Indicates Matter Stricken
Indicates New Matter
The House assembled at 12:00 noon.
Deliberations were opened with prayer by Rep. COBB-HUNTER as follows:
God of our fathers and our God today, give us the ability to fulfill our high calling. Make us to cherish all that is good in our heritage and welcome all that is worthy in innovation. Help us to treasure the wisdom of the past but also be ready for new revelations for the future. Give to each of us resources sufficient for what needs to be done. Grant to each one the individuality that is creative, the discipline which sustains, the diversity which enriches and the unity of purpose that moves forward Your Kingdom on earth. To You, Lord, we give our praise and thanksgiving. Amen.
Pursuant to Rule 6.3, the House of Representatives was led in the Pledge of Allegiance to the Flag of the United States of America by the SPEAKER.
After corrections to the Journal of the proceedings of Friday, the SPEAKER ordered it confirmed.
Rep. J. M. NEAL moved that when the House adjourns, it adjourn in memory of former Representative Garrett Judson Mobley of Kershaw, which was agreed to.
The House stood in silent prayer for Representative Moody-Lawrence who is in the hospital due to a severe allergic reaction to medication.
The following was received:
TO: The Clerk of the Senate
The Clerk of the House
FROM: Glenn F. McConnell, Chairman
Judicial Merit Selection Commission
DATE: May 8, 2001
In compliance with the provisions of Act No. 119, 1975 S.C. Acts 122, it is respectfully requested that the following information be printed in the Journals of the Senate and the House.
Respectfully submitted,
Senator Glenn F. McConnell, Chairman
Representative F.G. Delleney, Jr., Vice Chairman
Richard S. Fisher, Esquire
John P. Freeman, Esquire
Representative James G. McGee III
Mrs. Amy Johnson McLester
Senator Thomas L. Moore
Senator James H. Ritchie, Jr.
Judge Curtis G. Shaw
Representative Fletcher N. Smith, Jr.
Date and Time
Final Report Issued: Thursday, May 10, 2001, at 10:00 a.m.
Judicial candidates are not free to seek
or accept commitments until
Thursday, May 10, 2001
at 10:00 a.m.
The Judicial Merit Selection Commission is charged by law to consider the qualifications of candidates for the judiciary. This report details the reasons for the Commission's findings, as well as each candidate's qualifications as they relate to the Commission's evaluative criteria. The Commission operates under the law which went into effect July 1, 1997, and which dramatically changed the powers and duties of the Commission. One component of this law is that the Commission's finding of "qualified" or "not qualified" is binding on the General Assembly. Furthermore, the Commission is required to submit no more than three names for any particular judicial race; therefore, for seats in which more than three candidates seek office, the Commission was required to pare the number of candidates presented for consideration by the General Assembly. The Commission is also cognizant of the need for members of the General Assembly to be able to differentiate between candidates and, therefore, has attempted to provide as detailed a report as possible.
The Judicial Merit Selection Commission is composed of ten members, four of whom are non-legislators. The Commission has continued the more in-depth screening format started in 1997. The Commission has asked candidates their views on issues peculiar to service on the court to which they seek election. These questions were posed in an effort to provide members of the General Assembly with more information about candidates and the candidates' thought processes on issues relevant to their candidacies. The Commission has also engaged in a more probing inquiry into the depth of a candidate's experience in areas of practice that are germane to the office he or she is seeking. The Commission feels that candidates should have familiarity with the subject matter of the courts for which they offer, and feels that candidates' responses should indicate their familiarity with most major areas of the law with which they will be confronted.
The Commission also used the Citizens Committees on Judicial Qualifications as an adjunct of the Commission. Since the decisions of our judiciary play such an important role in people's personal and professional lives, the Commission believes that all South Carolinians should have a voice in the selection of the state's judges. It was this desire for broad-based grassroots participation that led the Commission to create the Citizens Committees on Judicial Qualifications. These committees, composed of people from a broad range of experience (doctors, lawyers, teachers, businessmen, and advocates for varied organizations; members of these committees are also diverse in their
While the law provides that the Commission must make findings as to qualifications, the Commission views its role as also including an obligation to consider candidates in the context of the judiciary on which they would serve and, to some degree, govern. To that end, the Commission inquires as to the quality of justice delivered in the courtrooms of South Carolina and seeks to impart, through its questioning, the view of the public as to matters of legal knowledge and ability, judicial temperament, and the absoluteness of the Judicial Canons of Conduct as to recusal for conflict of interest, prohibition of ex parte communication, and the disallowance of the acceptance of
(1) Constitutional Qualifications:
Based on the Commission's investigation, Mr. Reuben Goude meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Mr. Goude was born on April 17, 1950. He is 50 years old and a resident of Hemingway, South Carolina. Mr. Goude provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1979.
(2) Ethical Fitness:
The Commission's investigation did not reveal evidence of unethical conduct by Mr. Goude.
Mr. Goude demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Mr. Goude reported that he has spent $1,505.00 in campaign expenditures.
Mr. Goude testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Mr. Goude testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
(1) Constitutional Qualifications:
Based on the Commission's investigation, Judge Jefferson meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Judge Jefferson was born on October 13, 1963. She is 37 years old and a resident of Charleston, South Carolina. Judge Jefferson provided in
(1) Constitutional Qualifications:
Based on the Commission's investigation, Mr. John meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Mr. John was born on December 1, 1953. He is 47 years old and a resident of North Myrtle Beach, South Carolina. Mr. John provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1978.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Mr. John.
Mr. John demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Mr. John reported that he has not made any campaign expenditures in seeking this office.
Mr. John testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Mr. John testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
(3) Professional and Academic Ability:
The Commission found Mr. John to be intelligent and knowledgeable. His performance on the Commission's practice and procedure questions met expectations.
Mr. John described his continuing legal or judicial education during the past five years as follows:
"(a) 2000 - 43.75 legal ed. hours and 6.0 ethics hours;
(b) 1999 - 45.02 legal ed. hours and 4.83 ethics hours;
Mr. John appears to be physically capable of performing the duties of the office he seeks.
(7) Mental Stability:
Mr. John appears to be mentally capable of performing the duties of the office he seeks.
(8) Experience:
Mr. John was admitted to the South Carolina Bar in 1978.
Mr. John described his legal experience as follows:
"Law Clerk to the Honorable Sidney T. Floyd, Resident Judge, Fifteenth Judicial Circuit, 1978 - 1980;
Private Trial Practice, 1981 - Present. Opened solo practice in N. Myrtle Beach, S.C. in 1986, having an active trial practice in all of the State Courts. In Civil Court, cases ranging from contracts and automobile accidents to multi-million dollar construction cases; Criminal Court, cases ranging from traffic offenses to court appointed defense in death penalty cases; Family Court, cases from uncontested divorces to all manner of contested family disputes;
Court Appointed Special Referee in the Circuit Court, appointed by Judges Sidney T. Floyd and David H. Maring, Sr., in over Fifty (50) cases;
As the title indicates, this was an extremely complex construction case. The main action by the Association dealt with the damages to the common elements at the Mariners Pointe Condominium and Marina project. The construction issues involved roofing damage, settlement of the marsh in areas near the buildings, pool defects, marina design defects, porch and deck defects, fire wall defects, spoilage basin design defects, ventilation defects, irrigation system defects, parking lot design defects, sighting defects, and a host of other general construction problems, many of which violated the standard building code. The class action dealt with interior unit damages suffered by the individual owners.
I developed the case from its initial interviews through development of all of the necessary experts, numerous depositions and production of documents, and upon the eve of trial, through the use of mediation, this case was eventually settled to the satisfaction of the Plaintiffs in the multi-million dollar range.
(b) State v. Titus Huggins, 1996. This was a death penalty case. I was court appointed with a public defender for Horry County to provide the defense. There was an initial trial of the first phase, during which Mr. Huggins was convicted armed robbery and murder with a pistol. The Defense presented Motions to the Trial Judge regarding juror improprieties, which led the Court to declare a mistrial. There was a retrial in which I again participated as one (1) of the two (2) defense counsels for Mr. Huggins, in which Mr. Huggins was again convicted of armed robbery and murder of a shopkeeper, and subsequently received the death penalty. This matter is currently on appeal.
(c) North Carolina Federal Savings and Loan Association v. DAV Corporation, et al., 1986 - 1993. I was retained to file a mortgage foreclosure action on certain ocean view property, upon which there had been a failed condominium project. Before trial, due to motions for a jury trial, made by one (1) of the Defendants on certain of his counter-claims, this matter was the subject of an appeal to the South Carolina Court of Appeals and thereafter, Certiorari was granted and
1 Mr. Maddox will not meet the qualifications prescribed by law for judicial service as a Circuit Court judge unless the elections are held on or after November 7, 2001. According to S.C. Code Ann. § 2-19-70, "(A) No member of the General Assembly may be elected to a judicial office while he is serving in the General Assembly nor shall that person be elected to a judicial office for a period of one year after he either: (1) ceases to be a member of the General Assembly; or (2) fails to file for election to the General Assembly in accordance with Section 7-11-15."
(1) Constitutional Qualifications:
Mr. Maddox was born on June 14, 1958. He is 42 years old and a resident of Anderson, South Carolina. Mr. Maddox provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1983.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Mr. Maddox.
Additionally, I have tried a medical malpractice case in Richland County involving obstetrical malpractice. The case was tried for approximately eight days and involved fairly complicated issues of causation.
c) I was co-counsel with my law partner in a dental malpractice case tried for three days in Anderson County involving the issue of malpractice resulting from a broken jaw during a dental procedure.
d) Currently I am involved as co-counsel in a nationwide class action filed in Federal Court in Anderson County. This case involves the issue of fraudulent interest computation by a lending institution. The case has been filed and the nationwide class has been certified. The trial is expected in October 2001.
e) I have been associated with co-counsel in another Federal Class Action case involving the allegations of fraudulent recordation of credit information. That case should be tried some time in the late fall of 2001.
f) I have, in addition to the above, handled numerous automobile accident cases that have settled prior to trial.
g) Currently I am representing a civil defendant in a breach of contract action that has been set for trial in June of 2001.
h) I have also represented several physicians as personal attorney in malpractice cases and in other general litigation matters.
i) I am currently involved innumerous litigation matters including a case based upon negligent construction of a subdivision and the subsequent denial of a payment bond. The complaint has been filed; the trial has not been set.
j) I am also currently representing a large homeowners' association in a lawsuit against adjoining homeowners regarding the application of restrictions to the adjoining landowner's property. The case was tried and a verdict was granted to my clients. The case involved the
The Commission believes that Mr. Maddox's temperament would be excellent.
(10) Miscellaneous:
The Upstate Citizens Committee found Mr. Maddox to be "qualified pursuant to the evaluative criteria established by the Commission."
Mr. Maddox is married to Victoria Tobin Maddox. He has three children: Jesse Cordell Maddox, III, age 15; Brett Garland Maddox, age 12; and Jacob Hunter Maddox, age 6.
Mr. Maddox reported that he was a member of the following bar associations and professional associations:
"(a) Anderson County Bar Association;
(b) South Carolina Bar Association;
(c) South Carolina Trial Lawyer's Association;
(d) American Trial Lawyer's Association;
(e) American Bar Association."
Mr. Maddox provided that he was a member of the following civic, charitable, education, social, or fraternal organizations:
"(a) Rotary Club of Anderson;
(b) YMCA - member of Board of Directors from 1984 to present; currently ex-officio member of the Board.
(c) Past and Present member of S.C. Bar House of Delegates
(d) Hospice of the Upstate."
(1) Constitutional Qualifications:
Based on the Commission's investigation, Judge Nicholson meets the qualifications prescribed by law for judicial service as Circuit Court judge.
Judge Nicholson was born on September 30, 1942. He is 58 years old and a resident of Anderson, South Carolina. Judge Nicholson provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1973.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Judge Nicholson.
Judge Nicholson demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Judge Nicholson reported that he has not made any campaign expenditures.
Judge Nicholson testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Judge Nicholson testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
(3) Professional and Academic Ability:
The Commission found Judge Nicholson to be intelligent and knowledgeable. His performance on the Commission's practice and procedure questions met expectations.
Judge Nicholson described his continuing legal or judicial education during the past five years as follows:
"(a) Seminars with SC Bar;
(b) Circuit Court Judge's Associate Meeting & S.C. Judicial Conference;
(1) Constitutional Qualifications:
Based on the Commission's investigation, Judge Rivers meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Judge Rivers was born on October 6, 1947. He is 53 years old and a resident of Mt. Pleasant, South Carolina. Judge Rivers provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1972.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Judge Rivers.
Judge Rivers reported that his Martindale-Hubbell rating is "BV."
(6) Physical Health:
Judge Rivers appears to be physically capable of performing the duties of the office he seeks.
(7) Mental Stability:
Judge Rivers appears to be mentally capable of performing the duties of the office he seeks.
(8) Experience:
Judge Rivers was admitted to the South Carolina Bar in 1972.
Judge Rivers described his legal experience as follows:
"1972-1973-General practice of law as sole practitioner, with emphasis on plaintiff's litigation, real estate, domestic relations, and criminal defense.
1973-1974-Associate with Young, Clement & Rivers (now Young, Clement, Rivers & Tisdale), Charleston, S.C., in litigation department, handling mainly insurance defense.
