficient reason.

(B)   An audit for sales incentives, service incentives, rebates, or other forms of incentive compensation may include only the twelve-month period immediately following the date of the termination of the incentive compensation program. This limitation is not effective in the case of fraudulent claims.

(C)   It is unlawful to deny, delay payment for, or restrict a claim by a dealer for payment or reimbursement for warranty service or parts, incentives, hold-backs, or other amounts owed to the dealer unless the denial, delay, or restriction is the direct result of a material defect in the claim that affects its validity, except that the manufacturer, distributor, distributor branch or division, factory branch or division, or wholesale branch or division may withhold payment as setoff against obligations otherwise owed by the dealer to the manufacturer, distributor,


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distributor branch or division, factory branch or division, or wholesale branch or division.

Section 39-6-110.     (A)   It is unlawful to impose, directly or indirectly, unreasonable restrictions on the equipment dealer relative to transfer, sale, renewal, termination, discipline, noncompetition, or site-control.

(B)   A manufacturer may not prevent a dealer from having an investment in or holding a dealership contract for the sale of competing product lines or makes of equipment.

(C)   This section does not prevent a manufacturer from requiring that competing lines of equipment be established in separate facilities. Written notice must be provided to a dealer by the manufacturer at least four years before requiring separate facilities for competing lines of equipment.

Section 39-6-120.   The provisions of this chapter apply to all written and oral agreements between a manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division and an equipment dealer including, but not limited to, the dealership agreement, goods and services sales contracts, advertising contracts, leases or mortgages of real or personal property, promises to pay, security interests, pledges, insurance contracts, construction or installation contracts, servicing contracts, and all other agreements in which the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division has any direct or indirect interest.

Section 39-6-130.   It is unlawful for the manufacturer, wholesaler, distributor, distributor branch or division, factory branch or division, or wholesale branch or division without due cause to fail to renew or to terminate a dealership agreement.

Section 39-6-140.     A person who is injured in his business or property by reason of a violation of this chapter may sue in the court of common pleas and may recover only the actual damages sustained by him and the cost of suit, including a reasonable attorney's fee.

Section 39-6-150.   Actions rising out of this chapter must be commenced within three years after the cause of action accrues, except that if a liable person conceals the cause of action from the knowledge of the person entitled to bring it, the period prior to the discovery of his cause of action by the entitled person is excluded in determining the time limited for the commencement of the action. If a cause of action accrues against a person during the pendency against him of any civil, criminal, or administrative proceeding brought by the United States, or


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any of its agencies, pursuant to the antitrust laws, the Federal Trade Commission Act, or other federal act, or the laws of this State related to antitrust laws or to franchising, actions brought pursuant to this chapter may be commenced within one year after the final disposition of the civil, criminal, or administrative proceeding.

Section 39-6-160.   A provision of a contract or a practice pursuant to a contract in violation of this chapter is against public policy and unenforceable.

Section 39-6-170.     A contract entered into after July 1, 2000 and covered by this chapter, may not establish requirements for venue and jurisdiction.
Section 39-6-180.   If a section, paragraph, provision, or portion of this chapter is held to be unconstitutional or invalid by a court of competent jurisdiction, this holding does not affect the constitutionality or validity of the remaining portions of this chapter, and for this purpose the General Assembly declares that the provisions of this act are severable from each other."
SECTION   2.   This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals and title to conform.

Rep. LAW explained the amendment.
The amendment was then adopted.

Rep. LAW proposed the following Amendment No. 2 (Doc Name COUNCIL\DKA\AMEND\3841MM00), which was adopted:
Amend the bill, as and if amended, Section 39-6-20(7), SECTION 1, page 3, beginning on line 15, by striking subitem (c) in its entirety.
Reletter subitems to conform.
Renumber sections to conform.
Amend totals and title to conform.

Rep. LAW explained the amendment.
The amendment was then adopted.

