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


Printed Page 3614 . . . . . Tuesday, June 22, 1999

TUESDAY, JUNE 22, 1999
(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, we read St. Paul's words to the Corinthians, II Cor. 4:8, in the Revised Standard Version:

"We are afflicted in every way, but not crushed; perplexed, but not driven to despair; persecuted, but not forsaken; struck down, but not destroyed; ..."

Phillips, in "Modern English," renders the same words in this fashion:

"We are handicapped on all sides, but we are never frustrated;

We are puzzled, but never to despair ....

We may be knocked down, but we are never knocked out!"
Take your choice. Let us pray.

Our Father, we thank You for the life of Senator Waldrep's mother, Sarah Evelyn. We pray for the gifts of Your Spirit upon Bob and his faithful family and the joyful word of the Resurrection to Eternal Life.

Dear Lord, we come again to try to do our duty ... for the best interests of our people.

We pray again for wisdom and strength beyond our own!

Whether we win or lose in our parliamentary battles, help us never to lose sight of the fact that, above all, we seek to be good stewards of our Lord and faithful servants of our people.

If we cannot wear the diadem of victory, may we wear well the scars of fidelity, remembering Him who said,

"Be of good cheer,

I have overcome the world."
Amen.

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

CO-SPONSORS ADDED

S. 865 (Word version) -- Senator Matthews: A CONCURRENT RESOLUTION EXPRESSING THE SINCERE DESIRE OF THE GENERAL


Printed Page 3615 . . . . . Tuesday, June 22, 1999

ASSEMBLY TO RECOGNIZE AND CONGRATULATE THE CONGREGATION OF THE BROOKLAND BAPTIST CHURCH UPON THE OCCASION OF THE DEDICATION OF THE NEW EDIFICE IN WEST COLUMBIA, SOUTH CAROLINA, WHICH HAS AND WILL CONTINUE TO BE A SPECIAL BLESSING TO THE ENTIRE COMMUNITY.

On motion of Senator MATTHEWS, with unanimous consent, the name of Senator SETZLER was added as the principal sponsor of the Concurrent Resolution and the name of Senator JACKSON was added as a co-sponsor.

MESSAGE FROM THE GOVERNOR

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

Statewide Appointments

Initial Appointment, South Carolina Commission on Minority Affairs with term to commence June 30, 1999, and to expire June 30, 2003:

2nd Congressional District:

Jane Tudor Brewer, Route 1, Box 326, Allendale, S.C. 29810 VICE James Furtick, Jr.

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Commission on Minority Affairs, with term to commence June 30, 1997, and to expire June 30, 2001:

At-Large:

Stephen Levelle Gilchrist, 109 McNeil Avenue, Greenwood, S.C. 29649 VICE Frank Mauldin

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Commission on Minority Affairs, with term to commence June 30, 1997, and to expire at the pleasure of the Governor:

Chairman:

Stephen Levelle Gilchrist, 109 McNeil Avenue, Greenwood, S.C. 29649 VICE Frank Mauldin


Printed Page 3616 . . . . . Tuesday, June 22, 1999

Referred to the Committee on Judiciary.

Initial Appointment, Board of Directors of the DARE Fund, with term to expire June 30, 2001:

Sheriff:

Joseph H. Zorn, III, Post Office Box 384, Barnwell, S.C. 29812

Referred to the Committee on Judiciary.

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

Consumer Financial Institutions:

Naomi Hall Dreher, 3614 Oscar Street, Columbia, S.C. 29204 VICE Kenneth A. Boiter

Referred to the Committee on Banking and Insurance.

Initial Appointment, South Carolina Board of Probation, Parole & Pardon Services, with term to commence March 15, 1999, and to expire March 15, 2005:

2nd Congressional District:

June Strother Shissias, 448 Springlake Road, Columbia, S.C. 29206 VICE Rebecca L. Adams

Referred to the Committee on Corrections and Penology.

Initial Appointment, South Carolina Board of Probation, Parole & Pardon Services, with term to commence March 15, 1994, and to expire March 15, 2000:

At-Large:

Marlene T. McClain, 209 Arden Chase, Anderson, S.C. 29621 VICE Raymond J. Rossi (deceased)

Referred to the Committee on Corrections and Penology.

Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 1996, and to expire July 1, 2000:


Printed Page 3617 . . . . . Tuesday, June 22, 1999

4th Congressional District:

Joab M. Lesesne, Wofford College, 429 North Church Street, Spartanburg, S.C. 29303 VICE George G. Graham

Referred to the Committee on Fish, Game and Forestry.

REGULATION WITHDRAWN

The following was received:

Document No. 2372
Agency: Department of Health and Environmental Control
SUBJECT: Procedures for Contested Cases
Received by Lieutenant Governor January 20, 1999
Referred to Medical Affairs Committee
Legislative Review Expiration
February 19, 1999 House Judiciary Committee Requested Withdrawal               120 Day Period Tolled
March 24, 1999 Withdrawn and Resubmitted
May 26, 1999 House Judiciary Committee Requested Withdrawal
May 26, 1999 Withdrawn and Resubmitted
June 3, 1999 House Judiciary Committee Requested Withdrawal
June 22, 1999 Withdrawn

Leave of Absence

At 12:05 P.M., Senator LEATHERMAN requested a leave of absence from 1:00 - 5:00 P.M.

Leave of Absence

On motion of Senator WALDREP, at 3:55 P.M., Senator FAIR was granted a leave of absence beginning at 4:10 P.M., for the balance of the week.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 900 (Word version) -- Senator Saleeby: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, JANUARY 26, 2000, AS THE TIME FOR ELECTING SUCCESSORS TO THE THREE COMMISSIONERS FOR THE EMPLOYMENT SECURITY COMMISSION, WHOSE CURRENT TERMS EXPIRE JUNE 30, 2000.


Printed Page 3618 . . . . . Tuesday, June 22, 1999

The Concurrent Resolution was introduced and referred to the Committee on Banking and Insurance.

S. 900 -- Recalled and Adopted

On motion of Senator SALEEBY, with unanimous consent, S. 900 was recalled from the Committee on Banking and Insurance.

The Concurrent Resolution was taken up for immediate consideration. The question being the adoption of the Concurrent Resolution.

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

S. 901 (Word version) -- Senator Land: A SENATE RESOLUTION HONORING THE MEMORY OF THE HONORABLE CALVIN JOYNER, SR., ONE OF LEE COUNTY'S ABLEST AND MOST DISTINGUISHED LEADERS AND OFFERING THE SINCERE CONDOLENCES OF THE MEMBERS OF THE SOUTH CAROLINA SENATE TO HIS WONDERFUL FAMILY AND COUNTLESS FRIENDS.

The Senate Resolution was adopted.

S. 902 (Word version) -- Senators Russell, Courtney and Reese: A CONCURRENT RESOLUTION TO RECOGNIZE WILSON CASEY OF SPARTANBURG, HOLDER OF THE GUINNESS WORLD RECORDS FOR THE LONGEST RADIO BROADCAST BY AN INDIVIDUAL AND THE LONGEST TRIVIA BROADCAST, AND TO CONGRATULATE HIM AFTER FINISHING A MARATHON THIRTY-HOUR BROADCAST AT SPARTANBURG RADIO STATION WKDY-AM AND BECOMING THE ONLY SOUTH CAROLINIAN TO APPEAR IN THE GUINNESS BOOK OF RECORDS.

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

S. 903 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 16-11-700, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE 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


Printed Page 3619 . . . . . Tuesday, June 22, 1999

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.

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

S. 904 (Word version) -- Senator Courson: A CONCURRENT RESOLUTION TO CONGRATULATE BOYD MANAGEMENT ON ITS DYNAMIC EXPANSION SINCE 1985 AND ON ITS PLANS FOR NEW HEADQUARTERS IN NORTHEAST COLUMBIA.

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

S. 905 (Word version) -- Senator Setzler: A SENATE RESOLUTION CONGRATULATING AND HONORING ALFRED LEWIS MCCARTY OF WEST COLUMBIA FOR HIS EXEMPLARY SERVICE TO THE LAW ENFORCEMENT PROFESSION, AND WISHING HIM SUCCESS AND HAPPINESS FOLLOWING HIS RETIREMENT.

The Senate Resolution was adopted.

S. 906 (Word version) -- Senator Moore: A BILL TO AMEND CHAPTER 57, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENVIRONMENTAL AUDIT PRIVILEGE AND VOLUNTARY DISCLOSURE, SO AS TO FURTHER DEFINE MATERIALS AND DOCUMENTS OF AN ENVIRONMENTAL AUDIT REPORT WHICH ARE PRIVILEGED IN A CIVIL OR ADMINISTRATIVE PENALTY ACTION, TO PROVIDE THAT THIS PRIVILEGE DOES NOT APPLY TO CRIMINAL INVESTIGATIVE PROCEEDINGS, AND TO FURTHER DEFINE THE PROCESS BY WHICH THIS PRIVILEGE MAY BE ASSERTED.

Read the first time and referred to the Committee on Medical Affairs.

H. 4137 (Word version) -- Reps. Edge and H. Brown: A CONCURRENT RESOLUTION MEMORIALIZING THE UNITED STATES CONGRESS TO REVISE PROVISIONS OF THE BALANCED BUDGET ACT OF 1997 RELATED TO AN INTERIM PAYMENT


Printed Page 3620 . . . . . Tuesday, June 22, 1999

SYSTEM AND TO PROVIDE FOR THE DEVELOPMENT OF CERTAIN AMENDMENTS OR CHANGES IN RULES FOR MEDICARE HOME HEALTH CARE BENEFICIARIES TO IMPROVE THEIR SITUATION.

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

H. 4194 (Word version) -- Reps. Mack, Altman, Breeland, Campsen, Inabinett, Whatley and Whipper: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE SOUTHBOUND CONNECTOR OF THE BRIDGE TO BE BUILT TO REPLACE THE JOHN P. GRACE AND THE SILAS N. PEARMAN BRIDGES IN CHARLESTON COUNTY THE "LUCILLE S. WHIPPER CONNECTOR" AND TO ERECT SIGNS OR MARKERS CONTAINING THIS DESIGNATION.

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4254 (Word version) -- Rep. J. Smith: A CONCURRENT RESOLUTION TO RECOGNIZE AND CONGRATULATE CAPTAIN AND MRS. PAUL B. SMITH FOR THE WONDROUS AND JOYOUS EVENT OF CELEBRATING THEIR FIFTY-SEVENTH WEDDING ANNIVERSARY ON JULY 5, 1999.

The Concurrent Resolution was adopted, returned to the House.

H. 4255 (Word version) -- Rep. Townsend: A CONCURRENT RESOLUTION TO EXTEND THE DEEPEST SYMPATHY OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO THE FAMILY AND FRIENDS OF FRANCES B. MARSHALL OF BELTON, THE SECOND WOMAN TO EVER SERVE ON THE BELTON CITY COUNCIL.

The Concurrent Resolution was adopted, returned to the House.

H. 4256 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Bree land, 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, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, M. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach,


Printed Page 3621 . . . . . Tuesday, June 22, 1999

Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, McCraw, McGee, McKay, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, J.M. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Seithel, Sharpe, Sheheen, Simrill, D. Smith, F. Smith, J. Smith, R. Smith, Stille, Stuart, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkes, Wilkins, Witherspoon, Woodrum and Young-Brickell: A CONCURRENT RESOLUTION WELCOMING DR. IRA V. HILLIARD, PASTOR OF NEW LIGHT CHRISTIAN CENTER CHURCH IN HOUSTON, TEXAS, AND HIS WIFE, DR. BRIDGET HILLIARD, TO SOUTH CAROLINA AND WISHING BOTH OF THEM WELL AS THEY CONDUCT A STATEWIDE CONFERENCE FOR PASTORS AND THEIR CONGREGATIONS HOSTED BY THE FULL GOSPEL WORD AND WORSHIP CENTER IN THE CITY OF COLUMBIA FROM AUGUST 18-20, 1999.

The Concurrent Resolution was adopted, returned to the House.

H. 4257 (Word version) -- Reps. Clyburn and Govan: A CONCURRENT RESOLUTION CONGRATULATING THE SOUTH CAROLINA UPWARD BOUND PROGRAM ON ITS MANY SUCCESSES AND DESIGNATING JULY 16, 1999, AS "SOUTH CAROLINA UPWARD BOUND DAY" IN RECOGNITION OF THE EFFORTS OF THE SOUTH CAROLINA UPWARD BOUND BRANCH OF TRIO PROGRAMS TO PREPARE ELIGIBLE HIGH SCHOOL STUDENTS TO SUCCESSFULLY PURSUE AN EDUCATION BEYOND HIGH SCHOOL.

The Concurrent Resolution was adopted, returned to the House.

H. 4258 (Word version) -- Rep. W. McLeod: A CONCURRENT RESOLUTION CONGRATULATING, HONORING, AND RECOGNIZING E. MCLEOD SINGLETARY, ESQUIRE, ONE OF SOUTH CAROLINA'S MOST DISTINGUISHED ATTORNEYS, UPON HIS ARRIVING AT THE AGE OF FOUR SCORE YEARS, AND FOR HIS OUTSTANDING ACHIEVEMENTS AND CONTRIBUTIONS AND HIS DEDICATED AND DISTINGUISHED LEADERSHIP SERVICE TO THE CITY OF COLUMBIA, THE COUNTY OF RICHLAND, THE STATE OF SOUTH CAROLINA, AND THE UNITED STATES OF AMERICA.

The Concurrent Resolution was adopted, returned to the House.


Printed Page 3622 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
S. 250 (Word version) -- Senators Leatherman and Hayes: A BILL TO AMEND SECTION 2-17-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOBBYIST'S REPORTING OF LOBBYING ACTIVITIES, SO AS TO CHANGE THE TIME FOR FILING REPORTS; TO AMEND SECTION 2-17-35, AS AMENDED, RELATING TO LOBBYIST'S PRINCIPAL'S REPORTING OF LOBBYING EXPENDITURES, SO AS TO CHANGE THE TIME FOR FILING REPORTS; TO AMEND SECTION 2-17-40, AS AMENDED, RELATING TO THE STATE AGENCY REPORT OF LOBBYING ACTIVITIES, SO AS TO CHANGE THE TIME FOR FILING THE REPORTS; TO AMEND SECTION 2-17-90, AS AMENDED, RELATING TO ACTS PROHIBITED OF LOBBYISTS' PRINCIPALS, ACTS PROHIBITED OF PUBLIC OFFICIALS AND EMPLOYEES, EXCEPTIONS, AND DISCLOSURE REQUIREMENTS, SO AS TO EXCLUDE CABINET OFFICERS; TO AMEND SECTION 8-13-320, AS AMENDED, RELATING TO THE DUTIES AND POWERS OF THE STATE ETHICS COMMISSION, SO AS TO REQUIRE THE APPROVAL OF THE STATE ETHICS COMMISSION, IN ADDITION TO THE RESPONDENT, TO WAIVE THE CONFIDENTIALITY OF THE EXISTENCE OF THE COMPLAINT AFTER IT HAS BEEN DISMISSED WHEN A COMPLAINT DOES NOT ALLEGE FACTS SUFFICIENT TO CONSTITUTE A VIOLATION; TO AMEND SECTION 8-13-1310, AS AMENDED, RELATING TO THE RECIPIENTS OF CERTAIN CAMPAIGN REPORTS AND COPIES OF THEM AND THE STATE ETHICS COMMISSION REVIEW, SO AS TO ELIMINATE THE REQUIREMENT TO SEND CAMPAIGN REPORTS TO THE STATE ELECTION COMMISSION; TO AMEND SECTION 8-13-1366, RELATING TO THE PUBLIC AVAILABILITY OF CERTIFIED CAMPAIGN REPORTS, SO AS TO ELIMINATE THE STATE ELECTION COMMISSION AS A LOCATION OF THESE REPORTS; AND TO AMEND SECTION 8-13-1372, RELATING TO TECHNICAL VIOLATIONS OF RULES ON CAMPAIGN REPORTS, SO AS TO SUBSTITUTE THE STATE ETHICS COMMISSION FOR THE STATE ELECTION COMMISSION AS THE AGENCY RESPONSIBLE FOR


Printed Page 3623 . . . . . Tuesday, June 22, 1999

DETERMINING ERRORS OR OMISSIONS ON CAMPAIGN REPORTS.
asks for a Committee of Conference, and has appointed Reps. D. Smith, Fleming and Simrill of the committee on the part of the House.