1974-1975-General practice of law as sole practitioner, with emphasis on plaintiff's litigation, real estate, domestic relations, and criminal defense.
1975-1978-Partner in Tillman & Rivers. General practice.
1978-1993-Served as Judge of the Family Court of the Ninth Judicial Circuit, Seat 1, resident judge, Charleston County.
1993-2000-General practice of law as sole practitioner, with emphasis on plaintiff's litigation and domestic relations.
2000-2001-Partner in Rivers & Grogan, LLP. Strong emphasis on domestic relations and plaintiff's litigation.
(1) Constitutional Qualifications:
Based on the Commission's investigation, Judge Turner meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Judge Turner was born on July 28, 1957. He is 43 years old and a resident of Charleston, South Carolina. Judge Turner provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1991.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Judge Turner.
Judge Turner demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Judge Turner reported that he has made approximately $40.00 in campaign expenditures for postage.
Judge Turner testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Judge Turner testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
"The New Magistrate Court Rules, The Bar Tab (1998)."
(4) Character:
The Commission's investigation of Judge Turner did not reveal evidence of any founded grievances or criminal allegations made against him. The Commission's investigation of Judge Turner did not indicate any evidence of a troubled financial status. Judge Turner has handled his financial affairs responsibly.
"I do not belong to these organizations because I have been a judicial officer for the past five years to avoid any potential conflict."
(1) Constitutional Qualifications:
Based on the Commission's investigation, Mr. Whiten meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Mr. Whiten was born on September 17, 1944. He is 56 years old and a resident of Anderson, South Carolina. Mr. Whiten provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1969.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Mr. Whiten.
Mr. Whiten demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Mr. Whiten reported that he has not made any campaign expenditures.
Mr. Whiten testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Mr. Whiten testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
(3) Professional and Academic Ability:
12/06/96 Family Ct. Bench/Bar Updates 6.0 hrs.
(b) 11/14/97 Criminal Practice in SC 6.5 hrs.
11/21/97 Breaking the Ties that Bind (Effective Intervention Strategies with Violent Relationships) 5.0 hrs.
12/09/97 Ethics for Family Law Practitioners 3.25 hrs.
12/12/97 The Masters in Trial 7.5 hrs.
(c) 10/02/98 Traffic/DUI 6.5 hrs.
12/19/98 Ethical Dilemmas Common Problems and Not-So-Common Solutions 6.0 hrs.
(d) 01/29/99 PC's from the Inside Out 6.0 hrs.
08/20/99 Paralegal Practice in SC 6.0 hrs.
11/19/99 Drug Litigation in SC 6.83 hrs.
(e) 03/10/00 Solo & Small Office 6.0 hrs.
09/22/00 Issues in Domestic Violence 6.0 hrs.
11/10/00 10th Annual Criminal Practice in SC 6.25 hrs."
Mr. Whiten reported that he has not taught or lectured at any bar association conferences, educational institutions, or continuing legal or judicial education programs.
Mr. Whiten reported that he has published the following:
"(a) The Republican Manifesto, a novel published by 1st Books Library, December 1999."
(4) Character:
The Commission's investigation of Mr. Whiten did not reveal evidence of any founded grievances or criminal allegations made against him. The Commission's investigation of Mr. Whiten did not indicate any evidence of a troubled financial status. Mr. Whiten has handled his financial affairs responsibly.
The Commission also noted that Mr. Whiten was punctual and attentive in his dealings with the Commission, and the Commission's investigation did not reveal any problems with his diligence and industry.
(5) Reputation:
Mr. Whiten reported that he is not rated by Martindale-Hubbell.
(1) Constitutional Qualifications:
Based on the Commission's investigation, Judge Young meets the qualifications prescribed by law for judicial service as a Circuit Court judge.
Judge Young was born on February 15, 1960. He is 41 years old and a resident of North Charleston, South Carolina. Judge Young provided in his application that he has been a resident of South Carolina for at least the immediate past five years and has been a licensed attorney in South Carolina since 1983.
(2) Ethical Fitness:
The Commission's investigation did not reveal any evidence of unethical conduct by Judge Young.
Judge Young demonstrated an understanding of the Canons of Judicial Conduct and other ethical considerations important to judges, particularly in the areas of ex parte communications, acceptance of gifts and ordinary hospitality, and recusal.
Judge Young reported that he has made $200.84 in campaign expenditures for the following:
"12-17-00 Supplies, Office Max 54.06
12-18-00 Copies, Office Max 53.28
12-19-00 Stamps, USPS 93.50"
Judge Young testified he has not:
(a) sought or received the pledge of any legislator prior to screening;
(b) sought or been offered a conditional pledge of support by a legislator;
(c) asked third persons to contact members of the General Assembly prior to screening.
Judge Young testified that he is aware of the Commission's 48-hour rule regarding the formal and informal release of the Screening Report.
(3) Professional and Academic Ability:
Date Sponsor Class Hours
05/19/96 NJC Logic for Judges 12.50
05/22/96 NJC Opinion Writing 12.83
06/19/96 SC Bar Trial Practice Tune-Up 3.0
07/19/96 SC Bar ADR Basics 8.0
10/18/96 SC Bar Practice Before MIE 6.50
01/10/97 CC Bar Ethics 3.0
05/18/97 NJC Basic Evidence 23.83
07/11/97 CC Bar Insurance Coverage
During Hurricane Season 2.0
09/19/97 CC Bar Real Estate Update 0.8
01/23/98 SC Bar Annual Criminal Law
Update 6.50
03/01/98 NJC Advanced Evidence 24.17
03/20/98 SC Bar Rules-SC Civil Procedure 6.0
06/11/98 SC Bar Developments in Real Estate
Law 6.0
06/21/98 NJC Managing the Complex Civil
Case 26.0
10/09/98 SC Bar Practice Before MIE 6.0
03/26/99 SC Bar Mechanic's Liens 5.67
04/12/99 NJC Judicial Writing 28.25
05/07/99 CC Bar Real Estate Update 0.75
06/18/99 SC Bar SC Environmental Law 6.75
07/12/99 NJC General Jurisdiction 82.75
02/27/00 NJC Financial Statements
in Court 13.50
03/01/00 NJC Business Issues 13.08
10/13/00 SC Bar Business Torts 6.0
01/26/01 SC Bar Annual Criminal Law
Update 6.0
In addition to these CLE classes, I took the following classes in the MJS program that I did not apply for CLE credit. These were graduate school classes that lasted 2-4 weeks. With the one exception noted below, each class ran from 8:30 a.m. to 4:00 p.m. four days a week and required at least two papers per class. The History and Theory of
(one-week class, test instead of paper)
Spring 00 UNR Law and the Social and Behavioral Sciences 3 credits
Summer 98 UNR Public Policy in the Courts 3 credits
Summer 00 UNR Criminology 3 credits"
Judge Young reported that he has taught the following law-related courses:
"(a) Speaker, "Practice Before Masters-in-Equity," Bridge the Gap, South Carolina Bar Continuing Legal Education Division and the Supreme Court of South Carolina, March 13, 2001.
(b) Speaker, "Recent Judicial Decisions Involving Tax Sales," County Auditors, Treasurers and Tax Collectors Academy, February 8, 2001.
(c) Moderator, "Business Torts, Accounting & Damages," South Carolina Bar Continuing Legal Education Division CLE, October 13, 2000.
(d) Speaker, "Practice Before Masters-in-Equity," Bridge the Gap, South Carolina Bar Continuing Legal Education Division and the Supreme Court of South Carolina, May 23, 2000.
(e) Speaker, "Law of Tax Sales," Charleston County Bar Association Real Estate Section, March 7, 2000.
(f) Speaker, "Recent Judicial Decisions Involving Tax Sales," County Auditors, Treasurers and Tax Collectors Academy, February 3, 2000.
(g) Speaker, "Twelve by Twelve" CLE, Charleston County Bar Association, December 16, 1999.
(h) Speaker, "Equitable Remedies," South Carolina Bar Continuing Legal Education Division CLE, October 8, 1999.
(i) Moderator, Mechanic's Liens CLE, South Carolina Bar Continuing Legal Education Division, March 26, 1999.
(j) Speaker, "Practice Before Masters-in-Equity," Bridge the Gap, South Carolina Bar Continuing Legal Education Division and the Supreme Court of South Carolina, March 9, 1999, May 18, 1999.
(k) Speaker, "Law on Tax Sales," Practice Before Masters-in-Equity and Special Referees CLE, South Carolina Bar Continuing Legal Education Division, October 9, 1998.
"I presume this means the case was tried and the matter was submitted to a judge for a verdict since non-jury matters don't ever go to a jury."
Judge Young provided that he most often served as sole counsel.
The following is Judge Young's account of his five most significant litigated matters:
"(a) C-21 v. C-21 Action Realty. This was a federal district court case. As a young associate I was given significant responsibilities in preparing and assisting in a two-day injunction hearing against one of the largest law firms in the state.
One of the main reasons I wish to move to the circuit court is to continue my research in the area of jury reform. Judges have a duty to
The following candidates were found qualified:
Judge Deadra L. Jefferson Circuit Court for the Ninth Judicial Circuit, Seat 1
Judge L. Mendel Rivers, Jr. Circuit Court for the Ninth Judicial Circuit, Seat 1
Judge James A. Turner Circuit Court for the Ninth Judicial Circuit, Seat 1
Judge Roger M. Young Circuit Court for the Ninth Judicial Circuit, Seat 1
J. Cordell Maddox, Jr. Circuit Court for the Tenth Judicial Circuit, Seat 1
Judge J.C. Nicholson, Jr. Circuit Court for the Tenth Judicial Circuit, Seat 1
Charles W. Whiten, Jr. Circuit Court for the Tenth Judicial Circuit, Seat 1
C. Reuben Goude Circuit Court for the Fifteenth Judicial Circuit, Seat 1
Steven H. John Circuit Court for the Fifteenth Judicial Circuit, Seat 1
Received as information.
The following was introduced:
H. 4068 (Word version) -- Reps. Lourie and J. E. Smith: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY UPON THE DEATH OF WILLIAM RIPLEY "BILL" BALLOU, SR.,
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4069 (Word version) -- Rep. Hayes: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME A PORTION OF SOUTH CAROLINA HIGHWAY 301 IN DILLON COUNTY AS THE "EUNICE JONES MEMORIAL HIGHWAY" IN MEMORY OF THE LATE MRS. EUNICE JONES, A DISTINGUISHED CITIZEN OF DILLON COUNTY.
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.
The following was introduced:
H. 4070 (Word version) -- Reps. Scott, Allen, Allison, Altman, Askins, Bales, Barfield, Barrett, Battle, Bingham, Bowers, Breeland, G. Brown, J. Brown, R. Brown, Campsen, Carnell, Cato, Chellis, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Easterday, Edge, Emory, Fleming, Freeman, Frye, Gilham, Gourdine, Govan, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Martin, McCraw, McGee, McLeod, Meacham-Richardson, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Quinn, Rhoad, Rice, Riser, Rivers, Robinson, Rodgers, Rutherford, Sandifer, Scarborough, Sharpe, Sheheen, Simrill, Sinclair, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stille, Stuart, Talley, Taylor, Thompson, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Weeks, Whatley, Whipper, White, Wilder, Wilkins, Witherspoon, A. Young and J. Young: A CONCURRENT RESOLUTION TO COMMEND ANNA J. AMOS FOR HER MANY YEARS OF DEDICATED SERVICE TO THIS STATE THROUGH HER WORK IN PUBLIC SAFETY AND
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4071 (Word version) -- Reps. J. H. Neal, Bales, J. Brown, Cotty, Harrison, Howard, Lourie, Quinn, Rutherford, Scott and J. E. Smith: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE AT THE INTERSECTION OF INTERSTATE HIGHWAY 77 AND SHOP ROAD IN RICHLAND COUNTY THE "LIEUTENANT COLONEL GEORGE D. MARTIN III INTERCHANGE" IN MEMORY OF LIEUTENANT COLONEL GEORGE D. MARTIN III WHO LOST HIS LIFE ALONG WITH SIX OTHER AMERICANS AND NINE VIETNAMESE IN A HELICOPTER CRASH ON APRIL 7, 2001, IN VIETNAM WHILE SEARCHING FOR AMERICANS MISSING IN ACTION DURING THE VIETNAM WAR, AND TO ERECT APPROPRIATE SIGNS OR MARKERS WHICH CONTAIN THE WORDS "LIEUTENANT COLONEL GEORGE D. MARTIN III INTERCHANGE".
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.
The Senate sent to the House the following:
S. 665 (Word version) -- Senator Leatherman: A CONCURRENT RESOLUTION EXPRESSING HEARTFELT APPRECIATION OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MESSRS. ARTHUR STRICKLAND AND JOE NICHOLSON OF FLORENCE, PRODUCERS OF THE TELEVISION PROGRAM "CAROLINAS MOST WANTED" AND WISHING THE PROGRAM CONTINUING
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
The following Bills were introduced, read the first time, and referred to appropriate committees:
H. 4072 (Word version) -- Rep. Sharpe: A BILL TO AMEND SECTION 16-11-610 CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENTRY ON ANOTHER'S LANDS FOR VARIOUS PURPOSES WITHOUT PERMISSION, SO AS TO ALLOW REGISTERED LAND SURVEYORS, THEIR EMPLOYEES AND AGENTS TO ENTER ONTO THE LANDS OF OTHERS FOR THE PURPOSE OF PERFORMING CUSTOMARY AND NECESSARY ACTS OF SURVEYING LAND.
