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


Printed Page 2952 . . . . . Thursday, May 11, 2000

Thursday, May 11, 2000
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:

Beloved, St. Paul wrote a second letter to the Corinthians. Hear lofty words from Chapter 4:18:

"The things which are seen are temporal;

But the things which are not seen are eternal."
Let us pray.

Our Heavenly Father, You are the light of all our days. You are the giver of every perfect gift. We are so prone to set our sights on the things that we can see, feel, hear, touch or smell. Such is our humanity, creatures of our physical senses.

You are the fountain of our being!

We are grateful for these moments of prayer and spiritual meditation. We pause for orientation upon the spiritual values that make life GOOD, that give us HOPE in a world of stress and uncertainty.

Help us to make our land a land where people are of more value than the THINGS they make where property is a tool of the person.

Help us to dedicate our science not to destruction but to the building and preservation of a culture where brotherhood, truth and beauty prevail.
Amen.

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

MESSAGE FROM THE GOVERNOR

The following appointments were transmitted by the Honorable James H. Hodges:

Statewide Appointments

Reappointment, South Carolina Commission for the Blind, with term to commence May 19, 2000, and to expire May 19, 2004:


Printed Page 2953 . . . . . Thursday, May 11, 2000

At-Large:

John Franklin Shuler, 250 Keitt Street, Orangeburg, S.C. 29115

Referred to the General Committee.

Reappointment, South Carolina State Board of Financial Institutions, with term to commence June 30, 1998, and to expire June 30, 2002:

Lay Member:

William F. Sachs, 1412 Kathwood Dr., Columbia, S.C. 29206

Referred to the Committee on Banking and Insurance.

Initial Appointment, South Carolina Real Estate Commission, with term to commence June 30, 1999, and to expire June 30, 2003:

Public:

Mackie D. Hayes, 2344 Highway 57 South, Dillion, S.C. 29536 VICE Charles L. Johnson, Sr.

Referred to the Committee on Labor, Commerce and Industry.

Doctor of the Day

Senator J. VERNE SMITH introduced Dr. William B. Jones of Greenville, S.C., Doctor of the Day.

Leave of Absence

On motion of Senator BRYAN, at 11:00 A.M., Senator GIESE was granted a leave of absence until 1:00 P.M.

Leave of Absence

At 11:05 A.M., Senator HUTTO requested a leave of absence from 5:00 - 10:00 P.M.

Leave of Absence

At 11:05 A.M., Senator LEATHERMAN requested a leave of absence from 7:00 - 11:00 P.M.

Leave of Absence

At 11:05 A.M., Senator McGILL requested a leave of absence beginning at 4:00 P.M. and lasting until 4:00 P.M. tomorrow.


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Leave of Absence

At 11:05 A.M., Senator RAVENEL requested a leave of absence beginning at 5:00 P.M. for the balance of the day.

Leave of Absence

At 11:05 A.M., Senator WALDREP requested a leave of absence until 5:00 P.M.

Leave of Absence

On motion of Senator RUSSELL, at 12:45 P.M., Senator COURSON was granted a leave of absence until 2:30 P.M.

Leave of Absence

At 6:15 P.M., Senator GIESE requested a leave of absence from 8:00 - 9:00 P.M.

Leave of Absence

At 8:30 P.M., Senator MESCHER requested a leave of absence for the balance of the day.

Leave of Absence

On motion of Senator HAYES, at 9:20 P.M., Senator COURSON was granted a leave of absence until 11:00 A.M. Friday, May 12, 2000.

Leave of Absence

At 9:15 P.M., Senator ELLIOTT requested a leave of absence for the balance of the day.

Leave of Absence

At 9:20 P.M., Senator McCONNELL requested a leave of absence from 10:00 - 3:00 P.M., Friday, May 12, 2000.

RECALLED

H. 4512 (Word version) -- Reps. Webb, Barrett, Dantzler, Harris, Jennings, Leach, Ott, Rhoad, Riser, Robinson, Sandifer, Sharpe, Trotter, Wilkins and Witherspoon: A BILL TO AMEND ACT 1278 OF 1970, AS AMENDED, RELATING TO THE ISSUANCE OF PLANT IMPROVEMENT BONDS BY CLEMSON UNIVERSITY, SO AS TO MODIFY THE LIMITATION ON THE AMOUNT OF PLANT IMPROVEMENT BONDS WHICH MAY BE ISSUED.


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Senator ALEXANDER asked unanimous consent to make a motion to recall the Bill from the Committee on Finance.

There was no objection.

The Bill was recalled, ordered placed on the Calendar for consideration tomorrow.

RECALLED

H. 4939 (Word version) -- Reps. Cato, Tripp and Sharpe: A BILL TO AMEND TITLE 37, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONSUMER PROTECTION CODE, BY ADDING CHAPTER 16, SO AS TO ESTABLISH PROCEDURES FOR A COMPANY TO OFFER PREPAID LEGAL SERVICES INCLUDING REGISTRATION WITH THE DEPARTMENT OF CONSUMER AFFAIRS AND OBTAINING APPROVAL OF CONTRACTS OFFERING SUCH SERVICES, AND TO PROVIDE ADMINISTRATIVE PENALTIES; AND TO REPEAL SECTIONS 38-75-510 AND 38-75-520, RELATING TO INSURANCE CONTRACTS FOR LEGAL SERVICES.

Senator SALEEBY asked unanimous consent to make a motion to recall the Bill from the Committee on Banking and Insurance.

There was no objection.

The Bill was recalled, ordered placed on the Calendar for consideration tomorrow.

RECALLED

H. 5026 (Word version) -- Labor, Commerce and Industry Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF INSURANCE, RELATING TO HURRICANE DEDUCTIBLE, DESIGNATED AS REGULATION DOCUMENT NUMBER 2501, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator SALEEBY asked unanimous consent to make a motion to recall the Joint Resolution from the Committee on Banking and Insurance.

There was no objection.

The Joint Resolution was recalled, ordered placed on the Calendar for consideration tomorrow.


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INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1383 (Word version) -- Senator Elliott: A CONCURRENT RESOLUTION RECOGNIZING AND COMMENDING THE EFFORTS OF THE LATE DR. JAMES I. CALIFF OF MYRTLE BEACH IN DIRECTING THE ESTABLISHMENT OF THE SOUTH CAROLINA SILVER HAIRED LEGISLATURE, INC. AND ALSO RECOGNIZING DR. CALIFF'S OTHER LONG AND TIRELESS EFFORTS ON BEHALF OF THE SENIOR CITIZENS OF HORRY COUNTY AND OF SOUTH CAROLINA.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 1384 (Word version) -- Senator Hutto: A CONCURRENT RESOLUTION EXPRESSING THE APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MR. DON B. STILL OF BARNWELL COUNTY FOR HIS DISTINGUISHED CAREER IN PUBLIC EDUCATION AND WISHING HIM HAPPINESS AND GOOD HEALTH IN ALL HIS FUTURE ENDEAVORS AS HE RETIRES AS DIRECTOR OF THE BARNWELL COUNTY VOCATIONAL CENTER.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 1385 (Word version) -- Senator Washington: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION ERECT SIGNS ALONG THE NORTHBOUND AND SOUTHBOUND LANES OF INTERSTATE HIGHWAY 95 IN JASPER COUNTY CONTAINING THE WORDS "JUANITA M. WHITE CROSSWALK" AT THE POINT WHERE THE HIGHWAY PASSES UNDER THE CROSSWALK.

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

H. 5054 (Word version) -- Reps. Parks, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, 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, Edge, Emory, Fleming, Frye, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard,


Printed Page 2957 . . . . . Thursday, May 11, 2000

Huggins, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, 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, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION RECOGNIZING AND HONORING MORRIS CHAPEL BAPTIST CHURCH OF GREENWOOD COUNTY ON THE JOYFUL OCCASION OF ITS ONE HUNDRED THIRTY-FIFTH ANNIVERSARY, AND WISHING THE PASTOR AND CHURCH MEMBERS A BRIGHT FUTURE AND MANY MORE YEARS OF SUCCESS, HAPPINESS, AND ACHIEVEMENTS.

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

H. 5055 (Word version) -- Reps. Wilder, Carnell and Taylor: A CONCURRENT RESOLUTION TO CONGRATULATE THE CLINTON HIGH SCHOOL RED DEVILS MEN'S TENNIS TEAM AND HEAD COACH, CLOVIS SIMMONS, ON CAPTURING THE 2000 CLASS AAA STATE TENNIS CHAMPIONSHIP.

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

H. 5059 (Word version) -- Reps. Parks, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, 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, 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, Klauber, 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,


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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, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION TO COMMEND AND CONGRATULATE THE REVEREND DR. WILLIE S. HARRISON, PASTOR OF THE MACEDONIA BAPTIST CHURCH IN GREENWOOD, FOR HIS TWENTY-FIVE YEARS OF OUTSTANDING SERVICE AND LEADERSHIP OF THE MACEDONIA BAPTIST CHURCH.

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

H. 5060 (Word version) -- Rep. Walker: A CONCURRENT RESOLUTION COMMENDING AND THANKING JOE BULLINGTON, PRINCIPAL OF CHESNEE HIGH SCHOOL IN SPARTANBURG COUNTY, FOR HIS DEDICATED, OUTSTANDING SERVICE TO PUBLIC EDUCATION AND TO SPARTANBURG SCHOOL DISTRICT 2, AND WISHING HIM SUCCESS AND HAPPINESS FOLLOWING HIS RETIREMENT.

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

H. 5061 (Word version) -- Reps. Walker, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, 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, 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, Klauber, 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, 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, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION COMMENDING AND THANKING DR. TOM WHITE, PRINCIPAL OF BOILING SPRINGS HIGH SCHOOL IN


Printed Page 2959 . . . . . Thursday, May 11, 2000

SPARTANBURG COUNTY, FOR HIS LEADERSHIP IN PUBLIC EDUCATION AND FAITHFUL SERVICE TO SPARTANBURG SCHOOL DISTRICT 2, AND WISHING HIM HAPPINESS AND SUCCESS IN HIS NEW POSITION FOLLOWING HIS RETIREMENT AS PRINCIPAL AT BOILING SPRINGS HIGH.

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

HOUSE CONCURRENCE

S. 1375 (Word version) -- Senators Bauer, J. Verne Smith and O'Dell: A CONCURRENT RESOLUTION HONORING DANIELLE DAVIS OF GREER, THE REIGNING "MISS SOUTH CAROLINA", AND RECOGNIZING HER CONTRIBUTION TO THE STATE AS A GOODWILL AMBASSADOR AND ROLE MODEL AND TO REQUEST THAT TWO SIGNS BE PLACED AT THE CITY LIMITS OF GREER HONORING MISS DAVIS.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 1376 (Word version) -- Senator Elliott: A CONCURRENT RESOLUTION RECOGNIZING THE FIFTIETH ANNIVERSARY OF LORIS COMMUNITY HOSPITAL OF HORRY COUNTY, COMMENDING THE HOSPITAL FOR ITS OUTSTANDING, DEDICATED SERVICE TO THE COMMUNITY FOR FIVE DECADES, AND RECOGNIZING AND SALUTING THE CONTRIBUTIONS OF THE SEVEN ORIGINAL PRINCIPALS RESPONSIBLE FOR THE ORIGINATION OF THE HOSPITAL.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 1378 (Word version) -- Senators Mescher and Grooms: A CONCURRENT RESOLUTION CONGRATULATING MONCKS CORNER NATIVE BILL BONDS ON HIS SELECTION AS NATIONAL FOOTBALL COACH OF THE YEAR AND RECOGNIZING HIS UNFAILING DEVOTION TO HIS SCHOOL, STUDENTS, AND FAMILY.

Returned with concurrence.

Received as information.


Printed Page 2960 . . . . . Thursday, May 11, 2000

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

ORDERED ENROLLED FOR RATIFICATION

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

H. 4974 (Word version) -- Reps. Keegan and Miller: A BILL TO AMEND ACT 876 OF 1966, AS AMENDED, RELATING TO THE CREATION OF THE MURRELL'S INLET-GARDEN CITY FIRE DISTRICT IN GEORGETOWN AND HORRY COUNTIES, SO AS TO AUTHORIZE THE DISTRICT TO PROVIDE EMERGENCY MEDICAL SERVICES WITHIN ITS BOUNDARIES UNDER CERTAIN CIRCUMSTANCES.

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

There was no objection.

HOUSE BILL RETURNED

The following House Bill was read the third time and ordered returned to the House with amendments:

H. 4994 (Word version) -- Reps. Young-Brickell, Chellis and Bailey: A BILL TO AMEND ACT 535 OF 1982 AND ACT 536 OF 1986, BOTH AS AMENDED, RELATING TO THE ELECTION OF MEMBERS OF THE BOARD OF TRUSTEES OF SUMMERVILLE SCHOOL DISTRICT NO. 2 IN DORCHESTER COUNTY AND DORCHESTER COUNTY SCHOOL DISTRICT 4, RESPECTIVELY, SO AS TO REVISE THE DATES BY WHICH PERSONS DESIRING TO BECOME CANDIDATES FOR ELECTION TO THESE BOARDS MUST FILE A NOMINATING PETITION.

By prior motion of Senator BRANTON

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 3811 (Word version) -- Reps. Wilkins and Vaughn: A BILL TO AMEND ACT 355 OF 1994, RELATING TO THE LOCAL GOVERNMENT COMPREHENSIVE PLANNING ENABLING ACT OF 1994 AND THE EFFECTIVE DATE OF THE REPEAL OF VARIOUS STATE AND LOCAL PROVISIONS OF LAW PERTAINING TO


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PLANNING AND ZONING BY LOCAL GOVERNMENTAL ENTITIES, SO AS TO EXTEND FROM MAY 3, 1999, UNTIL DECEMBER 31, 1999, THE EFFECTIVE DATE OF THE REPEAL OF THESE STATE AND LOCAL PROVISIONS OF LAW AND THE DATE BY WHICH ALL LOCAL PLANNING PROGRAMS MUST BE IN CONFORMITY WITH THE LOCAL GOVERNMENT COMPREHENSIVE PLANNING ENABLING ACT OF 1994.

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

There was no objection.

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

Senators DRUMMOND, HOLLAND, SALEEBY, J. VERNE SMITH, LAND, SETZLER, LEATHERMAN, LEVENTIS, MOORE, COURSON and THOMAS proposed the following amendment (JUD3811.001), which was adopted:

Amend the bill, as and if amended, by striking the bill in its entirety and inserting therein the following:

  /   A BILL

TO AMEND CHAPTER 1 OF TITLE 2, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL ASSEMBLY, BY ADDING SECTION 2-1-250, SO AS TO PROVIDE THAT ANY ACTION BY A LEGISLATIVE DELEGATION OR A SINGLE BRANCHPP DELEGATION, CONCERNING STATEWIDE, REGIONAL, COUNTY, AND LOCAL GOVERNMENT MATTERS, WHICH IS NOT PROVIDED FOR IN THE STATE CONSTITUTION AND WHICH BY STATUTE OR RESOLUTION REQUIRES A VOTE OR DECISION, MUST UTILIZE WEIGHTED VOTING.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION   1.   Chapter 1, Title 2 of the 1976 Code is amended by adding:

"Section 2-1-250.   (A)   For purposes of this section:

(1)   'delegation area' means the geographic area over which a legislative delegation or single branch delegation exercises authority. 'Delegation area' includes, but is not limited to, a county, a multi-county area, a judicial circuit, a United States Congressional district, or a statewide area;


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(2)   'legislative delegation' means every member of the Senate and the House of Representatives whose district includes any portion of the delegation area;

(3)   'population' means the total number of people for a given geographic area as enumerated in the latest official United States Decennial Census used to establish the districts for the Senate and the House of Representatives;

(4)   'single branch delegation' means every member of a distinct branch of the General Assembly, as defined in Article III, Section 1 of the Constitution of South Carolina, as either the Senate or the House of Representatives, whose district includes any portion of the delegation area.

(B)   Any action by any legislative delegation or single branch delegation which:

(1)   is not provided for in the Constitution of South Carolina;

(2)   is not related to the advice and consent authority of the respective body of each branch of the General Assembly; and

(3)   by statute or resolution requires a vote or decision;

must utilize the weighted voting formula in subsection (C).

(C)   The following calculations must be used to determine the weight of each vote of a delegation member:

(1)   the number of residents in the delegation area which are represented by a member of the Senate must be divided by twice the total population of the delegation area;

(2)   the number of residents in the delegation area represented by a member of the House of Representatives must be divided by twice the total population of the delegation area;

(3)   the calculations in items (1) and (2) must be made to the fourth decimal place;

(4)   to determine the weight of the vote for each member of the Senate and the House of Representatives, when voting as a legislative delegation, each calculation to the fourth decimal place in items (1) and (2) must be multiplied by one hundred;

(5)   to determine the weight of the vote for each member of the Senate or the House of Representatives, when voting as a single branch delegation, each calculation to the fourth decimal place in either item (1) or (2) must be multiplied by two hundred;

(6)   the numbers resulting from the calculations required by this subsection must not be rounded up or down."


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SECTION   2.   This act takes effect upon approval by the Governor./

Renumber sections to conform.

Amend title to conform.

Senator HOLLAND explained the amendment.

The amendment was adopted.

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

SECOND READING BILL

The following Bill, having been read the second time, was ordered placed on the third reading Calendar:

H. 5024 (Word version) -- Rep. Campsen: A BILL TO AMEND SECTION 7-7-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF THVOTING PRECINCTS IN CHARLESTON COUNTY, SO AS TO REDESIGNATE CERTAIN PRECINCTS AND CHANGE THE MAP DESIGNATION ON WHICH THE LINES OF THOSE PRECINCTS ARE DELINEATED.

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

There was no objection.

AMENDED, READ THE SECOND TIME

H. 5027 (Word version) -- Rep. Knotts: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO ERECT APPROPRIATE SIGNS ALONG PINE RIDGE ROAD (S-103) IN LEXINGTON COUNTY THAT INFORM MOTORISTS THAT TRUCK TRAFFIC IS PROHIBITED ALONG THIS ROADWAY.

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

Senator WILSON proposed the following amendment (5027R001.AGW), which was adopted:

Amend the joint resolution, as and if amended, page 1, by striking SECTION 1, and inserting in lieu thereof the following:

/SECTION   1.   The Department of Transportation must erect appropriate signs along Pine Ridge Road (S-103) in Lexington County


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that inform motorists that through truck traffic is prohibited along this roadway.   /

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

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

THE SENATE PROCEEDED TO A CONSIDERATION OF H. 4775, THE GENERAL APPROPRIATION BILL.

AMENDED, AMENDMENT PROPOSED
DEBATE INTERRUPTED

H. 4775--GENERAL APPROPRIATION BILL

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

PART II, SECTION 3
Amendment No. 235

Senators DRUMMOND and J. VERNE SMITH proposed the following amendment (9604HTC00.DOC), which was adopted (#35):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, beginning on page 581, by striking SECTION 3 and inserting:

  / SECTION 3

TO AMEND CHAPTER 1, TITLE 9, OF THE 1976 CODE, RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM, BY ADDING ARTICLE 17 SO AS TO ENACT THE TEACHER AND EMPLOYEE RETENTION INCENTIVE PROGRAM AND PROVIDE FOR ITS OPERATION; TO AMEND SECTIONS 9-1-1510 AND 9-1-1550, BOTH AS AMENDED, RELATING TO SERVICE RETIREMENT UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REDUCE FROM THIRTY TO TWENTY-EIGHT THE YEARS OF CREDITABLE SERVICE REQUIRED TO RETIRE AT ANY AGE WITHOUT PENALTY; TO AMEND SECTIONS 9-1-1515, AS AMENDED, 9-1-1660, AND 9-1-1770, AS AMENDED, AND 9-1-1850, AS


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AMENDED, RELATING TO EARLY RETIREMENT OPTIONS, ELECTION OF A BENEFIT ON THE INSERVICE DEATH OF A MEMBER, AND AMOUNTS DUE ESTATES OF DECEASED MEMBERS UNDER THE GROUP LIFE INSURANCE PLAN, SO AS TO PROVIDE THAT THE ELECTION OF A MEMBER WITH TWENTY-FIVE YEARS CREDITED SERVICE TO BUY SUFFICIENT CREDIT FOR SERVICE RETIREMENT APPLIES TO THE SOUTH CAROLINA RETIREMENT SYSTEM, UPDATE THE BENEFIT ELECTION OPTION ON THE INSERVICE DEATH OF A MEMBER TO REFLECT OTHER CHANGES SINCE ORIGINAL ENACTMENT AND MAKE TECHNICAL CORRECTIONS, AND TO CONFORM THESE OPTIONS AND BENEFITS TO SERVICE RETIREMENT AFTER TWENTY-EIGHT YEARS CREDITABLE SERVICE AT ANY AGE WITHOUT PENALTY AS PROVIDED IN THIS ACT; TO AMEND SECTIONS 9-1-1810 AND 9-11-310, RELATING TO THE ANNUAL COST OF LIVING ADJUSTMENT AUTHORIZED FOR RETIREES AND BENEFICIARIES UNDER THE SOUTH CAROLINA RETIREMENT SYSTEM AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND THE METHOD OF CALCULATING THE ADJUSTMENT, SO AS TO MAKE MANDATORY OVER TWO YEARS THE PAYMENT OF AMOUNTS UP TO ONE PERCENT CALCULATED UNDER THE ADJUSTMENT FORMULA AND AUTHORIZE ADDITIONAL MANDATORY ADJUSTMENTS IN HALF PERCENT INCREMENTS NOT TO EXCEED THREE PERCENT, ELIMINATE ANY ADJUSTMENT IN EXCESS OF THE RATE OF INFLATION, TO DELETE OBSOLETE PROVISIONS, AND TO CONFORM IN BOTH SECTIONS REFERENCES TO THE CONSUMER PRICE INDEX USED IN CALCULATING THE COST OF LIVING ADJUSTMENT; BY ADDING SECTION 9-1-1615, SO AS TO PROVIDE FOR THE PAYMENT OF THE RETIREMENT BENEFITS OF A RETIRED MEMBER OF THE SOUTH CAROLINA RETIREMENT SYSTEM FOR THE MONTH IN WHICH THE RETIREE DIES; TO AMEND SECTION 9-1-1770, AS AMENDED, RELATING TO PRERETIREMENT AND POSTRETIREMENT BENEFITS OF MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO INCREASE INSURANCE PAYMENTS ON BEHALF OF A DECEASED RETIRED MEMBER UNDER THE GROUP LIFE INSURANCE PROGRAM; TO AMEND SECTIONS 9-8-80, 9-9-80, AND 9-11-160, RELATING TO THE PAYMENT OF BENEFITS UNDER THE

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RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE FOR THE PAYMENT OF THE RETIREMENT BENEFITS OF A RETIRED MEMBER FOR THE MONTH IN WHICH THE RETIREE DIES; TO AMEND SECTION 9-11-120, AS AMENDED, RELATING TO PRERETIREMENT AND POSTRETIREMENT BENEFITS FOR MEMBERS OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO INCREASE INSURANCE PAYMENTS ON BEHALF OF DECEASED RETIREES UNDER THE GROUP LIFE INSURANCE PROGRAM; TO AMEND SECTION 9-1-1140, AS AMENDED, RELATING TO CREDITABLE SERVICE AND SERVICE PURCHASE UNDER THE STATE CAROLINA RETIREMENT SYSTEM, SO AS TO ALLOW FOR A LIMITED PERIOD SERVICE AS A COMMISSIONED OFFICER IN THE UNITED STATES PUBLIC HEALTH SERVICE TO BE ESTABLISHED AS MILITARY SERVICE TIME IS SO ESTABLISHED, AND TO REQUIRE PUBLIC SCHOOL TEACHERS RETIRING IN THE FIRST HALF OF 2001 TO PROVIDE NOTICE OF THEIR RETIREMENT TO THEIR EMPLOYERS NO LATER THAN SEPTEMBER 1, 2000, AND TO PROVIDE AN EXCEPTION.

Amend title to conform.

A.   1.   Chapter 1, Title 9 of the 1976 Code is amended by adding:

  "Article 17

Teacher and Employee Retention Incentive Program

Section 9-1-2210.   (A)   An active contributing member who is eligible for service retirement under this chapter and complies with the requirements of this article may elect to participate in the Teacher and Employee Retention Incentive Program (program). A member electing to participate in the program retires for purposes of the system, and the member's normal retirement benefit is calculated on the basis of the member's average final compensation and service credit at the time the program period begins. The program participant shall agree to continue employment with an employer participating in the system for a program period, not to exceed five years. The member shall notify the system before the beginning of the program period. Participation in the program does not guarantee employment for the specified program period.


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(B)   During the specified program period, receipt of the member's normal retirement benefit is deferred. The member's deferred monthly benefit must be placed in the system's trust fund on behalf of the member. No interest is paid on the member's deferred monthly benefit placed in the system's trust fund during the specified program period.

(C)   During the specified program period, the employer shall pay to the system the employer contribution for active members prescribed by law with respect to any program participant it employs, regardless of whether the program participant is a full-time or part-time employee, or a temporary or permanent employee. If an employer who is obligated to the system pursuant to this subsection fails to pay the amount due, as determined by the system, the amount must be deducted from any funds payable to the employer by the State.

(D)   A program participant is retired from the retirement system as of the beginning of the program period. A program participant makes no further employee contributions to the system, accrues no service credit during the program period, and is not eligible to receive group life insurance benefits or disability retirement benefits. Accrued annual leave and sick leave used in any manner in the calculation of the program participant's retirement benefit is deducted from the amount of such leave accrued by the participant.

(E)   A program participant is retired for retirement benefit purposes only. For employment purposes, a program participant is considered to be an active employee, retaining all other rights and benefits of an active employee and is not subject to the earnings limitation of Section 9-1-1790 during the program period.

(F)   Upon termination of employment either during or at the end of the program period, the member must receive the balance in the member's program account by electing one of the following distribution alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.

The member also must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program period began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790.

(G)   If a program participant dies during the specified program period, the member's designated beneficiary must receive the balance


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in the member's program account by electing one of the following distribution alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.

In accordance with the form of system benefit selected by the member at the time the program commenced, the member's designated beneficiary must receive either a survivor benefit or a refund of contributions from the member's system account.

(H)   If a program participant fails to terminate employment with an employer participating in the retirement system within one month after the end of the specified program period, the member must receive the previously determined normal retirement benefits based upon the member's average final compensation and service credit at the time the program began, plus any applicable cost of living increases declared during the program period. The program participant is thereafter subject to the earnings limitation of Section 9-1-1790. The program participant also must receive the balance in the member's program account by selecting one of the following alternatives:

(1)   a lump-sum distribution, paying appropriate taxes; or

(2)   to the extent permitted under law, a tax sheltered rollover into an eligible plan.

(I)   A member is not eligible to participate in the program if the member has participated previously in and received a benefit under this program."

2.   The first paragraph of Section 9-1-1510 of the 1976 Code is amended to read:

"Any A member may retire upon written application to the board system setting forth at what time, not no more than ninety days prior before nor more than six months subsequent to after the execution and filing thereof of the application, he the member desires to be retired, if such the member at the time so specified for his the member's service retirement has: shall have attained the age of sixty years or shall have thirty or more years of creditable service and shall have separated from service and, if the time so specified is subsequent to the date of application, notwithstanding that, during such period of notification, he may have separated from service.

(1)   five or more years of earned service;

(2)   attained the age of sixty years or has twenty-eight or more years of creditable service; and

(3)   separated from service."


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3.   Section 9-1-1515 of the 1976 Code, as amended by Act 100 of 1999, is further amended to read:

"Section 9-1-1515.   (A)   In addition to other types of retirement provided by this chapter, a member may elect early retirement if the member:

(1)   has five or more years of earned service;

(2)   who has attained the age of fifty-five years; and who

(3)   has at least twenty-five years of creditable service; and

(4)   has separated from service may elect early retirement. A member electing early retirement shall apply in the manner provided in Section 9-1-1510.

(B)   The benefits for a member electing early retirement under this section must be calculated in the manner provided in Section 9-1-1550, except that in lieu of any other reduction factor, the member's early retirement allowance is reduced by four percent a year, prorated for periods less than one year, for each year of creditable service less than thirty twenty-eight. However, a member's early retirement allowance is not reduced if the member pays into the system, in a lump sum payment before the member's retirement, an amount equal to twenty percent of the member's earnable compensation or the average of the member's twelve highest consecutive fiscal quarters of compensation at the time of payment, whichever is greater, prorated for periods less than one year for each year of creditable service less than thirty. The member's retirement must occur not more than ninety days after the date of the payment.

(C)   A member who elects early retirement under this section is ineligible to receive any cost-of-living increase provided by law to retirees until the second July first after the date the member attains age sixty; or the second July first after the date the member would have thirty twenty-eight years' creditable service had he not retired, whichever is earlier.

(D)(1)   Except as provided in item (2) of this subsection, a member who elects early retirement under this section is not covered by the State Insurance Benefits Plan until the earlier of:

(a)   the date the member attains age sixty, or

(b)   the date the member would have thirty twenty-eight years' creditable service had he not retired.

(2)   A member taking early retirement may maintain coverage under the State Insurance Benefits Plan until the date his coverage is reinstated pursuant to item (1) of this subsection by paying the total premium cost, including the employer's contribution, in the manner


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provided by the Division of Insurance Services of the State Budget and Control Board."

4.   Section 9-1-1550 of the 1976 Code, as last amended by Act 189 of 1989, is further amended to read:

"Section 9-1-1550.   (A)   Upon retirement from service on or after July 1, 1964, a Class One member shall receive a service retirement allowance which shall consist of:

(1)   An employee annuity which shall be the actuarial equivalent of his accumulated contributions at the time of his retirement; and

(2)   An employer annuity equal to the employee annuity allowable at the age of sixty-five years or at age of retirement, whichever is less, computed on the basis of contributions made prior to the age of sixty-five years; and

(3)   If he has a prior service certificate in full force and effect, an additional employer annuity which must be equal to the employee annuity which would have been provided at age sixty-five or at age of retirement, whichever is less, by twice the contributions which he would have made during his entire period of prior service had the system been in operation and had he contributed thereunder during such entire period.

Upon retirement from service on or after July 1, 1989 December 31, 2000, a Class One member shall receive a service retirement allowance computed as follows: If the member's service retirement date occurs on or after his sixty-fifth birthday, or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and forty-five hundredths percent of his average final compensation multiplied by the number of years of his creditable service.

If the member's service retirement date occurs before his sixty-fifth birthday and before he completes thirty twenty-eight years of creditable service, his service retirement allowance is computed as above, but is reduced by five-twelfths of one percent thereof for each month by which his retirement date precedes the first day of the month, prorated for periods less than a month, coincident with or next following his sixty-fifth birthday.

Notwithstanding the foregoing provisions, any Class One member who retires on or subsequent to after July 1, 1976, shall receive not less than the benefit provided under the formula in effect before July 1, 1976.


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(B)   Upon retirement from service on or after July 1, 1989 December 31, 2000, a Class Two member shall receive a service retirement allowance computed as follows:

(1)   If the member's service retirement date occurs on or after his sixty-fifth birthday or after he has completed thirty twenty-eight or more years of creditable service, the allowance must be equal to one and eighty-two hundredths percent of his average final compensation, multiplied by the number of years of his creditable service.

(2)   If the member's service retirement date occurs before his sixty-fifth birthday and before he completes the thirty twenty-eight years of creditable service, his service retirement allowance is computed as in item (1) above but is reduced by five-twelfths of one percent thereof for each month, prorated for periods less than a month, by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.

(3)   Notwithstanding the foregoing provisions, a Class Two member whose creditable service began before July 1, 1964, shall receive not less than the benefit provided by subsection (A) of this section.

(C)   Any teacher or employee as defined in Section 9-1-10(3) and (4) who was a nonmember of the South Carolina Retirement System and who had attained age seventy-two prior to July 1, 1964, and who at the time of separation from service had rendered twenty or more years of employment which would otherwise have been considered creditable service under the terms of the South Carolina Retirement Act may establish such service and qualify for a retirement allowance from the Retirement System provided he does so on or before December 31, 1965.

(1)   The employee and employer contributions which would have been made had such service been rendered as a member shall be paid at the then prevailing rates paid by other employees and employers of the South Carolina Retirement System.

(2)   The retirement allowance provided by this section shall become effective as of the first day of the month in which such service is established."

5.   Section 9-1-1660 of the 1976 Code is amended to read:

"Section 9-1-1660.   (1)(A)     The person nominated by a member to receive the full amount of his the member's accumulated contributions


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in the event of his death if the member dies before retirement may, if such the member:

(1)   has five or more years of earned service;

(2)   dies while in service; and

(3)   has either attained the age after the attainment of age sixty-five sixty years or after the accumulation of has accumulated fifteen years or more of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his the member's death and had named the person as beneficiary under an election of Option 2 of Section 9-1-1620. For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.

(2)(B)   Any A person otherwise eligible under subsection (1) (A) of this section to elect to receive an allowance who has attained age sixty-five or after the accumulation of thirty years of creditable service or after the attainment of age sixty with twenty or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, may make the election provided for in subsection (1) (A). The monthly payments under Option 2 to the person date from the time of the repayment of the accumulated contributions to the system."

6.   The last paragraph of Section 9-1-1770 of the 1976 Code, as last amended by Act 412 of 1990, is further amended to read:

"Upon the death of a retired member on or after July 1, 1985 after December 31, 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death life insurance, otherwise to the retired member's estate, a death benefit of one thousand dollars if the retired member had ten years of creditable service but less than twenty years, two thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-eight, and three thousand dollars if the retired member had at least thirty twenty-eight years of creditable service at the time of retirement, provided the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."

7.   Section 9-1-1810 of the 1976 Code is amended to read:

"Section 9-1-1810.   As of the end of each calendar year commencing with the year ending December 31, 1969, the increase in the ratio of the Consumer Price Index to the index as of December 31, 1968, or the


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most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three four percent, the retirement allowance, inclusive of the supplemental allowances payable under the provisions of Sections 9-1-1910, 9-1-1920, and 9-1-1930, of each beneficiary in receipt of an allowance as of December 31, 1968, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three four percent, the retirement allowance, inclusive of supplemental allowances, all as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances shall commence commences the July first immediately following the December thirty-first that the increase in ratio was determined. Beginning with the calendar year ending December 31, 1981, and all increases in retirement allowances must be granted to these beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. Any increase in allowances after the first five increases shall become is effective only if the additional liabilities, on account because of the increase in allowances, do not require an increase in the total employer rate of contribution, except that an increase of up to and including one-half percent must be paid after December 31, 2000, and an increase of up to and including an additional one-half percent must be paid after December 31, 2001. After December 31, 2002, the board is authorized to declare further guaranteed cost of living allowance increases of up to and including an additional two percent, in increments of one-half percent, upon certification from the system actuary that the system's unfunded actuarial liability amortization period does not exceed the acceptable limit as defined by the Governmental Accounting Standards Board as a result of the increase in allowances. Any increase in allowance granted hereunder pursuant to this section must be included in the determination of any subsequent increases, irrespective of any subsequent decrease in the Consumer Price Index.

The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section must, when and if payable, be increased by the same percent.

For purposes of this section, 'Consumer Price Index' means the Consumer Price Index for Wage Earners and Clerical Workers, as published by the United States Department of Labor, Bureau of Labor Statistics."


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8.   Section 9-1-1850 of the 1976 Code, as last amended by Act 420 of 1994, is further amended to read:

"Section 9-1-1850.   (A)(1)   A member who has at least twenty-five years of creditable service in any retirement system provided in this title may elect to receive up to five years of additional service credit as though the additional service credit were rendered by the member as an employee or member by paying into the member's retirement system the amount provided in this item. The required amount is determined by multiplying the member's current salary or the highest fiscal year salary in the member's work career, whichever is greater, by the percentage provided in this item and multiplying the result by the number of years credited, prorated for periods less than one year. The applicable percentage of salary to calculate the payment allowed pursuant to this subsection is as follows:

Years to be Credited           Percentage of Salary

(a) not more than one year       58 percent

(b) over one year but not

more than two years       54 percent for each year

(c) over two years but not

more than three years       50 percent for each year

(d) over three years, but not

more than four years       46 percent for each year

(e) over four years             42 percent for each year

(2)   The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, or until the date the member attains age sixty, at which time the member becomes eligible for employer-paid health and dental insurance.

(3)   Any service credit purchased under this subsection qualifies the member for retirement and the member must retire within ninety days after the purchase.

(B)   As an alternative to the option provided in subsection (A) the A member, if he who has at least twenty-five years of creditable service, may elect to receive up to five three years of additional service credit as though the additional service credit were rendered by him the member as an employee or member upon paying into his the member's retirement system, during the ensuing number of years he the member wishes to purchase in the manner the Comptroller General shall direct, the employer and employee contributions that would be due for the position that he the member presently holds at the salary level in effect during those years. If the position is consolidated or eliminated after


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the member's retirement, he the member shall pay the employer and employee contributions during the remaining required years at a level equal to what these contributions were for the position before its consolidation or elimination. The member also shall pay the employer and employee cost for health and dental insurance in effect during the ensuing years the member wishes to purchase. The additional service credit qualifies the member for retirement and the member must retire terminate employment within ninety days subsequent to after electing the option provided by subsection (B) this section. The salary level of the position the member presently holds, during the ensuing years the member pays the employer and employee contributions, is attributable to the member for purposes of determining the member's average final compensation.

The retirement benefits of the member shall not commence until the time benefits would have been paid when the member had completed thirty twenty-eight years of service.

The option allowed by this section cannot be exercised if the member has purchased nonqualified service pursuant to Section 9-1-1140(E)."

9.   Section 9-11-310 of the 1976 Code is amended to read:

"Section 9-11-310.   As of the end of each calendar year commencing with the year ending December 31, 1974, the increase in the ratio of the Consumer Price Index to such the index as of December 31, 1973, or the most recent prior December thirty-first subsequent thereto as of which an increase in retirement allowances was granted, must be determined, and if the increase equals or exceeds three four percent, the retirement allowance, exclusive of any part thereof derived from accumulated additional contributions, of each beneficiary in receipt of an allowance as of December 31, 1973, or the most recent December thirty-first subsequent thereto as of which an increase was granted, must be increased by four percent. If the increase in the index is less than three four percent, the retirement allowances, as determined above, must be increased by a percentage equal to the increase in the index. The increase in retirement allowances must commence commences the July first immediately following the December thirty-first that the increase in ratio was determined.

Beginning with the calendar year ending December 31, 1981, all All increases in retirement allowances must be granted to those beneficiaries in receipt of a retirement allowance on July first immediately preceding the effective date of the increase. The increase in allowances after the first five such increases shall become is effective only if the additional liabilities on account of the increase in


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allowances do not require an increase in the employer rate of contribution, except that an increase of up to and including one-half percent must be paid after December 31, 2000, and an additional increase of up to and including one-half percent must be paid after December 31, 2001. After December 31, 2002, the board is authorized to declare further guaranteed cost of living allowance increases of up to and including an additional two percent, in increments of one-half percent, upon certification from the system actuary that the system's unfunded actuarial liability amortization period does not exceed the acceptable limit as defined by the Governmental Accounting Standards Board as a result of the increase in allowances. Any increase in allowance granted hereunder pursuant to this section is permanent, irrespective of any subsequent decrease in the Consumer Price Index, and must be included in determining any subsequent increase.

The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this section, must, when and if payable, must be increased by the same percent.

For purposes of this section, 'Consumer Price Index' means the Consumer Price Index (all items-United States city average), for Wage Earners and Clerical Workers as published by the United States Department of Labor, Bureau of Labor Statistics."

10.   Notwithstanding the general effective date of this section, this subsection takes effect January 1, 2001.

B.1.   Article 13, Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-1615.   All retirement allowances are payable in monthly installments. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the member's estate. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-1-1620, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."

2.   Section 9-1-1770 of the 1976 Code, as last amended by Act 458 of 1996, is further amended by adding a new undesignated paragraph at the end to read:

"Upon the death of a retired member after June 30, 2000, the life insurance benefit otherwise due the member's beneficiary, beneficiaries, or estate under the above paragraph is increased as follows: one thousand dollars is increased to two thousand dollars; two


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thousand dollars is increased to four thousand dollars; and three thousand dollars is increased to six thousand dollars."

3.   Section 9-8-80 of the 1976 Code is amended to read:

"Section 9-8-80.   All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death except for the spouse entitlement. If a member of the System has elected the optional form of allowance those provisions shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's spouse, or if the member designated a nonspouse beneficiary or beneficiaries, then to the nonspouse beneficiary or beneficiaries living at the time of the member's death, otherwise to the estate of the member. A spouse's entitlement to a benefit pursuant to Section 9-8-110 commences in the month after the retired member's death. If the retired member elected a survivor option pursuant to the optional retirement allowances in Section 9-8-70, any allowance payable to a survivor beneficiary or beneficiaries commences in the month after the death of the retired member."

4.   Section 9-9-80 of the 1976 Code is amended to read:

"Section 9-9-80.   All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death; provided, that if a member of the System has elected an optional allowance the provisions thereof shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the estate of the member. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-9-70, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."

5.   The last paragraph of Section 9-11-120 of the 1976 Code, as amended by Act 170 of 1991, is further amended to read:

"Upon the death of a retired member on or after July 1, 1985 2000, there must be paid to the designated beneficiary or beneficiaries, if living at the time of the retired member's death, otherwise to the retired member's estate, a death life insurance benefit of two thousand dollars if the retired member had ten years of creditable service but less than twenty years, three four thousand dollars if the retired member had twenty years of creditable service but less than thirty twenty-five, and four six thousand dollars if the retired member had at least thirty


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twenty-five years of creditable service at the time of retirement, provided if the retired member's most recent employer prior to retirement is covered by the Group Life Insurance Program."

6.   Section 9-11-160 of the 1976 Code is amended to read:

"Section 9-11-160.   All retirement allowances shall be are payable in monthly installments ceasing with the last payment prior to death, provided that if a member has elected an optional allowance the provisions thereof shall apply. Upon the death of a retired member, the retirement allowance for the month the retired member died, if not previously paid, must be paid to the member's designated beneficiary, if the beneficiary is living at the time of the member's death, otherwise to the member's estate. If the retired member elected a survivor option pursuant to the optional forms of allowances in Section 9-11-150, any allowance payable to a survivor beneficiary commences in the month after the death of the retired member."

7.   Notwithstanding the general effective date of this section, this subsection takes effect July 1, 2000.

C.   All local school district classroom teachers must provide, to their employer, notice of their intent to retire after December 31, 2000, and before the end of the 2000-2001 school year. This notification must be submitted in writing no later than September 1, 2000. Employees electing to retire from the retirement system but choosing to stay employed under the Teacher and Employee Retention Incentive Program are exempt from this requirement.

D.   Persons who have served on active duty as commissioned officers in the United States Public Health Service may establish their period of service as creditable service in the South Carolina Retirement System in the same manner that military service is established as creditable service pursuant to Section 9-1-1140 of the 1976 Code, but this service must be established and purchased before January 1, 2001.

E.   Except as otherwise noted, this section takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

The question was the adoption of Section 3 pursuant to Rule 24B.

Section 3 was adopted.


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PART II, SECTION 4

The question was the adoption of Section 4 pursuant to Rule 24B.

Section 4 was adopted.

PART II, SECTION 6

The question was the adoption of Section 6 pursuant to Rule 24B.

Section 6 was adopted.

PART II, SECTION 8

The question was the adoption of Section 8 pursuant to Rule 24B.

Section 8 was adopted.

PART II, SECTION 9

The question was the adoption of Section 9 pursuant to Rule 24B.

Section 9 was adopted.

PART II, SECTION 10

The question was the adoption of Section 10 pursuant to Rule 24B.

Section 10 was adopted.

PART II, SECTION 11
Amendment No. 240

Senator SETZLER proposed the following Amendment No. 240 (4775EMS18.DOC), which was adopted (#36):

Amend the bill, as and if amended, Part II, Section 11, page 601, line 6, by inserting:

  / SECTION 11

TO AMEND SECTION 9-1-1795 OF THE 1976 CODE, RELATING TO AN EXCEPTION TO THE LIMITATION OF CERTAIN EARNINGS OF A RETIRED CERTIFIED TEACHER IN A FISCAL YEAR A RETIREE MAY RECEIVE FROM A COVERED EMPLOYER UNDER THE STATE RETIREMENT SYSTEM WITHOUT LOSS OF RETIREMENT BENEFITS, SO AS TO CHANGE FROM JULY 15 TO MAY 31 OF EACH YEAR THE TIME BEFORE WHICH A MEMBER OF THE SYSTEM MAY NOT


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BE CONSIDERED FOR EMPLOYMENT BY A SCHOOL DISTRICT.

A. Section 9-1-1795(B) of the 1976 Code, as added by Section 82, Part II, Act 100 of 1999 is amended to read:

"(B) For the provisions of this section to apply, the Department of Education must review and approve, from the documentation provided by the school district, that no qualified, non-retired nonretired member is available for employment in the position and that the member selected for employment meets the requirements of this section. However, a school district may not consider a member of the system for employment before July 15 May 31 of each year. After approval is received from the Department of Education, school districts must notify the State Board of Education of the engagement of a retired member as a teacher and the department must notify the State Retirement System of their exemption from the earnings limitation. If the employing district fails to notify the department of the engagement of a retired member as a teacher, the district shall reimburse the system for all benefits wrongly paid to the retired member."

B. This section takes effect July 1, 2000.     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

The question was the adoption of Section 11 pursuant to Rule 24B.

Section 11 was adopted.

PART II, SECTION 12

The question was the adoption of Section 12 pursuant to Rule 24B.

Section 12 was adopted.

PART II, SECTION 13

The question was the adoption of Section 13 pursuant to Rule 24B.

Section 13 was adopted but the section was subsequently deleted, on motion of Senator SETZLER, with unanimous consent.


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PART II, SECTION 15

The question was the adoption of Section 15 pursuant to Rule 24B.

Section 15 was adopted.

PART II, SECTION 18

The question was the adoption of Section 18 pursuant to Rule 24B.

Senator PASSAILAIGUE explained Section 18.

Section 18 was adopted.

Expression of Personal Interest

Senator RICHARDSON rose for an Expression of Personal Interest.

PART II, SECTION 20

The question was the adoption of Section 20 pursuant to Rule 24B.

Section 20 was adopted.

PART II, SECTION 25

The question was the adoption of Section 25 pursuant to Rule 24B.

Section 25 was adopted.

PART II, SECTION 26

The question was the adoption of Section 26 pursuant to Rule 24B.

Section 26 was adopted.

PART II, SECTION 27

The question was the adoption of Section 27 pursuant to Rule 24B.

Section 27 was adopted.

PART II, SECTION 28
Amendment No. 71A

Senator MESCHER proposed the following Amendment No. 71A (4775R048.WCM), which was adopted (#37):

Amend the bill as and if amended, Part II, Permanent Provisions, page 624, beginning on line 33, by inserting:


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  / SECTION 28

TO AMEND THE 1976 CODE BY ADDING SECTION 59-47-120 SO AS TO REQUIRE TEACHING OR CLINICAL STAFF EMPLOYED BY THE SCHOOL FOR THE DEAF AND BLIND WHO ATTEND ADVANCED TRAINING PAID FOR BY THE SCHOOL TO REIMBURSE THE SCHOOL FOR EXPENSES INCURRED FOR THE TRAINING IF THE EMPLOYEE BREACHES A CONTRACT TO REMAIN IN THE EMPLOYMENT OF THE SCHOOL FOR A MINIMUM OF ONE YEAR BEYOND COMPLETION OF THE PROGRAM.

The 1976 Code is amended, by adding:

"Section 59-47-120.   (A)   Teaching or clinical staff employed by the school who attend advanced training paid for by the school may be required to enter a contract with the school to remain in the employment of the school for a minimum of one year beyond completion of the training. If an employee breaches this contract, the employee shall reimburse the school for all expenses incurred by the school in providing this training for the employee.

(B)   For purposes of this section, 'advanced training' means an educational course or program as defined by the school in regulation."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

The question was the adoption of Section 28 pursuant to Rule 24B.

Section 28 was adopted.

PART II, SECTION 31

The question was the adoption of Section 31 pursuant to Rule 24B.

Section 31 was adopted.

PART II, SECTION 32
Amendment No. 162

Senator HAYES proposed the following Amendment No. 162 (9625HTC00.DOC), which was adopted (#38):

(Reference is the Senate Finance Committee Report)


Printed Page 2983 . . . . . Thursday, May 11, 2000

Amend the bill as and if amended, Part II, by Section 32, page 626, Section 9-9-50(4) as contained in subsection A, by inserting before the period on line 33 /except that the cost of nonqualified service is sixty-eight percent instead of thirty-five percent /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator HAYES explained the amendment.

The amendment was adopted.

The question was the adoption of Section 32 pursuant to Rule 24B.

Section 32 was adopted.

RECESS

At 11:50 A.M., on motion of Senator DRUMMOND, the Senate receded from business not to exceed twenty minutes.

At 12:20 P.M., the Senate resumed.

PART II, SECTION 33

The question was the adoption of Section 33 pursuant to Rule 24B.

Section 33 was adopted.

PART II, SECTION 36

The question was the adoption of Section 36 pursuant to Rule 24B.

Section 36 was adopted.

PART II, SECTION 40

The question was the adoption of Section 40 pursuant to Rule 24B.

Section 40 was adopted.

PART II, SECTION 42

The question was the adoption of Section 42 pursuant to Rule 24B.

Section 42 was adopted.


Printed Page 2984 . . . . . Thursday, May 11, 2000

PART II, SECTION 43

The question was the adoption of Section 43 pursuant to Rule 24B.

Section 43 was adopted.

PART II, SECTION 44

The question was the adoption of Section 44 pursuant to Rule 24B.

Section 44 was adopted.

PART II, SECTION 45

The question was the adoption of Section 45 pursuant to Rule 24B.

Section 45 was adopted.

PART II, SECTION 46

The question was the adoption of Section 46 pursuant to Rule 24B.

Senator SETZLER explained Section 46.

Section 46 was adopted.

PART II, SECTION 47

The question was the adoption of Section 47 pursuant to Rule 24B.

Section 47 was adopted.

PART II, SECTION 48
Amendment No. 86

Senator MOORE proposed the following Amendment No. 86 (4775M002.DOC), which was adopted (#39):

Amend the bill, as and if amended, Part II, SECTION 48, by striking subsection   /   B.   / and inserting in lieu thereof the following:

/   B.   Article 1, Chapter 7, Title 44 of the 1976 Code is amended by adding:

"Section   44-7-78. Notwithstanding any other provision of law, an entity that operates a health care facility as defined in Section 44-7-130(10) may develop and operate facilities, programs, and services in any location where such facilities, programs, or services support the entity or provide services to residents in the area, provided all other statutory and regulatory requirements are met, including the State


Printed Page 2985 . . . . . Thursday, May 11, 2000

Certification of Need and Health Facility Licensure Act, Article 3, Chapter 7, Title 44 and related regulations promulgated by the department."

C.   This section takes effect July 1, 2000.     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

The question was the adoption of Section 48 pursuant to Rule 24B.

Section 48, as amended, was adopted.

PART II, SECTION 50

The question was the adoption of Section 50 pursuant to Rule 24B.

Section 50 was adopted.

PART II, SECTION 51

The question was the adoption of Section 51 pursuant to Rule 24B.

Section 51 was adopted.

PART II, SECTION 52

The question was the adoption of Section 52 pursuant to Rule 24B.

Section 52 was adopted.

PART II, SECTION 53
Amendment No. 23

Senators MARTIN and BRYAN proposed the following Amendment No. 23 (3908MM00.DOC), which was ruled out of order:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, beginning on page 659, by striking SECTION 53 in its entirety.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MARTIN explained the amendment.

Senator LAND spoke on the amendment.


Printed Page 2986 . . . . . Thursday, May 11, 2000

Point of Order

Senator HAYES raised a Point of Order under Rule 24 that Section 53 was out of order inasmuch as it was not germane to the Bill.

Senators LAND and MARTIN spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

Section 53 was ruled out of order and was, therefore, deleted from the Bill.

Senator HOLLAND spoke on the section.

PART II, SECTION 13

On motion of Senator SETZLER, with unanimous consent, Part II, Section 13, which had been previously adopted under the provisions of Rule 24B, was deleted from the Bill.

PART II, SECTION 54
Amendment No. 128

Senator BRYAN proposed the following Amendment No. 128 (4775R128.JEB), which was tabled:

Amend the bill, as and if amended, Part II, by striking SECTION 54 in its entirety.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator THOMAS explained the amendment.

Senator THOMAS moved to lay the amendment on the table.

The amendment was laid on the table.

Section 54

The question was the adoption of Section 54 pursuant to Rule 24B.

Section 54 was adopted.

PART II, SECTION 55
Amendment No. 92

Senators GIESE, RYBERG, BRANTON, MESCHER and RICHARDSON proposed the following Amendment No. 92 (9611HTC00.DOC), which was adopted (#40):

(Reference is the Senate Finance Committee Report)


Printed Page 2987 . . . . . Thursday, May 11, 2000

Amend the bill as and if amended, Part II, beginning on page 662, by striking SECTION 55 in its entirety.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GIESE explained the amendment.

Senator LEVENTIS argued contra to the adoption of the amendment.

Senator DRUMMOND moved that the amendment be adopted.

The amendment was adopted. Consequently, Section 55 was deleted from the Bill.

PART II, SECTION 56

The question was the adoption of Section 56 pursuant to Rule 24B.

Section 56 was adopted.

PART II, SECTION 57

The question was the adoption of Section 57 pursuant to Rule 24B.

Section 57 was adopted.

PART II, SECTION 58

The question was the adoption of Section 58 pursuant to Rule 24B.

Section 58 was adopted.

PART II, SECTION 59

The question was the adoption of Section 59 pursuant to Rule 24B.

Section 59 was adopted.

PART II, SECTION 60

The question was the adoption of Section 60 pursuant to Rule 24B.

Section 60 was adopted.


Printed Page 2988 . . . . . Thursday, May 11, 2000

PART II, SECTION 61
Amendment No. 59

On motion of Senator LEVENTIS, with unanimous consent, Amendment No. 59 was taken up for immediate consideration.

Senator LEVENTIS proposed the following Amendment No. 59 (BFD026.DOC):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, by adding Section 61:

  / SECTION 61

TO AMEND SECTION 1-30-110, RELATING TO THE ENTITIES INCORPORATED INTO AND ADMINISTERED AS PART OF THE OFFICE OF THE GOVERNOR, SO AS TO ADD THE EMERGENCY PREPAREDNESS DIVISION; TO AMEND SECTION 25-1-420, RELATING TO THE EMERGENCY PREPAREDNESS DIVISION OF THE OFFICE OF ADJUTANT GENERAL, SO AS TO TRANSFER THIS DIVISION FROM THE ADJUTANT GENERAL'S OFFICE TO THE GOVERNOR'S OFFICE; TO AMEND SECTION 49-23-60, AS AMENDED, RELATING TO THE MEMBERSHIP OF THE STATEWIDE DROUGHT RESPONSE COMMITTEE, SO AS TO MAKE A CONFORMING CHANGE; AND TO PROVIDE FOR THE TRANSITION OF EMPLOYEES AND PROPERTY ON JULY 1, 2000.

A.     Section 1-30-110 of the 1976 Code, as added by Act 181 of 1993, is amended to read:

"Section 1-30-110.   Effective July 1, 1993, The following agencies, boards, and commissions, including all of the allied, advisory, affiliated, or related entities as well as the employees, funds, property, and all contractual rights and obligations associated with any such agency, except for those subdivisions specifically included under another department, are hereby transferred to and incorporated in and shall be administered as part of the office of the Governor:

(1)   Continuum of Care for Emotionally Disturbed Children provided for at Section 20-7-5610, et seq.;

(2)   Guardian Ad Litem Program, formerly provided for at Section 20-7-121, et seq.;

(3)   State Office of Victim's Assistance, formerly provided for at Section 16-3-1110, et seq.;

(4)   Department of Veterans Affairs, formerly provided for at Section 25-11-10, et seq.;


Printed Page 2989 . . . . . Thursday, May 11, 2000

(5)   Commission on Women, formerly provided for at Section 1-15-10, et seq.;

(6)   Commission on Aging, formerly provided for at Section 43-21-10, et seq.;

(7)   Foster Care Review Board, formerly provided for at Section 20-7-2376, et seq.; and

(8)   Emergency Preparedness Division, provided for in Chapter 1 of Title 25."

B.     Section   25-1-420 of the 1976 Code is amended to read:

"Section 25-1-420.   There is established within the office of the Adjutant General Governor the South Carolina Emergency Preparedness Division (division).

The division shall be administered by a director appointed by the Adjutant General, Governor, to serve at his pleasure pursuant to Section 1-3-240(B), and such additional staff as may be employed or appointed by the Adjutant General Governor.

The division shall be is responsible for the implementation of the following:

(a)   coordinating the efforts of all state, county, and municipal agencies and departments in developing a State Emergency Plan;

(b)   conducting a statewide preparedness program to assure the capability of state, county, and municipal governments to execute the State Emergency Plan;

(c)   establishing and maintaining a State Emergency Operations Center and providing support of the state emergency staff and work force;

(d)   establishing an effective system for reporting, analyzing, displaying, and disseminating emergency information."