Very respectfully,
Speaker of the House

S. 250--CONFERENCE COMMITTEE APPOINTED

S. 250 (Word version) -- Senators Leatherman and Hayes: A BILL TO AMEND SECTION 2-17-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOBBYIST'S REPORTING OF LOBBYING ACTIVITIES, SO AS TO CHANGE THE TIME FOR FILING REPORTS; TO AMEND SECTION 2-17-35, AS AMENDED, RELATING TO LOBBYIST'S PRINCIPAL'S REPORTING OF LOBBYING EXPENDITURES, SO AS TO CHANGE THE TIME FOR FILING REPORTS; TO AMEND SECTION 2-17-40, AS AMENDED, RELATING TO THE STATE AGENCY REPORT OF LOBBYING ACTIVITIES, SO AS TO CHANGE THE TIME FOR FILING THE REPORTS; TO AMEND SECTION 2-17-90, AS AMENDED, RELATING TO ACTS PROHIBITED OF LOBBYISTS' PRINCIPALS, ACTS PROHIBITED OF PUBLIC OFFICIALS AND EMPLOYEES, EXCEPTIONS, AND DISCLOSURE REQUIREMENTS, SO AS TO EXCLUDE CABINET OFFICERS; TO AMEND SECTION 8-13-320, AS AMENDED, RELATING TO THE DUTIES AND POWERS OF THE STATE ETHICS COMMISSION, SO AS TO REQUIRE THE APPROVAL OF THE STATE ETHICS COMMISSION, IN ADDITION TO THE RESPONDENT, TO WAIVE THE CONFIDENTIALITY OF THE EXISTENCE OF THE COMPLAINT AFTER IT HAS BEEN DISMISSED WHEN A COMPLAINT DOES NOT ALLEGE FACTS SUFFICIENT TO CONSTITUTE A VIOLATION; TO AMEND SECTION 8-13-1310, AS AMENDED, RELATING TO THE RECIPIENTS OF CERTAIN CAMPAIGN REPORTS AND COPIES OF THEM AND THE STATE ETHICS COMMISSION REVIEW, SO AS TO ELIMINATE THE REQUIREMENT TO SEND CAMPAIGN REPORTS TO THE STATE ELECTION COMMISSION; TO AMEND SECTION 8-13-1366, RELATING TO THE PUBLIC AVAILABILITY OF CERTIFIED CAMPAIGN REPORTS, SO AS TO ELIMINATE THE STATE ELECTION COMMISSION AS A LOCATION OF THESE REPORTS; AND TO AMEND SECTION


Printed Page 3624 . . . . . Tuesday, June 22, 1999

8-13-1372, RELATING TO TECHNICAL VIOLATIONS OF RULES ON CAMPAIGN REPORTS, SO AS TO SUBSTITUTE THE STATE ETHICS COMMISSION FOR THE STATE ELECTION COMMISSION AS THE AGENCY RESPONSIBLE FOR DETERMINING ERRORS OR OMISSIONS ON CAMPAIGN REPORTS.

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

S. 591--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.

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

Senator McCONNELL spoke on the report.

S. 591--Free Conference Powers Granted
Free Conference Committee Appointed

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

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

On motion of Senator SETZLER, the Report of the Committee of Free Conference to S. 591 was adopted as follows:


Printed Page 3625 . . . . . Tuesday, June 22, 1999

S. 591 -- FREE CONFERENCE REPORT
The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version)

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
Be it enacted by the General Assembly of the State of South Carolina:

SECTION   1.   Chapter 1, Title 48 of the 1976 Code is amended by adding:

"Section 48-1-83.   (A)   The department shall not allow a depression in dissolved oxygen concentration greater than 0.10 mg/l in a naturally low dissolved oxygen waterbody unless the requirements of this section are all satisfied by demonstrating that resident aquatic species shall not be adversely affected. The provisions of this section apply in addition to any standards for a dissolved oxygen depression in a naturally low dissolved oxygen waterbody promulgated by the department by regulation.

(B)   A party seeking a site-specific effluent limit related to dissolved oxygen pursuant to this section must notify the department in writing of its intent to obtain the depression. Upon receipt of the written notice of this intent, the department shall within thirty days publish a public notice indicating the party seeking the dissolved oxygen depression and the specific site for which the dissolved oxygen depression is sought in addition to the department's usual public notice procedures. The notice shall be in the form of an advertisement in a newspaper of statewide circulation and in the local newspaper with the greatest general circulation in the affected area. If within thirty days of the publication of the public notice the department receives a request to hold a public hearing from at least twenty citizens or residents of the county or counties affected, the department shall conduct such a hearing. The


Printed Page 3626 . . . . . Tuesday, June 22, 1999

hearing must be conducted at an appropriate location near the specific site for which the dissolved oxygen depression is sought and must be held within ninety days of the publication of the initial public notice by the department.

(C)   The department, in consultation with the Department of Natural Resources and the Environmental Protection Agency, shall provide a general methodology to be used for consideration of a site-specific effluent limit related to dissolved oxygen.

(D)   The party seeking a site-specific effluent limit related to dissolved oxygen must conduct a study:

(1)   to determine natural dissolved oxygen conditions at the specific site for which the depression is sought. The study must use an appropriate reference site. The reference site is not restricted to the State but must have similar geography, environmental setting, and climatic conditions. However, if an appropriate reference site cannot be located, the party may use a site-specific dynamic water quality model or, if available, a site-specific multidimensional dynamic water quality model.

(2)   to assess the ability of aquatic resources at the specific
site for which the dissolved oxygen depression is sought to tolerate the proposed dissolved oxygen depression.

(E)   The department shall provide the following agencies sixty days in which to review and provide comments on the design of the scientific study required in subsection (D):

(1)   the United States Fish & Wildlife Service of the United States Department of the Interior;

(2)   the United States Geological Survey of the United States Department of the Interior;
(3) the National Ocean Service of the United States
Department of Commerce and the National Marine Fisheries Service of the United States Department of Commerce; and
(4) the Department of Natural Resources. (5)

The department and the Department of Natural Resources shall select and convene a science peer review committee to review the design of the study as required by subsection (D). The department and the Environmental Protection Agency must concur on the final design before a study is initiated. Justification of any objection to the study design must be based solely on scientific considerations. Objections to the study design must be provided in writing by the department to the party seeking a site-specific effluent limit related to dissolved oxygen.


Printed Page 3627 . . . . . Tuesday, June 22, 1999

(F)   The department shall provide the following agencies sixty days to review and comment on the results of the studies required in subsection (D):

(1)   the United States Fish and Wildlife Service of the United States Department of the Interior;

(2)   the United States Geological Survey of the United States Department of the Interior; and

(3)   the National Ocean Service of the United States Department of Commerce and the National Marine Fisheries Service of the United States Department of Commerce.

In order for a site-specific effluent limit related to dissolved oxygen to be implemented pursuant to this section, the department, the Department of Natural Resources, and the Environmental Protection Agency must concur that the results of the study required in subsection (D) justify its implementation. In reaching a decision on the study results, the department and the Department of Natural Resources must base their decision upon the entire record, taking into account whatever in the record detracts from the weight of the decision, and must be supported by evidence that a reasonable mind might accept as adequate to support the decision. Objections to the acceptance of the results of the study must be provided in writing by the department to the party seeking a site-specific effluent limit related to dissolved oxygen."

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

----XX----

Amend title to read:
TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES AND PROCEDURES FOR OBTAINING A SITE-SPECIFIC EFFLUENT LIMIT RELATED TO DISSOLVED OXYGEN.

/s/ Glenn F. McConnell            /s/ G. Ralph Davenport
/s/ Arthur Ravenel, Jr.           /s/ Dwight A. Loftis
/s/ C. Bradley Hutto              /s/ William Knight Bowers
On Part of the Senate.             On Part of the House.

, and a message was sent to the House accordingly.


Printed Page 3628 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and appointed Reps. Davenport, Loftis and Bowers of the Committee of Free Conference on the part of the House on:
S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.
Very respectfully,
Speaker of the House

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Free Conference on:
S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:


Printed Page 3629 . . . . . Tuesday, June 22, 1999

S. 591 (Word version) -- Senators McConnell, Ravenel, Hutto, Leventis, Cork and Passailaigue: A BILL TO AMEND CHAPTER 1, TITLE 48 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE POLLUTION CONTROL ACT, BY ADDING SECTION 48-1-83 SO AS TO ESTABLISH STATUTORY REQUIREMENTS FOR DISSOLVED OXYGEN DEPRESSIONS IN NATURALLY LOW DISSOLVED OXYGEN WATERBODIES.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
S. 887 (Word version) -- Senator Moore: A CONCURRENT RESOLUTION TO PROVIDE THAT PURSUANT TO ARTICLE III, SECTION 21 OF THE CONSTITUTION OF THIS STATE, AND SECTION 2-1-180 OF THE 1976 CODE, WHEN THE RESPECTIVE HOUSES OF THE GENERAL ASSEMBLY ADJOURN ON THURSDAY, JUNE 3, 1999, NOT LATER THAN 5:00 P.M., EACH HOUSE SHALL STAND ADJOURNED TO MEET AT 11:00 A.M. ON TUESDAY, JUNE 22, 1999, IN STATEWIDE SESSION, AND TO CONTINUE IN STATEWIDE SESSION IF NECESSARY UNTIL FRIDAY, JUNE 25, 1999, NOT LATER THAN 5:00 P.M., FOR THE CONSIDERATION OF SPECIFIED MATTERS; AND TO PROVIDE THAT WHEN EACH HOUSE ADJOURNS ON FRIDAY, JUNE 25, 1999, NOT LATER THAN 5:00 P.M., THE GENERAL ASSEMBLY SHALL STAND ADJOURNED SINE DIE.
Very respectfully,
Speaker of the House

Received as information.


Printed Page 3630 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Rep. Quinn in lieu of Rep. Harrison to a Committee of Conference on the following Bill:

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3082 (Word version) -- Reps. Townsend, Walker, Delleney, J. Brown, Stuart, Harrison, Allison, J. Hines, Edge, Robinson, Rodgers, Cato, Wilkins, Sandifer, Moody-Lawrence, Lourie, J. Smith, F. Smith, Rutherford, Maddox, Allen, Ott, Harvin, Kennedy, Jennings, Bales, Hayes, W. McLeod, Simrill, Knotts and Webb: A BILL TO PROVIDE THAT FOR FISCAL YEAR 1999-2000, FOR PURPOSES OF A SCHOOL DISTRICT USING FUNDS AVAILABLE PURSUANT TO CHAPTER 144 OF TITLE 59 OF THE 1976 CODE, THE TERM "SCHOOL FACILITIES" INCLUDES PORTABLE CLASSROOMS.


Printed Page 3631 . . . . . Tuesday, June 22, 1999

Very respectfully,
Speaker of the House

Received as information.

RECESS

At 12:20 P.M., on motion of Senator SETZLER, the Senate receded from business until 12:30.M.

At 12:34 P.M., the Senate resumed.

H. 3357--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

H. 3357 (Word version) -- Reps. Fleming, Wilder, Klauber and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-25-115 SO AS TO AUTHORIZE A JOINT MUNICIPAL WATER SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE CONSTRUCTION NOTES; BY ADDING SECTION 6-25-129 SO AS TO EXEMPT FROM STATE TAXES THE INCOME OF A JOINT MUNICIPAL WATER SYSTEM; BY ADDING SECTION 6-25-131 SO AS TO PROVIDE THAT NO INCOME, PROFITS, OR ASSETS OF A JOINT SYSTEM MAY INURE TO THE BENEFIT OF ANY INDIVIDUAL OR PRIVATE ENTITY; TO AMEND SECTION 6-25-20, AS AMENDED, RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO DEFINE "CONSTRUCTION NOTE OR NOTES", "FINANCING AGREEMENT", "FINANCING POOL", "GOVERNMENT", AND "INTERIM FINANCING"; TO AMEND SECTION 6-25-30, RELATING TO THE CREATION OF A JOINT SYSTEM, SO AS TO AUTHORIZE THE GOVERNING BODIES OF MUNICIPALITIES TO CREATE A JOINT SYSTEM FOR THE PURPOSE OF CREATING A FINANCING POOL, AND TO LIMIT THE PURPOSES FOR WHICH A JOINT SYSTEM MAY BE CREATED; TO AMEND SECTION 6-25-40, RELATING TO THE NOTICE OF THE INSTRUMENT CREATING A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM FROM THE NOTICE PROVISIONS IF IT IS FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-50, RELATING TO THE APPOINTMENT OF A MUNICIPAL REPRESENTATIVE TO THE JOINT SYSTEM, SO AS TO ADD TO THE


Printed Page 3632 . . . . . Tuesday, June 22, 1999

REQUIREMENTS OF THE APPLICATION FILED WITH THE SECRETARY OF STATE THE PURPOSE FOR THE CREATION OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-60, AS AMENDED, RELATING TO THE MANAGEMENT AND CONTROL OF THE JOINT SYSTEM, SO AS TO CLARIFY THAT EACH VOTING MEMBER OF A JOINT SYSTEM SHALL APPOINT A REPRESENTATIVE WHO MUST BE A COMMISSIONER OF THE JOINT SYSTEM AND TO AUTHORIZE THE COMMISSIONERS TO MEET BIENNIALLY, IF ITS BYLAWS PROVIDE FOR IT; TO AMEND SECTION 6-25-70, RELATING TO CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL FROM FILING A CHANGE IN MEMBERSHIP WITH THE SECRETARY OF STATE; TO AMEND SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A JOINT SYSTEM, SO AS TO PROVIDE THAT INCOME OWNED BY THE JOINT SYSTEM AT THE TIME OF DISSOLUTION MUST BE DISBURSED TO THE VOTING MEMBERS OF THE MEMBERS OF THE JOINT SYSTEM ACCORDING TO ITS BYLAWS; TO AMEND SECTION 6-25-100, AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO AUTHORIZE THE SYSTEMS TO LOAN THE PROCEEDS OF ANY BORROWING TO ANY MEMBER OF THE JOINT SYSTEM WITH PAYMENT FOR BONDS OR NOTES AUTHORIZED TO BE PAID FROM LOAN REPAYMENT OF MEMBERS, AND TO PROVIDE THAT CERTAIN POWERS ARE NOT GRANTED WHEN A JOINT SYSTEM IS ORGANIZED SOLELY FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-110, AS AMENDED, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO AUTHORIZE A JOINT SYSTEM FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE NOTES IN ANTICIPATION OF THE ISSUANCE OF BONDS BY ITS MEMBERS TO THE GOVERNMENT; TO AMEND SECTION 6-25-120, AS AMENDED, RELATING TO PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO INCLUDE CONSTRUCTION NOTES WITHIN THE LIST OF OBLIGATIONS WHICH MAY NOT BE PLEDGED AS FULL FAITH, CREDIT, OR TAXING POWER OF ANY MEMBER OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-126, RELATING TO THE

Printed Page 3633 . . . . . Tuesday, June 22, 1999

AUTHORIZATION OF A JOINT SYSTEM TO TEMPORARILY INVEST FUNDS PENDING DISBURSEMENTS IN SECURITIES, SO AS TO INCLUDE CONSTRUCTION NOTES IN ADDITION TO BONDS WHICH MAY BE AUTHORIZED IN THE RESOLUTION; TO AMEND SECTION 6-25-127, RELATING TO THE ENFORCEMENT OF RIGHTS OF BONDHOLDERS, SO AS TO INCLUDE HOLDERS OF CONSTRUCTION NOTES AS HAVING THOSE RIGHTS; TO AMEND SECTION 6-25-145, RELATING TO THE PROHIBITION OF CERTAIN FIDUCIARIES TO INVEST MONIES IN THEIR HANDS IN BONDS ISSUED UNDER THE PROVISIONS OF CHAPTER 25 OF TITLE 6, SO AS TO ADD A REFERENCE TO CONSTRUCTION NOTES; TO AMEND SECTION 6-25-155, RELATING TO BONDS AS INVESTMENT SECURITIES FOR PURPOSES OF CHAPTER 8 OF TITLE 36, SO AS TO ADD CONSTRUCTION NOTES TO THOSE EVIDENCES OF INDEBTEDNESS CONSIDERED INVESTMENT SECURITIES; AND TO AMEND SECTION 6-25-160, RELATING TO THE TAX-EXEMPT STATUS OF EVIDENCES OF INDEBTEDNESS ISSUED BY A JOINT SYSTEM, SO AS TO INCLUDE CONSTRUCTION NOTES, AND ADD A REFERENCE TO SECTION 12-2-50.

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

Senator PEELER spoke on the report.

