HOUSE JOURNAL for Apr. 15, 2004 - South Carolina Legislature Online

South Carolina General Assembly
115th Session, 2003-2004
Journal of the House of Representatives

Thursday, April 15, 2004
(Statewide Session)

~~Indicates Matter Stricken~~
Indicates New Matter

The House assembled at 10:00 a.m.
Deliberations were opened with prayer by Rev. Charles E. Seastrunk, Jr. as follows:

Our thought for today is from Jeremiah 30:22: "So you will be My people and I will be your God."
Let us pray. Be with us O God of creation, as these men and women strive to serve You and the people of this State. Be to them a source of strength and comfort when they wrestle with decisions to do the right thing. Give Your blessings upon all who serve and work in the government of this State and Nation. Provide them with integrity as they serve. Bless and protect our defenders of freedom. Hear us most merciful Father. 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 yesterday, the SPEAKER ordered it confirmed.

MOTION ADOPTED

Rep. MCLEOD moved that when the House adjourns, it adjourn in memory of James C. Tobias of Columbia, which was agreed to.

SILENT PRAYER

The House stood in silent prayer for the family of Representative James Smith whose grandfather, Captain Paul Bridges Smith, is very ill.

REPORTS OF STANDING COMMITTEE

Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments on:

H. 4756 (Word version) -- Reps. Jennings, Lucas, Freeman, Neilson, Trotter, Frye and Rhoad: A BILL TO AMEND SECTION 50-11-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO HUNTING SEASONS FOR SMALL GAME, SO AS TO EXTEND THE HUNTING SEASON FOR SQUIRREL IN GAME ZONE 5.
Ordered for consideration tomorrow.

Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments on:

H. 4934 (Word version) -- Reps. Witherspoon, Clemmons, Loftis, Edge, Rhoad, Viers, Barfield, Lee, Snow, Duncan, Koon, Frye, Altman, Battle, R. Brown, Chellis, Coates, Davenport, Freeman, Hamilton, Harvin, Haskins, Hosey, Leach, McCraw, Miller, Phillips, Quinn, Sinclair, F. N. Smith, G. R. Smith, J. R. Smith, Stewart, Stille, Townsend, Tripp, Vaughn and Young: A BILL TO AMEND TITLE 48, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ENVIRONMENTAL PROTECTION AND CONSERVATION, BY ADDING CHAPTER 38 SO AS TO ENACT THE "SOUTH CAROLINA ISOLATED WETLANDS ACT OF 2004" WHICH ESTABLISHES A PROGRAM TO REGULATE ISOLATED WETLANDS AND ACTIVITIES IN AND AROUND ISOLATED WETLANDS INCLUDING A REQUIREMENT FOR MITIGATION TO COMPENSATE FOR ISOLATED WETLAND DISTURBANCES, BY ADDING SECTION 12-6-1125 SO AS TO PROVIDE THAT GROSS INCOME SHALL NOT INCLUDE AN AMOUNT RECEIVED BY THE OWNER OF ISOLATED WETLANDS FOR ALLOWING A PERSON TO USE THE ISOLATED WETLANDS IN A COMPATIBLE USE; BY ADDING SECTION 12-6-3525 SO AS TO PERMIT A TAXPAYER TO ELECT TO CLAIM AN INCOME TAX CREDIT IN AN AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF THE FEDERAL DEDUCTION ATTRIBUTABLE TO THE DONATION OF THE ISOLATED WETLANDS LOCATED IN THIS STATE; BY ADDING SECTION 12-37-945 SO AS TO PROVIDE THAT PROPERTY THAT IS MAPPED OR DELINEATED AS ISOLATED WETLANDS MUST BE CONSIDERED UNDEVELOPED PROPERTY FOR AD VALOREM TAX PURPOSES UNTIL SUCH TIME AS THE LANDOWNER OBTAINS A PERMIT THAT ALLOWS THE PROPERTY TO BE DEVELOPED; TO ADD SECTION 48-1-95 SO AS TO PROVIDE THAT ANY NATIONWIDE PERMIT APPLICATION SUBMITTED TO THE DEPARTMENT FOR CONSIDERATION SHALL BE PRESUMED TO COMPLY WITH THE APPLICABLE WATER QUALITY CRITERIA AND COASTAL ZONE MANAGEMENT CRITERIA OF THE STATE WITHOUT ANY FURTHER TERMS OR CONDITIONS IMPOSED BY THE DEPARTMENT AND TO DEFINE "NATIONWIDE PERMIT" FOR THAT PURPOSE; AND TO AMEND SECTION 48-39-210, AS AMENDED, RELATING TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL BEING THE ONLY STATE AGENCY AUTHORIZED TO PERMIT OR DENY ALTERATIONS OR UTILITIZATIONS WITHIN CRITICAL AREAS, SO AS TO REVISE THE MANNER IN WHICH THESE ALTERATIONS OR UTILIZATIONS ARE PERMITTED AND GRANTED.
Ordered for consideration tomorrow.