C.     Section 49-23-60(a)(1) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:

"(1)   A statewide committee composed of the following state agencies: South Carolina Emergency Preparedness Division of the office of the Adjutant General Governor, South Carolina Department of Health and Environmental Control, Department of Agriculture, South Carolina Forestry Commission, and South Carolina Department of Natural Resources."

D.     (A)   The employees, authorized appropriations, bonded indebtedness, if any, and real and personal property of the Emergency Preparedness Division of the office of the Adjutant General are transferred to and become part of the office of the Governor. The classified or unclassified personnel of this division employed on the


Printed Page 2990 . . . . . Thursday, May 11, 2000

effective date of this section, either by contract or by employment at will, shall become employees of the office of the Governor, with the same compensation, classification, and grade level, as applicable. The Budget and Control Board shall cause all necessary actions to be taken to accomplish this transfer and, in consultation with the Adjutant General and the Governor, shall prescribe the manner in which the transfer provided for in this section must be accomplished.

(B)   Employees or personnel of the division transferred to the office of the Governor pursuant to the terms of this section shall continue to occupy the same office locations and facilities as they now occupy unless or until otherwise changed by appropriate action and authorization. The rent and physical plant operating costs of these offices and facilities, if any, shall continue to be paid by the Adjutant General's office unless otherwise provided by the General Assembly. The records and files of the Adjutant General's office shall continue to remain the property of this office, except that the transferred employees shall have complete access to these records and files in the performance of their duties as new employees of the office of the Governor.

E.     This section takes effect on July 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS explained the amendment.

Senator RAVENEL spoke on the amendment.

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

RECESS

At 1:40 P.M., with Senator RAVENEL retaining the floor, on motion of Senator DRUMMOND, with unanimous consent, the Senate receded from business not to exceed thirty minutes.

AFTERNOON SESSION

The Senate reassembled at 2:27 P.M., and was called to order by the PRESIDENT.


Printed Page 2991 . . . . . Thursday, May 11, 2000

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE WITH AMENDMENTS

H. 4775--GENERAL APPROPRIATION BILL

The Senate resumed consideration of the Bill. The question being the adoption of Amendment No. 59 (BFD026.DOC), proposed by Senator LEVENTIS. The amendment was not adopted.

Senator RAVENEL spoke on the amendment.

Senator LEVENTIS spoke on the amendment.

Senator LEVENTIS moved that the amendment be adopted.

Point of Quorum

At 2:34 P.M., Senator BRANTON made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

Senator LEVENTIS spoke on the amendment.

Senator RYBERG moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 18; Nays 24

AYES

Alexander                 Bauer                     Branton
Courson                   Fair                      Giese
Gregory                   Grooms                    Hayes
Leatherman                Martin                    Mescher
Peeler                    Richardson                Russell
Ryberg                    Thomas                    Wilson

Total--18

NAYS

Anderson                  Bryan                     Drummond
Elliott                   Ford                      Glover
Hutto                     Jackson                   Land
Leventis                  Matthews                  McGill

Printed Page 2992 . . . . . Thursday, May 11, 2000

Moore                     O'Dell                    Passailaigue
Patterson                 Rankin                    Ravenel
Reese                     Saleeby                   Setzler
Short                     Smith, J. Verne           Washington

Total--24

The Senate refused to table the amendment. The question then was the adoption of the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 25; Nays 18

AYES

Anderson                  Bryan                     Drummond
Elliott                   Ford                      Glover
Hutto                     Jackson                   Land
Leventis                  Matthews                  McConnell
McGill                    Moore                     O'Dell
Passailaigue              Patterson                 Rankin
Ravenel                   Reese                     Saleeby
Setzler                   Short                     Smith, J. Verne
Washington

Total--25

NAYS

Alexander                 Bauer                     Branton
Courson                   Fair                      Giese
Gregory                   Grooms                    Hayes
Leatherman                Martin                    Mescher
Peeler                    Richardson                Russell
Ryberg                    Thomas                    Wilson

Total--18

Having failed to receive the required vote, Amendment No. 59 was not adopted.


Printed Page 2993 . . . . . Thursday, May 11, 2000

PART II, SECTION 62
Amendment No. 65

Senator LEATHERMAN proposed the following Amendment No. 65 (9584HTC00.DOC), which was adopted (#41):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, beginning on page 674, by striking SECTION 62 in its entirety.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

Senator LEVENTIS argued contra to the adoption of the amendment.

Senator LEATHERMAN spoke on the amendment.

Senator LEVENTIS moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 10; Nays 32

AYES

Anderson                  Bauer                     Drummond
Ford                      Glover                    Leventis
Passailaigue              Patterson                 Richardson
Saleeby

Total--10

NAYS

Alexander                 Branton                   Bryan
Courson                   Elliott                   Fair
Giese                     Gregory                   Grooms
Hayes                     Hutto                     Jackson
Land                      Leatherman                Martin
McConnell                 McGill                    Mescher
Moore                     O'Dell                    Peeler
Rankin                    Ravenel                   Reese
Russell                   Ryberg                    Setzler

Printed Page 2994 . . . . . Thursday, May 11, 2000

Short                     Smith, J. Verne           Thomas
Washington                Wilson

Total--32

The Senate refused to table the amendment. The question then was the adoption of the amendment.

The amendment was adopted.

The question then was the adoption of Section 62 pursuant to Rule 24B.

Section 62 was adopted.

PART II, SECTION 63

The question was the adoption of Section 63 pursuant to Rule 24B.

Section 63 was adopted.

PART II, SECTION 64

The question was the adoption of Section 64 pursuant to Rule 24B.

Motion Adopted

On motion of Senator LAND, with unanimous consent, 1998 was changed to 2000.

There was no objection.

Section 64 was adopted, as amended, pursuant to Rule 24B.

PART II, SECTION 66

The question was the adoption of Section 66 pursuant to Rule 24B.

Point of Order

Senator GROOMS raised a Point of Order that the section was out of order inasmuch as it was not germane to the Bill.

Senator PASSAILAIGUE spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Section 66 was adopted.


Printed Page 2995 . . . . . Thursday, May 11, 2000

PART II, SECTION 67
Amendment No. 233

Senator DRUMMOND proposed the following Amendment No. 233 (9608HTC00.DOC), which was adopted (#42):

Amend the bill as and if amended, Part II, Section 67 as inserted by the referenced amendment, page 13, by striking subsection E and inserting:

/ E.   The first two paragraphs of Section 9-1-1650 of the 1976 Code are amended to read:

"Should If a member cease ceases to be a teacher or employee except by death or retirement, he shall the member must be paid within six months after his the member's demand therefor for payment, but not less than ninety days after ceasing to be a teacher or employee, the sum of his the member's contributions and the accumulated regular interest thereon on the contributions. If such the member has five or more years of creditable earned service and elects, prior to before the time his the member's membership would otherwise terminate, elects to leave his these contributions in the system, he shall the member, unless and until such these contributions are paid to him as provided by this section prior to before the attainment of age sixty, remain remains a member of the system and shall be is entitled to receive a deferred retirement allowance commencing beginning at age sixty computed as a service retirement allowance in accordance with Section 9-1-1550. Provided, that the The employee annuity shall must be the actuarial equivalent at age sixty of the member's contributions with such the interest credits thereon on the contributions, if any, as shall be allowed by the board. Should If a member die dies before retirement, the amount of his the member's accumulated contributions shall must be paid to his the member's estate or to such the person as he shall have the member nominated by written designation, duly acknowledged and filed with the board.

Upon the death of a retired member who has not elected either Option 1 or Option 4 under Section 9-1-1620, a lump sum amount must be paid to the person as he has last nominated by written designation, duly acknowledged and filed with the board; otherwise, it must be paid to his estate. The amount must be equal to the excess, if any, of his total accumulated contributions at the time his retirement allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 2, 3, and 5 of SECTION 9-1-1620, during their lifetimes. Upon the death of a member who did not select a survivor option or who selected a survivor


Printed Page 2996 . . . . . Thursday, May 11, 2000

option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member. Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary. The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary. This paragraph does not govern lump sum distributions payable on account of members retiring under former Option 1 of Section 9-1-1620 or on account of members retiring before July 1, 1990 under former Option 4 of Section 9-1-1620." /

Amend further, Part II, Section 67 as inserted by the amendment, beginning on page 26, by striking subsection O and inserting:

/ O.   Section 9-11-130(1) of the 1976 Code is amended to read:

"(1)   The person nominated by a member, pursuant to Section 9-11-110, to receive a lump sum amount in the event of his death if the member dies before retirement may, if the member: (a) has five or more years of earned service; (b) dies in service; and (c) has either attained age fifty-five or has accumulated dies after the attainment of age fifty-five or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the lump sum amount otherwise payable under item (a) of subsection (1) of Section 9-11-110(1)(a) an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 1 B under Section 9-11-150(A). For purposes of the benefit calculation, a member under age fifty with less than thirty twenty-five years' credit is assumed to be fifty years of age." /

Amend further, Part II, Section 67 as inserted by the amendment, page 28, by striking subsection T and inserting:

/ T.1.   Section 9-1-1620 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:


Printed Page 2997 . . . . . Thursday, May 11, 2000

"Section 9-1-1620.   Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:

Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that if he dies within ten years from his retirement date, an amount equal to his accumulated contributions at retirement, less one-one hundred twentieth of the amount for each month for which he has received a retirement allowance payment, must be paid to his legal representatives or to the person he nominates by written designation duly acknowledged and filed with the board;

Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 3. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 4. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit. Cost-of-living and other special increases in benefits are not applied to the amount advanced under this option;

Option 5. A member may elect either Option 2 or 3 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;

Option 6. A member may elect Option 2 or 3 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so


Printed Page 2998 . . . . . Thursday, May 11, 2000

long as each beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.

A member having elected Option 2, 3, or 5 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the system: (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.

A member who retired under the provisions of Option 4 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

The board may approve a five-year pay-out plan developed by the actuary on the basis of the total retirement allowance for surviving beneficiaries, other than a spouse.

(A)   No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:


Printed Page 2999 . . . . . Thursday, May 11, 2000

Option A.   The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.

Option B.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

Option C.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

(B)(1)   A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under law. The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected.

(2)   Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice. A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided


Printed Page 3000 . . . . . Thursday, May 11, 2000

in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.

(C)   Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement. The provisions of subsection (B) apply to these members but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).

(D)   A member who retired under the provisions of the previously existing Social Security Advance Optio3n before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

2.   Section 9-11-150 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

"Section 9-11-150.   Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:

Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that the reduced allowance continues after his death to and for the life of the beneficiary, or to the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation


Printed Page 3001 . . . . . Thursday, May 11, 2000

duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 3. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit. Cost-of-living and other special increases in benefits are not applied to the amount advanced under this Option;

Option 4. A member may elect either Option 1 or 2 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;

Option 5. A member may elect Option 1 or 2 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as the beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.

A member having elected Option 1, 2, or 4 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the system: (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.


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A member who retired after the provisions of Option 3 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

(A)   No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:

Option A.   The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.

Option B.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

Option C.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member s elects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects


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multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

(B)(1)   A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under law. The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected.

(2)   Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice. A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.

(C)   Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement. the provisions of subsection (B) apply to these members, but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).

(D)   A member who retired under the provisions of the previously existing Social Security Advance Option before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

3.   Section 9-11-110(2) of the 1976 Code is amended to read:

"(2)   Upon the death of a retired member a lump sum amount must be paid to the person he has last nominated by written designation, duly acknowledged and filed with the Board, otherwise to his estate. The lump sum amount must be equal to the excess, if any, of his total


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accumulated contributions at the time his allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 1, 2, and 4 of SECTION 9-11-150, during their lifetimes. Upon the death of a member who did not select a survivor option or who selected a survivor option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member. Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary. The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary."

4.a.   Section 9-1-1660 of the 1976 Code is amended to read:

"Section 9-1-1660.   (1)(A)     The person nominated by a member to receive the full amount of his the member's accumulated contributions in the event of his death if the member dies before retirement may, if such the member:

(1)   has five or more years of earned service;

(2)   dies while in service; and

(3)   has either attained the age after the attainment of age sixty-five sixty years or after the accumulation of has accumulated fifteen years or more of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his the member's death and had named the person as beneficiary under an election of Option 2 B of Section 9-1-1620(A). For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.

(2)(B)   Any A person otherwise eligible under subsection (1) (A) of this section to elect to receive an allowance who has attained age sixty-five or after the accumulation of thirty years of creditable service or after the attainment of age sixty with twenty or more years of


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creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, may make the election provided for in subsection (1) (A). The monthly payments under Option 2 B to the person date from the time of the repayment of the accumulated contributions to the system."

b.   The amendment to Section 9-1-1660 of the 1976 Code, contained in subitem a of this item is considered the last and controlling amendment to this section in the 2000 session of the General Assembly.

U.   This section takes effect January 1, 2001. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND explained the amendment.

The amendment was adopted.

Amendment No. 234

Senators DRUMMOND and J. VERNE SMITH proposed the following Amendment No. 234 (22652HTC00.DOC), which was adopted (#43):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, beginning on page 680 by striking SECTION 67 and inserting:

  / SECTION 67

TO AMEND SECTIONS 9-1-10, 9-1-470, 9-1-1140, 9-1-1510, AND 9-1-1515, ALL AS AMENDED, 9-1-1540, 9-1-1550 AND 9-1-1770, BOTH AS AMENDED, 9-8-80, 9-9-80, 9-11-20, AS AMENDED, 9-11-160, 9-1-1650, AS AMENDED, 9-1-1660, 9-1-1850, AS AMENDED, AND 9-1-1910, OF THE 1976 CODE, ALL RELATING TO DEFINITIONS, MEMBERSHIP BY EMPLOYERS, PURCHASE OF SERVICE CREDIT, SERVICE RETIREMENT ELIGIBILITY AND EARLY RETIREMENT, DISABILITY RETIREMENT AND DISABILITY RETIREMENT ALLOWANCES, WITHDRAWAL OF CONTRIBUTIONS BY MEMBER AND PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, AND THE MINIMUM BENEFIT FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS-REFERENCES, CLARIFY


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THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE RETIREMENT PAYMENT PROVISIONS UPON THE DEATH OF A RETIRED MEMBER, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS AND DELETE THE LUMP SUM PURCHASE TO OFFSET A REDUCTION FOR EARLY RETIREMENT; TO ADD SECTION 9-1-1615 SO AS TO PROVIDE FOR RETIREMENT PAYMENT FOR THE MONTH IN WHICH THE RETIRED MEMBER DIED; TO AMEND SECTIONS 9-11-10, 9-11-40, 9-11-50, 9-11-60, 9-11-70, 9-11-80, ALL AS AMENDED, 9-11-130, 9-11-210, AS AMENDED, 9-11-220, AND 9-11-310, ALL RELATING TO DEFINITIONS, MEMBERSHIP OF EMPLOYERS AND EMPLOYEES, CREDITED SERVICE, SERVICE RETIREMENT ELIGIBILITY AND RETIREMENT ALLOWANCES, DISABILITY RETIREMENT, PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, EMPLOYER AND EMPLOYEE CONTRIBUTIONS, AND THE COST OF LIVING ADJUSTMENT, FOR PURPOSES OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS REFERENCES, CLARIFY THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS, AND TO CONFORM THE COST OF LIVING DEFINITION UNDER THIS SYSTEM TO THE DEFINITIONS USED IN THE SOUTH CAROLINA RETIREMENT SYSTEM; AND TO REPEAL SECTIONS 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, AND 9-11-330, ALL RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM OR THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS SECTION.

Amend title to conform.

A.   Section 9-1-10 of the 1976 Code, as last amended by Act 317 of 1998, is further amended to read:


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"Section 9-1-10.     The following words and phrases as used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:

(1)   "Retirement System" or "System" shall mean the South Carolina Retirement System established under SECTION 9-1-20;

(2)   "Public school" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed city, district or county school board;

(3)   "Teacher" shall mean any teacher, helping teacher, attendance teacher, librarian, principal, supervisor, superintendent of public schools, superintendent of public instruction, county superintendent of education, person employed in the office of a county superintendent of education, bus driver and any other person employed in the public schools supported by the State, counties and school districts;

(4)   "Employee" means:

(a)   to the extent he is compensated by the State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;

(b)   the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;

(c)   an agent or officer of a county, municipality, or school district, or an agency or department thereof, which has been admitted to the system under the provisions of Section 9-1-470, to the extent he is compensated for services from public funds;

(d)   an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;

(e)   an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization; and

(f)   an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.


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(g)   an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

"Employee" does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider those factors provided pursuant to Section 9-1-440;

(5)   "Employer" means the State, a county board of education, a district board of trustees, a city board of education, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of the State by which a teacher or employee is paid; the term "employer" also includes a county, municipality, or other political subdivision of the State, or an agency or department thereof, which has been admitted to the system under the provisions of Section 9-1-470, a service organization referred to in paragraph (4) of this section, an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20, and a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services;

(6)   "Member" shall mean any teacher or employee included in the membership of the System as provided in Article 5 of this chapter and for the purpose of establishing additional service it shall mean in service;

(7)   "Board" shall mean the State Budget and Control Board which shall act under the provisions of this chapter through its division of personnel administration;

(8)   "Medical Board" shall mean the board of physicians provided for in SECTION 9-1-220;

(9)   "Service" shall mean service as a teacher or employee rendered to and paid for by an employer;

(10)   "Prior service" shall mean service rendered as a teacher or employee prior to the date of membership for which credit is allowable under Article 7 of this chapter;

(11)   "Membership service" shall mean service as a teacher or employee rendered while a member of the System;


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(12)   "Creditable service" shall mean prior service plus membership service for which credit is allowable as provided in Article 7 of this chapter;

(13)   "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the System;

(14)   "Regular interest" shall mean interest compounded annually at such rate as shall be determined by the Board in accordance with SECTION 9-1-280;

(15)   "Accumulated contribution" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the employee annuity savings fund, together with regular interest thereon, as provided in Article 9 of this chapter;

(16)   "Earnable compensation" shall mean the full rate of the compensation that would be payable to a teacher or employee if he worked for his full normal working time; when compensation includes maintenance, fees and other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer;

(17)   "Average final compensation" with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office;

(18)   "Employee annuity" shall mean annual payments for life derived from the accumulated contributions of a member;

(19)   "Employer annuity" shall mean annual payments for life derived from money provided by the employer;

(20)   "Retirement allowance" shall mean the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu thereof;

(21)   "Retirement" shall mean the withdrawal from active service with a retirement allowance granted under the System;


Printed Page 3010 . . . . . Thursday, May 11, 2000

(22)   "Employee annuity reserve" shall mean the present value of all payments to be made on account of an employee annuity or benefit in lieu thereof, computed on the basis of such mortality tables as shall be adopted by the Board and regular interest;

(23)   "Employer annuity reserve" shall mean the present value of all payments to be made on account of an employer annuity or benefit in lieu thereof, computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest; and

(24)   "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest.

As used in this chapter, unless a different meaning is plainly required by the context:

(1)   'Accumulated contribution' means the sum of all the amounts deducted from the compensation of a member and credited to the members individual account in the employee annuity savings fund, together with regular interest on the account, as provided in Article 9 of this chapter.

(2)   'Active member' means an employee who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.

(3)   'Actuarial equivalent' means a benefit of equal value when computed upon the basis of mortality tables adopted by the board and regular interest.

(4)   'Average final compensation' with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the system producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months before the expiration of the elected official's term of office.

(5)   'Beneficiary' means a person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the system.

(6)   'Board' means the State Budget and Control Board which shall act under the provisions of this chapter through its Division of Retirement Systems.


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(7)   'Creditable service' means a member's earned service, prior service, and purchased service.

(8)   'Earnable compensation' means the full rate of the compensation that would be payable to a member if the member worked the member's full normal working time; when compensation includes maintenance, fees, and other things of value the board shall fix the value of that part of the compensation not paid in money directly by the employer.

(9)   'Earned service' means paid employment as a teacher or employee of an employer participating in the system where the teacher or employee makes regular retirement contributions to the system.

(10)   'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.

(11)   'Employee' means:

(a)   to the extent compensated by this State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;

(b)   the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;

(c)   an employee, agent, or officer of a county, municipality, or school district, or an agency or department of any of these, which has been admitted to the system under the provisions of Section 9-1-470, to the extent the employee, agent, or officer is compensated for services from public funds;

(d)   an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;

(e)   an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization;

(f)   an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.


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(g)   an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

'Employee' does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider the guidelines of the Social Security Administration regarding student services and other criteria the system uniformly prescribes.

(12)   'Employee annuity' means annual payments for life derived from the accumulated contributions of a member.

(13)   'Employee annuity reserve' means the present value of all payments to be made on account of an employee annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.

(14)   'Employer' means this State, a county board of education, a district board of trustees, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of this State by which a teacher or employee is paid; the term 'employer' also includes a county, municipality, or other political subdivision of the State, or an agency or department of any of these, which has been admitted to the system under the provisions of Section 9-1-470, a service organization referred to in item (11)(e) of this section, an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20, and a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

(15)   'Employer annuity' means annual payments for life derived from money provided by the employer.

(16)'Employer annuity reserve' means the present value of all payments to be made on account of an employer annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.

(17)   'Medical board' means the board of physicians provided for in Section 9-1-220.

(18)   'Member' means a teacher or employee included in the membership of the system as provided in Article 5 of this chapter.

(19)   'Military service' means:


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(a)   service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;

(b)   service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve, and

(c)   service as a member of the Army National Guard or Air National Guard of this or any other state.

(20)   'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.

(21)   'Prior service' means service rendered as a teacher or employee before July 1, 1945, for which credit is allowable under Article 7 of this chapter.

(22)   'Public school' means a school conducted within this State under the authority and supervision of a duly elected or appointed school district board of trustees.

(23)   'Public Service' means service as an employee of the government of the United States, a state or political subdivision of the United States, or an agency or instrumentality of any of these. 'Public service' does not include 'educational service' or 'military service' as defined in this section.

(24)   'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.

(25)   'Regular interest' means interest compounded annually at a rate determined by the board in accordance with Section 9-1-280.

(26)   'Retirement' means the withdrawal from active service with a retirement allowance granted under the system.

(27)   'Retirement allowance' means the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu of the annuity.

(28)   'Retirement system' or 'system' means the South Carolina Retirement System established under Section 9-1-20.

(29)   'State' or 'this State' means the State of South Carolina;

(30)   'Teacher' means a classroom teacher employed in the public schools supported by this State as determined by the board."

B.     Section 9-1-470 of the 1976 Code, as amended by Act 555 of 1988, is further amended to read:

"Section 9-1-470.   Any A county, municipality, or other political subdivision of the State, any an agency or department of them, including a school board, any a service organization as defined in


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Section 9-1-10(4) 9-1-10(11)(e), and any nonprofit corporation created under the provisions of Chapter 35 of Title 33, for the purpose of supplying water and sewer, may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements and the regulations of the board."

C.     Section 9-1-1140 of the 1976 Code, as last amended by Act 439 of 1988, is further amended to read:

"Section 9-1-1140.     Subject to the approval of the Board, any member who is on leave of absence on account of military service or for any other purpose which might tend to increase the efficiency of the services of the member to his employer may make monthly contributions to the System on the basis of the earnable compensation of such member at the time such leave of absence was granted. Any person on leave of absence in the armed forces of the United States who would otherwise have qualified for prior service credit is entitled to prior service credit if he returns to the service of teaching or any other employment covered by or coming within the meaning hereof within a period of two years after he has been honorably discharged. Employees under current employment by the State are eligible to establish credit for previous employment with the regional councils of government if the period is not covered by another retirement plan and payment is rendered in accordance with Section 9-1-440.

A period of time up to one year for each pregnancy not to exceed a total of three years service credit may be established for maternity leave provided the member pays the full actuarial cost as determined by the board. However, the payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.

Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service at the rate of one year of military service for each one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been


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required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title. Any former employee of the United States employed in this State by an employer covered by the system, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment may not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event may any benefits payable under the

Printed Page 3016 . . . . . Thursday, May 11, 2000

system duplicate benefits being paid under any retirement system for the same period of service.

A member who leaves covered employment to attend undergraduate or graduate school and returns to covered employment within ninety days after the member's last date of enrollment may establish up to two years' retirement credit by paying the actuarial cost as determined by the board. However, the member contribution must not be less than twelve percent of current salary or the average of the three highest consecutive fiscal years, whichever is greater, for each year prorated for periods of less than a year.

Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.

Previous service of a member as an employee of a redevelopment commission created by the governing body of a municipality in this State may be established as creditable service upon payment of an amount determined as provided pursuant to Section 9-1-440.

At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.

(A)   An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of public service for which the member also may receive a retirement benefit from another retirement plan.

(B)   An active member may establish service credit for any period of paid educational service by making a payment to the system determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of


Printed Page 3017 . . . . . Thursday, May 11, 2000

educational service for which the member also may receive a retirement benefit from another retirement plan.

(C)   An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(D)   An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(E)   An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(F)   An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.

(G)   An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments. Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.

(H)   An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter. Any amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.

(I)   Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.


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(J)   A member may purchase each type of service under this section once each fiscal year.

(K)   The board shall promulgate regulations and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter.

(L)   At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement."

D.   The first paragraph of Section 9-1-1540 of the 1976 Code is amended to read:

"Upon the application of a member in service or of his employer, any a member in service on or after July 1, 1970, who has had five or more years of creditable earned service or any a contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership on or after July 1, 1985, may be retired by the board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

E.     The first paragraph of Section 9-1-1650 of the 1976 Code is amended to read:

"Should If a member cease ceases to be a teacher or employee except by death or retirement, he shall the member must be paid within six months after his the member's demand therefor for payment, but not less than ninety days after ceasing to be a teacher or employee, the sum of his the member's contributions and the accumulated regular interest thereon on the contributions. If such the member has five or more years of creditable earned service and elects, prior to before the time his the member's membership would otherwise terminate, elects to leave his these contributions in the system, he shall the member, unless and until such these contributions are paid to him as provided by this section prior to before the attainment of age sixty, remain remains a member of the system and shall be is entitled to receive a deferred retirement allowance commencing beginning at age sixty computed as a service retirement allowance in accordance with Section 9-1-1550.


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Provided, that the The employee annuity shall must be the actuarial equivalent at age sixty of the member's contributions with such the interest credits thereon on the contributions, if any, as shall be allowed by the board. Should If a member die dies before retirement, the amount of his the member's accumulated contributions shall must be paid to his the member's estate or to such the person as he shall have the member nominated by written designation, duly acknowledged and filed with the board."

F.     The first paragraph of Section 9-1-1910 of the 1976 Code is amended to read:

"Any person who has retired or may retire under the provisions of the South Carolina Retirement Act while in service as such teacher or employee, and A member with five or more years of earned service, eligible for service retirement, who has twenty or more years of creditable service shall must be paid from the general fund of the State, a monthly sum in addition to the retirement allowance he may receive under the act, due the member under this chapter sufficient to provide him the member a minimum eighty dollars per a month, plus one dollar per a month for each completed year of creditable service in excess of twenty years. Provided, however, that should such If the teacher or employee elect elects to receive a reduced retirement allowance as provided in the act this chapter, he shall the teacher or employee must be paid under the provisions of this section only such the amount as would be paid under the section had he the teacher or employee not elected such the optional allowance."

G.   Section 9-11-10 of the 1976 Code, as last amended by Act 72 of 1999, is further amended to read:

"Section 9-11-10.     The following words and phrases as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings:

(1)   "System" shall mean the South Carolina Police Officers Retirement System.

(2)   "State" shall mean the State of South Carolina.

(3)   "Board" shall mean the State Budget and Control Board.

(4)   "Medical board" shall mean the board provided for in SECTION 9-11-30(2).

(5)   "Employer" shall mean (a) the State, (b) any political subdivision, agency or department of the State which employs police officers and which shall have been admitted to the System as provided in SECTION 9-11-40 and (c) any service organization, the membership of which is composed solely of persons eligible to be


Printed Page 3020 . . . . . Thursday, May 11, 2000

members as defined by this section, if the compensation received by the employees of such service organizations shall be provided from moneys paid by the members as dues, or otherwise, or from funds derived from public sources and if the contributions prescribed by this Title shall be paid from the funds of the service organization.

(6)   "Police officer" means a person who receives his salary from an employer and who is:

(a)   required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in the State;

(b)   an employee after January 1, 2000, of the South Carolina Department of Corrections or the Department of Juvenile Justice and by the terms of his employment is a peace officer as defined by Section 24-1-280.

Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.

(7)   "Member" shall mean any police officer included in the membership of the System, as provided in SECTION 9-11-40 and for the purpose of establishing additional service credit it shall mean in service.

(8)   "Service" shall mean service as a police officer rendered to any employer.

(9)   "Credited service" shall mean service for which credit is allowable as provided in SECTION 9-11-50.

(10)   "Supplemental Allowance Program" shall mean the Supplemental Allowance Program established under the System as of July 1, 1966 and as in effect on June 30, 1974.

(11)   "Class Two service" shall mean credited service subsequent to June 30, 1974 as a Class Two member, as defined in subsection (7) of SECTION 9-11-40, and credited service prior to July 1, 1974, or date of membership, if later, with respect to which contributions shall have been made by a member, or on his behalf, under the Supplemental Allowance Program or pursuant to subsection (2), (3), (4) or (10) of SECTION 9-11-210.

(12)   "Class One service" shall mean credited service which is not Class Two service.

(13)   "Compensation" shall mean the total remuneration paid to a police officer for service rendered to an employer for his full normal working time; when compensation includes maintenance, fees and


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other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer.

(14)   "Average final compensation after July 1, 1986" means the average annual compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.

(15)   "Retirement allowance" shall mean monthly payments for life under the System payable as provided in SECTION 9-11-160.

(16)   "Beneficiary" shall mean any person in receipt of a retirement allowance or other benefit as provided by the System.

(17)   "Other fund" shall mean (a) the South Carolina Retirement System or (b) the Police Insurance and Annuity Fund of the State of South Carolina.

(18)   "Aggregate contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the System, including any amounts transferred from another fund to the System as provided in SECTION 9-11-210(6).

(19)   "Regular interest" shall mean interest compounded annually at such rate or rates as shall be determined for a particular purpose by the Board in accordance with SECTION 9-11-30.

(20)   "Accumulated contributions" shall mean a member's aggregate contributions, together with regular interest thereon, including regular interest on contributions paid to the System by an employer in lieu of contributions by the member under the Supplemental Allowance Program on account of credited service rendered prior to his date of participation in said Program.

(21)   "Aggregate additional contributions" shall mean the sum of all the contributions made by a member pursuant to SECTION 9-11-210 as in effect prior to July 1, 1974 and any amounts transferred from another fund which are treated as additional contributions pursuant to SECTION 9-11-210 as in effect prior to July 1, 1974 or SECTION 9-11-210(6) as amended as of said date.


Printed Page 3022 . . . . . Thursday, May 11, 2000

(22)   "Accumulated additional contributions" shall mean a member's aggregate additional contributions, together with regular interest thereon.

(23)   "Actuarial equivalent" shall mean a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the Board, as provided in SECTION 9-11-30.

(24)   "Date of establishment" shall mean July 1, 1962.

As used in this chapter, unless a different meaning is plainly required by the context:

(1)   'Accumulated additional contributions' means a member's aggregate additional contributions, together with regular interest on the contributions.

(2)   'Accumulated contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the employee annuity savings fund, together with regular interest on the account, as provided in this chapter.

(3)   'Active member' means a member who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.

(4)   'Actuarial equivalent' means a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the board, as provided in Section 9-11-30.

(5)   'Aggregate additional contributions' means the sum of all the contributions made by a member pursuant to Section 9-11-210 in effect before July 1, 1974, and any amounts transferred from another fund which are treated as additional contributions pursuant to Section 9-11-210 in effect before July 1, 1974, or Section 9-11-210(6) as amended as of that date.

(6)   'Aggregate contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the system, including any amounts transferred from another fund to the system as provided in Section 9-11-210(6).

(7)   'Average final compensation after July 1, 1986' means the average annual compensation of a member during the twelve consecutive quarters of the member's creditable service on which regular contributions as a member were made to the system producing the highest average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination


Printed Page 3023 . . . . . Thursday, May 11, 2000

pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.

(8)   'Beneficiary' means a person in receipt of a retirement allowance or other benefit provided by the system.

(9)   'Board' means the State Budget and Control Board acting through its Division of Retirement Systems.

(10)   'Class one service' means credited service which is not class two service.

(11)   'Class two service' means credited service after June 30, 1974, as a class two member, as defined in subsection (7) of Section 9-11-40, and credited service before July 1, 1974, or date of membership, if later, with respect to which contributions have been made by a member, or on the member's behalf, under the supplemental allowance program or pursuant to subsection (2), (3), or (10) of Section 9-11-210.

(12)   'Compensation' means the total remuneration paid to a police officer for service rendered to an employer for his full normal working time; when compensation includes maintenance, fees and other things of value, the board shall fix the value of that part of the compensation not paid in money directly by the employer.

(13)   'Credited service' means a member's earned service and purchased service.

(14)   'Date of establishment' means July 1, 1962.

(15)   'Earned service' means the paid employment of a member of the system with an employer participating in the system where the member makes regular retirement contributions to the system.

(16)   'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.

(17)   'Employer' means:

(a)   the State;

(b)   a political subdivision, agency, or department of the State which employs police officers and which has been admitted to the system as provided in Section 9-11-40; and

(c)   a service organization, the membership of which is composed solely of persons eligible to be members as defined by this section, if the compensation received by the employees of the service organization is provided from monies paid by the members as dues, or otherwise, or from funds derived from public sources and if the


Printed Page 3024 . . . . . Thursday, May 11, 2000

contributions prescribed by this chapter are to be paid from the funds of the service organization.

(18)   'Medical board' means the board provided for in Section 9-11-30(2).

(19)   'Member' means a person included in the membership of the system, as provided in this chapter.

(20)   'Military service' means:

(a)   service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;

(b)   service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve; and

(c)   service as a member of the Army National Guard or Air National Guard of this or any other state.

(21)   'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.

(22)   'Other fund' means:

(a)   the South Carolina Retirement System; or

(b)   the Police Insurance and Annuity Fund of the State of South Carolina.

(23)   'Police officer' means a person who receives his salary from an employer and who is:

(a)   required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in this State; or

(b)   an employee after January 1, 2000, of the South Carolina Department of Corrections or the South Carolina Department of Juvenile Justice who, by the terms of his employment, is a peace officer as defined by Section 24-1-280.

Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.

(24)   'Public Service' means service as an employee of the government of the United States, any state or political subdivision of the United States, or any agency or instrumentality of any of these. The term 'public service' does not include 'educational service' or 'military service' as defined in this section.


Printed Page 3025 . . . . . Thursday, May 11, 2000

(25)   'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.

(26)   'Regular interest' means interest compounded annually at the rate or rates determined for a particular purpose by the board in accordance with Section 9-11-30.

(27)   'Retirement allowance' means monthly payments for life under the system payable as provided in Section 9-11-160.

(28)   'State' means the State of South Carolina.

(29)   'Supplemental allowance program' means the supplemental allowance program established under the system as of July 1, 1966, and as in effect on June 30, 1974.

(30)   'System' means the South Carolina Police Officers Retirement System."

H.   Items (a) and (d) of Section 9-11-40(1) of the 1976 Code are amended to read:

"(a)   Any A county, municipality, or other political subdivision of the State, and any an agency or department thereof of a political subdivision or any a service organization referred to in item (5) of Section 9-11-10 9-11-10(17)(c) may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements hereof of this section and the rules and regulations of the board. Such The application shall must set forth the requested date of admission, which shall must be the January first, or the April first, or the July first, or the October first next following receipt by the board of such the application, except that in the case of any applications so received prior to before January 1, 1963, the requested date of admission may be July 1, 1962.

(d)   Any An employer whose requested date of admission is on or after July 1, 1974, shall agree to make contributions on account of all service prior to before the date of admission rendered by members in its employ who make contributions with respect to such service as provided in Section 9-11-210(4)."

I.     Section 9-11-40(4) of the 1976 Code is amended to read:

"(4)   All persons who become employed as police officers by the State or other employer after the employer's date of admission to the system under the provisions of this section shall must become members, as a condition of their employment.

Notwithstanding the foregoing provisions of this subsection, no person shall become a member on or after July 1, 1963 unless his employer certifies to the system that his service as a police officer will require requires at least one thousand six hundred hours per a year of


Printed Page 3026 . . . . . Thursday, May 11, 2000

active duty and that his the person's salary for such the service will be is at least two thousand dollars per a year. If in any year subsequent to such after this certification the member does not render at least one thousand six hundred hours of active duty as a police officer, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 shall apply."

J.     The fifth paragraph of Section 9-11-40(10) of the 1976 Code is amended to read:

"Notwithstanding the foregoing provisions of this subsection, no fireman shall become a member on or after July 1, 1976, unless his the member's employer certifies to the system that his service as a fireman will require requires at least one thousand, six hundred hours per a year of active duty and that his the member's salary for such the service will be is at least two thousand dollars per a year. If in any year subsequent to such after this certification the member does not render at least one thousand, six hundred hours of active duty as a fireman, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 of the 1976 Code shall apply."

K.   Section 9-11-50 of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:

"Section 9-11-50.   (1)   The credited service of a member shall include all service as a police officer rendered to an employer since he last became a member and in respect of which he made contributions to the System. It shall also include, in the case of a member (a) who became such on or before June 30, 1963, or who became such as of July 1, 1962 pursuant to subsection (1) (b) or (1) (c) of SECTION 9-11-40, and (b) who remained a member continuously thereafter until his death or his retirement under the System and (c) who was, immediately prior to his becoming a member, a participant in another fund, service which was credited to him under such other fund; provided that within two months of the date of his membership he shall have caused the amount of his full contributions made under such other fund in respect of such service to be transferred to the System. In addition, in the case of any other member who becomes a member when first eligible and continues as a member until his death or his retirement, credited service shall also include all service prior to his date of membership for which contributions are made as provided in SECTION 9-11-210(4) or SECTION 9-11-210(10) and SECTION 9-11-220(2).


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(2)   When membership ceases for any reason other than death or retirement, the service credited to the member shall be cancelled and, should the police officer again become a member, he shall enter the System as a police officer not entitled to credit for previous service, unless he repays his accumulated contributions previously withdrawn as provided in subsection (3) of this section.

(3)   Any person employed as a police officer whose membership in the System was contingent on his own election and who elected not to become a member of the System may apply for and be admitted to membership. Anything herein contained to the contrary notwithstanding, the credited service of any such person shall include service rendered to an employer since he was first eligible to become a member; provided that he shall pay to the System, by a single payment prior to his retirement or death, the contributions specified in SECTION 9-11-210(4) with respect to the period of service since he first became eligible for membership. Any such member who makes such payment to establish credit for such service may also receive credit for service prior to his employer's date of participation in the System by making contributions pursuant to SECTION 9-11-210(4) on account of such service. Any former member who withdrew his contributions and has again become a member of the System may have the service credited to him under the System at the time he withdrew his contributions restored to him, provided he pays to the System, by a single payment prior to his retirement or death, the amount of the contributions previously withdrawn, together with the interest which would have been credited thereon had such contributions remained in the System to the date of his payment of such amount to the System.

(4)   Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case


Printed Page 3028 . . . . . Thursday, May 11, 2000

of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system under this title.

(5)   A period of time up to one year for each pregnancy not to exceed a total of three years of service credit may be established for maternity leave if the member pays the full actuarial cost as determined by the board. The payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.

(6)   (a)   A former employee of the United States employed in this State by an employer covered by the system and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment must not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis.


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This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service.

(b)   Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.

(7)   At retirement, after March 31, 1991, a member shall receive service credit for not more than ninety days of his unused sick leave at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.

(A)   An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of public service for which the member also may receive a retirement benefit from another retirement plan.

(B)   An active member may establish service credit for any period of paid educational service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of educational service for which the member also may receive a retirement benefit from another retirement plan.

(C)   An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.


Printed Page 3030 . . . . . Thursday, May 11, 2000

(D)   An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(E)   An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(F)   An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.

(G)   An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments. Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.

(H)   An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter. Amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.

(I)   Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.

(J)   A member may purchase each type of service under this section once each fiscal year.

(K)   At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.


Printed Page 3031 . . . . . Thursday, May 11, 2000

(L)   The board shall promulgate regulations, and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter."

L.     Subsections (1) and (3) of Section 9-11-60 of the 1976 Code, as last amended by Act 424 of 1988, are further amended to read:

"(1)   A member may retire upon written application to the board system setting forth at what time, not no more than ninety days before nor more than six months subsequent to after the execution and filing of the application, he the member desires to be retired, if the member at the time specified for his the member's service retirement has:

(a)   five or more years of earned service;

(b)   attained the age of fifty-five years; and completed five or more years of credited service and has

(c)   separated from service and, if the time specified is subsequent to the date of application, notwithstanding that, during the period of notification, he may have separated from service.

(3)   Reserved. Any member who has completed five or more years of credited service but has not attained age fifty-five, upon written application to the governing or administering board of his retirement system, may retire on an early retirement allowance commencing upon his attainment of age fifty-five, as follows:

(a)   If the member is less than fifty-five years of age and has at least twenty-five years of creditable service, he may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon his paying into his retirement system the actuarial cost as determined by regulation promulgated by the governing or administering board of his retirement system, provided the actuarial cost is determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater.

(b)   The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, and any service credit purchased must qualify the member for retirement and the member must retire within ninety days subsequent to the purchase."

M.   Section 9-11-70(1) of the 1976 Code is amended to read:

"(1)   Any A member in service who has completed five or more years of credited earned service but has not attained age fifty-five may, upon written application to the board, retire on an early retirement allowance commencing upon his attainment of beginning when the member attains age fifty-five."


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N.   The first paragraph of Section 9-11-80(1) of the 1976 Code is amended to read:

"Upon On the application of a member in service or of his the member's employer, any a member who has five or more completed years of credited earned service or any contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his the member's duties regardless of length of membership may be retired by the retirement board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

O.   Section 9-11-130(1) of the 1976 Code is amended to read:

"(1)   The person nominated by a member, pursuant to Section 9-11-110, to receive a lump sum amount in the event of his death if the member dies before retirement may, if the member: (a) has five or more years of earned service; (b) dies in service; and (c) has either attained age fifty-five or has accumulated dies after the attainment of age fifty-five or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the lump sum amount otherwise payable under item (a) of subsection (1) of Section 9-11-110(1)(a) an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named the person as beneficiary under an election of Option 1 under Section 9-11-150. For purposes of the benefit calculation, a member under age fifty with less than thirty years' credit is assumed to be fifty years of age."

P.     Section 9-11-210(4) of the 1976 Code, as amended by Act 420 of 1994, is further amended to read:

"(4)   A member who has rendered service before his date of membership which is not otherwise credited under the system may elect by written notice filed with the board at any time before retirement to establish credit for the service as Class One service in the case of a Class One member or as Class Two service in the case of a Class Two member. A member who makes this election shall make a special contribution to the system before retirement, determined as follows:

(a)   In the case of a Class One member, the amount which would have resulted if the member had contributed twenty-one dollars


Printed Page 3033 . . . . . Thursday, May 11, 2000

during each month of the service for which credit is to be established and such contributions were accumulated at regular interest to the date of payment; or

(b)   In the case of a Class Two member, six and one-half percent of the member's monthly rate of compensation at the time the contribution is made multiplied by the number of months of service for which credit is to be established. Reserved."

Q.   Section 9-11-220(2)(a) of the 1976 Code is amended to read:

"(a)   Reserved. If the special contribution is made pursuant to Section 9-11-210(2), the employer contribution shall be equal to such special contribution."

R.   Sections 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, and 9-11-330, all of the 1976 Code, are repealed.

S.   This section takes effect January 1, 2001. /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

Amendment No. 274

Senator SETZLER proposed the following Amendment No. 274 (BBM/9640HTC00.DOC), which was adopted (#44):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, SECTION 67, page 704, by adding an appropriately lettered subsection to read:

/ ___A.   Section 1-11-730 of the 1976 Code, as last amended by Act 230 of 1996, is further amended by adding an appropriately lettered subsection at the end to read:

"( )   A person covered by the state health and dental plans who terminated employment with at least eighteen years retirement service credit by a state-covered entity before eligibility for retirement under a state retirement system prior to 1990 is eligible for the plans effective on the date of retirement, if this person returns to a state-covered entity and is covered by the state health and dental plans and completes at least two consecutive years in a full-time, permanent position prior to the date of retirement."

B.   Notwithstanding the general effective date of this section, this subsection takes effect July 1, 2000. /

Renumber sections to conform.


Printed Page 3034 . . . . . Thursday, May 11, 2000

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Clerk's Amendment

The following amendment (4775R199FC), as approved by the Clerk, reconciled Amendments No. 233, 234, and 274 adopted during the consideration of H. 4775:

Amend the bill as and if amended, Part II, Permanent Provisions, beginning on page 680 by striking SECTION 67 and inserting:

  / SECTION 67

TO AMEND SECTIONS 9-1-10, 9-1-470, 9-1-1140, 9-1-1510, AND 9-1-1515, ALL AS AMENDED, 9-1-1540, 9-1-1550 AND 9-1-1770, BOTH AS AMENDED, 9-8-80, 9-9-80, 9-11-20, AS AMENDED, 9-11-160, 9-1-1650, AS AMENDED, 9-1-1660, 9-1-1850, AS AMENDED, AND 9-1-1910, OF THE 1976 CODE, ALL RELATING TO DEFINITIONS, MEMBERSHIP BY EMPLOYERS, PURCHASE OF SERVICE CREDIT, SERVICE RETIREMENT ELIGIBILITY AND EARLY RETIREMENT, DISABILITY RETIREMENT AND DISABILITY RETIREMENT ALLOWANCES, WITHDRAWAL OF CONTRIBUTIONS BY MEMBER AND PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, AND THE MINIMUM BENEFIT FOR PURPOSES OF THE SOUTH CAROLINA RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS-REFERENCES, CLARIFY THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE RETIREMENT PAYMENT PROVISIONS UPON THE DEATH OF A RETIRED MEMBER, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS AND DELETE THE LUMP SUM PURCHASE TO OFFSET A REDUCTION FOR EARLY RETIREMENT; TO ADD SECTION 9-1-1615 SO AS TO PROVIDE FOR RETIREMENT PAYMENT FOR THE MONTH IN WHICH THE RETIRED MEMBER DIED; TO AMEND SECTIONS 9-11-10, 9-11-40, 9-11-50, 9-11-60, 9-11-70, 9-11-80, ALL AS AMENDED, 9-11-130, 9-11-210, AS AMENDED, 9-11-220, AND 9-11-310, ALL


Printed Page 3035 . . . . . Thursday, May 11, 2000

RELATING TO DEFINITIONS, MEMBERSHIP OF EMPLOYERS AND EMPLOYEES, CREDITED SERVICE, SERVICE RETIREMENT ELIGIBILITY AND RETIREMENT ALLOWANCES, DISABILITY RETIREMENT, PROVISIONS FOR BENEFICIARIES WHEN A MEMBER DIES IN SERVICE, EMPLOYER AND EMPLOYEE CONTRIBUTIONS, AND THE COST OF LIVING ADJUSTMENT, FOR PURPOSES OF THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO REVISE AND PROVIDE ADDITIONAL DEFINITIONS, CORRECT CROSS REFERENCES, CLARIFY THAT A PREREQUISITE FOR ANY BENEFIT IS AT LEAST FIVE YEARS OF EARNED SERVICE, TO REVISE ELIGIBILITY REQUIREMENTS AND PAYMENT AMOUNTS REQUIRED TO ESTABLISH SERVICE CREDIT FOR SERVICE OUTSIDE OF THE VARIOUS STATE RETIREMENT SYSTEMS, AND TO CONFORM THE COST OF LIVING DEFINITION UNDER THIS SYSTEM TO THE DEFINITIONS USED IN THE SOUTH CAROLINA RETIREMENT SYSTEM; AND TO REPEAL SECTIONS 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, AND 9-11-330, ALL RELATING TO THE SOUTH CAROLINA RETIREMENT SYSTEM OR THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM AND ALL MADE OBSOLETE BY THE PROVISIONS OF THIS SECTION.

A.   Section 9-1-10 of the 1976 Code, as last amended by Act 317 of 1998, is further amended to read:

"Section 9-1-10.     The following words and phrases as used in this chapter, unless a different meaning is plainly required by the context, shall have the following meanings:

(1)   "Retirement System" or "System" shall mean the South Carolina Retirement System established under SECTION 9-1-20;

(2)   "Public school" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed city, district or county school board;

(3)   "Teacher" shall mean any teacher, helping teacher, attendance teacher, librarian, principal, supervisor, superintendent of public schools, superintendent of public instruction, county superintendent of education, person employed in the office of a county superintendent of education, bus driver and any other person employed in the public schools supported by the State, counties and school districts;

(4)   "Employee" means:


Printed Page 3036 . . . . . Thursday, May 11, 2000

(a)   to the extent he is compensated by the State, an employee, agent, or officer of the State or any of its departments, bureaus, and institutions, other than the public schools, whether the employee is elected, appointed, or employed;

(b)   the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;

(c)   an agent or officer of a county, municipality, or school district, or an agency or department thereof, which has been admitted to the system under the provisions of Section 9-1-470, to the extent he is compensated for services from public funds;

(d)   an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;

(e)   an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization; and

(f)   an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20.

(g)   an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

"Employee" does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider those factors provided pursuant to Section 9-1-440;

(5)   "Employer" means the State, a county board of education, a district board of trustees, a city board of education, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of the State by which a teacher or employee is paid; the term "employer" also includes a county, municipality, or other political subdivision of the State, or an agency or department thereof, which has been admitted to the system under the


Printed Page 3037 . . . . . Thursday, May 11, 2000

provisions of Section 9-1-470, a service organization referred to in paragraph (4) of this section, an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20, and a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services;

(6)   "Member" shall mean any teacher or employee included in the membership of the System as provided in Article 5 of this chapter and for the purpose of establishing additional service it shall mean in service;

(7)   "Board" shall mean the State Budget and Control Board which shall act under the provisions of this chapter through its division of personnel administration;

(8)   "Medical Board" shall mean the board of physicians provided for in SECTION 9-1-220;

(9)   "Service" shall mean service as a teacher or employee rendered to and paid for by an employer;

(10)   "Prior service" shall mean service rendered as a teacher or employee prior to the date of membership for which credit is allowable under Article 7 of this chapter;

(11)   "Membership service" shall mean service as a teacher or employee rendered while a member of the System;

(12)   "Creditable service" shall mean prior service plus membership service for which credit is allowable as provided in Article 7 of this chapter;

(13)   "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the System;

(14)   "Regular interest" shall mean interest compounded annually at such rate as shall be determined by the Board in accordance with SECTION 9-1-280;

(15)   "Accumulated contribution" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the employee annuity savings fund, together with regular interest thereon, as provided in Article 9 of this chapter;

(16)   "Earnable compensation" shall mean the full rate of the compensation that would be payable to a teacher or employee if he worked for his full normal working time; when compensation includes maintenance, fees and other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer;


Printed Page 3038 . . . . . Thursday, May 11, 2000

(17)   "Average final compensation" with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office;

(18)   "Employee annuity" shall mean annual payments for life derived from the accumulated contributions of a member;

(19)   "Employer annuity" shall mean annual payments for life derived from money provided by the employer;

(20)   "Retirement allowance" shall mean the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu thereof;

(21)   "Retirement" shall mean the withdrawal from active service with a retirement allowance granted under the System;

(22)   "Employee annuity reserve" shall mean the present value of all payments to be made on account of an employee annuity or benefit in lieu thereof, computed on the basis of such mortality tables as shall be adopted by the Board and regular interest;

(23)   "Employer annuity reserve" shall mean the present value of all payments to be made on account of an employer annuity or benefit in lieu thereof, computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest; and

(24)   "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality tables as shall be adopted by the Board and regular interest.

As used in this chapter, unless a different meaning is plainly required by the context:

(1)   'Accumulated contribution' means the sum of all the amounts deducted from the compensation of a member and credited to the members individual account in the employee annuity savings fund, together with regular interest on the account, as provided in Article 9 of this chapter.


Printed Page 3039 . . . . . Thursday, May 11, 2000

(2)   'Active member' means an employee who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.

(3)   'Actuarial equivalent' means a benefit of equal value when computed upon the basis of mortality tables adopted by the board and regular interest.

(4)   'Average final compensation' with respect to those members retiring on or after July 1, 1986, means the average annual earnable compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the system producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months before the expiration of the elected official's term of office.

(5)   'Beneficiary' means a person in receipt of a pension, an annuity, a retirement allowance or other benefit provided under the system.

(6)   'Board' means the State Budget and Control Board which shall act under the provisions of this chapter through its Division of Retirement Systems.

(7)   'Creditable service' means a member's earned service, prior service, and purchased service.

(8)   'Earnable compensation' means the full rate of the compensation that would be payable to a member if the member worked the member's full normal working time; when compensation includes maintenance, fees, and other things of value the board shall fix the value of that part of the compensation not paid in money directly by the employer.

(9)   'Earned service' means paid employment as a teacher or employee of an employer participating in the system where the teacher or employee makes regular retirement contributions to the system.

(10)   'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.

(11)   'Employee' means:

(a)   to the extent compensated by this State, an employee, agent, or officer of the State or any of its departments, bureaus, and


Printed Page 3040 . . . . . Thursday, May 11, 2000

institutions, other than the public schools, whether the employee is elected, appointed, or employed;

(b)   the president, a dean, professor, or teacher or any other person employed in any college, university, or educational institution of higher learning supported by and under the control of the State;

(c)   an employee, agent, or officer of a county, municipality, or school district, or an agency or department of any of these, which has been admitted to the system under the provisions of Section 9-1-470, to the extent the employee, agent, or officer is compensated for services from public funds;

(d)   an employee of the extension service and any other employee a part of whose salary or wage is paid by the federal government if the federal funds from which the salary or wage is paid before disbursement become state funds;

(e)   an employee of a service organization, the membership of which is composed solely of persons eligible to be teachers or employees as defined by this section, if the compensation received by the employees of the service organizations is provided from monies paid by the members as dues or otherwise or from funds derived from public sources and if the employee contributions prescribed by this title are paid from the funds of the service organization;

(f)   an employee of an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20;

(g)   an employee of a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

'Employee' does not include supreme and circuit court judges or any person employed by a school, college, or university at which the person is enrolled as a student or otherwise regularly attending classes for academic credit unless the person is employed as a school bus driver and is paid by the same school district in which the person is enrolled in school. In determining student status, the system may consider the guidelines of the Social Security Administration regarding student services and other criteria the system uniformly prescribes.

(12)   'Employee annuity' means annual payments for life derived from the accumulated contributions of a member.

(13)   'Employee annuity reserve' means the present value of all payments to be made on account of an employee annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.


Printed Page 3041 . . . . . Thursday, May 11, 2000

(14)   'Employer' means this State, a county board of education, a district board of trustees, the board of trustees or other managing board of a state-supported college or educational institution, or any other agency of this State by which a teacher or employee is paid; the term 'employer' also includes a county, municipality, or other political subdivision of the State, or an agency or department of any of these, which has been admitted to the system under the provisions of Section 9-1-470, a service organization referred to in item (11)(e) of this section, an alcohol and drug abuse planning agency authorized to receive funds pursuant to Section 61-12-20, and a local council on aging or other governmental agency providing aging services funded by the Office on Aging, Department of Health and Human Services.

(15)   'Employer annuity' means annual payments for life derived from money provided by the employer.

(16)'Employer annuity reserve' means the present value of all payments to be made on account of an employer annuity or benefit in lieu of the employee annuity, computed on the basis of mortality tables adopted by the board and regular interest.

(17)   'Medical board' means the board of physicians provided for in Section 9-1-220.

(18)   'Member' means a teacher or employee included in the membership of the system as provided in Article 5 of this chapter.

(19)   'Military service' means:

(a)   service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;

(b)   service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve, and

(c)   service as a member of the Army National Guard or Air National Guard of this or any other state.

(20)   'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.

(21)   'Prior service' means service rendered as a teacher or employee before July 1, 1945, for which credit is allowable under Article 7 of this chapter.

(22)   'Public school' means a school conducted within this State under the authority and supervision of a duly elected or appointed school district board of trustees.


Printed Page 3042 . . . . . Thursday, May 11, 2000

(23)   'Public Service' means service as an employee of the government of the United States, a state or political subdivision of the United States, or an agency or instrumentality of any of these. 'Public service' does not include 'educational service' or 'military service' as defined in this section.

(24)   'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.

(25)   'Regular interest' means interest compounded annually at a rate determined by the board in accordance with Section 9-1-280.

(26)   'Retirement' means the withdrawal from active service with a retirement allowance granted under the system.

(27)   'Retirement allowance' means the sum of the employer annuity and the employee annuity or any optional benefit payable in lieu of the annuity.

(28)   'Retirement system' or 'system' means the South Carolina Retirement System established under Section 9-1-20.

(29)   'State' or 'this State' means the State of South Carolina;

(30)   'Teacher' means a classroom teacher employed in the public schools supported by this State as determined by the board."