H. 3357--Free Conference Powers Granted
Free Conference Committee Appointed

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

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

On motion of Senator PEELER, the Report of the Committee of Free Conference to H. 3357 was adopted as follows:


Printed Page 3634 . . . . . Tuesday, June 22, 1999

H. 3357 -- FREE CONFERENCE REPORT
The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:
H.3357 (Word version) -- Reps. Fleming, Wilder, Klauber and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-25-115 SO AS TO AUTHORIZE A JOINT MUNICIPAL WATER SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE CONSTRUCTION NOTES; BY ADDING SECTION 6-25-129 SO AS TO EXEMPT FROM STATE TAXES THE INCOME OF A JOINT MUNICIPAL WATER SYSTEM; BY ADDING SECTION 6-25-131 SO AS TO PROVIDE THAT NO INCOME, PROFITS, OR ASSETS OF A JOINT SYSTEM MAY INURE TO THE BENEFIT OF ANY INDIVIDUAL OR PRIVATE ENTITY; TO AMEND SECTION 6-25-20, AS AMENDED, RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO DEFINE "CONSTRUCTION NOTE OR NOTES", "FINANCING AGREEMENT", "FINANCING POOL", "GOVERNMENT", AND "INTERIM FINANCING"; TO AMEND SECTION 6-25-30, RELATING TO THE CREATION OF A JOINT SYSTEM, SO AS TO AUTHORIZE THE GOVERNING BODIES OF MUNICIPALITIES TO CREATE A JOINT SYSTEM FOR THE PURPOSE OF CREATING A FINANCING POOL, AND TO LIMIT THE PURPOSES FOR WHICH A JOINT SYSTEM MAY BE CREATED; TO AMEND SECTION 6-25-40, RELATING TO THE NOTICE OF THE INSTRUMENT CREATING A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM FROM THE NOTICE PROVISIONS IF IT IS FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-50, RELATING TO THE APPOINTMENT OF A MUNICIPAL REPRESENTATIVE TO THE JOINT SYSTEM, SO AS TO ADD TO THE REQUIREMENTS OF THE APPLICATION FILED WITH THE SECRETARY OF STATE THE PURPOSE FOR THE CREATION OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-60, AS AMENDED, RELATING TO THE MANAGEMENT AND CONTROL OF THE JOINT SYSTEM, SO AS TO CLARIFY THAT EACH VOTING MEMBER OF A JOINT SYSTEM SHALL APPOINT A REPRESENTATIVE WHO MUST BE A COMMISSIONER OF THE JOINT SYSTEM AND TO AUTHORIZE THE COMMISSIONERS TO MEET BIENNIALLY,


Printed Page 3635 . . . . . Tuesday, June 22, 1999

IF ITS BYLAWS PROVIDE FOR IT; TO AMEND SECTION 6-25-70, RELATING TO CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL FROM FILING A CHANGE IN MEMBERSHIP WITH THE SECRETARY OF STATE; TO AMEND SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A JOINT SYSTEM, SO AS TO PROVIDE THAT INCOME OWNED BY THE JOINT SYSTEM AT THE TIME OF DISSOLUTION MUST BE DISBURSED TO THE VOTING MEMBERS OF THE MEMBERS OF THE JOINT SYSTEM ACCORDING TO ITS BYLAWS; TO AMEND SECTION 6-25-100, AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO AUTHORIZE THE SYSTEMS TO LOAN THE PROCEEDS OF ANY BORROWING TO ANY MEMBER OF THE JOINT SYSTEM WITH PAYMENT FOR BONDS OR NOTES AUTHORIZED TO BE PAID FROM LOAN REPAYMENT OF MEMBERS, AND TO PROVIDE THAT CERTAIN POWERS ARE NOT GRANTED WHEN A JOINT SYSTEM IS ORGANIZED SOLELY FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-110, AS AMENDED, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO AUTHORIZE A JOINT SYSTEM FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE NOTES IN ANTICIPATION OF THE ISSUANCE OF BONDS BY ITS MEMBERS TO THE GOVERNMENT; TO AMEND SECTION 6-25-120, AS AMENDED, RELATING TO PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO INCLUDE CONSTRUCTION NOTES WITHIN THE LIST OF OBLIGATIONS WHICH MAY NOT BE PLEDGED AS FULL FAITH, CREDIT, OR TAXING POWER OF ANY MEMBER OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-126, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO TEMPORARILY INVEST FUNDS PENDING DISBURSEMENTS IN SECURITIES, SO AS TO INCLUDE CONSTRUCTION NOTES IN ADDITION TO BONDS WHICH MAY BE AUTHORIZED IN THE RESOLUTION; TO AMEND SECTION 6-25-127, RELATING TO THE ENFORCEMENT OF RIGHTS OF BONDHOLDERS, SO AS TO INCLUDE HOLDERS

Printed Page 3636 . . . . . Tuesday, June 22, 1999

OF CONSTRUCTION NOTES AS HAVING THOSE RIGHTS; TO AMEND SECTION 6-25-145, RELATING TO THE PROHIBITION OF CERTAIN FIDUCIARIES TO INVEST MONIES IN THEIR HANDS IN BONDS ISSUED UNDER THE PROVISIONS OF CHAPTER 25 OF TITLE 6, SO AS TO ADD A REFERENCE TO CONSTRUCTION NOTES; TO AMEND SECTION 6-25-155, RELATING TO BONDS AS INVESTMENT SECURITIES FOR PURPOSES OF CHAPTER 8 OF TITLE 36, SO AS TO ADD CONSTRUCTION NOTES TO THOSE EVIDENCES OF INDEBTEDNESS CONSIDERED INVESTMENT SECURITIES; AND TO AMEND SECTION 6-25-160, RELATING TO THE TAX-EXEMPT STATUS OF EVIDENCES OF INDEBTEDNESS ISSUED BY A JOINT SYSTEM, SO AS TO INCLUDE CONSTRUCTION NOTES, AND ADD A REFERENCE TO SECTION 12-2-50.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 6/3/99--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting the following:
/   SECTION   1.   The 1976 Code is amended by adding:

"Section 6-25-115.     (A)   A joint system organized for the purpose of creating a financing pool may issue from time to time its construction notes for the purpose of creating a financing pool and providing funds to defray the cost of administration of the financing pool and the costs of issuance of the construction notes. The principal of, premium if any, and the interest on an issue of construction notes must be payable solely from the proceeds of the construction notes, earning on the proceeds, the proceeds of bonds issued to the government by members of the joint system, financing agreements between the joint system and its members, and such funds and accounts of the joint system as provided by the resolution of the commission authorizing the issuance of such issue of construction notes or a trust agreement securing the issue of construction notes. Each issue of construction notes may be sold at public or private sale. The construction notes may be sold at a price, and must bear interest at a rate, as may be determined by the commission of the joint system. The construction notes of each issue must be dated and must mature in amounts and at times not exceeding two years from their respective dates, as may be determined by the commission of the joint system, and


Printed Page 3637 . . . . . Tuesday, June 22, 1999

may be made redeemable before maturity at a price and under terms and conditions as may be fixed by the commission of the joint system prior to the issuance of the construction notes. The commission of the joint system shall determine the form and the manner of execution of the construction notes, including any interest coupons to be attached to them, and shall fix the denomination of the construction notes and the place of payment of principal and interest, which may be at any bank or trust company within or without the State. In case any officer whose signature or a facsimile of whose signature appears on any construction note or coupons ceases to be an officer before the delivery of the construction notes, the signature of the facsimile is nevertheless valid and sufficient for all purposes the same as if he had remained in office until the delivery. The commission of the joint system may also provide for the authentication of the construction notes by a trustee or fiscal agent. The construction notes may be issued in bearer or in fully registered form, or both, as the commission of the joint system may determine.

(B)   The proceeds of the construction notes of each issue may be used solely for the purposes for which the construction notes are issued, and must be disbursed in a manner and under restrictions, if any, as the commission of the joint system may provide in the resolution authorizing the issuance of the construction notes or in any trust agreement securing them. The joint system may also provide for the replacement of any construction notes which have become mutilated or have been destroyed or lost.

(C)   The proceeds of the construction notes must be applied solely to the costs of issuance thereof, the cost of administration of the joint system, to capitalized interest on the notes, and to create a financing pool.

(D)   Monies in a financing pool may be loaned to members of the joint system upon such terms and conditions as are set forth by the resolution of the commission authorizing construction notes issued to provide funds for the financing pool or a trust agreement securing the issue of construction notes, provided, however, that the loan made from the financing pool may be only made upon the delivery by the borrower of such funds of a letter of commitment from the government to provide permanent financing for the capital project to be initially financed by the loan.

(E)   All construction notes must be special obligations of the joint system by which they are issued, and the full faith, credit, and taxing power of neither this State nor any of its political subdivisions may be


Printed Page 3638 . . . . . Tuesday, June 22, 1999

pledged for these notes. All construction notes shall include a legend substantially similar to the following:

THIS NOTE IS A SPECIAL AND LIMITED OBLIGATION OF (NAME OF JOINT SYSTEM), A BODY CORPORATE AND POLITIC OF THE STATE OF SOUTH CAROLINA. THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THIS NOTE IS NOT PAYABLE FROM THE GENERAL FUNDS OF THE (NAME OF JOINT SYSTEM), NOR DOES IT CONSTITUTE A LEGAL OR EQUITABLE PLEDGE, CHARGE, LIEN, OR ENCUMBRANCE UPON ANY OF ITS PROPERTY OR UPON ANY OF ITS INCOME, RECEIPTS, OR REVENUES, EXCEPT THE FUNDS WHICH ARE PLEDGED UNDER THE RESOLUTION AUTHORIZING THE ISSUANCE OF THIS NOTE OR THE TRUST AGREEMENT SECURING THIS NOTE. THIS NOTE DOES NOT CONSTITUTE A DEBT, LIABILITY, OR OTHER OBLIGATION OF THE STATE OF SOUTH CAROLINA, OR ANY POLITICAL SUBDIVISION OF IT. THE (NAME OF JOINT SYSTEM) IS NOT OBLIGATED TO PAY THIS NOTE OR THE INTEREST HEREON EXCEPT FROM THE REVENUES, FUNDS, AND ASSETS PLEDGED THEREFOR, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF SOUTH CAROLINA. THE (NAME OF JOINT SYSTEM) OR ITS MEMBER ENTITIES IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THIS NOTE. NO HOLDER OF THIS NOTE HAS THE RIGHT TO COMPEL THE EXERCISE OF THE TAXING POWER BY THE STATE OR ANY POLITICAL SUBDIVISION OF IT OR THE FORFEITURE OF ANY OF ITS PROPERTY IN CONNECTION WITH ANY DEFAULT.

(F)   Construction notes may be issued under provisions of this chapter without obtaining the consent or approval of the State or any political subdivision or any agency, commission, or instrumentality of them, but such construction notes may not be issued without the prior approval of a majority of the commissioners of the joint system present and voting at a duly called meeting of it. No member is liable for any payments in respect of any construction notes issued by a joint system except with the approval of the governing body of the member, by resolution or ordinance of the governing body of the member.

(G)   In the discretion of the commission of the joint system, any construction notes issued under the provisions of this chapter may be secured by a trust agreement by and between the joint system and a corporate trustee, which may be any trust company or bank having the


Printed Page 3639 . . . . . Tuesday, June 22, 1999

powers of a trust company within or without the State. The trust agreement or the resolution providing for the issuance of the construction notes may contain provisions for protecting and enforcing the rights and remedies of the holders of the construction notes and of the trustees as may be reasonable and proper and not in violation of law, and may restrict the individual right of action by holders of construction notes. The trust agreement or the resolution providing for the issuance of the construction notes may contain covenants including, but not limited to, the following:

(1)   the pledge of the proceeds of the construction notes, earnings on the proceeds, the proceeds of bonds issued to the government by members of the joint system, agreements between the joint system and its members, and the funds and accounts of the joint system;

(2)   the terms and conditions of loans to be made from the financing pool;

(3)   the setting aside of reserves and the investment, regulation, and disposition of the reserves;

(4)   the custody, collection, securing, investment, and payment of any monies held for the payment of construction notes;

(5)   limitations or restrictions on the purposes to which the proceeds of sale of construction notes then or thereafter issued may be applied;

(6)   limitations or restrictions on the issuance of additional construction notes, the terms upon which additional construction notes may be issued and secured, or the refunding of outstanding or other construction notes;

(7)   the procedure, if any, by which the terms of any contract with holders of construction notes may be amended, the percentage of construction notes the holders of which must consent to, and the manner in which the consent may be given;

(8)   events of default and the rights and liabilities arising on default, the terms and conditions upon which construction notes issued under this chapter become or may be declared due before maturity, and the terms and conditions upon which the declaration and its consequences may be waived;

(9)   the retention or employment of financial advisors, attorneys, independent auditors, and other technical consultants;

(10)   provisions for insurance and for accounting reports and the inspection and audit of them;

(11)   conditions under which the construction notes may be defeased or redeemed."


Printed Page 3640 . . . . . Tuesday, June 22, 1999

SECTION   2.   The 1976 Code is amended by adding:

"Section 6-25-129.   A joint system is an instrumentality of local government, and is authorized by this chapter exclusively for the performance of governmental functions, and the income of a joint system is exempt from state taxes."

SECTION   3.   The 1976 Code is amended by adding:

"Section 6-25-131.   None of the income, profits, or assets of a joint system may inure to the benefit of any individual or private entity."

SECTION   4.   Section 6-25-20 of the 1976 Code, as last amended by Act 74 of 1997, is further amended by adding five appropriately lettered items at the end to read:

"( )   'Construction note' or 'notes' means notes of a joint system issued to provide funds for the creation of a financing pool and costs associated with it.

( )   'Financing agreement' means an agreement entered into by a joint system organized to create a financing pool and a member of it in connection with the lending of the proceeds of construction notes or portion thereof by the joint system to the member so as to provide for the repayment of amounts loaned and interest on it by the member to the joint system.

( )   'Financing pool' means a fund of money, obtained through the issuance of a construction note of a joint municipal water system, which may be loaned to the members of it by way of interim financing. Not exceeding five percent of the principal amount of a financing pool may be loaned to not-for-profit corporations established pursuant to Chapter 35 of Title 33.

( )   'Government' means the United States of America, acting through the United States Department of Agriculture, or its successor, and the agencies and divisions of it.

( )   'Interim financing' means a bond anticipation note or notes issued pursuant to the provisions of Sections 11-17-10 to 11-17-120 in anticipation of the issuance of a bond or bonds of a municipality to be sold to the government."

SECTION   5.   Section 6-25-20(h) of the 1976 Code is amended to read:

"(h)   'Member of a joint system' means those municipalities whose governing bodies have agreed (1) to create a joint municipal water system to undertake the impounding, acquisition, treatment, production, transmission, distribution, service, and sale of water to a municipality which is a member of the system and other municipalities, and persons which are not members when approved by the governing body of each


Printed Page 3641 . . . . . Tuesday, June 22, 1999

member or (2) to create a joint municipal water system for the purpose of creating a financing pool. A joint municipal water system created for the purpose of creating a financing pool may have as nonvoting members not-for-profit corporations created pursuant to Chapter 35 of Title 33."

SECTION   6.   Section 6-25-30 of the 1976 Code is amended by adding the following two paragraphs at the end:

"Additionally, any two or more governing bodies of municipalities may, by resolution or ordinance, determine that it is in the best interests of their municipalities, residents, and customers to create a joint system for the purpose of creating a financing pool.

A joint system may be created for the purpose of planning, financing, developing, constructing, acquiring, improving, enlarging, selling, leasing, maintaining, and operating a project or for the purpose of creating a financing pool, but not for both such purposes."

SECTION   7.   Section 6-25-40 of the 1976 Code is amended by adding the following sentence at the end:

"If a joint system is formed for the purposes of creating a financing pool, the provisions of this section do not apply."

SECTION   8.   Section 6-25-50 of the 1976 Code is amended to read:

"Section 6-25-50.   Upon fulfilling the requirements set forth in Section 6-25-40, if applicable each governing body which determines that its participation in the proposed joint system is in its best interest shall by resolution appoint one representative to the proposed joint system. Any two or more representatives shall file with the Secretary of State an application signed by the representative of each proposed member setting forth:

(a)   the names of all the proposed members and their respective appointed representatives;

(b)   a certified copy of (i) the resolution or ordinance of each member determining it is in its best interest to participate in the proposed joint system and (ii) the resolution appointing such the member's representative;

(c)   the desire that the joint system be organized as a public body and a body corporate and politic under this chapter;

(d)   the name which is proposed for the joint system; and

(e)   the purpose for creation of the joint system.

The Secretary of State shall file the application if after examining it and determining that it complies with the requirements in this section and that the proposed name of the joint system is not identical with that


Printed Page 3642 . . . . . Tuesday, June 22, 1999

of any other corporation of the State or any agency or instrumentality or so nearly similar as to lead to confusion and uncertainty.

After the application has been made and filed, the Secretary of State shall issue a corporate certificate which shall must be filed with the application, and the joint system shall then must be constituted a public body corporate and politic under the name proposed in the application. The corporate certificate shall set forth the names of the all voting members and of the name of the joint system. There must also be stated upon the corporate certificate the purpose for which it has been created, as set forth in the application. Notice of the issuance of such corporate certificate shall must be given to all members of the joint system by the Secretary of State.

In any suit, action, or proceeding involving the validity or enforcement of, or relating to, any contract of a joint system, the joint system in the absence of establishing fraud shall be conclusively deemed considered to have been established in accordance with the provisions of this chapter upon proof of the issuance of the certificate by the Secretary of State. A copy of such the certificate, duly certified by the Secretary of State, shall be is admissible in evidence in any suit, action, or proceeding and shall be is conclusive proof of the filing and contents."

SECTION   9.   Section 6-25-60(a) and (b) of the 1976 Code, as last amended by Act 569 of 1988, is further amended to read:

"(a)   The management and control of a joint system shall be is vested in a commission. The governing body of each voting member of a joint system shall appoint a representative who shall must be a commissioner of the joint system. The representative may be an officer or employee of the member and may also serve ex officio as a member of the commission. Each commissioner shall have has one vote and may have additional votes as a majority of the members of the joint system determines. Each commissioner shall serve at the pleasure of the governing body by which he was appointed. Each appointed commissioner, before entering upon his duties, shall take and subscribe to an oath before a person authorized by law to administer oaths to execute the duties of his office faithfully and impartially, and a record of each oath shall must be filed with the governing body of the appointing authority.