Rep. WITHERSPOON for the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments.
Rep. VIERS for the minority, submitted an unfavorable report on:

H. 4921 (Word version) -- Reps. Ott, Clark, Cobb-Hunter, Witherspoon, Rhoad, Duncan, Hosey, Clyburn, Weeks, J. H. Neal, Breeland, G. Brown, Freeman, Gilham, J. Hines, Hinson, Koon, Lloyd, Mahaffey, Martin, McCraw, Merrill, Miller, Moody-Lawrence, Pinson, M. A. Pitts, Snow, Stille and Taylor: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 27 TO TITLE 50 SO AS TO ENACT THE ALL-TERRAIN VEHICLE SAFETY ACT BY PROVIDING FOR A DEFINITION OF ALL-TERRAIN VEHICLES, REGULATION OF OPERATION AND SAFETY EQUIPMENT, REGISTRATION AND LICENSING, OPERATOR AND OWNER LIABILITY, AND CRIMINAL AND CIVIL PENALTIES FOR VIOLATIONS.
Ordered for consideration tomorrow.

CONCURRENT RESOLUTION

The following was introduced:

H. 5135 (Word version) -- Reps. McGee and Coates: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO REDUCE THE SPEED LIMIT ON A PORTION OF SOUTHBOROUGH ROAD IN FLORENCE COUNTY.
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

INTRODUCTION OF BILLS

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

H. 5136 (Word version) -- Rep. Littlejohn: A JOINT RESOLUTION TO DIRECT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO CEASE ISSUING NEW AMBULANCE LICENSES UNTIL THE DEPARTMENT HAS THE NECESSARY PERSONNEL TO ENFORCE EXISTING LICENSURE REQUIREMENTS, TO PROVIDE AN EXCEPTION IF A DEMONSTRATED NEED EXISTS, AND TO PROVIDE LICENSURE RENEWAL REQUIREMENTS.
On motion of Rep. LITTLEJOHN, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.

S. 821 (Word version) -- Senators Short and Moore: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING A NEW SECTION AUTHORIZING THE DEPARTMENT OF MOTOR VEHICLES TO ISSUE A SPECIAL COMMEMORATIVE 'BREAST CANCER AWARENESS' MOTOR VEHICLE LICENSE PLATE, TO REQUIRE A FEE OF THIRTY-FIVE DOLLARS ABOVE THAT REQUIRED FOR A STANDARD LICENSE PLATE AND TO REQUIRE THOSE FUNDS BE USED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO EXPAND SERVICES PROVIDED BY THE BEST CHANCE NETWORK.
Referred to Committee on Education and Public Works