Referred to Committee on Judiciary
S. 536 (Word version) -- Senator Wilson: A BILL TO AMEND SECTION 56-5-4030, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MAXIMUM ALLOWABLE WIDTH OF A VEHICLE, SO AS TO PROVIDE THAT APPURTENANCES ON CERTAIN VEHICLES MAY EXCEED THE MAXIMUM WIDTH REQUIREMENT AS LONG AS THEY REMAIN INSIDE THE EXTERIOR REAR VIEW MIRRORS OF THE VEHICLE, OR ITS TOW VEHICLE; AND TO AMEND SECTION 56-5-4070, RELATING TO LIMITATIONS PLACED ON THE LENGTH OF COMBINATION VEHICLES, SO AS TO INCREASE THE MAXIMUM LENGTH OF CERTAIN VEHICLES THAT TRAVEL ALONG THE STATE'S HIGHWAYS FROM FORTY FEET TO FORTY-FIVE FEET.
Referred to Committee on Education and Public Works
S. 538 (Word version) -- Senators Matthews and Hutto: A BILL TO AMEND ACT 526 OF 1996, RELATING TO THE THREE CONSOLIDATED SCHOOL DISTRICTS IN ORANGEBURG COUNTY, SO AS TO AUTHORIZE THE BOARD OF TRUSTEES OF EACH DISTRICT TO SET BY MAJORITY VOTE A SALARY THAT EACH MEMBER OF THE BOARD SHALL RECEIVE FOR ATTENDING
The following was introduced:
H. 4073 (Word version) -- Reps. Chellis and A. Young: A HOUSE RESOLUTION TO COMMEND CADET RUSS T. TOUCHBERRY OF SUMMERVILLE FOR HIS OUTSTANDING ACADEMIC, ATHLETIC, AND LEADERSHIP ACHIEVEMENTS AS A CADET AND STUDENT ATHLETE AT THE CITADEL, THE MILITARY COLLEGE OF SOUTH CAROLINA, AND TO CONGRATULATE CADET TOUCHBERRY ON WINNING BOTH THE MACARTHUR FOUNDATION AWARD FOR LEADERSHIP AND THE BRIGADIER FOUNDATION PRESIDENT'S AWARD FOR ATHLETICS AS A CADET OFFICER AND CAPTAIN OF THE VARSITY TRACK TEAM DURING HIS SENIOR YEAR AT THE CITADEL.
The Resolution was adopted.
The following was introduced:
H. 4074 (Word version) -- Reps. J. Brown and J. H. Neal: A CONCURRENT RESOLUTION TO CONGRATULATE BISHOP THEODORE R. MYERS OF RICHLAND COUNTY UPON THE OCCASION OF HIS INSTALLATION AS DIOCESAN BISHOP OF THE BIBLE WAY CHURCHES OF SOUTH CAROLINA ON FRIDAY, MAY 11, 2001.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4075 (Word version) -- Reps. Harvin and J. Young: A HOUSE RESOLUTION TO COMMEMORATE THE CLARENDON MEMORIAL
The Resolution was adopted.
The following was introduced:
H. 4076 (Word version) -- Reps. Rutherford, J. Brown, J. H. Neal, Scott, Howard, Bales, Lourie, J. E. Smith, Harrison, Cotty and Quinn: A CONCURRENT RESOLUTION TO COMMEND MRS. TRACI YOUNG COOPER OF RICHLAND COUNTY FOR HER COMMITMENT TO PROVIDING QUALITY EDUCATION TO THE CHILDREN OF SOUTH CAROLINA AND TO CONGRATULATE HER ON BEING NAMED THE 2002 SOUTH CAROLINA TEACHER OF THE YEAR.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 4077 (Word version) -- Rep. Scott: A CONCURRENT RESOLUTION RECOGNIZING MRS. DOROTHY C. WILSON OF RICHLAND COUNTY FOR THIRTY-THREE YEARS OF DEDICATED SERVICE IN THE FIELD OF PUBLIC EDUCATION UPON HER RETIREMENT.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The roll call of the House of Representatives was taken resulting as follows:
Allen Allison Altman Bales Barfield Barrett
Bingham Bowers Breeland Brown, J. Brown, R. Carnell Cato Chellis Clyburn Coates Cobb-Hunter Coleman Cooper Cotty Dantzler Davenport Delleney Easterday Emory Fleming Freeman Frye Gilham Gourdine Hamilton Harrell Haskins Hayes Hines, J. Hines, M. Hinson Hosey Howard Jennings Keegan Kelley Kirsh Knotts Koon Law Leach Littlejohn Lloyd Loftis Lourie Lucas Martin McCraw McGee McLeod Meacham-Richardson Merrill Miller Neal, J.H. Neal, J.M. Ott Owens Parks Perry Phillips Quinn Rhoad Rice Riser Rivers Robinson Rodgers Sandifer Scarborough Scott Sharpe Sheheen Simrill Sinclair Smith, D.C. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Stille Stuart Talley Taylor Thompson Townsend Trotter Vaughn Walker Webb Weeks Whatley White Wilder Wilkins Young, A. Young, J.
I came in after the roll call and was present for the Session on Tuesday, May 8.
Chip Huggins James Battle John J. Snow Tracy Edge David Mack H.B. "Chip" Limehouse James Klauber Jackson Whipper Grady Brown Harry Askins
George Campsen Alex Harvin Daniel Tripp James Harrison Kenneth Kennedy Brenda Lee Fletcher Smith Todd Rutherford
The SPEAKER granted Rep. NEILSON a leave of absence for the week due to a car accident.
The SPEAKER granted Rep. WITHERSPOON a leave of absence for the week due to surgery.
The SPEAKER granted Rep. MOODY-LAWRENCE a leave of absence for the week due to complications from dental medication.
The SPEAKER granted Rep. GOVAN a leave of absence for the day due to medical reasons.
Announcement was made that Dr. James R. Pruitt of Seneca is the Doctor of the Day for the General Assembly.
In accordance with House Rule 5.2 below:
"5.2 Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be presented by the member to the Speaker at the desk. After a bill or resolution has been presented and given first reading, no further names of co-sponsors may be added. A member may add his name to a bill or resolution or a co-sponsor of a bill or resolution may remove his name at any time prior to the bill or resolution receiving passage on second reading. The member or co-sponsor shall notify the Clerk of the House in writing of his desire to have his name added or removed from the bill or resolution. The Clerk of the House shall print the member's or
Bill Number: H. 3417 (Word version)
Date: ADD:
05/08/01 THOMPSON
Bill Number: H. 3010 (Word version)
Date: ADD:
05/08/01 D. C. SMITH
Bill Number: H. 3389 (Word version)
Date: ADD:
05/08/01 PERRY
Bill Number: H. 3462 (Word version)
Date: REMOVE:
05/08/01 KNOTTS
Rep. TOWNSEND moved to adjourn debate upon the following Bill until Thursday, May 17, which was adopted:
H. 3385 (Word version) -- Reps. Townsend and Stille: A BILL TO PROVIDE FOR THE AUTHORITY OF THE ANDERSON COUNTY BOARD OF EDUCATION IN REGARD TO SCHOOL BUDGETARY MATTERS INCLUDING THE AUTHORITY TO PROVIDE THAT UP TO TWO MILLS OF COUNTYWIDE AD VALOREM PROPERTY TAX LEVIES FOR SCHOOL OPERATIONS BE DISTRIBUTED TO DISTRICTS MEETING CERTAIN CRITERIA ESTABLISHED BY THE BOARD.
The following Joint Resolution was taken up, read the second time, and ordered to a third reading:
H. 4062 (Word version) -- Rep. Hayes: A JOINT RESOLUTION TO PROVIDE FOR AN INCREASE IN THE LEVY OF TAXES FOR SCHOOL PURPOSES IN DILLON COUNTY FOR THE FISCAL YEAR BEGINNING JULY 1, 2001, AND ENDING JUNE 30, 2002.
Rep. CATO moved to adjourn debate upon the following Bill until Wednesday, May 9, which was adopted:
H. 3822 (Word version) -- Reps. Cato, Tripp, Bales, Barfield, Edge, Limehouse, McCraw, Meacham-Richardson, Merrill, Robinson, Sandifer, Scott and Whatley: A BILL TO AMEND CHAPTER 77, TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 12 SO AS TO PROVIDE THE DIRECTOR OF THE DEPARTMENT OF INSURANCE THE AUTHORITY TO ISSUE TO A RENTAL COMPANY A LIMITED LICENSE WHICH AUTHORIZES THE COMPANY TO OFFER OR SELL INSURANCE IN CONNECTION WITH THE RENTAL OF A MOTOR VEHICLE.
The following Bill was taken up:
S. 537 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE, BY ADDING SECTION 38-90-25 SO AS TO PROVIDE FOR A CAPTIVE REINSURANCE COMPANY TO BE LICENSED TO WRITE REINSURANCE CONTRACTS IN SOUTH CAROLINA; BY ADDING SECTION 38-90-45 SO AS TO PROVIDE FOR MINIMUM CAPITALIZATION OR RESERVES FOR LICENSING OF A CAPTIVE REINSURANCE COMPANY; BY ADDING SECTION 38-90-55 SO AS TO REQUIRE THE INCORPORATION OF A CAPTIVE REINSURANCE COMPANY AS A STOCK INSURER; BY ADDING SECTION 38-90-75 SO AS TO PROVIDE FOR A CAPTIVE REINSURANCE COMPANY TO DISCOUNT ITS LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES; BY ADDING SECTION 38-90-145 SO AS TO
The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\DKA\AMEND\ 4349MM01), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. The 1976 Code is amended by adding:
"Section 38-90-25. (A) A captive reinsurance company, if permitted by its articles of incorporation or charter, may apply to the director for a license to write reinsurance covering property and casualty insurance or reinsurance contracts. A captive reinsurance company authorized by the director may write reinsurance contracts covering risks in any state.
(B) To conduct business in this State, a captive reinsurance company shall:
(1) obtain from the director a license authorizing it to conduct business as a captive reinsurance company in this State;
(2) hold at least one board of directors' meeting each year in this State;
(3) maintain its principal place of business in this State; and
(4) appoint a registered agent to accept service of process and act otherwise on its behalf in this State.
(C) Before receiving a license, a captive reinsurance company shall file with the director:
(1) a certified copy of its charter and bylaws;
(2) a statement under oath of its president and secretary showing its financial condition; and
(3) other documents required by the director.
(D) In addition to the information required by subsection (C), the applicant captive reinsurance company shall file with the director evidence of:
(1) the amount and liquidity of its assets relative to the risks to be assumed;
(2) the adequacy of the expertise, experience, and character of the person who manages it;
(3) the overall soundness of its plan of operation; and
(4) other overall factors considered relevant by the director in ascertaining if the proposed captive reinsurance company is able to meet its policy obligations.
(E) Information submitted pursuant to this section is confidential and may not be made public by the director or an agent or employee of the director without the written consent of the company, except that:
(1) information may be discoverable by a party in a civil action or contested case to which the submitting captive reinsurance company is a party, upon a showing by the party seeking to discover the information that:
(a) the information sought is relevant to and necessary for the furtherance of the action or case;
(b) the information sought is unavailable from other nonconfidential sources;
(c) a subpoena issued by a judicial or administrative law officer of competent jurisdiction has been submitted to the director; and
(2) the director may disclose the information to the public officer having jurisdiction over the regulation of insurance in another state if:
(a) the public official agrees in writing to maintain the confidentiality of the information; and
(b) the laws of the state in which the public official serves require the information to be confidential.
(F) The provisions of subsection (E) do not apply to an industrial insured captive reinsurance company insuring the risks of an industrial insured group."
SECTION 2. The 1976 Code is amended by adding:
"Section 38-90-45. (A) The director may not issue a license to a captive reinsurance company unless the company possesses and maintains capital or free surplus of not less than the greater of three hundred million dollars or ten percent of reserves. The surplus may be in form of cash or securities.
(B) The director may prescribe additional capital or surplus based upon the type, volume, and nature of the insurance business transacted.
(C) A captive reinsurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director."
SECTION 3. The 1976 Code is amended by adding:
"Section 38-90-55. (A) A captive reinsurance company must be incorporated as a stock insurer with its capital divided into shares and held by its shareholders.
(B) A captive reinsurance company may not have fewer than three incorporators of whom at least two must be residents of this State.
(C) Before the articles of incorporation are transmitted to the Secretary of State, the incorporators shall petition the director to issue a certificate finding that the establishment and maintenance of the proposed corporation promotes the general good of this State. In arriving at this finding the director shall consider:
(1) the character, reputation, financial standing, and purposes of the incorporators;
(2) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers and directors; and
(3) other factors the director considers advisable.
(D) The capital stock of a captive reinsurance company must be issued at par value or greater.
(E) At least one of the members of the board of directors of a captive reinsurance company incorporated in this State must be a resident of this State."