If the commissioners unanimously designate any member for additional representation, then the governing body of any member designated is entitled to appoint up to two additional representatives to be commissioners of the joint system. These additional commissioners


Printed Page 3643 . . . . . Tuesday, June 22, 1999

have the same power and authority and are subject to the same limitations as the commissioners initially appointed. Once the membership of a commission has been increased in this manner, the additional votes provision of the preceding paragraph no longer applies to the commission.

(b)   The commissioners of the joint system shall annually, or biennially, if provided in the bylaws of the joint system, elect, with each commissioner having one vote, one of the commissioners as chairman, another as vice chairman, and other persons who may, but need not be commissioners, as treasurer, secretary and, if desired, assistant secretary. The office of treasurer may be held by the secretary or assistant secretary. The commission may also appoint such additional officers as it deems necessary. The secretary or assistant secretary of the joint system shall keep a record of the proceedings of the joint system, and the secretary shall must be the custodian of all books, records, documents, and papers filed with the joint system, the minute book or journal of the joint system, and its official seal."

SECTION   10.   The last paragraph of Section 6-25-70 of the 1976 Code is amended to read:

"Notice of any change in membership must be filed in the office of the Secretary of State, and no change is final until such this filing, provided, however, that the filing is not required if a joint system is organized for the purpose of creating a financing pool."

SECTION   11.   Section 6-25-80 of the 1976 Code is amended to read:

"Section 6-25-80.   Whenever the commission of a joint system and the governing body of each of its members shall by resolution or ordinance determine that the purposes for which the joint system was formed have been substantially fulfilled and that all bonds issued and all other obligations incurred by the joint system have been fully paid or satisfied, such the commission and members may declare the joint system to be dissolved. On the effective date of such the resolution or ordinance, the title to all funds and other income and property owned by the joint system at the time of dissolution must be disbursed to the voting members of the joint system according to its bylaws."

SECTION   12.   Section 6-25-100(n) of the 1976 Code, as last amended by Act 74 of 1997, is further amended to read:

"(n)   To borrow money and issue bonds or notes of the joint system, to loan the proceeds of any borrowing to any member of the joint system to be paid solely from revenues of the system, the loan repayments of members, and such other funds as may be available


Printed Page 3644 . . . . . Tuesday, June 22, 1999

therefor with a favorable vote of two-thirds of the commissioners. No bonds or notes may be issued the payment for which is dependent upon contracts or agreements with a member except with the approval of the governing body of such member, by resolution or ordinance of the governing body of such the member. However, the requirements of this item are satisfied and no further action is required with respect to any bonds or notes issued to finance a project which has been approved by the governing body of such the members as provided in Section 6-25-110. The approval of any notes or bonds under this chapter shall include any issuance in one or more series and any refunding or refinancing of them so that only the original issuance of the debt must be approved. The members of a joint system may prescribe additional procedures and requirements as they determine appropriate for the issuance of any notes or bonds in the bylaws of any joint system."

SECTION   13.   Section 6-25-100 of the 1976 Code, as last amended by Act 74 of 1997, is further amended by adding the following paragraph at the end:

"Provided, however, that the provisions of (g), (h), (i), (j), (p), (q), (t), (u), (v), (w), (x), (y), (z), (aa), and (bb) do not apply to a joint system organized solely for the purpose of creating a financing pool."

SECTION   14.   Section 6-25-110 of the 1976 Code, as last amended by Act 74 of 1997, is further amended by adding the following sentence at the end:

"A joint system formed for the purpose of creating a financing pool may issue notes in anticipation of the issuance of bonds by its members to the government."

SECTION   15.   Section 6-25-120 of the 1976 Code, as last amended by Act 74 of 1997, is further amended to read:

"Section 6-25-120.   In borrowing money or the issuance of bonds or notes, construction notes, or other obligations, there may not be pledged the full faith, credit, or taxing power of any member of the joint system, but only revenues and other funds available to the system must be used to pay or pledged to the payment of any notes, obligations, or bonds."

SECTION   16.   Section 6-25-126 of the 1976 Code is amended to read:

"Section 6-25-126.   The resolution authorizing the bonds or construction notes of any issue or the trust agreement securing the bonds or construction notes may provide that any of the monies may be temporarily invested and reinvested pending disbursements and the securities and other investments provided in the resolution or trust


Printed Page 3645 . . . . . Tuesday, June 22, 1999

agreement, and must provide that any bank or trust company with which the monies are deposited shall act as trustee of the monies and shall hold and apply them for the purposes of this chapter, subject to regulation as this chapter and the resolution or trust agreement may provide."

SECTION   17.   Section 6-25-127 of the 1976 Code is amended to read:

"Section 6-25-127.   Any holder of bond or construction notes issued under the provisions of this chapter or any of the coupons appertaining to them, and the trustee under any trust agreement, except to the extent the rights given by this chapter may be restricted by the trust agreement or the resolution authorizing the issuance of the bonds or construction notes, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the State or granted under this chapter, or, to the extent permitted by law, under the trust agreement or resolution authorizing the issuance of the bonds or under any agreement or other contract executed by the joint system pursuant to this chapter, and may enforce and compel the performance of all duties required by this chapter or by the trust agreement or resolution to be performed by any joint system or municipality or by their officers, including the fixing, charging, and collecting of rents, fees, and charges."

SECTION   18.   Section 6-25-145 of the 1976 Code is amended to read:

"Section 6-25-145.   It is lawful for any executor, administrator, guardian, committee, or other fiduciary to invest any monies in his hand in bonds and construction notes issued under the provisions of this chapter."

SECTION   19.   Section 6-25-155 of the 1976 Code is amended to read:

"Section 6-25-155.   Whether or not the bonds and interest coupons appertaining to them and construction notes are of a form and character as to be investment securities under Chapter 8 of Title 36, all bonds and interest coupons appertaining to them and construction notes issued under this chapter are hereby made investment securities within the meaning of and for all the purposes of Chapter 8 of Title 36, subject only to the provisions of the bonds and construction notes pertaining to registration."

SECTION   20.   Section 6-25-160 of the 1976 Code is amended to read:


Printed Page 3646 . . . . . Tuesday, June 22, 1999

"Section 6-25-160.   The principal and interest on the bonds, notes, construction notes, or other evidences of indebtedness issued pursuant to this chapter shall have the tax-exempt status prescribed by Section 12-1-60 12-2-50."

SECTION   21.   A.     Chapter 7, Title 5 of the 1976 Code is amended by adding:

"Section 5-7-145.   (A)   Each municipality bordering on the Atlantic Ocean is authorized to provide lifeguard and other safety related services on and along the public beaches within its corporate limits. A coastal municipality may enact and enforce regulations it determines necessary for the safety of all persons on the beach.

(B)   Lifeguard services may be provided using municipal employees or by service agreement with a private beach safety company.

If the municipality elects to provide the services by an agreement with a private beach safety company, the following conditions apply:

(1)   the municipality shall follow the procedures of the State Procurement Code, as found in Chapter 35 of Title 11, or the procedures of the municipal procurement code, in the awarding of contracts with private beach safety companies;

(2)   the agreement between the municipality and private beach safety company may last no longer than seven years;

(3)   the municipality may grant the exclusive right to the beach safety company to rent only the beach equipment and to sell only the items to the public on the beach that are allowed by the municipality on the effective date of this section; provided, however, that on and after the effective date of this section there shall be no granting of the right to rent any additional tangible items, or to sell any beverages to the public on the beach, or otherwise, unless and until additional personnel are hired for the additional rentals and additional activities sufficient in number so that employees already employed on the effective date of this section will not be unduly burdened as determined by the appropriate municipal governing body;

(4)   lifeguard personnel employed by the private beach safety company must be tested and certified as required by the municipality; and

(5)   the conduct of the limited commercial activities granted to the private beach safety company shall not prevent or interfere in a substantial way with the peaceful, recreational use of the public beach by the general public.


Printed Page 3647 . . . . . Tuesday, June 22, 1999

(C)   Nothing in this section enlarges, restricts, or infringes upon the existing rights of the owners of private property adjacent to the public beaches."

B.     Section 4-9-30(11) of the 1976 Code is amended to read:

"(11)   to grant franchises and make charges in areas outside the corporate limits of municipalities within the county in the manner provided by law for municipalities and subject to the same limitations, to provide for the orderly control of services and utilities affected with the public interest; provided, however, that the provisions of this subsection shall not apply to persons or businesses acting in the capacity of telephone, telegraph, gas and electric utilities, or suppliers, nor shall it apply to utilities owned and operated by a municipality; provided, further, that the provisions of this subsection shall apply to the authority to grant franchises and contracts for the use of public beaches;"

C.     The first undesignated paragraph of Section 5-7-30 of the 1976 Code, as amended by Act 171 of 1993, is further amended to read:

"Each municipality of the State, in addition to the powers conferred to its specific form of government, may enact regulations, resolutions, and ordinances, not inconsistent with the Constitution and general law of this State, including the exercise of powers in relation to roads, streets, markets, law enforcement, health, and order in the municipality or respecting any subject which appears to it necessary and proper for the security, general welfare, and convenience of the municipality or for preserving health, peace, order, and good government in it, including the authority to levy and collect taxes on real and personal property and as otherwise authorized in this section, make assessments, and establish uniform service charges relating to them; the authority to abate nuisances; the authority to provide police protection in contiguous municipalities and in unincorporated areas located not more than three miles from the municipal limits upon the request and agreement of the governing body of such contiguous municipality or the county, including agreement as to the boundaries of such police jurisdictional areas, in which case the municipal law enforcement officers shall have the full jurisdiction, authority, rights, privileges, and immunities, including coverage under the workers' compensation law, which they have in the municipality, including the authority to make arrests, and to execute criminal process within the extended jurisdictional area; provided, however, that this shall not extend the effect of the laws of the municipality beyond its corporate boundaries; grant franchises for the use of public streets and make charges for


Printed Page 3648 . . . . . Tuesday, June 22, 1999

them; grant franchises and make charges for the use of public beaches; engage in the recreation function; levy a business license tax on gross income, but a wholesaler delivering goods to retailers in a municipality is not subject to the business license tax unless he maintains within the corporate limits of the municipality a warehouse or mercantile establishment for the distribution of wholesale goods; and a business engaged in making loans secured by real estate is not subject to the business license tax unless it has premises located within the corporate limits of the municipality and no entity which is exempt from the license tax under another law nor a subsidiary or affiliate of an exempt entity is subject to the business license tax; borrow in anticipation of taxes; and pledge revenues to be collected and the full faith and credit of the municipality against its note and conduct advisory referenda. The municipal governing body may fix fines and penalties for the violation of municipal ordinances and regulations not exceeding five hundred dollars or imprisonment not exceeding thirty days, or both."

D.     Notwithstanding any other provision of this section or any other provision of law, the provisions of this section shall not affect, alter, or abrogate contracts existing and in effect on the effective date of this act.

SECTION   22.   Sections 11-27-40 and 11-27-50 of the 1976 Code are amended to read:

"Section 11-27-40.   The governing body of each of the political subdivisions of the State shall be empowered to incur general obligation debt for their respective political subdivisions as permitted by Section 14 of New Article X and in accordance with its provisions and limitations. All laws shall continue in force and effect after the ratification date, but each of such laws is amended as follows:

1.   If no election be prescribed in such law and an election is required by New Article X, then in every such instance, a majority vote of the qualified electors of the political subdivision voting in the referendum herein authorized is declared a condition precedent to the issuance of bonds pursuant to such law. The governing body of each of the political subdivisions shall be empowered to order any such referendum as is required by New Article X or any other provision of the Constitution, to prescribe the notice thereof and to conduct or cause such referendum to be conducted in the manner prescribed by Title 7, Code of Laws of South Carolina, 1976.

2.   If an election be prescribed by the provisions of such law, but is not required by the provisions of New Article X, then in every such instance, no election need be held (notwithstanding the requirement therefor in such law) and the remaining provisions of such law shall


Printed Page 3649 . . . . . Tuesday, June 22, 1999

constitute a full and complete authorization to issue bond in accordance with such remaining provisions.

3.   If a statutory debt limitation be prescribed by any such law, then in lieu thereof, the debt limitation shall be that resulting from the provisions of Section 14 of New Article X.

4.   Notwithstanding any contrary provision in any law, any issue of general obligation bonds maturing not later than eight ten years from their date of issuance and in the amount of not exceeding one million five hundred thousand dollars may be sold at private sale and without advertisement, if not less than ten seven days prior to their delivery, notice of intention to sell such bonds at private sale shall be given by publication in a newspaper of general circulation in such political subdivision. Such notice shall set forth the purchaser, the purchase price, interest rates, and maturity schedule of such bonds.

5.   As permitted by paragraph 8 of Section 14 of New Article X, all political subdivisions are authorized and empowered to incur general obligation debt in anticipation of the collection of ad valorem taxes or licenses (tax anticipation notes). Tax anticipation notes shall be expressed to mature not later than ninety days from the date on which such taxes or license fees may be paid without penalty. In the case of counties and incorporated municipalities, tax anticipation notes shall be issued pursuant to an ordinance adopted in the manner provided by law. In the case of any special purpose district, tax anticipation notes may be authorized by a resolution of its governing body but such action shall be authorized, approved, or ratified by an ordinance of the governing body or governing bodies (as the case may be) of the county or counties wherein such special purpose district is situate. The provisions of this item shall take effect upon May 30, 1977.

6.   The provisions of Chapter 17 of Title 11, relating to the issuance of bond anticipation notes, shall continue in force and effect after the ratification with respect to all political subdivisions and the governing body of each political subdivision is hereby authorized and empowered to issue bond anticipation notes pursuant to and in accordance with the provisions of that chapter and the limitations imposed by paragraph 9 of Section 14 of New Article X.

7.   All laws now in force permitting any political subdivisions to incur indebtedness (and to issue bonds or other evidences of debt) which shall be payable solely from a revenue-producing project or from a special source, which source does not involve revenues from any tax or license, shall continue in force and effect after the ratification date. Evidences of such indebtedness shall contain a statement on the face


Printed Page 3650 . . . . . Tuesday, June 22, 1999

thereof specifying the sources from which payment is to be made and shall state that the full faith, credit, and taxing powers of the issuer are not pledged therefor.

Any law containing any provisions inconsistent herewith (including Chapter 19 of Title 11, as amended) is herewith amended by the removal therefrom of such inconsistent provisions.

8. The initiative and referendum provisions contained in Article 13, Chapter 9 of Title 4 and Chapter 17 of Title 5 of the 1976 Code, shall not be applicable to any other ordinance authorizing the issuance of general obligation bonds unless a notice, signed by not less than five qualified electors, of the intention to seek a referendum, be filed both in the office of the clerk of court of the county wherein such political subdivision is situate and with the clerk or other recording officer of the political subdivision. Such notices of intention to seek a referendum shall be so filed within twenty days following the publication by the governing body of the political subdivision of notice in a newspaper of general circulation in such political subdivision of the adoption of such ordinance.

9.   Notwithstanding any other provision of law, a political subdivision may issue general obligation bonds in accordance with one or more of the following provisions:

(a)   The principal amount of the bonds maturing in a given year shall be in an amount as prescribed by the governing body of the political subdivision. The first maturing bonds of an issue shall mature within five years from the date on which they are issued; and no bond shall mature later than thirty years from the date on which it is issued.

(b)   The bonds shall be sold at public sale, after advertisement of the sale in a newspaper having general circulation in the State or in a financial publication published in the City of New York. The advertisement must appear not less than seven days prior to the date set for the sale. The advertisement may set as a sale date a fixed date not less than seven days following publication, or the advertisement may advise that the sale date will be at least seven days following the date of publication. If a fixed date of sale is not set forth in the notice of sale published in accordance with this subitem, the date selected for the receipt of bids must be disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids. If a fixed date of sale is set forth in the notice of sale, it may be modified by notice disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids on the modified date of sale. No bonds may be sold pursuant to this


Printed Page 3651 . . . . . Tuesday, June 22, 1999

subitem on a date that is more than sixty days after the date of the most recent publication of the notice of sale. Bids for the purchase of bonds may be received in such form as determined by the governing body of the issuer.

(c)   The bonds may be disposed of at private sale if there are no bids received or if all bids are rejected. The provisions of this section shall not prevent a sale at private sale to the United States of America or any agency thereof.

(d)   Bonds issued pursuant to this section may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus such redemption premium as may be prescribed by the governing body of the issuer, but no bond shall be redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provisions shall be made specifying the manner of call and the notice that must be given.

Section 11-27-50.   The board of trustees or other governing body (the governing body) of each of the school districts of the State shall be empowered to incur general obligation debt for their respective school districts as permitted by Section 15 of New Article X and in accordance with its provisions and limitations. All laws relating to such matters shall continue in force and effect after the ratification date, but all such laws are amended as follows:

1.   If no election be prescribed in such law and an election is required by New Article X, then in every such instance, a majority vote of the qualified electors of the school district voting in the referendum herein authorized is declared a condition precedent to the issuance of bonds pursuant to such law. The governing body of each of the school districts shall be empowered to order any such referendum as is required by New Article X or any other provisions of the Constitution, to prescribe the notice thereof and to conduct or cause to be conducted such referendum in the manner prescribed by Article 1, Chapter 71, Title 59, Code of Laws of South Carolina, 1976.