B.     Section 9-1-470 of the 1976 Code, as amended by Act 555 of 1988, is further amended to read:

"Section 9-1-470.   Any A county, municipality, or other political subdivision of the State, any an agency or department of them, including a school board, any a service organization as defined in Section 9-1-10(4) 9-1-10(11)(e), and any nonprofit corporation created under the provisions of Chapter 35 of Title 33, for the purpose of supplying water and sewer, may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements and the regulations of the board."

C.     Section 9-1-1140 of the 1976 Code, as last amended by Act 439 of 1988, is further amended to read:

"Section 9-1-1140.     Subject to the approval of the Board, any member who is on leave of absence on account of military service or for any other purpose which might tend to increase the efficiency of the services of the member to his employer may make monthly contributions to the System on the basis of the earnable compensation of such member at the time such leave of absence was granted. Any person on leave of absence in the armed forces of the United States who would otherwise have qualified for prior service credit is entitled to prior service credit if he returns to the service of teaching or any other employment covered by or coming within the meaning hereof


Printed Page 3043 . . . . . Thursday, May 11, 2000

within a period of two years after he has been honorably discharged. Employees under current employment by the State are eligible to establish credit for previous employment with the regional councils of government if the period is not covered by another retirement plan and payment is rendered in accordance with Section 9-1-440.

A period of time up to one year for each pregnancy not to exceed a total of three years service credit may be established for maternity leave provided the member pays the full actuarial cost as determined by the board. However, the payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.

Any member with two or more years of creditable service shall receive additional creditable service for the period of his military service at the rate of one year of military service for each one year of his creditable service excluding any period of creditable military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer the payments by the member, as described in the foregoing sentence, must be determined on the basis of his earnable compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. No member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the


Printed Page 3044 . . . . . Thursday, May 11, 2000

member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system provided in this title. Any former employee of the United States employed in this State by an employer covered by the system, and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment may not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event may any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service.

A member who leaves covered employment to attend undergraduate or graduate school and returns to covered employment within ninety days after the member's last date of enrollment may establish up to two years' retirement credit by paying the actuarial cost as determined by the board. However, the member contribution must not be less than twelve percent of current salary or the average of the three highest consecutive fiscal years, whichever is greater, for each year prorated for periods of less than a year.

Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.


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Previous service of a member as an employee of a redevelopment commission created by the governing body of a municipality in this State may be established as creditable service upon payment of an amount determined as provided pursuant to Section 9-1-440.

At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.

(A)   An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of public service for which the member also may receive a retirement benefit from another retirement plan.

(B)   An active member may establish service credit for any period of paid educational service by making a payment to the system determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of educational service for which the member also may receive a retirement benefit from another retirement plan.

(C)   An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(D)   An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.


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(E)   An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(F)   An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.

(G)   An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments. Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.

(H)   An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter. Any amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.

(I)   Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.

(J)   A member may purchase each type of service under this section once each fiscal year.

(K)   The board shall promulgate regulations and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter.

(L)   At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement."

D.   The first paragraph of Section 9-1-1540 of the 1976 Code is amended to read:

"Upon the application of a member in service or of his employer, any a member in service on or after July 1, 1970, who has had five or more years of creditable earned service or any a contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his duties regardless of length of membership on or


Printed Page 3047 . . . . . Thursday, May 11, 2000

after July 1, 1985, may be retired by the board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

E.     The first two paragraphs of Section 9-1-1650 of the 1976 Code are amended to read:

"Should If a member cease ceases to be a teacher or employee except by death or retirement, he shall the member must be paid within six months after his the member's demand therefor for payment, but not less than ninety days after ceasing to be a teacher or employee, the sum of his the member's contributions and the accumulated regular interest thereon on the contributions. If such the member has five or more years of creditable earned service and elects, prior to before the time his the member's membership would otherwise terminate, elects to leave his these contributions in the system, he shall the member, unless and until such these contributions are paid to him as provided by this section prior to before the attainment of age sixty, remain remains a member of the system and shall be is entitled to receive a deferred retirement allowance commencing beginning at age sixty computed as a service retirement allowance in accordance with Section 9-1-1550. Provided, that the The employee annuity shall must be the actuarial equivalent at age sixty of the member's contributions with such the interest credits thereon on the contributions, if any, as shall be allowed by the board. Should If a member die dies before retirement, the amount of his the member's accumulated contributions shall must be paid to his the member's estate or to such the person as he shall have the member nominated by written designation, duly acknowledged and filed with the board.

Upon the death of a retired member who has not elected either Option 1 or Option 4 under Section 9-1-1620, a lump sum amount must be paid to the person as he has last nominated by written designation, duly acknowledged and filed with the board; otherwise, it must be paid to his estate. The amount must be equal to the excess, if any, of his total accumulated contributions at the time his retirement allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 2, 3, and 5 of SECTION 9-1-1620, during their lifetimes.


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Upon the death of a member who did not select a survivor option or who selected a survivor option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member. Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary. The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary. This paragraph does not govern lump sum distributions payable on account of members retiring under former Option 1 of Section 9-1-1620 or on account of members retiring before July 1, 1990 under former Option 4 of Section 9-1-1620."

F.     The first paragraph of Section 9-1-1910 of the 1976 Code is amended to read:

"Any person who has retired or may retire under the provisions of the South Carolina Retirement Act while in service as such teacher or employee, and A member with five or more years of earned service, eligible for service retirement, who has twenty or more years of creditable service shall must be paid from the general fund of the State, a monthly sum in addition to the retirement allowance he may receive under the act, due the member under this chapter sufficient to provide him the member a minimum eighty dollars per a month, plus one dollar per a month for each completed year of creditable service in excess of twenty years. Provided, however, that should such If the teacher or employee elect elects to receive a reduced retirement allowance as provided in the act this chapter, he shall the teacher or employee must be paid under the provisions of this section only such the amount as would be paid under the section had he the teacher or employee not elected such the optional allowance."

G.   Section 9-11-10 of the 1976 Code, as last amended by Act 72 of 1999, is further amended to read:


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"Section 9-11-10.     The following words and phrases as used in this article, unless a different meaning is plainly required by the context, shall have the following meanings:

(1)   "System" shall mean the South Carolina Police Officers Retirement System.

(2)   "State" shall mean the State of South Carolina.

(3)   "Board" shall mean the State Budget and Control Board.

(4)   "Medical board" shall mean the board provided for in SECTION 9-11-30(2).

(5)   "Employer" shall mean (a) the State, (b) any political subdivision, agency or department of the State which employs police officers and which shall have been admitted to the System as provided in SECTION 9-11-40 and (c) any service organization, the membership of which is composed solely of persons eligible to be members as defined by this section, if the compensation received by the employees of such service organizations shall be provided from moneys paid by the members as dues, or otherwise, or from funds derived from public sources and if the contributions prescribed by this Title shall be paid from the funds of the service organization.

(6)   "Police officer" means a person who receives his salary from an employer and who is:

(a)   required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in the State;

(b)   an employee after January 1, 2000, of the South Carolina Department of Corrections or the Department of Juvenile Justice and by the terms of his employment is a peace officer as defined by Section 24-1-280.

Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.

(7)   "Member" shall mean any police officer included in the membership of the System, as provided in SECTION 9-11-40 and for the purpose of establishing additional service credit it shall mean in service.

(8)   "Service" shall mean service as a police officer rendered to any employer.

(9)   "Credited service" shall mean service for which credit is allowable as provided in SECTION 9-11-50.


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(10)   "Supplemental Allowance Program" shall mean the Supplemental Allowance Program established under the System as of July 1, 1966 and as in effect on June 30, 1974.

(11)   "Class Two service" shall mean credited service subsequent to June 30, 1974 as a Class Two member, as defined in subsection (7) of SECTION 9-11-40, and credited service prior to July 1, 1974, or date of membership, if later, with respect to which contributions shall have been made by a member, or on his behalf, under the Supplemental Allowance Program or pursuant to subsection (2), (3), (4) or (10) of SECTION 9-11-210.

(12)   "Class One service" shall mean credited service which is not Class Two service.

(13)   "Compensation" shall mean the total remuneration paid to a police officer for service rendered to an employer for his full normal working time; when compensation includes maintenance, fees and other things of value the Board shall fix the value of that part of the compensation not paid in money directly by the employer.

(14)   "Average final compensation after July 1, 1986" means the average annual compensation of a member during the twelve consecutive quarters of his creditable service on which regular contributions as a member were made to the System producing the highest such average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.

(15)   "Retirement allowance" shall mean monthly payments for life under the System payable as provided in SECTION 9-11-160.

(16)   "Beneficiary" shall mean any person in receipt of a retirement allowance or other benefit as provided by the System.

(17)   "Other fund" shall mean (a) the South Carolina Retirement System or (b) the Police Insurance and Annuity Fund of the State of South Carolina.

(18)   "Aggregate contributions" shall mean the sum of all the amounts deducted from the compensation of a member and credited to his individual account in the System, including any amounts transferred from another fund to the System as provided in SECTION 9-11-210(6).


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(19)   "Regular interest" shall mean interest compounded annually at such rate or rates as shall be determined for a particular purpose by the Board in accordance with SECTION 9-11-30.

(20)   "Accumulated contributions" shall mean a member's aggregate contributions, together with regular interest thereon, including regular interest on contributions paid to the System by an employer in lieu of contributions by the member under the Supplemental Allowance Program on account of credited service rendered prior to his date of participation in said Program.

(21)   "Aggregate additional contributions" shall mean the sum of all the contributions made by a member pursuant to SECTION 9-11-210 as in effect prior to July 1, 1974 and any amounts transferred from another fund which are treated as additional contributions pursuant to SECTION 9-11-210 as in effect prior to July 1, 1974 or SECTION 9-11-210(6) as amended as of said date.

(22)   "Accumulated additional contributions" shall mean a member's aggregate additional contributions, together with regular interest thereon.

(23)   "Actuarial equivalent" shall mean a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the Board, as provided in SECTION 9-11-30.

(24)   "Date of establishment" shall mean July 1, 1962.

As used in this chapter, unless a different meaning is plainly required by the context:

(1)   'Accumulated additional contributions' means a member's aggregate additional contributions, together with regular interest on the contributions.

(2)   'Accumulated contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the employee annuity savings fund, together with regular interest on the account, as provided in this chapter.

(3)   'Active member' means a member who is compensated by an employer participating in the system and who is making regular retirement contributions to the system.

(4)   'Actuarial equivalent' means a benefit of equal value when computed on the basis of the tables and regular interest rate last adopted by the board, as provided in Section 9-11-30.

(5)   'Aggregate additional contributions' means the sum of all the contributions made by a member pursuant to Section 9-11-210 in effect before July 1, 1974, and any amounts transferred from another fund


Printed Page 3052 . . . . . Thursday, May 11, 2000

which are treated as additional contributions pursuant to Section 9-11-210 in effect before July 1, 1974, or Section 9-11-210(6) as amended as of that date.

(6)   'Aggregate contributions' means the sum of all the amounts deducted from the compensation of a member and credited to the member's individual account in the system, including any amounts transferred from another fund to the system as provided in Section 9-11-210(6).

(7)   'Average final compensation after July 1, 1986' means the average annual compensation of a member during the twelve consecutive quarters of the member's creditable service on which regular contributions as a member were made to the system producing the highest average; a quarter means a period January through March, April through June, July through September, or October through December. An amount up to and including forty-five days' termination pay for unused annual leave at retirement may be added to the average final compensation. Average final compensation for an elected official may be calculated as the average annual earnable compensation for the thirty-six consecutive months prior to the expiration of his term of office.

(8)   'Beneficiary' means a person in receipt of a retirement allowance or other benefit provided by the system.

(9)   'Board' means the State Budget and Control Board acting through its Division of Retirement Systems.

(10)   'Class one service' means credited service which is not class two service.

(11)   'Class two service' means credited service after June 30, 1974, as a class two member, as defined in subsection (7) of Section 9-11-40, and credited service before July 1, 1974, or date of membership, if later, with respect to which contributions have been made by a member, or on the member's behalf, under the supplemental allowance program or pursuant to subsection (2), (3), or (10) of Section 9-11-210.

(12)   'Compensation' means the total remuneration paid to a police officer for service rendered to an employer for his full normal working time; when compensation includes maintenance, fees and other things of value, the board shall fix the value of that part of the compensation not paid in money directly by the employer.

(13)   'Credited service' means a member's earned service and purchased service.

(14)   'Date of establishment' means July 1, 1962.


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(15)   'Earned service' means the paid employment of a member of the system with an employer participating in the system where the member makes regular retirement contributions to the system.

(16)   'Educational service' means paid service as a classroom teacher in a public, private, or sectarian school providing elementary or secondary education, kindergarten through grade twelve.

(17)   'Employer' means:

(a)   the State;

(b)   a political subdivision, agency, or department of the State which employs police officers and which has been admitted to the system as provided in Section 9-11-40; and

(c)   a service organization, the membership of which is composed solely of persons eligible to be members as defined by this section, if the compensation received by the employees of the service organization is provided from monies paid by the members as dues, or otherwise, or from funds derived from public sources and if the contributions prescribed by this chapter are to be paid from the funds of the service organization.

(18)   'Medical board' means the board provided for in Section 9-11-30(2).

(19)   'Member' means a person included in the membership of the system, as provided in this chapter.

(20)   'Military service' means:

(a)   service in the United States Army, United States Navy, United States Marine Corps, United States Air Force, or United States Coast Guard;

(b)   service in the select reserve of the Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve, or the Coast Guard Reserve; and

(c)   service as a member of the Army National Guard or Air National Guard of this or any other state.

(21)   'Nonqualified service' means purchased service other than public service, educational service, military service, leave of absence, and reestablishment of withdrawals.

(22)   'Other fund' means:

(a)   the South Carolina Retirement System; or

(b)   the Police Insurance and Annuity Fund of the State of South Carolina.

(23)   'Police officer' means a person who receives his salary from an employer and who is:


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(a)   required by the terms of his employment, either by election or appointment, to give his time to the preservation of public order, the protection of life and property, and the detection of crimes in this State; or

(b)   an employee after January 1, 2000, of the South Carolina Department of Corrections or the South Carolina Department of Juvenile Justice who, by the terms of his employment, is a peace officer as defined by Section 24-1-280.

Notwithstanding prior duties performed by a person who is a police officer as defined in this item, the provisions of Section 9-11-40(9) apply to a person who is or who becomes a member of the Police Officers Retirement System.

(24)   'Public Service' means service as an employee of the government of the United States, any state or political subdivision of the United States, or any agency or instrumentality of any of these. The term 'public service' does not include 'educational service' or 'military service' as defined in this section.

(25)   'Purchased service' means service credit purchased by an active member while an employee of an employer participating in the system.

(26)   'Regular interest' means interest compounded annually at the rate or rates determined for a particular purpose by the board in accordance with Section 9-11-30.

(27)   'Retirement allowance' means monthly payments for life under the system payable as provided in Section 9-11-160.

(28)   'State' means the State of South Carolina.

(29)   'Supplemental allowance program' means the supplemental allowance program established under the system as of July 1, 1966, and as in effect on June 30, 1974.

(30)   'System' means the South Carolina Police Officers Retirement System."

H.   Items (a) and (d) of Section 9-11-40(1) of the 1976 Code are amended to read:

"(a)   Any A county, municipality, or other political subdivision of the State, and any an agency or department thereof of a political subdivision or any a service organization referred to in item (5) of Section 9-11-10 9-11-10(17)(c) may, in its discretion, may become an employer by applying to the board for admission to the system and by complying with the requirements hereof of this section and the rules and regulations of the board. Such The application shall must set forth the requested date of admission, which shall must be the January first, or the April first, or the July first, or the October first next following


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receipt by the board of such the application, except that in the case of any applications so received prior to before January 1, 1963, the requested date of admission may be July 1, 1962.

(d)   Any An employer whose requested date of admission is on or after July 1, 1974, shall agree to make contributions on account of all service prior to before the date of admission rendered by members in its employ who make contributions with respect to such service as provided in Section 9-11-210(4)."

I.     Section 9-11-40(4) of the 1976 Code is amended to read:

"(4)   All persons who become employed as police officers by the State or other employer after the employer's date of admission to the system under the provisions of this section shall must become members, as a condition of their employment.

Notwithstanding the foregoing provisions of this subsection, no person shall become a member on or after July 1, 1963 unless his employer certifies to the system that his service as a police officer will require requires at least one thousand six hundred hours per a year of active duty and that his the person's salary for such the service will be is at least two thousand dollars per a year. If in any year subsequent to such after this certification the member does not render at least one thousand six hundred hours of active duty as a police officer, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 shall apply."

J.     The fifth paragraph of Section 9-11-40(10) of the 1976 Code is amended to read:

"Notwithstanding the foregoing provisions of this subsection, no fireman shall become a member on or after July 1, 1976, unless his the member's employer certifies to the system that his service as a fireman will require requires at least one thousand, six hundred hours per a year of active duty and that his the member's salary for such the service will be is at least two thousand dollars per a year. If in any year subsequent to such after this certification the member does not render at least one thousand, six hundred hours of active duty as a fireman, or if he the member does not receive at least two thousand dollars in salary, his membership shall cease ceases and the provisions of Sections 9-11-50(2) and Section 9-11-100 of the 1976 Code shall apply."

K.   Section 9-11-50 of the 1976 Code, as last amended by Act 439 of 1998, is further amended to read:

"Section 9-11-50.   (1)   The credited service of a member shall include all service as a police officer rendered to an employer since he


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last became a member and in respect of which he made contributions to the System. It shall also include, in the case of a member (a) who became such on or before June 30, 1963, or who became such as of July 1, 1962 pursuant to subsection (1) (b) or (1) (c) of SECTION 9-11-40, and (b) who remained a member continuously thereafter until his death or his retirement under the System and (c) who was, immediately prior to his becoming a member, a participant in another fund, service which was credited to him under such other fund; provided that within two months of the date of his membership he shall have caused the amount of his full contributions made under such other fund in respect of such service to be transferred to the System. In addition, in the case of any other member who becomes a member when first eligible and continues as a member until his death or his retirement, credited service shall also include all service prior to his date of membership for which contributions are made as provided in SECTION 9-11-210(4) or SECTION 9-11-210(10) and SECTION 9-11-220(2).

(2)   When membership ceases for any reason other than death or retirement, the service credited to the member shall be cancelled and, should the police officer again become a member, he shall enter the System as a police officer not entitled to credit for previous service, unless he repays his accumulated contributions previously withdrawn as provided in subsection (3) of this section.

(3)   Any person employed as a police officer whose membership in the System was contingent on his own election and who elected not to become a member of the System may apply for and be admitted to membership. Anything herein contained to the contrary notwithstanding, the credited service of any such person shall include service rendered to an employer since he was first eligible to become a member; provided that he shall pay to the System, by a single payment prior to his retirement or death, the contributions specified in SECTION 9-11-210(4) with respect to the period of service since he first became eligible for membership. Any such member who makes such payment to establish credit for such service may also receive credit for service prior to his employer's date of participation in the System by making contributions pursuant to SECTION 9-11-210(4) on account of such service. Any former member who withdrew his contributions and has again become a member of the System may have the service credited to him under the System at the time he withdrew his contributions restored to him, provided he pays to the System, by a single payment prior to his retirement or death, the amount of the


Printed Page 3057 . . . . . Thursday, May 11, 2000

contributions previously withdrawn, together with the interest which would have been credited thereon had such contributions remained in the System to the date of his payment of such amount to the System.

(4)   Any member with two or more years of credited service shall receive additional credited service for the period of his military service at the rate of one year of military service for each one year of his credited service excluding any period of credited military service, as long as he was discharged or separated from the military service under conditions other than dishonorable, and as long as he pays to the system, by a single payment before his retirement or death or by another method of payment as may be prescribed from time to time by the board, all payments to the system he would have been required to make for the period to be so credited had he been employed in the position he held immediately before the commencement of his military leave during the period of the military service, together with the regular interest which would have been credited thereon from the date the contributions would have been made to the date of payment. In the case of a member whose military service was rendered before his employment by an employer, the payments by the member, as described in the foregoing sentence, must be determined on the basis of his compensation at the time he first became a member of the system. The required employer contribution must be assumed by the member's current employer. However, no member may receive credit for more than six years of military service. Active military duty performed subsequent to December 31, 1975, may not be considered creditable service. Active military duty includes service in the national guard; provided, however, that to establish creditable service for national guard service, the member must pay the actuarial cost as determined by the board, but the payment may not be less than twelve percent of the member's earnable compensation at the time of payment, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. The prohibition on duplication of benefits applicable to credit established for federal employment as provided in subsection (6) of this section also applies to credit established for service in the national guard and national guard service may not be established for periods of service credited or creditable in any retirement system under this title.

(5)   A period of time up to one year for each pregnancy not to exceed a total of three years of service credit may be established for maternity leave if the member pays the full actuarial cost as determined


Printed Page 3058 . . . . . Thursday, May 11, 2000

by the board. The payment must not be less than twelve percent of the annual salary at the time of purchase or the average of the three highest consecutive fiscal years of salary at the time of purchase, whichever is greater, for a year of credit prorated for periods less than a year. To be eligible for maternity leave credit an employee must not be absent from work for a period greater than two years for each pregnancy.

(6)   (a)   A former employee of the United States employed in this State by an employer covered by the system and who is currently a contributing member, may elect to receive prior service credit for service rendered as an employee of the United States upon his paying into the system the actuarial cost as determined by the board. The member payment must not be less than twelve percent of the earnable compensation, or the average of the three highest consecutive fiscal years of compensation at the time of payment, whichever is greater, for each year of service prorated for periods of less than one year. A member who elects to receive creditable service for federal employment may establish a portion of the service on a one-time basis. This service may not exceed the total creditable service, exclusive of federal service, which he would have if he remained in service until completion of the eligibility requirements for an unreduced service retirement allowance. In no event shall any benefits payable under the system duplicate benefits being paid under any retirement system for the same period of service.

(b)   Merchant marine seamen who served in active ocean-going service from December 7, 1941, to August 15, 1947, and civil service crew members aboard United States Army Transport Service and Naval Transportation Service vessels in ocean-going service in foreign waters during the same period may establish their period of service as creditable service in the manner that military service is established as creditable service pursuant to this section.

(7)   At retirement, after March 31, 1991, a member shall receive service credit for not more than ninety days of his unused sick leave at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.

(A)   An active member may establish service credit for any period of paid public service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of


Printed Page 3059 . . . . . Thursday, May 11, 2000

public service for which the member also may receive a retirement benefit from another retirement plan.

(B)   An active member may establish service credit for any period of paid educational service by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated. A member may not establish credit for a period of educational service for which the member also may receive a retirement benefit from another retirement plan.

(C)   An active member may establish up to six years of service credit for any period of military service, if the member was discharged or separated from military service under conditions other than dishonorable, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(D)   An active member on an approved leave of absence from an employer that participates in the system may purchase service credit for the period of the approved leave, but may not purchase more than two years of service credit for each separate leave period, by making a payment to the system to be determined by the board, but not less than sixteen percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(E)   An active member who has five or more years of earned service credit may establish up to five years of nonqualified service by making a payment to the system to be determined by the board, but not less than thirty-five percent of the member's current salary or career highest fiscal year salary, whichever is greater, for each year of credit purchased. Periods of less than a year must be prorated.

(F)   An active member who previously withdrew contributions from the system may reestablish the service credited to the member at the time of the withdrawal of contributions by repaying the amount of the contributions previously withdrawn, plus regular interest from the date of the withdrawal to the date of repayment to the system.

(G)   An active member establishing retirement credit pursuant to this chapter may establish that credit by means of payroll deducted installment payments. Interest must be paid on the unpaid balance of the amount due at the rate of the prime rate plus two percent a year.


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(H)   An employer, at its discretion, may pay to the system all or a portion of the cost for an employee's purchase of service credit under this chapter. Amounts paid by the employer under this subsection for all purposes must be treated as employer contributions.

(I)   Service credit purchased under this section, other than earned service previously withdrawn and reestablished, is not 'earned service' and does not count toward the required five or more years of earned service necessary for benefit eligibility.

(J)   A member may purchase each type of service under this section once each fiscal year.

(K)   At retirement, after March 31, 1991, a member shall receive credit for not more than ninety days of his unused sick leave from the member's last employer at no cost to the member. The leave must be credited at a rate where twenty days of unused sick leave equals one month of service. This additional service credit may not be used to qualify for retirement.

(L)   The board shall promulgate regulations, and prescribe rules and policies, as necessary, to implement the service purchase provisions of this chapter."

L.     Subsections (1) and (3) of Section 9-11-60 of the 1976 Code, as last amended by Act 424 of 1988, are further amended to read:

"(1)   A member may retire upon written application to the board system setting forth at what time, not no more than ninety days before nor more than six months subsequent to after the execution and filing of the application, he the member desires to be retired, if the member at the time specified for his the member's service retirement has:

(a)   five or more years of earned service;

(b)   attained the age of fifty-five years; and completed five or more years of credited service and has

(c)   separated from service and, if the time specified is subsequent to the date of application, notwithstanding that, during the period of notification, he may have separated from service.

(3)   Reserved. Any member who has completed five or more years of credited service but has not attained age fifty-five, upon written application to the governing or administering board of his retirement system, may retire on an early retirement allowance commencing upon his attainment of age fifty-five, as follows:

(a)   If the member is less than fifty-five years of age and has at least twenty-five years of creditable service, he may elect to receive up to five years of additional service credit as though the additional service credit were rendered by him as an employee or member upon his


Printed Page 3061 . . . . . Thursday, May 11, 2000

paying into his retirement system the actuarial cost as determined by regulation promulgated by the governing or administering board of his retirement system, provided the actuarial cost is determined on the basis of current salary or the highest fiscal year salary in the work career, whichever is greater.

(b)   The member also shall pay the employer and employee cost for health and dental insurance for a time period equal to the period of service credit purchased, and any service credit purchased must qualify the member for retirement and the member must retire within ninety days subsequent to the purchase."

M.   Section 9-11-70(1) of the 1976 Code is amended to read:

"(1)   Any A member in service who has completed five or more years of credited earned service but has not attained age fifty-five may, upon written application to the board, retire on an early retirement allowance commencing upon his attainment of beginning when the member attains age fifty-five."

N.   The first paragraph of Section 9-11-80(1) of the 1976 Code is amended to read:

"Upon On the application of a member in service or of his the member's employer, any a member who has five or more completed years of credited earned service or any contributing member who is disabled as a result of an injury arising out of and in the course of the performance of his the member's duties regardless of length of membership may be retired by the retirement board not less than thirty days and not more than nine months next following the date of filing the application on a disability retirement allowance if the medical board, after a medical examination of the member, certifies that the member is mentally or physically incapacitated for the further performance of duty, that the incapacity is likely to be permanent, and that the member should be retired."

O.   Section 9-11-130(1) of the 1976 Code is amended to read:

"(1)   The person nominated by a member, pursuant to Section 9-11-110, to receive a lump sum amount in the event of his death if the member dies before retirement may, if the member: (a) has five or more years of earned service; (b) dies in service; and (c) has either attained age fifty-five or has accumulated dies after the attainment of age fifty-five or after the accumulation of fifteen years of creditable service and death occurs in service, elect to receive in lieu of the lump sum amount otherwise payable under item (a) of subsection (1) of Section 9-11-110(1)(a) an allowance for life in the same amount as if the deceased member had retired at the time of his death and had named


Printed Page 3062 . . . . . Thursday, May 11, 2000

the person as beneficiary under an election of Option 1 B under Section 9-11-150(A). For purposes of the benefit calculation, a member under age fifty with less than thirty twenty-five years' credit is assumed to be fifty years of age."

P.     Section 9-11-210(4) of the 1976 Code, as amended by Act 420 of 1994, is further amended to read:

"(4)   A member who has rendered service before his date of membership which is not otherwise credited under the system may elect by written notice filed with the board at any time before retirement to establish credit for the service as Class One service in the case of a Class One member or as Class Two service in the case of a Class Two member. A member who makes this election shall make a special contribution to the system before retirement, determined as follows:

(a)   In the case of a Class One member, the amount which would have resulted if the member had contributed twenty-one dollars during each month of the service for which credit is to be established and such contributions were accumulated at regular interest to the date of payment; or

(b)   In the case of a Class Two member, six and one-half percent of the member's monthly rate of compensation at the time the contribution is made multiplied by the number of months of service for which credit is to be established. Reserved."

Q.   Section 9-11-220(2)(a) of the 1976 Code is amended to read:

"(a)   Reserved. If the special contribution is made pursuant to Section 9-11-210(2), the employer contribution shall be equal to such special contribution."

R.   Sections 9-1-80, 9-1-440, 9-1-500, 9-1-850, 9-1-860, 9-1-1040, 9-1-1150, 9-1-1530, 9-1-1535, 9-1-1700, 9-1-1710, 9-1-1720, 9-1-1730, 9-1-1860, 9-11-55, 9-11-325, and 9-11-330, all of the 1976 Code, are repealed.

S.     Section 9-1-1620 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

"Section 9-1-1620.   Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:


Printed Page 3063 . . . . . Thursday, May 11, 2000

Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that if he dies within ten years from his retirement date, an amount equal to his accumulated contributions at retirement, less one-one hundred twentieth of the amount for each month for which he has received a retirement allowance payment, must be paid to his legal representatives or to the person he nominates by written designation duly acknowledged and filed with the board;

Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 3. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 4. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit. Cost-of-living and other special increases in benefits are not applied to the amount advanced under this option;

Option 5. A member may elect either Option 2 or 3 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;

Option 6. A member may elect Option 2 or 3 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as each beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.

A member having elected Option 2, 3, or 5 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the


Printed Page 3064 . . . . . Thursday, May 11, 2000

system: (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.

A member who retired under the provisions of Option 4 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

The board may approve a five-year pay-out plan developed by the actuary on the basis of the total retirement allowance for surviving beneficiaries, other than a spouse.

(A)   No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:

Option A.   The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.

Option B.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in


Printed Page 3065 . . . . . Thursday, May 11, 2000

equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

Option C.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

(B)(1)   A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under law. The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected.

(2)   Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice. A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.

(C)   Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement. The provisions of subsection (B) apply to these members but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).


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(D)   A member who retired under the provisions of the previously existing Social Security Advance Option before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

T.     Section 9-11-150 of the 1976 Code, as last amended by Act 458 of 1996, is further amended to read:

"Section 9-11-150.   Until the first payment on account of a retirement allowance becomes normally due, any member or beneficiary may elect, by filing with the system, to convert the retirement allowance otherwise payable on his account after retirement into a retirement allowance of equivalent value under one of the optional forms named below, the retirement allowance under the option selected being due and payable on the date of retirement:

Option 1. A reduced retirement allowance payable during the retired member's life, with the provision that the reduced allowance continues after his death to and for the life of the beneficiary, or to the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 2. A reduced retirement allowance payable during the retired member's life, with the provision that it continues after his death at one-half the rate paid to him to and for the life of the beneficiary, or the trustee of the beneficiary, nominated by him by written designation duly acknowledged and filed with the board at the time of retirement, if the person survives him;

Option 3. Effective July 1, 1990, a retirement allowance of the amount that, with his benefit under Title II of the Federal Social Security Act, he will receive, so far as possible, approximately the same amount a year before and after the earliest age at which he becomes eligible, upon application therefor, to receive a Social Security benefit. Cost-of-living and other special increases in benefits are not applied to the amount advanced under this Option;


Printed Page 3067 . . . . . Thursday, May 11, 2000

Option 4. A member may elect either Option 1 or 2 with the added provision that, if the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death must be equal to the retirement allowance which would have been payable had the member not elected the option;

Option 5. A member may elect Option 1 or 2 with the added provision that the reduced retirement allowance after his death must be payable in equal shares to and for the life of each of two or more beneficiaries, or to the trustee or trustees of the beneficiaries, for so long as the beneficiary survives him. The benefit reduction factor must be based on the average age of the beneficiaries.

A member having elected Option 1, 2, or 4 and nominated his or her spouse to receive a retirement allowance upon the member's death may revoke the prior nomination and elect a new option only after the death of his or her spouse, a divorce, or other change in the member's marital status. This change may be accomplished only by filing with the system: (a) the form prescribed by the system, appropriately completed, signed by the member and notarized, that simultaneously both revokes the prior nomination and elects a new option and contains such other information as the system requires, or (b) a writing signed by the member and notarized that makes the same revocation and election and contains the identical information required by the prescribed form. The revocation and election of a new option is effective on the first day of the month in which the new option is elected. The retirement allowance payable following the election of a new option allowed by this paragraph must be computed upon the actuarial equivalent of the retirement allowance in effect immediately before the effective date of the new option. The revocation of the prior nomination and the election of a new option after the death of the member's spouse must be made before the first anniversary of the death of the spouse.

A member who retired after the provisions of Option 3 before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his


Printed Page 3068 . . . . . Thursday, May 11, 2000

benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

(A)   No later than the date the first payment of a retirement allowance is due, a member shall elect a form of monthly payment from the following options:

Option A.   The maximum retirement allowance payable under law for the life of the member. Upon the member's death, the member's designated beneficiary is entitled to receive any remaining member contributions.

Option B.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death for the life of the member's designated beneficiary or, if the member selects multiple beneficiaries, which continues after the member's death in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

Option C.   A reduced retirement allowance payable during the retired member's life, which continues after the member's death at one-half the rate paid to the member for the life of the member's designated beneficiary or, if the member s elects multiple beneficiaries, which continues after the member's death at one-half the rate paid to the member in equal shares to and for the life of each of two or more beneficiaries. The reduced retirement allowance payable under this option must be the actuarial equivalent of the maximum retirement allowance payable to the member under law, and if the member selects multiple beneficiaries, the benefit reduction factor must be based on the average age of the designated beneficiaries. If all of the designated beneficiaries predecease the member, then the member shall receive a retirement allowance equal to the maximum retirement allowance payable under law to the member.

(B)(1)   A retired member, within one year after a change in marital status, may revoke the form of monthly payment elected and elect a new form of monthly payment, which must be the actuarial equivalent of the maximum retirement allowance payable to the member under


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law. The new form of monthly payment is effective on the first day of the month in which the new form of monthly payment is elected.

(2)   Notwithstanding any other provision of law, a retired member's form of monthly payment may not be changed more than twice. A reversion to the maximum retirement allowance payable under law upon the death of the beneficiary or beneficiaries as provided in Options B and C of subsection (A) constitutes a change in the form of monthly payment for the purposes of this item.

(C)   Members retiring before January 1, 2001, shall continue to receive a retirement allowance in accordance with the form of payment selected under the law in effect at the time of their retirement. the provisions of subsection (B) apply to these members, but changes in forms of payment occurring before January 1, 2001, are not included in the limitation provided in subsection (B)(2).

(D)   A member who retired under the provisions of the previously existing Social Security Advance Option before July 1, 1990, may elect to have his benefit adjusted so that cost-of-living and other special increases in benefits are not applied to the amount of advance or reduction in allowance under this option after July 1, 1992, or the member's attainment of age sixty-two, if later, by making a special lump sum payment before that date. This lump sum payment must be equal to the excess, if any, of cost-of-living and other special increases in benefits actually paid to the member, over the increases that would have been paid had the member not elected an optional form of allowance. If a member does not elect to make the payment, his benefit must be automatically adjusted when no such excess exists, but not before July 1, 1992.

U.     Section 9-11-110(2) of the 1976 Code is amended to read:

"(2)   Upon the death of a retired member a lump sum amount must be paid to the person he has last nominated by written designation, duly acknowledged and filed with the Board, otherwise to his estate. The lump sum amount must be equal to the excess, if any, of his total accumulated contributions at the time his allowance commenced over the sum of the retirement allowance payments made to him, and to his designated beneficiary under Options 1, 2, and 4 of SECTION 9-11-150, during their lifetimes. Upon the death of a member who did not select a survivor option or who selected a survivor option and the member's designated beneficiary predeceased the member, a lump sum amount must be paid to the member's designated beneficiary or the member's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances


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paid to the member. Upon the death of a designated beneficiary selected under a survivor option, a lump sum amount must be paid to the beneficiary's estate if total member contributions and accrued interest at the member's retirement exceed the sum of the retirement allowances paid to the member and the member's beneficiary. The lump sum payment must be the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member or in the case of a survivor option, the total member contributions and accrued interest at retirement less the sum of the retirement allowances paid to the member and the member's designated beneficiary."

V.   1.     Section 9-1-1660 of the 1976 Code is amended to read:

"Section 9-1-1660.   (1)(A)     The person nominated by a member to receive the full amount of his the member's accumulated contributions in the event of his death if the member dies before retirement may, if such the member:

(1)   has five or more years of earned service;

(2)   dies while in service; and

(3)   has either attained the age after the attainment of age sixty-five sixty years or after the accumulation of has accumulated fifteen years or more of creditable service and death occurs in service, elect to receive in lieu of the accumulated contributions an allowance for life in the same amount as if the deceased member had retired at the time of his the member's death and had named the person as beneficiary under an election of Option 2 B of Section 9-1-1620(A). For purposes of the benefit calculation, a member under age sixty with less than thirty twenty-eight years' credit is assumed to be sixty years of age.

(2)(B)   Any A person otherwise eligible under subsection (1) (A) of this section to elect to receive an allowance who has attained age sixty-five or after the accumulation of thirty years of creditable service or after the attainment of age sixty with twenty or more years of creditable service but who has received a refund of the member's accumulated contributions under Section 9-1-1650 may, upon repayment of the refund to the system in a single sum, may make the election provided for in subsection (1) (A). The monthly payments under Option 2 B to the person date from the time of the repayment of the accumulated contributions to the system."

2.     The amendment to Section 9-1-1660 of the 1976 Code, contained in subitem 1. of this item is considered the last and


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controlling amendment to this section in the 2000 session of the General Assembly.

W.     1.     Section 1-11-730 of the 1976 Code, as last amended by Act 230 of 1996, is further amended by adding an appropriately lettered subsection at the end to read:

"( )   A person covered by the state health and dental plans who terminated employment with at least eighteen years retirement service credit by a state-covered entity before eligibility for retirement under a state retirement system prior to 1990 is eligible for the plans effective on the date of retirement, if this person returns to a state-covered entity and is covered by the state health and dental plans and completes at least two consecutive years in a full-time, permanent position prior to the date of retirement."

2.     Notwithstanding the general effective date of this section, this subsection takes effect July 1, 2000.

X.     This SECTION takes effect January 1, 2001.         /

Renumber sections to conform.

Amend sections, totals and title to conform.

The question was the adoption of Section 67 pursuant to Rule 24B.

Section 67 was adopted.

PART II, SECTION 68

The question was the adoption of Section 68 pursuant to Rule 24B.

Section 68 was adopted.

PART II, SECTION 69
Amendment No. 44

Senators COURSON and GIESE proposed the following Amendment No. 44 (4775R014.JEC), which was tabled:

Amend the bill, as and if amended, Part II, by striking SECTION 69 in its entirety and inserting the following:

  / SECTION     69

TO AMEND TITLE 11 OF THE 1976 CODE, RELATING TO PUBLIC FINANCE, BY ADDING SECTION 11-11-170 SO AS TO CREATE IN THE STATE TREASURY THE HEALTHCARE TOBACCO SETTLEMENT FUND, A FUND SEPARATE FROM ALL OTHER FUNDS AND TO SPECIFY THAT ALL REVENUE


Printed Page 3072 . . . . . Thursday, May 11, 2000

RECEIVED BY THE STATE FROM THE MASTER SETTLEMENT AGREEMENT MUST BE USED FOR HEALTH CARE AND RELATED PROGRAMS.

A.   Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-170.   (A)   All revenues payable to this State pursuant to the Master Settlement Agreement as described in Section 11-47-20(e) must be used in the manner specified in this section.

(B)   One hundred percent of the revenues must be used for healthcare programs. These revenues must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Healthcare Tobacco Settlement Trust Fund. Earnings on this fund must be credited to the fund. The principal must remain in the fund and only the interest earnings may be appropriated and used for the following purposes:

(a)   the South Carolina Seniors' Prescription Drug Program, as provided in Chapter 130 of Title 44;

(b)   home and community-based programs for seniors coordinated by the Department of Health and Human Services;

(c)   youth smoking cessation and prevention programs coordinated by the Department of Health and Environmental Control and the Department of Alcohol and Other Drug Abuse Services;

(d)   newborn infants hearing screening initiatives coordinated by the Department of Health and Environmental Control;

(e)   other health related issues as determined by the General Assembly."   /

Renumber sections to conform.

Amend title to conform.

Senator COURSON explained the amendment.

Senator LAND argued contra to the adoption of the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 45

Senators COURSON and GIESE proposed the following Amendment No. 45 (4775R016.JEC), which was not adopted:

Amend the bill, as and if amended, Part II, SECTION 69, by striking the SECTION in its entirety and inserting the following:


Printed Page 3073 . . . . . Thursday, May 11, 2000

  / SECTION   69

TO AMEND TITLE 11 OF THE 1976 CODE, RELATING TO PUBLIC FINANCE, BY ADDING SECTION 11-11-170 SO AS TO CREATE IN THE STATE TREASURY THE HEALTHCARE TOBACCO SETTLEMENT FUND AND THE TOBACCO COMMUNITY TRUST FUND, AS FUNDS SEPARATE FROM ALL OTHER FUNDS AND TO SPECIFY THAT NINETY PERCENT OF THE REVENUE RECEIVED BY THE STATE FROM THE MASTER SETTLEMENT AGREEMENT MUST BE USED FOR HEALTH CARE AND RELATED PROGRAMS AND TEN PERCENT OF THE REVENUE MUST BE USED TO ASSIST TOBACCO GROWERS, QUOTA HOLDERS AND WAREHOUSEMEN.

A.   Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-170.   (A)   All revenues payable to this State pursuant to the Master Settlement Agreement as described in Section 11-47-20(e) must be used in the manner specified in this section.

(B)(1)   Ninety percent of the revenues must be used for healthcare programs. These revenues must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Healthcare Tobacco Settlement Trust Fund. Earnings on this fund must be credited to the fund. The principal must remain in the fund and only the interest earnings may be appropriated and used for the following purposes:

(a)   the South Carolina Seniors' Prescription Drug Program, as provided in Chapter 130 of Title 44;

(b)   home and community-based programs for seniors coordinated by the Department of Health and Human Services;

(c)   youth smoking cessation and prevention programs coordinated by the Department of Health and Environmental Control and the Department of Alcohol and Other Drug Abuse Services;

(d)   newborn infants hearing screening initiatives coordinated by the Department of Health and Environmental Control;

(e)   other health related issues as determined by the General Assembly.

(2)   Ten percent of the revenues must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Community Trust Fund. Earnings on the fund must be credited to the fund. This fund must be used to reimburse:


Printed Page 3074 . . . . . Thursday, May 11, 2000

(a)   tobacco growers, tobacco quota holders, and tobacco warehousemen for actual losses due to reduced quotas since 1998. For purposes of this subitem, 'tobacco quota owner' and 'tobacco grower' have the meaning provided in Section 46-30-210, and the reimbursement is for losses incurred in reduced cultivation of tobacco in this State. Reimbursements must be made pursuant to eligibility requirements established by the South Carolina Tobacco Community Development Board created pursuant to Section 46-30-230;

(b)   after the reimbursement provided pursuant to subitem (a), the balance must be held in an escrow account through June 30, 2012, and used as provided in subitem (a). After June 30, 2012, any account balance must be transferred to the Healthcare Tobacco Settlement Trust Fund."   /

Renumber sections to conform.

Amend title to conform.

Senator COURSON explained the amendment.

Senator LAND spoke on the amendment.

Senator LAND moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 20; Nays 20

AYES

Bryan                     Drummond                  Elliott
Ford                      Glover                    Holland
Hutto                     Land                      Leatherman
Leventis                  Matthews                  McConnell
Moore                     Passailaigue              Patterson
Rankin                    Reese                     Saleeby
Setzler                   Washington

Total--20

NAYS

Alexander                 Anderson                  Bauer
Branton                   Courson                   Giese
Gregory                   Grooms                    Hayes
Jackson                   Martin                    Mescher
Peeler                    Ravenel                   Richardson

Printed Page 3075 . . . . . Thursday, May 11, 2000

Russell                   Ryberg                    Smith, J. Verne
Thomas                    Wilson

Total--20

Objection

Senator JACKSON asked unanimous consent to make a motion that he be granted leave to change his vote from "nay" to "aye."

Senator BAUER objected.

The PRESIDENT voted "no."

The motion to lay the amendment on the table failed. The question then was the adoption of the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 19; Nays 23

AYES

Alexander                 Bauer                     Branton
Courson                   Giese                     Gregory
Grooms                    Hayes                     Martin
Mescher                   O'Dell *                  Peeler
Ravenel                   Richardson                Russell
Ryberg                    Smith, J. Verne           Thomas
Wilson

Total--19

NAYS

Anderson                  Bryan                     Drummond
Elliott                   Ford                      Glover
Holland                   Hutto                     Jackson
Land                      Leatherman                Leventis
Matthews                  McConnell                 McGill *
Moore                     Passailaigue              Patterson
Rankin                    Reese                     Saleeby
Setzler                   Washington

Total--23


Printed Page 3076 . . . . . Thursday, May 11, 2000

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

Having failed to receive the required vote, Amendment No. 45 was not adopted.

Amendment No. 171

Senator DRUMMOND proposed the following Amendment No. 171 (9627HTC00.DOC), which was adopted (#45):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Section 69, Section 11-49-30(B), as contained in subsection A2, page 707, by inserting before /for/ on line 8 /or any tobacco receipts reserve fund created from it /

Amend further, as and if amended, Section 69, Section 11-49-70(H), as contained in subsection A2, page 710, line 20, by striking /bond/ and inserting /bonds/

Amend further, as and if amended, Section 69, Section 11-49-100, as contained in subsection A2, page 711, line 18, by striking /Audit/ and inserting /Audited/

Amend further, as and if amended, Section 69, Section 11-11-170(B)(1), as contained in subsection B, page 713, beginning on line 24, by striking /proceeds derived from the investments permitted in/ and inserting /funds obtained pursuant to/

Amend further, as and if amended, in Section 69, Section 11-11-170(B)(2), as contained in subsection B, page 714, line 1, by striking /proceeds derived from the investments permitted in/ and inserting /funds obtained pursuant to/

Amend further, as and if amended, in Section 69, Section 11-11-170(B)(3), as contained in subsection B, page 714, line 13, by striking /proceeds derived from the investments permitted in/ and inserting /funds obtained pursuant to/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.


Printed Page 3077 . . . . . Thursday, May 11, 2000

Amendment No. 246

Senators MATTHEWS, PATTERSON, WASHINGTON, JACKSON, GLOVER, FORD and ANDERSON proposed the following amendment (4775R1993.JWM), which was adopted (#46):

Amend the bill, as and if amended, Part II, Section 11-11-170(B)(1) as contained in SECTION 69, page 713, by inserting after line 35 an appropriately lettered subitem to read:

/   (   )   disease prevention and elimination of health disparities: diabetes, HIV/AIDS, hypertension, and stroke, particularly in minority populations;   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

Amendment No. 285

Senator BRANTON proposed the following Amendment No. 285 (21410SD00.DOC), which was adopted (#47):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, PART II, SECTION 69, in Section 13-1-45 of the 1976 Code, which begins on page 714, by adding a subsection to read:

/   ( )   No funds under this section may be provided, promised, or allocated to any projects authorized hereunder before November 15, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator BRANTON explained the amendment.

RECESS

At 5:02 P.M., with Senator BRANTON retaining the floor, on motion of Senator DRUMMOND, with unanimous consent, the Senate receded from business not to exceed ten minutes.

At 5:10 P.M., the Senate resumed.

RECESS

At 5:10 P.M., with Senator BRANTON retaining the floor, on motion of Senator RICHARDSON, with unanimous consent, the Senate receded from business not to exceed five minutes.


Printed Page 3078 . . . . . Thursday, May 11, 2000

At 5:17 P.M., the Senate resumed.

Senator BRANTON explained the amendment.

ACTING PRESIDENT PRESIDES

At 5:35 P.M., Senator PATTERSON assumed the Chair.

Senator BRANTON continued explaining the amendment.

RECESS

At 5:40 P.M., with Senator BRANTON retaining the floor, on motion of Senator MOORE, with unanimous consent, the Senate receded from business not to exceed ten minutes.

At 5:55 P.M., the Senate resumed.

RECESS

At 5:55 P.M., with Senator BRANTON retaining the floor, on motion of Senator PEELER, with unanimous consent, the Senate receded from business not to exceed five minutes.

At 6:08 P.M., the Senate resumed.

Point of Quorum

At 6:09 P.M., Senator LAND made the point that a quorum was not present. It was ascertained that a quorum was not present.

Call of the Senate

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

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Courson
Drummond                  Elliott                   Ford
Giese                     Glover                    Gregory
Hayes                     Holland                   Jackson
Land                      Leatherman                Leventis
Martin                    Matthews                  McConnell
Mescher                   Moore                     Passailaigue
Patterson                 Peeler                    Rankin
Reese                     Richardson                Russell
Ryberg                    Setzler                   Short
Smith, J. Verne           Thomas                    Washington
Wilson

Printed Page 3079 . . . . . Thursday, May 11, 2000

A quorum being present, the Senate resumed.

Senator BRANTON resumed arguing in favor of the adoption of the amendment.

Senator BRANTON moved that the amendment be adopted.

Senator JACKSON spoke on the amendment.

The amendment was adopted.

Motion Under Rule 15A Failed

At 6:35 P.M., Senator MOORE moved under Rule 15A to bring debate to a close on Section 69 at 7:00 P.M.

Senator MOORE, with unanimous consent, spoke on the motion.

Senator BRANTON, with unanimous consent, spoke on the motion.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 23; Nays 13

AYES

Anderson                  Bryan                     Courson
Drummond                  Elliott                   Ford
Glover                    Holland                   Jackson
Land                      Leventis                  Matthews
McConnell                 Moore                     Passailaigue
Patterson                 Rankin                    Reese
Saleeby                   Setzler                   Short
Smith, J. Verne           Washington

Total--23

NAYS

Alexander                 Bauer                     Branton
Giese                     Gregory                   Hayes
Martin                    Mescher                   Peeler
Richardson                Russell                   Ryberg
Wilson

Total--13


Printed Page 3080 . . . . . Thursday, May 11, 2000

The motion under Rule 15A failed.

Amendment No. 288

Senators MOORE and RICHARDSON proposed the following Amendment No. 288 (3954MM00.DOC), which was adopted (#48):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, SECTION 69, Section 13-1-45 as contained in subsection D., page 718, by inserting after line 4:

/ (N)   The department shall submit a quarterly report to the State Budget and Control Board of all projects obligated to for funding pursuant to this section. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

Senator MOORE moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 292

Senator RICHARDSON proposed the following Amendment No. 292 (4775R055.SHR), which was not adopted:

Amend the bill, as and if amended, part II, Section 69, page 713, line 24, by striking the word / Seventy / and inserting / Eighty /

Amend the bill further, as and if amended, Part II, Section 69, page 714, line 1, by striking the word / Fifteen / and inserting the word / Five /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RICHARDSON explained the amendment.

Senator RICHARDSON moved that the amendment be adopted.

Senator WASHINGTON spoke on the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 15; Nays 22

AYES

Alexander                 Bauer                     Branton

Printed Page 3081 . . . . . Thursday, May 11, 2000

Courson                   Giese                     Gregory
Hayes                     Martin                    Mescher
Peeler                    Richardson                Russell
Ryberg                    Thomas                    Wilson

Total--15

NAYS

Anderson                  Bryan                     Drummond
Elliott                   Ford                      Glover
Holland                   Jackson                   Land
Leventis                  Matthews                  McConnell
Moore                     Passailaigue              Patterson
Rankin                    Reese                     Saleeby
Setzler                   Short                     Smith, J. Verne
Washington

Total--22

Having failed to receive the required vote, Amendment No. 288 was not adopted.

The question then was the adoption of Section 69 pursuant to Rule 24B.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 22; Nays 15

AYES

Anderson                  Bryan                     Drummond
Elliott                   Ford                      Glover
Holland                   Jackson                   Land
Leventis                  Matthews                  McConnell
Moore                     Passailaigue              Patterson
Rankin                    Reese                     Saleeby
Setzler                   Short                     Smith, J. Verne
Washington

Total--22


Printed Page 3082 . . . . . Thursday, May 11, 2000

NAYS

Alexander                 Bauer                     Branton
Courson                   Giese                     Gregory
Hayes                     Martin                    Mescher
Peeler                    Richardson                Russell
Ryberg                    Thomas                    Wilson

Total--15

Having failed to receive the required vote, Section 69 was not adopted pursuant to Rule 24B.

PART II, SECTION 70
Point of Order

Senator BRANTON raised a Point of Order that Section 70 was out of order inasmuch as it was not germane to the Bill.

Senator LAND moved to table Section 70.

Section 70 was laid on the table.

Recorded Vote

Senator PASSAILAIGUE desired to be recorded as voting against the motion to table Section 70.

PART II, SECTION 71

Senator MARTIN spoke on Section 71.

PRESIDENT PRESIDES

At 7:26 P.M., the PRESIDENT assumed the Chair.

Senator MARTIN continued speaking on Section 71.

Point of Order

Senator MARTIN raised a Point of Order that Section 71 was out of order inasmuch as it was violative of Section 2-7-105 of the S. C. Code of Laws, 1976, as amended.

Senators LEVENTIS, BRYAN, McCONNELL and MARTIN spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.


Printed Page 3083 . . . . . Thursday, May 11, 2000

Senator MARTIN continued speaking on Section 71.

Amendment No. 27

Senator COURSON proposed the following Amendment No. 27 (JC001.DOC), which was tabled:

Amend the bill, as and if amended, Part II, Section 71(A), by adding an appropriately numbered item at the end to read:

/     ( )   Revolutionary War Site Project   100,000     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 277

Senator GROOMS proposed the following Amendment No. 277 (21406DJC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, SECTION 71, page 728, by adding after line 3:

/Lake Moultrie Boat Landing at Bonneau Beach       1,200,000/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GROOMS explained the amendment.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 22

Senator RICHARDSON proposed the following Amendment No. 22 (BFD014.DOC), which was adopted (#49):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, SECTION 71, page 729, by adding an appropriately numbered item to read:

/ Funds appropriated for the Midlands Film Initiative must be disbursed based on criteria and regulations established by the Film Office in the Department of Commerce. /

Renumber sections to conform.

Amend sections, totals and title to conform.


Printed Page 3084 . . . . . Thursday, May 11, 2000

Senator RICHARDSON explained the amendment.

Senator LEVENTIS moved that the amendment be adopted.

The amendment was adopted.

The question was the adoption of Section 71.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 39; Nays 4

AYES

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Courson
Drummond                  Elliott                   Ford
Giese *                   Glover                    Grooms *
Hayes                     Holland                   Hutto *
Jackson *                 Land                      Leventis
Matthews                  McConnell                 McGill   *
Mescher                   Moore                     O'Dell *
Passailaigue              Patterson                 Peeler
Rankin                    Ravenel *                 Reese
Richardson                Russell                   Saleeby
Setzler                   Short                     Smith, J. Verne
Thomas                    Waldrep                   Washington

Total--39

NAYS

Gregory                   Martin                    Ryberg
Wilson

Total--4

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

Having received the required vote, Section 71 was adopted.


Printed Page 3085 . . . . . Thursday, May 11, 2000

Statement by Senators MARTIN, WILSON, RYBERG and GREGORY

We support many of the capital projects in Section 71. However, we voted against Section 71 for a couple of important policy reasons. This bond authorization has not been considered by the House of Representatives and is not permitted by S. C. Code Section 2-7-105. Clearly, we could have funded the most important capital projects out of the Capital Reserve Fund as was done by the House in its version of the Bill. Further, it is not prudent policy to max out on the state's debt service limit. For example, the bond authorization contained in Section 71 will not allow the State to authorize any more capital improvement bonds for all of state government until 2003-2004 fiscal year.

RECESS

At 8:25 P.M., on motion of Senator SETZLER, the Senate receded from business not to exceed ten minutes.

At 8:58 P.M., the Senate resumed.

Senator BRANTON spoke on the Bill.

Point of Personal Privilege

Senator BRANTON rose to a Point of Personal Privilege.

Objection

With Senator BRANTON retaining the floor, Senator ELLIOTT asked unanimous consent to make a motion that the Senate stand adjourned.

Senator DRUMMOND objected.

Senator BRANTON continued speaking on the Bill.

RECESS

At 9:15 P.M., with Senator BRANTON retaining the floor, on motion of Senator PEELER, with unanimous consent, the Senate receded from business not to exceed five minutes.

At 9:20 P.M., the Senate resumed.

With Senator BRANTON retaining the floor, Senator PEELER asked unanimous consent to make a motion to take up Amendment No. 4 for immediate consideration.


Printed Page 3086 . . . . . Thursday, May 11, 2000

Amendment No. 4

Senators RAVENEL, LEATHERMAN, PASSAILAIGUE, LEVENTIS, BRANTON, HUTTO, BRYAN, MCCONNELL, SALEEBY, MCGILL, MOORE, GIESE, ELLIOTT, PATTERSON, WASHINGTON, MESCHER and PEELER proposed the following Amendment No. 4 (12062AC00.DOC), which was adopted (#50):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

  /SECTION ____

TO AMEND THE1976 CODE, BY ADDING SECTION 44-20-365 SO AS TO PROVIDE THAT NO REGIONAL CENTER OPERATED BY THE DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS MAY BE CLOSED EXCEPT AS AUTHORIZED BY THE GENERAL ASSEMBLY BY LAW IN AN ENACTMENT THAT SPECIFIES BY NAME THE REGIONAL CENTER TO BE CLOSED.