Rep. LAW proposed the following Amendment No. 3 (Doc Name COUNCIL\DKA\AMEND\3847MM00), which was adopted:
Amend the amendment, as and if amended, offered by the Labor, Commerce and Industry Committee, bearing document Number V:\


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COUNCIL\DKA\AMEND\3840MM00, beginning on page 36, by deleting Section 39-6-90(A), as contained in SECTION 1, and inserting:
/ (A)   A manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division may sell or lease new equipment for use within this State. If the equipment is prepared for delivery or serviced by a dealer, the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division reasonably shall compensate the dealer for preparation and delivery of the new equipment and pay to the dealer a reasonable commission on the sale or lease of the new equipment. The manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, if practicable, shall utilize the dealer in the relevant geographical market area, as defined in subsection (B), for preparation and delivery. This compensation must be paid or credited in the same manner as provided in Section 39-6-100. /
Amend title to conform.

Rep. LAW explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 4617--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4617 (Word version) -- Rep. Davenport: A BILL TO AMEND SECTION 40-11-370, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENGAGING IN CONSTRUCTION PURSUANT TO A LICENSE, SO AS TO DEFINE "ENGAGING IN CONSTRUCTION" AND TO REQUIRE THAT A LICENSED CONTRACTOR ENGAGE IN CONSTRUCTION IN THE EXACT LICENSED NAME; AND TO AMEND SECTION 40-11-410, AS AMENDED, RELATING TO LICENSE CLASSIFICATIONS AND SUBCLASSIFICATIONS SO AS TO DELETE "GLASS" AND "GLAZING" FROM THE SUBCLASSIFICATION OF "INTERIOR RENOVATION" AND TO ADD AND DEFINE "GLASS AND GLAZING" AS A SUBCLASSIFICATION OF "GENERAL CONTRACTORS SPECIALTY".


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The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name NBD\AMEND\11971AC00), which was adopted:
Amend the bill, as and if amended, the unlettered subitem added to Section 40-11-410(4) page 2, line 29 by deleting /subclassifications of renovation and structural shapes/ and inserting /subclassifications of renovation, structural shapes, and architectural aluminum glazing systems which include aluminum entrance doors and frame systems, entrance and egress hardware, curtain wall systems, sliding doors/mall fronts, overhead glazing systems, and architectural window systems and accessories/ so when amended the unlettered subitem added to Section 40-11-410(4) reads:
/"( )   'Glass and Glazing' which includes, but is not limited to, commercial, residential, industrial, institutional, modular, and all other types of glass and glazing construction. The construction is limited to selection, cutting, assembling, and installing all makes and kinds of glass for windows, sash and doors, metal frames, ornamental decorations, mirrors, and tub and shower enclosures. This license classification includes all work under the subclassifications of renovation, structural shapes, and architectural aluminum glazing systems which include aluminum entrance doors and frame systems, entrance and egress hardware, curtain wall systems, sliding doors/mall fronts, overhead glazing systems, and architectural window systems and accessories. Contractors engaged solely in residential construction must be licensed or registered with the South Carolina Residential Builders' Commission and are not required to have this classification. The board may require an applicant to pass an examination before licensure as provided by this chapter."/
Renumber sections to conform.
Amend totals and title to conform.

Rep. DAVENPORT explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.


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H. 4767--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4767 (Word version) -- Rep. Haskins: A BILL TO AMEND SECTION 6-9-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TIME THAT CERTAIN BUILDING CODES AND STANDARDS MUST BE ADOPTED BY THE STATE MUNICIPALITIES AND COUNTIES AFTER THE ESTABLISHMENT OF A BUILDING INSPECTION DEPARTMENT, SO AS TO PROHIBIT THE ADOPTION BY THE STATE OF ANY PORTION OF A REGIONAL OR NATIONAL BUILDING CODE THAT RELATES PRIMARILY TO SAFETY UNDER CERTAIN CONDITIONS; AND TO AMEND SECTION 6-9-120, RELATING TO EXEMPTING WATER OR SEWER SYSTEMS FROM THE PROVISIONS OF CHAPTER 9, TITLE 6 (BUILDING CODES), SO AS TO EXEMPT LANDSCAPE IRRIGATION SYSTEMS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SKB\ AMEND\18319SOM00), which was adopted:
Amend the bill, as and if amended, by striking SECTION 1 in its entirety.
Renumber sections to conform.
Amend title to conform.