2.   If an election be prescribed by the provisions of such law, but is not required by the provisions of New Article X, then in every such instance, no election need be held and the remaining provisions of such law shall constitute a full and complete authorization to issue bonds in accordance with such remaining provisions.

3.   If a statutory debt limitation be prescribed by any such law, then in lieu thereof, the debt limitation shall be that resulting from the provisions of Section 15 of New Article X.


Printed Page 3652 . . . . . Tuesday, June 22, 1999

4.   As permitted by paragraph 7 of Section 15 of New Article X, all school districts are authorized and empowered to incur general obligation debt in anticipation of the collection of ad valorem taxes (tax anticipation notes). Tax anticipation notes shall be expressed to mature not later than ninety days from the date as of which such taxes may be paid without penalty. Tax anticipation notes shall be issued pursuant to a resolution adopted by the governing body.

5.   The provisions of Chapter 17 of Title 11, relating to the issuance of bond anticipation notes, shall continue in force and effect after the ratification date with respect to all school districts and the governing body of each school district is hereby authorized and empowered to issue bond anticipation notes pursuant to and in accordance with the provisions of Chapter 17 of Title 11 and the limitations imposed by paragraph 8 of Section 15 of New Article X.

6.   Notwithstanding provision of law to the contrary, an issue of general obligation bonds maturing not later than ten years from their date of issuance and in the amount of not exceeding one million five hundred thousand dollars may be sold at private sale and without advertisement, if not less than seven days prior to their delivery, notice of intention to sell such bonds at private sale is given by publication in a newspaper of general circulation in the school district. Such notice shall set forth the purchaser, the purchase price, interest rates, and maturity schedule of such bonds.

7.   Notwithstanding any other provision of law, a school district may issue general obligation bonds in accordance with one or more of the following provisions:

(a)   The principal amount of the bonds maturing in a given year shall be in an amount as prescribed by the governing body. The first maturing bonds of an issue shall mature within five years from the date on which they are issued; and no bond shall mature later than thirty years from the date on which it is issued.

(b)   The bonds shall be sold at public sale, after advertisement of the sale in a newspaper having general circulation in the State or in a financial publication published in the City of New York or, in the discretion of the authorities, in both publications. The advertisement must appear not less than seven days prior to the date set as a sale date for the sale. The advertisement may set a fixed date not less than seven days following publication, or the advertisement may advise that the sale date will be at least seven days following the date of publication. If a fixed date of sale is not set forth in the notice of sale published in accordance with this subitem, the date selected for the receipt of bids


Printed Page 3653 . . . . . Tuesday, June 22, 1999

must be disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids. If a fixed date of sale is set forth in this notice of sale, it may be modified by notice disseminated via an electronic information service at least forty-eight hours prior to the time set for the receipt of bids on the modified date of sale. No bonds may be sold pursuant to this section on a date that is more than sixty days after the date of the most recent publication of the notice of sale. Bids for the purchase of bonds may be received in such form as determined by the governing body of the issuer.

(c)   The bonds may be disposed of at private sale if there are no bids received or if all bids are rejected. The provisions of this section shall not prevent a sale at private sale to the United States of America or any agency thereof.

(d)   Any bonds issued pursuant to this section may be issued with a provision for their redemption prior to their maturity at par and accrued interest, plus such redemption premium as may be prescribed by the governing body of the issuer, but no bond shall be redeemable before maturity unless it contains a statement to that effect. In the proceedings authorizing the issuance of the bonds, provisions shall be made specifying the manner of call and the notice that must be given."

SECTION   23.   Section 11-15-440 of the 1976 Code is amended to read:

"Section 11-15-440.   The governing body of any issuer may issue general obligation bonds of such issuer to such extent as such issuer shall be indebted by way of principal, interest, and redemption premium upon any outstanding general obligation or revenue bonds, maturing or called for redemption, less all sinking funds and other moneys on hand applicable thereto. The issuer may utilize the provisions of Sections 11-27-40 and 11-27-50 in connection with the issuance of such refunding bonds."

SECTION   24.   This act takes effect upon approval by the Governor.   /

Amend title to conform.

/s/ Harvey S. Peeler, Jr.         /s/ Robert W. Harrell, Jr.
/s/ Luke A. Rankin                /s/ C. Alexander Harvin, III
/s/ Holly A. Cork                 /s/ Ronald N. Fleming
On Part of the Senate.             On Part of the House.

, and a message was sent to the House accordingly.


Printed Page 3654 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has requested and been granted Free Conference Powers and appointed Reps. Fleming, Harvin and Harrell of the Committee of Free Conference on the part of the House on:
H. 3357 (Word version) -- Reps. Fleming, Wilder, Klauber and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-25-115 SO AS TO AUTHORIZE A JOINT MUNICIPAL WATER SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE CONSTRUCTION NOTES; BY ADDING SECTION 6-25-129 SO AS TO EXEMPT FROM STATE TAXES THE INCOME OF A JOINT MUNICIPAL WATER SYSTEM; BY ADDING SECTION 6-25-131 SO AS TO PROVIDE THAT NO INCOME, PROFITS, OR ASSETS OF A JOINT SYSTEM MAY INURE TO THE BENEFIT OF ANY INDIVIDUAL OR PRIVATE ENTITY; TO AMEND SECTION 6-25-20, AS AMENDED, RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO DEFINE "CONSTRUCTION NOTE OR NOTES", "FINANCING AGREEMENT", "FINANCING POOL", "GOVERNMENT", AND "INTERIM FINANCING"; TO AMEND SECTION 6-25-30, RELATING TO THE CREATION OF A JOINT SYSTEM, SO AS TO AUTHORIZE THE GOVERNING BODIES OF MUNICIPALITIES TO CREATE A JOINT SYSTEM FOR THE PURPOSE OF CREATING A FINANCING POOL, AND TO LIMIT THE PURPOSES FOR WHICH A JOINT SYSTEM MAY BE CREATED; TO AMEND SECTION 6-25-40, RELATING TO THE NOTICE OF THE INSTRUMENT CREATING A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM FROM THE NOTICE PROVISIONS IF IT IS FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-50, RELATING TO THE APPOINTMENT OF A MUNICIPAL REPRESENTATIVE TO THE JOINT SYSTEM, SO AS TO ADD TO THE REQUIREMENTS OF THE APPLICATION FILED WITH THE SECRETARY OF STATE THE PURPOSE FOR THE CREATION OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-60, AS AMENDED, RELATING TO THE MANAGEMENT AND CONTROL OF THE JOINT SYSTEM, SO AS TO CLARIFY THAT EACH VOTING MEMBER OF A JOINT SYSTEM SHALL


Printed Page 3655 . . . . . Tuesday, June 22, 1999

APPOINT A REPRESENTATIVE WHO MUST BE A COMMISSIONER OF THE JOINT SYSTEM AND TO AUTHORIZE THE COMMISSIONERS TO MEET BIENNIALLY, IF ITS BYLAWS PROVIDE FOR IT; TO AMEND SECTION 6-25-70, RELATING TO CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL FROM FILING A CHANGE IN MEMBERSHIP WITH THE SECRETARY OF STATE; TO AMEND SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A JOINT SYSTEM, SO AS TO PROVIDE THAT INCOME OWNED BY THE JOINT SYSTEM AT THE TIME OF DISSOLUTION MUST BE DISBURSED TO THE VOTING MEMBERS OF THE MEMBERS OF THE JOINT SYSTEM ACCORDING TO ITS BYLAWS; TO AMEND SECTION 6-25-100, AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO AUTHORIZE THE SYSTEMS TO LOAN THE PROCEEDS OF ANY BORROWING TO ANY MEMBER OF THE JOINT SYSTEM WITH PAYMENT FOR BONDS OR NOTES AUTHORIZED TO BE PAID FROM LOAN REPAYMENT OF MEMBERS, AND TO PROVIDE THAT CERTAIN POWERS ARE NOT GRANTED WHEN A JOINT SYSTEM IS ORGANIZED SOLELY FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-110, AS AMENDED, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO AUTHORIZE A JOINT SYSTEM FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE NOTES IN ANTICIPATION OF THE ISSUANCE OF BONDS BY ITS MEMBERS TO THE GOVERNMENT; TO AMEND SECTION 6-25-120, AS AMENDED, RELATING TO PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO INCLUDE CONSTRUCTION NOTES WITHIN THE LIST OF OBLIGATIONS WHICH MAY NOT BE PLEDGED AS FULL FAITH, CREDIT, OR TAXING POWER OF ANY MEMBER OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-126, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO TEMPORARILY INVEST FUNDS PENDING DISBURSEMENTS IN SECURITIES, SO AS TO INCLUDE CONSTRUCTION NOTES IN ADDITION TO BONDS WHICH MAY BE AUTHORIZED IN THE RESOLUTION; TO AMEND SECTION 6-25-127, RELATING TO THE ENFORCEMENT OF RIGHTS OF BONDHOLDERS, SO AS TO

Printed Page 3656 . . . . . Tuesday, June 22, 1999

INCLUDE HOLDERS OF CONSTRUCTION NOTES AS HAVING THOSE RIGHTS; TO AMEND SECTION 6-25-145, RELATING TO THE PROHIBITION OF CERTAIN FIDUCIARIES TO INVEST MONIES IN THEIR HANDS IN BONDS ISSUED UNDER THE PROVISIONS OF CHAPTER 25 OF TITLE 6, SO AS TO ADD A REFERENCE TO CONSTRUCTION NOTES; TO AMEND SECTION 6-25-155, RELATING TO BONDS AS INVESTMENT SECURITIES FOR PURPOSES OF CHAPTER 8 OF TITLE 36, SO AS TO ADD CONSTRUCTION NOTES TO THOSE EVIDENCES OF INDEBTEDNESS CONSIDERED INVESTMENT SECURITIES; AND TO AMEND SECTION 6-25-160, RELATING TO THE TAX-EXEMPT STATUS OF EVIDENCES OF INDEBTEDNESS ISSUED BY A JOINT SYSTEM, SO AS TO INCLUDE CONSTRUCTION NOTES, AND ADD A REFERENCE TO SECTION 12-2-50.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the Report of the Committee of Free Conference on:
H. 3357 (Word version) -- Reps. Fleming, Wilder, Klauber and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-25-115 SO AS TO AUTHORIZE A JOINT MUNICIPAL WATER SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE CONSTRUCTION NOTES; BY ADDING SECTION 6-25-129 SO AS TO EXEMPT FROM STATE TAXES THE INCOME OF A JOINT MUNICIPAL WATER SYSTEM; BY ADDING SECTION 6-25-131 SO AS TO PROVIDE THAT NO INCOME, PROFITS, OR ASSETS OF A JOINT SYSTEM MAY INURE TO THE BENEFIT OF ANY INDIVIDUAL OR PRIVATE ENTITY; TO AMEND SECTION 6-25-20, AS AMENDED, RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO DEFINE "CONSTRUCTION NOTE OR NOTES", "FINANCING AGREEMENT", "FINANCING POOL", "GOVERNMENT", AND "INTERIM FINANCING"; TO AMEND SECTION 6-25-30, RELATING TO THE CREATION OF A JOINT SYSTEM, SO AS TO


Printed Page 3657 . . . . . Tuesday, June 22, 1999

AUTHORIZE THE GOVERNING BODIES OF MUNICIPALITIES TO CREATE A JOINT SYSTEM FOR THE PURPOSE OF CREATING A FINANCING POOL, AND TO LIMIT THE PURPOSES FOR WHICH A JOINT SYSTEM MAY BE CREATED; TO AMEND SECTION 6-25-40, RELATING TO THE NOTICE OF THE INSTRUMENT CREATING A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM FROM THE NOTICE PROVISIONS IF IT IS FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-50, RELATING TO THE APPOINTMENT OF A MUNICIPAL REPRESENTATIVE TO THE JOINT SYSTEM, SO AS TO ADD TO THE REQUIREMENTS OF THE APPLICATION FILED WITH THE SECRETARY OF STATE THE PURPOSE FOR THE CREATION OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-60, AS AMENDED, RELATING TO THE MANAGEMENT AND CONTROL OF THE JOINT SYSTEM, SO AS TO CLARIFY THAT EACH VOTING MEMBER OF A JOINT SYSTEM SHALL APPOINT A REPRESENTATIVE WHO MUST BE A COMMISSIONER OF THE JOINT SYSTEM AND TO AUTHORIZE THE COMMISSIONERS TO MEET BIENNIALLY, IF ITS BYLAWS PROVIDE FOR IT; TO AMEND SECTION 6-25-70, RELATING TO CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL FROM FILING A CHANGE IN MEMBERSHIP WITH THE SECRETARY OF STATE; TO AMEND SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A JOINT SYSTEM, SO AS TO PROVIDE THAT INCOME OWNED BY THE JOINT SYSTEM AT THE TIME OF DISSOLUTION MUST BE DISBURSED TO THE VOTING MEMBERS OF THE MEMBERS OF THE JOINT SYSTEM ACCORDING TO ITS BYLAWS; TO AMEND SECTION 6-25-100, AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO AUTHORIZE THE SYSTEMS TO LOAN THE PROCEEDS OF ANY BORROWING TO ANY MEMBER OF THE JOINT SYSTEM WITH PAYMENT FOR BONDS OR NOTES AUTHORIZED TO BE PAID FROM LOAN REPAYMENT OF MEMBERS, AND TO PROVIDE THAT CERTAIN POWERS ARE NOT GRANTED WHEN A JOINT SYSTEM IS ORGANIZED SOLELY FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-110, AS AMENDED, RELATING TO THE AUTHORIZATION

Printed Page 3658 . . . . . Tuesday, June 22, 1999

OF A JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO AUTHORIZE A JOINT SYSTEM FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE NOTES IN ANTICIPATION OF THE ISSUANCE OF BONDS BY ITS MEMBERS TO THE GOVERNMENT; TO AMEND SECTION 6-25-120, AS AMENDED, RELATING TO PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO INCLUDE CONSTRUCTION NOTES WITHIN THE LIST OF OBLIGATIONS WHICH MAY NOT BE PLEDGED AS FULL FAITH, CREDIT, OR TAXING POWER OF ANY MEMBER OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-126, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO TEMPORARILY INVEST FUNDS PENDING DISBURSEMENTS IN SECURITIES, SO AS TO INCLUDE CONSTRUCTION NOTES IN ADDITION TO BONDS WHICH MAY BE AUTHORIZED IN THE RESOLUTION; TO AMEND SECTION 6-25-127, RELATING TO THE ENFORCEMENT OF RIGHTS OF BONDHOLDERS, SO AS TO INCLUDE HOLDERS OF CONSTRUCTION NOTES AS HAVING THOSE RIGHTS; TO AMEND SECTION 6-25-145, RELATING TO THE PROHIBITION OF CERTAIN FIDUCIARIES TO INVEST MONIES IN THEIR HANDS IN BONDS ISSUED UNDER THE PROVISIONS OF CHAPTER 25 OF TITLE 6, SO AS TO ADD A REFERENCE TO CONSTRUCTION NOTES; TO AMEND SECTION 6-25-155, RELATING TO BONDS AS INVESTMENT SECURITIES FOR PURPOSES OF CHAPTER 8 OF TITLE 36, SO AS TO ADD CONSTRUCTION NOTES TO THOSE EVIDENCES OF INDEBTEDNESS CONSIDERED INVESTMENT SECURITIES; AND TO AMEND SECTION 6-25-160, RELATING TO THE TAX-EXEMPT STATUS OF EVIDENCES OF INDEBTEDNESS ISSUED BY A JOINT SYSTEM, SO AS TO INCLUDE CONSTRUCTION NOTES, AND ADD A REFERENCE TO SECTION 12-2-50.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that the Report of the Committee of Free Conference having been adopted by


Printed Page 3659 . . . . . Tuesday, June 22, 1999

both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
H. 3357 (Word version) -- Reps. Fleming, Wilder, Klauber and Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-25-115 SO AS TO AUTHORIZE A JOINT MUNICIPAL WATER SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE CONSTRUCTION NOTES; BY ADDING SECTION 6-25-129 SO AS TO EXEMPT FROM STATE TAXES THE INCOME OF A JOINT MUNICIPAL WATER SYSTEM; BY ADDING SECTION 6-25-131 SO AS TO PROVIDE THAT NO INCOME, PROFITS, OR ASSETS OF A JOINT SYSTEM MAY INURE TO THE BENEFIT OF ANY INDIVIDUAL OR PRIVATE ENTITY; TO AMEND SECTION 6-25-20, AS AMENDED, RELATING TO DEFINITIONS FOR JOINT MUNICIPAL WATER SYSTEMS, SO AS TO DEFINE "CONSTRUCTION NOTE OR NOTES", "FINANCING AGREEMENT", "FINANCING POOL", "GOVERNMENT", AND "INTERIM FINANCING"; TO AMEND SECTION 6-25-30, RELATING TO THE CREATION OF A JOINT SYSTEM, SO AS TO AUTHORIZE THE GOVERNING BODIES OF MUNICIPALITIES TO CREATE A JOINT SYSTEM FOR THE PURPOSE OF CREATING A FINANCING POOL, AND TO LIMIT THE PURPOSES FOR WHICH A JOINT SYSTEM MAY BE CREATED; TO AMEND SECTION 6-25-40, RELATING TO THE NOTICE OF THE INSTRUMENT CREATING A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM FROM THE NOTICE PROVISIONS IF IT IS FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-50, RELATING TO THE APPOINTMENT OF A MUNICIPAL REPRESENTATIVE TO THE JOINT SYSTEM, SO AS TO ADD TO THE REQUIREMENTS OF THE APPLICATION FILED WITH THE SECRETARY OF STATE THE PURPOSE FOR THE CREATION OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-60, AS AMENDED, RELATING TO THE MANAGEMENT AND CONTROL OF THE JOINT SYSTEM, SO AS TO CLARIFY THAT EACH VOTING MEMBER OF A JOINT SYSTEM SHALL APPOINT A REPRESENTATIVE WHO MUST BE A COMMISSIONER OF THE JOINT SYSTEM AND TO AUTHORIZE THE COMMISSIONERS TO MEET BIENNIALLY, IF ITS BYLAWS PROVIDE FOR IT; TO AMEND SECTION 6-25-70,