Article 3, Chapter 20, Title 44 of the 1976 Code is amended by adding:

"Section 44-20-365.   No regional center of the department may be closed except as authorized by the General Assembly by law in an enactment that specifies by name the regional center to be closed."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 7

Senator RANKIN proposed the following Amendment No. 7 (3897MM00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

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

  / SECTION __

TO AMEND SECTION 12-36-2120, AS AMENDED, OF THE 1976 CODE, RELATING TO EXEMPTIONS FROM SALES TAX, SO AS TO PROVIDE THAT FUEL USED EXCLUSIVELY TO GROW OR PRESERVE AGRICULTURAL PRODUCTS, IN


Printed Page 3087 . . . . . Thursday, May 11, 2000

ADDITION TO FUEL USED TO CURE AGRICULTURAL PRODUCTS, IS EXEMPT FROM THE SALES TAX.

Section 12-36-2120(18) of the 1976 Code is amended to read:

"(18)   fuel used exclusively to grow, preserve, or cure agricultural products;" /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RANKIN explained the amendment.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 9

Senator ELLIOTT   proposed the following Amendment No. 9 (4775R015.DE), which was tabled:

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  / SECTION ____

TO AMEND CHAPTER 1, TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE RETIREMENT SYSTEM, BY ADDING SECTION 9-1-535 SO AS TO PROVIDE THAT THE SURVIVING SPOUSE OF A FORMER MEMBER OF THE GENERAL ASSEMBLY MAY PURCHASE UP TO EIGHT YEARS OF SERVICE CREDIT TIME IN THE STATE RETIREMENT SYSTEM, IF THE MEMBER SERVED A MINIMUM OF SIX YEARS BUT LESS THAN EIGHT IN THE GENERAL ASSEMBLY; TO PROVIDE FOR THE RATE AT WHICH THE SERVICE CREDIT TIME MAY BE PURCHASED; AND TO PROVIDE FOR STATE MATCHING CONTRIBUTIONS.

A.   Chapter 1, Title 9 of the 1976 Code is amended by adding:

"Section 9-1-535.   The surviving spouse of a former member of the General Assembly may elect to purchase up to eight years of service credit time to be credited toward vesting in the state retirement system, provided that the former member served a minimum of six years but less than eight in the General Assembly prior to January 1, 1980.

A surviving spouse may elect to purchase the service credit time at the same rate that was available to the member during his service in the General Assembly. Notwithstanding any other provision of law, a surviving spouse exercising the option pursuant to the provisions of this


Printed Page 3088 . . . . . Thursday, May 11, 2000

section is entitled to the state matching contribution at the same rate available to members serving in the General Assembly at the time of exercise of the option.

Nothing contained in this section or any other provision of law shall be interpreted to preclude the surviving spouse of a former member who received a refund of all contributions to the system from exercising the option created pursuant to this section."   /

Renumber sections to conform.

Amend title to conform.

Senator LAND explained the amendment.

Senator LEVENTIS moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 21

Senator RICHARDSON proposed the following Amendment No. 21 (3907MM00.DOC), which was adopted (#51):

(Reference is the Senate Finance Committee Report)

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

  / SECTION __

TO AMEND SECTION 1-30-25, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DEPARTMENT OF COMMERCE, SO AS TO PROVIDE THAT THE DEPARTMENT DEVELOP CRITERIA FOR ALLOCATING FUNDING THROUGH THE SOUTH CAROLINA FILM OFFICE.

Section 1-30-25(D) of the 1976 Code, as last amended by Act 100 of 1999, is further amended to read:

"(D)     State Development Board, including the South Carolina Film Office, formerly provided for at Section 13-3-10, et seq., except that the department must make reasonable rules and promulgate reasonable regulations to ensure that funds made available to film projects through its Film Office are budgeted and spent so as to further the following objectives:

(1)   stimulation of economic activity to develop the potentialities of the State;

(2)   conservation, restoration, and development of the natural and physical, the human and social, and the economic and productive resources of the State;


Printed Page 3089 . . . . . Thursday, May 11, 2000

(3)   promotion of a system of transportation for the State, through development and expansion of the highway, railroad, port, waterway, and airport systems;

(4)   promotion and correlation of state and local activity in planning public works projects;

(5)   promotion of public interest in the development of the State through cooperation with public agencies, private, enterprises, and charitable and social institutions;

(6)   encouragement of industrial development, private business, commercial enterprise, agricultural production, transportation, and the utilization and investment of capital within the State;

(7)   assistance in the development of existing state and interstate trade, commerce, and markets for South Carolina goods and in the removal of barriers to the industrial, commercial, and agricultural development of the State;

(8)   assistance in ensuring stability in employment, increasing the opportunities for employment of the citizens of the State, devising ways and means to raise the living standards of the people of the State; and

(9)   enhancement of the general welfare of the people;" /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RICHARDSON explained the amendment.

Senator RICHARDSON moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 33

Senator GROOMS proposed the following Amendment No. 33 (12063AC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions by adding an appropriately numbered SECTION to read:

  /SECTION ____

TO AMEND THE 1976 CODE BY ADDING SECTION 1-3-15 SO AS TO PROVIDE THAT THE GOVERNOR MAY NOT ISSUE AN EXECUTIVE ORDER UNLESS HE HAS BEEN GRANTED EXPRESS AUTHORITY.

A.   The 1976 Code is amended by adding:


Printed Page 3090 . . . . . Thursday, May 11, 2000

"Section 1-3-15.   No executive order is effective unless the Governor has been granted express statutory or constitutional authority to issue the order. All orders must contain a clause citing the appropriate authorization for the issuance of the executive order."

B.   This section takes effect upon approval by the Governor and applies to all executive orders issued on or after that date./

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 48A

Senator J. VERNE SMITH proposed the following Amendment No. 48A (18436SOM00.DOC), which was adopted (#52):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered section to read:

  / SECTION ___

TO AMEND SECTION 20-7-670, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF SOCIAL SERVICES' AUTHORITY TO INVESTIGATE ABUSE AND NEGLECT IN RESIDENTIAL INSTITUTIONS AND FOSTER HOMES, SO AS TO PROVIDE THAT THE DEPARTMENT OF SOCIAL SERVICES, INSTEAD OF THE OMBUDSMAN OF THE OFFICE OF THE GOVERNOR, SHALL INVESTIGATE AN ALLEGATION OF ABUSE OR NEGLECT OF A CHILD WHERE THE CHILD IS IN THE CUSTODY OF, OR A RESIDENT OF, A PUBLIC OR PRIVATE HEALTH FACILITY, INSTITUTION, OR AGENCY LICENSED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL OR OPERATED BY THE DEPARTMENT OF MENTAL HEALTH; AND TO AMEND SECTION 1A OF JOINT RESOLUTION 157 OF 1997, AS AMENDED, RELATING TO A PILOT CHILD PROTECTIVE SERVICES SYSTEM WHICH ALLOWS THE DEPARTMENT OF SOCIAL SERVICES TO DIVERT CHILD ABUSE AND NEGLECT CASES TO AN ASSESSMENT TRACK RATHER THAN FOLLOWING NORMAL PROTOCOL WHEN CERTAIN MORE SERIOUS FORMS OF ALLEGED ABUSE OR NEGLECT ARE NOT PRESENT, SO AS TO


Printed Page 3091 . . . . . Thursday, May 11, 2000

INCREASE THE NUMBER OF COUNTIES IN THE PILOT SYSTEM AND TO PROVIDE THAT THE NEWEST COUNTIES ADDED NEED NOT BE INCLUDED IN THE EVALUATION.

A.   Section 20-7-670 of the 1976 Code, as last amended by Act 132 of 1997, is further amended to read:

"Section 20-7-670.     (A)   The Department of Social Services is authorized to receive and investigate reports of abuse and neglect in residential institutions and foster homes. In no case does the Department of Social Services have responsibility for investigating allegations of abuse and neglect in institutions operated by the Department of Social Services.

(B)   The Department of Social Services is authorized to receive and investigate reports of abuse and neglect occurring in foster homes supervised by or recommended for licensing by the department or by child placing agencies to determine whether the report is indicated or unfounded. Indicated reports must be based upon a finding that abuse or neglect is supported by a preponderance of the evidence available to the department. The determination that a report is indicated may be appealed, as provided in Section 20-7-655. Responsibility for investigating the department's foster homes must be assigned to a unit or units not responsible for selecting or licensing its foster homes.

(C)   The department shall promulgate regulations consistent with this authority. The regulations shall cover at a minimum investigation of reports, notice to the institutions and sponsoring agencies, and remedial action.

(D)   The State Law Enforcement Division is authorized to receive and investigate reports of institutional abuse and neglect alleged to have occurred in any institution or foster home operated by the Department of Juvenile Justice and any institution or day care facility operated by the Department of Social Services. The State Law Enforcement Division may promulgate regulations consistent with this authority to receive and investigate these reports and take remedial action, if necessary.

(E)   The Department of Social Services may initiate proceedings in the circuit court to enjoin the operations of a foster home, an institution, or a child placing agency or to require other corrective action if necessary for the safety of the children. The department shall take whatever steps it considers necessary to inform potential reporters of abuse and neglect of its responsibilities under this section.

(F)   Notwithstanding the provisions of subsection (A) or any other provision of this article, the The Department of Social Services may not


Printed Page 3092 . . . . . Thursday, May 11, 2000

must investigate an allegation of abuse or neglect of a child where the child is in the custody of or a resident of a public or private health facility, institution, or agency residential treatment facility or Intermediate Care Facility for the mentally retarded licensed by the Department of Health and Environmental Control or operated by the Department of Mental Health. These allegations of abuse and neglect must be investigated by the ombudsman of the Office of the Governor pursuant to Article 1, Chapter 35, Title 43, and Chapter 38, Title 43.

(G)   The Department of Social Services has access to facilities for the purpose of conducting investigations and has authority to request and receive written statements, documents, exhibits, and other information pertinent to an investigation including, but not limited to, hospital records. The appropriate officials, agencies, departments, and political subdivisions of the State must assist and cooperate with the court and the Department of Social Services in furtherance of the purposes of this section.

(H)   The Department of Social Services may file with the family court an affidavit and a petition to support issuance of a warrant at any time during an investigation. The family court must issue the warrant if the affidavit and petition establish probable cause to believe the child is an abused or neglected child and that the investigation cannot be completed without issuance of the warrant. The warrant may authorize the department to interview the child, to inspect the premises of the child, to inspect the premise where the child may be located or may reside, and to obtain copies of medical, school, or other records necessary for investigation of the allegations of abuse or neglect.

(I)   When the investigation performed pursuant to this section results in a determination that an individual has harmed a child or threatened a child with harm, as defined in Section 20-7-490, the name of that individual immediately must be entered immediately in the Central Registry of Child Abuse and Neglect. The department must notify the individual in writing by certified mail that his name has been entered in the registry, of his right to request an appeal of the decision to enter his name in the registry, and of the possible consequences to ramifications regarding future employment and licensing if he allows his name to remain in the registry. The procedures set out forth in Section 20-7-655 apply when an individual challenges the entry of his name in the registry, and challenges of the entry in the registry pursuant to this subsection must be given expedited review in the appellate process." /


Printed Page 3093 . . . . . Thursday, May 11, 2000

B.     Section 1A of Joint Resolution 157 of 1997, as amended by Act 104 of 1999, is further amended to read:

/   "(A)   The Department of Social Services is authorized to establish in one region or up to six twelve counties of the State a pilot child protective services system as set forth in this joint resolution. The pilot shall commence no sooner than January 1, 1998, and no later than January 1, 1999. It shall continue for three years after it is commenced and until the conclusion of the next legislative session thereafter. Counties which are added to the pilot project more than one year after the commencement of the pilot project need not be included in the evaluation of the project. The pilot will test a child protection system that acknowledges the different intervention needs of families by providing for a family assessment track instead of normal protocol in certain cases. For purposes of this pilot, the definitions of child abuse and neglect and related terms as contained in Section 20-7-490 of the 1976 Code apply and nothing in this joint resolution may be construed to expand the jurisdiction of the department. It is the intent of the General Assembly that an alternative manner of intervention be developed that diminishes the need for family court involvement but does not increase the number of families receiving child protective service interventions. Provisions of Chapter 7, Title 20 of the 1976 Code that do not conflict with the provisions of this joint resolution apply to the pilot." /

Renumber sections to conform.

Amend sections and title to conform.

Senator J. VERNE SMITH explained the amendment.

The amendment was adopted.

Amendment No. 50A

Senators GREGORY, PEELER and SHORT proposed the following amendment (4775R058.CKG), which was adopted (#53):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  / SECTION ____

TO AMEND SECTION 50-11-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OPEN SEASON FOR ANTLERED DEER, SO AS TO PROVIDE FOR HUNTING DEER ON SUNDAYS ON PRIVATE LAND IN GAME ZONE 4.


Printed Page 3094 . . . . . Thursday, May 11, 2000

Section 50-11-310 of the 1976 Code, as last amended by Act 57 of 1997, is further amended by adding:

"(E)   Notwithstanding any other provision of law, it is not unlawful to hunt deer on Sunday on private land in Game Zone 4 during the prescribed season for hunting deer."       /

Renumber sections to conform

Amend sections, totals and title to conform.

Senator PEELER explained the amendment.

Senator PEELER moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 89

Senators MESCHER and RAVENEL proposed the following Amendment No. 89 (4775R120.WCM), which was adopted (#54):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  / SECTION ___

TO AMEND ARTICLE 3, CHAPTER 3, TITLE 54, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA STATE PORTS AUTHORITY, BY ADDING SECTION 54-3-260 SO AS TO REQUIRE APPROVAL OF THE GENERAL ASSEMBLY PRIOR TO THE CONSTRUCTION OF A TERMINAL OR RAILROAD ON DANIEL ISLAND.

Article 3, Chapter 3, Title 54 of the 1976 Code is amended by adding:

"Section 54-3-260.   The authority must obtain the approval of the General Assembly prior to constructing a terminal or railroad on Daniel Island."     /
Renumber sections to conform.
Amend sections, totals and title to conform.

Senators LAND and MESCHER spoke on the amendment.

The amendment was adopted.

Amendment No. 90

Senator GROOMS proposed the following Amendment No. 90 (NBD\12088AC00.DOC), which was tabled:


Printed Page 3095 . . . . . Thursday, May 11, 2000

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

  /SECTION ____

THE 1976 CODE IS AMENDED BY ADDING SECTION 44-1-290, SO AS TO REQUIRE BUSINESSES THAT MUST DISPLAY A FOOD SERVICE PERMIT TO ALSO DISPLAY A "KEEP SOUTH CAROLINA CLEAN" SIGN WHICH MUST ALSO INCLUDE LITTERING PENALTIES AND TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO PROVIDE THE SIGN.

The 1976 Code is amended by adding:

"Section 44-1-290.   A business establishment that is required by law to display a food service permit must also display a sign that is eight and one-half inches by eleven inches stating in bold print 'Keep South Carolina Clean'. The sign also must include the maximum penalties for littering. The Department of Health and Environmental Control shall provide this self-adhesive sign to these establishments in the same manner the department provides food service permit signs."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 129

Senator BAUER proposed the following Amendment No. 129 (22659HTC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

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

  / SECTION _____

TO AMEND SECTION 59-63-260, AS AMENDED, OF THE 1976 CODE, RELATING TO CORPORAL PUNISHMENT IN PUBLIC SCHOOLS, SO AS TO PROVIDE THAT A SCHOOL DISTRICT THAT HAS ADOPTED A POLICY PERMITTING CORPORAL PUNISHMENT AND ITS EMPLOYEES ARE IMMUNE FROM CIVIL AND CRIMINAL LIABILITY ARISING FROM A STUDENT


Printed Page 3096 . . . . . Thursday, May 11, 2000

OF THE DISTRICT BEING ADMINISTERED CORPORAL PUNISHMENT IN ACCORDANCE WITH THE DISTRICT'S POLICY, TO PROVIDE THAT THE IMMUNITY FROM CIVIL AND CRIMINAL LIABILITY DOES NOT APPLY WHERE CORPORAL PUNISHMENT IS ADMINISTERED IN A GROSSLY NEGLIGENT OR RECKLESS MANNER AND RESULTS IN A SERIOUS OR PERMANENT INJURY TO THE PUPIL AND TO REQUIRE THE OFFERING OF ALTERNATIVE PUNISHMENTS TO PARENTS BEFORE CORPORAL PUNISHMENT TO THEIR CHILD MAY BE ADMINISTERED.

A.   Section 59-63-260 of the 1976 Code is amended to read:

"Section 59-63-260. (A)   The governing body of each school district may provide corporal punishment for any pupil that it deems just and proper.

(B)   A school district that has adopted a policy permitting corporal punishment and its employees are immune from civil and criminal liability arising from a student of the district being administered corporal punishment in accordance with the district's policy.

(C)   The immunity from civil and criminal liability provided in subsection (B) does not apply in those cases where corporal punishment is administered in a grossly negligent or reckless manner and results in a serious or permanent injury to the pupil.

(D)   A school in a district which has adopted a policy permitting corporal punishment and which wishes to administer corporal punishment to a child under such policy must notify a parent, guardian, or person in loco parentis responsible for the child of this fact and offer the parent, guardian, or person in loco parentis the option to remove a child from the school in lieu of corporal punishment being administered. A parent, guardian, or person in loco parentis of a child who objects to his child or ward being subject to corporal punishment must remove the child from the school immediately upon being requested to do so. If a parent, guardian, or person in loco parentis of a child who objects to his child or ward being subject to corporal punishment cannot be located or does not remove the child from the school within a reasonable time after being requested to do so, the school shall treat the child as though the child were under suspension. A child removed from a school in lieu of corporal punishment may not return to the school until permitted to do so by the school district as a part of its policy on corporal punishment."

B.   This section takes effect July 1, 2000. /

Renumber sections to conform.


Printed Page 3097 . . . . . Thursday, May 11, 2000

Amend sections, totals and title to conform.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 133

Senator RICHARDSON proposed the following Amendment No. 133 (4775R013.SHR), which was ruled out of order:

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

  / SECTION

TO AMEND SECTION 16 OF ACT 253 OF 1992, RELATING TO PRIMARIES, SO AS TO REQUIRE ALL PRIMARIES FOR COUNTYWIDE, STATEWIDE, AND NATIONAL OFFICES TO BE HELD BY THE STATE ELECTION COMMISSION AND THE COUNTY ELECTION COMMISSIONS ON THE SECOND TUESDAY IN JUNE OF EACH GENERAL ELECTION YEAR AND TO REQUIRE ALL ELECTIONS, INCLUDING LOCAL BOND REFERENDA, TO BE HELD AT THE TIME OF THE GENERAL ELECTION.

A.   Section 16 of Act 253 of 1992 is further amended to read:

"Section 16.   Except for municipal primaries, all All primaries for national offices, excluding the Office of President, and all primaries for state offices, offices including more than one county, and countywide and less than countywide offices, specifically including, but not limited to, all school boards and school trustees, special purpose district offices, which include, but are not limited to, water, sewer, fire, soil conservation, and other similar district offices, must be conducted by the State Election Commission and the county election commissions on the second Tuesday in June of each general election year. Notwithstanding any other provision of law, all elections whether partisan or nonpartisan must be conducted at the time of the General Election. All local elections, including bond or other referenda questions, may only be put before the voters at the time of the General Election. Nothing contained in this section shall be construed to alter or amend any other provision of law governing the date, time, place, or manner in which special elections are conducted. The election laws of the State shall apply, mutatis mutandi."   /

Renumber sections to conform.

Amend sections, totals and title to conform.


Printed Page 3098 . . . . . Thursday, May 11, 2000

Senator RICHARDSON explained the amendment.

Point of Order

Senator LAND raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator LEVENTIS spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Amendment No. 157

Senator REESE proposed the following Amendment No. 157 (3931MM00.DOC), which was adopted (#55):

(Reference is the Senate Finance Committee Report)

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

  / SECTION __

TO AMEND THE 1976 CODE BY ADDING SECTION 8-11-180 SO AS TO AUTHORIZE A STATE EMPLOYEE WHO IS A CERTIFIED DISASTER SERVICE VOLUNTEER FOR THE AMERICAN RED CROSS PAID LEAVE OF NOT MORE THAN FIFTEEN DAYS IN A YEAR TO PARTICIPATE IN SPECIALIZED DISASTER RELIEF SERVICES OF THE AMERICAN RED CROSS AND TO MAKE THE LEAVE AVAILABLE ONLY WITH THE APPROVAL OF HIS EMPLOYER.

Article 1, Chapter 11, Title 8 of the 1976 Code is amended by adding:

"Section 8-11-180.     A state employee entitled to annual leave pursuant to Article 7 of this chapter and who is a certified disaster service volunteer of the American Red Cross may be granted leave from work with pay for not more than fifteen work days in each calendar year to participate in specialized disaster relief services for the American Red Cross. Upon the approval of his employer, the employee must be released from work for this function upon request of the American Red Cross for his services. This leave is in addition to other leave to which the employee is entitled." /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator REESE explained the amendment.


Printed Page 3099 . . . . . Thursday, May 11, 2000

The amendment was adopted.

Amendment No. 165

Senator LEVENTIS proposed the following Amendment No. 165 (NBD\12100AC00.DOC), which was adopted (#56):

(Reference is the Senate Finance Committee Report)

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

  /SECTION ____

TO AMEND TITLE 46, OF THE 1976 CODE, RELATING TO AGRICULTURE, BY ADDING CHAPTER 53 SO AS TO ENACT THE "FARM AND FOREST LANDS PROTECTION ACT" WHICH ESTABLISHES STATE AND COUNTY PRIORITY AGRICULTURAL LAND BOARDS, WHICH PROVIDES FOR THEIR POWERS AND DUTIES, WHICH ESTABLISHES CRITERIA AND PROCEDURES FOR CREATING PRIORITY AGRICULTURAL LAND AREAS AND FOR THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS FOR LAND WITHIN THE PRIORITY AREA, WHICH CREATES THE PRIORITY AGRICULTURAL LAND TRUST FUND TO DISBURSE FUNDS FOR THE PURCHASE OF CONSERVATION EASEMENTS, WHICH REQUIRES THE PERIODIC REVIEW OF ALL PRIORITY AGRICULTURAL LAND AREAS, AND WHICH RESTRICTS SOME LOCAL GOVERNMENT ACTIONS WITH REGARD TO PRIORITY AREAS.

Title 46 of the 1976 Code is amended by adding:

  "CHAPTER 53

Farm and Forest Lands Protection Act

Section 46-53-10.   This chapter must be known and may be cited as the 'Farm and Forest Lands Protection Act.'

Section 46-53-20.   It is the purpose of this chapter to:

(1)   provide a means by which agricultural and forest lands may be protected and enhanced as a viable segment of the state's economy and as an economic and environmental resource of major importance;

(2)   encourage landowners to make a voluntary long-term commitment to agriculture and forestry by offering landowners financial incentives and security of land use;

(3) protect agricultural and forestry operations in priority agricultural land areas from incompatible nonagricultural and nonforestry land uses that may render agriculture and forestry operations nonviable;


Printed Page 3100 . . . . . Thursday, May 11, 2000

(4)   ensure permanent protection of productive agricultural and forest lands in order to protect the agricultural and forestry economy of this State;

(5)   provide compensation to landowners in exchange for their relinquishment of the right to develop their private property; and

(6)   leverage state, federal, local, and private agricultural easement purchase funds and protect the investment of taxpayers in agricultural conservation easements.

Section 46-53-30.   As used in this chapter:

(1)   'Active farmer' means a landowner or operator of land who manages the daily production of agricultural or forest crops. The land that agricultural and forest crops are being grown upon must be under a conservation plan.

(2)   'Agricultural conservation easement' means an interest in land, less than fee simple, which interest represents the right to restrict or prevent the development or improvement of the land for any purpose other than agricultural production. The easement may be granted by the owner of the fee simple to any third party or to the State, to a county council, or to a unit of local government. It must be granted in perpetuity, except as provided for in Section 46-53-120(B)(2), as the equivalent of covenants running with the land. The exercise or failure to exercise any right granted by the easement shall not be deemed to be management or control of activities at the site for purposes of enforcement of the Federal Comprehensive Environmental Response Compensation Liability Act of 1980.

(3)   'Agricultural and forest crops' includes, but is not limited to:

(a)   food, feed, forage, fiber, and oil seeds, field crops, fruit crops, and vegetable crops;

(b)   agronomy, horticulture, mariculture, aquaculture, viticulture, and floriculture;

(c)   livestock, poultry, and livestock and poultry products;

(d)   specialties of beekeeping; and

(e)   timber, wood, and other wood products derived from trees.

(4)   'Agricultural production' means the production of agricultural and forest crops for gain or profit through normal farming operations.

(5)   'Conservation district' means a soil and water conservation district as established in Section 48-9-30(1).

(6)   'Conservation plan' means a plan prepared by the Natural Resources Conservation Service of the United States Department of Agriculture (USDA), approved by the appropriate conservation district,


Printed Page 3101 . . . . . Thursday, May 11, 2000

and implemented by a landowner, describing best land management practices including an installation schedule and maintenance program, which when completely implemented, will improve and maintain soil, water, and related plant and animal resources of the land. The forest land portion of the conservation plan must be prepared by a registered forester and approved by the South Carolina Forestry Commission.

(7)   'County board' means a County Priority Agricultural Land Board.

(8)   'Department' means the South Carolina Department of Natural Resources.

(9)   'Eligible county' means a county whose purchase of agricultural conservation easement program has been approved by the State Priority Agricultural Land Board. For the purpose of annual allocations, an eligible county must have its agricultural conservation easement purchase program approved by the State Priority Agricultural Land Board at the time of allocation.

(10)   'Farmland value' means the price as of the valuation date for property used only for agricultural production which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.

(11)   'Fiscal year' means fiscal year of the State.

(12)   'Forest farmer' means a landowner or a landowner's designee with a minimum of one hundred acres that is being actively managed for forest products.

(13)   'Fund' means the Priority Agricultural Land Trust Fund of South Carolina established by this chapter.

(14)   'Governing body' means the elected governing body of a local government unit.

(15)   'Immediate family member' means a spouse, brother, sister, son, daughter, stepson, stepdaughter, grandson, granddaughter, father, or mother of a landowner.

(16)   'Landowner' means the record owner of the land, the authorized contract purchaser of the land, or the record owner of the development easement other than a county acquired pursuant this chapter.

(17)   'Market value' means the price as of the valuation date for the highest and best use of the property which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.


Printed Page 3102 . . . . . Thursday, May 11, 2000

(18)   'Normal farming operation' means the customary and generally accepted practices and procedures farmers adopt, use, or engage in including, but not limited to, planting, cultivating, producing, harvesting, processing, packaging, storing, marketing for wholesale or retail distribution of their production, and managing waste. This includes on-site facilities needed to carry out these practices including, but not limited to, greenhouses, nurseries, barns, packing sheds, farm labor housing, stables, maintenance buildings, crop market facilities, and other building structures used in implementing best management practices of irrigation, air, water, and waste.

(19)   'Planning commission' means a municipal planning commission, a county planning commission, a joint city-county planning commission, or a consolidated government planning commission as defined and governed by the South Carolina Local Government Comprehensive Planning Enabling Act of 1994.

(20)   'Priority agricultural land area' means a unit of land used for agricultural production under the ownership of one or more persons and designated as such by the procedures set forth in this chapter.

(21)   'State board' means the State Priority Agricultural Land Board.

(22)   'Viable agricultural land' means land suitable for agricultural production which will continue to be economically feasible for such use if real estate taxes, farm use restrictions, and speculative activities are limited to levels approximating those in commercial agricultural areas not influenced by the proximity of urban and related nonagricultural development.

Section 46-53-40.   (A)   The Department of Natural Resources and the State Priority Agricultural Land Board shall administer pursuant to this section a program for the purchase of agricultural conservation easements. The department is responsible for the administration of this program.

(B)   There is established within the department as a departmental board the State Priority Agricultural Land Board. The state board shall consist of the following:

(1)   five voting ex-officio members or their designees: the Director of the Department of Natural Resources who shall serve as the board chairman; the Commissioner of Agriculture; the Secretary of Commerce; the Vice President for Public Service and Agriculture at Clemson University; and the State Forester;

(2)   five members appointed by the Governor, with the advice and consent of the Senate, on the recommendation of the board of the


Printed Page 3103 . . . . . Thursday, May 11, 2000

department. One member must be a current member of a county council who shall serve as voting ex-officio member; one member must be a person who is recognized as having significant knowledge in agricultural production fiscal and financial matters; one member must be actively involved in commercial or residential development; two must be conservation district commissioners, one of whom must be a forest farmer, who shall serve as voting ex-officio members. Initially, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and one member must be appointed for a term of two years. Thereafter, the terms of all members is for four years. The term of a person appointed to replace another member whose term has not expired is only the unexpired portion of that term. Members may be reappointed to successive terms;

(3)   six members appointed by the Governor, with the advice and consent of the Senate. The Governor in making these appointments shall consider recommendations made by the South Carolina Agriculture Commission and a general farm organization. These members must be active farmers, each representing a different congressional district, each residing within the State, and at least one of whom must be a forest farmer and one of whom must be a confined animal feeding operation owner. Of the initial appointees, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and the other members must be appointed for a term of two years. Thereafter, the terms of all appointees are for four years. An appointment made to fill an unexpired term is only for the duration of the unexpired term. Members may be reappointed to successive terms.

Half of all members shall constitute a quorum for purposes of conducting meetings and official actions pursuant to authority given to the state board under this chapter.

It is not a conflict of interest for a voting ex-officio member to vote on matters pertaining to the county from which that member comes to the board.

(C)   The state board shall:

(1)   promulgate regulations pursuant to this chapter;

(2)   adopt rules of procedure and bylaws governing the operations of the state board and the conduct of its meetings;

(3)   allocate fund monies among eligible counties for the purchase of agricultural conservation easements, in accordance with provisions of subsection 46-53-120(F);


Printed Page 3104 . . . . . Thursday, May 11, 2000

(4)   establish and publish the standards, criteria, and requirements for the allocation of fund monies pursuant to subsection 46-53-120(F);

(5)   establish and maintain a central repository of records which shall contain records of county programs for purchasing agricultural conservation easements and records of agricultural conservation easements purchased by counties;

(6)   establish and publish the standards, criteria, and requirements necessary for state board approval of county programs for purchasing agricultural conservation easements;

(7)   review, certify, and approve, or disapprove county programs for purchasing agricultural conservation easements;

(8)   determine the maximum amount for its share for the purchase of an agricultural conservation easement;

(9)   review and approve or disapprove for recertification each county program for the purchase of agricultural conservation easements;

(10)   establish and publish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign priority to those applications to be submitted for consideration of federal funding;

(11)   authorize the development of a publication defining all technical elements necessary for a complete application for purchase of an agricultural conservation easement. This publication shall include model formats of the specific components of applications. Publications must be distributed to every county with an approved program for purchasing agricultural conservation easements and must be available to all others upon request; and

(12)   exercise other discretionary powers as may be necessary and appropriate for the exercise and performance of its duties, powers, and responsibilities under this chapter.

(D)   The state board is authorized to take the actions necessary to qualify for federal guarantees and interest rate assistance for agricultural easement purchase loans under Chapter 2 of the Food Agriculture, Conservation, and Trade Act of 1990 or subsequent acts.

Section 46-53-50.   (A)   Upon the creation of a County Priority Agricultural Land Board, the county board must be composed of nine or eleven members appointed by a county council. The county council may seek the advice of a local general farm organization. County board members shall be appointed as follows: the number of active farmers shall constitute at least one less than a majority of the board, at least one of whom must be a forest farmer; one member must be a


Printed Page 3105 . . . . . Thursday, May 11, 2000

current conservation district commissioner of a county and shall serve in a voting ex-officio capacity; one member must be a current member of the governing body of a town located within a county and shall serve in a voting ex-officio capacity; one member must be actively involved in commercial or residential development and the other members must be appointed at the pleasure of a county council. The county board shall elect annually one member of a board to serve as chairman of the board. The term ends for the member from the governing body of a town located within the county if the member vacates the elected office or at the expiration of the member's term of office in his elected position. The term of the initial farmer appointees is for three years; and the initial term of all other members is for one year. Thereafter, the term of all members is for three years.

Members shall serve without salary, but the county council may entitle each member to reimbursement for his actual and necessary expenses incurred in the performance of his official duties. The county board shall work with the planning commission, if one exists, to advise county council on matters relating to the proposed establishment, modification, and termination of a priority agricultural land area. In particular, the board shall render expert advice relating to the desirability of such action, including advice as to the nature of agricultural production within a proposed area and the relation of agricultural production in an area to the county as a whole.

(B)   Each county board shall:

(1)   adopt rules of procedure and bylaws governing the operation of the county board and the conduct of its meetings;

(2)   adopt rules for the administration of a county program for the purchase of agricultural conservation easements in accordance with the provisions of this chapter;

(3)   propose a priority agricultural land area or areas;

(4)   adopt rules establishing the standards and procedures for purchase of agricultural conservation easements within priority agricultural land areas including, but not limited to, rules governing the submission of applications by landowners, establishing standards and procedures for the valuation of property eligible for purchase as an agricultural conservation easement, and establishing standards and procedures for the selection or purchase of agricultural conservation easements;

(5)   execute agreements to purchase agricultural conservation easements in the name of the county with the advice and consent of the county council;


Printed Page 3106 . . . . . Thursday, May 11, 2000

(6)   purchase in the name of the county agricultural conservation easements within priority agricultural land areas with the advice and consent of the county council;

(7)   use monies appropriated and approved by the county council from the county general fund to hire staff and administer the county program;

(8)   use monies appropriated by the county council from the county general fund or the proceeds of indebtedness incurred by the county and approved by the county council for the purchase of agricultural conservation easements within priority agricultural land areas;

(9)   purchase agricultural conservation easements separately or in combination with any funding source or sources, including federal, state, local, and private funds with the advice and consent of the county council;

(10)   establish and maintain a repository of records of agricultural and forest lands which are subject to agricultural conservation easements purchased by the county and which are located within the county;

(11)   record agricultural conservation easements purchased by the county in the office of the recorder of deeds of the county wherein agricultural conservation easements are located;

(12)   submit to the state board for review the initial county program and any proposed revisions to approved county programs for purchasing agricultural conservation easements;

(13)   establish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign to the applications to be submitted for consideration for federal funding; and

(14)   conduct educational activities as are necessary; however, an educational workshop open to the public must be conducted prior to the establishment of a priority agriculture land area.

(C)   Each county board shall submit to the state board an annual report which includes:

(1)   location of priority agricultural land areas and agricultural conservation easements in the county;

(2)   number of acres throughout the county which are located within priority agricultural land areas;

(3)   number of acres throughout the county which are subject to agricultural conservation easements;

(4)   number of agricultural conservation easements in the county;


Printed Page 3107 . . . . . Thursday, May 11, 2000

(5)   number of acres included within each agricultural conservation easement throughout the county;

(6)   number and value of agricultural conservation easements purchased by the county, including the number and value of purchases made during the preceding fiscal year of the State;

(7)   dollar value of the annual appropriation made by the county for the purchase of agricultural conservation easements;

(8)   quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;

(9)   nature, scope, and extent of development activity within areas where agricultural conservation easements have been purchased;

(10)   nature and extent of conservation practices and best management practices including, but not limited to, soil erosion, sedimentation control, and nutrient management practices, which are practiced on agricultural and forest lands subject to agricultural conservation easements; and

(11)   total number of recommendations filed by the county for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.

Section 46-53-60.   (A)(1)   A landowner whose property is within the proposed priority agricultural land area or a county board may submit a request to its county council for the creation of a priority agricultural land area or areas within the county. A request must be in the format and manner prescribed by the county.

(2)   When a request has been submitted for the creation of a priority agricultural land area or areas, a county council shall proceed in the following manner:

(a)   Each county council shall establish a county board pursuant to Section 46-53-50 and forward a request or requests for the creation of a priority agricultural land area or areas to that county board; or

(b)   Each county council shall conduct a public hearing to determine if there is sufficient public interest to proceed with the declaration of a priority agricultural land area. For those public hearings which determine whether a sufficient level of interest exists, public notice must be limited to an advertisement in a newspaper having general circulation and contain statements as delineated in subsection (B)(1), (2), and (3). If a county council determines there is sufficient public interest to proceed with the declaration of a priority agricultural land area, then the county council shall establish a county


Printed Page 3108 . . . . . Thursday, May 11, 2000

board pursuant to Section 46-53-50 and forward a request or requests for the creation of a priority agricultural land area or areas to that county board. If a county council, after holding a public hearing, determines there is insufficient public interest to proceed with the process of declaring a priority agricultural land area or areas, then the county council shall not establish a priority agricultural land area board; and if subsequent requests are submitted to a county council after a determination of insufficient public interest, the county council shall conduct a public hearing, but not before six months have elapsed since the previous public hearing, to determine if there is sufficient public interest to declare a priority agricultural land area or areas.

(3)   A county priority agricultural land area board is the only entity authorized to consider, establish, declare, or otherwise put into effect a priority agricultural land area.

(4)   A county board is responsible for providing notice and conducting a public hearing on priority agricultural land area or area requests and submitting a proposal for the creation of a priority agricultural land area or areas to its county council in the manner and form as may be prescribed by its county council including wherein a proposed area is situated and a description of a proposed area, including its boundaries. Each county board shall coordinate with a county planning commission, if one exists, with any request, modification, or proposal to create a priority agricultural land area or areas.

(5)   If the land included in a proposal for a priority agricultural land area or areas is situated in more than one local government unit, then the proposal must be submitted and approval of the proposal must be sought from the governing body of each local government unit affected. The governing bodies may cooperate in the review of a proposed priority agricultural land area or areas and may provide joint public notices and a joint public hearing on a proposed priority agricultural land area or areas. A rejection by a governing body of a local government unit shall exclude that portion of a proposal which is situated within the local government unit. However, the rejection does not preclude the approval of the remaining portion of a proposal as a priority agricultural land area by the county council of the other affected local government units, if the approved portion meets all other requirements imposed under this chapter for a priority agricultural land area.

(B)   Notice of a completed proposal must be provided by a county board by publishing a notice in a newspaper having general circulation


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within each proposed priority agricultural land area and by posting such notice in five conspicuous places within, adjacent to, or near each proposed area.

The notice shall contain a:

(1)   statement that a request for the creation of a priority agricultural land area or areas has been filed with the county council pursuant to this chapter;

  (2)   statement that a proposal for a priority agricultural land area or areas will be on file open to public inspection in the office of the local government unit;

(3)   statement that any local government unit encompassing or adjacent to a proposed area, or any landowner who owns land proposed to be included within a proposed area or any landowner with lands adjacent or near to a proposed area who wishes these lands to be included or not included may propose modifications of a proposed area in the form and manner as may be prescribed by the county council;

(4)   statement that a request and proposed modifications will be submitted to the county planning commission and the county board, and that after they are submitted, a public hearing will be held on the request, proposed modifications, and recommendations of the county planning commission and county board; and

(5)   map identifying each proposed priority agricultural land area.

(C)   A county board shall receive all requests for modifications of priority agricultural land area proposals which may be submitted by a planning commission, conservation district, county board, landowner, or local governing body.

(D)(1)   For a county with a county planning commission:

(a)   The county board shall refer requests and proposed modifications to its county planning commission.

(b)   The county planning commission, together with its county board, shall review all requests and proposed modifications. The county planning commission shall report to its county council the potential effect of each request and proposed modifications upon the county's planning policies and objectives, including a request's compliance with the county's comprehensive plan.

(2)   For a county without a county planning commission, the county board shall review all request and any proposed modifications and report to the county council its recommendations concerning any request and proposed modifications.

Section 46-53-70.   (A)   The standards, criteria, and requirements established by the state board for state board approval of county


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programs for purchase of agricultural conservation easements shall include, but are not limited to, the extent to which a county considers and addresses the following when establishing a priority agricultural land area or areas:

(1)   landowner support for designation or inclusion;

(2)   percentage of soils that are suitable for agricultural production;

(3)   percentage of soils classified as prime, unique, or of statewide importance;

(4)   amount of pressure to convert land to nonagricultural production purposes;

(5)   sufficient size to ensure viability of agricultural production;

(6)   existing agricultural production infrastructure investments;

(7)   compatibility with comprehensive and zoning plans; and

(8)   other relative, economic, or unique factors.

(B)   These resource materials must be used in evaluating a priority agricultural land area:

(1)   USDA Natural Resources Conservation Service soil surveys and soil information; and

(2)   other published data, charts, and relevant information recognized by the department and the USDA Natural Resources Conservation Service.

Section 46-53-80.   Upon submission of a report from a county planning commission or, if a county planning commission does not exist, then by a county board, the county board shall hold a public hearing relative to a proposed priority agricultural land area or areas. The county board shall publish a notice of intent to create a priority agricultural land area or areas as specified in Section 46-53-60(B).

Section 46-53-90.   (A)   A county council, upon completion of the procedures and considerations prescribed in Sections 46-53-60, 46-53-70, and 46-53-80, may adopt a proposal or any modification of a proposal the county council deems appropriate, including the inclusion, to the extent feasible, of adjacent viable agricultural and forest lands and the exclusion, to the extent feasible, of nonviable agricultural and forest lands and nonagricultural and forest lands. The existence of utility facilities on a proposed area does not prevent the adoption of the area as a priority agricultural land area and the rights of utilities with respect to the existing facilities must not be disturbed or affected by the adoption. The county council shall act to adopt or reject each proposal and any modification to each proposal.


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(B)   Within ten days of a county council's decision to reject or modify a proposal, the county council shall submit to its county board a written decision stating why each proposal was not adopted or was modified. The written decision shall include a finding of fact, review of the evaluation criteria prescribed in Section 46-53-70, and a discussion of reasons for rejection or modification of a proposal.

(C)   A priority agricultural land area becomes effective upon the adoption of a proposal or its modification by a county council. If a proposal has included land situated in more than one local government unit, the priority agricultural land area or areas only become effective upon adoption by the local government unit or units of that portion of a proposal or proposed modifications as will meet the requirements of a priority agricultural land area provided in this chapter. Subsequent adoption of the remaining portion immediately establishes that portion as a priority agricultural land area.

(D)   After the creation of a priority agricultural land area, a description and map of the area must be on file and maintained by the county board and must be made available to the public.

(E)   The addition of land to a priority agricultural land area may occur at any time during the period provided for in Section 46-53-60.

(F)   Land situated in an existing priority agricultural land area must be removed from that area upon a request by a landowner for it to be removed. Each county board may designate the form of such a request.

Section 46-53-100.   (A)   After the establishment of a priority agricultural land area by a county council, the same county council shall authorize its county board to consider landowners' applications for the purchase of agricultural conservation easements from landowners whose land is within the priority agricultural land area.

(B)   To qualify under this chapter, an agricultural conservation easement is subject to these terms, conditions, restrictions, and limitations:

(1)   The term of an agricultural conservation easement is perpetual except as provided for in item (2).

(2)   Unless authorized in accordance with item (5), an agricultural conservation easement may not be extinguished, leased, encumbered, or restricted in whole or in part for a period of thirty years beginning on the date of purchase of the easement.

(3)   Unless authorized in accordance with item (5), if the land subject to an agricultural conservation easement is no longer viable agricultural land, the current landowner may petition the county, subject to the approval of its county board and its county council, to


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sell, convey, extinguish, lease, encumber, or restrict an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. If state funds were used to purchase an agricultural conservation easement, the state board must also give its approval that the land under easement is no longer viable prior to the county's selling, conveying, extinguishing, leasing, encumbering, or restricting an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. The purchase price must be payable to the county. Any payment received by a county pursuant to this item must be paid into a county account that may be used only for the purpose of purchasing agricultural conservation easements.

(4)   Instruments and documents for the purchase, sale, and conveyance of agricultural conservation easements must be approved by a county board prior to execution and delivery. Proper releases from mortgage holders and lienholders must be obtained and executed to ensure that all agricultural conservation easements are purchased free and clear of all encumbrances.

(5)   Whenever a public entity, authority, or political subdivision exercises the power of eminent domain and condemns land subject to an agricultural conservation easement, the condemner shall provide just compensation to the owner of the land in fee and to the owner of the easement as follows:

(a)   The owner of the land in fee must be paid the full value which would have been payable to the owner but for the existence of an agricultural conservation easement less the value of an agricultural conservation easement at the time of condemnation.

(b)   The owner of the easement must be paid the value of the easement at the time of condemnation.

(6)   An agricultural conservation easement does not prevent:

(a)   The granting of rights-of-way by the owner of the subject land in and through the land for the installation of, transportation of, or use of water, sewage, electric, telephone, telecommunications, gas, oil, or oil products lines.

(b)   Construction and use of structures on the subject land necessary for agricultural production.


Printed Page 3113 . . . . . Thursday, May 11, 2000

(c)   Construction and use of structures on the subject land for a landowner's principal residence or for the purpose of providing necessary housing for seasonal or full-time employees.

(d)   Customary part-time or off-season minor or rural enterprises and activities which are provided for in the County Priority Agricultural Land program approved by the state board pursuant to Section 46-53-40.

(7)   Land subject to an agricultural conservation easement may not be subdivided for any purpose which may harm the viability of the agricultural or forest land for agricultural production. Land may be subdivided prior to the granting of an agricultural conservation easement if subdividing will not harm the viability for agricultural production of the land subject to the easement.

(8)   Nothing in this chapter prohibits a member of the state board or county board or his or her immediate family member from selling an agricultural conservation easement under this program if all decisions made regarding easement purchases are subject to Title 8, Chapter 13.

(9)   Land subject to an agricultural conservation easement must be covered by a conservation plan approved by a Conservation District.

(10)   If an agricultural easement is being purchased on property on which there is an existing lienholder on the property containing the easement, the lienholder also must consent to the purchase of the easement.

(C)   The standards, criteria, and requirements established by the state board for state board approval of a county program for purchasing agricultural conservation easements shall include, but are not limited to, the extent to which a county considers:

(1)   quality of the agricultural and forest lands subject to a proposed easement, including soils classified as prime, unique, or of statewide importance;

(2)   likelihood that the agricultural and forest lands would be converted to nonagricultural production use unless subject to an agricultural conservation easement; areas in the county devoted primarily to agricultural production where development is occurring or is likely to occur in the next twenty years should be identified. For purposes of considering the likelihood of conversion, the existence of a zoning classification of the land is not relevant, but the market for nonagricultural production and forest use or development of agricultural and forest lands is relevant;

(3)   sufficient size to ensure viability of agricultural production or to preserve sensitive environmental areas;


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(4)   proximity of the agricultural and forest lands subject to proposed easements to other agricultural and forest lands in a county which are subject to agricultural conservation easements;

(5)   the stewardship of the land and use of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management;

(6)   ancillary benefits including, but not limited to, enhancement of wildlife habitat, air and water quality, groundwater recharge, preservation of historic or other cultural features and preservation of scenic qualities; and

(7)   fair, equitable, objective, and nondiscriminatory procedures for determining purchase priorities.

(D)   A county board may select from either of these methods of valuation:

(1)   Value may be determined by a numerical point system established by the county board. If a seller disagrees with a county board valuation, a seller has the right to obtain an independent state-certified general real estate appraiser. If a landowner obtains an independent appraiser, the value must be calculated according to the average between the county board's numerical point system and a landowner's appraisal. A landowner's independent appraiser shall establish market value and farm land value in accordance with this chapter.

(2)   Value may be established by an appraisal process where a county board shall retain its county assessor to determine market value and farmland value. If a seller disagrees with the appraisal made by the county assessor, a seller has the right to select and retain a separate independent state-certified general real estate appraiser within thirty days of receipt of the appraisal of the county assessor to determine market value and farmland value. The county board shall establish the agricultural value and the nonagricultural value of the property subject to an agricultural conservation easement. The state board may provide for a periodic review by a state-certified general real estate appraiser of appraisals submitted by counties in order to assure that the appraisals were performed in accordance with the standards of appraisal practice.

(a)   The agricultural value shall equal the sum of:

(i)     the farmland value determined by a seller's appraiser; and

(ii)   one-half of the difference between the farmland value determined by the county assessor and the farmland value determined


Printed Page 3115 . . . . . Thursday, May 11, 2000

by a seller's appraiser if the farmland value determined by the county assessor exceeds the farmland value determined by a seller's appraiser.

(b)   The nonagricultural value shall equal the sum of:

(i)     the market value determined by the county assessor; and

(ii)   one-half of the difference between the market value determined by a seller's appraiser and the market value determined by the county assessor if the market value determined by a seller's appraiser exceeds the market value determined by the county assessor.

(3)   The entire acreage of the agricultural and forest land must be included in the determination of the value of an agricultural conservation easement less the value of any acreage which was subdivided prior to the granting of the easement. A county assessor or a seller's appraiser shall take into account the potential increase in the value of the subdivided acreage because of the placement of the easement on the remaining agricultural and forest land.

(E)   The price paid for purchase of an agricultural conservation easement in perpetuity may not exceed the difference between the nonagricultural value and the agricultural value determined pursuant to subsection (D) of this section at the time of purchase, unless the difference is less than a county board's original appraised value, in which case the county board's original easement value may be offered. The purchase price may be paid in a lump sum, in installments over a period of years, or in any other lawful manner of payment. If payment is to be made in installments or another deferred method, a person selling an easement may receive, in addition to the selling price, interest in an amount or at a rate set forth in the agreement of purchase, and final payment of all money must be made within, and no later than, five years from the date an agricultural conservation easement purchase agreement was fully executed. The county may provide for payments on an installment or other deferred basis and for interest payments by investing its allocation of state money for purchases approved under subsection (F) of this section in securities deposited into an irrevocable escrow account or in another manner provided by law.

(F)   State funds to be used to support county programs shall be disbursed as follows:

(1)   The state board shall disburse thirty-three percent of the total amount of state funds evenly among those counties which have eligible programs. If these funds are not expended by a county within one year of their disbursal, the county must remit the remainder of its allocation to the state board which shall disburse it to the remaining eligible


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counties on a competitive basis using guidelines established by the state board.

(2)   The remaining sixty-seven percent of the total amount of state funds must be disbursed among eligible counties on a competitive basis using guidelines established by the state board.

Section 46-53-110.   Notwithstanding any provision of this chapter, upon approval of the state board a county purchase of development rights program in existence on July 1, 1999, is eligible to receive state funds disbursed in accordance with this chapter.

Section 46-53-120.   (A)   The Priority Agricultural Land Trust Fund of South Carolina is created for the purpose of receiving gifts, grants, contributions, and other proceeds for the purchase of conservation easements in the State. The State Priority Agricultural Land Board is vested with full authority over the administration of the funds deposited in the fund. The State Treasurer is the custodian of the fund and shall invest its assets in an interest-bearing account pursuant to South Carolina law.

(B)   The Priority Agricultural Land Trust Fund may receive appropriations of state general funds, federal funds, donations, gifts, bond issue receipts, securities, and other monetary instruments of value.

(C)   The income received and accruing from the fund must be spent only on the purchase of agricultural conservation easements.

(D)   The proceeds from this fund may be carried forward from year to year and do not revert to the general fund of the State.

Section 46-53-130.   (A)   In conjunction with a county board, any affected municipality, and a county planning commission, if one exists, a county council shall review the status of all priority agricultural land areas created under Section 46-53-90 in accordance with the time frame for the program review section in the South Carolina Local Government Comprehensive Planning Enabling Act of 1994 for the purpose of continuing, modifying, or terminating a priority agricultural area.

(B)   If a municipality annexes land which includes any part of a priority agricultural land area, that portion of the priority agricultural land area that has been annexed may not be terminated except upon a majority vote of the governing body of the municipality.

Section 46-53-140.   (A)   A municipality or political subdivision within which a priority agricultural land area or areas are created shall encourage the continuity, development, and viability of agricultural production within a priority agricultural land area by not enacting local


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laws or ordinances which would unreasonably restrict agricultural production within a priority agricultural land area in contravention of the purposes of this chapter unless the restrictions or ordinances bear a direct relationship to the public health or safety.

(B)   A municipal or political subdivision law or ordinance defining or prohibiting a public nuisance shall exclude from the definition of a nuisance any agricultural production activity within a priority agricultural land area as permitted by this chapter if the agricultural activity or operation does not bear a direct relationship to the public health and safety.

Section 46-53-150.     All state agencies shall encourage the maintenance of viable agricultural production in priority agricultural land areas.

Section 46-53-160.     No political subdivision, authority, public utility, or other body having or exercising powers of eminent domain shall condemn any land within a priority agricultural land area for any purpose without notifying the county board of the county in which the condemnation is to take place.

Section 46-53-170.     The State and political subdivisions of the State may appropriate and expend tax revenues for the public purposes provided by this chapter and, consistent with the requirements of Article X, Sections 13 and 14 of the Constitution of this State, may incur bonded indebtedness for the public purposes of this chapter. However, a county may not impose impact fees to fund the purposes provided for in this chapter or to carry out its duties and responsibilities under this chapter.

Section 46-53-180.     The state board shall submit to the General Assembly an annual report based on each eligible county. The report shall include, but is not limited to, the:

(1)   location of priority agricultural land areas and agricultural conservation easements in the State;

(2)   number of acres throughout the State which are located within priority agricultural land areas;

(3)   number of acres throughout the State which are subject to agricultural conservation easements;

(4)   number of agricultural conservation easements in the State;

(5)   number and value of agricultural conservation easements purchased by the counties including the number and value of purchases made during the preceding fiscal year of the State;

(6)   identity of counties participating in the state program for purchasing agricultural conservation easements;


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(7)   dollar value of the annual appropriation made by counties for the purchase of agricultural conservation easements;

(8)   quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;

(9)   nature, scope, and extent of development activity within the area where agricultural conservation easements have been purchased;

(10)   nature and extent of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management practices, which are practiced on farmlands subject to agricultural conservation easements; and

(11)   total number of recommendations filed by counties for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.

Section 46-53-190.   (A)   In a county where there is a priority agricultural land area, a landowner within that area who seeks to site or expand a permitted animal feeding operation as defined in Title 47 within the priority agricultural land area must satisfy the Department of Health and Environmental Control (DHEC) siting and management regulations for the permitted operation.

A landowner seeking to site an animal feeding operation shall notify homeowners residing on adjoining property within one thousand feet of the facility through certified mail. The applicant must use a notice of intent form provided by DHEC. This notice of intent must advise adjoining homeowners residing on adjoining property of the producer's intent to build an animal facility and that they can send comments on the proposed animal facility directly to DHEC. DHEC shall review all comments received. If DHEC determines significant comment exists, a meeting must be held to discuss and seek resolution to the concerns prior to a permit decision being made. All persons who have submitted written comments must be invited in writing to the meeting. Certified mail to the address of a person to be notified must be used by DHEC for the meeting invitation. Agreement of the parties is not required for DHEC to make a permit decision.

A landowner who seeks to expand a permitted animal feeding operation is not required to provided further notification for expansion.

(B)   A county ordinance pertaining to the siting or management of animal feeding operations may not exceed the requirements of DHEC regulations for an operation located within a priority agricultural land area.


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Section 46-53-200.     If the property, or any portion of the property, has been designated as a priority agricultural land area, the landowner, within six months of the land being included within the priority agricultural land area, shall submit an affidavit to the register of deeds which includes the property description and tax map number and states that the property, or a portion of the property, has been designated as a priority agricultural land area.

Section 46-53-210.   The department shall promulgate regulations necessary to promote the efficient, uniform, and statewide administration of this chapter."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS explained the amendment.

The amendment was adopted.

Amendment No. 167A

Senators MATTHEWS, WASHINGTON and HUTTO proposed the following Amendment No. 167A (4775R182.JWM), which was adopted (#57):

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

/                     SECTION   ___.
TO AMEND CHAPTER 3, TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 8, SO AS TO PROVIDE FOR THE EXPENDITURE OF STATE AND FEDERAL FUNDS BY THE STATE OFFICE OF LOCAL GOVERNMENT, WHICH IS CREATED FROM SEVERAL OFFICES OF STATE GOVERNMENT; TO PROVIDE THAT STATE AND FEDERAL FUNDS BE DISTRIBUTED BY A GRANTS PROGRAM FOR LOCAL GOVERNMENTS; TO PROVIDE THAT FUNDS ALLOCATED TO THE LOCAL GOVERNMENT OFFICE SHALL ONLY BE USED FOR PURPOSES OF THIS ARTICLE; TO PROVIDE FOR THE POWERS, DUTIES, AND FUNCTIONS OF THE STATE OFFICE OF LOCAL GOVERNMENT; TO PROVIDE THAT THE GOVERNOR APPOINT THE DIRECTOR OF THE STATE OFFICE OF LOCAL GOVERNMENT WITH THE ADVICE AND CONSENT OF THE SENATE; AND TO PROVIDE THAT THE DIRECTOR MAY BE REMOVED FOR CAUSE UNDER CERTAIN CIRCUMSTANCES.