SECTION 4. The 1976 Code is amended by adding:
"Section 38-90-75. (A) A sponsored captive insurance company and a captive reinsurance company may discount its loss and loss adjustment expense reserves at treasury rates applied to the applicable payments projected through the use of the expected payment pattern associated with the reserves.
(B) A sponsored captive insurance company and a captive reinsurance company shall file annually an actuarial opinion on loss and loss adjustment expense reserves provided by an independent actuary. The actuary may not be an employee of the captive company or its affiliates.
(C) The director may disallow the discounting of reserves if a sponsored captive insurance company or a captive reinsurance company violates a provision of this title."
SECTION 5. The 1976 Code is amended by adding:
"Section 38-90-145. (A) A captive reinsurance company shall pay to the department by March first of each year a captive reinsurance tax of five thousand dollars.
(B) The tax provided in this section is the only tax collectible pursuant to the laws of this State from a captive reinsurance company, and no tax on reinsurance premiums, other than occupation tax, nor any other taxes may be levied or collected from a captive reinsurance company by the State or a county, city, or municipality within this State, except ad valorem taxes on real and personal property used in the production of income.
(C) A captive reinsurance company failing to make returns or to pay all taxes required by this section, is subject to sanctions provided in this title."
SECTION 6. The 1976 Code is amended by adding:
"Section 38-90-185. At least thirty-five percent of the assets of a captive reinsurance company must be managed by an asset manager domiciled in this State."
SECTION 7. The 1976 Code is amended by adding:
"Section 38-90-235. (A) Except as otherwise provided in this chapter, the terms and conditions provided in Chapter 10 relating to a
(B) In the case of a sponsored captive insurance company:
(1) a protected cell need not be established solely for the purpose of effecting insurance securitizations, but may be established for the purpose of isolating the expenses and claims of a sponsored captive insurance company participant;
(2) the sponsored captive insurance company shall attribute all insurance obligations, assets, and liabilities relating to a participant's risks to the participant's protected cell; and
(3) Section 38-10-40-(F) does not apply."
SECTION 8. Section 38-90-10 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-10. As used in this chapter, unless the context requires otherwise:
(1) 'Alien captive insurance company' means an insurance company formed to write insurance business for its parents and affiliates and licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards in a form acceptable to the director on companies transacting the business of insurance in such jurisdiction.
(2) 'Affiliated company' means a company in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management.
(3) 'Association' means a legal association of individuals, corporations, partnerships, or associations that has been in continuous existence for at least one year:
(a) the member organizations of which collectively, or which does itself;
(i) own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurer; or
(ii) have complete voting control over an association captive insurance company incorporated as a mutual insurer; or
(b) the member organizations of which collectively constitute all of the subscribers of an association captive insurance company formed as a reciprocal insurer.
(4) 'Association captive insurance company' means a company that insures risks of the member organizations of the association and their affiliated companies.
(5) 'Branch business' means any insurance business transacted by a branch captive insurance company in this State.
(6) 'Branch captive insurance company' means an alien captive insurance company licensed by the director to transact the business of insurance in this State through a business unit with a principal place of business in this State.
(7) 'Branch operations' means any business operations of a branch captive insurance company in this State.
(8) 'Captive insurance company' means a pure captive insurance company, association captive insurance company, captive reinsurance company, sponsored captive insurance company, or industrial insured captive insurance company formed or licensed under this chapter. For purposes of this chapter, a branch captive insurance company must be a pure captive insurance company with respect to operations in this State, unless otherwise permitted by the director.
(9) 'Captive reinsurance company' means a reinsurance company that is formed or licensed pursuant to this chapter and is wholly owned by a qualifying reinsurance parent company. A captive reinsurance company is a stock corporation.
(10) 'Consolidated debt to total capital ratio' means the ratio of the sum of (a) all debts and hybrid capital instruments including, but not limited to, all borrowings from banks, all senior debt, all subordinated debts, all trust preferred shares, and all other hybrid capital instruments that are not included in the determination of consolidated GAAP new worth issued and outstanding to (b) total capital, consisting of all debts and hybrid capital instruments as described in subitem (a) plus shareholders' equity determined in accordance with GAAP for reporting to the United States Securities and Exchange Commission.
(11) 'Consolidated GAAP net worth' means the consolidated shareholders' equity determined in accordance with GAAP for reporting to the United States Securities and Exchange Commission.
(12) 'Controlled unaffiliated business' means a company:
(a) that is not in the corporate system of a parent and affiliated companies;
(b) that has an existing contractual relationship with a parent or affiliated company; and
(c) whose risks are managed by a pure captive insurance company in accordance with Section 38-90-190.
(10)(13) 'Director' means the Director of the South Carolina Department of Insurance or the director's designee.
(11)(14) 'Department' means the South Carolina Department of Insurance.
(15) 'GAAP' means generally accepted accounting principles.
(12)(16) 'Industrial insured' means an insured as defined in Section 38-25-150(8).
(13)(17) 'Industrial insured captive insurance company' means a company that insures risks of the industrial insureds that comprise the industrial insured group and their affiliated companies.
(14)(18) 'Industrial insured group' means a group that meets either of the following criteria:
(a) a group of industrial insureds that collectively:
(i) own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurer; or
(ii) have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurer; or
(b) a group which is created under the Product Liability Risk Retention Act of 1981, 15 U.S.C. Section 3901 et seq., as amended, as a corporation or other limited liability association taxable as a stock insurance company or a mutual insurer under this title.
(15)(19) 'Member organization' means a an individual, corporation, partnership, or association that belongs to an association.
(16)(20) 'Parent' means a corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty per cent of the outstanding voting securities of a pure captive insurance company.
(17)(21) 'Participant' means an entity as defined in Section 38-90-230, and any affiliates of that entity, that are insured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to the assets of a protected cell.
(18)(22) 'Participant contract' means a contract by which a sponsored captive insurance company insures the risks of a participant and limits the losses of the participant to the assets of a protected cell.
(19)(23) 'Protected cell' means a separate account established and maintained by a sponsored captive insurance company for one participant.
(20)(24) 'Pure captive insurance company' means a company that insures risks of its parent and affiliated companies.
(25) 'Qualifying reinsurer parent company' means a reinsurer authorized to write reinsurance by this State and that has a consolidated
(21)(26) 'Sponsor' means an entity that meets the requirements of Section 38-90-220 and is approved by the director to provide all or part of the capital and surplus required by applicable law and to organize and operate a sponsored captive insurance company.
(22)(27) 'Sponsored captive insurance company' means a captive insurance company:
(a) in which the minimum capital and surplus required by applicable law is provided by one or more sponsors;
(b) that is formed or licensed under this chapter;
(c) that insures the risks of separate participants through the contract; and
(d) that segregates each participant's liability through one or more protected cells.
(28) 'Treasury rates' means the United States treasury strips asked yield as published in the Wall Street Journal as of a balance sheet date."
SECTION 9. Section 38-90-70(B) of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"(B) Before March 1 first of each year, a captive insurance company or a captive reinsurance company shall submit to the director a report of its financial condition, verified by oath of two of its executive officers. Except as provided in Sections 38-90-40 and 38-90-50, a captive insurance company or a captive reinsurance company shall report using generally accepted accounting principles, unless the director approves the use of statutory accounting principles, with any useful or necessary modifications or adaptations required or approved or accepted by the director for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information required by the director. Except as otherwise provided, an association captive insurance company and an industrial insured group shall file its report in the form required by Section 38-13-80, and each industrial insured group shall comply with the requirements set forth in Section 38-13-85. The director by regulation shall prescribe the forms in which pure captive insurance companies and industrial insured captive insurance companies shall report."
SECTION 10. Section 38-90-100 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-100. (A) An association captive insurance company, a sponsored captive insurance company, and an industrial
(B) A pure captive insurance company, or an industrial insured captive insurance company, and a sponsored captive insurance company is are not subject to any restrictions on allowable investments contained in this title; however, the director may prohibit or limit an investment that threatens the solvency or liquidity of the company.
(C) Only a pure captive insurance company may make loans to its parent company or affiliates and only upon the prior written approval of the director and must be evidenced by a note in a form approved by the director. Loans of minimum capital and surplus funds required by Sections 38-90-40(A) and 38-90-50(A) are prohibited."
SECTION 11. Section 38-90-150 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-150. The director may promulgate and, from time to time, amend rules and regulations and issue orders relating to captive insurance companies as are necessary to enable the director to carry out the provisions of this chapter."
SECTION 12. Section 38-90-180 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-180. (A) Except as otherwise provided in this section, the terms and conditions set forth provided for in Chapter 27 pertaining to insurance reorganizations, receiverships, and injunctions apply in full to captive insurance companies formed or licensed under pursuant to this chapter.
(B) In the case of a sponsored captive insurance company:
(1) the assets of the protected cell may not be used to pay any expenses or claims other than those attributable to the protected cell; and
(2) its capital and surplus at all times must be available to pay any expenses of or claims against the sponsored captive insurance company and may not be used to pay expenses or claims attributable to a protected cell."
SECTION 13. Section 38-90-220 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-220. A sponsor of a sponsored captive insurance company must be an insurer licensed under pursuant to the laws of any a state, an insurance holding company that controls an insurer licensed pursuant to the laws of any state and subject to registration pursuant to
(1) fronted by an insurance company licensed pursuant to the laws of:
(a) any state; or
(b) any jurisdiction if the insurance company is a wholly owned subsidiary of an insurance company licensed pursuant to the laws of any state;
(2) reinsured by a reinsurer authorized or approved by this State; or
(3) secured by a trust fund in the United States for the benefit of policyholders and claimants funded by an irrevocable letter of credit or other asset acceptable to the director. The amount of security provided by the trust fund may not be less than the reserves associated with those liabilities, including reserves for losses, allocated loss adjustment expenses, incurred but unreported losses, and unearned premiums for business written through the participant's protected cell. The director may require the sponsored captive to increase the funding of a trust established pursuant to this item. If the form of security in the trust is a letter of credit, the letter of credit must be established, issued, or confirmed by a bank chartered in this State, a member of the federal reserve system, or a bank chartered by another state if that state-chartered bank is acceptable to the director. A trust and trust instrument maintained pursuant to this item must be in a form and upon terms approved by the director."
SECTION 14. Section 38-90-230 of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"Section 38-90-230. (A) An association, a corporation, a limited liability company, a partnership, a trust, or other business entity may be a participant in a sponsored captive insurance company formed or licensed under pursuant to this chapter.
(B) A sponsor may be a participant in a sponsored captive insurance company.
(C) A participant need not be a shareholder of the sponsored captive insurance company or an affiliate of the company.
(D) A participant shall insure only its own risks through a sponsored captive insurance company, unless otherwise approved by the director."
SECTION 15. Section 38-10-10 of the 1976 Code, as added by Act 238 of 2000, is amended to read:
"Section 38-10-10. This chapter is adopted to provide a basis for the creation of protected cells by a domestic insurer or captive insurer as defined in Chapter 90 as one means of accessing alternative sources of capital and achieving the benefits of insurance securitization. Investors in fully funded insurance securitization transactions provide funds that are available to pay the insurer's insurance obligations or to repay the investors, or both. The creation of protected cells is intended to be a means to achieve more efficiencies in conducting insurance securitizations."
SECTION 16. Section 38-10-20(10) of the 1976 Code, as added by Act 238 of 2000, is amended to read:
"(10) 'Protected cell company' means a domestic insurer or captive insurer that has one or more protected cells."
SECTION 17. Section 38-9-200(B) of the 1976 Code, as last amended by Act 422 of 1998, is further amended to read:
"(B) Credit shall must be allowed when the reinsurance is ceded to an assuming insurer which is licensed to transact insurance or reinsurance in this State, or approved as a reinsurer by the director or designee provided by Section 38-5-60, or licensed as a captive reinsurance company pursuant to Chapter 90 of this title. It is not the intent of this provision to allow an insurer domiciled outside this State to take credit for reinsurance in its financial statements based on the domestic license, authorization, accreditation, or 'substantially similar' status of the captive reinsurance company."
SECTION 18. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend totals and title to conform.
Rep. CATO explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
The following Bill was taken up:
H. 3768 (Word version) -- Rep. Askins: A BILL TO AMEND SECTION 56-3-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM MOTOR VEHICLE REGISTRATION AND LICENSING REQUIREMENTS, SO AS TO EXEMPT CERTAIN FIREFIGHTING VEHICLES.
Rep. MARTIN explained the Bill.