Printed Page 3660 . . . . . Tuesday, June 22, 1999

RELATING TO CHANGE IN MEMBERSHIP OF A JOINT SYSTEM, SO AS TO EXEMPT A JOINT SYSTEM ORGANIZED FOR THE PURPOSE OF CREATING A FINANCING POOL FROM FILING A CHANGE IN MEMBERSHIP WITH THE SECRETARY OF STATE; TO AMEND SECTION 6-25-80, RELATING TO THE DISSOLUTION OF A JOINT SYSTEM, SO AS TO PROVIDE THAT INCOME OWNED BY THE JOINT SYSTEM AT THE TIME OF DISSOLUTION MUST BE DISBURSED TO THE VOTING MEMBERS OF THE MEMBERS OF THE JOINT SYSTEM ACCORDING TO ITS BYLAWS; TO AMEND SECTION 6-25-100, AS AMENDED, RELATING TO POWERS OF JOINT MUNICIPAL WATER SYSTEMS, SO AS TO AUTHORIZE THE SYSTEMS TO LOAN THE PROCEEDS OF ANY BORROWING TO ANY MEMBER OF THE JOINT SYSTEM WITH PAYMENT FOR BONDS OR NOTES AUTHORIZED TO BE PAID FROM LOAN REPAYMENT OF MEMBERS, AND TO PROVIDE THAT CERTAIN POWERS ARE NOT GRANTED WHEN A JOINT SYSTEM IS ORGANIZED SOLELY FOR THE PURPOSE OF CREATING A FINANCING POOL; TO AMEND SECTION 6-25-110, AS AMENDED, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO INCUR DEBT AND ISSUE BONDS, SO AS TO AUTHORIZE A JOINT SYSTEM FORMED FOR THE PURPOSE OF CREATING A FINANCING POOL TO ISSUE NOTES IN ANTICIPATION OF THE ISSUANCE OF BONDS BY ITS MEMBERS TO THE GOVERNMENT; TO AMEND SECTION 6-25-120, AS AMENDED, RELATING TO PAYMENT OF NOTES, OBLIGATIONS, OR BONDS, SO AS TO INCLUDE CONSTRUCTION NOTES WITHIN THE LIST OF OBLIGATIONS WHICH MAY NOT BE PLEDGED AS FULL FAITH, CREDIT, OR TAXING POWER OF ANY MEMBER OF THE JOINT SYSTEM; TO AMEND SECTION 6-25-126, RELATING TO THE AUTHORIZATION OF A JOINT SYSTEM TO TEMPORARILY INVEST FUNDS PENDING DISBURSEMENTS IN SECURITIES, SO AS TO INCLUDE CONSTRUCTION NOTES IN ADDITION TO BONDS WHICH MAY BE AUTHORIZED IN THE RESOLUTION; TO AMEND SECTION 6-25-127, RELATING TO THE ENFORCEMENT OF RIGHTS OF BONDHOLDERS, SO AS TO INCLUDE HOLDERS OF CONSTRUCTION NOTES AS HAVING THOSE RIGHTS; TO AMEND SECTION 6-25-145, RELATING TO THE PROHIBITION OF CERTAIN FIDUCIARIES TO INVEST MONIES IN THEIR HANDS IN BONDS ISSUED UNDER THE

Printed Page 3661 . . . . . Tuesday, June 22, 1999

PROVISIONS OF CHAPTER 25 OF TITLE 6, SO AS TO ADD A REFERENCE TO CONSTRUCTION NOTES; TO AMEND SECTION 6-25-155, RELATING TO BONDS AS INVESTMENT SECURITIES FOR PURPOSES OF CHAPTER 8 OF TITLE 36, SO AS TO ADD CONSTRUCTION NOTES TO THOSE EVIDENCES OF INDEBTEDNESS CONSIDERED INVESTMENT SECURITIES; AND TO AMEND SECTION 6-25-160, RELATING TO THE TAX-EXEMPT STATUS OF EVIDENCES OF INDEBTEDNESS ISSUED BY A JOINT SYSTEM, SO AS TO INCLUDE CONSTRUCTION NOTES, AND ADD A REFERENCE TO SECTION 12-2-50.
Very respectfully,
Speaker of the House

Received as information.

H. 3696--ADOPTION OF THE REPORT OF THE COMMITTEE OF CONFERENCE RECONSIDERED
H. 3696--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

H. 3696 -- Ways and Means Committee: (GENERAL APPROPRIATION BILL)

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

Senator SETZLER asked unanimous consent to make a motion to reconsider the vote whereby the Senate adopted the Report of the Committee of Conference to H. 3696, the General Appropriation Bill.

There was no objection.

H. 3696--Free Conference Powers Granted
Free Conference Committee Appointed

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

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


Printed Page 3662 . . . . . Tuesday, June 22, 1999

On motion of Senator SETZLER, the Report of the Committee of Free Conference to H. 3696 was adopted and incorporated by reference in the following document: (P:\Amend\DKA\3570HTC99).

, and a message was sent to the House accordingly.

Recorded Vote

Senators FAIR and GROOMS desired to be recorded as voting against the adoption of the Report of the Committee of Free Conference on H. 3696, the General Appropriation Bill.

Statement by Senator GROOMS

As of this date, over $737 million has been certified as "new" available revenue and every dime has been spent. It is likely that this year's surplus will rise even higher. Twenty million dollars will be sent back to the taxpayers in the form of automobile tax relief and the rest will be used to expand the size and scope of government. Although there are many worthy projects being funded, too little of this surplus is being returned to the taxpayers. For this and other reasons, I cannot support this budget bill.

H. 3697--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

H. 3697 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1998-99.

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

Senator SETZLER spoke on the report.

H. 3697--Free Conference Powers Granted
Free Conference Committee Appointed

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

Whereupon, the PRESIDENT Pro Tempore appointed Senators McCONNELL, SETZLER and DRUMMOND to the Committee of


Printed Page 3663 . . . . . Tuesday, June 22, 1999

Free Conference on the part of the Senate and a message was sent to the House accordingly.

On motion of Senator SETZLER, the Report of the Committee of Free Conference to H. 3697 was adopted as follows:

H. 3697--Free Conference Report

FREE CONFERENCE REPORT

The General Assembly, Columbia, S.C., June 22, 1999

The COMMITTEE OF FREE CONFERENCE, to whom was referred:

H. 3697 (Word version) -- Ways and Means Committee: A JOINT RESOLUTION TO APPROPRIATE MONIES FROM THE CAPITAL RESERVE FUND FOR FISCAL YEAR 1998-99.

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments:

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

/ SECTION   1.   In accordance with the provisions of Article III, (B) 11-11-320(C) and (D) of the 1976 Code, there is appropriated from the monies available in the Capital Reserve Fund for fiscal year 1998-99 the following amounts:

(1)   Aid to Subdivisions-Local Government Fund     $6,500,000

(2)   Department of Education

School Building Aid           4,968,915

(Funds appropriated for School Building Aid shall be transferred to a special trust fund established by the Comptroller General. Funds appropriated shall be distributed to the school districts of the State for use in accordance with Section 59-21-350 of the Code of Laws of South Carolina, 1976. Funds shall be allocated to eligible school districts on a per pupil basis. The allocation must be based on the 135-day count of average daily membership for the second preceding fiscal year. Funds appropriated for school building aid may be expended by the school district without approval from the State Board of Education. The Department of Education shall require that school districts include in their annual audit a verification of compliance with all applicable state laws associated with the use of these funds.)

(3)   Commission on Higher Education


Printed Page 3664 . . . . . Tuesday, June 22, 1999

Performance Funding                       55,901,106

(Funds appropriated in this joint resolution or any other appropriations bill for education and general expenditures at the public higher education institutions shall be used to implement Act 359 of 1996.)

(4)   Department of Health and Human Services

Phyllis Wheatley Community Center Capital

Campaign-Greenville                               200,000

(5)   Commission for the Blind

(a)   Facilities Upgrade                             38,358

(b)   Building Renovation/Maintenance                 230,000

(6)   Department of Agriculture

(a)   Coker Experimental Feed Farm Preservation         350,000

(b)   Lexington Livestock Arena                       250,000

(7)   Department of Natural Resources

(a)   Law Enforcement

Aircraft Maintenance                               95,000

(b)   MRD: Maintenance and Equipment         530,000

(c)   Lake Ashwood Facility                 100,000

(8)   Department of Commerce

(a)   Advertising                                   1,000,000

(b)   Union County

Airport Improvements                     500,000

(9)   Patriots Point Development Authority

Cold War Submarine Memorial                 250,000

(10)   Department of Corrections

Transportation/Communication Equipment             1,558,050

(11)   Department of Probation, Parole and Pardon Services

Safety Equipment for Agents                   247,907

(12)   Department of Public Safety

(a) Trooper Class, Vehicles and Equipment             5,011,716

(b) DMV Computer System                         9,000,000

(13)   Human Affairs Commission

Computer System - Y2K Compliance         95,697

(14)   Commission on Minority Affairs

(a)   Relocation Funding & Rent Increase               24,788

(b)   Men's Service Centers                         13,891

(15)   State Treasurer

Y2K Compliance                         119,350

(16)   Election Commission

Year 2000 Primary and Runoff                       1,673,440


Printed Page 3665 . . . . . Tuesday, June 22, 1999

(17)   Budget and Control Board

(a)   Division of Operations

Governor's Mansion Renovation                   2,604,224

(b)   Division of Budget and Analyses

Confederate Relic Room

Relocation/Building Renovation             451,880

(18)   State Ethics Commission

Computer System                                 52,000

TOTAL                               91,766,322.

SECTION   2.   The Comptroller General shall post the appropriations contained in this joint resolution in fiscal year 1999-2000. Unexpended funds appropriated pursuant to this joint resolution may be carried forward to succeeding fiscal years and expended for the same purpose.

SECTION   3.   This joint resolution takes effect thirty days after the completion of the 1998-99 fiscal year in accordance with the provisions of Article III, Section 36(B)(3)(a), Constitution of South Carolina, 1895, and Section 11-11-320(D)(1) of the 1976 Code. /

Amend title to conform.

/s/ John Drummond                 /s/ Henry E. Brown, Jr.
/s/ Nikki G. Setzler              /s/ Robert W. Harrell, Jr.
/s/ Glenn F. McConnell            /s/ Merita A. Allison
On Part of the Senate.             On Part of the House.

, and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3358 (Word version) -- Reps. Fleming, Lucas, Taylor, Wilder, Klauber, Harris and Hayes: A BILL TO AMEND TITLE 33, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PARTNERSHIPS, CORPORATIONS, AND ASSOCIATIONS, BY ADDING CHAPTER 36 SO AS TO INCLUDE NONPROFIT CORPORATIONS FINANCED BY BOTH FEDERAL AND STATE LOANS, NOT ONLY BY FEDERAL LOANS, AND TO PROVIDE FOR INCORPORATION, MEMBERSHIP, SALE, CONSOLIDATION, MERGER, AND DISSOLUTION OF CORPORATIONS NOT-FOR-PROFIT; TO AMEND SECTIONS


Printed Page 3666 . . . . . Tuesday, June 22, 1999

33-20-103, AS AMENDED, AND 33-31-1708, RELATING TO EXEMPTION OF CERTAIN NONPROFIT CORPORATIONS FROM THE PROVISIONS OF CHAPTERS 1 THROUGH 20 AND CHAPTER 31 OF TITLE 33, SO AS TO EXEMPT NONPROFIT CORPORATIONS ORGANIZED PURSUANT TO CHAPTER 36; TO REPEAL CHAPTER 35 OF TITLE 33 RELATING TO NONPROFIT CORPORATIONS FINANCED BY FEDERAL LOANS; AND TO AMEND SECTION 6-13-120, RELATING TO DISSOLUTION OF A WATER DISTRICT, SECTION 6-19-10, RELATING TO STATE AUTHORITY TO MAKE GRANTS TO WATER AND SEWER AUTHORITIES OR DISTRICTS, SECTION 12-6-550, RELATING TO CORPORATIONS EXEMPT FROM STATE INCOME TAXES, SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES AND USE TAXES, AND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS FROM PROPERTY TAX, ALL SO AS TO CHANGE CROSS-REFERENCES TO REFLECT REPEAL OF CHAPTER 35 AND ADDITION OF CHAPTER 36.
Very respectfully,
Speaker of the House

H. 3358--CONFERENCE COMMITTEE APPOINTED

H. 3358 (Word version) -- Reps. Fleming, Lucas, Taylor, Wilder, Klauber, Harris and Hayes: A BILL TO AMEND TITLE 33, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PARTNERSHIPS, CORPORATIONS, AND ASSOCIATIONS, BY ADDING CHAPTER 36 SO AS TO INCLUDE NONPROFIT CORPORATIONS FINANCED BY BOTH FEDERAL AND STATE LOANS, NOT ONLY BY FEDERAL LOANS, AND TO PROVIDE FOR INCORPORATION, MEMBERSHIP, SALE, CONSOLIDATION, MERGER, AND DISSOLUTION OF CORPORATIONS NOT-FOR-PROFIT; TO AMEND SECTIONS 33-20-103, AS AMENDED, AND 33-31-1708, RELATING TO EXEMPTION OF CERTAIN NONPROFIT CORPORATIONS FROM THE PROVISIONS OF CHAPTERS 1 THROUGH 20 AND CHAPTER 31 OF TITLE 33, SO AS TO EXEMPT NONPROFIT CORPORATIONS ORGANIZED PURSUANT TO CHAPTER 36; TO REPEAL CHAPTER 35 OF TITLE 33 RELATING TO NONPROFIT CORPORATIONS FINANCED BY FEDERAL LOANS; AND TO AMEND SECTION 6-13-120, RELATING TO DISSOLUTION OF A WATER DISTRICT, SECTION 6-19-10, RELATING TO STATE


Printed Page 3667 . . . . . Tuesday, June 22, 1999

AUTHORITY TO MAKE GRANTS TO WATER AND SEWER AUTHORITIES OR DISTRICTS, SECTION 12-6-550, RELATING TO CORPORATIONS EXEMPT FROM STATE INCOME TAXES, SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES AND USE TAXES, AND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS FROM +
PROPERTY TAX, ALL SO AS TO CHANGE CROSS-REFERENCES TO REFLECT REPEAL OF CHAPTER 35 AND ADDITION OF CHAPTER 36.

On motion of Senator RANKIN, the Senate insisted upon its amendments to H. 3358 and asked for a Committee of Conference.

Whereupon, the PRESIDENT Pro Tempore appointed Senators RANKIN, RUSSELL and JACKSON of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Fleming, Cobb-Hunter and Harrell of the Committee of Conference on the part of the House on:
H. 3358 (Word version) -- Reps. Fleming, Lucas, Taylor, Wilder, Klauber, Harris and Hayes: A BILL TO AMEND TITLE 33, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PARTNERSHIPS, CORPORATIONS, AND ASSOCIATIONS, BY ADDING CHAPTER 36 SO AS TO INCLUDE NONPROFIT CORPORATIONS FINANCED BY BOTH FEDERAL AND STATE LOANS, NOT ONLY BY FEDERAL LOANS, AND TO PROVIDE FOR INCORPORATION, MEMBERSHIP, SALE, CONSOLIDATION, MERGER, AND DISSOLUTION OF CORPORATIONS NOT-FOR-PROFIT; TO AMEND SECTIONS 33-20-103, AS AMENDED, AND 33-31-1708, RELATING TO EXEMPTION OF CERTAIN NONPROFIT CORPORATIONS FROM THE PROVISIONS OF CHAPTERS 1 THROUGH 20 AND CHAPTER 31 OF TITLE 33, SO AS TO EXEMPT NONPROFIT CORPORATIONS ORGANIZED PURSUANT TO CHAPTER 36; TO REPEAL CHAPTER 35 OF TITLE 33 RELATING TO NONPROFIT CORPORATIONS FINANCED BY FEDERAL LOANS; AND TO AMEND SECTION 6-13-120, RELATING TO DISSOLUTION OF A


Printed Page 3668 . . . . . Tuesday, June 22, 1999

WATER DISTRICT, SECTION 6-19-10, RELATING TO STATE AUTHORITY TO MAKE GRANTS TO WATER AND SEWER AUTHORITIES OR DISTRICTS, SECTION 12-6-550, RELATING TO CORPORATIONS EXEMPT FROM STATE INCOME TAXES, SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM SALES AND USE TAXES, AND SECTION 12-37-220, AS AMENDED, RELATING TO EXEMPTIONS FROM PROPERTY TAX, ALL SO AS TO CHANGE CROSS-REFERENCES TO REFLECT REPEAL OF CHAPTER 35 AND ADDITION OF CHAPTER 36.
Very respectfully,
Speaker of the House

Received as information.