Printed Page 3120 . . . . . Thursday, May 11, 2000

A.   Chapter 3, Title 1 of the 1976 Code is amended by adding:

  "Article 8

State Office of Local Government

Section 1-3-510.     (A)   The State Office of Local Government is established as an administrative agency of state government which is comprised of the State Office of Local Government, formerly provided for in the Budget and Control Board and the Division of Regional Development, pursuant to Chapter 42 of Title 11.

(B)   The functions, powers, duties, responsibilities, and authority statutorily exercised by the Office of Local Government and the Division of Regional Development existing on the effective date of this act are transferred to and devolved upon the State Office of Local Government together with all assets, liabilities, records, property, personnel, unexpended appropriations, and other funds. All rules, regulations, standards, orders, or other actions of these entities shall remain in effect unless specifically changed or voided by the office in accordance with the Administrative Procedures Act, or as otherwise provided.

Section 1-3-520.   (A)   The Governor shall appoint the director of the Office of Local Government with the advice and consent of the Senate. The director shall report to the Governor and shall be independent of any other state agency. The director shall receive such compensation as may be established under the provisions of Section 8-11-160 and for which funds have been authorized in the annual general appropriation act. The director may only be removed by an executive order of the Governor pursuant to the provisions of Section 1-3-240(C), with the consent of the Senate.

(B)   The director must administer the affairs of the department and must represent the department in its dealings with other state agencies, local governments, special purpose districts, and the federal government. The director must employ such personnel and prescribe their duties, powers, and functions as he considers necessary and as may be authorized by statute and for which funds have been authorized in the annual general appropriation act. The director may also contract for any services necessary for the efficient operation of the office.

(C)   The personnel employed by the Office of Local Government shall serve at the pleasure of the director.

Section 1-3-530.     The Office of Local Government is responsible for certifying grants to local governments from both federal and state funds. The office shall establish criteria, eligibility guidelines and procedures which local and regional governments must follow when


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applying for grants. The director shall publish a list of all grants available to local and regional governments through the office and shall make annual reports to the General Assembly and the Governor. The annual reports shall contain information concerning the amount of funds available from both federal and state sources, request for grants and the status of the requests, a list of grant recipients including dollar amounts awarded and amount of local match required for the grant.

Section 1-3-540.     (A)   Grant funds received by a county, municipality, political subdivision, or other entity from the Office of Local Government must be deposited in a separate fund and may not be commingled with other funds, including other grant funds. Disbursements may be made from this fund only upon the written authorization of the individual who signed the grant application filed with the office, or his successor, and only for the purposes specified in the grant application. A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined five thousand dollars or imprisoned for six months, or both.

(B)   It is not a defense to an indictment alleging a violation of this section that grant funds received from the Office of Local Government were used by a grantee or subgrantee for governmental purposes other than those specified in the grant application or that the purpose for which the grant was made by the Office of Local Government was accomplished by funds other than grant funds.

(C)   The Office of Local Government shall furnish a copy of this section to a grantee when the grant is awarded.

Section 1-3-550.     Notwithstanding any other provision of law, the funds appropriated and allocated by the General Assembly for the Office of Local Government shall only be used for the purposes of this article unless otherwise directed by an act of the General Assembly.

B.   This act takes effect upon approval by the Governor.         /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

ACTING PRESIDENT PRESIDES

At 9:55 P.M., Senator REESE assumed the Chair.


Printed Page 3122 . . . . . Thursday, May 11, 2000

Amendment No. 224

Senator FAIR proposed the following Amendment No. 224 (BBM/9629HTC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, by adding an appropriately numbered SECTION at the end to read:

  / SECTION ___

TO AMEND SECTION 12-6-5060, AS AMENDED, OF THE 1976 CODE, RELATING TO VOLUNTARY CONTRIBUTIONS MADE BY DESIGNATIONS ON SOUTH CAROLINA INDIVIDUAL INCOME TAX RETURNS, SO AS TO PROVIDE A CONTRIBUTION DESIGNATION FOR EMERGENCY MEDICAL SERVICES IN THE COUNTY WHERE THE TAXPAYER RESIDES.

A.   Section 12-6-5060(A) of the 1976 Code, as last amended by Act 99 of 1999, is further amended to read:

"(A)   Each taxpayer required to file a state individual income tax return may contribute to the Nongame Wildlife and Natural Areas Program Fund, the Children's Trust Fund of South Carolina as created by Section 20-7-5010, or the Eldercare Trust Fund of South Carolina as created by Section 43-21-160, or the First Steps to School Readiness Fund as created by Section 20-7-9740, or to county emergency medical services (EMS) programs by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated. Amounts contributed for EMS services must be remitted to the taxpayer's county of residence and used exclusively for emergency medical services. Where county residency cannot be determined, or the taxpayer is a nonresident, that taxpayer's contribution must be distributed to counties in the proportion that each county receives of the total contributions."

B.   This section takes effect July 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 236

Senators MATTHEWS and HUTTO proposed the following Amendment No. 236 (4775R185.JWM), which was adopted (#58):


Printed Page 3123 . . . . . Thursday, May 11, 2000

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

/   SECTION   ___.

TO AMEND SECTION 44-56-170, AS AMENDED, OF THE 1976 CODE, RELATING TO THE HAZARDOUS WASTE CONTINGENCY FUND, SO AS TO FURTHER PROVIDE FOR THE MANNER IN WHICH FUNDS FROM FEES COLLECTED FROM HAZARDOUS WASTE DISPOSAL ARE DISTRIBUTED AND TO REPEAL SUBSECTION C., SECTION 63, PART II, ACT 100 OF 1999.

A.   Section 44-56-170(F) of the 1976 Code is amended to read:

"(F)(1)     There is imposed a fee of ten dollars a ton on the incineration of hazardous waste in this State whether the waste was generated within or outside of this State. Fees imposed by this subsection must be collected by the facility at which it is incinerated and remitted to the State Treasurer to be placed into a fund separate and distinct from the state general fund entitled `Hazardous Waste Fund County Account'.

(2)(a)   This fee must be credited to the benefit of the county where the incineration of the hazardous waste generating the fee occurred. If the amount of funds credited to a particular county exceeds five hundred thousand dollars annually, the excess over five hundred thousand dollars must be credited to the general fund of the State.

(b)   Effective July 1, 2000, the provisions of subitem (a) shall no longer be effective and the fee must be allocated in the following manner: fifty percent to the county where the incineration of the hazardous waste generating the fee occurred and fifty percent to the general fund of the State.

(3)   Funds in each county's account must be released by the State Treasurer upon the written request of a majority of the county's legislative delegation and used for infrastructure within the economically depressed area of that county.

(4)(a)   For purposes of this subsection, `county legislative delegation' includes only those members who represent the economically depressed areas of the county.

(b)   For purposes of this subsection, `incineration' includes hazardous waste incinerators, boilers, and industrial furnaces.

(c)   For the purpose of this subsection `infrastructure' means improvements for water, sewer, gas, steam, electric energy, and communication services made to a building or land which are


Printed Page 3124 . . . . . Thursday, May 11, 2000

considered necessary, suitable, or useful to an eligible project. These improvements include, but are not limited to:

(1 i)   improvements to both public water and sewer systems;

(2 ii)   improvements to public electric, natural gas, and telecommunication systems; and

(3 iii)   fixed transportation facilities including highway, road, rail, water, and air."

B.     For purposes of Section 44-56-170(F), the phrase `economically depressed area of that county' means:

(1)   within Orangeburg County, the entire area of the county;

(2)   within Dorchester County, the area comprising School District 4; and

(3)   for any other county, an area designated by the county governing body.

C.     Subsection C. of SECTION 63 of Part II, Act 100 of 1999 is repealed.

D.   This section takes effect July 1, 2000.     /

Renumber sections to conform.

Amend title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

Amendment No. 249A

Senators MATTHEWS and HUTTO proposed the following Amendment No. 249A (4775R216.JWM), which was adopted (#59A):

Amend the bill, as and if amended, Part IA, Section 23A, South Carolina State University, page 221, by adding after line 16 the following:

COLUMN 7     COLUMN 8

/   S.C. State University - PSA

1890 Leadership Institution

/Regulatory & Public Service       122,000     122,000   /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.


Printed Page 3125 . . . . . Thursday, May 11, 2000

Amendment No. 239

Senator RANKIN proposed the following Amendment No. 239 (3935M00.DOC), which was adopted (#60):

(Reference is the Senate Finance Committee Report)

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

  / SECTION __

TO AMEND SECTION 48-1-230 OF THE 1976 CODE, RELATING TO DISPOSITION OF FUNDS BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, SO AS TO AUTHORIZE THE DEPARTMENT TO RETAIN TWO HUNDRED FIFTY THOUSAND DOLLARS FROM FINES IMPOSED PURSUANT TO THIS ACT FOR STORMWATER AND CRITICAL AREAS PERMITTING AND REGULATION.

Section 48-1-230 of the 1976 Code is amended to read:

"Section 48-1-230.   Any funds appropriated to or received by the department shall be deposited in the State Treasury as provided by law; however, the department may retain two hundred fifty thousand dollars from fines imposed pursuant to this chapter for stormwater and critical areas permitting and regulation. Such Funds shall must be paid out on warrants issued by the State as prescribed by law, but only on order of the authorized representatives of the department and in accordance with an annual budget or amendments thereto to the budget approved by the department at an official meeting, such order being the authority of the proper fiscal officials of the State for making payment./

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

Amendment No. 250

Senators MARTIN, RYBERG, MARTIN, LEATHERMAN, GIESE, WILSON, WALDREP, BRANTON, GROOMS, PEELER, BAUER, RICHARDSON, COURSON, ALEXANDER, FAIR, THOMAS, RUSSELL, MESCHER and GREGORY proposed the following Amendment No. 250 (9613HTC00.DOC), which was ruled out of order:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, by adding an appropriately numbered SECTION at the end to read:


Printed Page 3126 . . . . . Thursday, May 11, 2000

  / SECTION __

TO AMEND THE 1976 CODE BY ADDING SECTION 41-7-75 SO AS TO REQUIRE THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION TO ENSURE COMPLIANCE WITH THE PROVISIONS OF CHAPTER 7, TITLE 41, CONCERNING "THE RIGHT TO WORK" AND TO AUTHORIZE CERTAIN POWERS AND IMPART DUTIES TO CARRY THIS OUT; BY ADDING SECTION 41-7-100 SO AS TO ESTABLISH PENALTIES FOR VIOLATIONS OF CHAPTER 7, TITLE 41, AND TO REQUIRE THE DIRECTOR TO PROMULGATE REGULATIONS ESTABLISHING PROCEDURES FOR ADMINISTRATIVE REVIEW OF PENALTIES ASSESSED; TO AMEND SECTION 41-7-30 RELATING TO PROHIBITING AN EMPLOYER FROM REQUIRING OR PROHIBITING MEMBERSHIP IN A LABOR ORGANIZATION AS A CONDITION OF EMPLOYMENT SO AS TO INCLUDE IN THE PROHIBITION AN AGREEMENT OR PRACTICE THAT HAS THE EFFECT OF REQUIRING SUCH MEMBERSHIP AND TO PROHIBIT A LABOR ORGANIZATION FROM INDUCING AN EMPLOYER TO VIOLATE THIS SECTION; TO AMEND SECTION 41-7-40 RELATING TO THE AUTHORITY TO DEDUCT LABOR ORGANIZATION MEMBERSHIP DUES FROM WAGES SO AS TO AUTHORIZE SUCH DEDUCTION IF AN EMPLOYEE ENTERS A WRITTEN AGREEMENT AUTHORIZING THE DEDUCTION; TO AMEND SECTION 41-7-90 RELATING TO REMEDIES FOR VIOLATIONS OF RIGHTS SO AS TO CREATE A PRIVATE CAUSE OF ACTION ON BEHALF OF AN EMPLOYEE AGGRIEVED BY VIOLATIONS OF THIS CHAPTER; AND TO PROVIDE FOR THE IMPLEMENTATION AND ENFORCEMENT OF THIS ACT BY FUNDS APPROPRIATED TO THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION FOR FISCAL YEAR 2000-2001 IN PART IB, SECTION 50 OF THIS ACT.

A.   The 1976 Code is amended by adding:

"Section 41-7-75.   (A)   The Director of the South Carolina Department of Labor, Licensing and Regulation or his designee shall ensure compliance with this chapter and shall cooperate with an employee in the investigation and enforcement of a meritorious claim against an employer. Hearings may be held to satisfy the director as to the justice of any claim.


Printed Page 3127 . . . . . Thursday, May 11, 2000

(B)   The Director of the Department of Labor, Licensing and Regulation or his designee may enter a place of employment for the purpose of evaluating compliance with this chapter. Any effort of a person or entity to obstruct the director or his designee in the performance of duties under this chapter are a violation of this chapter and punishable accordingly.

(C)   If the director or his designee is denied admission to a place of employment, a warrant may be obtained pursuant to Section 41-15-260."

B.   The 1976 Code is amended by adding:

"Section 41-7-100.   (A)   A person who violates the provisions of this chapter may be assessed by the Director of the Department of Labor, Licensing and Regulation a civil penalty of not more than one hundred dollars for each offense.

(B)   The director shall promulgate regulations establishing procedures for administrative review of civil penalties assessed under this chapter."

C.   Section 41-7-30 of the 1976 Code is amended to read:

"Section 41-7-30.   (A)   It shall be is unlawful for any an employer to require an employee, as a condition of employment, or of continuance of employment to:

(1)   To require any employee, as a condition of employment, or of continuance of employment, to be or become or remain a member or affiliate of any a labor organization or agency;

(2)   To require any employee, as a condition of employment, or of continuance of employment, to abstain or refrain from membership in any a labor organization; or

(3) To require any employee, as a condition of employment, or of continuance of employment, to pay any fees, dues, assessments, or other charges or sums of money whatsoever to any a person or organization.

(B)   It is unlawful for a person or a labor organization to directly or indirectly participate in an agreement, arrangement, or practice that has the effect of requiring, as a condition of employment, that an employee be, become, or remain a member of a labor organization or pay to a labor organization any dues, fees, or any other charges; such an agreement is unenforceable.

(C)   It is unlawful for a person or a labor organization to induce, cause, or encourage an employer to violate a provision of this section."

D.   Section 41-7-40 of the 1976 Code is amended to read:


Printed Page 3128 . . . . . Thursday, May 11, 2000

"Section 41-7-40.   Nothing in this chapter shall preclude any precludes an employer from deducting from the wages of the employees and paying over to any a labor organization, or its authorized representative, membership dues in a labor organization; provided, that however, the employer has must have received from each employee, on whose account such the deductions are made, a written assignment which shall not only may be irrevocable for a period of more than one year, or beyond until the termination date of any applicable collective agreement or assignment, whichever occurs sooner."

E.   Section 41-7-90 of the 1976 Code is amended to read:

"Section 41-7-90.   (A)   A person who may be caused to be denied or denied employment or be deprived of continuation of employment through force, intimidation, obstruction, interference, or threat of these or in violation of this chapter is entitled to recover from the employer and from any other person, firm, corporation, or association by appropriate action in the courts of this State such damages as the person may have sustained by reason of the denial or deprivation of employment including, in the discretion of the court or jury, punitive damages in addition to the actual damages.

(B)   Any A person whose rights are adversely affected by any a contract, agreement, assemblage, or other act or thing done or threatened to be done and declared to be unlawful or prohibited by this chapter shall have has the right to apply to any a court having general equity jurisdiction for appropriate relief. The court, in any such proceeding, may grant and issue such restraining, and other, orders as may be appropriate, including an injunction restraining and enjoining the performance, continuance, maintenance, or commission of any such contract, agreement, assemblage, act or thing, and may determine and award, as justice may require, any actual damages, costs, and attorneys' fees which have been sustained or incurred by any a party to the action, and, in the discretion of the court or jury, punitive damages in addition to the actual damages. The provisions of this section are cumulative and are in addition to all other remedies now or hereafter provided by law."

F.   The Department of Labor, Licensing, and Regulation, from funds appropriated to it for its operations in fiscal year 2000-2001 in Part IA, SECTION 50 of this act, shall implement and enforce the provisions of this section. /

Renumber sections to conform.

Amend sections, totals and title to conform.


Printed Page 3129 . . . . . Thursday, May 11, 2000

Point of Order

Senator LAND raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senators RYBERG and FORD spoke on the Point of Order.

The ACTING PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Amendment No. 255

Senator McCONNELL proposed the following Amendment No. 255 (21397SD00.DOC), which was adopted (#61):

(Reference is the Senate Finance Committee Report)

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

  / SECTION _______

TO AMEND THE 1976 CODE BY ADDING SECTION 54-7-110 SO AS TO PROVIDE THAT THE HUNLEY COMMISSION AND THE SOUTH CAROLINA EDUCATIONAL TELEVISION COMMISSION IN ANY FILM EITHER MAKES RELATING TO THE HUNLEY INCLUDING, BUT NOT LIMITED TO, THE RECOVERY OF THE HUNLEY WHICH IS FURNISHED TO ANOTHER PARTY FOR OTHER THAN A CONTRACTUAL FEE SHALL INSERT IN APPROPRIATE PLACES AT THE BOTTOM AND END OF THE FILM A SPECIFIED CAPTION.

The 1976 Code is amended by adding:

"Section 54-7-110.   The Hunley Commission and the South Carolina Educational Television Commission on any film either makes relating to H. L. Hunley including, but not limited to, the recovery of the Hunley which is furnished to another party for other than a contractual fee shall insert in appropriate places at the bottom and end of the film a caption stating that the film taken by the Hunley Commission or the Educational Television Commission is 'Provided courtesy of the Hunley Commission or the South Carolina Educational Television Commission and any person interested in making a donation for the preservation and exhibition of the Hunley may send it to The Hunley Commission, Post Office Box 142, Columbia, South Carolina 29202'."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator McCONNELL explained the amendment.


Printed Page 3130 . . . . . Thursday, May 11, 2000

Senator DRUMMOND moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 268

Senators LEVENTIS and GIESE proposed the following Amendment No. 268 (12117AC00.DOC), which was adopted (#62):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

  /SECTION ____

TO AMEND THE 1976 CODE BY ADDING SECTION 37-2-307 SO AS TO REQUIRE MOTOR VEHICLE DEALERS CHARGING CLOSING FEES ON SALES CONTRACTS TO PAY A ONCE YEARLY REGISTRATION FEE TO THE DEPARTMENT OF CONSUMER AFFAIRS AND TO REQUIRE CLOSING COSTS TO BE DISCLOSED IN ADVERTISED CAR PRICES AND IN THE SALES CONTRACT AND TO BE DISPLAYED IN THE DEALERSHIP.

"Section 37-2-307.     Every motor vehicle dealer charging closing fees on a motor vehicle sales contract shall pay a one-time registration fee of ten dollars during each state fiscal year to the Department of Consumer Affairs. The closing fee must be included in the advertised price of the motor vehicle, disclosed on the sales contract, and displayed in a conspicuous location in the motor vehicle dealership."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

The amendment was adopted.

Amendment No. 174

Senators PATTERSON and PASSAILAIGUE proposed the following Amendment No. 174 (18440SOM00.DOC), which was adopted (#63):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered section to read:

  / SECTION __


Printed Page 3131 . . . . . Thursday, May 11, 2000

TO AMEND SECTION 24-3-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISPOSITION OF WAGES OF A PRISONER ALLOWED TO WORK AT PAID EMPLOYMENT, SO AS TO PROVIDE THAT THE MONIES DEPOSITED WITH THE STATE TREASURER IN A SPECIAL ACCOUNT TO SUPPORT VICTIM ASSISTANCE PROGRAMS MUST BE DEPOSITED IN A SPECIAL ACCOUNT FOR THE USE OF THE STATE OFFICE OF VICTIM ASSISTANCE TO PROVIDE VICTIM COMPENSATION, PROGRAM DEVELOPMENT, TRAINING, AND ADMINISTRATIVE SUPPORT; TO AMEND SECTIONS 14-1-206, 14-1-207, AND 14-1-208, ALL AS AMENDED, ALL RELATING TO ASSESSMENTS IN GENERAL SESSIONS, FAMILY, MAGISTRATES, AND MUNICIPAL COURT, SO AS TO PROVIDE FOR ADDITIONAL INFORMATION TO BE PROVIDED FOR THE COUNTY OR MUNICIPALITY, AS APPLICABLE, IN A SUPPLEMENTARY SCHEDULE OF THE ANNUAL EXTERNAL AUDIT; AND TO AMEND SECTION 14-1-211, AS AMENDED, RELATING TO A SURCHARGE IN GENERAL SESSIONS COURT, SO AS TO PROVIDE FOR ADDITIONAL INFORMATION TO BE PROVIDED FOR THE COUNTY IN A SUPPLEMENTARY SCHEDULE BY THE ANNUAL EXTERNAL AUDIT.

A.   Section 24-3-40(A)(2) of the 1976 Code, as last amended by Act 68 of 1999, is further amended to read:

"(2)   If restitution to a particular victim or victims has not been ordered by the court, or if court-ordered restitution to a particular victim or victims has been satisfied, then the twenty percent referred to in subsection (1) must be placed on deposit with the State Treasurer for credit to a special account to support victim assistance programs established pursuant to the Victims of Crime Act of 1984, Public Law 98-473, Title II, Chapter XIV, Section 1404, if the prisoner is engaged in work at paid employment in the community. If the prisoner is employed in a prison industry program, then the twenty percent referred to in subsection (1) must be applied to the South Carolina Victims Compensation Fund directed to the State Office of Victim Assistance for use in training, program development, victim compensation, and general administrative support pursuant to Section 16-3-1410."

B.     Section 14-1-206(E)(1) of the 1976 Code, as last amended by Act 105 of 1999, is further amended to read:


Printed Page 3132 . . . . . Thursday, May 11, 2000

"(1)   To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:

(a)   all fines collected by the clerk of court for the court of general sessions;

(b)   all assessments collected by the clerk of court for the court of general sessions;

(c)   the amount of fines retained by the county treasurer;

(d)   the amount of assessments retained by the county treasurer; and

(e)   the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and

(f)   the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

C.     Section 14-1-207(E)(1) of the 1976 Code, as last amended by Act 105 of 1999, is further amended to read:

"(1)   To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:

(a)   all fines collected by the magistrate's court;

(b)   all assessments collected by the magistrate's court;

(c)   the amount of fines retained by the county treasurer;

(d)   the amount of assessments retained by the county treasurer; and

(e)   the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and

(f)   the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

D.   Section 14-1-208(E)(1) of the 1976 Code, as last amended by Act 105 of 1999, is further amended to read:

"(1)   To the extent that records are made available in the format determined pursuant to subsection (E)(4), the supplementary schedule must include the following elements:

(a)   all fines collected by the clerk of court for the municipal court;

(b)   all assessments collected by the clerk of court for the municipal court;

(c)   the amount of fines retained by the municipal treasurer;


Printed Page 3133 . . . . . Thursday, May 11, 2000

(d)   the amount of assessments retained by the municipal treasurer; and

(e)   the amount of fines and assessments remitted to the State Treasurer pursuant to this section.; and

(f)   the total funds, by source, allocated to victim services activities, how those funds were expended, and any balances carried forward."

E.     Section 14-1-211(D)(1) of the 1976 Code, as last amended by Act 105 of 1999, is further amended to read:

"(1)   The supplementary schedule must include the following elements:

(a)   all surcharges collected by the clerk of court for the general sessions, magistrate's, or municipal court;

(b)   the amount of surcharges retained by the city or county treasurer pursuant to this section; and

(c)   the amount of funds allocated to victim services by fund source.; and

(d)   how those funds were expended, and any carry forward balances." /

Renumber sections to conform.

Amend title to conform.

Senator LAND moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 269

Senator PASSAILAIGUE proposed the following Amendment No. 269 (DKA\3891MM00), which was tabled:

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

  / SECTION __

TO AMEND THE 1976 CODE BY ADDING SECTION 9-11-43 SO AS TO REQUIRE EVERY STATE AGENCY EMPLOYING PERSONS TO PERFORM THE FUNCTIONS OF LAW ENFORCEMENT OFFICERS TO APPLY FOR ADMISSION TO THE POLICE OFFICERS' RETIREMENT SYSTEM.

Article 1, Chapter 11, Title 9 of the 1976 Code is amended by adding:

"Section 9-11-43.   Notwithstanding the provisions of Section 9-11-40(1)(a), every state agency employing persons to perform the


Printed Page 3134 . . . . . Thursday, May 11, 2000

functions of law enforcement officers as defined in Section 23-6-400(D)(1) shall apply to the board for admission to the system. The application must be filed with the board no later than November 15, 2000." /

Renumber sections to conform.

Amend title to conform.

Senator LAND spoke on the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 278

Senators McCONNELL and THOMAS proposed the following Amendment No. 278 (3948MM00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

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

  / SECTION __

TO AMEND ARTICLE 1, CHAPTER 21, TITLE 59 OF THE 1976 CODE BY ADDING SECTION 59-21-180 SO AS TO PROVIDE FOR THE APPROPRIATION TO AND DISTRIBUTION OF STATE FUNDS FOR LOCAL SCHOOL DISTRICT SALARY AND BENEFITS SUPPLEMENTS.

Article 1, Chapter 21, Title 59 of the 1976 Code is amended by adding:

"Section 59-21-180.   State funds appropriated by the General Assembly for school district salary supplements and benefits supplements must be allocated to individual school districts based on the Education Finance Act formula. A local match is not required." /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator McCONNELL explained the amendment.

PRESIDENT PRESIDES

At 10:20 P.M., the PRESIDENT assumed the Chair.

Senator McCONNELL continued arguing in favor of the adoption of the amendment.


Printed Page 3135 . . . . . Thursday, May 11, 2000

Senator SETZLER moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 19; Nays 17

AYES

Anderson                  Bryan                     Drummond
Ford                      Glover                    Hayes
Hutto                     Jackson                   Land
Leventis                  Matthews                  Moore
Patterson                 Rankin                    Reese
Setzler                   Short                     Waldrep
Washington

Total--19

NAYS

Alexander                 Bauer                     Branton
Giese                     Gregory                   Grooms *
Martin                    McConnell                 Mescher
Passailaigue              Peeler                    Ravenel *
Richardson                Russell                   Ryberg
Thomas                    Wilson

Total--17

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was laid on the table.

Amendment No. 294

Senator PASSAILAIGUE proposed the following Amendment No. 294 (9624HTC00.DOC), which was adopted (#64):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, by adding an appropriately numbered SECTION at the end to read:


Printed Page 3136 . . . . . Thursday, May 11, 2000

  / SECTION ___

TO AMEND SECTION 12-43-220, AS AMENDED, OF THE 1976 CODE, RELATING TO THE CLASSIFICATION OF PROPERTY AND APPLICABLE ASSESSMENT RATIOS FOR PURPOSES OF PROPERTY TAX, SO AS TO PROVIDE THAT THE FIVE PERCENT ASSESSMENT RATIO APPLICABLE TO COMMERCIAL FISHING BOATS LICENSED BY THE DEPARTMENT OF NATURAL RESOURCES EXTENDS TO BOATS ON OR FROM WHICH COMMERCIAL FISHING EQUIPMENT LICENSED BY THAT DEPARTMENT IS USED.

A.   Section 12-43-220(f) of the 1976 Code is amended to read:

"(f)   Except as specifically provided by law all other personal property shall must be taxed on an assessment of ten and one-half percent of fair market value of such the property except that commercial fishing boats shall must be taxed on an assessment of five percent of fair market value. As used in this item 'commercial fishing boats' shall mean means boats used exclusively for commercial fishing, shrimping, or crabbing and (1) licensed by the Department of Natural Resources, or (2) on or from which is used commercial fishing equipment licensed by, the Department of Natural Resources which are used exclusively for commercial fishing, shrimping, or crabbing."

B.   This section applies for property tax years beginning after 1999. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

The amendment was adopted.

Amendment No. 307A

Senators LEVENTIS, MOORE, COURSON and HUTTO proposed the following Amendment No. 307A (4775R054.PPL), which was adopted (#65A):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  /     SECTION _____

TO ENACT THE "ATLANTIC INTERSTATE LOW-LEVEL RADIOACTIVE WASTE COMPACT IMPLEMENTATION ACT" INCLUDING PROVISIONS TO AMEND TITLE 48, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 46, SO AS TO PROVIDE A STATUTORY BASIS FOR SOUTH


Printed Page 3137 . . . . . Thursday, May 11, 2000

CAROLINA'S MEMBERSHIP IN THE ATLANTIC LOW-LEVEL RADIOACTIVE WASTE COMPACT; TO SPECIFY CONDITIONS PRECEDENT TO SOUTH CAROLINA'S MEMBERSHIP; TO AUTHORIZE AND DIRECT PROCEDURES AND POLICIES NECESSARY TO ACHIEVE STATE OBJECTIVES WITH RESPECT TO THE COMPACT, INCLUDING STATE APPROVAL OF DISPOSAL RATES AND PROCEDURES FOR IDENTIFYING ALLOWABLE OPERATING COSTS SO AS TO DETERMINE REVENUES DUE TO THE STATE FOR LOW-LEVEL RADIOACTIVE WASTE DISPOSAL; TO PROVIDE DIRECTIVES FOR APPOINTING THE STATE'S COMMISSIONERS TO THE COMPACT COMMISSION AND GUIDING THE COMMISSIONERS ON STATE POLICIES; AND TO INCORPORATE BY REFERENCE THE NORTHEAST INTERSTATE LOW-LEVEL RADIOACTIVE WASTE MANAGEMENT COMPACT; TO AMEND SECTION 13-7-30, AS AMENDED, RELATING TO VARIOUS DUTIES OF THE BUDGET AND CONTROL BOARD INCLUDING DUTIES PERTAINING TO ASSESSMENTS, SURCHARGES, AND PENALTY CHARGES ON NONSITED WASTE RECEIVED AT THE REGIONAL DISPOSAL FACILITY SO AS TO DELETE THESE PROVISIONS; TO PROVIDE FOR INTERIM DISPOSAL RATES OF LOW-LEVEL RADIOACTIVE WASTE DISPOSED AT ANY REGIONAL FACILITY IN THIS STATE; AND TO REPEAL CHAPTER 48, TITLE 48 RELATING TO THE MANAGEMENT AND DISPOSAL OF LOW-LEVEL RADIOACTIVE WASTE.

Whereas, the Atlantic Interstate Low-Level Radioactive Waste Compact (Atlantic Compact), currently consisting of the states of Connecticut and New Jersey, was created in response to a federal law that encourages states to form interstate compacts for the disposal of low-level radioactive waste and allows them to restrict the amount of out-of-region waste received; and

Whereas, the Atlantic Compact and South Carolina have agreed that South Carolina's membership in the compact would achieve certain objectives important to both the current member states and to South Carolina; and

Whereas, membership by South Carolina in the Atlantic Compact will empower the State to control access to the state's low-level radioactive waste disposal facility located in Barnwell County by waste generators outside the compact region. Now, therefore,

A.   Title 48 of the 1976 Code is amended by adding:


Printed Page 3138 . . . . . Thursday, May 11, 2000

  "CHAPTER 46

Atlantic Interstate Low-Level Radioactive Waste Compact

Implementation Act

Section 48-46-10.     This chapter may be cited as the 'Atlantic Interstate Low-Level Radioactive Waste Compact Implementation Act'.

Section 48-46-20.     The purpose of this act is to establish South Carolina as a member of the Atlantic Low-Level Radioactive Waste Compact, known in federal statute as the 'Northeast Interstate Low-Level Radioactive Waste Management Compact' and to authorize and direct specific processes and procedures that are necessary to implement South Carolina's responsibilities in the compact.

Section 48-46-30.     As used in this chapter, unless the context clearly requires a different construction:

(1)   'Allowable costs' means costs to a disposal site operator of operating a regional disposal facility. These costs are limited to costs determined by standard accounting practices and regulatory findings to be associated with facility operations.   (2)   'Atlantic Compact' means the Northeast Interstate Low-Level Radioactive Waste Management Compact as defined in the 'Omnibus Low-Level Radioactive Waste Compact Consent Act of 1985', Public Law 99-240, Title II. Use of the term 'Atlantic Compact' does not change in any way the substance of and is to be considered identical to the Northeast Interstate Low-Level Radioactive Waste Management Compact.

(3)   'Atlantic Compact Commission' or 'compact commission' means the governing body of the Atlantic Compact, consisting of voting members appointed by the governors of Connecticut, New Jersey, and South Carolina.

(4)   'Board' means the South Carolina Budget and Control Board or its designated official.

(5)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board (beneficiary), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.

(6)   'Disposal rates' means the price paid by customers of a regional disposal facility for disposal of waste, including any price schedule or breakdown of the price into discrete elements or cost components.


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(7)   'Extended care maintenance fund' means the 'escrow fund for perpetual care' that is used for custodial, surveillance, and maintenance costs during the period of institutional control and any post-closure observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site as provided for in Section 13-7-30(4).

(8) 'Facility operator' means a public or private organization, corporation, or agency that operates a regional disposal facility in South Carolina.

(9)'Generator' means a person, organization, institution, private corporation, and government agency that produces Class A, B, or C radioactive waste.

(10)   'Maintenance' means active maintenance activities as specified by the Department of Health and Environmental Control, including pumping and treatment of groundwater and the repair and replacement of disposal unit covers.

(11)   'Nonregional generator' means a waste generator who produces waste within a state that is not a member of the Atlantic Compact, whether or not this waste is sent to facilities located within the Atlantic Compact region for purposes of consolidation, treatment, or processing for disposal.

(12)   'Nonregional waste' means waste produced by a nonregional generator.

(13)   'Person' means an individual, corporation, business enterprise, or other legal entity, either public or private, and expressly includes states.

(14)   'Price schedule' means disposal rates.

(15)   'PSC' means the South Carolina Public Service Commission.

(16)   'Receipts' means the total amount of money collected by the site operator for waste disposal over a given period of time.

(17)   'Regional disposal facility' means a disposal facility that has been designated or accepted by the Atlantic Compact Commission as a regional disposal facility.

(18)   'Regional generator' means a waste generator who produces waste within the Atlantic Compact, whether or not this waste is sent to facilities outside the Atlantic Compact region for purposes of consolidation, treatment, or processing for disposal.

(19)   'Regional waste' means waste generated within a member state of the Atlantic Compact. Consistent with the regulatory position of the Department of Health and Environmental Control, Bureau of Radiological Health, dated May 1, 1986, some waste byproducts


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shipped for disposal that are derived from wastes generated within the Atlantic Compact region, such as residues from recycling, processing, compacting, incineration, collection, and brokering facilities located outside the Atlantic Compact region may also be considered regional waste.

(20)   'Site operator' means a facility operator.

(21) 'South Carolina generator' means a waste generator that produces waste within the boundaries of the State of South Carolina, whether or not this waste is sent to facilities outside South Carolina for purposes of consolidation, treatment, or processing for disposal.

(22)   'Waste' means Class A, B, or C low-level radioactive waste, as defined in Title I of Public Law 99-240 and Department of Health and Environmental Control Regulation 61-63, 7.2.22, that is eligible for acceptance for disposal at a regional disposal facility.

Section 48-46-40.   (A)(1)   The board shall approve disposal rates for low-level radioactive waste disposed at any regional disposal facility located within the State. The approval of disposal rates pursuant to this Chapter is neither a regulation nor the promulgation of a regulation as those terms are specially used in Title 1, Chapter 23.

(2)   The board shall adopt a maximum uniform rate schedule for regional generators containing disposal rates that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4) and that do not exceed the approximate disposal rates excluding any access fees and including a specification of the methodology for calculating fees for large components, generally applicable to regional generators on September 7, 1999. Any disposal rates contained in a valid written agreement that were applicable to a regional generator on September 7, 1999, that differ from rates in the maximum uniform rate schedule will continue to be honored through the term of such agreement. The maximum uniform rate schedule approved under this section becomes effective immediately upon South Carolina's membership in the Atlantic Compact. The maximum uniform rate schedule shall be the rate schedule applicable to regional waste whenever it is not superseded by an adjusted rate approved by the board pursuant to paragraph (3) of this subsection or by special disposal rates approved pursuant to paragraph (5) or (6)(E) of this subsection.

(3)   The board may at any time of its own initiative, at the request of a site operator, or at the request of the compact commission, adjust the disposal rate or the relative proportions of the individual


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components that constitute the overall rate schedule. Except as adjusted for inflation in subsection (4), rates adjusted in accordance with this section, that include the administrative surcharges specified in Section 48-46-60(B) and surcharges for the extended custody and maintenance of the facility pursuant to Section 13-7-30(4), may not exceed initial disposal rates set by the board pursuant to subsection (2).

(4)   In March of each year the board shall adjust the rate schedule based on the most recent changes in the most nearly applicable Producer Price Index published by the Bureau of Labor Statistics as chosen by the board, or a successor index.

(5)   In consultation with the site operator, the board or its designee, on a case-by-case basis, may approve special disposal rates for regional waste that differ from the disposal rate schedule for regional generators set by the board pursuant to subsections (2) and (3). Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee, shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the state or other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or the request for proposal containing the special rate is accepted by the regional generator; provided, however, that such special rates when accepted by a regional generator shall be disclosed to the compact commission and to all other regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing this special rate is accepted by the regional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board, the compact commission, and the regional generators of each special rate that has been accepted by a regional generator, and the board, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a regional generator is lower than a disposal rate approved by the board for regional generators pursuant to subsections (2) and (3) for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the regional generator. Regional generators may enter into contracts


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for waste disposal at such special rates and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board and the compact commission each month that no regional generator's disposal rate exceeds any other regional generator's special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board and the compact commission.

(6)(a)   To the extent authorized by the compact commission, the board on behalf of the State of South Carolina may enter into agreements with any person in the United States or its territories or any interstate compact, state, U.S. territory, or U.S. Department of Defense military installation abroad for the importation of waste into the region for purposes of disposal at a regional disposal facility within South Carolina. No waste from outside the Atlantic Compact region may be disposed at a regional disposal facility within South Carolina, except to the extent that the board is authorized by the compact commission to enter into agreements for importation of waste.

The board shall authorize the importation of nonregional waste into the region for purposes of disposal at the regional disposal facility in South Carolina so long as nonregional waste would not result in the facility accepting more than the following total volumes of all waste:

(1) 160,000 cubic feet in fiscal year 2001; (2)

(3) 80,000 cubic feet in fiscal year 2002; (4)

(5) 70,000 cubic feet in fiscal year 2003; (6)

(7) 60,000 cubic feet in fiscal year 2004; (8)

(9) 50,000 cubic feet in fiscal year 2005; (10)

(11) 45,000 cubic feet in fiscal year 2006; (12)

(13) 40,000 cubic feet in fiscal year 2007; (14)

(15) 35,000 cubic feet in fiscal year 2008. (16)

After fiscal year 2008, the board shall not authorize the importation of nonregional waste for purposes of disposal.

(b)   The board may approve disposal rates applicable to nonregional generators. In approving disposal rates applicable to nonregional generators, the board may consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors.

(c)   Absent action by the board under subsection (b) above to establish disposal rates for nonregional generators, rates applicable to these generators must be equal to those contained in the maximum uniform rate schedule approved by the board pursuant to paragraph (2)


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or (3) of this subsection for regional generators unless these rates are superseded by special disposal rates approved by the board pursuant to paragraph (6)(E) of this subsection.

(d)   Regional generators shall not pay disposal rates that are higher than disposal rates for nonregional generators in any fiscal quarter.

(e) In consultation with the site operator, the board or its designee, on a case-by-case basis, may approve special disposal rates for nonregional waste that differ from the disposal rate schedule for nonregional generators set by the board. Requests by the site operator for such approval shall be in writing to the board. In approving such special rates, the board or its designee shall consider available disposal capacity, demand for disposal capacity, the characteristics of the waste, the potential for generating revenue for the State, and other relevant factors; provided, however, that the board shall not approve any special rate for an entity owned by or affiliated with the site operator. Special disposal rates approved by the board under this subsection shall be in writing and shall be kept confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator; provided, however, that such special rates when accepted by a nonregional generator shall be disclosed to the compact commission and to all regional generators, which shall, to the extent permitted by applicable law, keep them confidential as proprietary business information for one year from the date when the bid or request for proposal containing the special rate is accepted by the nonregional generator. Within one business day of a special disposal rate's acceptance, the site operator shall notify the board, the compact commission, and the regional generators in writing of each special rate that has been accepted by a nonregional generator, and the board, the compact commission, and regional generators may communicate with each other about such special rates. If any special rate approved by the board for a nonregional generator is lower than a disposal rate approved by the board for regional generators for waste that is generally similar in characteristics and volume, the disposal rate for all regional generators shall be revised to equal the special rate for the nonregional generator. Regional generators may enter into contracts for waste disposal at such special rate and on comparable terms for a period of not less than six months. An officer of the site operator shall certify in writing to the board and the compact commission each month that no regional generator disposal rate exceeds any nonregional generator's


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special rate for waste that is generally similar in characteristics and volume, and such certification shall be subject to periodic audit by the board and the compact commission.

  (B)(1)   Effective upon the implementation of initial disposal rates by the board under Section 48-46-40(A), the PSC is authorized and directed to identify allowable costs for operating a regional low-level radioactive waste disposal facility in South Carolina.

(2)   In identifying the allowable costs for operating a regional disposal facility, the PSC shall:

(a)   prescribe a system of accounts, using generally accepted accounting principles, for disposal site operators, using as a starting point the existing system used by site operators;

(b)   obtain and audit the books and records of the site operators associated with disposal operations as determined applicable by the PSC;

(c)   assess penalties against disposal site operators if the PSC determines that they have failed to comply with regulations pursuant to this section; and

(d)   require periodic reports from site operators that provide information and data to the PSC and parties to these proceedings.

(3)   Allowable costs include the costs of those activities necessary for:

(a)   the receipt of waste;

(b)   the construction of disposal trenches, vaults, and overpacks;

(c)   construction and maintenance of necessary physical facilities;

(d)   the purchase or amortization of necessary equipment;

(e)   purchase of supplies that are consumed in support of waste disposal activities;

(f)   accounting and billing for waste disposal;

(g)   creating and maintaining records related to disposed waste;

(h)   the administrative costs directly associated with disposal operations including, but not limited to, salaries, wages, and employee benefits;

(i)     site surveillance and maintenance required by the State of South Carolina, other than site surveillance and maintenance costs covered by the balance of funds in the decommissioning trust fund or the extended care maintenance fund;

(j)     compliance with the license, lease, and regulatory requirements of all jurisdictional agencies;


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(k)   administrative costs associated with collecting the surcharges provided for in subsections (B) and (C) of Section 48-46-60;

(l)     taxes other than income taxes;

(m)   licensing and permitting fees; and

(n)   any other costs directly associated with disposal operations determined by the PSC to be allowable.

Allowable costs do not include the costs of activities associated with lobbying and public relations, clean-up and remediation activities caused by errors or accidents in violation of laws, regulations, or violations of the facility operating license or permits, activities of the site operator not directly in support of waste disposal, and other costs determined by the PSC to be unallowable.

(4)   Within 90 days following the end of a fiscal year, a site operator may file an application with the PSC to adjust the level of an allowable cost under subsection (3), or to allow a cost not previously designated an allowable cost. The PSC shall process such application in accordance with its procedures. If such application is approved by the PSC, the PSC shall authorize the site operator to adjust allowable costs for the current fiscal year so as to compensate the site operator for revenues lost during the previous fiscal year.

(5)   A private operator of a regional disposal facility in South Carolina is authorized to charge an operating margin of twenty-nine percent. The operating margin for a given period must be determined by multiplying twenty-nine percent by the total amount of allowable costs as determined in this subsection, excluding allowable costs for taxes and licensing and permitting fees paid to governmental entities.

(6)   The site operator shall prepare and file with the PSC a Least Cost Operating Plan. The plan must be filed within forty-five days of enactment of this chapter and must be revised annually. The plan shall include information concerning anticipated operations over the next ten years and shall evaluate all options for future staffing and operation of the site to ensure least cost operation, including information related to the possible interim suspension of operations in accordance with subsection (B)(7).

(7)   (a)   If the board, upon the advice of the compact commission or the site operator, concludes based on information provided to the board, that the volume of waste to be disposed during a forthcoming period of time does not appear sufficient to generate receipts that will be adequate to reimburse the site operator for its costs of operating the facility and its operating margin, then the board shall direct the site operator to propose to the compact commission plans including, but not


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necessarily limited to, a proposal for discontinuing acceptance of waste until such time as there is sufficient waste to cover the site operator's operating costs and operating margin. Any proposal to suspend operations must detail plans of the site operator to minimize its costs during the suspension of operations. Any such proposal to suspend operations must be approved by the Department of Health and Environmental Control with respect to safety and environmental protection.

(b)     Allowable costs applicable to any period of suspended operations must be approved by the PSC according to procedures similar to those provided herein for allowable operating costs. During any such suspension of operations, the site operator must be reimbursed by the board from the extended care maintenance fund for its allowable costs and its operating margin. During the suspension funding to reimburse the board, the PSC, and the State Treasurer under Section 48-46-60(B) and funding of the compact commission under Section 48-46-60(C) must also be allocated from the extended care maintenance fund as approved by the board based on revised budgets submitted by the PSC, State Treasurer, and the compact commission.

(c)   Notwithstanding any disbursements from the extended care maintenance fund in accordance with any provision of this act, the board shall continue to ensure, in accordance with Section 13-7-30, that the fund remains adequate to defray the costs for future maintenance costs or custodial and maintenance obligations of the site and other obligations imposed on the fund by this chapter.

(d)   The PSC may promulgate regulations and policies necessary to execute the provisions of this section.

(8)   The PSC may use any standard, formula, method, or theory of valuation reasonably calculated to arrive at the objective of identifying allowable costs associated with waste disposal. The PSC may consider standards, precedents, findings, and decisions in other jurisdictions that regulate allowable costs for radioactive waste disposal.

(9)   In all proceedings held pursuant to this section, the board shall participate as a party representing the interests of the State of South Carolina, and the compact commission may participate as a party representing the interests of the compact states. Representatives from the Department of Health and Environmental Control shall participate in proceedings where necessary to determine or define the activities that a site operator must conduct in order to comply with the regulations and license conditions imposed by the department. Other parties may participate in the PSC's proceedings upon satisfaction of


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standing requirements and compliance with the PSC's procedures. Any site operator submitting records and information to the PSC may request that the PSC treat such records and information as confidential and not subject to disclosure in accordance with the PSC's procedures.

(10)   In all respects in which the PSC has power and authority under this chapter, it shall conduct its proceeding under the South Carolina Administrative Procedures Act and the PSC's rules and regulations. The PSC is authorized to compel attendance and testimony of a site operator's directors, officers, agents, or employees.

(11)   At any time the compact commission, the board, or any generator subject to payment of rates set pursuant to this chapter may file a complaint against a site operator alleging that allowable costs identified pursuant to this chapter are not in conformity with the directives of this chapter or the directives of the PSC or that the site operator is otherwise not acting in conformity with the requirements of this chapter or directives of the PSC. Upon filing of the complaint, the PSC shall cause a copy of the complaint to be served upon the site operator. The complaining party has the burden of proving that allowable costs or the actions of the site operator do not conform. The hearing shall conform to the rules of practice and procedure of the PSC for other complaint cases.

(12)   The PSC shall encourage alternate forms of dispute resolution including, but not limited to, mediation or arbitration to resolve disputes between a site operator and any other person regarding matters covered by this chapter.

(C) The operator of a regional disposal facility shall submit to the South Carolina Department of Revenue, the PSC, and the board within thirty days following the end of each quarter a report detailing actual revenues received in the previous fiscal quarter and allowable costs incurred for operation of the disposal facility.

(D)(1) Within 30 days following the end of the fiscal year the operator of a regional disposal facility shall submit a payment made payable to the South Carolina Department of Revenue in an amount that is equal to the total revenues received for waste disposed in that fiscal year (with interest accrued on cash flows in accordance with instructions from the State Treasurer) minus allowable costs, operating margin, and any payments already made from such revenues pursuant to Section 48-46-60(B) and (C) for reimbursement of administrative costs to state agencies and the compact commission. The Department of Revenue shall deposit the payment with the State Treasurer.


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(2) If in any fiscal year total revenues do not cover allowable costs plus the operating margin, the board must reimburse the site operator its allowable costs and operating margin from the extended care maintenance fund within thirty days after the end of the fiscal year. The board shall as soon as practicable authorize a surcharge on waste disposed in an amount that will fully compensate the fund for the reimbursement to the site operator. In the event that total revenues for a fiscal year do not cover allowable costs plus the operating margin, or quarterly reports submitted pursuant to subsection (C) indicate that such annual revenue may be insufficient, the board shall consult with the compact commission and the site operator as early as practicable on whether the provisions of Section 48-46-40(B)(7) pertaining to suspension of operations during periods of insufficient revenues should be invoked.

(E)   Revenues received pursuant to item (1) of subsection (D) must be allocated as follows:

(1)   The South Carolina State Treasurer shall distribute the first two million dollars received for waste disposed during a fiscal year to the County Treasurer of Barnwell County for distribution to each of the parties to and beneficiaries of the order of the United States District Court in C.A. No. 1:90-2912-6 on the same schedule of allocation as is established within that order for the distribution of 'payments in lieu of taxes' paid by the United States Department of Energy.

(2)   All revenues in excess of two million dollars received from waste disposed during the previous fiscal year must be deposited in a fund called the 'Nuclear Waste Disposal Receipts Distribution Fund'. Any South Carolina waste generator whose disposal fees contributed to the fund during the previous fiscal year may submit a request for a rebate of 33.33 percent of the funds paid by the generator during the previous fiscal year for disposal of waste at a regional disposal facility. These requests along with invoices or other supporting material must be submitted in writing to the State Treasurer within fifteen days of the end of the fiscal year. For this purpose disposal fees paid by the generator must exclude any fees paid pursuant to Section 48-46-60(C) for compact administration and fees paid pursuant to Section 48-46-60(B) for reimbursement of the PSC, the State Treasurer, and the board for administrative expenses under this chapter. Upon validation of the request and supporting documentation by the State Treasurer, the State Treasurer shall issue a rebate of the applicable funds to qualified waste generators within sixty days of the receipt of the request. If funds in the Nuclear Waste Disposal Receipts Distribution Fund are


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insufficient to provide a rebate of 33.33 percent to each generator, then each generator's rebate must be reduced in proportion to the amount of funds in the account for the applicable fiscal year.

(3) All funds deposited in the Nuclear Waste Disposal Receipts Distribution Fund for waste disposed for each fiscal year, less the amount needed to provide generators rebates pursuant to item (2), shall be deposited by the State Treasurer in the 'Children's Education Endowment Fund'. Notwithstanding the method of allocation from the Children's Education Endowment Fund provided for in Section 59-143-10, the first $24 million of any such deposits for low-level radioactive waste disposed in a fiscal year shall be allocated for Higher Education Scholarship Grants and the remainder allocated to the 'Public School Facility Assistance Fund'.

Section 48-46-50.     (A)   The Governor shall appoint two commissioners to the Atlantic Compact Commission and may appoint up to two alternate commissioners. These alternate commissioners may participate in meetings of the compact commission in lieu of and upon the request of a South Carolina commissioner. Technical representatives from the Department of Health and Environmental Control, the board, the PSC, and other state agencies may participate in relevant portions of meetings of the compact commission upon the request of a commissioner, alternate commissioner, or staff of the compact commission, or as called for in the compact commission bylaws.

(B)   South Carolina commissioners or alternate commissioners to the compact commission may not vote affirmatively on any motion to admit new member states to the compact unless that state volunteers to host a regional disposal facility.

(C)   Compact commissioners or alternate commissioners to the Atlantic Compact Commission may not vote to approve a regional management plan or any other plan or policy that allows for acceptance at the Barnwell regional disposal facility of more than a total of 800,000 cubic feet of waste from Connecticut and New Jersey.

(D)   South Carolina's commissioners or alternate commissioners to the compact commission shall cast any applicable votes on the compact commission in a manner that authorizes the importation of waste into the region for purposes of disposal at a regional disposal facility in South Carolina so long as importation would not result in the facility accepting more than the following total volumes of all waste:

(1)   160,000 cubic feet in fiscal year 2001;

(2)   80,000 cubic feet in fiscal year 2002;


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(3)   70,000 cubic feet in fiscal year 2003;

(4)   60,000 cubic feet in fiscal year 2004;

(5)   50,000 cubic feet in fiscal year 2005;

(6)   45,000 cubic feet in fiscal year 2006;

(7)   40,000 cubic feet in fiscal year 2007;

(8)   35,000 cubic feet in fiscal year 2008.

South Carolina's commissioners or alternate commissioners shall not vote to approve the importation of waste into the region for purposes of disposal in any fiscal year after 2008.

Section 48-46-60.   (A)   The Governor and the board are authorized to take such actions as are necessary to join the Atlantic Compact including, but not limited to, petitioning the Compact Commission for membership and participating in any and all rulemaking processes. South Carolina's membership in the Atlantic Compact pursuant to this chapter is effective July 1, 2000, if by that date the Governor certifies to the General Assembly that the Compact Commission has taken each of the actions specified below. If the Compact Commission by July 1, 2000, has not taken each of the actions specified below, then South Carolina's membership shall become effective as soon thereafter as the Governor certifies that the Atlantic Compact Commission has taken these actions:

(1)   adopted a binding regulation or policy in accordance with Article VII(e) of the compact establishing conditions for admission of a party state that are consistent with this act and ordered that South Carolina be declared eligible to be a party state consistent with those conditions;

(2)   adopted a binding regulation or policy in accordance with Article IV(i)(11) of the Atlantic Compact authorizing a host state to enter into agreements on behalf of the compact and consistent with criteria established by the compact commission and consistent with the provisions of Section 48-46-40(A)(6)(a) and Section 48-46-50(D) with any person for the importation of waste into the region for purposes of disposal, to the extent that these agreements do not preclude the disposal facility from accepting all regional waste that can reasonably be projected to require disposal at the regional disposal facility consistent with 5(b) of this section;

(3)   adopted a binding regulation or policy in accordance with Article IV(i)(12) of the Atlantic Compact authorizing each regional generator, at the generator's discretion, to ship waste to disposal facilities located outside the Atlantic Compact region;


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(4)   authorized South Carolina to proceed with plans to establish disposal rates for low-level radioactive waste disposal in a manner consistent with the procedures described in this chapter;

(5)   adopted a binding regulation, policy, or order officially designating South Carolina as a volunteer host state for the region's disposal facility, contingent upon South Carolina's membership in the compact, in accordance with Article V.b.1. of the Atlantic Compact, thereby authorizing the following compensation and incentives to South Carolina:

(a)   agreement, as evidenced in a policy, regulation, or order that the compact commission will issue a payment of twelve million dollars to the State of South Carolina. Before issuing the twelve million-dollar payment, the compact commission will deduct and retain from this amount seventy thousand dollars, which will be credited as full payment of South Carolina's membership dues in the Atlantic Compact. The remainder of the twelve million-dollar payment must be credited to an account in the State Treasurer's office, separate and distinct from the fund, styled 'Barnwell Economic Development Fund'. This fund, and earnings on this fund which must be credited to the fund, may only be expended for purposes of economic development in the Barnwell County area including, but not limited to, projects of the Barnwell County Economic Development Corporation and projects of the Tri-County alliance which includes Barnwell, Bamberg, and Allendale Counties and projects in the Williston area of Aiken County. Economic development includes, but is not limited to, industrial recruitment, infrastructure construction, improvement, and expansion, and public facilities construction, improvement, and expansion. These funds must be spent according to guidelines established by the Barnwell County governing body and upon approval of the board. Expenditures must be authorized by the Barnwell County governing body and with the approval of the board. Upon approval of the Barnwell County governing body and the board, the State Treasurer shall submit the approved funds to the Barnwell County Treasurer for disbursement pursuant to the authorization;

(b)   adopted a binding regulation, policy, or order consistent with the regional management plan developed pursuant to Article V(a) of the Atlantic Compact, limiting Connecticut and New Jersey to the use of not more than 800,000 cubic feet of disposal capacity at the regional disposal facility located in Barnwell County, South Carolina, and also ensuring that up to 800,000 cubic feet of disposal capacity remains available for use by Connecticut and New Jersey unless this


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estimate of need is later revised downward by unanimous consent of the compact commission;

(c)   agreement, as evidenced in a policy or regulation, that the compact commission headquarters and office will be relocated to South Carolina within six months of South Carolina's membership; and

(d)   agreement, as evidenced in a policy or regulation, that the compact commission will, to the extent practicable, hold a majority of its meetings in the host state for the regional disposal facility.

(B)   The board, the State Treasurer, and the PSC shall provide the required staff and may add additional permanent or temporary staff or contract for services, as well as provide for operating expenses, if necessary, to administer new responsibilities assigned under this chapter. In accordance with Article V.f.2. of the Atlantic Compact the compensation, costs, and expenses incurred incident to administering these responsibilities may be paid through a surcharge on waste disposed at regional disposal facilities within the State. To cover these costs the board shall impose a surcharge per unit of waste received at any regional disposal facility located within the State. A site operator shall collect and remit these fees to the board in accordance with the board's directions. All such surcharges shall be included within the disposal rates set by the board pursuant to Section 48-46-40.