Rep. RICE made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 3907 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 56-5-4170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TENDER OR INTERCHANGE OF AN INTERMODAL TRAILER, CHASSIS, OR CONTAINER, SO AS TO MAKE TECHNICAL CHANGES, PROVIDE THAT IF THE EQUIPMENT PROVIDER FOR CERTAIN OUT-OF-SERVICE VEHICLES FAILS TO REIMBURSE THE MOTOR CARRIER OPERATOR FOR FINES AND PENALTIES INCURRED PURSUANT TO THE VEHICLE'S OUT-OF-SERVICE ORDER WITHIN THIRTY DAYS OF A CONVICTION FOR VIOLATING A ROADSIDE INSPECTION, THEN THE MOTOR CARRIER OPERATOR HAS A CIVIL CAUSE OF ACTION AGAINST THE EQUIPMENT PROVIDER, TO PROVIDE THAT THE PROVISIONS CONTAINED IN THIS SECTION ARE INTENDED TO ELIMINATE THE RESPONSIBILITY AND OBLIGATION OF A MOTOR CARRIER AND OPERATOR TO MAINTAIN AND OPERATE VEHICLES IN ACCORDANCE WITH FEDERAL MOTOR CARRIER SAFETY REGULATIONS AND ALL STATE AND LOCAL LAWS, AND TO PROVIDE THAT ANY PROVISION CONTAINED IN AN INTERMODAL INTERCHARGE CONTRACT PROVIDING FOR A
The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GGS\AMEND\ 22035CM01), which was adopted:
Amend the bill, as and if amended, by striking the title and inserting:
/TO AMEND SECTION 56-5-4170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TENDER OR INTERCHANGE OF AN INTERMODAL TRAILER, CHASSIS, OR CONTAINER, SO AS TO MAKE TECHNICAL CHANGES, PROVIDE THAT IF THE EQUIPMENT PROVIDER FOR CERTAIN OUT-OF-SERVICE VEHICLES FAILS TO REIMBURSE THE MOTOR CARRIER OPERATOR FOR FINES AND PENALTIES INCURRED PURSUANT TO THE VEHICLE'S OUT-OF-SERVICE ORDER WITHIN THIRTY DAYS OF A CONVICTION FOR VIOLATING A ROADSIDE INSPECTION, THEN THE MOTOR CARRIER OPERATOR HAS A CIVIL CAUSE OF ACTION AGAINST THE EQUIPMENT PROVIDER, TO PROVIDE THAT THE PROVISIONS CONTAINED IN THIS SECTION ARE NOT INTENDED TO ELIMINATE THE RESPONSIBILITY AND OBLIGATION OF A MOTOR CARRIER AND OPERATOR TO MAINTAIN AND OPERATE VEHICLES IN ACCORDANCE WITH FEDERAL MOTOR CARRIER SAFETY REGULATIONS AND ALL STATE AND LOCAL LAWS, AND TO PROVIDE THAT ANY PROVISION CONTAINED IN AN INTERMODAL INTERCHARGE CONTRACT PROVIDING FOR A HOLD HARMLESS OR INDEMNITY AGREEMENT, OR BOTH, BETWEEN THE MOTOR CARRIER OPERATOR AND THE TENDERER OR OWNER OF A VEHICLE, CONTRARY TO ANY PROVISION OF THIS SECTION IS VOID./
Amend further Section 56-5-4170(I) as contained in SECTION 1, by striking Section 56-5-4170(I) and inserting:
/ (I) Except as provided in subsection (G) of this section, any provision contained in an intermodal interchange contract providing for a hold harmless or indemnity agreement, or both, between the motor carrier operator and the tenderer or owner of a vehicle, contrary to any provision of this section, is contrary to public policy and is null and void. /
Rep. TOWNSEND explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
The following Bill was taken up:
S. 187 (Word version) -- Senators Rankin, Short and Hutto: A BILL TO AMEND SECTION 56-5-6410, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE USE OF A CHILD PASSENGER RESTRAINT SYSTEM IN A MOTOR VEHICLE THAT TRANSPORTS A CHILD UNDER SIX YEARS OF AGE, SO AS TO PROVIDE THAT A CHILD FOUR YEARS OF AGE OR MORE WHO CANNOT SIT WITH THEIR BACKS STRAIGHT AGAINST THE VEHICLE SEAT BACK CUSHION WITH KNEES BENT OVER A VEHICLE'S SEAT EDGE MUST BE SECURED BY A BELT-POSITIONING BOOSTER SEAT PRESCRIBED BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION.
The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GGS\AMEND\ 22063CM01):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Section 56-5-6410 of the 1976 Code, as last amended by Act 115 of 1999, is further amended to read:
"Section 56-5-6410. Every driver of a motor vehicle (passenger car, pickup truck, van, or recreational vehicle) registered in this State or primarily operated on the highways and streets of this State when transporting a child under six years of age upon the public streets and highways of the State shall must provide an appropriate child passenger restraint system and shall must secure the child as follows:
(1) Any A child three years of age or less from birth to twenty pounds and one year of age must be properly secured in a rear facing child restraint system safety seat which meets the standards prescribed by the National Highway Traffic Safety Administration.
(2) Any A child four or five years of age who is between twenty pounds and one year of age to forty pounds and age four must be secured by a in a forward facing child safety belt seat provided in the motor vehicle unless properly secured in a child restraint system which meets the standards prescribed by the National Highway Traffic Safety Administration.
(3) A child up to the age of six years who is between forty and eighty pounds must be secured by a belt-positioning booster seat. The belt-positioning booster seat must be used with both lap and shoulder belts. A booster seat must not be used with a lap belt alone.
(4) If a child up to the age of six years is over eighty pounds, the child may be restrained in an adult seat belt. If a child under the age of six years can sit with his back straight against the vehicle seat back cushion, with his knees bent over the vehicle's seat edge without slouching, the child may be moved out of the booster seat into the regular back seat and secured by the adult seat belt.
(5) A child under six years of age may not occupy a front passenger seat of a motor vehicle. This restriction does not apply if the motor vehicle does not have rear passenger seats or if all rear passenger seats are occupied by other children under six years of age.
Any child restraint system of a type sufficient to meet the physical standards prescribed by the National Highway Traffic Safety Administration at the time of its manufacture is sufficient to meet the requirements of this article."
SECTION 2. Section 56-5-6520 of the 1976 Code is amended to read:
"Section 56-5-6520. The driver and every occupant of a motor vehicle, when it is being operated on the public streets and highways of this State, shall must wear a fastened safety belt which complies with all provisions of federal law for their use. The driver is charged with the responsibility of requiring each occupant over six years of age up to and under seventeen eighteen years of age to wear a safety belt or be secured in a child restraint system as provided in Article 47 of this chapter."
SECTION 3. Section 56-5-6540 of the 1976 Code is amended to read:
"Section 56-5-6540. (A) A person violating the provisions of this article, upon conviction, must be fined not more than ten twenty-five dollars, all or part of which may be suspended. No court costs, assessments, or surcharges may be assessed against the person convicted. No person may be fined more than twenty fifty dollars for
(B) A law enforcement officer may not stop and issue a citation to a driver solely for a violation of this article in the absence of another violation of the motor vehicle laws except when a driver under the age of eighteen years or an occupant of the motor vehicle under the age of eighteen years of age is not wearing a safety belt or is not secured in a child restraint system as required by Article 47, or except when the stop is made in conjunction with a driver's license check or registration check conducted at a checkpoint established to stop all drivers on a certain road for a period of time. A citation for a violation of this article must not be issued without citing the violation that initially caused the officer to effect the enforcement stop.
(C) A violation of this article does not constitute negligence per se or contributory negligence and is not admissible as evidence in a civil action.
(D) Probable cause for a violation of this article must be based on a law enforcement officer's clear and unobstructed view of a person under the age of eighteen not restrained as required by this article. No vehicle, driver, or occupant in a vehicle may be searched solely as a result of a violation of this article."
SECTION 4. This act takes effect July 1, 2001, and applies to all offenses committed on or after that date. /
Amend title to conform.
Rep. TOWNSEND explained the amendment.
Rep. SIMRILL made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 384 (Word version) -- Senators Verdin, Branton, Ryberg, Patterson and Ritchie: A BILL TO AMEND SECTION 56-3-630, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPARTMENT OF PUBLIC SAFETY CLASSIFYING CERTAIN MOTOR VEHICLES AS PRIVATE PASSENGER MOTOR VEHICLES, SO AS TO REVISE THE MAXIMUM EMPTY WEIGHT OF A TRUCK THAT THE DEPARTMENT SHALL CLASSIFY AS A PRIVATE PASSENGER MOTOR VEHICLE.
Rep. MARTIN made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
S. 495 (Word version) -- Senators Wilson, Verdin and McConnell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-3-1265 SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY MUST DISPLAY IN ALL DIVISION OF MOTOR VEHICLE OFFICES WHERE MOTOR VEHICLE LICENSE PLATES OR STICKERS MAY BE OBTAINED OR RENEWED EXAMPLES OF ALL TYPES OF SPECIAL LICENSE PLATES WHICH INDIVIDUALS OF A PARTICULAR GROUP MAY OBTAIN, AND TO PROVIDE EXCEPTIONS.
Rep. TOWNSEND made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 3034 (Word version) -- Rep. Lucas: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-104-25 SO AS TO ESTABLISH CRITERIA FOR THE AWARDING OF PALMETTO FELLOWS SCHOLARSHIPS TO STUDENTS GRADUATING IN 2001 AND THEREAFTER WHO ATTEND "MAGNET SCHOOLS" OR SCHOOLS WITH "OPEN ENROLLMENT".
Rep. TOWNSEND made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 3974 (Word version) -- Rep. Cato: A BILL TO AMEND SECTION 37-17-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF PERSONS WHO SELL PRESCRIPTION DRUG DISCOUNT CARDS, SO AS TO PROVIDE THAT SUCH PERSONS MUST REGISTER AND REPORT TO THE DEPARTMENT OF CONSUMER AFFAIRS, RATHER THAN TO THE DEPARTMENT OF INSURANCE; TO AMEND SECTION 38-5-80, AS AMENDED, RELATING TO REQUIREMENTS TO OBTAIN A LICENSE TO CONDUCT INSURANCE BUSINESS IN THIS STATE, SO AS TO CLARIFY WHAT BOOKS AND RECORDS OF AN INSURER MUST BE MAINTAINED IN THIS STATE; TO AMEND SECTION 38-31-20, AS AMENDED, RELATING TO DEFINITIONS IN THE SOUTH CAROLINA PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACT, SO AS TO INCLUDE NEW DEFINITIONS AND REVISE CERTAIN EXISTING DEFINITIONS; TO AMEND SECTION 38-31-60, RELATING TO THE POWERS AND DUTIES OF THE SOUTH CAROLINA PROPERTY AND CASUALTY GUARANTY ASSOCIATION, SO AS TO PROVIDE THAT THE ASSOCIATION'S OBLIGATION TO AN INSURED CEASES WHEN TEN MILLION DOLLARS HAS BEEN PAID TO
The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\AMEND\ 11630AC01), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
"(4) The administrator, as defined in Section 37-1-301, shall by regulation announce publish a notice in the State Register:
(a) On or before April thirtieth of each year in which dollar amounts are to change, the changes in dollar amounts required by subsection (2); and
(b) Promptly after the changes occur, changes in the index required by subsection (3) including, if applicable, the numerical equivalent of the Reference Base Index under a revised Reference Base Index and the designation or title of any index superseding the index."
SECTION 2. Section 37-6-108(1) of the 1976 Code is amended to read:
"(1) After notice and hearing the administrator may order a creditor or, a person acting in his behalf, or a person subject to this title to cease and desist from engaging in violations of this title. A respondent aggrieved by an order of the administrator may obtain judicial review of the order and the administrator may obtain an order of the court for enforcement of its order in the court of common pleas. The proceeding for review or enforcement is initiated by filing a petition in the court. Copies of the petition shall must be served upon all parties of record."
SECTION 3. Section 37-6-111(1) of the 1976 Code is amended to read:
"(1) The administrator may bring a civil action to restrain a person to whom this part title applies from engaging in a course of:
(a) making or enforcing unconscionable terms or provisions of consumer credit transactions;
(b) fraudulent or unconscionable conduct in inducing consumers to enter into consumer credit transactions;
(c) conduct of any of the types specified in paragraph item (a) or (b) with respect to transactions that give rise to or that lead persons to believe will give rise to consumer credit transactions; or
(d) fraudulent or unconscionable conduct in the collection of debts arising from consumer credit transactions."
SECTION 4. Section 37-6-113(1) of the 1976 Code is amended to read:
"(1) After demand, the administrator may bring a civil action against a creditor or a person subject to this title to recover actual damages sustained and excess charges paid by one or more consumers who have a right to recover explicitly granted by this title. In a civil
"(2) The administrator may bring a civil action against a creditor or, a person acting in his behalf, or a person subject to this title to recover a civil penalty of no more than five thousand dollars for repeatedly and intentionally violating this title. A civil penalty pursuant to this subsection may not be imposed for a violation of this title occurring more than two years before the action is brought."
SECTION 6. Section 37-17-10 of the 1976 Code, as added by Act 400 of 2000, is amended to read:
"Section 37-17-10. (A) It is unlawful for a person to sell, market, promote, advertise, or distribute a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases unless:
(1) the person is registered with the Department of Insurance Consumer Affairs for this express purpose;
(2) the card or other purchasing mechanism or device expressly states in bold and prominent type, prominently placed, that the discounts are not insurance;
(3) documentation is provided to the Department of Insurance Consumer Affairs that the discounts are specifically authorized and the person has a separate contract with each pharmacy or pharmacy chain
(4) the discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are not misleading, deceptive, or fraudulent.
(B)(1) A person who sells, markets, promotes, advertises, or distributes a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases in this State shall designate a resident of this State as an agent for service of process and register the agent with the Secretary of State.