Rep. HASKINS explained the amendment.
The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

S. 304--REQUESTS FOR DEBATE AND OBJECTION

The following Bill was taken up:

S. 304 (Word version) -- Senators Hayes and Giese: A BILL TO AMEND CHAPTER 47, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PHYSICIANS, SURGEONS, AND OSTEOPATHS, AND THE STATE BOARD OF MEDICAL EXAMINERS, BY ADDING ARTICLE 7 SO AS TO PROVIDE FOR THE LICENSURE AND REGULATION OF DIETETICS; TO


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ESTABLISH THE COMMITTEE OF DIETETICS AS AN ADVISORY COMMITTEE TO THE BOARD AND TO PROVIDE FOR ITS POWERS AND DUTIES; TO ESTABLISH FEES; AND TO PROVIDE PENALTIES.

Reps. KLAUBER, MCGEE, TROTTER, WITHERSPOON, BARFIELD, KIRSH, CHELLIS, PERRY, ROBINSON, DAVENPORT, PHILLIPS, QUINN and EDGE requested debate on the Bill.

Rep. COOPER objected to the Bill.

H. 4802--REQUEST FOR DEBATE AND ORDERED TO THIRD READING

The following Joint Resolution was taken up:

H. 4802 (Word version) -- Reps. Breeland, J. Brown, Clyburn, Davenport, Fleming, Hayes, J. Hines, Howard, Keegan, Kelley, Lee, Lloyd, Mack, Maddox, Moody-Lawrence, Parks, Pinckney, Rodgers, Rutherford, Scott, Simrill, J. Smith, Whatley and Robinson: A JOINT RESOLUTION TO ESTABLISH A COMMITTEE TO STUDY CERTAIN ISSUES AFFECTING VETERANS AND PROVIDE FOR RELATED MATTERS INCLUDING, BUT NOT LIMITED TO, COMMITTEE MEMBERSHIP AND DUTIES, THE FILLING OF VACANCIES, AND COMMITTEE MEETINGS AND STAFFING.

Rep. BREELAND explained the Joint Resolution.

Rep. LITTLEJOHN requested debate on the Joint Resolution.

The Joint Resolution was read second time and ordered to third reading.

H. 4555--ORDERED TO THIRD READING

The following Bill was taken up:

H. 4555 (Word version) -- Reps. J. Smith and Walker: A BILL TO AMEND SECTION 20-7-9710, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA FIRST STEPS TO SCHOOL READINESS BOARD OF TRUSTEES, SO AS TO ADD THE CHIEF EXECUTIVE OFFICER OF THE STATE BOARD FOR


Printed Page 3127 . . . . . Tuesday, April 18, 2000

TECHNICAL AND COMPREHENSIVE EDUCATION AS AN EX OFFICIO NONVOTING MEMBER OF THE BOARD.

Rep. WALKER explained the Bill.

The Bill was read second time and ordered to third reading by a division vote of 50 to 9.

Rep. LEACH moved that the House do now adjourn, which was agreed to.

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 4916 (Word version) -- Reps. Carnell, Klauber, Parks, Taylor, Wilder, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Bowers, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Cato, Chellis, Clyburn, Cobb-Hunter, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham-Richardson, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Perry, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Seithel, Sharpe, Sheheen, Simrill, F. Smith, J. Smith, R. Smith, D. Smith, Stille, Stuart, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION COMMENDING AND THANKING DR. WILLIAM C. (BILL) MORAN FOR HIS OUTSTANDING, DEDICATED SERVICE AS PRESIDENT OF LANDER UNIVERSITY, AND WISHING HIM SUCCESS AND HAPPINESS FOLLOWING HIS RETIREMENT.


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ADJOURNMENT

At 1:15 p.m. the House, in accordance with the motion of Rep. FLEMING, adjourned in memory of Jimmy Gault, county councilman of Jonesville, to meet at 10:00 a.m. tomorrow.

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