H. 3705--CONFERENCE COMMITTEE APPOINTED

H. 3705 (Word version) -- Reps. Breeland, Bailey, G. Brown, J. Brown, T. Brown, Chellis, Clyburn, Dantzler, Gourdine, Govan, Harrison, Hayes, J. Hines, M. Hines, Hinson, Inabinett, Jennings, Law, Lloyd, McGee, Miller, Moody-Lawrence, Neilson, F. Smith, R. Smith, Whipper and Young-Brickell: A BILL TO AMEND SECTION 25-11-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COUNTY VETERANS AFFAIRS OFFICERS, SO AS TO PROVIDE A DEFINITION OF "VETERAN", REQUIRE THE APPOINTMENT OF A VETERAN TO THE POST OF COUNTY VETERANS AFFAIRS OFFICER, PROVIDE EXCEPTIONS, CHANGE PROVISIONS REGARDING THE TERM OF OFFICE, AND PROVIDE FOR A TRAINING COURSE, ACCREDITATION, AND REFRESHER TRAINING.

On motion of Senator HOLLAND, the Senate insisted upon its amendments to H. 3705 and asked for a Committee of Conference.

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


Printed Page 3669 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Breeland, Lourie, and Bales of the Committee of Conference on the part of the House on:
H. 3705 (Word version) -- Reps. Breeland, Bailey, G. Brown, J. Brown, T. Brown, Chellis, Clyburn, Dantzler, Gourdine, Govan, Harrison, Hayes, J. Hines, M. Hines, Hinson, Inabinett, Jennings, Law, Lloyd, McGee, Miller, Moody-Lawrence, Neilson, F. Smith, R. Smith, Whipper and Young-Brickell: A BILL TO AMEND SECTION 25-11-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COUNTY VETERANS AFFAIRS OFFICERS, SO AS TO PROVIDE A DEFINITION OF "VETERAN", REQUIRE THE APPOINTMENT OF A VETERAN TO THE POST OF COUNTY VETERANS AFFAIRS OFFICER, PROVIDE EXCEPTIONS, CHANGE PROVISIONS REGARDING THE TERM OF OFFICE, AND PROVIDE FOR A TRAINING COURSE, ACCREDITATION, AND REFRESHER TRAINING.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
Speaker of the House


Printed Page 3670 . . . . . Tuesday, June 22, 1999

H. 3963--CONFERENCE COMMITTEE APPOINTED

H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.

On motion of Senator RANKIN, the Senate insisted upon its amendments to H. 3963 and asked for a Committee of Conference.

Whereupon, the PRESIDENT Pro Tempore appointed Senators ALEXANDER, RANKIN and COURSON of the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Quinn, Robinson and Limehouse of the Committee of Conference on the part of the House on:
H. 3963 (Word version) -- Rep. Quinn: A BILL TO AMEND SECTION 12-43-217, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SCHEDULE OF COUNTYWIDE REASSESSMENT AND EQUALIZATION PROGRAM, SO AS TO PROVIDE FOR A DELAY IN THE IMPLEMENTATION OF THE REVISED VALUES RESULTING FROM SUCH A PROGRAM IN JURISDICTIONS WHICH CROSS COUNTY LINES EXCEPT WHERE ALL COUNTIES IN WHICH THE JURISDICTIONS LOCATED SIMULTANEOUSLY IMPLEMENT SUCH A PROGRAM.
Very respectfully,
Speaker of the House

Received as information.


Printed Page 3671 . . . . . Tuesday, June 22, 1999

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it refuses to concur in the amendments proposed by the Senate to:
H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.
Very respectfully,
Speaker of the House

H. 3218--CONFERENCE COMMITTEE APPOINTED

H. 3218 (Word version) -- Rep. Miller: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-1-120 SO AS TO MAKE CONFIDENTIAL THE INFORMATION PROVIDED BY A TAXPAYER IN A RETURN, REPORT, OR APPLICATION FILED WITH A COUNTY OR MUNICIAPLITY, TO PROVIDE EXCEPTIONS, AND TO PROVIDE A CRIMINAL PENALTY AND DISMISSAL FROM OFFICE OR POSITION FOR AN EMPLOYEE OR OFFICER WHO VIOLATES THIS REQUIREMENT, AND TO DISQUALIFY FOR FIVE YEARS FROM PUBLIC OFFICE A COUNTY OR MUNICIPAL OFFICER VIOLATING THIS REQUIREMENT; TO AMEND SECTION 12-54-240, AS AMENDED, RELATING TO THE CONFIDENTIALITY REQUIREMENTS OF STATE TAX


Printed Page 3672 . . . . . Tuesday, June 22, 1999

RETURNS, SO AS TO EXTEND THIS REQUIREMENT TO THE ADMISSIONS LICENSE TAX; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO CONFORM THE EXEMPTION TO THE CONFIDENTIALITY PROVISIONS PROVIDED BY THIS ACT.

On motion of Senator McCONNELL, the Senate insisted upon its amendments to H. 3218 and asked for a Committee of Conference.

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

CONCURRENCE

S. 684 (Word version) -- Senators Grooms and Mescher: A BILL TO ENACT THE BERKELEY COUNTY SCHOOL DISTRICT SCHOOL BOND-PROPERTY TAX RELIEF ACT.

The House returned the Bill with amendments.

Senator GROOMS explained the House amendment.

On motion of Senator GROOMS, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

READ THE THIRD TIME
ORDERED ENROLLED FOR RATIFICATION

H. 4087 (Word version) -- Rep. Wilder: A BILL TO AMEND SECTION 7-7-360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN LAURENS COUNTY, SO AS TO REDESIGNATE CERTAIN PRECINCTS, CHANGE A MAP REFERENCE ON WHICH THESE PRECINCTS ARE DELINEATED, CORRECT A REFERENCE TO THE REGISTRATION AND ELECTIONS COMMISSION FOR LAURENS COUNTY, AND PROVIDE THAT POLLING PLACES FOR THESE PRECINCTS MUST BE ESTABLISHED BY THE REGISTRATION AND ELECTIONS COMMISSION FOR


Printed Page 3673 . . . . . Tuesday, June 22, 1999

LAURENS COUNTY WITH THE APPROVAL OF THE LAURENS COUNTY LEGISLATIVE DELEGATION.

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

On motion of Senator BRYAN, the Bill was read the third time and ordered enrolled for Ratification.

READ THE SECOND TIME

H. 4204 (Word version) -- Rep. D. Smith: A BILL TO AMEND ACT 318 OF 1965, AS AMENDED, RELATING TO THE CHEROKEE SPRINGS FIRE DISTRICT IN SPARTANBURG COUNTY, SO AS TO AUTHORIZE THE BOARD OF FIRE CONTROL TO EMPLOY FULL-TIME FIREMEN AND A FIRE CHIEF.

On motion of Senator COURTNEY, the Bill was taken up for immediate consideration.

The Bill was read the second time, passed and ordered to a third reading.

H. 4204--Ordered to a Third Reading

On motion of Senator COURTNEY, H. 4204 was ordered to receive a third reading on Wednesday, June 23, 1999.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
S. 11 (Word version) -- Senators Drummond, Elliott, Leventis, Rankin, Reese and Short: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO ASSESSMENT RATIOS AND CLASSES OF PROPERTY FOR PURPOSES OF THE PROPERTY TAX, SO AS TO CREATE A NEW CLASS OF PERSONAL PROPERTY REQUIRED TO BE TITLED BY A STATE OR FEDERAL AGENCY, NOT INCLUDING UNITS OF MANUFACTURED HOUSING, ASSESSED AT TEN AND ONE-HALF PERCENT OF FAIR MARKET VALUE OR SOME PERCENTAGE LESS THAN TEN AND ONE-HALF PERCENT BUT NOT LESS THAN SIX PERCENT SET BY THE GOVERNING


Printed Page 3674 . . . . . Tuesday, June 22, 1999

BODY OF THE COUNTY IN CONSULTATION WITH ALL PROPERTY TAXING ENTITIES IN THE COUNTY; AND PROPOSING AN AMENDMENT TO SECTION 4, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO REASSESSMENT OF REAL PROPERTY, SO AS TO ALLOW A COUNTY GOVERNING BODY TO LIMIT THE INCREASE IN REAL PROPERTY VALUE TO FIFTEEN PERCENT AS A RESULT OF A COUNTYWIDE REASSESSMENT AND EQUALIZATION AND TO PROVIDE CERTAIN EXCEPTIONS TO THIS LIMITATION.
and has ordered the Joint Resolution Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

RECESS

At 1:02 P.M., on motion of Senator DRUMMOND, the Senate receded from business until 2:30 P.M.

AFTERNOON SESSION

The Senate reassembled at 2:40 P.M., and was called to order by the PRESIDENT.

Call of the Senate

Senator J. VERNE SMITH moved that a Call of the Senate be made. The following Senators answered the Call:

Alexander                 Branton                   Cork
Fair                      Giese                     Gregory
Grooms                    Hayes                     Hutto
Leventis                  Martin                    Matthews
McConnell                 Moore                     Passailaigue
Patterson                 Peeler                    Rankin
Ravenel                   Ryberg                    Saleeby
Setzler                   Short                     Smith, J. Verne

Motion Adopted

On motion of Senator McCONNELL, with unanimous consent, leave was granted for Senators CORK, RANKIN and McCONNELL to


Printed Page 3675 . . . . . Tuesday, June 22, 1999

attend a meeting of a Committee of Conference and be counted in any quorum calls.

A quorum being present, the Senate resumed.

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

H. 3591 (Word version) -- Reps. Koon, R. Smith, Sharpe and Riser: A JOINT RESOLUTION TO PROVIDE FOR A THREE-YEAR PILOT PROGRAM IN ALL GAME ZONES OF THE STATE TO SHORTEN THE HUNTING SEASON FOR RACCOONS TO A PERIOD FROM THANKSGIVING DAY THROUGH MARCH 1; TO ALLOW HUNTING WITH DOGS ONLY FOR THE REMAINDER OF THE YEAR; AND TO IMPOSE A MINIMUM FINE OF FIVE HUNDRED DOLLARS FOR A PERSON VIOLATING THESE PROVISIONS, WITH EIGHTY PERCENT OF THE FINE RETAINED BY THE DEPARTMENT OF NATURAL RESOURCES AND USED FOR LAW ENFORCEMENT AND TWENTY PERCENT OF THE FINE FORWARDED TO THE APPROPRIATE GAME FUND IN THE
COUNTY IN WHICH THE VIOLATION OCCURRED.

Senator GROOMS asked unanimous consent to make a motion to take up the Joint Resolution for immediate consideration.

There was no objection.

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

Amendment No. 1

Senator McGILL proposed the following Amendment No. 1 (3591R002.JYM), which was adopted:

Amend the resolution, as and if amended, by striking all after the enacting words and inserting in lieu thereof the following:

/   SECTION   1.   Notwithstanding any other provision of law, there is established a three-year pilot program regulating the running of raccoons in all game zones in the State. During the three-year duration of this pilot program, it is lawful to run raccoons with dogs at any time during the year.

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

Renumber sections to conform.

Amend title to conform.


Printed Page 3676 . . . . . Tuesday, June 22, 1999

The amendment was adopted.

Amendment No. 2

Senator GROOMS proposed the following Amendment No. 2 (3591R004.LKG), which was adopted:

Amend the resolution, as and if amended, by adding appropriately numbered new SECTIONS to read:

/   SECTION   ___.   Section 50-11-120(A)(9)(e) of the 1976 Code is amended to read:

"(e) raccoon and opossum: August fifteenth through October September fourteenth; March second through April fifteenth without weapons and with dogs only; October September fifteenth through March first fifteenth with weapons and dogs; March sixteenth through May fourteenth with dogs only All hunting of raccoon and opossum in Game Zone 9 must be at night. Night as used in this section is that time between official sunset one day and official sunrise the following day;"

Renumber sections to conform.

Amend title to conform.

The amendment was adopted.

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

RECESS

At 2:47 P.M., on motion of Senator MOORE, the Senate receded from business until 3:30 P.M.

At 3:30 P.M., the Senate resumed.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
H. 3075 (Word version) -- Reps. Limehouse, Edge, Simrill and Emory: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-3-485 SO AS TO REQUIRE THE SHERIFF TO PROVIDE WRITTEN NOTICE TO ALL RESIDENCES WITHIN FOUR BLOCKS OF A REGISTERED SEX OFFENDER OF THE


Printed Page 3677 . . . . . Tuesday, June 22, 1999

OFFENDER'S ADDRESS AND CERTAIN OTHER INFORMATION REGARDING THE OFFENDER; AND TO AMEND SECTION 23-3-490, AS AMENDED, RELATING TO A SHERIFF DISSEMINATING SEX OFFENDER REGISTRY INFORMATION WHEN IT IS BELIEVED SUCH DISSEMINATION WILL DETER CRIME, SO AS TO PROVIDE THAT THE FOUR-BLOCK RADIUS NOTIFICATION DOES NOT RESTRICT THE SHERIFF FROM BROADER DISSEMINATION OF INFORMATION WHEN NECESSARY.
and has ordered the Bill Enrolled for Ratification.

Very respectfully,
Speaker of the House

Received as information.

REPORT OF COMMITTEE OF CONFERENCE CARRIED OVER

H. 3002 (Word version) -- Reps. Wilkins, Hawkins, Altman, J. Brown, Loftis, Leach, Kelley, Harvin, Walker, D. Smith, Campsen, Stille, Davenport, Rice, Barrett, Cotty, Lanford, Wilder, Sharpe, Delleney, Littlejohn, Tripp, Witherspoon, Harris, Carnell, Kirsh, Vaughn, Webb, McKay, Riser, Sandifer, Cato, Simrill, Allison, Harrison, Barfield, McGee, Meacham, Hamilton, Koon, Fleming, Martin, Mason, Gilham, Emory, McCraw, Edge, Robinson and W. McLeod: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-19-170, ENACTING THE GAMBLING CRUISE PROHIBITION ACT, SO AS TO PROHIBIT GAMBLING ON A CRAFT THAT EMBARKS AND DISEMBARKS FROM ANY POINT IN THIS STATE AND TO MAKE THIS PROHIBITION APPLY WHETHER OR NOT THE GAMBLING ACTIVITIES ARE CONDUCTED WITHIN THE WATERS OF THIS STATE, AND TO PROVIDE A PENALTY.

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

Point of Quorum

At 3:40 P.M., Senator MOORE made the point that a quorum was not present. It was ascertained that a quorum was not present.


Printed Page 3678 . . . . . Tuesday, June 22, 1999

Call of the Senate

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

Alexander                 Anderson                  Bauer
Branton                   Bryan                     Courson
Drummond                  Elliott                   Fair
Ford                      Giese                     Glover
Gregory                   Grooms                    Hayes
Holland                   Hutto                     Jackson
Leventis                  Martin                    McConnell
McGill                    Moore                     O'Dell
Passailaigue              Patterson                 Peeler
Rankin                    Ravenel                   Reese
Russell                   Ryberg                    Saleeby
Setzler                   Short                     Smith, J. Verne
Waldrep                   Washington

A quorum being present, the Senate resumed.

Motion Adopted

Senator McCONNELL asked unanimous consent to make a motion that Senators HUTTO and McCONNELL be granted leave to attend a meeting of a Committee of Conference and be counted in any quorum calls.

There was no objection.

Senator MOORE explained the report.

Senator PASSAILAIGUE spoke on the report.

Senator HAYES spoke on the report.

Remarks by Senator HAYES

Mr. PRESIDENT, members of the Senate, I'll be very brief because I think that the other two conferees have done a good job explaining what's in this Bill.

I just wanted to share with the members of the Senate my thinking and why I believe this Bill is better than current law dealing with video poker. Really, the biggest issue and the driving force behind all that we've done here deals with the one


Printed Page 3679 . . . . . Tuesday, June 22, 1999

regulation that's gotten the most publicity, and probably rightfully so, and that's the cap.

You know, we get a lot of e-mail, a lot of letters saying, "Don't change the cap. Don't do this with the cap." I think they're talking about the $125 per day per location cap that the federal court is imposing on certain defendants in this State. There's no question that that cap is having an effect and has been a driving force on pushing this legislation. But, I will point out to the Senate that that cap is not necessarily set in stone. At this point, it's not being applied uniformly throughout the State of South Carolina. It may be at some point in the future but that's one of those "maybe's" that we don't know about. It might be overturned by the Fourth Circuit Court of Appeals. That's another one of those "maybe's" that we don't know much about.