(2) In the absence of proper registration under subsection (B)(1), the Secretary of State is designated as an agent upon whom process may be served. Service of any process on the Secretary of State may be made by delivering to and leaving with the Secretary of State, or with any person designated by him to receive such service, duplicate copies of the process, notice, or demand. The Secretary of State shall forward one of the copies by registered or certified mail, return receipt requested, to the person required to register under subsection (B(1) at the last known physical address to the party serving process. Refusal to sign the return receipt does not affect the validity of the service. Service is effective under this subsection as of the date shown on the return receipt or five days after its deposit in the mail, whichever is earlier. The Secretary of State may charge a fee of ten dollars for the service. This subsection does not affect the right to serve process in any manner otherwise provided by law.
(C)(1) A person who violates subsection (A) is guilty of a misdemeanor and upon conviction must be imprisoned for not more than six months or fined not more than one thousand dollars, or both; for a second or subsequent violation a person must be imprisoned for not more than two years or fined not more than five thousand dollars, or both.
(2) Notwithstanding subsection (C)(1), a person who violates this chapter is subject to all civil and administrative remedies available in this title.
(D) This section does not apply to:
(1) a pharmacy holding a permit issued pursuant to Title 40, Chapter 43;
(2) eye or vision care services or glasses or contact lenses provided by an optometrist or ophthalmologist;
(3) an insured Any benefit or program offered in conjunction with a health insurance plan administered by a health insurer, health care service contractor, or health maintenance organization regulated under Title 38; or
(4) an insured benefit administered by, or under contract with, the State of South Carolina.
(E) For purposes of this section, "person" means an individual, corporation, partnership or any other business entity, including but not limited to, a health maintenance organization, an insurance company, or a third party payor. Representatives of corporations, partnerships, or other business entities must be registered before they shall offer services under this section.
(F) The department may promulgate regulations as necessary to assist in administering this chapter, including, but not limited to, regulations concerning assessment of registration fees and standards for corporate and individual representative registration."
SECTION 7. Section 38-5-80(k) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(k) The insurer's principal place of business and primary executive, administrative, and home offices and all original books and records of the insurer are located and maintained in this State. The provisions of this subsection apply to domestic health maintenance organizations. For purposes of this section, original books and records mean corporate bylaws, charters, articles of incorporation, and any other records deemed to constitute original records by the director or his designee. Insurers desiring to move business records or operations outside of the State shall apply to the director or his designee for approval. Approvals or denials of request to move records or operations fall within the discretion of the director or his designee. The director may also rescind approval of a request if in his discretion it is considered to be in the best interest of the consumers and citizens of the State. Insurers must comply with the records requirements of Section 38-5-190 and the requirements for domestic insurers set forth in this chapter. The director or his designee shall outline via bulletin or order the information required in such an application. Item (k) of this section does not apply to any domestic insurer whose primary executive, administrative, and home offices were located outside this State on July 1, 1987. If subsequently the director or his designee is of the opinion that a condition exists which would have prohibited him from issuing the original certificate of authority or license to the
"(2) The term 'control' (including the terms 'controlling', 'controlled by', and 'under common control with') means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by Section 38-21-220 that control does not exist in fact. The director or his designee may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support his determination, that control exists in fact, notwithstanding the absence of a presumption to that effect."
SECTION 9. Section 38-31-20 of the 1976 Code, as last amended by Act 97 of 1995, is further amended to read:
"Section 38-31-20. As used in this chapter:
(1) 'Account' means any one of the four accounts created by Section 38-31-40.
(2) 'Affiliate' means a person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an insolvent insurer on December thirty-first of the year next preceding the date the insurer becomes an insolvent insurer.
(3) 'Affiliate of the insolvent insurer' means a person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with an insolvent insurer on December thirty-first of the year next preceding the date the insurer becomes an insolvent insurer.
(4) 'Association' means the South Carolina Property and Casualty Insurance Guaranty Association created under Section 38-31-40.
(5) 'Association similar to the association' means any guaranty association, security fund, or other insolvency mechanism which affords protection similar to that of the association. The term also
(4)(6) 'Claimant' means any insured making a first party claim or any person instituting a liability claim. However, no person who is an affiliate of the insolvent insurer may be a claimant.
(5)(7) 'Control' means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person directly or indirectly owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing that control does not exist in fact.
(6)(8) 'Covered claim' means an unpaid claim, including one of unearned premiums, which arises out of and is within the coverage and is subject to the applicable limits of an insurance policy to which this chapter applies issued by an insurer, if the insurer is an insolvent insurer and (a) the claimant or insured is a resident of this State at the time of the insured event, if for entities other than an individual, the residence of a claimant or insured is the state in which its principal place of business is located at the time of the insured event or (b) the claim is for first-party benefits for damage to property permanently located in this State. 'Covered claim' does not include:
(a) any amount awarded as extra-contractual damages unless awarded against the association;
(b) any amount sought as a return of premium under any retrospective rating plan; or
(c) any amount due any reinsurer, insurer, insurance pool, or underwriting association as subrogation recoveries, reinsurance recoveries, contribution, indemnification, or otherwise. No such claim for any amount due any reinsurer, insurer, insurance pool, or underwriting association may be asserted against a claimant or a person insured under a policy issued by an insolvent insurer other than to the extent such a claim exceeds the association obligation limitations set forth in Section 38-31-60;
(d) any first party claim by an insured whose net worth exceeds ten million dollars on December thirty-first of the year next preceding the date the insurer becomes an insolvent insurer; provided
(e) any first party claims by an insured which is an affiliate of the insolvent insurer;
(f) any fee or other amount relating to goods or services sought by or on behalf of any attorney or other provider of goods or services retained by the insolvent insurer or an insured prior to the date it was determined to be insolvent;
(g) any fee or other amount sought by or on behalf of any attorney or other provider of goods or services retained by any insured or claimant in connection with the assertion or prosecution of any claim, covered or otherwise, against the association; or
(h) any claims for interest.
(7)(9) 'Insolvent insurer' means an insurer (a) licensed to transact insurance in this State either at the time the policy was issued or when the insured event occurred and (b) determined to be insolvent by a court of competent jurisdiction in the insurer's state of domicile or of this State and which the director or his designee has found fails to meet its obligation to policyholders in this State.
(10) 'Insured' means any named insured, any additional insured, any vendor, lessor, or any other party identified as an insured under the policy.
(8)(11) 'Member insurer' means any person who (a) writes any kind of insurance to which this chapter applies under Section 38-31-30, including the exchange of reciprocal or interinsurance contracts, and (b) is licensed to transact insurance in this State. An insurer shall cease to be a member insurer effective on the day following the termination or expiration of its license to transact the kinds of insurance to which this chapter applies; however, the insurer shall remain liable as a member insurer for any and all obligations, including obligations for assessments levied prior to the termination or expiration of the insurer's license and assessments levied after the termination or expiration, which relate to any insurer which became an insolvent insurer prior to the termination or expiration of such insurer's license.
(9)(12) 'Net direct written premiums' means direct gross premiums written in this State on insurance policies to which this chapter applies, less return premiums on the policies and dividends paid or credited to policyholders on the direct business. It does not include premiums on contracts between insurers or reinsurers.
(13) 'Person' means an individual, corporation, partnership, association, voluntary organization, or governmental entity.
SECTION 10. Section 38-31-60(a) of the 1976 Code, as last amended by Act 517 of 1994, is amended by adding at the end:
"(iv) Notwithstanding any other provisions of this chapter, except in the case of a claim for benefits under worker's compensation coverage, any obligation of the association to or on behalf of an insured and its affiliates on all covered claims combined shall cease when ten million dollars shall have been paid in the aggregate by the association and any one or more associations similar to the association of any other state or states, to or on behalf of that insured, its affiliates, and additional insureds on covered claims or allowed claims arising under the policy or policies of any one insolvent insurer. If the association determines that there may be more than one claimant having a covered claim or allowed claim against the association, or any associations similar to the association in other states, under the policy or policies of any one insolvent insurer, the association may establish a plan to allocate amounts payable by the association in such manner as the association in its discretion considers equitable."
SECTION 11. Section 38-31-70(3)(d) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(d) Establish procedures by which claims may be filed with the association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer is considered notice to the association or its agent and a list of these claims must be periodically submitted to the association or similar organization an association similar to the association in another state by the receiver or liquidator."
SECTION 12. Section 38-31-70(4) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(4) The plan of operation may provide that any or all powers and duties of the association, except those under items (c) and (i) of Section 38-31-60, are delegated to a corporation, an association similar to the association, or other another organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. This corporation, association, or organization must be reimbursed as a servicing facility would be reimbursed and must be paid for its performance of any other functions of the association. A delegation under this subsection (4) takes effect only with the approval of both the board of directors and the director or his designee and may be made only to a corporation, association, or
"Section 38-31-90. (1) Any A person recovering under this chapter is considered to have assigned his rights under the policy to the association to the extent of his recovery from the association. Every insured or claimant seeking the protection of this chapter shall cooperate with the association to the same extent as he would have been required to cooperate with the insolvent insurer. The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out except the causes of action the insolvent insurer would have had if the sums had been paid by the insolvent insurer and except as provided in subsection (2). In the case of an insolvent insurer operating on a plan with assessment liability, payments of claims of the association do not operate to reduce the liability of insureds to the receiver, liquidator, or statutory successor for unpaid assessments.
(2) The association has the right to recover from the following persons the amount of any 'covered claim' paid on behalf of such person pursuant to this chapter;
(a) an insured whose net worth on December thirty-one of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds twenty-five million dollars and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter; and
(b) a person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this chapter.
(3) The receiver, liquidator, or statutory successor of an insolvent insurer is bound by settlements of covered claims by the association or a similar organization an association similar to the association in another state. The court having jurisdiction shall grant these claims priority equal to that to which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer. The expenses of the association or similar organization an association similar to the association in handling claims must be accorded the same priority as the liquidator's expenses.
(3)(4) The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the
"Section 38-31-100. (1) Any A person, having a claim against an insurer under any provision in an insurance policy other than a policy of an insolvent insurer which is also a covered claim, is under an insurance policy, whether or not it is a policy issued by a member insurer, and the claim under such other policy arises from the same facts, injury, or loss that gave rise to the covered claim against the association, is required to exhaust first exhaust his right under that all coverage and limits provided by any such policy. Any amount payable on a covered claim under this chapter must be reduced by the amount of any recovery under that insurance policy full limits of such other coverage as set forth on the declarations page and the association shall receive a full credit for such limits, or, where there are no applicable limits, the claim must be reduced by the total recovery. Notwithstanding the foregoing, no person may be required to exhaust all coverage and limits under the policy of an insolvent insurer.
(a) A claim under a policy providing liability coverage to a person who may be jointly and severally liable with or a joint tortfeasor with the person covered under the policy of the insolvent insurer that gives rise to the covered claim must be considered to be a claim arising from the same facts, injury, or loss that gave rise to the covered claim against the association. Any amount payable on a covered claim under this chapter must be reduced by the full and combined policy limits of all joint tortfeasers.
(b) To the extent that the association's obligation is reduced by the application of this section, the liability of the person insured by the insolvent insurer's policy for the claim must be reduced in the same amount.
(2) Any A person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first associations similar to the association must be required first to exhaust all coverage and limits in recovery from the association of the place of residence of the insured except that, if it is a first-party claim for damage to property with a permanent location, he shall seek recovery be required first to exhaust all coverage and limits in recovery from the association of the location of the property, and, if it is a workers' compensation claim, he shall seek recovery be required first to exhaust all coverage and limits in recovery from the association
(3) Any A person having a claim or legal right of recovery under any governmental insurance or guaranty program which is also a covered claim is shall be required first to exhaust first his right all coverage and limits in recovery under the program. Any amount payable on a covered claim under this chapter must be reduced by the full amount of any recovery under the governmental insurance or guaranty program.
(4) No claim held by an insurer, reinsurer, insurance pool, or underwriting association, based on an assignment or on rights of subrogation, or otherwise, may be recovered from a claimant or asserted in any legal action against a person insured under a policy issued by an insolvent insurer or the association except to the extent the amount of the claim exceeds the obligation of the association under this chapter.
(5) Any A person who has liquidated by settlement or judgment a claim against an insured under a policy issued by an insolvent insurer, and the claim is a covered claim and is also a claim within the coverage of any policy issued by a solvent insurer, is must be required to exhaust first to exhaust his rights all coverage and limits provided under the policy issued by the solvent insurer before execution, levy, or any other proceedings are begun to enforce any judgment obtained against or the settlement with the insured of the insolvent insurer. Any amount payable on a covered claim under this chapter, whether through settlement, judgment, or otherwise, must be reduced by the full limits of such other coverage as set forth on the declarations page of the policy issued by the insolvent insurer.
(6) A person having a claim against an insolvent insurer under any provision in an insurance policy is limited to ten million dollars aggregate payout from the association.
(7) A person having a net worth of greater than twenty-five million dollars and having a claim against an insolvent insurer under any provision in an insurance policy may not make a claim against the association."
SECTION 15. Section 38-33-80(A)(2) and (C) of the 1976 Code, as last amended by Act 181 of 1993, are further amended to read:
"(2) No Evidence of coverage, or an amendment thereto to it, may not be issued or delivered to any a person in this State until a copy of the form of the evidence of coverage, or amendment thereto to it, has been filed with and approved by the director or his designee pursuant to Section 38-71-310(A) or 38-71-720(A).