S. 965 (Word version) -- Senators Fair, Cromer, Thomas and Martin: A BILL TO AMEND SECTION 20-7-7205, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO, AMONG OTHER THINGS, PROCEDURES FOR TAKING A CHILD INTO CUSTODY FOR A CRIMINAL VIOLATION AND THE DEPARTMENT OF JUVENILE JUSTICE DETENTION PROCEDURES, SO AS TO AUTHORIZE THE DEPARTMENT TO RENDER DETENTION SCREENING SERVICES BY TELEPHONE; TO AMEND SECTION 20-7-7210, AS AMENDED, RELATING TO, AMONG OTHER THINGS, THE PROHIBITION AGAINST CONFINING JUVENILES IN AN ADULT JAIL AND EXCEPTIONS TO THAT PROHIBITION, SO AS TO INCLUDE IN THE EXCEPTIONS, A JUVENILE CHARGED AS AN ADULT WITH A CLASS A, B, C, OR D FELONY; TO AMEND SECTION 20-7-7405, RELATING TO DEPARTMENT OF JUVENILE JUSTICE INTAKE AND PROBATION SERVICES, SO AS TO DELETE THE PROVISION REQUIRING THE BOARD OF JUVENILE PAROLE TO REVIEW AND APPROVE POLICIES RELATING TO THE PROVISION OF INTAKE SERVICES BY THE DEPARTMENT OF JUVENILE JUSTICE; TO AMEND SECTION 20-7-7810, AS AMENDED, RELATING TO THE COMMITMENT OF JUVENILES ADJUDICATED DELINQUENT, SO AS TO PROVIDE THAT THE COURT MAY ORDER A COMMUNITY EVALUATION TO BE CONDUCTED BY THE DEPARTMENT OF JUVENILE JUSTICE AND THAT SUCH EVALUATION IS EQUIVALENT TO A SECURE RESIDENTIAL EVALUATION AND TO AUTHORIZE THE COURT TO WAIVE THE EVALUATION OF A JUVENILE ADJUDICATED DELINQUENT FOR COMMITTING A VIOLENT OFFENSE, THE OFFENSE OF ASSAULT AND BATTERY OF A HIGH AND AGGRAVATED NATURE, OR STRONG ARM ROBBERY BEFORE COMMITMENT OF THAT JUVENILE TO THE DEPARTMENT OF JUVENILE JUSTICE; AND TO REPEAL SECTION 20-7-1335, RELATING TO PROCEDURES FOR AND CIRCUMSTANCES UNDER WHICH JUVENILE RECORDS MAY BE DESTROYED AND CIRCUMSTANCES PROHIBITING THE DESTRUCTION OF SUCH RECORDS.
Referred to Committee on Judiciary

S. 970 (Word version) -- Senators McConnell and Ford: A JOINT RESOLUTION TO ADOPT REVISED CODE VOLUMES 2 AND 20 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO THE EXTENT OF THEIR CONTENTS, AS THE ONLY GENERAL PERMANENT STATUTORY LAW OF THE STATE AS OF JANUARY 1, 2004.
Referred to Committee on Judiciary

S. 997 (Word version) -- Senator Moore: A BILL TO AMEND SECTION 16-17-420 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, TO CHANGE THE MISDEMEANOR PENALTY FOR BEING FOUND GUILTY OF INTERFERING WITH OR DISTURBING STUDENTS OR TEACHERS, LOITERING, OR ACTING OBNOXIOUS ON THE GROUNDS OF ANY SCHOOL OR COLLEGE IN THIS STATE OR BEING ON THE PREMISES WITHOUT PERMISSION EXCEPT ON BUSINESS TO A FINE OF NOT LESS THAN $100 NOR MORE THAN $1,000 OR IMPRISONMENT IN A COUNTY JAIL FOR NOT MORE THAN THIRTY DAYS.
Referred to Committee on Judiciary

S. 1041 (Word version) -- Senators Martin and Ritchie: A BILL TO AMEND SECTION 7-13-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPECIAL ELECTIONS TO FILL VACANCIES IN OFFICE, SO AS TO REPEAL A PROVISION WHICH PROHIBITS WRITE-IN VOTES IN SPECIAL ELECTIONS AND MUNICIPAL GENERAL ELECTIONS.
Referred to Committee on Judiciary