But, assume that it's applied statewide and assume that it's not overturned by the Fourth Circuit, then we're still faced with the problem that video poker is still here in this State. It will be weaker. It will be poorer, but it will still be here and we'll still have the problem of us not having a tax on it other than the registration fee. And we still don't have any background checks and we still don't have the tough penalties and the other regulations that are needed - that, versus what we have in this Bill.

We have in this Bill what I would call my second best option. The first best option is for the General Assembly to ban video poker, but we don't have the votes to do that. But, the second best option is at least to give the voters of this State a chance to ban video poker. So, we get a November 1999 referendum. A referendum that will occur before we start spending any of the money. A referendum on video poker that will decide this issue.

Second, after that issue is decided, if the voters of this State want to have video poker, then we will have established a tax, which, as has been pointed out, when you look at the tax and the registration fees and the other fees, together gets to about 34% of the net, which is pretty strong, when you look at it nationwide. We'll also have a cap which is $500 per cashout, which will be the strongest of any state that allows video poker.


Printed Page 3680 . . . . . Tuesday, June 22, 1999

Now, it's not a $125 per day per location, which I would prefer. But, nevertheless, we give the people of South Carolina a chance to vote on this issue in November and then if they vote to keep it, we have the most conservative cap of any state in the nation that allows video poker. So, we have the tax issue decided; we have the tougher penalties; we have the background checks. Having weighed all of these factors. I believe that what we have in this Bill is better than the current situation with the federal enforcement of the $125 per cap on some people which may be overturned by the Fourth Circuit.

Now, the issue has come up as to whether or not this November referendum is constitutional and that is a valid question. Many states have had this issue go up through the courts and the courts have said, "Well, unless it's specifically allowed in the Constitution, a legislature cannot delegate its responsibility to the voters by way of a referendum." We put a statement of intent in this Bill that we believe it is constitutional, and we state why. Our lawyers have looked at it and they think its constitutional, but it's still a good question. Some of the lawyers at the law school and others have looked at it. It's a tough question as to whether it's constitutional for this General Assembly to have a binding referendum to the voters.

But, what we've done in this Bill is to shift the risk from those of us who would like to ban video poker to the video poker industry. What we say in this Bill is that video poker is banned on July 1, 2000. But, if the people by way of referendum vote to keep it in November 1999, then that ban is of no effect and we have the various regulations, etc. starting on December 1st.

And, what we've been told by the lawyers who've looked at it is that, if the industry challenges the referendum and wins, they're still banned. So, basically, when I say the risk is shifted over to the industry, I suppose the industry is taking the risk that, if our side loses the vote in November and then we challenge the referendum, we will still have the ban. But, I think as a practical matter, this General Assembly is not going to go against what the voters say in November. The problem on litigation has generally been from the video poker side challenging our laws. So, I think that's a reasonable risk for them to take.


Printed Page 3681 . . . . . Tuesday, June 22, 1999

Although we insisted on shifting that burden to the industry, I can't stand here and tell this Senate that this is guaranteed to be constitutional. They may challenge it. And, we may lose. And, we may lose the ban. But, I think as a practical matter, if the people of this State vote in a referendum statewide to ban video poker, we will come back in January and do whatever is needed to ratify what the people of this State have voted to do in November. And, I think the other conferees would support this position.
Sen. PASSAILAIGUE:   I have a question. Do you recollect that the three of us agreed, including myself, to even file a Bill right now saying whatever the results of the referendum, we'd abide by it? If it was a ban, I'd vote to ban it from the first day of the new session. That's how strong we were on it.
Sen. WALDREP:   Senator, is there anything in the Bill about the setting of these machines about what the payout percentages would be?
Sen. HAYES:     Yes, the Bill requires that the theoretical payout, or payback they call it, the theoretical payback is between 90 and 99 percent.
Sen. WALDREP:   Do you know what they are now?
Sen. HAYES:     I think the minimum is 80 percent now. I think it goes to 90 percent. So, it makes it more likely...
Sen. WALDREP:   That you can win?
Sen. HAYES:     ... that you can win under the new regulations.
Sen. WALDREP:   Okay. Thank you.
Sen. HAYES:     Mr. PRESIDENT, that's all I have to say. Thank you.

Sen. BRANTON:   Senator, how about distinguish for me, if you will, the difference between theoretical payback and an actual payback.

Sen. HAYES:     Well, theoretical payback means that over a period of play, that you, say you play a hundred games, you'd have a theoretical payback that you'd win 90 percent of those games. Now, you won't necessarily because you may keep playing and eventually lose all your money because even with the 90 percent payback, if you play long enough, you know, if you


Printed Page 3682 . . . . . Tuesday, June 22, 1999

keep losing 10 percent over time, you may not get 90 percent back on every dollar you put in. That's why it's theoretical. But, nevertheless, that just establishes a theory, that over a period, over a series of games, over a hundred games, that 90 of those games you would win.

Sen. MOORE:     There have been several members who have expressed an opportunity or wished an opportunity to continue to read, while others are ready to vote, I would move to carry over the matter until tomorrow morning.

On motion of Senator MOORE, the Report of the Committee of Conference was carried over.

H. 3759--REPORT OF THE
COMMITTEE OF CONFERENCE ADOPTED

H. 3759 (Word version) -- Reps. Cobb-Hunter, Wilkins, Seithel, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Martin, Mason, McCraw, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Sharpe, Simrill, D. Smith, F. Smith, R. Smith, Stille, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A BILL TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM.

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

Senator McCONNELL spoke on the report.


Printed Page 3683 . . . . . Tuesday, June 22, 1999

On motion of Senator McCONNELL, the Report of the Committee of Conference to H. 3759 was adopted as follows:

H. 3759 -- CONFERENCE REPORT
The General Assembly, Columbia, S.C., June 16, 1999

The COMMITTEE OF CONFERENCE, to whom was referred:
H. 3759 (Word version) -- Reps. Cobb-Hunter, Wilkins, Seithel, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Martin, Mason, McCraw, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Sharpe, Simrill, D. Smith, F. Smith, R. Smith, Stille, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A BILL TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM.
Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 6/2/99--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:
/   SECTION   1.   Title 15, Chapter 3 of the 1976 Code is amended by adding:

"Article 2
Year 2000 Commerce Protection Act

Section 15-3-210.     This article may be cited as the 'Year 2000 Commerce Protection Act'.


Printed Page 3684 . . . . . Tuesday, June 22, 1999

Section 15-3-220.     It is the intent of the South Carolina General Assembly that this article provide persons engaged in commerce in South Carolina, who suffer economic loss as a result of a Year 2000 problem, the opportunity to recover and be made whole for that economic loss while providing persons responsible for the Year 2000 problem a safe harbor from unlimited liability. This article is intended to be in addition to and supplement those protections offered by the federal Year 2000 Information and Readiness Disclosure Act.

Section 15-3-230.     As used in this article:

(1)   'Claim' means any cause of action in state courts, federal court, or arbitration related to a Year 2000 problem.

(2)   'Contract' means any agreement for the delivery of goods or services in South Carolina, any agreement entered into in South Carolina for the delivery of goods or services, or any other agreement governed by the South Carolina Uniform Commercial Code.

(3)   'Economic loss' means any damage for breach of contract or breach of warranty recognized under South Carolina law.

(4)   'Person' means any individual, corporation, partnership, or other private entity capable under South Carolina law of entering into a contract as defined in item (2) of this section.

(5)   'Year 2000 problem' means any computing, physical, enterprise, or distribution system complication, corruption, or failure that has occurred or may occur as a result of computer hardware systems, software programs, semiconductors, or other digitally operated systems inability to process properly the change of the year from 1999 to 2000 or the leap year change. This complication, corruption, or failure may result from, but is not limited to, the common computer programming practice of using a two-digit field to represent a year, which can result in erroneous date calculations; an ambiguous interpretation of the term or field '00'; the failure to recognize 2000 as a leap year; algorithms that use '99' or '00' to activate another function; or the use of any other applications, software, or hardware that are date-sensitive.

Section 15-3-240.     (A)   A person in privity of contract with another person may recover only economic loss as well as reasonable attorney's fees and costs on any claims against the other as a result of a Year 2000 problem, except that recovery based upon any of the following claims is not subject to this limitation:

(1)   the claim is for personal injury to an individual; or


Printed Page 3685 . . . . . Tuesday, June 22, 1999

(2)   the person defending the claim has acted with fraudulent intent or reckless disregard for the truth in the formation of the contract; or

(3)   a fiduciary duty recognized by law is owed by the person defending the claim to the person bringing the claim.

(B)   No claim may be made under Title 39, Chapter 5, South Carolina Unfair Trade Practices Act.

(C)   Any person who successfully defends a claim based on a Year 2000 problem is entitled to recover reasonable costs and attorney's fees from the person bringing the claim if the court determines that the claim is frivolous. In determining whether or not a claim is frivolous, the court shall rely on the standards of the federal courts for the imposition of those sanctions pursuant to Rule 11 of the Federal Rules of Civil Procedure as those sanctions exist as of the date of the enactment of this article.

Section 15-3-250.     This article does not affect nor apply to any claim pending before approval of the act by the Governor.

Section 15-3-255.   This article may not be construed to affect, abrogate, amend, or alter any enumerated rights, limitation of remedies, exclusion of damages, or any other provision of a contract.

Section 15-3-260.     If any section or portion of any section of this article is held to be unenforceable or invalid by a court of competent jurisdiction, the validity and enforceability of the remaining sections or portion thereof shall not be affected by that action."

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

Amend title to read:
/ A BILL TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM. /

/s/ Glenn F. McConnell            /s/ William F. Cotty
/s/ C. Tyrone Courtney            /s/ J. Cordell Maddox
/s/ Robert Ford                   /s/ James G. McGee, III
On Part of the Senate.              On Part of the House.

, and a message was sent to the House accordingly.


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Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:
H. 3759 (Word version) -- Reps. Cobb-Hunter, Wilkins, Seithel, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, Campsen, Canty, Carnell, Cato, Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Martin, Mason, McCraw, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Sharpe, Simrill, D. Smith, F. Smith, R. Smith, Stille, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A BILL TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., June 22, 1999
Mr. President and Senators:

The House respectfully informs your Honorable Body that the Report of the Committee of Conference having been adopted by both Houses, and this Bill having been read three times in each House, it was ordered that the title thereof be changed to that of an Act, and that it be enrolled for ratification:
H. 3759 (Word version) -- Reps. Cobb-Hunter, Wilkins, Seithel, Allison, Altman, Askins, Bailey, Bales, Barfield, Barrett, Battle, Beck, Bowers, Breeland, G. Brown, H. Brown, J. Brown, Campsen, Canty, Carnell,


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Cato, Chellis, Clyburn, Cooper, Cotty, Dantzler, Davenport, Edge, Emory, Fleming, Gamble, Gilham, Gourdine, Govan, Hamilton, Harrell, Harris, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Mack, Martin, Mason, McCraw, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, Neal, Neilson, Ott, Parks, Phillips, Pinckney, Quinn, Rhoad, Rice, Riser, Robinson, Rodgers, Sandifer, Scott, Sharpe, Simrill, D. Smith, F. Smith, R. Smith, Stille, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Wilder, Wilkes, Witherspoon, Woodrum and Young-Brickell: A BILL TO AMEND TITLE 15, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON CIVIL ACTIONS, BY ADDING ARTICLE 2 SO AS TO ENACT THE YEAR 2000 COMMERCE PROTECTION ACT IN ORDER TO PROVIDE FOR THE RECOVERY OF A CLAIM FOR A PERSON WHO SUFFERS AN ECONOMIC LOSS AS A RESULT OF THE YEAR 2000 PROBLEM.
Very respectfully,
Speaker of the House

Received as information.

AMENDED, READ THE THIRD TIME
RETURNED TO THE HOUSE

H. 4196 (Word version) -- Reps. Witherspoon, Barfield, Edge, Keegan, Kelley and Miller: A BILL TO AMEND ACT 612 OF 1980, RELATING TO THE COMPENSATION OF MEMBERS OF THE HORRY COUNTY BOARD OF EDUCATION, SO AS TO INCREASE THE ANNUAL COMPENSATION OF MEMBERS OF THE BOARD AND PROVIDE WHEN THE INCREASE IS EFFECTIVE.

Senator RANKIN 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.

Amendment No. 1

Senator ELLIOTT proposed the following Amendment No. 1 (4196R002.DE), which was adopted:


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Amend the bill, as and if amended, by striking SECTION 1 in its entirety and inserting in lieu thereof the following:

/   SECTION   1.   Section 1 of Act 612 of 1980 is amended to read:

"Section 1.   Effective July 1, 1980, and notwithstanding the provisions of the section designated 21-3053 in the 1962 Code, the annual compensation for members of the Notwithstanding any other provision of law, the Horry County Board of Education may, by majority vote of the board, establish the annual compensation of its members and chairman as provided for in this section shall be eighteen hundred dollars and for the chairman of the board, twenty-four hundred. Compensation and expenses for board members and the chairman must be included as a specific provision in the budget. The salary provision may only become effective after receiving two public readings that must be at least twenty-one days apart."       /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.

The amendment was adopted.

Amendment No. 2

Senator RANKIN proposed the following Amendment No. 2 (4196R004.LAR), which was adopted:

Amend the bill, as and if amended, page 1, by striking SECTION 2 in its entirety and inserting in lieu thereof the following: /

SECTION   2.   For any school within the Horry County School System, during the sport season for soccer, a student, while a member of a school squad or team engaged in interscholastic soccer, may become a member of or participate in an organized soccer team which is independent of the school's control as long as the participation does not interfere with the scheduled week day league games of the school squad or team. A school or student within the Horry County School System is not ineligible for participation in interscholastic soccer because of participation by a student as a member of an organized soccer team, which is independent of the school's control, during the interscholastic soccer season.     /

Renumber sections to conform.

Amend title to conform.

Senator RANKIN explained the amendment.


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The amendment was adopted.

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

RECALLED

S. 678 (Word version) -- Senator Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 6-9-140 SO AS TO PROHIBIT THE CONSTRUCTION OF A COMMERCIAL OR RESIDENTIAL BUILDING OR STRUCTURE USING SYNTHETIC STUCCO FOR AN EXTERIOR SURFACE.

Senator REESE asked unanimous consent to make a motion to recall the Bill from the Committee on Labor, Commerce and Industry.

There was no objection.

The Bill was recalled and ordered placed on the Calendar.

RECALLED AND ADOPTED

H. 3647 (Word version) -- Reps. Miller, Rodgers, Chellis, Keegan, Altman, Kennedy, Limehouse, Gilham, Barfield, Witherspoon, Dantzler, Bowers, Kelley, Bailey and Young-Brickell: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES, THE U.S. ARMY CORPS OF ENGINEERS, AND THE FEDERAL EMERGENCY MANAGEMENT AGENCY TO REVISIT THE CURRENT REGULATIONS TO ALLOW FOR THE REINSTATEMENT OF PREVIOUSLY APPROVED EMERGENCY SHELTERS IN THE COASTAL COUNTIES AND TO APPROVE SHELTERS RECOMMENDED BY LOCAL CITY AND COUNTY GOVERNMENTS OF GEORGETOWN, HORRY, CHARLESTON, BEAUFORT, AND COLLETON.

Senator COURSON asked unanimous consent to make a motion to recall the Concurrent Resolution from the Committee on Judiciary.

There was no objection.

On motion of Senator COURSON, the Concurrent Resolution was adopted, returned to the House.

HOUSE CONCURRENCE

S. 872 (Word version) -- Senator Bauer: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION


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PLACE SIGNS THAT CONTAIN THE CAPTION "HISTORIC DOWNTOWN NEWBERRY" AND THAT INDICATE THE DIRECTION TO THE HISTORIC AREA ON INTERSTATE 26 AT EXITS 72, 74, AND 76.

Returned with concurrence.

Received as information.

HOUSE CONCURRENCE

S. 902 (Word version) -- Senators Russell, Courtney, Reese: A CONCURRENT RESOLUTION TO RECOGNIZE WILSON CASEY OF SPARTANBURG, HOLDER OF THE GUINNESS WORLD RECORDS FOR THE LONGEST RADIO BROADCAST BY AN INDIVIDUAL AND THE LONGEST TRIVIA BROADCAST, AND TO CONGRATULATE HIM AFTER FINISHING A MARATHON THIRTY-HOUR BROADCAST AT SPARTANBURG RADIO STATION WKDY-AM AND BECOMING THE ONLY SOUTH CAROLINIAN TO APPEAR IN THE GUINNESS BOOK OF RECORDS.

Returned with concurrence.

Received as information.

RECESS

At 4:55 P.M., on motion of Senator SETZLER, the Senate receded from business until 5:05 P.M.

At 5:12 P.M., the Senate resumed.

MOTION ADOPTED

On motion of Senator BAUER, with unanimous consent, the Senate stood adjourned out of respect to the memory of Bessie Hare Beam, beloved mother of Wayne Beam, former Executive Director of the Coastal Council.

ADJOURNMENT

At 5:13 P.M., on motion of Senator DRUMMOND, the Senate adjourned to meet tomorrow at 10:00 A.M.

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