(C) The director or his designee shall approve, within a reasonable period, approve thirty days any form if the requirements of subsection (A) are met and. The director or his designee, in his discretion, may extend for up to an additional sixty days the period within which he shall approve or disapprove the form. The director or his designee shall approve, within a reasonable period, any schedule of charges if the requirements of subsection (B) are met. It is unlawful to issue a form or to use a schedule of charges until approved. If the director or his designee disapproves the filing, he shall notify the filer. The notice must contain the reasons for disapproval, and the filer, upon request in writing, is entitled to a public hearing thereon on it. If no action is not taken to approve or disapprove any form or schedule of charges within ninety thirty days of the filing of the forms or charges form, if the period is not extended, or at the expiration of the extended period, if any, the filing is deemed approved. If action is not taken to approve or disapprove any schedule of charges within ninety days of the filing of the charges, the filing is deemed approved. An organization may not use a form or schedule of charges deemed approved pursuant to the default provision of this section until the organization has filed with the director or his designee a written notice of its intent to use the form or schedule of charges. The notice must be filed in the office of the director at least ten days before the organization uses the form or schedule of charges."
SECTION 16. Section 38-39-90(f) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(f) If the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium service company shall hold the surplus in a fiduciary capacity and promptly refund the excess to the insured or the agent of record. No refund is required if it amounts to less than three five dollars."
SECTION 17. Section 38-43-80(B) of the 1976 Code, as amended by Section 11H, Part II, Act 501 of 1992, is further amended to read:
"(B) The fees must be paid in advance. License fees for local, state, or special agents must be paid by the insurer for whom the agent proposed to act or by which the proposed agent is vouched for in the
"Section 38-55-30. Except as otherwise provided in this title, no insurer or captive doing business in this State may expose itself to a loss on one risk in an amount exceeding ten percent of its surplus to policyholders. A risk or portion of it which has been reinsured must be deducted in determining the limitation of risk prescribed in this section. As used in this section, "captive" means an insurance company owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies, or for groups and associations, an insurance organization owned by the insureds whose exclusive purpose is to insure risks of member organizations or group members and their affiliates, or both. This section does not apply to captive insurers."
SECTION 19. The 1976 Code is amended by adding:
"Section 38-55-75. The Department of Insurance may receive and shall maintain as confidential any documents or information furnished to the department by the National Association of Insurance Commissioners or insurance departments of other states which is classified as confidential by that association or state. The Department of Insurance may share documents or information, including confidential documents or information, with the National Association of Insurance Commissioners or insurance departments of other states if the association or other state agrees to maintain the same level of confidentiality as is provided under South Carolina law. Documents or information received or exchanged pursuant to this section are not subject to subpoena or subpoena duces tecum in any civil, criminal, or administrative proceeding."
SECTION 20. Section 38-61-20 of the 1976 Code, as last amended by Act 312 of 2000, is further amended to read:
"Section 38-61-20. (A) It is unlawful for an insurer doing business in this State to issue or sell in this State any a policy, contract, or certificate until it has been filed with and approved by the director or his designee. The director or his designee may disapprove the form if it:
(1) does not meet the requirements of law,;
(2) contains any provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory,; or
(3) is going to be solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
However, this subsection does not apply to surety contracts or fidelity bonds, except as required in Section 38-15-10, or to insurance contracts, riders, or endorsements prepared to meet special, unusual, peculiar, or extraordinary conditions applying to an individual risk or exempt commercial policies.
(B) Within thirty days after the filing of a form requiring approval, the director or his designee shall notify the organization filing the form of the approval or disapproval of the form, and the reason if the form is disapproved. The director or his designee, in his discretion, may extend for up to an additional sixty days the period within which he shall approve or disapprove the form. A form received, but neither approved nor disapproved by the director or his designee, is deemed approved at the expiration of the thirty days if the period is not extended, or at the expiration of the extended period, if any. An organization may not use a form deemed approved pursuant to the default provision of this section until the organization has filed with the director or his designee a written notice of its intent to use the form. The notice must be filed in the office of the director at least ten days before the organization uses the form.
(C) At any time after having given written approval, and after an opportunity for a hearing for which at least thirty days' written notice has been given, the director or his designee may withdraw approval if he finds that the forms form:
(1) do does not meet the requirements of law,;
(2) contain any contains provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory,; or
(3) are being is solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
(C)(D) The director or his designee may exempt from the requirements of subsection (A) as long as he considers proper any type of insurance policy, contract, or certificate to which in his opinion subsection (A) practically must not be applied, or the filing and approval of which, in his opinion, is not necessary for the protection of the public. However, every each insurer at least annually shall list the types and form numbers of all policies it issues or sells in this State which the director or his designee has exempted from being filed and approved, and an officer of the insurer shall certify that all of these
(D)(E) Nothing in this chapter precludes the issuance of a life insurance contract that includes an optional accident, health, or accident and health insurance rider. However, the optional accident, health, or accident and health insurance rider must be filed with and approved by the director or his designee pursuant to Section 38-71-310, 38-71-720, or 38-71-740, as appropriate, and comply with all applicable sections of Chapter 71 of this title and, in addition, in the case of long term care insurance, Chapter 72 of this title."
SECTION 21. Section 38-61-40 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-61-40. All insurers licensed to transact insurance business in this State shall comply with the standards prescribed by regulation of the department. The director or his designee is empowered to recall withdraw approval or certification on all existing policies of commonly purchased insurance that do not comply with Section 38-61-30."
SECTION 22. Section 38-65-60(3) of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"(3) Upon request of the director or his designee, copies of policies and certificates under a policy of group life insurance issued outside this State and covering residents of this State must be made available on an informational basis only. However, mass-marketed life insurance policies and certificates shall must have prior approval of the director or his designee pursuant to Section 38-61-20 before they can be offered for sale to residents of this State."
SECTION 23. Section 38-71-310(A) and (F) of the 1976 Code, as last amended by Act 411 of 1998, are further amended to read:
"(A) No A policy or certificate of accident, health, or accident and health insurance may not be issued or delivered in this State, nor may any application, endorsement, or rider which becomes a part of the policy be used, until a copy of its form has been filed with and approved by the director or his designee, except as exempted by regulation of the department the director or his designee as permitted by Section 38-61-20. The director or his designee may disapprove the form if the form:
(1) does not meet the requirements of law,;
(2) contains any provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory,; or
(3) is going to be solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
The director or his designee shall notify in writing, as soon as is practicable, the insurer which that has filed the form of his approval or disapproval. In the event of disapproval If the form is disapproved, the notice must contain the reasons for disapproval, and the insurer is entitled to a public hearing thereon on that decision. If no action has been is not taken to approve or disapprove a policy or certificate, application, endorsement, or rider after the documents have document has been filed for ninety thirty days, they are it is deemed to be approved. The director or his designee, in his discretion, may extend for up to an additional sixty days the period for approval or disapproval of the form. An organization may not use a form deemed approved pursuant to the default provision of this section until the organization has filed with the director or his designee a written notice of its intent to use the form. The notice must be filed in the office of the director at least ten days before the organization uses the form.
(F) Nothing in this chapter precludes the issuance of an individual accident, health, or accident and health insurance policy that includes an optional life insurance rider. However, the optional life insurance rider must be filed with and approved by the director or his designee pursuant to Section 38-61-20 and comply with all applicable sections of Chapter 63 and, in addition, in the case of a life insurance rider with accelerated long term care benefits, Chapter 72 of this title."
SECTION 24. Section 38-71-720 of the 1976 Code, as last amended by Act 411 of 1998, is further amended to read:
"Section 38-71-720. (A) A policy or contract of group accident, group health, or group accident and health insurance may not be issued or delivered in this State, nor may any application, endorsement, or rider which becomes a part of the policy be used, until a copy of the form has been filed with and approved by the director or his designee except as exempted by regulation of the department the director or his designee as permitted by Section 38-61-20. The director or his designee may disapprove the form if the form:
(1) does not meet the requirements of law;
(2) contains provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory; or
(3) is going to be solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
However, If no action has been is not taken to approve or disapprove a policy, contract, certificate, application, endorsement, or rider after the documents have document has been filed for ninety thirty days, the it may be issued and delivered until or unless subsequently disapproved by the director or his designee is deemed to be approved. This time period may be extended thirty days if the director or his designee gives written notice to the filer that he needs additional time to review the filing. The director or his designee, in his discretion, may extend for up to an additional sixty days the time period for approval or disapproval of the form. An organization may not use a form deemed approved pursuant to the default provision of this section until the organization has filed with the director or his designee a written notice of its intent to use the form. The notice must be filed in the office of the director at least ten days before the organization uses the form. The director or his designee, as soon as is practicable, shall notify in writing the insurer which has filed the form of his approval or disapproval. If the form is disapproved, the notice must contain the reasons for disapproval and the insurer is entitled to a public hearing on it that decision. At any time after having given written approval, the director or his designee, after a public hearing of which at least thirty days' written notice has been given, may withdraw approval if he finds that the forms form:
(1) do does not meet the requirements of law;
(2) contain contains provisions which are unfair, deceptive, ambiguous, misleading, or unfairly discriminatory; or
(3) are being is solicited by means of advertising, communication, or dissemination of information which is deceptive or misleading.
The withdrawal of approval must be effected by written notice to the insurer and the insurer is entitled to a public hearing on it that decision. Any action or decision of the director or his designee to withdraw approval may be appealed to the Administrative Law Judge Division in accordance with Section 38-3-210.
(B) Nothing in this chapter precludes the issuance of a policy or contract of group accident, group health, or group accident and health insurance that includes an optional life insurance rider. However, the optional life insurance rider must be filed with and approved by the director or his designee pursuant to Section 38-61-20 and comply with
"(3) Upon request of the director or his designee, copies of policies and certificates under a policy of group accident, group health, or group accident and health insurance issued outside this State and covering residents of this State must be made available on an informational basis only. However, mass-marketed accident, health, or accident and health insurance policies and certificates shall must receive prior approval of the director or his designee pursuant to Section 38-71-720 before they can be offered for sale to residents of this State."
SECTION 26. Section 38-71-1370 of the 1976 Code, as amended by Act 5 of 1997, is further amended to read:
"(A) Except to the extent inconsistent with specific provisions of this article, all provisions of Article 5, are applicable to any insurance plans required to be offered by small employer insurers.
(B) Late enrollees may be excluded from coverage for the greater of eighteen months or an eighteen month preexisting condition exclusion; however, if both a period of exclusion from coverage and a preexisting condition exclusion are applicable to a late enrollee, the combined period may not exceed eighteen months."
SECTION 27. Section 38-71-1980(F)(3) and (4) of the 1976 Code, as added by Act 380 of 2000, is amended to read:
"(3) If the notice provided pursuant to subsection (H)(1) (F)(1) was not in writing, within two days after the date of providing that notice, the independent review organization shall:
(a) provide written confirmation of the decision to the covered person or his authorized representative and the health carrier; and
(b) include the information set forth in Section 38-71-1970(H)(3).
(4) As expeditiously as reasonably possible after receipt of the notice of a decision pursuant to subsection (H)(1) (F)(1) reversing the adverse determination or final adverse determination, the health carrier shall approve the covered benefit that was the subject of the adverse determination or final adverse determination, subject to applicable contract exclusions, limitations, or other provisions."
SECTION 28. Section 38-73-1300 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-73-1300. Any A member of or subscriber to a rating organization to whom the provisions of Article 3 of this chapter are applicable may make written application to the director or his designee for permission to file a deviation modification from the class rates loss costs, schedules, rating plans, or rules respecting any kind of insurance or class of risk within a kind of insurance or any combination thereof of them. The application shall must specify the basis for the modification. A copy of the application must be sent simultaneously to the rating organization."
SECTION 29. Section 38-73-1310 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:
"Section 38-73-1310. Any A member of or subscriber to a rating organization to whom the provisions of Article 5 of this chapter are applicable may make written application to the department for permission to file a uniform percentage decrease or increase to be applied to the premiums produced by the rating system so filed for a kind of insurance or for a class of insurance which is found by the director or his designee to be a proper rating unit for the application of such uniform percentage decrease or increase or for a subdivision of a kind of insurance (a) comprised of a group of manual classifications which is treated as a separate unit for rate-making purposes or (b) for which separate expense provisions are included in the filings of the rating organization. The application shall must specify the basis for the modification and must be accompanied by the data upon which the applicant relies. A copy of the application and data must be sent simultaneously to the rating organization."
SECTION 30. Section 38-87-40(3)(a) of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"(a) Each risk retention group is liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this State and shall report to the director or his designee the net premiums written for risks resident or located within this State. Such risk retention group is subject to taxation, including any applicable fines and penalties related thereto, on the same basis as a foreign an admitted insurer."
SECTION 31. Section 38-90-60(E) of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"(E) The articles of incorporation, the certificate issued pursuant to subsection (D), and the organization fees required by Section 38-90-20(D) 33-1-220 must be transmitted to the Secretary of State, who shall record both the articles of incorporation and the certificate."
"(A) A captive insurance company shall pay to the director department by March 1 of each year, a tax at the rate of four-tenths of one percent on the first twenty million dollars and three-tenths of one percent on the next twenty million dollars and two-tenths of one percent on the next twenty million dollars and seventy-five thousandths of one percent on each dollar thereafter on the direct premiums collected or contracted for on policies or contracts of insurance written by the captive insurance company during the year ending December 31 next preceding, after deducting from the direct premiums subject to the tax the amounts paid to policyholders as return premiums which shall include dividends on unabsorbed premiums or premium deposits returned or credited to policyholders.