S. 1043 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 31-12-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISSOLUTION OF A MILITARY FACILITIES REDEVELOPMENT AUTHORITY, SO AS TO PROVIDE THAT AN ADOPTED REDEVELOPMENT PLAN AND TAX INCREMENT FINANCE OBLIGATIONS ADOPTED PURSUANT TO THE PLAN REMAIN IN PLACE UPON THE DISSOLUTION OF THE AUTHORITY UNTIL ADOPTION OF A MUNICIPAL ORDINANCE FINALLY DISSOLVING THE TAX ALLOCATION FUND AND TERMINATING THE REDEVELOPMENT PROJECT AREA; TO AMEND SECTION 31-12-210, AS AMENDED, RELATING TO THE ISSUANCE OF OBLIGATIONS FOR A MILITARY FACILITIES REDEVELOPMENT PROJECT BY A MUNICIPALITY, SO AS TO PROVIDE THAT THE OBLIGATIONS MAY BE ISSUED WITHIN FIFTEEN YEARS OF THE MUNICIPALITY'S CONCURRENCE IN THE REDEVELOPMENT PLAN; TO AMEND SECTION 31-12-270, AS AMENDED, RELATING TO THE ADOPTION OF AN ORDINANCE BY A MUNICIPALITY CONCURRING IN THE MILITARY FACILITIES REDEVELOPMENT PLAN, SO AS TO PROVIDE FOR THE TIME PERIOD BY WHICH AN ORDINANCE MUST BE ADOPTED IN WHICH THE TAX ALLOCATION FUND IS DISSOLVED AND THE REDEVELOPMENT PROJECT AREA'S DESIGNATION IS TERMINATED; TO AMEND SECTION 31-12-290, AS AMENDED, RELATING TO THE TAX ALLOCATION FUND AND THE CARRY FORWARD OF UNEXPENDED FUNDS, SO AS TO PROVIDE THAT FUNDS CARRIED FORWARD MAY BE USED ON MILITARY FACILITIES REDEVELOPMENT PROJECT COSTS; AND TO AMEND SECTION 31-12-300, AS AMENDED, RELATING TO THE CERTIFICATION OF THE TOTAL INITIAL EQUALIZED ASSESSED VALUE OF TAXABLE PROPERTY WITHIN A MILITARY FACILITIES REDEVELOPMENT PROJECT AREA, SO AS TO PROVIDE FOR TIME PERIODS BY WHICH THE VALUE MUST BE DETERMINED AND TO REQUIRE COOPERATION AMONG OFFICIALS IN MAKING THAT DETERMINATION.
Referred to Committee on Ways and Means

S. 1058 (Word version) -- Senators Martin and Richardson: A BILL TO AMEND SECTION 15-49-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPLICATION FOR A CHANGE OF A MINOR CHILD'S NAME, SO AS TO PROVIDE THAT A FAMILY COURT JUDGE MAY APPOINT A GUARDIAN AD LITEM AND TO PROVIDE AN EXCEPTION.
Referred to Committee on Judiciary

S. 1103 (Word version) -- Senators Peeler, Hayes and Gregory: A BILL TO AMEND SECTION 56-3-8600, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF DUCKS UNLIMITED SPECIAL LICENSE PLATES, SO AS TO PROVIDE THAT THIS LICENSE PLATE MAY BE ISSUED TO ANY OWNER OF CERTAIN PRIVATE PASSENGER CARRYING MOTOR VEHICLES, AND TO ADD AN ADDITIONAL FEE FOR THE ISSUANCE ON THE LICENSE PLATE THAT MUST BE DEPOSITED IN AN ACCOUNT DESIGNATED BY THE COMMITTEE OF THE SOUTH CAROLINA DUCKS UNLIMITED.
Referred to Committee on Education and Public Works

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 962 (Word version) -- Senators Rankin and Glover: A CONCURRENT RESOLUTION RECOGNIZING THE MANY CONTRIBUTIONS OF THE LATE EUGENE F. (GENE) JOHNSON OF MARION COUNTY AND HONORING HIS MEMORY BY NAMING THE LITTLE PEE DEE RIVER BRIDGE, ADJOINING HORRY COUNTY AND MARION COUNTY, ON HIGHWAY 917 JUST OUTSIDE OF MULLINS, SOUTH CAROLINA, THE "EUGENE F. (GENE) JOHNSON MEMORIAL BRIDGE".
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 1160 (Word version) -- Senators Knotts and Setzler: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERCHANGE LOCATED AT THE INTERSECTION OF UNITED STATES HIGHWAY 1 AND INTERSTATE HIGHWAY 26 IN LEXINGTON COUNTY IN HONOR OF THE MEN AND WOMEN OF THE 4TH INFANTRY DIVISION AND TO ERECT APPROPRIATE SIGNS OR MARKERS AT THIS INTERCHANGE CONTAINING THE WORDS "4TH INFANTRY DIVISION INTERCHANGE".
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

CONCURRENT RESOLUTION

The Senate sent to the House the following:

S. 1161 (Word version) -- Senators Elliott and Glover: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 301 NORTH IN DILLON COUNTY THAT BEGINS AT THE TRAFFIC LIGHT AT DILLON HIGH SCHOOL AND CONTINUES TO THE INTERSECTION AT THE FLOYD GRIFFIN STORE IN HAMER THE "STACEY GRIFFIN HIGHWAY", AND TO REQUEST THE DEPARTMENT TO ERECT APPROPRIATE MARKERS OR SIGNS AT BOTH POINTS WHERE APPLICABLE ON SOUTH CAROLINA HIGHWAY 301 NORTH CONTAINING THE WORDS "STACEY GRIFFIN HIGHWAY" IN RECOGNITION OF HIS MANY CONTRIBUTIONS TO THE TOWN OF DILLON, DILLON COUNTY, AND THE STATE OF SOUTH CAROLINA.
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

ROLL CALL

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

Allen                  Altman                 Anthony
Bailey                 Bales                  Barfield
Battle                 Bingham                Branham
Breeland               G. Brown               J. Brown
R. Brown               Cato                   Chellis
Clark                  Clemmons               Clyburn
Cobb-Hunter            Coleman                Cooper
Cotty                  Dantzler               Davenport
Delleney               Duncan                 Emory
Freeman                Frye                   Gourdine
Hagood                 Hamilton               Harrell
Harrison               Hayes                  Herbkersman
J. Hines               M. Hines               Hinson
Hosey                  Howard                 Huggins
Jennings               Keegan                 Kennedy
Koon                   Leach                  Lee
Limehouse              Littlejohn             Lloyd
Loftis                 Lourie                 Lucas
Mack                   Mahaffey               Martin
McCraw                 McGee                  McLeod
Merrill                Miller                 J. H. Neal
J. M. Neal             Neilson                Ott
Owens                  Parks                  Perry
E. H. Pitts            M. A. Pitts            Rhoad
Rice                   Richardson             Sandifer
Scarborough            Scott                  Simrill
Skelton                D. C. Smith            F. N. Smith
G. M. Smith            G. R. Smith            J. R. Smith
W. D. Smith            Snow                   Stewart
Stille                 Talley                 Taylor
Toole                  Townsend               Tripp
Trotter                Umphlett               Vaughn
Viers                  Weeks                  White
Whitmire               Wilkins                Witherspoon
Young

STATEMENT OF ATTENDANCE

I came in after the roll call and was present for the Session on Thursday, April 15.

Robert Walker                     Michael Thompson
Bessie Moody-Lawrence             Seth Whipper
Phillip Sinclair                  William Bowers
Tracy Edge                        Gloria Haskins
Thayer Rivers                     Todd Rutherford
Lewis E. Pinson                   Jerry Govan
Alex Harvin

Total Present--116

LEAVE OF ABSENCE

The SPEAKER granted Rep. KIRSH a leave of absence for the day due to illness.

LEAVE OF ABSENCE

The SPEAKER granted Rep. GILHAM a leave of absence for the day.

DOCTOR OF THE DAY

Announcement was made that Dr. Larry Winn of Easley is the Doctor of the Day for the General Assembly.

SPECIAL PRESENTATION

Rep. DELLENEY presented to the House the Great Falls High School "Red Devils" Boys Varsity Basketball Team, the 2004 Class A Champions, and their coach.

SPECIAL PRESENTATION

Rep. DELLENEY presented to the House the Chester High School "Lady Cyclones" Basketball Team, the 2004 AAA Champions, and their coach.

CO-SPONSORS ADDED

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

CO-SPONSOR ADDED

Bill Number: H. 5002 (Word version)
Date: ADD:
04/15/04 TRIPP

CO-SPONSOR ADDED

Bill Number: H. 4990 (Word version)
Date: ADD:
04/15/04 CHELLIS

CO-SPONSOR ADDED

Bill Number: H. 4990 (Word version)
Date: ADD:
04/15/04 BARFIELD

CO-SPONSOR ADDED

Bill Number: H. 4990 (Word version)
Date: ADD:
04/15/04 HAMILTON

CO-SPONSOR ADDED

Bill Number: H. 4990 (Word version)
Date: ADD:
04/15/04 LEACH

CO-SPONSOR ADDED

Bill Number: H. 4907 (Word version)
Date: ADD:
04/15/04 COBB-HUNTER

CO-SPONSOR ADDED

Bill Number: H. 4996 (Word version)
Date: ADD:
04/15/04 RHOAD

CO-SPONSOR ADDED

Bill Number: H. 4908 (Word version)
Date: ADD:
04/15/04 BARFIELD

ORDERED ENROLLED FOR RATIFICATION

The following Bills and Joint Resolutions were read the third time, passed and, having received three readings in both Houses, it was ordered that the title of each be changed to that of an Act, and that they be enrolled for ratification:

S. 1091 (Word version) -- Senator Hayes: A JOINT RESOLUTION TO PROVIDE THAT THE BOARD OF TRUSTEES OF FORT MILL SCHOOL DISTRICT NO. 4 FOR SCHOOL YEAR 2003-2004 IS AUTHORIZED TO FORGIVE UP TO THREE SCHOOL DAYS MISSED BY ANY SCHOOL OF THE DISTRICT BECAUSE OF SNOW, ICE, OR EXTREME WEATHER CONDITIONS.

S. 1100 (Word version) -- Senator Drummond: A BILL TO AMEND ACT 1147 OF 1968, AS AMENDED, RELATING TO THE GREENWOOD COUNTY CAREER CENTER, SO AS TO RENAME THE CENTER THE G. FRANK RUSSELL CAREER CENTER.

S. 764 (Word version) -- Senator Ryberg: A BILL TO AMEND SECTION 56-3-1010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS CONCERNING CORPORATE-OWNED FLEET MOTOR VEHICLES, SO AS TO REVISE THE DEFINITION OF THE TERM "FLEET".

S. 946 (Word version) -- Senator Patterson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DESIGNATING SECTIONS 59-53-1710 THROUGH 59-53-1760 AS SUBARTICLE 1 AND ENTITLED "GENERAL PROVISIONS" OF ARTICLE 20, CHAPTER 53, TITLE 59; AND BY ADDING SUBARTICLE 3 TO ARTICLE 20, CHAPTER 53, TITLE 59, RELATING TO THE MIDLANDS TECHNICAL COLLEGE, SO AS TO PROVIDE FOR THE POWERS AND DUTIES OF THE COMMISSION FOR PURPOSES OF THE DEVELOPMENT OF THE NORTHEAST CAMPUS, TO PROVIDE FOR THE CREATION OF THE MIDLANDS TECHNICAL COLLEGE ENTERPRISE CAMPUS AUTHORITY, AND TO PROVIDE FOR ITS POWERS AND DUTIES.

S. 1082 (Word version) -- Senator Cromer: A JOINT RESOLUTION TO PROVIDE THAT THE BOARDS OF TRUSTEES OF THE NEWBERRY AND SALUDA COUNTY SCHOOL DISTRICTS FOR SCHOOL YEAR 2003-2004 ARE AUTHORIZED TO FORGIVE UP TO THREE SCHOOL DAYS MISSED BY ANY SCHOOL OF THE DISTRICTS BECAUSE OF SNOW, ICE, OR EXTREME WEATHER CONDITIONS.

S. 1127 (Word version) -- Senators Knotts, Cromer, Courson and Setzler: A BILL TO ENACT THE LEXINGTON COUNTY SCHOOL DISTRICT PROPERTY TAX RELIEF ACT BY ALLOWING THE IMPOSITION OF A SALES AND USE TAX EQUAL TO ONE PERCENT OF GROSS SALES IN LEXINGTON COUNTY FOLLOWING APPROVAL OF THE TAX BY THE QUALIFIED ELECTORS OF THE COUNTY IN A REFERENDUM HELD AT THE TIME OF THE 2004 GENERAL ELECTION, TO PROVIDE THAT THE TAX IS IMPOSED FOR SEVEN YEARS AND MAY BE EXTENDED OR REIMPOSED BY THE GENERAL ASSEMBLY BY LAW, TO PROVIDE THAT THE TAX IS IMPOSED IN THE SAME MANNER AND WITH THE SAME EXEMPTIONS AND MAXIMUM TAXES APPLICABLE FOR THE FIVE PERCENT STATE SALES AND USE TAX WITH AN ADDITIONAL EXEMPTION FROM THE ONE PERCENT TAX FOR FOOD WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO PROVIDE THAT THE REVENUE OF THE TAX MUST BE ALLOTTED TO THE SCHOOL DISTRICTS OF LEXINGTON COUNTY BASED ON AVERAGE DAILY NUMBER OF STUDENTS RESIDING IN THAT PORTION OF THE DISTRICT THAT IS IN LEXINGTON COUNTY AND ALSO BASED ON THE POPULATION OF THE DISTRICT, TO PROVIDE THAT THE REVENUE MUST BE USED TO PROVIDE A CREDIT AGAINST THE SCHOOL TAX LIABILITY FOR PROPERTY IN THE DISTRICT AND TO PROVIDE THE METHOD OF CALCULATING THE CREDIT, AND TO PROVIDE THAT REFERENDUMS TO APPROVE MILLAGE INCREASES OR BOND AUTHORIZATIONS FOR ANY PURPOSE IN LEXINGTON COUNTY MAY ONLY BE HELD ON THE FIRST TUESDAY WHICH FOLLOWS THE FIRST MONDAY IN NOVEMBER OF A PARTICULAR YEAR.