(C)   In accordance with Article V.f.3. of the Atlantic Compact, the compact commission shall advise the board at least annually, but more frequently if the compact commission deems appropriate, of the compact commission's costs and expenses. To cover these costs the board shall impose a surcharge per unit of waste received at any regional disposal facility located within the State as determined in Section 48-46-40. A site operator shall collect and remit these fees to the board in accordance with the board's directions, and the board shall remit those fees to the compact commission.

Section 48-46-70.     The Northeast Interstate Low-Level Radioactive Waste Management Compact, P.L. 99-240, Section 227, 99 Stat. 1909 (1985) as it existed on the date this act was enacted, is hereby incorporated by reference, and all terms and conditions contained therein shall have full force and effect as if set forth herein in their entirety. In addition to the express limitations on non-host state and compact commission liability provided in the Northeast Interstate Low-Level Radioactive Waste Management Compact, South Carolina will indemnify the Atlantic Compact Commission or any of the other party states for any damages incurred solely because of South Carolina's membership in the compact and for any damages associated


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with any injury to persons or property during the institutional control period resulting from the radioactive and waste management operations of the regional facility.

Section 48-46-80.     Pursuant to Section 48-2-10 et seq., the Department of Health and Environmental Control may adjust the radioactive materials license fee for Low-Level Radioactive Waste Shallow Land Disposal in Regulation 61-30 in an amount that will offset changes to its annual operating budget caused by projected increases or decreases in the number of permittees expected to pay fees for Radioactive Waste Transport Permits under the same regulation for shipment of low-level radioactive waste for disposal within the State.

Section 48-46-90.     (A)   In accordance with Section 13-7-30, the board, or its designee, is responsible for extended custody and maintenance of the Barnwell site following closure and license transfer from the facility operator. The Department of Health and Environmental Control is responsible for continued site monitoring.

(B)   Nothing in this chapter may be construed to alter or diminish the existing statutory authority of the Department of Health and Environmental Control to regulate activities involving radioactive materials and radioactive wastes."

B.     Section 13-7-10 of the 1976 Code, as last amended by Act 552 of 1990, is further amended by adding at the end:

"(10)   'Decommissioning trust fund' means the trust fund established pursuant to a Trust Agreement dated March 4, 1981, among Chem-Nuclear Systems, Inc. (grantor), the South Carolina Budget and Control Board (beneficiary), and the South Carolina State Treasurer (trustee), whose purpose is to assure adequate funding for decommissioning of the disposal site, or any successor fund with a similar purpose.

(11) 'Extended care maintenance fund' means the 'escrow fund for perpetual care' that is used for custodial, surveillance, and maintenance costs during the period of institutional control and any post-closure observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site as provided for in Section 13-7-30(4).

(12)   'Maintenance' means active maintenance activities as specified by the Department of Health and Environmental Control including pumping and treatment of groundwater and the repair and replacement of disposal unit covers."

C.     Section 13-7-30 of the 1976 Code, as last amended by Section 70A, Part II, Act 501 of 1992, is further amended to read:


Printed Page 3154 . . . . . Thursday, May 11, 2000

"Section 13-7-30.   For purposes of this article, the State Budget and Control Board, hereinafter in this section referred to as the board, is designated as the agency of the State which shall have the following powers and duties that are in accord with its already established responsibilities for custody of state properties, and for the management of all state sinking funds, insurance, and analogous fiscal matters that are relevant to state properties:

(1)   expend state funds in order to acquire, develop, and operate land and facilities. This acquisition may be by lease, dedication, purchase, or other arrangements. However, the state's functions under the authority of this paragraph section are limited to the specific purposes of this article;

(2)   lease, sublease, or sell real and personal properties to public or private bodies;

(3)   assure the maintenance of insurance coverage by state licensees, lessees, or sublessees as will in the opinion of the board protect the citizens of the State against nuclear incident that may occur on state-controlled atomic energy facilities;

(4)   assume responsibility for extended custody and maintenance of radioactive materials held for custodial purposes at any publicly or privately operated facility located within the State, in the event the parties operating these facilities abandon their responsibility, or when the license for the facility is ultimately transferred to an agency of the State, and whenever the federal government or any agency of the federal government has not assumed the responsibility.

In order to finance such extended custody and maintenance as the board may undertake, the board may collect fees from private or public parties holding radioactive materials for custodial purposes. These fees must be sufficient in each individual case to defray the estimated cost of the board's custodial management activities for that individual case. The fees collected for such custodial management activities shall also be sufficient to provide additional funds for the purchase of insurance which shall be purchased for the protection of the State and the general public for the period such radioactive material considering its isotope and curie content together with other factors may present a possible danger to the general public in the event of migration or dispersal of such radioactivity. All such fees, when received by the board, must be transmitted to the State Treasurer. The Treasurer must place the money in a special account, in the nature of a revolving trust fund, which may be designated 'extended care maintenance fund', to be disbursed on authorization of the board. Monies in the extended care maintenance


Printed Page 3155 . . . . . Thursday, May 11, 2000

funds must be invested by the board in the manner as other state monies. However, any interest accruing as a result of investment must accrue to this extended care maintenance fund. Except as authorized in Section 48-46-40(B)(7)(b) and (D)(2), The the extended care maintenance fund must be used exclusively for custodial, surveillance, and maintenance costs during the period of institutional control or for otherwise satisfying custodial and maintenance obligations and during any post-closure and observation period specified by the Department of Health and Environmental Control, and for activities associated with closure of the site. Funds from the extended care maintenance fund shall not be used for site closure activities or for custodial, surveillance, and maintenance performed during the post-closure observation period until all funds in the decommissioning trust account are exhausted.     (5)   Enter into an agreement with the federal government or any of its authorized agencies to assume extended maintenance of lands donated, leased, or purchased from the federal government or any of its authorized agencies and used for development of atomic energy resources or as custodial site for radioactive material.

(6)   In accordance with SECTION 48-47-100 (2), impose, collect, and disburse special fees or surcharges on all users of any regional low-level radioactive waste disposal facility to provide for annual funding of the Southeast Low-Level Radioactive Waste Management Compact Commission.

(7)(a)   The State Budget and Control Board shall assess surcharges and penalty surcharges on nonsited waste received at the regional disposal facility. The surcharges are imposed to the maximum extent permitted by SECTION 5(d)(1) of Public Law 99-240 unless a lesser amount is authorized upon recommendation of the Budget and Control Board and upon approval of the General Assembly by Joint Resolution. The Department of Health and Environmental Control shall notify the operator whenever a generator is to be assessed a penalty surcharge or whenever the assessment of a penalty surcharge is to be terminated.

(b)   For the purposes of this item:

(1)   "Sited region" means a Low-Level Radioactive Waste Compact region established under Public Law 96-573 in which there is located one of the following regional disposal facilities: Barnwell, in the State of South Carolina; Richland, in the State of Washington; or Beatty, in the State of Nevada.

(2)   "Regional disposal facility" means the nonfederal low-level radioactive waste disposal facility located in Barnwell County, South Carolina.


Printed Page 3156 . . . . . Thursday, May 11, 2000

(3)   "Surcharge" means the per cubic foot charge authorized by SECTION 5(d)(1) of Public Law 99-240.

(4)   "Penalty surcharge" means the additional per cubic foot charge required by SECTION 5(e)(2) of Public Law 99-240.

(5)   "Surcharge funds" means those funds collected by the operator in payment for the surcharges and penalty surcharges assessed as provided herein.

(6)   "Operator" means the person who operates the regional disposal facility.

(7)   The definitions contained in Chapter 47 of Title 48 are applicable to this section.

(8)   "Nonsited waste" means waste generated outside the sited regions, as provided in SECTION 5 of the Low-Level Radioactive Waste Policy Amendments Act of 1985, Public Law 99-240.

(c)   On the fifteenth day of each month, the operator shall remit to the Budget and Control Board an amount equal to the per cubic foot surcharge for each cubic foot of nonsited waste received by the operator as of the first day of the preceding month. On the last day of each month, the operator shall remit to the Budget and Control Board an amount equal to the per cubic foot surcharge for each cubic foot of nonsited waste received by the operator as of the fifteenth day of the preceding month.

On the fifteenth and last day of each month, the operator shall report to the department of Health and Environmental Control any generator who fails to reimburse the operator, within sixty days of receipt of the waste at the site, for the surcharge funds paid by the operator. Any generator who fails to pay the surcharge funds within such sixty-day period is denied access to the site. Access is reinstated upon satisfaction of the following conditions: (1) certification by the department that all outstanding surcharges and penalty surcharges have been paid; and (2) prepayment of surcharges for all future deliveries to the site.

(d)   The State Treasurer on a monthly basis shall remit to the United States Secretary of Energy twenty-five percent of the surcharge funds collected as required by SECTION 5(d)(2)(A) of Public Law 99-240 as the Treasurer in conjunction with the United States Department of Energy shall determine. No portion of any penalty surcharges may be remitted to the United States Secretary of Energy.

(e)   Of the remaining balance from the surcharge after the allocation provided in subitem (d), together with all penalty surcharges, the Treasurer shall remit ten percent of the balance to the governing


Printed Page 3157 . . . . . Thursday, May 11, 2000

body of Barnwell County; provided, that in no event shall the Treasurer remit more than two million, five hundred thousand dollars a fiscal year to the governing body of Barnwell County pursuant to this section. All funds thereafter not otherwise allocated by law must be deposited in the general reserve fund of the State. If the amount deposited exceeds the amount necessary to fund the general reserve fund of the State on a fiscal year basis, then such funds must be deposited in the general fund of the State.

(f)   Upon enactment of this item, the State Treasurer shall transfer to the Secretary of Energy of the United States twenty-five percent of the ten dollars a cubic foot fee collected by the operator since March 1, 1986, pursuant to the direction of the State Budget and Control Board. The remaining portion of such fees previously collected must be deposited to the general fund of the State.

(g)   The Budget and Control Board and the operator shall furnish the Department of Health and Environmental Control with all necessary information required by the department to monitor and enforce the compliance provisions of Public Law 99-240."

D.     The provisions of this act are to be liberally construed to effectuate its purpose. If any provisions of this act shall be determined to be unconstitutional, invalid, or otherwise unenforceable by a court of competent jurisdiction, such provision shall be severable from the remaining portions of this chapter and shall not invalidate the remaining provisions of this chapter, which shall continue in full force and effect. If any provision of this act shall be determined by a court of competent jurisdiction to be in conflict with any other provision of this act, and particularly the provisions of the Northeast Interstate Low-Level Radioactive Waste Management Compact, P.L. 99-240, Section 227, 99 Stat. 1909 (1985), the provisions of the compact shall govern.

E.     Title 48, Chapter 48 of the 1976 Code is repealed effective upon the date of South Carolina's membership in the Atlantic Compact, except that Section 48-48-140(F) is repealed effective July 1, 2000. The contingent annual license tax for fiscal year 1999-2000 under Section 48-48-140(F) shall remain due and payable as described in that section for that fiscal year. In the event that South Carolina does not become a member of the Atlantic Compact by October 1, 2000, then Section 48-48-140(F) shall be reinstated as of October 1, 2000, except that the tax for fiscal year 2000-2001 shall be $18 million. In the fiscal year that the site operator ceases to accept waste for disposal in preparation for permanent closure, the contingent annual license tax under Section


Printed Page 3158 . . . . . Thursday, May 11, 2000

48-48-140(F) will be paid to the State on a pro rata basis for each quarter that the site is accepting waste for disposal. The tax does not apply when the site is in a closure mode.

F.     Chapter 7, Title 13 of the 1976 Code is amended to read:

  "ARTICLE 9

Governor's Nuclear Advisory Council

Section 13-7-810.     There is hereby established a Governor's Nuclear Advisory Council which shall be responsible to and report to the Governor.

Section 13-7-820.     The duties of the council, in addition to such other duties as may be requested by the Governor, shall be:

(1)   to provide advice and recommendations to the Governor on issues involving the use, handling, and management of the transportation, storage, or disposal of nuclear materials within South Carolina, or such use, handling, transportation, storage, or disposal of nuclear materials outside of the State which may affect the public health, welfare, safety, and environment of the citizens of South Carolina;

(2)   to provide advice and recommendations to the Governor regarding matters pertaining to the Atlantic Compact Commission;

(3) to provide advice and recommendations to the Governor regarding the various programs of the United States Department of Energy pertaining to nuclear waste; and other federal agencies related to the Establishment of a National Radioactive Waste Management Plan and the applicability of South Carolina laws, and administrative rules and regulations to such a plan.

(4)   to meet at the call of the chair or at a minimum twice a year.

Section 13-7-830.   The recommendations described in Section 13-7-620 shall be made available to the General Assembly, the Governor, and the Budget and Control Board. and Joint Legislative Committee on Energy.

Section 13-7-840.   The council shall consist of nine five (5) members. One at-large member shall be appointed by the Speaker of the House of Representatives and one at-large member shall be appointed by the President of the Senate. Seven members shall be appointed by the Governor with the advice and consent of the Senate as follows: One Two shall be actively involved in the area of environmental protection; one shall have experience in the generation of power by nuclear means; one shall have experience in the field of nuclear activities other than power generation; two one shall be a scientists or engineers from the faculties of one of the institutions of


Printed Page 3159 . . . . . Thursday, May 11, 2000

higher learning in the State; and one shall be from the public at large. The terms of the members of the council appointed by the Governor shall be co-terminus with that of the appointing Governor, but they shall serve at the pleasure of the Governor.

Vacancies of the council shall be filled in the manner of the original appointment.

Section 13-7-850.   The Governor shall designate the chairman from the membership. When on business of the council, members shall be entitled to receive such compensation as provided by law for boards and commissions.

Section 13-7-860.   The Council may employ, on a full or part-time basis, staff as necessary to carry out the activities of the Council. Unclassified staff of the previous S. C. Nuclear Advisory Council transferred to the Joint Legislative Committee on Energy under Section 2-53-40 are hereby transferred to the Governor's Nuclear Advisory Council. Staff support for the council shall be provided by the State Energy Office."

G.     In the event that South Carolina does not become a member of the Atlantic Compact by October 1, 2000, then Subsection A. of this SECTION is repealed.   /

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

Amendment No. 72

Senator RYBERG proposed the following Amendment No. 72 (PSD\7231MM00), which was ruled out of order:

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

  / SECTION ______

TO AMEND SECTION 2-1-120 OF THE 1976 CODE, RELATING TO RETENTION OF A TEACHING CERTIFICATE WHILE SERVING AS AN ELECTED MEMBER OF THE GENERAL ASSEMBLY, SO AS TO EXTEND THE EXEMPTION FROM RECERTIFICATION REQUIREMENTS TO STAFF MEMBERS OF THE GENERAL ASSEMBLY AND OF THE EDUCATION OVERSIGHT COMMITTEE.

Section 2-1-120 of the 1976 Code is amended to read:


Printed Page 3160 . . . . . Thursday, May 11, 2000

"Section 2-1-120.   Notwithstanding any other provisions of law or regulations of the Department of Education, members of the General Assembly while serving elected terms of office and staff members of the General Assembly and of the Education Oversight Committee shall be are exempted from any requirements of recertification and such members' their teaching certificates shall remain valid during that period."   /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

Point of Order

Senator SETZLER raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Amendment No. 96

Senator FAIR proposed the following Amendment No. 96 (NBD\12083AC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

  /SECTION ____

TO AMEND THE 1976 CODE BY ADDING SECTION 44-1-115 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO DEVELOP A DATABASE INTO WHICH A PARENT OR LEGAL GUARDIAN MAY REGISTER AN OBJECTION WITH THE DEPARTMENT PROHIBITING THE DEPARTMENT OR ANY OTHER STATE AGENCY FROM PROVIDING CONDOMS OR OTHER TYPES OF CONTRACEPTIVES TO THEIR CHILDREN UNDER SIXTEEN YEARS OF AGE; TO ADD SECTION 44-1-117 SO AS TO PROHIBIT THE DEPARTMENT OR ANY OTHER STATE AGENCY FROM DISTRIBUTING OR USING CERTAIN STATE FUNDS TO DISTRIBUTE CONDOMS OR OTHER TYPES OF CONTRACEPTIVES TO A CHILD UNDER SIXTEEN YEARS OF AGE IF THE CHILD'S PARENT OR LEGAL GUARDIAN HAS REGISTERED AN OBJECTION WITH THE DEPARTMENT


Printed Page 3161 . . . . . Thursday, May 11, 2000

PURSUANT TO SECTION 44-1-115; AND TO ADD SECTION 44-1-120, SO AS TO ESTABLISH JUDICIAL PROCEDURES FOR A MINOR UNDER THE AGE OF SIXTEEN TO OBTAIN CONDOMS OR CONTRACEPTIVES FROM A STATE AGENCY OR DEPARTMENT NOTWITHSTANDING PARENTAL OBJECTION BEING FILED.

A.   The 1976 Code is amended by adding:

"Section 44-1-115.     The Department of Health and Environmental Control shall develop a database into which a parent, legal guardian, or one acting in loco parentis to a child under sixteen years of age may register a written objection with the department prohibiting the department or any other agency or department of the State from providing condoms or other types of contraceptives to their child under sixteen years of age.

The department shall publish and distribute informational brochures to schools, physicians, and health care agencies and facilities which include procedures for registration and shall provide access to this information to any department or agency of the State that provides condoms or other contraceptives to minors."

B.   The 1976 Code is amended by adding:

"Section 44-1-117.   Notwithstanding any other provision of law, the Department of Health and Environmental Control or any other state agency or department or a person acting on behalf of an agency or department may not distribute or use funds appropriated to it for family health or sexually transmitted disease or HIV (Human Immuno deficiency Virus) control for the distribution of condoms or other types of contraceptives to a child under sixteen years of age if the child's parent, legal guardian, or one acting in loco parentis has registered an objection with the Department of Health and Environmental Control pursuant to Section 44-1-115."

C.   The 1976 Code is amended by adding:

"Section 44-1-120.   (A)   Notwithstanding the provisions of Section 44-1-117 or a parental objection on file pursuant to Section 44-1-115, every minor under sixteen years of age has the right to petition the court for an order granting the minor the right to obtain condoms or other contraceptives from a state agency or department. In seeking this relief the following procedures apply:

(1)   The minor may prepare and file a petition in either the circuit or family court. The petition may be filed in the name of John or Jane Doe to protect the anonymity of the minor.


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(2)   The Department of Health and Environmental Control, upon request of the minor, must provide assistance to the minor in preparing and filing the petition. The department shall promulgate regulations establishing the procedures to be followed in providing this assistance.

(3)   Upon the filing of the petition, the court shall appoint a guardian ad litem for the minor, taking into consideration the preference of the minor. The minor may participate in court proceedings on his or her own behalf, but the court shall advise the minor that he or she has a right to court-appointed counsel and shall provide the minor with counsel upon request.

(4)   The court shall hold a hearing and rule on the merits of the petition and shall consider the emotional development, maturity, intellect, and understanding of the minor; the nature and possible consequences of using or misusing condoms or other contraceptives; and other evidence that the court may find useful in determining whether the minor should be granted the right on his or her own behalf to obtain condoms or other contraceptives from a state agency or department and whether such relief is in the best interest of the minor.

(B)   The court shall enter a written order stating findings of fact and conclusions of law in support of its decision to grant or deny the minor the relief sought pursuant to this section. Orders issued under this item shall specify that the minor shall have the right to counseling services which must be provided for by the State.

(C)   A minor has the right to appeal to the Supreme Court a decision rendered pursuant to subsection (B) and a minor who declares he or she has insufficient funds to pursue the procedures provided in this section must not be required to pay the costs associated with these procedures.

(D)   All hearings conducted under this section must be closed to the public. All records related to this section are not open to public examination and must be sealed by the court."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SHORT spoke on the amendment.

Senator SHORT moved to lay the amendment on the table.

The amendment was laid on the table.


Printed Page 3163 . . . . . Thursday, May 11, 2000

RECESS

At 10:40 P.M., on motion of Senator PEELER, the Senate receded from business not to exceed five minutes.

At 11:09 P.M., the Senate resumed.

Amendment No. 231A

Senators SHORT and HUTTO proposed the following Amendment No. 231A (4775R038A.LHS), which was adopted (#66):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

/                         SECTION   ___.
TO AMEND CHAPTER 122, TITLE 44 OF THE 1976 CODE, AS AMENDED, RELATING TO HEALTH, SO AS TO FURTHER PROVIDE FOR THE COUNTY GRANTS FUND PROGRAM FOR ADOLESCENT PREGNANCY PREVENTION INITIATIVES; TO PROVIDE FOR THE ADMINISTRATION AND DISTRIBUTION OF MONIES APPROPRIATED TO THE GRANTS FUND; TO REQUIRE REGULAR EVALUATIONS OF PROJECTS RECEIVING MONIES FROM THE GRANTS FUND; AND TO PROVIDE FOR TECHNICAL REVISIONS RELATING TO THE COUNTY GRANTS FUND PROGRAM.

A.   Chapter 122, Title 44 of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:

"Section 44-122-10.   As used in this chapter:

(1)   `Adolescent' means an individual nineteen years of age and under.

(2)   `Contractor' means a public or private agency or organization receiving money from the fund.

(3)   `County government' means the governing body of a county or the organization or agency in a county that has been designated pursuant to Section 44-122-30(C) to assume the duties and responsibilities assigned to county governments.

(4)   `Department' means the South Carolina Department of Social Services. In reference to a specific decision to be made or report to be submitted, `department' means the State Director of the South Carolina Department of Social Services (DSS).

(5)   `Initiative' means a local program or project funded by a county or consortium of counties pursuant to this chapter. If a consortium is formed, a lead county must be designated to serve as fiscal agent to DSS.


Printed Page 3164 . . . . . Thursday, May 11, 2000

(6)   `Short term outcomes' means the intermediate results that a particular adolescent pregnancy prevention intervention is likely to produce including, but not limited to, increased knowledge, behavior change, or delays or reductions in sexual activity.

(7)   `Long term outcome' means the measurable reduction in the rate of adolescent pregnancy for a specific target population or defined geographic area.

(8)   `Primary pregnancy prevention' means prevention of first pregnancy.

(9)   `Fund' means the County Grants Fund for Adolescent Pregnancy Prevention Initiatives created by this chapter.

(10)   `Local interagency council' means an organized group of representatives of public and private agencies in the county with functions related to youth development.

Section 44-122-20.     (A)   There is established the County Grants Fund for Adolescent Pregnancy Prevention Initiatives. The fund must be administered by the department and county governments as provided in this chapter. The purpose of the fund is to support local efforts to prevent early sexual activity and to measurably reduce the rate of adolescent pregnancy in each county and in the State and to ensure that these efforts reflect local community values.

(B)   Any program components funded by federal Temporary Assistance for Needy Families (TANF) dollars are subject to TANF reporting requirements and federal fiscal accountability requirements. The department shall amend the South Carolina Temporary Assistance for Needy Families (TANF) Block Grant State Plan as required by federal law to govern expenditures of federal TANF dollars.

Section 44-122-30.     (A)   Ten percent of the money appropriated annually to the fund by the General Assembly is to be used by the department to evaluate the effectiveness of each initiative and the fund as specified in Section 44-122-60. The remaining money must be distributed by the department to each county government in the following manner:

(1)   fifteen percent of the money appropriated must be allocated evenly among all counties;

(2)   fifteen percent of the money appropriated must be allocated to counties based on the size of their adolescent population;

(3)   twenty percent of the money appropriated must be allocated to counties based on their rate of adolescent pregnancy;

(4)   forty percent of the funds appropriated must be allocated to counties based on their number of adolescent pregnancies.


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A county government may retain up to five percent of the money it receives to cover the actual costs of administering the fund. All other funds must be allocated for initiatives mainly focused on primary pregnancy prevention. Money must be allocated by the county within two years of receipt.

(B)   Money appropriated to the fund must not be used for:

(1)   purchase of inpatient care;

(2)   purchase or improvement of land;

(3)   purchase, construction, or permanent improvement of any building or other facility;

(4)   purchase of any item of major equipment costing over $2000;

(5)   transportation to or from abortion services;

(6)   abortions; or

(7)   provision of goods or services anything of monetary value to a participant in a local project or initiative that exceeds $50 per participant per year; counseling and guidance may be provided as well as any service of nonmonetary value are exempt from the $50 limit.

(C)   If the governing body of a county chooses not to assume the responsibilities and duties assigned to county governments by this chapter:

(1)   the governing body may designate an agency or organization to assume those responsibilities and duties; or

(2)   in the absence of designation by the governing body, the department may designate another agency or organization within the county to assume those responsibilities and duties.

(D)   If a county government uses money it receives pursuant to subsection (A) in a manner not expressly authorized by this chapter, the department may designate another agency or organization within the county to assume those responsibilities and duties, or reallocate that county's funds among compliant counties in accordance with the formula prescribed in subsection (A).

(E)   If a county fails to fund an initiative during any fiscal year, the funds allocated to that county shall be reallocated in the following year, in accordance with the formula prescribed in subsection (A).

(F)   Funds allocated subsequent to the 1998 appropriation will be subject to the following conditions: (1) New initiatives and initiatives receiving continuation of funds beyond the third year must incorporate either a nationally recognized best practices model for teen pregnancy prevention, or a model that has demonstrated a record of local success in reducing adolescent pregnancy or the risk factors that contribute to


Printed Page 3166 . . . . . Thursday, May 11, 2000

adolescent pregnancy in South Carolina during the previous funding period as reflected in the evaluation or the summary progress reports.

(G)   The department, on recommendation of the evaluator, will determine if the conditions described above are met before the department disseminates new funds or continuation of funds beyond the third year, in accordance with Section 44-122-30(A).

(H)   Funding for an initiative shall be terminated if the evaluator notifies the department and the county government that an initiative substantially deviates from the approved project design, including timelines.

Section 44-122-40.     (A)   A local public or private agency or organization or combination of these agencies and organizations may apply to the county government for an allocation of funds to operate an adolescent pregnancy prevention initiative. All initiatives funded by the county government pursuant to this chapter shall emphasize premarital sexual abstinence and male responsibility. All applications must meet the following minimum standards for consideration:

(1)   Each initiative must have a plan of action for prevention of adolescent pregnancy that extends for at least five years. The proposal must include convincing evidence of a direct link between project activities and the reduction of adolescent pregnancy in the target population.

(2)   Each initiative must have realistic, specific, and measurable goals, objectives, timelines, and budget for the prevention of adolescent pregnancy.

(3)   The proposal must include a description of the method for collecting and reporting the data required by the department to evaluate the effectiveness of the initiative as specified in Section 44-122-60. Each initiative, before submitting its proposal, must send a representative to the evaluation standards workshop sponsored by the department.

(B)   Continuation of funding for a local teen pregnancy prevention initiative is contingent upon:

(1)   successful evaluation of the effectiveness of the contractor's performance in achieving its short term outcomes within the first two years of receiving money and in achieving the fund's long term outcome by the end of the third year of receiving money; and

(2)   the contractor updating information concerning the nature of the problem in its target population, available resources, and potential barriers to success, with appropriate changes in the initiative's goals, objectives, timeliness, and budget.


Printed Page 3167 . . . . . Thursday, May 11, 2000

Section 44-122-50.     (A)   The Department of Social Services shall:

(1)   disburse the funds pursuant to Section 44-122-60, upon receiving notification from the county government that a contractor has been selected and determining that the contract and the process by which it was awarded are in compliance with federal requirements monitor the statewide administration of the fund;

(2)   evaluate the success of the initiatives funded under this chapter, as required by Section 44-122-60;

(3)   analyze all available information and report to the Governor and the General Assembly on the effectiveness of the fund in measurably reducing the rate of adolescent pregnancy in the State. These reports must be made annually, with the first report due three years after the first distribution of funds pursuant to Section 44-122-30(A); and

(4)   provide to each county government specific criteria required by this chapter.

(B)   County governments shall:

(1)   oversee and administer funds distributed to the county pursuant to Section 44-122-30(A). To access funds, the county government shall submit to the department the identity of the contractor, the amount of the contract, and a copy of the proposal;

(2)   choose from among the applicants that meet the minimum standards recommended by the inter-agency council for the county or select an appropriate applicant if no inter-agency council exists. Nothing in this act requires the establishment of an inter-agency council;

(3)   develop additional criteria in addition to those stated herein or established by the department, as necessary, to meet specific local needs; and

(4)   monitor contractors' progress in meeting stated goals, objectives, and timeliness.

(C)   Local interagency councils shall review applications for an allocation of funds and recommend to the county government those applications that meet the standards and criteria as stated herein or established by the department or the county government. If no local interagency council exists in a county, the county government shall determine whether applications meet the standards and criteria.

(CD)   Contractors shall:

(1)   comply with reporting, contracting, and evaluation requirements of the county government and the department;


Printed Page 3168 . . . . . Thursday, May 11, 2000

(2)   define and maintain cooperative ties with other community institutions;

(3)   coordinate and collaborate with other community entities, including county Teen Companion Programs, that have an interest in positive youth development and adolescent risk behavior reduction;

(4)   obtain approval from the county government and the department insofar as compliance with federal regulations is concerned before making changes in program goals, objectives, and target populations; and

(5)   before the beginning of each fiscal year, submit to the county government for approval a budget of planned expenditures, and at the end of each fiscal year, render an accounting of expenditures to the county government.

(6)   submit bi-annual summary program progress reports to the county government and the local interagency council, with copies to the department and the evaluator, beginning January 1, 2001, describing the status of the project and developments during the preceding six months.

(E)   The South Carolina Campaign to Prevent Teen Pregnancy shall, within funds appropriated or allocated for this purpose, provide technical assistance to contractors and other appropriate parties through training and information that includes but is not limited to best practices, strategic planning, and leadership development.

(D F)   The Department of Health and Environmental Control shall:

(1)   provide technical assistance and training to county governments and contractors, as needed, related to adolescent pregnancy prevention issues; and

(2)   if a community health assessment has been conducted in a county, share information with county governments, contractors, and program applicants about the nature of the problem, available resources, and potential barriers to the development of teen pregnancy prevention projects and activities.

Section 44-122-60.     An evaluation must be conducted by a firm or individual external to the department, on a schedule to be determined by the department and must assess the effectiveness of each initiative in meeting its short and long term outcomes. The evaluator will also assess adherence to national best practice models as well as fidelity to program design and delivery of services, and other indicia of success in reducing adolescent pregnancy and the risk factors that contribute to adolescent pregnancy. Evaluation standards must be consistent across all initiatives. The evaluation also must assess the effectiveness of each


Printed Page 3169 . . . . . Thursday, May 11, 2000

county government's efforts in measurably reducing the rate of adolescent pregnancy for the county. These efforts include administration of the fund and selection and oversight of contractors." /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SHORT explained the amendment.

The amendment was adopted.

Amendment No. 227

Senators RAVENEL, McCONNELL, LEVENTIS and RANKIN proposed the following Amendment No. 227 (12105AC00.DOC), which was adopted (#67):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

  /SECTION ____

TO AMEND SECTION 51-17-140, AS AMENDED, OF THE 1976 CODE, RELATING TO MAXIMUM ACREAGE THAT MAY BE ACQUIRED UNDER THE PROVISION OF THE HERITAGE TRUST PROGRAM, SO AS TO REQUIRE APPROVAL OF THE COUNTY COUNCIL WHERE HERITAGE TRUST PROPERTIES ARE TO BE ACQUIRED.

Section 51-17-140 of the 1976 Code as amended by Act 181 of 1993, is further amended to read:

"Section 51-17-140.   Not more than one hundred thousand acres total of real property shall be acquired in fee under the provisions of this chapter. Moreover, No acquisition shall may be made under this chapter in any county without written approval of a majority of the county delegation council in the county where the property is located Heritage Trust properties are to be acquired./

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS explained the amendment.

The amendment was adopted.


Printed Page 3170 . . . . . Thursday, May 11, 2000

Adoption of Amendment No. 239 Reconsidered
Amendment No. 239 Withdrawn

Having voted on the prevailing side, Senator RANKIN moved to reconsider the vote whereby Amendment No. 239 was adopted.

There was no objection.

The question then was the adoption of Amendment No. 239.

On motion of Senator RANKIN, with unanimous consent, Amendment No. 239 was withdrawn.

Amendment No. 260A

Senator RANKIN proposed the following Amendment 260A (BFD045.DOC), which was adopted (#68):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 9, Department of Health and Environmental Control, page 483, after line 26, by adding an appropriately numbered paragraph to read:

/ ( ) (DHEC: Coastal Management) Notwithstanding any other provisions of law, the Department may allocate up to two hundred fifty thousand dollars ($250,000) from carry forward funds to the Office of Ocean and Coastal Resource Management. This distribution must be used for stormwater permitting and regulation. /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

Amendment No. 306

Senator PASSAILAIGUE proposed the following Amendment No. 306 (4775R007.ELP), which was adopted (#69):

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

/   SECTION   ___.

TO AMEND SECTION 12-43-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNIFORM ASSESSMENT RATIOS, SO AS TO PROVIDE FOR THE ASSESSMENT OF CERTAIN COMMERCIAL TUGBOATS AT FIVE PERCENT OF FAIR MARKET VALUE.

A.   Section 12-43-220(f) of the 1976 Code is amended to read:


Printed Page 3171 . . . . . Thursday, May 11, 2000

"(f)   Except as specifically provided by law all other personal property shall be taxed on an assessment of ten and one-half percent of fair market value of such property except that commercial fishing boats and commercial tugboats shall be taxed on an assessment of five percent of fair market value. As used in this item `commercial fishing boats' shall mean boats licensed by the Department of Natural Resources which are used exclusively for commercial fishing, shrimping or crabbing. As used in this item, `commercial tugboats' shall mean boats used exclusively for harbor and ocean towing, documented with the U.S. Coast Guard, constructed of steel, and being at least eighty feet in length and having a gross tonnage of at least one hundred tons."

B.     This section is effective for tax year commencing January 1, 1999.   /

Renumber sections to conform.

Amend title to conform.

Senator PASSAILAIGUE explained the amendment.

Senator RICHARDSON argued contra to the adoption of the amendment.

Senator RICHARDSON moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 10; Nays 27

AYES

Alexander                 Bauer                     Branton
Giese                     Hayes                     Leatherman
Peeler                    Richardson                Ryberg
Waldrep

Total--10

NAYS

Anderson                  Bryan                     Drummond
Ford                      Glover                    Gregory
Grooms                    Hutto                     Jackson
Land                      Leventis                  Martin

Printed Page 3172 . . . . . Thursday, May 11, 2000

Matthews                  McConnell                 Mescher
Moore                     Passailaigue              Patterson
Rankin                    Reese                     Russell
Setzler                   Short                     Smith, J. Verne
Thomas                    Washington                Wilson

Total--27

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator BAUER spoke on the amendment.

By a division vote of 27-8, Amendment No. 306 was adopted.

Amendment No. 309

Senators ALEXANDER, LAND, LEATHERMAN, HUTTO, GROOMS, JACKSON, HOLLAND, RAVENEL, PATTERSON and THOMAS proposed the following Amendment No. 309 (4775R213.TCA), which was adopted (#70):

Amend the bill, as and if amended, Part II, by adding a new SECTION:

  / SECTION _____

TO AMEND SECTION 56-3-840, AS AMENDED, OF THE 1976 CODE, RELATING TO DELINQUENT REGISTRATION, SO AS TO UPDATE THE REFERENCE DATE FOR THE BUILDING FUND INCLUDING THE REVENUES AND TO PROVIDE THAT THE BUDGET AND CONTROL BOARD SHALL APPROVE CERTAIN BUILDING PROJECTS.

A.   The last paragraph in Section 56-3-840 of the 1976 Code is amended to read:

"All monies collected pursuant to this section, not to exceed 2.7 million dollars or the actual revenues collected in fiscal year 1998-99 1999-2000, whichever is less, must be annually deposited to a separate account and held in reserve for the department. Notwithstanding any other provision of law, these monies must be deposited to the credit of the department into a special fund in the office of the State Treasurer called designated as the 'Department of Public Safety Building Fund'. The department must use these monies and other unobligated monies for the purpose of issuing revenue bonds or for entering into a lease purchase agreement for a headquarters building facility, including the renovation of existing facilities. All monies credited to the special


Printed Page 3173 . . . . . Thursday, May 11, 2000

account fund that exceed the funds necessary for the purposes authorized in this section must be used for other capital projects throughout the state. The department is authorized to initiate and direct a capital project to purchase or construct a new headquarters facility. Projects funded under this section other than for the construction or purchase of a new headquarters building facility, including but not limited to, the expansion or renovation to the of an existing facility, must be approved by a joint resolution provided that if the department employs a lease purchase agreement to build or purchase a new headquarters facility, the lease purchase agreement must be approved by the Budget and Control Board. The cost of a headquarters building facility must not exceed thirty million dollars unless a parking facility or garage is required."

B.     This section takes effect July 1, 2001.   /

Amend the bill further, as and if amended, Part IB, page 578, lines 24 through 32, by deleting proviso 72.78 in its entirety.

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

Amendment No. 310

Senator RYBERG proposed the following Amendment No. 310 (9644HTC00.DOC), which was not adopted:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, by adding an appropriately numbered SECTION at the end to read:

  / SECTION __

TO AMEND THE 1976 CODE BY ADDING SECTION 41-7-75 SO AS TO REQUIRE THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION TO ENSURE COMPLIANCE WITH THE PROVISIONS OF CHAPTER 7, TITLE 41, CONCERNING "THE RIGHT TO WORK" AND TO AUTHORIZE CERTAIN POWERS AND IMPART DUTIES TO CARRY THIS OUT; BY ADDING SECTION 41-7-100 SO AS TO ESTABLISH PENALTIES FOR VIOLATIONS OF CHAPTER 7, TITLE 41, AND TO REQUIRE THE DIRECTOR TO PROMULGATE REGULATIONS ESTABLISHING PROCEDURES FOR ADMINISTRATIVE REVIEW OF PENALTIES ASSESSED; TO AMEND SECTION 41-7-30 RELATING TO PROHIBITING AN EMPLOYER FROM REQUIRING OR PROHIBITING


Printed Page 3174 . . . . . Thursday, May 11, 2000

MEMBERSHIP IN A LABOR ORGANIZATION AS A CONDITION OF EMPLOYMENT SO AS TO INCLUDE IN THE PROHIBITION AN AGREEMENT OR PRACTICE THAT HAS THE EFFECT OF REQUIRING SUCH MEMBERSHIP AND TO PROHIBIT A LABOR ORGANIZATION FROM INDUCING AN EMPLOYER TO VIOLATE THIS SECTION; TO AMEND SECTION 41-7-40 RELATING TO THE AUTHORITY TO DEDUCT LABOR ORGANIZATION MEMBERSHIP DUES FROM WAGES SO AS TO AUTHORIZE SUCH DEDUCTION IF AN EMPLOYEE ENTERS A WRITTEN AGREEMENT AUTHORIZING THE DEDUCTION; TO AMEND SECTION 41-7-90 RELATING TO REMEDIES FOR VIOLATIONS OF RIGHTS SO AS TO CREATE A PRIVATE CAUSE OF ACTION ON BEHALF OF AN EMPLOYEE AGGRIEVED BY VIOLATIONS OF THIS CHAPTER; AND TO PROVIDE FOR THE IMPLEMENTATION AND ENFORCEMENT OF THIS ACT BY PROVIDING TEN THOUSAND DOLLARS FROM "OTHER OPERATING FUNDS" APPROPRIATED TO THE DEPARTMENT OF LABOR, LICENSING, AND REGULATION IN SECTION 50, ITEM 1, PART IA OF THIS ACT.

A.   The 1976 Code is amended by adding:

"Section 41-7-75.   (A)   The Director of the South Carolina Department of Labor, Licensing and Regulation or his designee shall ensure compliance with this chapter and shall cooperate with an employee in the investigation and enforcement of a meritorious claim against an employer. Hearings may be held to satisfy the director as to the justice of any claim.

(B)   The Director of the Department of Labor, Licensing and Regulation or his designee may enter a place of employment for the purpose of evaluating compliance with this chapter. Any effort of a person or entity to obstruct the director or his designee in the performance of duties under this chapter are a violation of this chapter and punishable accordingly.

(C)   If the director or his designee is denied admission to a place of employment, a warrant may be obtained pursuant to Section 41-15-260."

B.   The 1976 Code is amended by adding:

"Section 41-7-100.   (A)   A person who violates the provisions of this chapter may be assessed by the Director of the Department of Labor, Licensing and Regulation a civil penalty of not more than one hundred dollars for each offense.


Printed Page 3175 . . . . . Thursday, May 11, 2000

(B)   The director shall promulgate regulations establishing procedures for administrative review of civil penalties assessed under this chapter."

C.   Section 41-7-30 of the 1976 Code is amended to read:

"Section 41-7-30.   (A)   It shall be is unlawful for any an employer to require an employee, as a condition of employment, or of continuance of employment to:

(1)   To require any employee, as a condition of employment, or of continuance of employment, to be or become or remain a member or affiliate of any a labor organization or agency;

(2)   To require any employee, as a condition of employment, or of continuance of employment, to abstain or refrain from membership in any a labor organization; or

(3) To require any employee, as a condition of employment, or of continuance of employment, to pay any fees, dues, assessments, or other charges or sums of money whatsoever to any a person or organization.

(B)   It is unlawful for a person or a labor organization to directly or indirectly participate in an agreement, arrangement, or practice that has the effect of requiring, as a condition of employment, that an employee be, become, or remain a member of a labor organization or pay to a labor organization any dues, fees, or any other charges; such an agreement is unenforceable.

(C)   It is unlawful for a person or a labor organization to induce, cause, or encourage an employer to violate a provision of this section."

D.   Section 41-7-40 of the 1976 Code is amended to read:

"Section 41-7-40.   Nothing in this chapter shall preclude any precludes an employer from deducting from the wages of the employees and paying over to any a labor organization, or its authorized representative, membership dues in a labor organization; provided, that however, the employer has must have received from each employee, on whose account such the deductions are made, a written assignment which shall not only may be irrevocable for a period of more than one year, or beyond until the termination date of any applicable collective agreement or assignment, whichever occurs sooner."

E.   Section 41-7-90 of the 1976 Code is amended to read:

"Section 41-7-90.   (A)   A person who may be caused to be denied or denied employment or be deprived of continuation of employment through force, intimidation, obstruction, interference, or threat of these or in violation of this chapter is entitled to recover from the employer


Printed Page 3176 . . . . . Thursday, May 11, 2000

and from any other person, firm, corporation, or association by appropriate action in the courts of this State such damages as the person may have sustained by reason of the denial or deprivation of employment including, in the discretion of the court or jury, punitive damages in addition to the actual damages.

(B)   Any A person whose rights are adversely affected by any a contract, agreement, assemblage, or other act or thing done or threatened to be done and declared to be unlawful or prohibited by this chapter shall have has the right to apply to any a court having general equity jurisdiction for appropriate relief. The court, in any such proceeding, may grant and issue such restraining, and other, orders as may be appropriate, including an injunction restraining and enjoining the performance, continuance, maintenance, or commission of any such contract, agreement, assemblage, act or thing, and may determine and award, as justice may require, any actual damages, costs, and attorneys' fees which have been sustained or incurred by any a party to the action, and, in the discretion of the court or jury, punitive damages in addition to the actual damages. The provisions of this section are cumulative and are in addition to all other remedies now or hereafter provided by law."

F.   From "other operating expenses" appropriated to the Department of Labor, Licensing, and Regulation in Section 50, item 1, Part IA of this act, the sum of ten thousand dollars must be used to implement and enforce the provisions of this act. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RYBERG explained the amendment.

Point of Order

Senator HUTTO raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senators RYBERG, PATTERSON and McCONNELL spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

The question then was the adoption of Amendment No. 310.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 15; Nays 23


Printed Page 3177 . . . . . Thursday, May 11, 2000

AYES

Alexander                 Bauer                     Courson *
Giese                     Gregory                   Grooms
Leatherman                Martin                    Mescher
Peeler                    Richardson                Russell
Ryberg                    Thomas                    Wilson

Total--15

NAYS

Anderson                  Branton                   Bryan
Drummond                  Ford                      Glover
Hayes                     Hutto                     Jackson
Land                      Leventis                  Matthews
McConnell                 Moore                     Passailaigue
Patterson                 Rankin                    Ravenel *
Reese                     Short                     Smith, J. Verne
Waldrep                   Washington

Total--23

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

Having failed to receive the required vote, Amendment 310 was not adopted.

Amendment No. 313

Senators SALEEBY, BRANTON, McCONNELL, ELLIOTT and PASSAILAIGUE proposed the following Amendment No. 313 (4775R214.WSB), which was adopted (#71):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  / SECTION _____

TO AMEND SECTION 1-11-720, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENTITIES WHOSE EMPLOYEES AND RETIREES ARE ELIGIBLE FOR STATE HEALTH AND DENTAL INSURANCE PLANS SO AS TO ADD THE EMPLOYEES AND RETIREES OF CITY, COUNTY, REGIONAL, AND CONSOLIDATED HOUSING AUTHORITIES.


Printed Page 3178 . . . . . Thursday, May 11, 2000

A.     Section 1-11-720(A) of the 1976 Code, as last amended by Act 100 of 1999, is further amended by adding appropriately numbered items at the end to read:

"( )   housing authorities as provided for in Chapter 3, Title 31;

( )   the Greenville-Spartanburg Airport District;

( )   cooperative educational service center employees."

B.     Section 1-11-720(A) of the 1976 Code is amended to read:

"(7)   special purpose districts created by act of the General Assembly that provide gas, water, fire, sewer, recreation, or hospital service, or any combination of these services;"

C.     Section 1-11-720(A) of the 1976 Code, as last amended by Act 100 of 1999, is further amended by adding a new item at the end:

"(19)   soil and water conservation districts established pursuant to Title 48, Chapter 9."   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator BRANTON explained the amendment.

The amendment was adopted.

Amendment No. 314A

Senators MOORE and HUTTO proposed the following Amendment No. 314A (4775R066.TLM), which was adopted (#72):

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

  /   SECTION ____

TO AMEND THE 1976 CODE BY ADDING SECTION 59-63-75 SO AS TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2000-2001, EACH SCHOOL DISTRICT SHALL DEVELOP A CHARACTER EDUCATION PROGRAM IN EACH SCHOOL OF THE DISTRICT TO BE INTEGRATED INTO THE SCHOOL'S CURRICULUM RATHER THAN BEING TAUGHT AS A STAND-ALONE COURSE, AND TO REQUIRE AS PART OF THIS CHARACTER EDUCATION PROGRAM THAT STUDENTS IN PUBLIC SCHOOLS OF A DISTRICT, BEGINNING WITH SCHOOL YEAR 2000-2001 FOR STUDENTS IN GRADES K-5 AND ON A PHASED IN BASIS AFTER THAT FOR OTHER STUDENTS, ADDRESS SCHOOL EMPLOYEES IN A RESPECTFUL MANNER BY USING SPECIFIC TERMS, AND TO PROVIDE THAT EACH SCHOOL DISTRICT BOARD OF TRUSTEES SHALL


Printed Page 3179 . . . . . Thursday, May 11, 2000

INCORPORATE THE ABOVE INTO EXISTING DISCIPLINARY POLICIES.

The 1976 Code is amended by adding:

"Section 59-63-75.     (A)   Each school district shall develop a character education program in each school in the district. The character education program must be in place at the beginning of the 2000-2001 school year, and must emphasize the core values of good citizenship, respect, honesty, patriotism, diligence, integrity, and responsibility. The program shall be integrated into the school's curriculum, rather than being taught as a stand-alone course.

(B)(1)   As part of the character education program required in subsection (A), beginning with the 2000-2001 school year according to the schedule referenced in item (2) below, each school district board of trustees shall require students in the public schools under the jurisdiction of the board to exhibit appropriate conduct as required in subsection (C) of this section.

(2)   The provisions of subsection (C) shall apply according to the following schedule:

(a)   beginning with school year 2000-2001, students in grades K-5;

(b)   beginning with school year 2001-2002, students in grades K-6;

(c)   beginning with school year 2002-2003, students in grades K-7;

(d)   beginning with school year 2003-2004, students in grades K-8;

(e)   beginning with school year 2004-2005, students in grades K-9;

(f)   beginning with school year 2005-2006, students in grades K-10;

(g)   beginning with school year 2006-2007, students in grades K-11;

(h)   beginning with school year 2007-2008, students in grades K-12.

(C)   When a public school student is speaking with a public school employee while on school property or at a school sponsored event, the student shall address and respond to the public school employee by using respectful terms such as:

(1)   'yes, ma'am' and 'no, ma'am';

(2)   'yes, sir' and 'no, sir';

(3)   'yes, please';


Printed Page 3180 . . . . . Thursday, May 11, 2000

(4)   'no, thank you';

(5)   'yes, Miss, Mrs., Ms., Dr., or Principal (surname)';

(6)   'no, Miss, Mrs., Ms., Dr., or Principal (surname)';

(7)   'yes, Mr., Dr., or Principal (surname)';

(8)   'no, Mr., Dr., or Principal (surname)'.

(D)   Each school district board of trustees shall provide for incorporation of the requirements of this section into any existing discipline policy or policies or any code of conduct of the school district or of each school within its jurisdiction.

(E)   Each school district board of trustees shall take or provide for such appropriate actions necessary to discipline a student who fails to comply with the requirements of subsection (C) of this section. However, no school board may provide suspension nor expulsion from school as an appropriate punishment for violation of the mandates of this section."   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

Amendment No. 315

Senator MARTIN proposed the following Amendment No. 315 (4775R062.LAM), which was ruled out of order:

Amend the bill, as and if amended, Part II, Permanent Provisions, by adding an appropriately numbered SECTION to read:

/ SECTION ____

THE 1976 CODE IS AMENDED BY ADDING SECTION 10-11-335 SO AS TO ESTABLISH A MISDEMEANOR FOR VANDALIZING, DEFACING, DESTROYING, MUTILATING, BURNING OR OTHERWISE DAMAGING ANY PUBLICLY OWNED STATUE, MONUMENT, MEMORIAL, FENCE, FLAG, OR FLAGPOLE PLACED BY THE STATE ON THE CAPITAL GROUNDS; AND TO PROVIDE PENALTIES.

Chapter 11, Title 10 of the 1976 Code is amended by adding:

"Section 10-11-335.   (A)   It is unlawful for a person to wilfuly and maliciously vandalize, deface, destroy, mutilate, burn, or otherwise damage or attempt to vandalize, deface, destroy, mutilate, burn or otherwise damage any publicly owned statue, monument, memorial,


Printed Page 3181 . . . . . Thursday, May 11, 2000

fence, flag, flagpole, placed by the State of South Carolina on the capital grounds.

(B)   A person who violates the provisions of this section is guilty of a:

(1)   felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both, if the injury to the property or the property loss is worth five thousand dollars or more;

(2)   felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both, if the injury to the property or the property loss is worth more than one thousand dollars but less than five thousand dollars;

(3)   misdemeanor triable in magistrate's court if the injury to the property or the property loss is worth one thousand dollars or less. Upon conviction, the person must be fined or imprisoned, or both, as permitted by law and without presentment or indictment of the grand jury."   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MARTIN explained the amendment.

Point of Order

Senator MATTHEWS raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Amendment No. 311

Senator MOORE asked unanimous consent to make a motion to take up Amendment Nos. 311 and 312 for immediate consideration.

There was no objection.

Senators PASSAILAIGUE, MOORE and McCONNELL proposed the following Amendment No. 311 (9642HTC00.DOC), which was adopted (#73):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part IB, SECTION 69B, State Aid to Subdivisions, State Treasurer, page 555, by adding an appropriately numbered paragraph to read:


Printed Page 3182 . . . . . Thursday, May 11, 2000

/ 69B.__.   (AS-TREAS: State Aid to Subdivisions Distribution) Amounts appropriated to the Local Government Fund in Section 69B, Part IA of this act must be used to make the fiscal year 2000-2001, July, October, January, and April distribution to counties and municipalities required pursuant to Chapter 27, Title 6 of the 1976 Code, the State Aid to Subdivisions Act./

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

On motion of Senator RYBERG, with unanimous consent, the remarks of Senator PASSAILAIGUE, when reduced to writing and made available to the Desk, would be printed in the Journal.

Senator PEELER spoke on the amendment.

RECESS

At 1:05 A.M., with Senator PEELER retaining the floor, on motion of Senator MOORE, with unanimous consent, the Senate receded from business not to exceed ten minutes.

At 2:40 A.M., the Senate resumed.

Senator PEELER continued speaking on the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 31; Nays 5

AYES

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Drummond
Ford                      Giese                     Glover
Grooms                    Hutto                     Jackson
Land                      Leatherman                Leventis
Martin                    Matthews                  Mescher
Moore                     Passailaigue              Patterson
Peeler                    Rankin                    Reese
Russell                   Setzler                   Short

Printed Page 3183 . . . . . Thursday, May 11, 2000

Smith, J. Verne           Thomas                    Waldrep
Washington

Total--31

NAYS

Gregory                   Hayes                     Richardson
Ryberg                    Wilson

Total--5

The amendment was adopted.

Amendment No. 312A

Senators PASSAILAIGUE, MOORE and McCONNELL proposed the following amendment (4775R067.ELP), which was adopted (#74):

Amend the bill as and if amended, Part IV, Fiscal Year 1999-2000 Surplus Appropriations, page 732, by striking Section 1 and inserting:

/ SECTION 1.(A)   The sources of general fund revenues appropriated in Section 2 of this part is $130,043,037 in projected fiscal year 1999-2000 surplus and $54,514,000 in lapsed general fund appropriations by changing from fiscal year 1999-2000 to fiscal year 2000-2001 the accounting for the July, 2000 distribution pursuant to Chapter 27, Title 6 of the 1976 Code, the State Aid to Subdivisions Act and as provided in subsection (B) of this section.

(B)   Of the funds appropriated in Act 136 of 1999, $6,500,000 for the Local Government Fund must lapse to the general fund of the State for fiscal year 1999-2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

Amendment No. 316

Senators RANKIN and THOMAS proposed the following Amendment No. 316 (4775R060.LAR), which was adopted (#75):

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

  / SECTION __

TO AMEND SECTION 16-11-700, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE


Printed Page 3184 . . . . . Thursday, May 11, 2000

OFFENSE OF DUMPING LITTER OR OTHER SOLID WASTE ON PUBLIC OR PRIVATE PROPERTY, SO AS TO INCREASE THE MONETARY PENALTY, THE LENGTH OF TIME FOR PUBLIC SERVICE WORK THE COURT SHALL IMPOSE, AND TO PROVIDE FOR THE IMPOSITION OF POINTS ON THE PERSON'S DRIVER'S LICENSE IF THE VIOLATION OF THIS SECTION OCCURRED WHILE THE OFFENDER WAS OPERATING A MOTOR VEHICLE; AND TO AMEND SECTION 56-1-720, RELATING TO THE POINT SYSTEM FOR VIOLATIONS OF MOTOR VEHICLE TRAFFIC LAWS, BY ADDING LITTERING WHILE OPERATING A MOTOR VEHICLE TO THE OFFENSES FOR WHICH POINTS ARE ASSESSED.

Section 16-11-700, as last amended by Act 100 of 1999, is further amended to read:

"Section 16-11-700.   (A)   No person may dump, throw, drop, deposit, discard, or otherwise dispose of litter or other solid waste, as defined by Section 44-96-40(46), upon any public or private property or waters in the State whether from a vehicle or otherwise, including, but not limited to, a public highway, public park, beach, campground, forest land, recreational area, trailer park, highway, road, street, or alley except:

(1)   when the property is designated by the State for the disposal of litter and other solid waste and the person is authorized to use the property for that purpose;

(2)   into a litter receptacle in a manner that the litter is prevented from being carried away or deposited by the elements upon a part of the private or public property or waters.

(B)   Responsibility for the removal of litter from property or receptacles is upon the person convicted under this section of littering the property or receptacles. However, if there is no conviction, the responsibility is upon the owner of the property or upon the owner of the property where the receptacle is located.

(C)(1)   A person who violates the provisions of this section in an amount less than fifteen pounds in weight or twenty-seven cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned for not more than thirty days for each offense for a first or second conviction, or fined five hundred dollars or imprisoned for not more than thirty days for a third or subsequent conviction. In addition to a the fine or term of imprisonment and for each offense under the provisions of this item, the court shall must also impose a


Printed Page 3185 . . . . . Thursday, May 11, 2000

minimum of five fifteen hours of litter-gathering labor for a first conviction, thirty hours of litter-gathering labor for a second conviction, and 100 hours of litter-gathering labor for a third or subsequent conviction, or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court. One hundred dollars of the fine imposed by this item must be deposited in the state's general fund and used by the Office of the Governor to fund a litter control campaign.

(2)   The fine for a deposit of a collection of litter or garbage in an area or facility not intended for public deposit of litter or garbage is one thousand dollars. The provisions of this item apply to a deposit of litter or garbage, as defined in Section 44-67-30(4), in an area or facility not intended for public deposit of litter or garbage, but this does not prohibit a private property owner from depositing litter or garbage as a property enhancement if the depositing does not violate applicable local or state health and safety regulations. In addition to a fine and for each offense under the provisions of this item the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court. Eight hundred dollars of the fine imposed by this item must be deposited in the states state's general fund and used by the Office of the Governor to fund a litter control campaign.