(B) A captive insurance company shall pay to the director department by March 1 of each year, a tax at the rate of two hundred and twenty-five thousandths of one percent on the first twenty million dollars of assumed reinsurance premium, and one hundred fifty thousandths of one percent on the next twenty million dollars and fifty thousandths of one percent on the next twenty million dollars and twenty-five thousandths of one percent of each dollar thereafter. However, no reinsurance tax applies to premiums for risks or portions of risks which are subject to taxation on a direct basis pursuant to subsection (A). A premium tax is not payable in connection with the receipt of assets in exchange for the assumption of loss reserves and other liabilities of another insurer under common ownership and control if the transaction is part of a plan to discontinue the operations of the other insurer and if the intent of the parties to the transaction is to renew or maintain business with the captive insurance company."
SECTION 33. Section 38-90-180(A) of the 1976 Code, as added by Act 331 of 2000, is amended to read:
"(A) Except as otherwise provided in this section, the terms and conditions set forth in Chapter Chapters 26 and 27 pertaining to insurance reorganizations, receiverships, and injunctions apply in full to captive insurance companies formed or licensed under this chapter."
SECTION 34. Section 56-10-240(A) of the 1976 Code, as amended by Act 459 of 19996, is further amended to read:
"(A) If, during the period for which it is licensed, a motor vehicle is or becomes an uninsured motor vehicle, then the vehicle owner immediately shall obtain insurance on the vehicle or within five days after the effective date of cancellation or expiration of his liability
(1) if the lapse or termination of such insurance or security occurs within three months of issuance, provided that this subsection only applies to new policies, and not renewal or replacement policies; or
(2) the lapse or termination occurs after three months for a resident who fails one or more of the objective standards prescribed in Section 38-73-455."
SECTION 35. Section 56-10-280 of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"Section 56-10-280. (A) Contracts or policies of insurance issued to meet the financial responsibility requirements prescribed in this chapter must be issued for not less than six months. A contract or policy of insurance remains in effect at least sixty days notwithstanding a power of attorney which may purport to give the attorney-in-fact the right to effect cancellation on behalf of the insured. However, a contract or policy may be canceled within the first sixty days only under one or more of the following circumstances:
(1) a check or bank draft tendered by the insured for payment of premium to an agent, an insurance company or a premium finance company is returned unpaid for insufficient funds or other reason by the insured's financial institution. If the check or draft is an initial payment made by an applicant for insurance or a payment made by an insured to renew a policy, the cancellation is effective as of the policy inception or renewal date.
(2) the insured produces satisfactory proof from the department that he has sold or otherwise disposed of the insured vehicle or surrendered its tags and registration.
(3) the insured has secured another policy that meets the financial responsibility requirements prescribed in this chapter.
(B) This section does not prohibit refunds to the insured for cancellations after sixty days resulting from causes other than nonpayment of premium. Where an insurance company or premium finance company cancels a contract or policy pursuant to this section for nonpayment of premium under the circumstances in subsection (A) which occurs within the first sixty days, the insurance company, premium finance company, or agent may charge and collect a fifteen-dollar penalty in addition to that otherwise provided by law, and the penalty charge is not a premium charge."
SECTION 36. Section 38-73-1320 of the 1976 Code is repealed.
SECTION 37. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend totals and title to conform.
Rep. CATO explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
The following Joint Resolution was taken up:
H. 4063 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF EDUCATION, RELATING TO PRINCIPAL EVALUATION PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2558, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Rep. TOWNSEND made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Joint Resolution was taken up:
H. 4064 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO REQUIREMENTS FOR ADDITIONAL AREAS OF CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2567, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Rep. TOWNSEND made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Joint Resolution was taken up:
H. 4065 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO TYPES AND LEVELS OF CREDENTIAL CLASSIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2569, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Rep. TOWNSEND made the Point of Order that the Joint Resolution was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 3307 (Word version) -- Reps. Scott, Knotts, Jennings, Carnell, Govan, Whatley, Dantzler, Lee, Miller, Snow, Breeland, Hosey, Rutherford, J. E. Smith,
Rep. SCOTT spoke against the Bill.
Rep. HARRELL spoke in favor of the Bill.
Rep. COBB-HUNTER spoke against the Bill.
Rep. JENNINGS spoke against the Bill.
Rep. KENNEDY spoke against the Bill.
The question then recurred to the passage of the Bill on third reading.
Rep. J. E. SMITH demanded the yeas and nays which were taken, resulting as follows:
Those who voted in the affirmative are:
Allison Altman Bingham Campsen Chellis Coates Cotty Dantzler Easterday Edge Fleming Frye Gilham Hamilton Harrell Harrison Haskins Hinson Keegan Kelley Klauber Law Leach Limehouse Littlejohn Lucas Martin McGee Meacham-Richardson Merrill Owens Perry Quinn Rice Riser Robinson Rodgers Sandifer Scarborough Sharpe Simrill Sinclair Smith, D.C. Smith, G.M. Smith, J.R. Smith, W.D. Stille Stuart Talley Taylor Thompson Townsend Tripp Trotter Walker Webb White Wilkins Young, J.
Those who voted in the negative are:
Allen Askins Bales Barrett Bowers Breeland Brown, G. Brown, J. Brown, R. Carnell Cato Clyburn Cobb-Hunter Coleman Cooper Davenport Delleney Emory Freeman Gourdine Harvin
Hines, J. Hines, M. Hosey Howard Jennings Kennedy Kirsh Knotts Koon Lee Lloyd Loftis Lourie Mack McCraw McLeod Miller Neal, J.H. Neal, J.M. Ott Parks Phillips Rhoad Rivers Rutherford Scott Sheheen Smith, F.N. Smith, J.E. Snow Vaughn Weeks Whatley Whipper Wilder Young, A.
So, the Bill was read the third time and ordered sent to the Senate.
I voted for this legislation, but with enormous reservations. The House version is a starting point for compromise, but it houses many problems. There are elements within this bill that are good; such as the pre-K program, ensuring free college tuition for those who qualify, and sharing control of the appointees of the lottery commission. Other provisions, such as making the tickets subject to a tax, I believe places a burden not only on the lottery...but the taxpayers of my district and this State.
A fundamental element of every successful business is its marketing campaign. I do agree with certain restrictions regarding advertising: ads should not be targeted to certain groups and the commission should not spend millions of excess dollars to advertise. This money is better spent on scholarships.
We must work hard to ensure the South Carolina Lottery is efficient, responsible and successful. The House version still has a long way to go to ensure this goal. I have full confidence that once the conference committee takes both the House and Senate versions, meshes them together and works out the objectionable differences, we will have a lottery the people of South Carolina will enjoy. I believe the final product will be what everyone desires most...a lottery, which is
Respectfully submitted,
Rep. Michael D. Thompson
The SPEAKER granted Rep. M. HINES a leave of absence for the remainder of the day.
The following Bill was taken up:
S. 496 (Word version) -- Judiciary Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 57 TO TITLE 33, SO AS TO ENACT THE "SOUTH CAROLINA EDUCATION LOTTERY ACT"; TO PROVIDE FOR A STATE LOTTERY AND TO CREATE THE SOUTH CAROLINA EDUCATION LOTTERY CORPORATION TO CONDUCT THE STATE LOTTERY; TO PROVIDE FOR THE CORPORATION'S BOARD MEMBERSHIP, DUTIES, AND POWERS; TO PROVIDE FOR THE CREATION OF A LOTTERY RETAILERS ADVISORY COMMITTEE; TO PROVIDE FOR THE METHOD OF CONTRACTING WITH VENDORS AND RETAILERS; TO PROVIDE FOR THE SALE OF LOTTERY GAME TICKETS AND THE DISTRIBUTION OF PRIZES; TO PROVIDE FOR ALLOCATION OF LOTTERY PROCEEDS WHICH MUST BE USED FOR EDUCATIONAL PURPOSES AND PROGRAMS; TO PROVIDE CRIMINAL PENALTIES FOR SELLING A LOTTERY TICKET TO A MINOR, PURCHASING A LOTTERY TICKET AS A MINOR, AND DEFRAUDING OR OTHERWISE TAMPERING WITH THE LOTTERY OR MAKING MATERIAL REPRESENTATIONS IN AN APPLICATION OR REPORT IN CONNECTION WITH THE LOTTERY; TO CREATE A SOUTH CAROLINA EDUCATION LOTTERY OVERSIGHT COMMITTEE; TO PROVIDE FOR SET-OFF DEBT COLLECTION FROM PRIZE WINNINGS; TO ESTABLISH THE SOUTH CAROLINA EDUCATION LOTTERY ACCOUNT INTO WHICH THE NET PROCEEDS RECEIVED FROM THE STATE EDUCATION LOTTERY MUST BE DEPOSITED AND TO PROVIDE FOR SPECIFIED PURPOSES FOR THE PROCEEDS; TO AMEND
Rep. HARRELL spoke in favor of the Bill.
Rep. VAUGHN spoke in favor of the Bill.
Rep. ROBINSON spoke in favor of the Bill.
Rep. QUINN spoke in favor of the Bill.
Rep. J. E. SMITH spoke against the Bill.
Rep. KENNEDY moved that the House recede until 3:00 p.m.
Rep. SANDIFER demanded the yeas and nays which were taken, resulting as follows:
Those who voted in the affirmative are:
Allen Bowers Cooper Hines, J. Jennings Kennedy Lourie McLeod Miller Rivers Scott
Those who voted in the negative are:
Allison Altman Barfield Barrett Bingham Breeland Campsen Carnell Cato
Coates Coleman Dantzler Davenport Delleney Easterday Edge Fleming Frye Gilham Gourdine Hamilton Harrell Harrison Haskins Hinson Keegan Kelley Kirsh Klauber Knotts Koon Law Leach Lee Limehouse Littlejohn Loftis Lucas Martin McCraw McGee Meacham-Richardson Merrill Owens Perry Phillips Quinn Rhoad Rice Riser Robinson Rodgers Sandifer Scarborough Sharpe Sheheen Sinclair Smith, D.C. Smith, F.N. Smith, G.M. Smith, J.E. Smith, J.R. Smith, W.D. Snow Stuart Talley Taylor Thompson Trotter Vaughn Walker Webb Weeks Whatley Whipper White Wilkins Young, A. Young, J.
So, the House refused to recede.
Rep. J. E. SMITH continued speaking.
Rep. MEACHAM-RICHARDSON spoke in favor of the Bill.
Rep. DELLENEY spoke against the Bill.
Rep. ALTMAN spoke in favor of the Bill.
Rep. JENNINGS spoke against the Bill.
Rep. W. D. SMITH spoke in favor of the Bill.
Rep. KNOTTS spoke in favor of the Bill.
The question then recurred to the passage of the Bill on third reading.
Those who voted in the affirmative are:
Allison Altman Bingham Brown, J. Campsen Chellis Coates Cotty Dantzler Easterday Edge Fleming Frye Gilham Hamilton Harrell Harrison Haskins Hinson Keegan Kelley Klauber Knotts Law Leach Limehouse Littlejohn Lucas Martin McGee Meacham-Richardson Merrill Owens Perry Quinn Rice Riser Robinson Rodgers Sandifer Scarborough Sharpe Simrill Sinclair Smith, D.C. Smith, G.M. Smith, J.R. Smith, W.D. Stille Stuart Talley Taylor Thompson Townsend Tripp Trotter Walker Webb White Wilder Wilkins Young, A. Young, J.
Those who voted in the negative are:
Allen Bales Barfield Barrett Bowers Breeland Brown, G. Brown, R. Carnell Clyburn Coleman Cooper Davenport Delleney Emory Freeman Gourdine Harvin Hines, J. Hosey Howard Jennings Kennedy Kirsh Koon Lee Lloyd Lourie Mack McCraw McLeod Miller Neal, J.H.
Neal, J.M. Ott Parks Phillips Rhoad Rivers Rutherford Scott Sheheen Smith, F.N. Smith, J.E. Snow Vaughn Weeks Whipper
So, the Bill was read the third time and ordered sent to the Senate.
Rep. J. BROWN moved that the House do now adjourn, which was agreed to.
The Senate returned to the House with concurrence the following:
H. 3783 (Word version) -- Rep. Martin: A CONCURRENT RESOLUTION TO DECLARE THAT APRIL 3, 2001, SYMBOLIZES THE DAY ON WHICH THE WAGES PAID TO AMERICAN WOMEN TO THIS DATE IN 2001, WHEN ADDED TO THEIR EARNINGS FOR THE ENTIRE 2000 CALENDAR YEAR, FINALLY EQUAL THE 2000 EARNINGS OF AMERICAN MEN, AND TO DECLARE APRIL 3, 2001, "EQUAL PAY DAY" IN ORDER TO RECOGNIZE THE FULL VALUE OF A WOMAN'S SIGNIFICANT SKILLS AND CONTRIBUTIONS TO THIS NATION'S LABOR FORCE.
At 2:50 p.m. the House, in accordance with the motion of Rep. J. M. NEAL, adjourned in memory of former Representative Garrett Judson Mobley of Kershaw, to meet at 10:00 a.m. tomorrow.
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