(3)   The court, in lieu of payment of the monetary fine imposed for a violation of this section, may direct the substitution of additional litter-gathering labor or other form of public service as it may order because of physical or other incapacities, under the supervision of the court, not to exceed one hour for each five dollars of fine imposed.

(4)   For a second and subsequent convictions under the provisions of items (1) or (2) of this subsection, a minimum of twenty hours of community service must be imposed in addition to a fine.

(5)   In addition to any other punishment authorized by this section, in the discretion of the court in which conviction is obtained, the person may be directed by the judge to pick up and remove from any public place or any private property, with prior permission of the legal owner upon which it is established by competent evidence that the person has deposited litter, all litter deposited on the place or property by anyone before the date of execution of sentence.

(6)(5)   Magistrates and municipal courts have jurisdiction to try violations of subsections (A), (B), (C), and (D) of this section.


Printed Page 3186 . . . . . Thursday, May 11, 2000

(D)   Any person who violates the provisions of this section in an amount exceeding fifteen pounds in weight or twenty-seven cubic feet in volume, but not exceeding five hundred pounds or one hundred cubic feet, is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than five hundred dollars or imprisoned for not more than ninety days. In addition, the court shall require the violator to pick up litter or perform other community service commensurate with the offense committed.

(E)(1)   Any person who violates the provisions of this section in an amount exceeding five hundred pounds in weight or one hundred cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than five hundred dollars nor more than one thousand dollars, or imprisoned not more than one year, or both. In addition, the court may order the violator to:

(a)   remove or render harmless the litter that he dumped in violation of this subsection;

(b)   repair or restore property damaged by, or pay damages for damage arising out of, his dumping litter in violation of this subsection; or

(c)   perform community public service relating to the removal of litter dumped in violation of this subsection or relating to the restoration of an area polluted by litter dumped in violation of this subsection.

(2)   A court may enjoin a violation of this subsection.

(3)   A motor vehicle, vessel, aircraft, container, crane, winch, or machine involved in the disposal of more than five hundred pounds in weight or more than one hundred cubic feet in volume of litter in violation of this subsection is declared contraband and is subject to seizure and summary forfeiture to the State.

(4)   If a person sustains damages arising out of a violation of this subsection that is punishable as a felony, a court, in a civil action for such damages, shall order the person to pay the injured party threefold the actual damages or two hundred dollars, whichever amount is greater. In addition, the court shall order the person to pay the injured party's court costs and attorney's fees.

(5)   No part of a fine imposed pursuant to this section may be suspended.

(6)   [Repealed]

(F)   For purposes of the offenses established by this section, litter includes cigarettes and cigarette filters."     /

Renumber sections to conform.


Printed Page 3187 . . . . . Thursday, May 11, 2000

Amend sections, totals and title to conform.

Senator RANKIN moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 318

Senator RANKIN proposed the following Amendment No. 318 (4775R066.LAR), which was adopted (#76):

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

  /   SECTION   ___

TO AMEND SECTION 33-44-211 OF THE 1976 CODE, RELATING TO CORPORATE ANNUAL REPORT FILING, SO AS TO REQUIRE LIMITED LIABILITY COMPANIES, SUBSEQUENT TO FILING THEIR INITIAL ANNUAL REPORT, TO FILE ALL ANNUAL REPORTS ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR.

Section 33-44-211(c) of the 1976 Code is amended to read:

"(c)   The first annual report must be delivered to the Secretary of State between January first and April first of the year following the calendar year in which a limited liability company was organized or a foreign company was authorized to transact business. Subsequent annual reports must be delivered with an appropriate fee not to exceed two dollars and fifty cents to the Secretary of State between January first and April first of the ensuing calendar years on or before the fifteenth day of the third month following the close of the taxable year."   /

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

Amendment No. 319

Senators BRANTON, HAYES, WALDREP and HUTTO proposed the following Amendment No. 319 (9646HTC00.DOC), which was adopted (#77):

(Reference is the Senate Finance Committee Report)

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


Printed Page 3188 . . . . . Thursday, May 11, 2000

  / SECTION __

TO AMEND SECTION 22-8-40, AS AMENDED, OF THE 1976 CODE, RELATING TO THE SALARY OF MAGISTRATES AND THE NUMBER OF MAGISTRATES AUTHORIZED IN A COUNTY, SO AS TO ALLOW A MAGISTRATE TO COUNT PRIOR SERVICE AS A MAGISTRATE FOR PURPOSES OF SALARY PAID TO A MAGISTRATE IN THE MAGISTRATE'S INITIAL TERM.

Section 22-8-40 of the 1976 Code, as last amended by Act 226 of 2000, is further amended by adding an appropriately lettered subsection at the end to read:

"( )   For purposes of the salary phase-in provided in subsection (B)(1) of this section, a magistrate with prior service as a magistrate who after a break in service is again appointed magistrate, is allowed credit for the prior service."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator BRANTON explained the amendment.

The amendment was adopted.

Amendment No. 320

Senator PASSAILAIGUE proposed the following Amendment No. 320 (4775R122.ELP), which was adopted (#78):

Amend the bill, as and if amended, Part II, by adding a new SECTION to read:

  / SECTION ___

TO AMEND SECTION 12-37-250, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE HOMESTEAD EXEMPTION FOR TAXPAYERS SIXTY-FIVE AND OVER AND THOSE TOTALLY AND PERMANENTLY DISABLED OR LEGALLY BLIND, SO AS TO INCREASE THE EXEMPTION FROM TWENTY THOUSAND TO FIFTY THOUSAND DOLLARS OF THE FAIR MARKET VALUE OF THE DWELLING PLACE.

Section 12-37-250 of the 1976 Code is amended to read:

"Section 12-37-250.   Beginning in tax year 2000, the The first twenty fifty thousand dollars of the fair market value of the dwelling place of a person is exempt from county, municipal, school, and special assessment real estate property taxes when the person has been a resident of this State for at least one year and has reached the age of


Printed Page 3189 . . . . . Thursday, May 11, 2000

sixty-five years on or before December thirty-first, the person has been classified as totally and permanently disabled by a state or federal agency having the function of classifying persons, or the person is legally blind as defined in Section 43-25-20, preceding the tax year in which the exemption is claimed and holds complete fee simple title or a life estate to the dwelling place. A person claiming to be totally and permanently disabled, but who has not been classified by one of the agencies, may apply to the State Agency of Vocational Rehabilitation. The agency shall make an evaluation of the person using its own standards. The exemption includes the dwelling place when jointly owned in complete fee simple or life estate by husband and wife, and either has reached sixty-five years of age, or is totally and permanently disabled, or legally blind under this section, before January first of the tax year in which the exemption is claimed, and either has been a resident of the State for one year. The exemption must not be granted for the tax year in which it is claimed unless the person or his agent makes written application for the exemption before July sixteenth of that tax year. If the person or his agent makes written application for the exemption after July fifteenth, the exemption must not be granted except for the succeeding tax year for a person qualifying under this section when the application is made. However, if application is made after July fifteenth of that tax year but before the first penalty date on property taxes for that tax year by a person qualifying under this section when the application is made, the taxes due for that tax year must be reduced to reflect the exemption provided in this section. The application for the exemption must be made to the auditor of the county and to the governing body of the municipality in which the dwelling place is located upon forms provided by the county and municipality and approved by the Comptroller General, and a failure to apply constitutes a waiver of the exemption for that year. Beginning with tax year 1979 the auditor, as directed by the Comptroller General, shall notify the municipality of all applications for a homestead exemption within the municipality and the information necessary to calculate the amount of the exemption. `Dwelling place' means the permanent home and legal residence of the applicant.

When any person would be entitled to a homestead tax exemption under this section except that he does not own the real property on which his dwelling place is located and his dwelling place is a mobile home owned by him located on property leased from another, such mobile home shall be exempt from personal property taxes to the same extent and obtained in accordance with the same procedures as is


Printed Page 3190 . . . . . Thursday, May 11, 2000

provided for in this section for an exemption from real property taxes; provided, however, that no person shall receive such an exemption from both real and personal property taxes in the same year.

When a dwelling house and legal residence is located on leased or rented property and such dwelling house is owned and occupied by the owner even though at the end of the lease period the lessor becomes owner of the residence, the owner lessee shall qualify for and be entitled to a homestead exemption in the same manner as though he owned a fee simple or life estate interest in the leased property on which his dwelling house is located.

When any person who was entitled to a homestead tax exemption under this section dies or any person who was not sixty-five years of age or older, blind, or disabled on or before December thirty-first preceding the application period, but was at least sixty-five years of age, blind, or disabled at the time of his death and was otherwise entitled dies and the surviving spouse is at least fifty years of age and acquires complete fee simple title or a life estate to the dwelling place within nine months after the death of the spouse, the dwelling place is exempt from real property taxes to the same extent and obtained in accordance with the same procedures as are provided for in this section for an exemption from real property taxes so long as the spouse remains unmarried and the dwelling place is utilized as the permanent home and legal residence of the spouse. A surviving spouse who disposes of the dwelling place and acquires another residence in this State for use as a dwelling place may apply for and receive the exemption on the newly acquired dwelling place. The spouse shall inform the county auditor of the change in address of the dwelling place.

The term `permanently and totally disabled' as used herein shall mean the inability to perform substantial gainful employment by reason of a medically determinable impairment, either physical or mental, which has lasted or is expected to last for a continuous period of twelve months or more or result in death.

The Comptroller General shall reimburse the state agency of Vocational Rehabilitation for the actual expenses incurred in making decisions relative to disability from funds appropriated for homestead reimbursement.

The Comptroller General shall promulgate such rules and regulations as may be necessary to carry out the provisions herein.

Nothing herein shall be construed as an intent to cause the reassessment of any person's property.


Printed Page 3191 . . . . . Thursday, May 11, 2000

The provisions of this section apply to life estates created by will and also to life estates otherwise created.

The homestead tax exemption must be granted in the amount in this paragraph to those persons who own a dwelling in part in fee or in part for life when the persons satisfy the other conditions of the exemption. The amount of the exemption must be determined by multiplying the percentage of the fee or life estate owned by the person by the full exemption. For purposes of the calculation required by this paragraph, a percentage of ownership less than five percent is considered to be five percent. The exemption may not exceed the value of the interest owned by the person."     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 36; Nays 0

AYES

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Drummond
Ford                      Giese                     Glover
Gregory                   Grooms                    Hayes
Hutto                     Jackson                   Land
Leatherman                Leventis                  Martin
Matthews                  Mescher                   Moore
Passailaigue              Patterson                 Peeler
Rankin                    Reese                     Richardson
Russell                   Ryberg                    Setzler
Short                     Smith, J. Verne           Thomas
Waldrep                   Washington                Wilson

Total--36

NAYS

Total--0

The amendment was adopted.


Printed Page 3192 . . . . . Thursday, May 11, 2000

Amendment No. 321

Senators GROOMS and BRANTON proposed the following Amendment No. 321 (9647HTC00.DOC), which was adopted (#79):

(Reference is the Senate Finance Committee Report)

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

  /SECTION ____

THE 1976 CODE IS AMENDED BY ADDING SECTION 44-1-290, SO AS TO REQUIRE BUSINESSES THAT MUST DISPLAY A FOOD SERVICE PERMIT TO ALSO DISPLAY A "KEEP SOUTH CAROLINA CLEAN" SIGN WHICH MUST ALSO INCLUDE LITTERING PENALTIES AND TO REQUIRE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO PROVIDE THE SIGN.

The 1976 Code is amended by adding:

"Section 44-1-290.   A business establishment that is required by law to display a food service permit must also display a sign that is six inches by six inches stating in bold print 'Keep South Carolina Clean'. The sign also must include the maximum penalties for littering. The Department of Health and Environmental Control shall provide this self-adhesive sign to these establishments in the same manner the department provides food service permit signs."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GROOMS explained the amendment.

The amendment was adopted.

Amendment No. 54

Senators LEATHERMAN and BAUER proposed the following Amendment No. 54 (21373SD00.DOC), which was adopted (#80):

(Reference is the Senate Finance Committee Report)

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

  / SECTION _____

TO AMEND THE 1976 CODE BY ADDING SECTION 10-1-205 SO AS TO REQUIRE COMPUTERS IN PUBLIC LIBRARIES, PUBLIC SCHOOL LIBRARIES, AND LIBRARIES IN PUBLIC INSTITUTIONS OF HIGHER LEARNING WHICH CAN ACCESS THE INTERNET AND ARE AVAILABLE FOR USE BY THE


Printed Page 3193 . . . . . Thursday, May 11, 2000

PUBLIC OR STUDENTS TO HAVE ITS COMPUTER-USE POLICIES DETERMINED BY LIBRARY GOVERNING BOARD WHICH USE POLICIES MUST BE DESIGNED TO REDUCE THE ABILITY OF A USER TO ACCESS WEB SITES DISPLAYING OBSCENE OR PORNOGRAPHIC MATERIAL; AND TO AMEND SECTION 15-78-60, AS AMENDED, RELATING TO EXCEPTIONS TO THE WAIVER OF IMMUNITY UNDER THE TORT CLAIMS ACT, SO AS TO INCLUDE THE FAILURE OF A LIBRARY'S GOVERNING BOARD TO ADOPT THE POLICIES REQUIRED ABOVE.

(A)   The 1976 Code is amended by adding:

"Section 10-1-205.     A computer which:

(1)   is located in a lending library supported by public funds, public school library or media arts center, or in the library of a public institution of higher learning as defined in Section 59-103-5;

(2)   can access the Internet; and

(3)   is available for use by the public or students, or both;

shall have its use policies determined by the library's or center's governing boards, as appropriate. The governing boards must adopt policies intended to reduce the ability of the user to access web sites displaying information or material in violation of Article 3 of Chapter 15 of Title 16."

(B)   Section 15-78-60, as last amended by Act 77 of 1999, is further amended by adding a new item at the end:

"(35)   the failure of a library's or media arts center's governing board to adopt policies as provided in Section 10-1-205."

(C)   This section takes effect July 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GROOMS explained the amendment.

The amendment was adopted.

Amendment No. 120

Senator RAVENEL proposed the following Amendment No. 120 (12064AC00.DOC), which was ruled out of order:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, Permanent Provision, by adding an appropriately numbered SECTION to read:


Printed Page 3194 . . . . . Thursday, May 11, 2000

  /SECTION _____

TO AMEND ARTICLE 1, CHAPTER 11, TITLE 50 OF THE 1976 CODE, RELATING TO THE PROTECTION OF GAME, BY ADDING SECTION 50-11-95 SO AS TO PROHIBIT HUNTING AN ANIMAL WITH A WEAPON INSIDE AN ENCLOSURE WHICH PREVENTS OR MATERIALLY IMPEDES THE FREE RANGE OF THE ANIMAL AND TO PROVIDE PENALTIES.

Article 1, Chapter 11, Title 50 of the 1976 Code is amended by adding:

"Section 50-11-95.   (A)   It is unlawful to hunt an animal with a weapon inside an enclosure which prevents or materially impedes the free range of the animal being hunted.

(B)   A person who violates a provision of this section is guilty of a misdemeanor and, upon conviction, must be fined not less than one thousand dollars or more than two thousand five hundred dollars or imprisoned for not less than one year or more than three years, or both. The hunting and fishing privileges of a person convicted under the provisions of this section must also be suspended for two years. In addition, the court in which a person violating this section is convicted may order that restitution be paid to the department of not less than one thousand five hundred dollars for each animal taken in violation of this section."/

Renumber sections to conform.

Amend sections, totals and title to conform.

Point of Order

Senator LAND raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator LEVENTIS spoke on the Point of Order.

The PRESIDENT sustained the Point of Order.

The amendment was ruled out of order.

Objection

Senator LEATHERMAN asked unanimous consent to make a motion that no further amendments to the General Appropriation Bill be received on the Desk for consideration with the exception of the necessary technical and balancing amendments to be delivered and certified by the Clerk.

Senator SETZLER objected.


Printed Page 3195 . . . . . Thursday, May 11, 2000

PART II, SECTION 19
Amendment No. 219C

Senators PASSAILAIGUE and MOORE proposed the following Amendment No. 219C (4775R061.ELP), which was not adopted:

Amend the bill, as and if amended, Part II, page 612, by striking SECTION 19 in its entirety and inserting a new SECTION 19 read:

  / SECTION 19

TO AMEND SECTION 56-3-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISPOSITION OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES, SO AS TO PROVIDE FOR THE CREDITING OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES AND PENALTIES NOT ALREADY CREDITED TO THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK TO THE STATE HIGHWAY FUND BEGINNING JUNE 30, 2001, TO PROVIDE THAT CERTAIN MONIES CREDITED TO THE GENERAL FUND FOR FISCAL YEAR 2001-2002 MUST BE TRANSFERRED TO THE STATE PORTS AUTHORITY FOR HARBOR DREDGING, TO PROVIDE FOR THE USE OF A PORTION OF THOSE FUNDS FOR DEVELOPMENT OF A MONORAIL OR MONOBEAM PROTOTYPE FOR MASS TRANSIT AND TO PROVIDE THAT THE STATE INFRASTRUCTURE MUST ACCEPT APPLICATIONS FOR NEW PROJECTS.

The provision of dependable transportation systems is a public purpose and is vital in the promotion of public health, general welfare, economic welfare, security, prosperity and contentment of all the residents of the State. Residents of this State are more mobile than ever before and it is increasingly more difficult for the State to provide sufficient funding to develop and maintain a system of safe highways to accommodate the increasing numbers of vehicles. The development of alternate methods of transportation such as mass transit is essential. It is in the public interest for the State to develop alternate methods of transporting its residents and it is in the public interest for the State to assist in creating solutions to the mass transit needs of its residents such as a monobeam or monorail prototype.

A.   Section 56-3-910 of the 1976 Code, as amended by Act 148 of 1997, is further amended to read:

"Section 56-3-910.   (A)   All fees and penalties collected by the department under the provisions of this chapter shall be placed in the state general fund except for fees and penalties collected pursuant to


Printed Page 3196 . . . . . Thursday, May 11, 2000

Sections 56-3-660, and 56-3-670 or those fees and penalties otherwise provided for by law which must be placed in the state highway account of the South Carolina Transportation Infrastructure Bank.

Beginning in fiscal year 1998-99, one-half of the revenues are remitted to the bank in fiscal year 1998-99, and the entirety of the revenue is remitted to the bank in fiscal year 1999-00 and thereafter.

(B)   Twenty percent of the fees and penalties collected pursuant to this chapter, except for those which must be placed in the state highway account for the South Carolina Transportation Infrastructure Bank pursuant to subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent of such fees and penalties must be placed in the general fund of the State beginning in fiscal year 2000-2001.

(C)   The Department of Transportation is authorized and directed to issue bonds in the aggregate principal amount of not exceeding fifteen million dollars, the proceeds of which must be made available to regional transportation authorities, to be used for the purpose of creating solutions to mass transit needs of the State through the development of a publicly owned monorail or monobeam prototype. Such monorail or monobeam prototype must be owned by the regional transportation authority or other governmental entity. The department must, from the fees and penalties credited to the State Highway Fund of the Department of Transportation pursuant to subsection (B), pay the principal of and interest on such bonds issued pursuant to the provisions of this subsection.

B.     It is the intent of the General Assembly that the South Carolina Transportation Infrastructure Board accept all applications for major highway and transportation projects submitted to the Board, including the Bobby Jones Expressway Extension Application. The Board shall not adopt any rule or regulation that inhibits or prohibits an otherwise eligible project from being submitted to the Board for future consideration.

C.     This section takes effect July 1, 2000.       /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

RECESS

At 3:05 A.M., on motion of Senator PASSAILAIGUE, the Senate receded from business not to exceed five minutes.


Printed Page 3197 . . . . . Thursday, May 11, 2000

At 3:09 A.M., the Senate resumed.

Senator PASSAILAIGUE explained the amendment.

Senator THOMAS spoke on the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 23; Nays 13

AYES

Branton                   Bryan                     Drummond
Ford                      Glover                    Grooms
Hutto                     Jackson                   Land
Matthews                  McConnell *               Mescher
Moore                     Passailaigue              Patterson
Rankin                    Ravenel *                 Reese
Ryberg                    Setzler                   Short
Smith, J. Verne           Washington

Total--23

NAYS

Alexander                 Bauer                     Giese
Gregory                   Hayes                     Leatherman
Martin                    Peeler                    Richardson
Russell                   Thomas                    Waldrep
Wilson

Total--13

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

Having failed to receive the required vote, Amendment No. 219C was not adopted.

PART II, SECTION 19
Amendment No. 322

Senator RYBERG proposed the following Amendment No. 322 (3949MM00.DOC), which was tabled:


Printed Page 3198 . . . . . Thursday, May 11, 2000

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, page 612, by striking SECTION 19 in its entirety and inserting:

  / SECTION __

TO AMEND SECTION 56-3-910, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISPOSITION OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES, SO AS TO PROVIDE FOR THE CREDITING OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES AND PENALTIES NOT ALREADY CREDITED TO THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK TO THE STATE HIGHWAY FUND, AND TO PROVIDE THAT THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BOARD ACCEPT ALL APPLICATIONS FOR PROJECTS, INCLUDING THE BOBBY JONES EXPRESSWAY EXTENSION APPLICATION, AND NOT INHIBIT OR PROHIBIT ELIGIBLE APPLICATIONS.

A.   Section 56-3-910 of the 1976 Code, as amended by Act 148 of 1997, is further amended to read:

"Section 56-3-910.   Beginning in fiscal year 2001-2002, all fees and penalties collected by the department under the provisions of this chapter shall be placed in the state general fund, except for fees and penalties collected pursuant to Sections 56-3-660 and 56-3-670 which must be credited to the State Transportation Infrastructure Bank, or those fees and penalties otherwise provided for by law must be placed in the state highway fund account of the South Carolina Transportation Infrastructure Bank.

Beginning in fiscal year 1998-99, one-half of the revenues are remitted to the bank in fiscal year 1998-99, and the entirety of the revenue is remitted to the bank in fiscal year 1999-00 and thereafter."

B.   It is the intent of the General Assembly that the South Carolina Transportation Infrastructure Board accept all applications for major highway and transportation projects submitted to the board, including the Bobby Jones Expressway Extension application. The board shall not adopt any rule or regulation that inhibits or prohibits an otherwise eligible project from being submitted to the board for future consideration.

C.   This section takes effect July 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RYBERG explained the amendment.


Printed Page 3199 . . . . . Thursday, May 11, 2000

Point of Order

Senator PASSAILAIGUE raised a Point of Order that the amendment was out of order inasmuch as it was not germane to the Bill.

Senator RYBERG spoke on the Point of Order.

Senator PASSAILAIGUE spoke on the Point of Order.

The PRESIDENT overruled the Point of Order.

Senator PASSAILAIGUE moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 21; Nays 13

AYES

Alexander                 Anderson                  Bryan
Drummond                  Giese                     Glover
Hutto                     Jackson                   Land
Leatherman                Leventis                  Matthews
McConnell *               Passailaigue              Patterson
Rankin                    Ravenel *                 Reese
Smith, J. Verne           Waldrep                   Washington

Total--21

NAYS

Bauer                     Branton                   Grooms
Hayes                     Mescher                   Moore
Peeler                    Richardson                Russell
Ryberg                    Setzler                   Thomas
Wilson

Total--13

*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.

The amendment was tabled.


Printed Page 3200 . . . . . Thursday, May 11, 2000

The question then was the adoption of Section 19, pursuant to Rule 24B.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 21; Nays 15

AYES

Anderson                  Branton                   Bryan
Drummond                  Ford                      Glover
Grooms                    Hutto                     Jackson
Land                      Leventis                  Matthews
Mescher                   Moore                     Passailaigue
Patterson                 Reese                     Setzler
Short                     Smith, J. Verne           Washington

Total--21

NAYS

Alexander                 Bauer                     Giese
Gregory                   Hayes                     Leatherman
Martin                    Peeler                    Rankin
Richardson                Russell                   Ryberg
Thomas                    Waldrep                   Wilson

Total--15

Having failed to receive the required vote, Section 19 was not adopted.

Amendment No. 287

Senator RICHARDSON proposed the following Amendment No. 287 (21409SD00.DOC), which was adopted (#81):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, PART II, SECTION 25, page 624, by adding a new Section 59-40-195 immediately after Section 59-40-190 to read:

/   Section 59-40-195.     If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this chapter is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this


Printed Page 3201 . . . . . Thursday, May 11, 2000

chapter, the General Assembly hereby declaring that it would have passed this chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words thereof may be declared to be unconstitutional, invalid, or otherwise ineffective. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RICHARDSON explained the amendment.

The amendment was adopted.

The question then was the adoption of Section 25, pursuant to Rule 24B.

Having received the required vote, Section 25 was adopted.

Amendment No. 261A

Senator HOLLAND proposed the following Amendment No. 261A (4775R073.DHH), which was adopted (#82A):

Amend the bill, as and if amended, Part II, page 626, SECTION 32, by adding:

/   The 1976 Code is amended by adding:

"Section 9-9-51.   Members of the General Assembly retirement system may receive additional credited service for service in the selected reserve of any reserve components of the armed forces of the United States in the same manner and under the same terms and conditions such members may receive additional credited service for service in the national guard as provided by this chapter." /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator HAYES moved that the amendment be adopted.

The amendment was adopted.

The question then was the adoption of Section 32, pursuant to Rule 24B.

Having received the required vote, Section 32 was adopted.


Printed Page 3202 . . . . . Thursday, May 11, 2000

Amendment No. 276

Senators SHORT and HUTTO proposed the following Amendment No. 276 (4775R049.CBH), which was adopted (#83):

Amend the bill, as and if amended, Part II, Section 35, page 627, by striking lines 29 and 30 and inserting in lieu thereof the following:

/   "Section 1-1-1035. No state funds or Medicaid funds shall be expended to perform abortions, except for those abortions authorized by federal law under the Medicaid program. Nothing in this section shall prohibit state funds or other funds appropriated or expended under Article 13, Chapter 3, Title 16 from being used to pay for abortions for victims of rape or incest."   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

The question then was the adoption of Section 35, pursuant to Rule 24B.

Having received the required vote, Section 35 was adopted.

PART II, SECTION 49
Amendment No. 124

Senator McGILL proposed the following Amendment No. 124 (18433SOM00.DOC), which was adopted (#84):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part II, SECTION 49 by striking / "/ on line 28, page 645 and inserting:

/ Section 44-128-50.   (A)   There is established the South Carolina Youth Smoking Prevention Advisory Commission to advise the departments in the development, implementation, and evaluation of the State Youth Smoking Plan.

(B)   Notwithstanding the provisions of Section 8-13-770, the membership of the advisory commission is as follows:

(1)   two members appointed by the Speaker of the House of Representatives from the membership of the House of Representatives;

(2)   two members appointed by the President Pro Tempore of the Senate from the membership of the Senate; and

(3)   eleven members appointed by the Governor as follows:


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(a)   one representative of the Department of Health and Environmental Control;

(b)   one representative of the Department of Alcohol and Other Drug Abuse Services;

(c)   three health professionals;

(d)   two youths between the ages of twelve and eighteen; and

(e)   five citizens of the State with knowledge, competence, experience, or interest in youth smoking prevention, or other relevant background including, but not limited to, youth education, public health, social science, and business expertise." /

Amend the bill further, as and if amended, by striking Section 44-128-20(C) on lines 20-21, page 645 and inserting:

/ (C)(1)   To assist in carrying out the purposes of the plan, the departments may award youth smoking prevention grants to local agencies, organizations, and entities based on criteria developed by the departments.

(2) As a condition for the receipt of funds under this chapter, a grantee shall agree to file a report with the advisory commission, as to the following:

(a)   amount received as a grant and the expenditures made with the proceeds of the grant;

(b)   a description of the program offered and the number of youths who participated in the program; and

(c)   specific elements of the program meeting the criteria set forth in the state plan.

(D)   The state plan further shall provide for a grant for an annual statewide school-based survey to measure cigarette use and behaviors towards cigarette use by individuals in grades 6-12. This survey shall:

(1)   involve a statistically valid sample of the individuals in each grade from sixth through twelfth;

(2)   not include any individual who is eighteen years of age or older; and

(3)   be made available to the public, along with the resulting date, excluding respondent identities and respondent-identifiable date. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

The amendment was adopted.


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The question then was the adoption of Section 49, pursuant to Rule 24B.

Section 49 was adopted.

Amendment No. 291

Senators THOMAS, DRUMMOND and LAND proposed the following Amendment No. 291 (3952MM00.DOC), which was adopted (#85):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part II, by striking SECTION 54 in its entirety and inserting:

  / SECTION 54

TO AMEND SECTION 14-1-208, AS AMENDED, OF THE 1976 CODE, RELATING TO ASSESSMENTS IMPOSED IN MUNICIPAL COURT, SO AS TO INCREASE THE ASSESSMENT FROM SEVENTY-FOUR PERCENT OF THE FINE IMPOSED TO ONE HUNDRED PERCENT, TO PROVIDE THAT THE ADDITIONAL MONIES COLLECTED ARE REMITTED TO THE STATE TREASURER FOR THE GOVERNOR'S TASK FORCE ON LITTER, AND TO EXEMPT THE EXPENDITURE OF THESE FUNDS FROM THE PROVISIONS OF CHAPTER 35 OF TITLE 11; TO PROVIDE FOR MONIES TO THE DEPARTMENT OF JUVENILE JUSTICE FOR REDUCTION OF NONSTATE COSTS OF OPERATING JUVENILE DETENTION CENTERS; AND TO AMEND SECTION 16-11-700, AS AMENDED, RELATING TO THE OFFENSE OF LITTERING, SO AS TO ELIMINATE THE REQUIREMENT THAT A PORTION OF THE FINES IMPOSED FOR VIOLATIONS MUST BE DEPOSITED IN THE GENERAL FUND OF THE STATE AND USED BY THE OFFICE OF THE GOVERNOR TO FUND A LITTER CONTROL PROGRAM.

A.   Subsections (A), (B), and (C) of Section 14-1-208 of the 1976 Code, as last amended by Act 434 of 1998, are further amended to read:

"(A)   Beginning January 1, 1995 October 1, 2000, and continuously after that date, a person who is convicted of, or pleads guilty or nolo contendere to, or forfeits bond for an offense tried in municipal court must pay an amount equal to 74 100 percent of the fine imposed as an assessment. This assessment must be paid to the municipal clerk of court and deposited with the city treasurer for remittance to the State Treasurer. The assessment is based upon that portion of the fine that is


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not suspended, and assessments must not be waived, reduced, or suspended.

(B)   The city treasurer must remit 16.22 12 percent of the revenue generated by the assessment imposed in subsection (A) to the municipality to be used for the purposes set forth in subsection (D) and remit the balance of the assessment revenue to the State Treasurer on a monthly basis by the fifteenth day of each month and make reports on a form and in a manner prescribed by the State Treasurer. Assessments paid in installments must be remitted as received.

(C)   The State Treasurer shall deposit the assessments received as follows:

(1)   21.63 15.24 percent for programs established pursuant to Chapter 21 of Title 24 and the Shock Incarceration Program as provided in Article 13, Chapter 13 of Title 24;

(2)   21.39 15.07 percent to the Department of Public Safety program of training in the fields of law enforcement and criminal justice;

(3)   .56 .39 percent to the Department of Public Safety to defray the cost of erecting and maintaining the South Carolina Law Enforcement Hall of Fame. When funds collected pursuant to this item exceed the necessary costs and expenses of the Hall of Fame operation and maintenance as determined by the Department of Public Safety, the department may retain the surplus for use in its law enforcement training programs;

(4)   15.98 11.26 percent for the State Office of Victim Assistance;

(5)   5.84 4.11 percent to the general fund;

(6)   16.26 11.46 percent to the Office of Indigent Defense for the defense of indigents;

(7)   1.37 .97 percent to the Department of Mental Health to be used exclusively for the treatment and rehabilitation of drug addicts within the department's addiction center facilities;

(8)   .84 .59 percent to the Attorney General's Office for a fund to provide support for counties involved in complex criminal litigation. For the purposes of this item, 'complex criminal litigation' means criminal cases in which the State is seeking the death penalty and has served notice as required by law upon the defendant's counsel and the county involved has expended more than one hundred thousand dollars for a particular case in direct support of operating the court of general sessions and for prosecution-related expenses. The Attorney General shall develop guidelines for determining what expenses are reimbursable from the fund and shall approve all disbursements from


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the fund. Funds must be paid to a county for all expenditures authorized for reimbursement under this item except for the first one hundred thousand dollars the county expended in satisfying the requirements for reimbursement from the fund; however, money disbursed from this fund must be disbursed on a 'first received, first paid' basis. When revenue in the fund reaches five hundred thousand dollars, all revenue in excess of five hundred thousand dollars must be credited to the general fund of the State. Unexpended revenue in the fund at the end of the fiscal year carries over and may be expended in the next fiscal year;

(9)   16.13 11.36 percent for the programs established pursuant to Section 56-5-2953(E);

(10)   14.77 percent to the Governor's Task Force on Litter and in the expenditure of these funds, the provisions of Chapter 35 of Title 11 do not apply;

(11)   14.77 percent to the Department of Juvenile Justice. The Department of Juvenile Justice must apply the funds generated by this item to offset the nonstate share of allowable costs of operating juvenile detention centers so that per diem costs charged to local governments utilizing the juvenile detention centers do not exceed twenty-five dollars a day. Notwithstanding this provision of law, the director of the department may waive, reduce, defer, or reimburse the charges paid by local governments for juvenile detention placements. The department may apply the remainder of the funds generated by this item, if any, to operational or capital expenses associated with regional evaluation centers."

B.   Items (1) and (2) of Section 16-11-700(C) of the 1976 Code, as last amended by Act 100 of 1999, are further amended to read:

"(1)   A person who violates the provisions of this section in an amount less than fifteen pounds in weight or twenty-seven cubic feet in volume is guilty of a misdemeanor and, upon conviction, must be fined not less than two hundred dollars nor more than three hundred dollars or imprisoned for not more than thirty days for each offense. In addition to a fine and for each offense under the provisions of this item, the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court. One hundred dollars of the fine imposed by this item must be deposited in the state's general fund and used by the Office of the Governor to fund a litter control campaign.

(2)   The fine for a deposit of a collection of litter or garbage in an area or facility not intended for public deposit of litter or garbage is one


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thousand dollars. The provisions of this item apply to a deposit of litter or garbage, as defined in Section 44-67-30(4), in an area or facility not intended for public deposit of litter or garbage, but this does not prohibit a private property owner from depositing litter or garbage as a property enhancement if the depositing does not violate applicable local or state health and safety regulations. In addition to a fine and for each offense under the provisions of this item the court shall also impose a minimum of five hours of litter-gathering labor or other form of public service as the court may order because of physical or other incapacities, and which is under the supervision of the court. Eight hundred dollars of the fine imposed by this item must be deposited in the states general fund and used by the Office of the Governor to fund a litter control campaign."

C.   This section takes effect October 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator THOMAS explained the amendment.

The amendment was adopted.

The question then was the adoption of Section 54, pursuant to Rule 24B.

Having received the required vote, Section 54 was adopted.

PART II, SECTION 69

On motion of Senator MOORE, with unanimous consent, Amendment No. 325A was taken up for immediate consideration.

Amendment No. 325A

Senators MOORE and PASSAILAIGUE proposed the following Amendment No. 325A (4775R220.TLM), which was adopted (#86):

Amend the bill, as and if amended, Part II, Section 69, by striking the Section in its entirety and inserting:

  / SECTION 69

TO AMEND TITLE 11 OF THE 1976 CODE, RELATING TO PUBLIC FINANCE, BY ADDING CHAPTER 49 SO AS TO ENACT THE "TOBACCO SETTLEMENT REVENUE MANAGEMENT AUTHORITY ACT" PROVIDING FOR THE ESTABLISHMENT OF A STATE INSTRUMENTALITY TO RECEIVE PAYMENTS FROM


Printed Page 3208 . . . . . Thursday, May 11, 2000

TOBACCO PRODUCT MANUFACTURERS UNDER THE MASTER SETTLEMENT AGREEMENT BETWEEN THIS STATE AND TOBACCO PRODUCT MANUFACTURERS, AND TO PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES RELATING TO THE RECEIPT, ALLOCATION, SECURITIZATION, AND DISPOSITION OF THESE PAYMENTS; TO AUTHORIZE THE AUTHORITY TO ISSUE BONDS FOR AUTHORIZED PURPOSES TO BE SECURED BY AND PAID SOLELY FROM THESE PAYMENTS; TO PROVIDE FOR THE DISPOSITION OF THESE PAYMENTS NOT NEEDED FOR THE EXPENSES OF THE INSTRUMENTALITY OR FOR DEBT SERVICE ON THE BONDS; TO AMEND SECTIONS 1-23-10, 8-13-770, AND 15-78-60, ALL AS AMENDED, RELATING TO THE DEFINITION OF STATE AGENCY FOR PURPOSES OF COVERAGE AND EXEMPTION FROM THE ADMINISTRATIVE PROCEDURES ACT, THE BOARDS ON WHICH MEMBERS OF THE GENERAL ASSEMBLY MAY SERVE, AND THE EXCEPTIONS TO THE WAIVER OF IMMUNITY UNDER THE TORT CLAIMS ACT, SO AS TO EXEMPT THE AUTHORITY FROM THE ADMINISTRATIVE PROCEDURES ACT, TO ALLOW MEMBERS OF THE GENERAL ASSEMBLY TO SERVE ON THE AUTHORITY, TO ADD AN EXCEPTION TO THE TORT CLAIMS ACT FOR THE ACTIONS OF THE AUTHORITY, AND TO MAKE THESE PROVISIONS SEVERABLE, BY ADDING SECTION 11-11-170 SO AS TO CREATE IN THE STATE TREASURY THE HEALTHCARE TOBACCO SETTLEMENT FUND, THE TOBACCO COMMUNITY TRUST FUND, AND THE TOBACCO SETTLEMENT ECONOMIC DEVELOPMENT FUND AS FUNDS SEPARATE FROM ALL OTHER FUNDS AND TO CREDIT TO THESE FUNDS IN STATED PERCENTAGES ALL REVENUE RECEIVED BY THIS STATE FROM THE MASTER SETTLEMENT AGREEMENT OR BOND PROCEEDS DERIVED FROM THE SECURITIZATION OF THESE PROCEEDS; TO PROVIDE THAT EARNINGS ON THESE FUNDS ARE CREDITED TO THEM, TO PROVIDE FOR THE USE OF FUND PROCEEDS, INCLUDING HEALTH PROGRAMS, LOSS REIMBURSEMENTS TO TOBACCO GROWERS, QUOTA OWNERS, AND WAREHOUSEMEN, AND REVITALIZATION OF TOBACCO COMMUNITIES, AND ECONOMIC DEVELOPMENT, TO PROVIDE SPECIAL DISTRIBUTIONS FOR MASTER SETTLEMENT AGREEMENT REVENUES RECEIVED BEFORE JULY 1, 2001; AND BY

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ADDING SECTION 13-1-45 ESTABLISHING THE SOUTH CAROLINA WATER AND WASTEWATER INFRASTRUCTURE FUND AND PROVIDING FOR ITS OPERATION, INCLUDING THE DETERMINATION OF ELIGIBILITY FOR PROJECTS TO BE FUNDED AND THE MANNERS OF FUNDING; AND TO AMEND SECTIONS 58-31-30 AND 58-31-80, BOTH AS AMENDED, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY AND THE PURPOSES OF THE AUTHORITY AND VARIOUS PAYMENTS REQUIRED FROM IT, SO AS TO INCLUDE IN ITS FUNCTIONS THE DUTIES WITH REGARD TO SEWAGE COLLECTION, TREATMENT, AND DISPOSAL ASSIGNED IT UNDER THE SOUTH CAROLINA WATER AND WASTEWATER INFRASTRUCTURE FUND ESTABLISHED BY THIS SECTION.

A.   1.     The General Assembly finds that:

(1)   On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the "Master Settlement Agreement", with the State. The master settlement agreement obligates these manufacturers, in return for a release of past, present, and certain future claims against them as described in the agreement, to pay substantial sums to the State, tied in part to their volume of sales.

(2)   The General Assembly recognizes that it may be in the best interest of the State to issue special source bonds, in order to convert all or a portion of these future payments to be received under the master settlement agreement into current funds. These bonds will be payable solely from and secured solely by the future receipts under the master settlement agreement, and will not constitute a claim against the full faith, credit, and taxing power or the general fund of the State.

(3)   In order to provide for the receipt and handling of the payments under the master settlement agreement, from the tobacco product manufacturers, for the issuance of these bonds, for separating the issuance of these bonds from the general credit of the State, and for the administration of the proceeds of the bonds, the General Assembly has determined to create a separate and distinct instrumentality of the State to which the rights of the State under the master settlement agreement are transferred and to grant it the powers and duties prescribed in this act.


Printed Page 3210 . . . . . Thursday, May 11, 2000

2.     Title 11 of the 1976 Code is amended by adding:

  "CHAPTER 49

'Tobacco Settlement Revenue Management Authority Act'

Section 11-49-10.   This chapter may be cited as the 'Tobacco Settlement Revenue Management Authority Act'.

Section 11-49-20.   As used in this chapter:

(1)   'Authority' means the Tobacco Settlement Revenue Management Authority, as established by this chapter.

(2)   'Board' means the governing body of the authority.

(3)   'Bonds' means special source bonds, notes, or other evidences of indebtedness of the authority payable solely from and secured solely by the State's tobacco receipts, issued pursuant to the authorizations contained in this chapter and in Article X, Section 13(9) of the Constitution of this State. The bonds are 'bonds' for purposes of Section 12-2-50 and any successor provision.

(4)   'Escrow' means the escrow as that term is defined in the master settlement agreement.

(5)   'Escrow agent' means the escrow agent as that term is defined in the master settlement agreement.

(6)   'Independent auditor' means the independent auditor as that term is defined in the master settlement agreement.

(7)   'Master settlement agreement' means the settlement agreement and related documents entered into on November 23, 1998, by the State and the four principal United States tobacco product manufacturers, as amended and supplemented.

(8)   'Participating manufacturers' means the participating manufacturers as that term is defined in the master settlement agreement.

(9)   'State' or 'this State' means the State of South Carolina.

(10)   'State's tobacco receipts' means all of the payments to be made by the escrow agent and derived from payments made by the participating manufacturers and allocated to this State under the master settlement agreement, other than pursuant to Article XVII of that agreement.

Section 11-49-30.   (A)   There is created the Tobacco Settlement Revenue Management Authority, a public body corporate and politic and an instrumentality of this State, with the responsibility of effecting the public purpose of this chapter.

(B)   The purpose of the authority is to receive all of the state's tobacco receipts, to issue bonds of the authority payable solely from and secured solely by the state's tobacco receipts or any tobacco


Printed Page 3211 . . . . . Thursday, May 11, 2000

receipts reserved fund created from it for the purposes authorized in this chapter, and to manage and dispose of the state's tobacco receipts for the purposes and in the manner authorized in this chapter.

(C)   Upon termination of the existence of the authority, title to all property, real and personal, owned by it, including net earnings, vests in the State.

Section 11-49-40.   (A)   The authority is governed by a board, which shall consist of five members as follows: the Governor or his designee, the State Treasurer, the Comptroller General, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee. The Governor shall serve as chairman; and in the absence of the Governor, meetings must be chaired by the State Treasurer. All members serve ex officio.

(B)   Members of the board serve without pay but are allowed the usual mileage, per diem, and subsistence as provided by law for members of State boards, committees, and commissions.

(C)   Members of the board and its employees, if any, are subject to the provisions of Chapter 13, Title 8, the Ethics, Government Accountability, and Campaign Reform Act, and Chapter 17 of Title 2, relating to lobbying.

(D)   To the extent that administrative assistance is needed for the functions and operations of the authority, the board may obtain this assistance from the Office of the State Treasurer and the State Budget and Control Board, and any successor agency, office or division, each of which must provide the assistance requested by the board at no cost to the board or to the authority other than for expenses incurred and paid to entities that are not agencies or departments of the State. The board must retain ultimate responsibility and provide proper oversight for the implementation of this chapter.

(E)   The board shall exercise the powers of the authority. A majority of the members of the board constitutes a quorum for the purpose of conducting all business. The board shall determine the number of personnel it requires, their compensation and duties.

Section 11-49-50.   The State's tobacco receipts due to the State after June 30, 2001, and the right to receive them as they are distributed from the escrow are assigned to the authority. On and after the date these revenues are pledged, the State shall have no right, title, or interest in or to the state's tobacco receipts; and the state's tobacco receipts are property of the authority and not of the State, and must be owned, received, held, and disbursed by the authority or the trustee for the holders of bonds and not by the State. The State directs the


Printed Page 3212 . . . . . Thursday, May 11, 2000

independent auditor and the escrow agent to make all these payments to the authority in accordance with instructions that may be given by the authority from time to time. The assignment and direction made in this subsection are irrevocable during any time when bonds are outstanding under this chapter plus one year and one day thereafter and are a part of the contractual obligation owed to the bond holders. On or before the date of delivery of any bonds, the State through the State Treasurer shall notify the independent auditor and the escrow agent that the State's tobacco receipts have been assigned to the authority and shall instruct the independent auditor and the escrow agent that, subsequent to the delivery date for bonds and irrevocably during the time when any bonds are outstanding, the State's tobacco receipts are to be paid directly to the authority or its designee.

Section 11-49-60.   In addition to the powers contained elsewhere in this chapter, the board has all power necessary, useful, or appropriate to operate and administer the authority, to effectuate the purposes of the authority, and to perform its other functions including, but not limited to, the power to:

(1)   have perpetual succession;

(2)   sue and be sued in its own name;

(3)   adopt, promulgate, amend, and repeal bylaws, not inconsistent with provisions in this chapter for the administration of the authority's affairs and the implementation of its functions;

(4)   have a seal and alter it at its pleasure, although the failure to affix the seal does not affect the validity of an instrument executed on behalf of the authority;

(5)   enter into contracts, arrangements, and agreements with government units and other persons and execute and deliver all financing agreements, including bonds issued to support the borrowing by such government units to pay eligible costs of qualified projects, and other instruments necessary or convenient to the exercise of the powers granted in this chapter;

(6)   enter into agreements with a department, agency, political subdivision or instrumentality of the United States or of this State or of another State for the purpose of planning and providing for the financing of qualified projects or for the administration of the purposes and programs of this chapter;

(7)   enter into agreements with the tobacco trust fund for the purpose of managing and controlling the transfer of funds between the authority and the tobacco trust fund and governing the investment and the monitoring and recordkeeping of these funds, for purposes of


Printed Page 3213 . . . . . Thursday, May 11, 2000

maintaining the exemption from federal income tax of interest on bonds and for other purposes;

(8)   enter into, amend, and terminate agreements in the nature of interest rate swaps, forward security supply contracts, agreements for the management of interest rate risks, agreements for the management of cash flow, and other agreements of a similar nature, with respect to bonds issued pursuant to this chapter;

(9)   procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public or private entity, including any department, agency, or instrumentality of the United States or this State, for the payment of any bonds, including the power to pay premiums or fees on any insurance, guarantees, letters of credit, and other forms of collateral or security or credit support;

(10)   borrow money through the issuance of bonds as provided in this chapter, and through the issuance of notes in anticipation of the issuance of these bonds;

(11)   enter into contracts and expend funds to obtain accounting, management, legal, financial consulting, trusteeship and other professional services necessary or convenient to the operations of the authority; however, all matters relating to the designation and selection of bond counsel to the authority is within the discretion of the State Treasurer;

(12)   in order to pay budgeted items pursuant to a budget adopted in accordance with Section 11-49-100, to expend funds for the costs of administering the operations of the authority;

(13)   direct the escrow agent with respect to the disbursement to the authority of the State's tobacco receipts and receive and accept the State's tobacco receipts;

(14)   enter into contracts or agreements necessary, proper, or convenient for the effectuation of the powers and purposes of the board and the authority;

(15)   invest funds held by the authority under this chapter in any investment permitted for funds of this State, other than the State's retirement funds, or for funds of the political subdivisions of this State, in revenue bonds of government units, and in general obligations of other States whose general obligation debt is rated not lower than the general obligation debt of this State;

(16)   direct the Attorney General of this State to enforce in the name of the State of South Carolina, and if permissible to enforce directly through its own attorneys in the name of the State, the master settlement agreement, but the board may not give any approval of any


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amendment to the agreement without the approval of the General Assembly. This power is a part of the contractual obligation owed to the holders of any bonds; and

(17)   do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter or that may be necessary for the furtherance and accomplishments of the purposes of the authority.

Before the date which is one year and one day after which the authority no longer has any bonds outstanding, the authority has no authority to file a voluntary petition under Chapter 9 of the United States Bankruptcy Code or corresponding chapters or sections as may, from time to time, be in effect, and neither any public officer or any organization, entity, or other person shall authorize the authority to be or become a debtor under Chapter 9 or any successor or corresponding chapter or sections during the periods. The provisions of this paragraph are for the benefit of the holders of any bonds and are a part of the contractual obligation owed to such bondholders, and the State shall not modify or delete the provisions of this paragraph during the periods described in this chapter.

In the exercise of its powers in this chapter, the board and the authority may obtain services in accordance with the procedures, guidelines, and criteria established by the board for that purpose and are not restricted by Chapter 35 of Title 11 or any successor provision.

Section 11-49-70.   (A)   The board may issue bonds in the name of the authority, from time to time, for the purposes and in the manner Stated in this section.

(B)   All bonds must be secured solely by and payable solely from the State's tobacco receipts, or the portion of the State's tobacco receipts the board determines to pledge for payment.

(C)   Neither the members of the board nor any person executing the bonds or any notes are liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance of the bonds.

(D)   The board has no power to pledge the faith, credit, or taxing power of this State or any of its political subdivisions in connection with the issuance of the bonds, and each bond must recite on its face that it is a special source bond of the authority issued pursuant to and in accordance with this chapter and Article X, Section 13(9) of the Constitution of this State, that it is secured solely by and payable solely from the State's tobacco receipts, that it is neither a general, legal, nor moral obligation of the State or any of its political subdivisions, and


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that it is not backed by the full faith, credit, or taxing power of this State or any of its political subdivisions. Failure to include this language on the face of any bond does not cause the bond to become a general, legal or moral obligation of the State or any of its political subdivisions, or a pledge of the full faith, credit, or taxing power of this State or any of its political subdivisions.

(E)   Any pledge of the State tobacco receipts made by the authority is valid and binding from the time when the pledge is made. The State tobacco receipts pledged and then or thereafter received by the authority are immediately subject to the lien of the pledge without any physical delivery of the receipt or further act. The lien of the pledge is valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether the parties have notice of them. Neither the resolution of the authority or any other instrument by which a pledge is created need be recorded or filed to perfect the pledge.

(F)   The authority may not issue any bond with a scheduled maturity later than thirty years after the date of issuance.

(G)   When issuing bonds for the purpose described in subsection (J)(2) of this section or to refund the bonds, the authority may sell bonds either in a negotiated transaction with one or more lead underwriters selected by the board on the basis of criteria to be established by the board, or through a competitive bidding process in accordance with procedures to be established by the board. The determination of whether to sell bonds through negotiation or through competitive bidding must be made by the board.

(H)   The authority may not issue any bonds unless the board has first adopted its resolution authorizing the issuance, finding that the issuance and the proposed use of the bond proceeds is in accordance with this chapter, and setting out the terms and conditions of the bonds and the covenants of the authority with respect to the bonds. These terms must include the issuance date or dates, the maturity date or dates, the principal amount, the interest rates or the means of determining the same, whether fixed or variable, the time, manner, and currency for paying interest and principal, the negotiability of the bonds and any restrictions relating to the registration of the bonds; and the covenants may include, without limitation, the establishment and maintenance of dedicated reserve funds for the payment of debt service on bonds if the State's tobacco receipts are inadequate in any year, restrictions on the later issuance of additional bonds or making the later issuance subject to certain conditions relating to available debt service coverage or


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otherwise, conditions on the timing of the release of all or a portion of the State's tobacco receipts to the general fund of this State, the enforcement of the master settlement agreement, or any other matter that the board considers appropriate, subject to subsection (I) of this section.

(I)   The board may not authorize or cause the authority to enter into any covenant that purports to create a general, legal or moral obligation of this State or any of its political subdivisions or to pledge the full faith, credit, or taxing power of the State or any of its political subdivisions; nor may the board authorize or cause the authority to enter into any covenants that purport to create a right on the part of the board, the authority, any bondholder, or any trustee any right to recover funds consisting of the State's tobacco receipts once those funds have been deposited into the general fund of the State in accordance with the terms of this chapter. Any covenant in violation of this subsection is void and of no effect.

(J)   Subject to the requirements of this section, the board may authorize the issuance of bonds of the authority for the following purposes:

(1)   refunding, on a current or advance-refunding basis, any outstanding bonds of the authority; or

(2)   obtaining funds for delivery to the funds as provided in Section 11-11-170.

All proceeds of bonds issued for the purpose described in item (2) of this subsection must be delivered promptly to the respective fund, except as needed to defray the costs of issuance of the bonds or to establish any required reserve fund for the bonds.

The bonds and the issuance of the bonds are subject to the provisions of Sections 11-15-20 and 11-15-30 and any successor provisions.

Section 11-49-80.   The authority and the board shall have no other assets or property except the State's tobacco receipts as received, and the right to receive the State's tobacco receipts.

Section 11-49-90.   The authority and the board have no power to incur debt or obligations or in any way to encumber their assets except by the issuance of bonds, including the making of covenants in relation to the issuing of bonds and notes in anticipation of the issuance of the bonds, and the incurring of expenses and obligations as authorized in Section 11-49-60.

Section 11-49-100.   All accounts of the authority must be held and maintained separately from all other funds, properties, assets, and accounts of this State and its other agencies. The board shall keep an


Printed Page 3217 . . . . . Thursday, May 11, 2000

accurate account of all of its activities and all of its receipts and expenditures and annually, in the month of January shall make a report of its activities to the State Budget and Control Board, the report to be in a form prescribed by the State Budget and Control Board with the written approval of the State Auditor. Audited financial statements must be submitted to the Comptroller General by October fifteenth following the end of the fiscal year.

Section 11-49-110.     Reserved.

Section 11-49-120.   (A)   The bonds and the income from the bonds are exempt from all taxation in the State except for inheritance, estate, or transfer taxes, regardless of the federal income tax treatment of the interest from the bonds.

(B)   The exercise of the powers granted by this chapter are in all respects for the benefit of the citizens of the State and for the promotion of their welfare, convenience, and prosperity. Property, whether real or personal, tangible or intangible, of the authority and the income and operations of the authority are exempt from taxation or assessment by the State or any of its political subdivisions.

(C)   It is lawful for executors, administrators, guardians, committees, and other fiduciaries to invest any monies in their hands in bonds. Nothing contained in this section may be construed as relieving any person from the duty of exercising reasonable care in selecting investments.

Section 11-49-130.   All of the State's tobacco receipts not needed to pay (1) expenses of the authority during the next twelve months, or (2) debt service on bonds during the next twelve months, or fully to fund reserve accounts established by the board with respect to bonds, not less frequently than annually and at a time determined by the board in its resolutions authorizing the issuance of bonds, must be transferred to the funds as identified in Section 11-11-170. The determination by the board of the amount to be transferred is final and is not reviewable by any court or other body.

Section 11-49-140.     Notwithstanding any other provision of law, the provisions of Chapter 23 of Title 1, do not apply to the actions of the board and the authority.

Section 11-49-150.     The General Assembly consents to and approves the master settlement agreement on behalf of this State and all of its agencies, departments, offices, political subdivisions, and other instrumentalities and bodies politic; and no such agencies, departments, offices, political subdivisions, and other instrumentalities or bodies politic of the State shall have any power or authority to bring suit


Printed Page 3218 . . . . . Thursday, May 11, 2000

against the participating manufacturers for claims in the nature of those settled by the master settlement agreement. At any time when bonds are outstanding and for one year and one day thereafter, the State must not agree to the amendment of the master settlement agreement without the approval of the authority; and this restriction on amendment of the master settlement agreement is a part of the covenant with the bondholders.

Section 11-49-160.   The State pledges and agrees with the authority, and the holders of the bonds in which the authority has included such pledge and agreement, that the State shall not limit or alter the rights of the authority to fulfill the terms of its agreements with such holders, and shall not in any way impair the rights and remedies of such holders or the security for such bonds until the bonds, together with the interest on them and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged.

Section 11-49-170.   This act and all powers granted by this chapter must be liberally construed to effectuate its intent and their purposes, without implied limitations on them. This chapter constitutes full and complete authority for all things herein contemplated to be done. All rights and powers granted in this chapter shall be as cumulative with those derived form other sources and shall not, except as expressly stated in this chapter, be construed in limitation thereof. Insofar as the provisions of this chapter are inconsistent with the provisions of any other act, general or special, the provisions of this chapter are controlling. If any clause, sentence, paragraph, section, or part of this chapter be adjudged by any court of competent jurisdiction to be invalid, this judgment shall not affect, impair, or invalidate the remainder of this chapter but is confined in its operation to the clause, sentence, paragraph, section, or part of the chapter directly involved in the controversy in which the judgment shall have been rendered.

3.     Section 1-23-10(1) of the 1976 Code, as amended by Act 77 of 1999, is further amended to read:

"(1)   'Agency' or 'State agency' means each State board, commission, department, executive department or officer, other than the legislature, the courts, or the South Carolina Tobacco Community Development Board, or the Tobacco Settlement Revenue Management Authority, authorized by law to make regulations or to determine contested cases;"

4.     Section 8-13-770 of the 1976 Code, as last amended by Act 77 of 1999, is further amended to read:


Printed Page 3219 . . . . . Thursday, May 11, 2000

"Section 8-13-770.   A member of the General Assembly may not serve in any capacity as a member of a State board or commission, except for the State Budget and Control Board, the Advisory Commission on Intergovernmental Relations, the Legislative Audit Council, the Legislative Council, the Legislative Information Systems, the Judicial Council, the Sentencing Guidelines Commission, the Commission on Prosecution Coordination, the South Carolina Tobacco Community Development Board, the Tobacco Settlement Revenue Management Authority, and the joint legislative committees."

5.     Section 15-78-60 of the 1976 Code, as last amended by Act 77 of 1999, is further amended by adding an appropriately numbered item to read:

"( )   the performance of any duty related to the service of the members of the Tobacco Settlement Revenue Management authority."

6.     If a provision of this subsection, including the provisions of Chapter 49, Title 11 of the 1976 Code as added by it, or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this subsection or the chapter added by it which may be given effect without the invalid provision or application. To this end, the provisions of this subsection and the chapter added by it are severable.

B.   Article 1, Chapter 11, Title 11 of the 1976 Code is amended by adding:

"Section 11-11-170.   (A)   All revenues payable to this State pursuant to the Master Settlement Agreement as described in Section 11-47-20(e) must be used in the manner specified in this section.

(B)(1)   Seventy-three percent of the revenues must be used for healthcare programs. These revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Healthcare Tobacco Settlement Trust Fund. Earnings on this fund must be credited to the fund. The principal must remain in the fund and only the interest earnings may be appropriated and used for the following purposes:

(a)   for fiscal year 2000-2001 only, the first twenty million dollars available from the principal derived from securitization must be used for hospital base increase;

(b)   the South Carolina Seniors' Prescription Drug Program, as provided in Chapter 130 of Title 44;

(c)   home and community-based programs for seniors coordinated by the Department of Health and Human Services;


Printed Page 3220 . . . . . Thursday, May 11, 2000

(d)   youth smoking cessation and prevention programs coordinated by the Department of Health and Environmental Control and the Department of Alcohol and Other Drug Abuse Services;

(e)   newborn infants hearing screening initiatives coordinated by the Department of Health and Environmental Control;

(f)   disease prevention and elimination of health disparities: diabetes, HIV/AIDS, hypertension, and stroke, particularly in minority populations;

(g)   other health related issues as determined by the General Assembly.

(2)   Fifteen percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Community Trust Fund. Earnings on the fund must be credited to the fund. This fund must be used to reimburse:

(a)   tobacco growers, tobacco quota holders, and tobacco warehousemen for actual losses due to reduced quotas since 1998. For purposes of this subitem, 'tobacco quota owner' and 'tobacco grower' have the meaning provided in Section 46-30-210, and the reimbursement is for losses incurred in reduced cultivation of tobacco in this State. Reimbursements must be made pursuant to eligibility requirements established by the South Carolina Tobacco Community Development Board created pursuant to Section 46-30-230;

(b)   after the reimbursement provided pursuant to subitem (a), the balance must be held in an escrow account through June 30, 2012, and used as provided in subitem (a). After June 30, 2012, any account balance must be transferred to the Healthcare Tobacco Settlement Trust Fund.

(3)   Ten percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Settlement Economic Development Fund. Earnings on the fund must be credited to the fund. This fund must be used for the following programs:

(a)   the first eighty million dollars credited to the fund is set aside to be used for the purposes specified in this item except for subitem (b);

(b)   for Fiscal Year 2000-2001 only, the next ten million dollars credited to the fund must be set aside to be available to be appropriated and used in accordance with the provisions of Section 12-37-2735; and


Printed Page 3221 . . . . . Thursday, May 11, 2000

(c)   the remaining revenue credited to the fund must be used to fund the South Carolina Water and Wastewater Infrastructure Fund as provided in Section 13-1-45.

(4)   Two percent of the revenues, or the funds obtained pursuant to Chapter 49 of Title 11, must be deposited in a fund separate and distinct from the general fund and all other funds, which is hereby established in the State Treasury styled the Tobacco Settlement Local Government Fund. Earnings on the fund must be credited to the fund. This fund must be used to fund the operation of and grants distributed by the Office of Local Government of the Division of Regional Development of the Budget and Control Board, or its successor in interest."

C.     All revenues received from the Master Settlement Agreement before July 1, 2001, must be deposited or transferred to a fund separate and distinct from the state general fund and are subject to special distributions as provided in Part I of this act. These revenues are not considered part of the general fund of the State for any purpose whatever.

D.   Article 1, Chapter 1, Title 13 of the 1976 Code is amended by adding:

"Section 13-1-45.   There is established under the direction and control of the Secretary of Commerce the South Carolina Water and Wastewater Infrastructure Fund for the purposes of selecting, assisting, and financing major qualified projects by providing financing assistance to governmental units and private entities for constructing and improving water and wastewater facilities that are necessary for public purposes, including economic development and for technology-related infrastructure grants for local units of government.

(A)   As used in this section:

(1)   'Fund' means the South Carolina Water and Wastewater Infrastructure Fund.

(2)   'Department' means the Department of Commerce.

(3)   'Financing agreement' means any agreement entered into between the department and a qualified borrower pertaining to financing assistance. This agreement may contain, in addition to financing terms, provisions relating to the regulation and supervision of a qualified project, or other provisions as the department determines. The term 'financing agreement' includes, without limitation, a loan or grant agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, ordinance or resolution, or similar instrument.


Printed Page 3222 . . . . . Thursday, May 11, 2000

(4)   'Government unit' means a municipal corporation, county, special purpose district, special service district, commissioners of public works, or another public body, instrumentality or agency of this State including combinations of two or more of these entities acting jointly to construct, own, or operate a qualified project, and any other state or local authority, board, commission, agency, department, or other political subdivision created by the General Assembly or pursuant to the Constitution and laws of this State which may construct, own, or operate a qualified project.

(5)   'Loan obligation' means a note or other evidence of an obligation issued by a qualified borrower.

(6)   'Financing assistance' means, but is not limited to, grants, contributions, credit enhancement, capital or debt reserves for debt instrument financing, interest rate subsidies, provision of letters of credit and credit instruments, provision of debt financing instrument security, and other lawful forms of financing and methods of leveraging funds that are approved by the department, and in the case of federal funds, as allowed by federal law.

(7)   'Project revenues' means all rates, rents, fees, assessments, charges, and other receipts derived or to be derived by a qualified borrower from a qualified project or made available from a special source, and as provided in the applicable financing agreement, derived from any system of which the qualified project is a part of, from any other revenue producing facility under the ownership or control of the qualified borrower including, without limitation, proceeds of grants, gifts, appropriations, including the proceeds of financing made by the department, investment earnings, reserves for capital and current expenses, proceeds of insurance or condemnation, and proceeds from the sale or other disposition of property and from any other special source as may be provided by the qualified borrower.

(8)   'Qualified borrower' means any government unit, public or private nonprofit entity approved by the department that is authorized to construct, operate, or own a qualified project and receives financing assistance pursuant to this section.

(9)   'Qualified project' means an eligible project that has been selected by the department to receive financing assistance pursuant to this section.

(10)   'Revenues' means any receipts, fees, income, or other payments received or to be received by the department, expressly for the fund including, without limitation, receipts and other payments


Printed Page 3223 . . . . . Thursday, May 11, 2000

deposited for the fund and investment earnings on any monies and accounts established for the fund.

(B)   The department shall provide the required staff and may add additional staff or contract for services, if necessary, to administer the fund in accordance with this section. The compensation, costs, and expenses incurred incident to administering the fund may be paid from revenues. If the department requests, the South Carolina Public Service Authority and the State Budget and Control Board may provide legal, technical, planning, and other assistance through intergovernmental agreement. Costs incurred by the authority or the board pursuant to such a request must be reimbursed to them by the department from revenues.

(C)   In addition to the powers and authority granted in this chapter, the department has the powers and authority necessary to carry out the purposes of this section including, but not limited to:

(1)   establish procedures and guidelines necessary for the administration of this section;

(2)   offer any form of financing assistance that the department considers necessary to any qualified borrower for a qualified project;

(3)   provide loans or other financing assistance to qualified borrowers to finance the eligible costs of qualified projects and to acquire, hold, and sell loans or other obligations at prices and in the manner the department determines advisable;

(4)   provide qualified borrowers with other financing assistance necessary to defray eligible costs of a qualified project;

(5)   enter into contracts, arrangements, and agreements with qualified borrowers, governmental units, or other otherwise eligible entities, and execute and deliver all financing agreements and other instruments necessary or convenient to the exercise of the powers granted in this chapter;

(6)   enter into agreements with a department, agency or instrumentality of the United States or of this State or another state for the purpose of planning and providing for the financing of qualified projects;

(7)   establish fiscal controls and accounting procedures to ensure proper accounting and reporting by qualified borrowers;

(8)   acquire by purchase, lease, donation, or other lawful means and sell, convey, pledge, lease, exchange, transfer, and dispose of all or part of its properties and assets of every kind and character or any interest in it to further the public purpose of the fund, without further approval or authorization;


Printed Page 3224 . . . . . Thursday, May 11, 2000

(9)   procure insurance, guarantees, letters of credit, and other forms of collateral or security or credit support from any public or private entity, including any department, agency, or instrumentality of the United States or this State, for the payment of any debt issued by a qualified borrower or other entity receiving assistance pursuant to this section, including the power to pay premiums or fees on insurance, guarantees, letters of credit, and other forms of collateral or security or credit support, without further approval or authorization;

(10)   collect fees and charges in connection with financing assistance and expend such funds to effectuate the purposes of this section;

(11)   apply for, receive and accept from any source, aid, grants, and contributions of money, property, labor, or other things of value to be used to carry out the purposes of this section;

(12)   do all other things necessary or convenient to exercise powers granted or reasonably implied by this chapter.

(D)   The department shall establish accounts and subaccounts within the state accounts and any federal accounts to receive and disburse funds to effectuate the purposes of this section. Earnings on the balances in these state accounts must be expended to effectuate the purposes of this section. Earnings on balances in the federal accounts must be credited and invested according to federal law. All accounts must be held in trust by the State Treasurer and the unexpended funds in these accounts carry forward from year to year. All earnings on state accounts must be retained in those accounts and used for the same purposes.

(E)   The department shall determine which projects are eligible projects and then select from among the eligible projects those qualified to receive financing assistance under this section. Priority in funding must be given to projects located in underdeveloped areas of the State.

(F)   In selecting qualified projects, the department shall consider the projected feasibility of the project and the amount of financial risk. The department also may consider, but is not limited to, the following criteria in making its determination that an eligible project is a qualified project:

(1)   local support of the project, expressed by resolutions by the governing bodies in the areas in which the project will be located;

(2)   economic benefit of the project;

(3)   readiness of the project to proceed;


Printed Page 3225 . . . . . Thursday, May 11, 2000

(4)   ability of the applicant to repay financial assistance obtained;

(5)   financial or in-kind contributions to the project;

(6)   development status of the county in which the project is located; and

(7)   whether the governing bodies of the county or the incorporated municipality in which the project is located provide to the department a resolution that makes a finding that the project is essential to economic development in the political subdivisions, or the department receives a resolution or certificate from the Coordinating Council for Economic Development that the project is essential to economic development in this State, or both, at the option of the department.

(G)   Qualified borrowers may obtain financing assistance pursuant to this section through financing or grant agreements. Qualified borrowers entering into financing or grant agreements or issuing debt obligations may perform any acts, take any action, adopt any proceedings, or make and carry out any contracts or agreements with the department as may be agreed to by the department and any qualified borrower and necessary for effectuating the purposes of this section.

(H)   In addition to the authorizations contained in this section, all other statutes or provisions permitting government units to borrow money and issue obligations including, but not limited to, the Revenue Bond Act for Utilities and the Revenue Bond Refinancing Act of 1937, may be utilized by any government unit in obtaining financing assistance from the department pursuant to this section. Notwithstanding the foregoing, obligations secured by ad valorem taxes may be issued by a government unit and purchased by the department or its agent without regard to any public bidding requirement.

(I)   A qualified borrower may receive, apply, pledge, assign, and grant security interest in project revenues; and, in the case of a governmental unit, its project revenues, revenues derived from a special source or ad valorem taxes, to secure its obligations as provided in this section, and may fix, revise, charge, and collect fees, rates, rents, assessments, and other charges of general or special application for the operation or services of a qualified project, the system of which it is a part, and any other revenue producing facilities from which the qualified borrower derives project revenues, to meet its obligations under a financing agreement or to provide for the construction and improving of a qualified project.


Printed Page 3226 . . . . . Thursday, May 11, 2000

(J)   If a qualified borrower fails to collect and remit in full all amounts due under any related financing agreement, note, or other obligation, the department may, on or after the date these amounts are due, notify the State Treasurer who shall withhold all or a portion of the state funds and all funds administered by this State, its agencies, boards, and instrumentalities allotted or appropriated to the government unit and apply an amount necessary to the payment of the amount due; or in the case of a private entity, the department may pursue recovery pursuant to Chapter 56 of Title 12; or the department may pursue any other remedy provided by law.

(K)   Nothing contained in this section mandates the withholding of funds allocated to a government unit or private entity which would violate contracts to which this State is a party, the requirements of federal law imposed on this State, or judgments of a court binding on this State.

(L)   Notice, proceeding, or publication, except those required in this section, are not necessary to the performance of any act authorized in this section nor is any act of the department subject to any referendum.

(M)   Following the close of each state fiscal year, the department shall submit an annual report of its activities pursuant to this section for the preceding year to the Governor and to the General Assembly.

(N)   No funds under this section may be provided, promised, or allocated to any projects authorized hereunder before November 15, 2000.

(O)   The department shall submit a quarterly report to the State Budget and Control Board of all projects obligated for funding pursuant to this section."

E.   1.   That portion of the first paragraph of Section 58-31-30 preceding item (1) and items (22) and (23) in the first paragraph of the 1976 Code, as last amended by Act 283 of 1996, are amended to read:

"The Public Service Authority has power to develop the Cooper River, the Santee River, and the Congaree River in this State, as instrumentalities of intrastate, interstate, and foreign commerce and navigation; to produce, distribute, and sell electric power; to acquire, treat, distribute, and sell water at wholesale; to collect, treat, and dispose of sewage; to reclaim and drain swampy and flooded lands; and to reforest the watersheds of -rivers in this State; and also has all powers which may be necessary or convenient for the exercise of these powers, including without limiting the generality of the foregoing, the following powers:


Printed Page 3227 . . . . . Thursday, May 11, 2000

(22)   To acquire or purchase, if requested to do so, or to construct, operate, and maintain all structures and facilities necessary, useful, or customarily used and employed in the treatment and distribution of water for industrial, commercial, domestic, or agricultural purposes and for the collection, treatment, or disposal of sewage within the counties of Berkeley, Calhoun, Charleston, Clarendon, Colleton, Dorchester, Orangeburg, and Sumter. The provisions of this section do not apply to the acquisition or purchase of existing electric systems.

(23)   To acquire, treat, transmit, distribute, and sell water at wholesale and to collect, treat, and dispose of sewage within the counties of Berkeley, Calhoun, Charleston, Clarendon, Colleton, Dorchester, Orangeburg, and Sumter if requested in writing to do so by the governing body of any incorporated municipality, by the governing body of any special purpose district providing water or sewer service in the unincorporated areas of each county, or by the governing body of each county for those unincorporated areas not so provided water or sewer service by a special purpose district. The authority may not transfer water from one river basin to another except for those located in the counties specified in this item. However, the authority shall prepare and maintain its books and records for its water supply and wastewater operations separate and apart from its books and records for the generation, transmission, and distribution of electric power. The costs of water supply operations, including the loss of the generation of hydroelectric power, may not affect rates and charges for electric service. Water must be offered for sale by the authority on a nondiscriminatory basis without regard to whether electricity is also purchased from the authority."

2.   The first paragraph of Section 58-31-30 of the 1976 Code, as last amended by Act 283 of 1996, is further amended by adding at the end:

"(24)   To establish, in addition to any entities previously established, such entities as necessary or appropriate to sell water at wholesale, to collect, treat, and dispose of sewage, and to carry out the other purposes of this chapter."

F.   Section 58-31-80 of the 1976 Code, as last amended by Act 156 of 1987, is further amended to read:

"Section 58-31-80.     The Public Service Authority is created primarily for the purpose of developing the Cooper River, the Santee River, the Congaree River, and their tributaries upstream to the confluence of the Broad and Saluda Rivers and upstream on the Wateree River to a point at or near Camden and other similar projects as instrumentalities of intrastate, interstate, and foreign commerce and


Printed Page 3228 . . . . . Thursday, May 11, 2000

navigation; of reclaiming wastelands by the elimination or control of flood waters, reforesting the watersheds of the rivers and improving public health conditions in those areas. It is found that the project authorized by this chapter is for the aid of intrastate, interstate, and foreign commerce and navigation, and that the aid and improvement of intrastate, interstate, and foreign commerce and navigation, the development, sale, and distribution of hydroelectric power, and the treatment, sale, and distribution of water at wholesale, and the collection, treatment, and disposal of sewage, are in all respects for the benefit of all the people of the State, for the improvement of their health and welfare and material prosperity, and are public purposes, and being a corporation owned completely by the people of the State, the Public Service Authority is required to pay no taxes or assessments upon any of the property acquired by it for this project or upon its activities in the operation and maintenance of the project, except as provided in this section. The securities and other obligations issued by the Public Service Authority, their transfer and the income from them at all times are free from taxation. However, unless otherwise provided in any contract with an agency of the United States Government as assists in financing the projects contemplated in this section or any other agency from which the funds may be secured, all electrical energy developed by the authority must be sold at rates in the determination of which the taxes which the project would pay if privately owned, to the extent provided in this section, as well as other rate-making factors properly entering into the manufacture and distribution of the energy must be considered. After payment of necessary operating expenses and all annual debt requirements on bonds, notes, or other obligations at any time outstanding and the discharge of all annual obligations arising under finance agreements with the United States or any agency or corporation of the United States and indentures or other instruments under which bonds have been, or may be issued, the authority shall pay annually to the various counties of the State a sum of money equivalent to the amount paid for taxes on properties at the time of their acquisition by the authority, acquired, or to be acquired, in the counties, and the authority shall pay to all municipalities and school districts in the counties in which the authority has acquired, or may acquire properties, a sum of money equivalent to the amount paid for taxes to the school districts and municipalities on the properties at the time of their acquisition by the authority; and no other taxes may be considered in the fixing of the rates of the authority. From the funds to be paid under this section the

Printed Page 3229 . . . . . Thursday, May 11, 2000

counties, school districts, and municipalities annually shall apply a sum sufficient for the debt requirements for bonds and other obligations of the counties, school districts, and municipalities for which the properties were taxed at the time of their acquisition by the authority, with the remainder of the funds to be expended in accordance with law."

G.   Except where otherwise stated, this section takes effect upon approval by the Governor.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.

Amendment No. 327A

Senators MOORE and PASSAILAIGUE proposed the following Amendment No. 327A (4775C099.TLM), which was adopted (#87A):

Amend the bill, as and if amended, Part IA, Section 8, page 132, by adding after line 11:

Tobacco Settlement Securitization                   (7)

Hospital Base Increase                         $20,000,000.00

Amend further Part IB, Section 8, page 474, by adding after line 6 an appropriately numbered Proviso to read:

8. . (GP: Tobacco Settlement / Hospital Base Increase) From the funds set aside in the Health Care Tobacco Settlement Trust Fund, twenty million dollars must be used during Fiscal Year 2000-2001 to fund the hospital base increase.

Amend further Part IB, Section 72, page 580, by adding an appropriately numbered Proviso to read:

72. .   (GP: Tobacco Settlement / Property Tax Relief Fund) From the funds set aside in the Tobacco Settlement Economic Development Fund, ten million dollars is appropriated to the Personal Property Tax Relief Fund established pursuant to Section 12-37-2735.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MOORE explained the amendment.

The amendment was adopted.


Printed Page 3230 . . . . . Thursday, May 11, 2000

The question then was the adoption of Section 69, pursuant to Rule 24B.

Having received the required vote, Section 69 was adopted pursuant to Rule 24B.

Amendment No. 317

Senator MATTHEWS proposed the following Amendment No. 317 (4775R063.JWM), which was adopted (#88):

Amend the bill, as and if amended, Part II, SECTION 71, page 726, by striking on line 2,

/     6,000,000 / and inserting in lieu thereof     / 5,850,000 /

Amend the bill further, as and if amended, Part II, SECTION 71, page 728, by striking line 1 and inserting the following:

/   (b)   South Carolina State University PSA             450,000 /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

Motion Adopted

At 3:55 A.M., Senator LEATHERMAN asked unanimous consent to make a motion that no further amendments to the Bill be received on the Desk for consideration with the exception of the necessary technical and balancing amendments to be delivered and certified by the Clerk.

There was no objection and the motion was adopted.

Amendment No. 308A

Senator PASSAILAIGUE proposed the following Amendment No. 308A (4775R215.ELP), which was not adopted:

Amend the bill, as and if amended, Part II, SECTION 71, page 729, after line 8, by adding the following:

/   (18)   State Ports Authority

Federally Authorized Charleston Harbor

Deepening and Widening Project           26,100,000 /

Amend the bill further, as and if amended, Part II, SECTION 71, page 729, by striking line 27 and inserting in lieu thereof the following:

/   (D)   No funds for the projects authorized in subsection (A) shall be released until January 1, 2001, except that item (18) as contained in subsection (C) shall not be authorized until July 1, 2001, unless


Printed Page 3231 . . . . . Thursday, May 11, 2000

otherwise authorized at an earlier date by the Joint Bond Review Committee. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

ACTING PRESIDENT PRESIDES

At 4:00 A.M., Senator BRYAN assumed the Chair.

Senator LAND spoke on the amendment.

PRESIDENT PRESIDES

At 4:05 A.M., the PRESIDENT assumed the Chair.

Senator LAND spoke on the amendment.

Senator RYBERG spoke on the amendment.

Parliamentary Inquiry

Senator RYBERG made a Parliamentary Inquiry as to whether or not the adoption of the amendment would require a two-thirds vote.

The PRESIDENT stated that adoption of the amendment would require a two-thirds vote.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 12; Nays 18

AYES

Alexander                 Branton                   Grooms
Hutto                     Mescher                   Moore
Passailaigue              Peeler                    Reese
Russell                   Thomas                    Washington

Total--12

NAYS

Bryan                     Drummond                  Giese
Glover                    Hayes                     Jackson
Land                      Leatherman                Leventis
Patterson                 Rankin                    Richardson

Printed Page 3232 . . . . . Thursday, May 11, 2000

Ryberg                    Setzler                   Short
Smith, J. Verne           Waldrep                   Wilson

Total--18

The amendment was not adopted.

Motion Adopted

On motion of Senator SETZLER, with unanimous consent, Part II was closed to further amendments.

Senator PASSAILAIGUE spoke on the Bill.

Senator BRANTON spoke on the Bill.

The Senate proceeded to a consideration of Part III.

Amendment No. 126

Senators GIESE, RYBERG and BRANTON proposed the following Amendment No. 126 (9610HTC00.DOC), which was adopted (#89):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part III, Section 3, page 731, by striking item (13.1) on lines 15 and 16.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GIESE explained the amendment.

Senator LEVENTIS spoke on the amendment.

The amendment was adopted.

Motion Adopted

On motion of Senator LAND, with unanimous consent, Part III was closed to further amendments.

The Senate proceeded to a consideration of Part IV.

Amendment No. 117

Senator REESE proposed the following Amendment No. 117 (BFD030.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)


Printed Page 3233 . . . . . Thursday, May 11, 2000

Amend the bill, as and if amended, Part IV, Section 2, page 729, by inserting an appropriately numbered item to read:

/ Chesnee Fire and Rescue   100,000 /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 242

Senator MATTHEWS proposed the following Amendment No. 242 (4775EMS21.DOC), which was adopted (#90):

Amend the bill, as and if amended, Part IV, Section 2, page 732, lines 23-25, item 3b.1, by striking lines 23 through 25 in their entirety and inserting:

/   the attendance area which was a school district formerly declared impaired that has been incorporated into a consolidated school district. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator MATTHEWS explained the amendment.

The amendment was adopted.

Amendment No. 298

Senator SHORT proposed the following Amendment No. 298 (4775R203.LHS), which was tabled:

Amend the bill, as and if amended, Part IV, Section 2, by adding a new item after line 33 to read:

/   ( )   Jenkinsville Water District               300,000     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 299

Senator RANKIN proposed the following Amendment No. 299 (4775R205.LAR), which was tabled:


Printed Page 3234 . . . . . Thursday, May 11, 2000

Amend the bill, as and if amended, Part IV, Section 2, by adding a new item after line 33 to read:

/     ( )   Conway Theatre Project           150,000         /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RANKIN explained the amendment.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 300

Senator SHORT proposed the following Amendment No. 300 (4775R204.LHS), which was tabled:

Amend the bill, as and if amended, Part IV, Section 2, by adding a new item after line 33 to read:

/   ( )   Chester County Fire Training Center           125,000 /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 301

Senator HOLLAND proposed the following Amendment No. 301 (4775R207.DHH), which was tabled:

Amend the bill, as and if amended, Part IV, Section 2, by adding a new item after line 33 to read:

/     ( )     Cleveland School Monument           25,000     /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was laid on the table.

Amendment No. 146

Senator GREGORY proposed the following Amendment No. 146 (BFD051.DOC), which was adopted (#91):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IV, Section 2, page 737, line 34, by inserting an appropriately numbered item to read:


Printed Page 3235 . . . . . Thursday, May 11, 2000

/ Andrew Jackson State Park   25,000 /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GREGORY explained the amendment.

The amendment was adopted.

Motion Adopted

On motion of Senator LAND, with unanimous consent, Part IV was closed to further amendments.

Amendment No. 328

On motion of Senator LAND, with unanimous consent, Amendment No. 328 was taken up for immediate consideration.

Senator LAND proposed the following Amendment No. 328 (4775R072.JCL), which was adopted (#92):

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

/                       SECTION   ___
TO AMEND SECTION 56-3-910, AS AMENDED, OF THE 1976 CODE, RELATING TO THE DISPOSITION OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES, SO AS TO PROVIDE FOR THE CREDITING OF MOTOR VEHICLE LICENSING AND REGISTRATION FEES AND PENALTIES NOT ALREADY CREDITED TO THE SOUTH CAROLINA TRANSPORTATION INFRASTRUCTURE BANK TO THE STATE HIGHWAY FUND BEGINNING JULY 1, 2000.

A.   Section 56-3-910 of the 1976 Code, as amended by Act 148 of 1997, is further amended to read:

"Section 56-3-910.   (A)     All fees and penalties collected by the department under the provisions of this chapter shall must be placed in the state general fund distributed as provided in subsection (B) of this section except for fees and penalties collected pursuant to Sections 56-3-660 and 56-3-670 which must be placed in the state highway account of the South Carolina Transportation Infrastructure Bank and except for those fees and penalties which must be credited to a different account as otherwise provided for by law.

(B)   Beginning in fiscal year 1998-99, one-half of the revenues are remitted to the bank in fiscal year 1998-99, and the entirety of the


Printed Page 3236 . . . . . Thursday, May 11, 2000

revenue is remitted to the bank in fiscal year 1999-00 and thereafter. Twenty percent of the fees and penalties collected pursuant to this chapter, except for those provided for separately in subsection (A) of this section, must be credited to the State Highway Fund of the Department of Transportation and eighty percent to the general fund of the State, beginning in fiscal year 2000-2001."

B.   This section takes effect July 1, 2000. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

The amendment was adopted.

The Senate proceeded to a consideration of Part IA.

Amendment No. 229

Senator SETZLER proposed the following Amendment No. 229 (SBD\011.DOC), which was adopted (#93):

Amend the bill, as and if amended, Part IA, Section 1, Department of Education, page 2, by striking lines 37 and 38.

Amend the bill further (as and if amended), page 22, by striking line 10 column 7 and inserting

Column (7)

Employer Contributions                       7,738,062

Amend the bill further (as and if amended), page 9, by striking line 23 and inserting

Column(7)

(19.00)

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Amendment No. 154

Senator PEELER proposed the following Amendment No. 154 (SBD\009.DOC), which was tabled:

Amend the bill, as and if amended, Part IA, Section 1, Department of Education, page 20, by striking lines 3 and 4 in their entirety.


Printed Page 3237 . . . . . Thursday, May 11, 2000

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PEELER explained the amendment.

Senator SETZLER moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 270

Senators McCONNELL and THOMAS proposed the following Amendment No. 270 (JCK014.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IA, Section 1, DEPARTMRENT OF EDUCATION, page 19, by inserting after line 4

COLUMN 7   COLUMN 8

District Salary Supplement         19,074,946     19,074,946

Amend the bill further, as and if amended, Part IA, Section 1, DEPARTMRENT OF EDUCATION, page 19, by inserting after line 4

COLUMN 7   COLUMN 8

District Fringe Supplement         3,299,966     3,299,966

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 232

Senator SETZLER proposed the following Amendment No. 232 (BEH0008.DOC), which was adopted (#94):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IA, Section 5E, University of Charleston, page 57, line 31, opposite the Governor's School by:

COLUMN 7   COLUMN 8

/   STRIKING:                 100,000       100,000

Amend the bill further, as and if amended, Section 5E, University of Charleston, page 358, line 36, opposite the Governor's School by:

COLUMN 7   COLUMN 8

INSERTING                   100,000       100,000 /

Renumber sections to conform.


Printed Page 3238 . . . . . Thursday, May 11, 2000

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 169

Senators GREGORY and JACKSON proposed the following Amendment No. 169 (9621HTC00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part IA, SECTION 12, Department of Alcohol Other Drug Abuse Services, page 174, lines 2 and 3, opposite:

Youth Smoking Prevention &

Cessation                         COLUMN 7   COLUMN 8

BY STRIKING ON LINE 3         /1,750,000/

AND INSERTING                 /3,250,000/

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator GREGORY explained the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 125

Senator ELLIOTT proposed the following Amendment No. 125 (4775R127.DE), which was tabled:

Amend the bill, as and if amended, Part 1B, page 250, after line 20, by adding:

/                                     Column 7   Column 8

Mullins Downtown Revitalization Project   246,000   0   /

Amend the bill further, as and if amended, Part IB, Section 27, page 500, by adding after line 16, a new proviso to read:

/   27. . (CMRC: Economic Developing Coordinating Council) From the amount set aside in Section 12-27-1270, two hundred forty-six thousand dollars ($246,000) shall be provided to the City of Mullins for the Mullins Discovery Depot downtown revitalization project. /

Renumber sections to conform.

Amend sections, totals and title to conform.


Printed Page 3239 . . . . . Thursday, May 11, 2000

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 160A

Senators MATTHEWS, WASHINGTON, HUTTO and SETZLER proposed the following Amendment No. 160A (4775R211.JWM), which was adopted (#95):

Amend the amendment, as and if amended, Part IB, page 434, by striking lines 28 through 33 and inserting:

  /   1.5.   (SDE: EFA Formula/Base Student Cost Inflation Factor) To the extent possible within available funds, it is the intent of the General Assembly to provide for 100 percent of full implementation of the Education Finance Act to include an inflation factor projected by the Division of Budget and Analyses to match inflation wages of public school employees in the Southeast. The base student cost for the current fiscal year has been determined to be $1,937 $2,012 which includes a 3.1% 3.9% inflation factor.

Any unallocated Education Finance Act funds for FY 1999-00 must first be used to reimburse the lost local revenue of any school district as a result of assessed value of property classified under Section 12-43-220(a) and provided: 1) is at least ten percent of the total assessed value of real property in the school district; 2) as of December 31, 1999, the property has been in bankruptcy status; and 3) on which no local taxes are collected. The district shall receive a special allocation equal to the lost local revenue based on the local taxes irrecoverable by the school district. This special appropriation shall be effective for two years, until the two year delay in the index of taxpaying ability under Section 59-20-10 replaces the lost dollars with state funds. It is the responsibility of the county auditor to report such lost revenues to the Department of Revenue and the State Department of Education for verification and payment. Any remaining unallocated Education Finance Act funds at the end of the current fiscal year must be allocated to the school districts for school building aid on a non-matching basis on the same basis that districts receive Education Finance Act allocations and/or for the Summer School allocated according to Proviso 1.37.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.


Printed Page 3240 . . . . . Thursday, May 11, 2000

Senator SETZLER moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 271

Senators McCONNELL and THOMAS proposed the following Amendment No. 271 (3946MM00.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, SECTION 1, DEPARTMENT OF EDUCATION, page 435, paragraph 1.6, by inserting after line 17:

/   From the funds appropriated for District Salary Supplements and District Fringe Supplements, the Department shall allocate $22,374,912.00, according to the Education Finance Act. A local match in not required. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 241

Senator SETZLER proposed the following Amendment No. 241 (4775EMS17.DOC), which was adopted (#96):

Amend the bill, as and if amended, Part IB, Section 1, Department of Education, page 440, proviso 1.27, lines 29 and 30, by striking / Education and the / and inserting:

/   Education. However, a school district may not consider a retired member of the system for employment before May 31. The     /

Amend the bill further, as and if amended Part IB, Section 1A, Department of Education, page 456, proviso 1A.43, lines 17 and 18 by striking / Education and the / and inserting:

/   Education. However, a school district may not consider a retired member of the system for employment before May 31. The   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.


Printed Page 3241 . . . . . Thursday, May 11, 2000

Amendment No. 226

Senator SETZLER proposed the following Amendment No. 226 (4775EMS16.DOC), which was adopted (#97):

Amend the bill, as and if amended, Part IB, Section 1, Department of Education, page 445, proviso 1.64, line 15, by inserting:

/   (SDE: Statewide Implementation of EAA Readiness Test) The readiness tests for grades one and two required under Section 59-18-33 will be field-tested in school year 2000-2001 and fully implemented in school year 2001-02. Funds appropriated shall be used for a full-scale field test of the readiness assessments and to provide teachers of grades one and two training in the use of the assessment system. Districts shall excuse teachers who complete this training prior to the beginning of the contract year from the equivalent days of professional development required during the regular school year. CSAB shall continue to be administered in Summer/Fall 2000 and in Summer/Fall 2001.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Amendment No. 280

Senators SHORT and GREGORY proposed the following Amendment No. 280 (4775EMS.25.DOC), which was adopted (#98):

Amend the bill, as and if amended, Part IB, Section 1A, Department of Education, page 459, before line 22, by adding an appropriately numbered paragraph to read:

/   (SDE - EIA: Education Oversight Committee)     To provide information and assist in the effective expenditure of funds provided in Part 1A of this act for the responsibilities assigned to the Education Oversight Committee by the Education Accountability Act, the membership of the Oversight Committee shall include a school district superintendent who shall be appointed by the Governor.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.


Printed Page 3242 . . . . . Thursday, May 11, 2000

Amendment No. 134

Senator RYBERG proposed the following Amendment No. 134 (4775R031.SHR), which was tabled:

Amend the bill, as and if amended, Part IB, Section 18, ARTS COMMISSION, page 491, proviso 18.5, line 35, by striking paragraph 18.5 and inserting:

/   18.5. (ARTS: Grants Program)   Of the fund appropriated for Grantmaking, $100,000 shall be allocated to the Newberry Opera Company, $100,000 shall be allocated to the Aiken Center for the Arts and The Self Family Arts Center, $75,000 shall be allocated to the Heyward Moore Fine Arts Center (Lexington), $100,000 shall be allocated to the Lexington Arts Association, $100,000 shall be allocated to the Spartanburg Arts Center, and $100,000 shall be allocated to the Spoleto Arts Festival.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RYBERG explained the amendment.

Senator LAND moved to lay the amendment on the table.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 18; Nays 17

AYES

Alexander                 Bryan                     Drummond
Glover                    Hayes                     Hutto
Jackson                   Land                      Leventis
Martin                    Matthews                  Moore
Patterson                 Rankin                    Setzler
Short                     Smith, J. Verne           Washington

Total--18

NAYS

Bauer                     Branton                   Giese
Gregory                   Grooms                    Leatherman
McConnell                 Mescher                   Peeler
Ravenel                   Reese                     Richardson

Printed Page 3243 . . . . . Thursday, May 11, 2000

Russell                   Ryberg                    Thomas
Waldrep                   Wilson

Total--17

Without changing the outcome, Senator BRANTON asked unanimous consent to make a motion that Senators RAVENEL and McCONNELL be recorded as voting against the motion to table the amendment. Having the effect of changing the outcome, their votes were not recorded.

The amendment was laid on the table.

Statement by Senator SETZLER

On May 10 I offered and voted for Amendment No. 147 which would have provided $75,000 to the Heyward Moore Fine Arts Center. Funding was to be provided through funds appropriated to the South Carolina Fine Arts Commission for grantmaking. Today, May 11, Amendment No. 134 was offered that included funding for the Heyward Moore Fine Arts Center. I was not able to vote for this amendment because of the inclusion of the other projects. If all of the projects proposed were funded, the grantmaking program would have been depleted.

Amendment No. 151

Senator GROOMS proposed the following Amendment No. 151 (BFD052.DOC), which was not adopted:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 24, Department of Natural Resources, page 496, line 24, by adding an appropriately numbered paragraph to read:

/ ( ) (DNR: Berkeley County Boat Landing) The Department must allocate from carry forward funds in the agency's Operating Revenue account, an amount of six hundred eighty thousand dollars ($680,000) for the Bonneau Beach, Berkeley County Boat Landing Construction and Expansion project. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS explained the amendment.

Senator LEVENTIS moved to lay the amendment on the table.


Printed Page 3244 . . . . . Thursday, May 11, 2000

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 17; Nays 17

AYES

Anderson                  Bryan                     Drummond
Glover                    Hutto                     Jackson
Land                      Leventis                  Matthews
Moore                     Patterson                 Rankin
Reese                     Setzler                   Short
Smith, J. Verne           Washington

Total--17

NAYS

Alexander                 Bauer                     Branton
Gregory                   Grooms                    Hayes
Leatherman                Martin                    Mescher
Passailaigue              Peeler                    Richardson
Russell                   Ryberg                    Thomas
Waldrep                   Wilson

Total--17

The PRESIDENT voted "no."

Without changing the outcome, Senator BRANTON asked unanimous consent to make a motion that Senators RAVENEL and McCONNELL be recorded as voting against the motion to table the amendment. Having the effect of changing the outcome, their votes were not recorded.

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator LEVENTIS spoke on the amendment.

Senator LEVENTIS moved to lay the amendment on the table.

Objection

Senator BRANTON asked unanimous consent to make a motion to be granted leave to address the body with brief remarks.


Printed Page 3245 . . . . . Thursday, May 11, 2000

Senator RANKIN objected.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 17; Nays 17

AYES

Anderson                  Bryan                     Drummond
Ford                      Glover                    Hutto
Jackson                   Land                      Leventis
Matthews                  Moore                     Patterson
Rankin                    Reese                     Setzler
Short                     Washington

Total--17

NAYS

Alexander                 Bauer                     Branton
Gregory                   Grooms                    Hayes
Leatherman                Martin                    Mescher
Passailaigue              Peeler                    Richardson
Russell                   Ryberg                    Thomas
Waldrep                   Wilson

Total--17

The PRESIDENT voted "no."

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator LEVENTIS argued contra to the adoption of the amendment.

Senator RANKIN moved to table the amendment.

Point of Order

Senator BRANTON raised a Point of Order that the motion was out of order inasmuch as Senator RANKIN did not have the floor and the motion would require unanimous consent.


Printed Page 3246 . . . . . Thursday, May 11, 2000

Senator LEVENTIS continued arguing contra to the adoption of the amendment.

The question then was the adoption of the amendment.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 17; Nays 18

AYES

Alexander                 Bauer                     Branton
Gregory                   Grooms                    Hayes
Leatherman                Martin                    Mescher
Passailaigue              Peeler                    Richardson
Russell                   Ryberg                    Thomas
Waldrep                   Wilson

Total--17

NAYS

Anderson                  Bryan                     Drummond
Ford                      Glover                    Hutto
Jackson                   Land                      Leventis
Matthews                  Moore                     Patterson
Rankin                    Reese                     Setzler
Short                     Smith, J. Verne           Washington

Total--18

The amendment was not adopted.

Amendment No. 98

Senators COURSON and McGILL proposed the following Amendment No. 98 (BFD041.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 26, , page 497, line 27, by adding an appropriately numbered paragraph to read: (PRT: Legacy Trust Fund) From the funds appropriated to the Department in Part IA of this Bill, the Department must transfer five hundred thousand dollars (500,000) to the State's Legacy Trust Fund. This transfer is for FY 2000-2001 only.   /


Printed Page 3247 . . . . . Thursday, May 11, 2000

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator DRUMMOND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 163

Senator McCONNELL proposed the following Amendment No. 163 (BFD039.DOC), which was adopted (#99):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 26, Department of Parks Recreation and Tourism, page 497, proviso 26.6, by striking the proviso in its entirety and inserting an appropriately numbered proviso to read: /

/ ( ) (PRT: Morris Island Lighthouse) The five hundred thousand dollars ($500,000) previously appropriated to the Department for the Morris island Lighthouse must be carried forward and used for the preservation and restoration of the Morris Island Lighthouse. If, for any reason, the lighthouse becomes the property of the State, then all funds appropriated for the lighthouse shall be made available to the State agency that assumes the responsibility of maintaining the lighthouse./

Renumber sections to conform.

Amend sections, totals, and title to conform.

Senator RANKIN moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 248

Senators RANKIN and McGILL proposed the following Amendment No. 248 (BFD068.DOC), which was adopted (#100):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 26, Department of Parks Recreation and Tourism, page 497, line 27, by adding an appropriately numbered paragraph to read:

/ ( ) (PRT: Tourism and Promotion) From the funds appropriated in Program II.A for Regional Promotion Contributions, the Department must distribute seventy five thousand dollars ($75,000) to the Waccamaw Council of Governments. The Department shall retain fifty


Printed Page 3248 . . . . . Thursday, May 11, 2000

thousand dollars ($50,000) for tourism related research in the Horry-Georgetown region. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RANKIN explained the amendment.

The amendment was adopted.

Amendment No. 257

Senators ELLIOTT, LEVENTIS and WILSON proposed the following Amendment No. 257 (BFD069.DOC), which was adopted (#101):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 27, Department of Commerce, page 500, line 17, by adding an appropriately numbered paragraph to read:

/ ( ) (CMRC: City of North Myrtle Beach) From the Tobacco Settlement revenues appropriated to the Department, one million dollars ($1,000,000) must be distributed to the city of North Myrtle Beach for a beach storm drainage project, if and when the project receives the appropriate permits from the Department of Health and Environmental Control. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

The amendment was adopted.

Amendment No. 247

Senators ELLIOTT and LEVENTIS proposed the following Amendment No. 247 (BFD065.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 27, Department of Commerce, page 500, line 17, by adding an appropriately numbered paragraph to read:

/ ( ) (CMRC: Mullins Discovery Depot) From tobacco revenues appropriated to the Department in Part IA of this Act, the Department must distribute four hundred forty six thousand dollars ($446,000) to the city of Mullins, SC for the Mullins Discovery Depot project. /


Printed Page 3249 . . . . . Thursday, May 11, 2000

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 259

Senator ELLIOTT proposed the following Amendment No. 259 (4775R195.DE), which was tabled:

Amend the bill, as and if amended, Part IB, Section 27, page 500, Department of Commerce, after line 17, by adding a new Proviso to read:

/     27. .     (CMRC: Florence County - Johnsonville Library) Of the funds appropriated to the Tobacco Securitization Fund, six hundred ninety thousand dollars shall be appropriated to the Johnsonville Library in Florence County.     /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND explained the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 296

Senators DRUMMOND, LAND, MOORE, BRYAN and HUTTO proposed the following Amendment No. 296 (BFD067.DOC), which was adopted (#102):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 32, Attorney General's Office, by striking paragraph 32.2 and inserting the following:

/ (AG:Hiring of Attorneys) No department or agency of the executive department of State Govenment, except the Office of the Governor and cabinet departments, and the Budget and Control Board shall hire any classified or temporary attorney as an employee except upon the written approval of the Attorney General and at a compensation approved by him. All such attorneys, except those excluded above, shall at all times shall be under the supervision and


Printed Page 3250 . . . . . Thursday, May 11, 2000

control of the Attorney General except as otherwise provided by law unless obtaining prior approval by the Budget and Control Board. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LAND moved that the amendment be adopted.

The amendment was adopted.

Amendment No. 253

Senator RYBERG proposed the following Amendment No. 253 (NIC0014.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 36, DEPARTMENT OF PUBLIC SAFETY, page 509, proviso , line 4, by adding an appropriately numbered paragraph to read:

/Of the funds appropriated to the Department of Public Safety, $800,000 must be used to install closed circuit televisions in Division of Motor Vehicles' local offices. The televisions will be used to improve security for staff and customers. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RYBERG explained the amendment.

Senator LAND moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 83A

Senator BAUER proposed the following Amendment No. 83A (4775R027.AB), which was adopted (#103):

Amend the bill, as and if amended, Part IB, Section 37, Department of Corrections, page 511, by striking proviso 37.26 and inserting an appropriately numbered paragraph to read:

/   37.26.   (CORR: Television)   The department shall not expend appropriated funds for cable-television, satellite television, or similar multi-channel television systems in any correctional institution except for use in educational or instructional programs.   /

Renumber sections to conform.

Amend sections, totals and title to conform.


Printed Page 3251 . . . . . Thursday, May 11, 2000

Senator BAUER explained the amendment.

The amendment was adopted.

Amendment No. 252

Senator RYBERG proposed the following Amendment No. 252 (JCK005.DOC), which was adopted (#104):

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 42, Public Service Commission, page 516, by adding an appropriately numbered paragraph to read:

/ In addition, the Public Service Commission is directed to transfer $800,000 from the Dual Party Relay Service Operating Fund to the South Carolina Educational Television Commission for the purpose of implementing closed captioning of programming broadcast over the South Carolina Educational Television network. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS spoke on the amendment.

The amendment was adopted.

Amendment No. 263

Senators RAVENEL and PATTERSON proposed the following Amendment No. 263 (CEB0001.DOC), which was tabled:

(Reference is the Senate Finance Committee Report)

Amend the bill, as and if amended, Part IB, Section 54, Legislative Department, page 526, proviso 54.28, line 7, by striking / $1,000 per month effective January 1, 1995 / and inserting / $1,400 per month. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS moved to lay the amendment on the table.

The amendment was laid on the table.

Amendment No. 228

Senator COURSON proposed the following Amendment No. 228 (21394SD00.DOC), which was adopted (#105):

(Reference is the Senate Finance Committee Report)


Printed Page 3252 . . . . . Thursday, May 11, 2000

Amend the bill as and if amended, Part IB, Section 63B, Budget and Control Board, Division of Operations, page 543, which begins on line 27, by adding the following at the end of 63B.12:

/   The Budget and Control is also directed to continue to establish a coordinated statewide 800 MHz radio network that was begun in fiscal year 1999-2000 by the authorization of the General Assembly to purchase a public radio network along the coastal region. The purchase of the remaining statewide 800 MHz is essential to providing coordinated statewide coverage for interagency communications, particularly for emergency response by public safety agencies. It is the intent of the General Assembly to support the completion of the purchase of the statewide system to ensure that the citizens of South Carolina can be protected in time of emergency through a fully coordinated interagency system. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator SETZLER explained the amendment.

The amendment was adopted.

Amendment No. 122

Senator PASSAILAIGUE proposed the following Amendment No. 122 (4775R026.ELP), which was adopted (#106):

Amend the bill, as and if amended, Part 1B, Section 72.89, page 579, by striking lines 25 and 26 and inserting:

/   72.89   (GP: D.A.R.E.)   As soon as practicable, the State Law Enforcement Division shall transfer the Drug Abuse Resistance Education Program (D.A.R.E.) to the South Carolina Department of Public Safety. Any funds not expended by the Drug Abuse Resistance Education (D.A.R.E.) Fund at the end of the fiscal years shall also be transferred to the Department of Public Safety for the operation of the D.A.R.E.) program.   /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PASSAILAIGUE explained the amendment.

Senator LAND spoke on the amendment.

The amendment was adopted.


Printed Page 3253 . . . . . Thursday, May 11, 2000

Amendment No. 145

Senator MARTIN proposed the following Amendment No. 145 (9616HTC00.DOC), which was adopted (#107):

(Reference is the Senate Finance Committee Report)

Amend the bill as and if amended, Part IB, Section 72, General and Temporary, page 580, by adding an appropriately numbered paragraph to read:

/ 72.___ (GP: Prohibit Influencing Lottery Referendum) No money collected, allocated or appropriated in this act may be spent or used directly to influence the "yes" or "no" outcome of the November 7, 2000 AD state lottery referendum. /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

The question then was the adoption of Section 7.

Having received the required vote, Section 7 was adopted, pursuant to Rule 24B.

Motion Adopted

Senator DRUMMOND asked unanimous consent to make a motion that the Finance Committee be allowed to prepare the necessary technical and balancing amendment to be delivered to, and certified by, the Clerk and to be adopted upon his certification for inclusion in the Bill.

There was no objection.

Amendment No. 330A

Senator DRUMMOND proposed the following Amendment No. 330A (4775R079.JWD), which was adopted (#108A):

/   Amend the bill, as and if amended, Part IA, Section 54F, pages 341 and 342, by striking Columns 7 and 8 in their entirety.

Amend the bill further, as and if amended, Part IA, Section 54A, page 333, on line 26, Approved Accounts, by striking columns 7 and 8, and inserting the following:

Column 7               Column 8

1,448,769               1,448,769


Printed Page 3254 . . . . . Thursday, May 11, 2000

Amend the bill further, as and if amended, Part IA, Section 54A, page 334, Total Authorized FTE Positions, by striking columns 7 and 8, and inserting:

Column 7               Column 8

(196.00)                 (196.00)

Amend the bill further, as and if amended, Part IA, Section 54B, page 335, on line 23, Approved Accounts, by striking columns 7 and 8, and inserting the following:                                                             Column 7               Column 8

1,125,409               1,125,409

Amend the bill further, as and if amended, Part IA, Section 54B, page 336, Total Authorized FTE Positions, by striking columns 7 and 8, and inserting:                                                                       Column 7               Column 8

(256.00)                 (256.00)

Amend the bill further, as and if amended, Part III, pages 730-731, by striking Part III in its entirety.

Amend the bill further, as and if amended, Part IV, Section 1, page 732, lines 5-6, by STRIKING:

/ SECTION 1.   The   sources of general fund revenues appropriated in Section 2 of this part is $130,043,037 in projected fiscal year 1999-2000 surplus. / and INSERTING:

/ SECTION 1.   (A) The sources of general fund revenues appropriated in Section 2 of this part is $130,043,037 in projected Fiscal Year 1999-2000 Surplus, $54,514,000 in lapsed General Fund appropriations by changing from Fiscal Year 1999-2000 to Fiscal Year 2000-2001 the accounting for the July, 2000 distribution pursuant to Chapter 27, Title 6 of the 1976 Code, the State Aid to Subdivisions Act and as provided in subsection (B) of this section and $5,872,633 in lapsed video poker monitoring fees.

Of the funds appropriated in Act 136 of 1999, $6,500,000 for the Local Government Fund must lapse to the General Fund of the State for Fiscal Year 1999-2000.

An amount not exceeding $5,872,633 retained by the Department of Revenue pursuant to Section 12-21-2720(F) of the 1976 Code as that provision existed before July 1, 2000, lapses to the general fund of the State./

Amend the bill further, as and if amended, Part IV, Section 2, page 732, after line 10, by inserting the following items to read:

/

(1)   General Reserve Fund Transfer                   $ 2,545,350


Printed Page 3255 . . . . . Thursday, May 11, 2000

(2)   Aid to Subdivisions - State Treasurer

Local Government Fund                         3,818,025

(3)   Aid to Subdivisions - Comptroller General

Personal Property Tax Relief                     10,000,000

(4)   Department of Revenue

Video Poker License Fee Refunds                 14,000,000

(4.1) (Video Game License Refund) The Department of Revenue shall pay for the refund of any video Game machine license fees from the supplemental appropriations that are provided for that purpose. Unexpended funds shall revert to the General Fund at the end of the current fiscal year.

(5)   Department of Education

(a)   EAA Summer School &

Comprehensive Remediation Program                 4,000,000

(b)   Institute for Teachers of Government

Furman University                                   103,099

(6)   Commission on Higher Education

(a)   GEAR-UP                                   1,000,000

(b)   College and University Technology Initiative       3,978,000

(7)   Higher Education Tuition Grants

Tuition Grants                                   1,975,000

(8)   Educational Television Commission

Partnership for Distance Learning                     317,000

(9)   Department of Archives and History

Mary McLeod Bethune Historic Home                 250,000

(10)   Election Commission

2000 General Election                           2,250,000

(11)   Clemson University-PSA

Youth Development                               600,000

(12)   Department of Parks, Recreation & Tourism

(a)   Alternative Funding                           2,000,000

(b)   Saluda Resource Center                           48,000

(c)   Newberry Old Fire Center                       30,000

(13)   Department of Commerce

(a)   S.C. Community Economic

Development Act                             1,300,000

(b)   Coordinating Council for

Economic Development                       10,000,000

(14)   Workers' Compensation Commission

Self-Insurance Program Audit Function               15,000

(15)   Department of Labor, Licensing and Regulation


Printed Page 3256 . . . . . Thursday, May 11, 2000

Elevator & Amusement Ride Regulation               80,000

(16)   State Ethics Commission

Computer System                                 40,000

(17)   The Senate

(a)   NCSL & Council of State

Government Dues                                 5,955

(b)   Council for Conflict Resolution                     350,000

(18)   Budget and Control Board, Division

of Operations   Leadership SC                       75,000

(19)   Department of Health and Human Services

(a)   Bishopville - Lee County Child Care Center           50,000

(b)   Restoration of Reimbursement to Pharmacies         800,000

(20)   South Carolina State - PSA                         480,000

Arts Commission

Anderson Arts Council                             100,000 /

Amend the bill further, as and if amended, Part IV, Section 2, page 732, lines 23-25, item 3b.1, by STRIKING: / any school district not currently declared impaired but was in that status some time after 1985 if the district has eighty percent or more of its students eligible for free and reduced lunch program and any attendance zones composed of former districts which were declared impaired.

/ And by INSERTING: / the attendance area which was a school district formerly declared impaired that has been incorporated into a consolidated school district. /

Amend the bill further, as and if amended, Part IV, Section 2, page 734, line 2, opposite (d) Hospital Based Health Clinics by STRIKING / 1,568,000 / and INSERTING / 368,000 /

Amend the bill further, as and if amended, Part IV, Section 2, page 734, by striking lines 3 through 6 and inserting the following:

/   ( )(Rural Health Clinics) Of the monies appropriated for Provider Based Rural Health Clinics, funds to the extent available, shall be used to reimburse hospitals who owned or operated rural health clinics between August 20, 1993 and December 31, 1997 at 100% of Medicare reasonable costs as required by federal law for the operation of these rural health clinics as defined by the department, and any remaining funds shall be used for cost report adjustment.

(e)   Hospital Base Increase                         4,608,880

(f)   Palmetto Senior Care                           1,700,000

Amend the bill further, as and if amended, Part IV, Section 2, page 737, line 34, by adding an appropriately numbered item to read:

/   ( )   Chester County Fire Training Center               125,000 /


Printed Page 3257 . . . . . Thursday, May 11, 2000

Amend the bill further, as and if amended, Part IV, Section 2, page 737, line 34, by adding an appropriately numbered item to read:

/   ( )   Department of Parks, Recreation and Tourism

Andrew Jackson State Park                         25,000 /

Renumber sections to conform.

Amend sections, totals and title to conform.

The amendment was adopted.

Part II Recapitulation

Not having received the required two-thirds vote, the following Sections of Part II of the General Appropriation Bill were deleted:
Section 13
Section 19
Section 65
Section 70

The following section was ruled out of order:
Section 53

The following sections were deleted by the adoption of an amendment:
Section 55
Section 61
Section 62

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

Statement by Senator FAIR

I opposed this budget because the South Carolina Senate continues to demonstrate a bias against the traditional family in South Carolina. Amendments to empower the family were routinely defeated. For example, the House passed a proviso in the budget prohibiting the dispensing of condoms to children when their parents said "no." The Senate rejected that amendment saying, in effect, that the State must make that decision for parents. This is unacceptable and the Senators who approve of this mindset should be reminded in the strongest possible fashion that they do not represent the thinking of South Carolina moms and dads.


Printed Page 3258 . . . . . Thursday, May 11, 2000

MOTION ADOPTED

On motion of Senator MARTIN, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. William D. "Bill" Garrison of Liberty, S.C.

ADJOURNMENT

At 6:24 A.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 6:25 A.M.

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