RETURNED TO THE SENATE WITH AMENDMENTS

The following Bills were taken up, read the third time, and ordered returned to the Senate with amendments:

S. 487 (Word version) -- Senator Waldrep: A BILL TO AMEND SECTION 12-36-90, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SALES AND USE TAX ACT, SO AS TO EXCLUDE THE ENVIRONMENTAL SURCHARGE IMPOSED PURSUANT TO SECTION 44-56-430 FROM THE DEFINITION OF "GROSS PROCEEDS OF SALES"; TO AMEND SECTION 44-56-430, RELATING TO THE DRYCLEANING FACILITY RESTORATION TRUST FUND, SO AS TO PROVIDE FOR THE CALCULATION, ADMINISTRATION, COLLECTION, AND ENFORCEMENT OF THE ENVIRONMENTAL SURCHARGE; TO AMEND SECTION 44-56-470, RELATING TO THE ANNUAL REGISTRATION AND FEES FOR DRYCLEANING FACILITIES, SO AS TO PROVIDE FOR THE DEPARTMENT OF REVENUE'S RETENTION OF FUNDS FOR COSTS INCURRED TO COLLECT AND ENFORCE THE DRYCLEANING FACILITY RESTORATION TRUST FUND; TO AMEND SECTION 44-56-480, RELATING TO THE SURCHARGE ON PERCHLOROETHYLENE (TETRACHLOROETHYLENE) AND STODDARD SOLVENT, SO AS TO PROVIDE THAT THE DEPARTMENT OF REVENUE MUST ADMINISTER, COLLECT, AND ENFORCE THE SURCHARGE IN THE MANNER THAT SALES AND USE TAXES ARE ADMINISTERED, COLLECTED, AND ENFORCED UNDER CHAPTER 36 OF TITLE 12; AND TO AMEND SECTION 44-56-485, RELATING TO THE ELECTION TO PLACE A DRYCLEANING FACILITY UNDER THE PROVISIONS OF ARTICLE 4, CHAPTER 56 OF TITLE 44, SO AS TO ADD PROVISIONS PERTAINING TO THE EFFECT OF VOLUNTARY REGISTRATION ON A DRYCLEANING FACILITY'S LIABILITY FOR THE PAYMENT OF CERTAIN TAXES, FEES, PENALTIES, AND INTEREST.

S. 769 (Word version) -- Senators Cromer and Reese: A BILL TO AMEND SECTION 12-37-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTIONS FROM PROPERTY TAXES INCLUDING THE EXEMPTION OF A DWELLING HOUSE OF A VETERAN WHO IS DISABLED FROM A SERVICE-CONNECTED DISABILITY, SO AS TO DEFINE THE TERM "PERMANENTLY AND TOTALLY DISABLED" AND TO ALLOW THE SURVIVING SPOUSE OF A DISABLED VETERAN TO RECEIVE THE EXEMPTION FOR ANY SUBSEQUENT DWELLING.

SENT TO THE SENATE

The following Bills and Joint Resolution were taken up, read the third time, and ordered sent to the Senate:

H. 4527 (Word version) -- Reps. M. A. Pitts, Bailey and Koon: A BILL TO AMEND SECTION 12-6-1140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS, SO AS TO EXTEND THE DEDUCTION ALLOWED AN ELIGIBLE VOLUNTEER FIREMAN, VOLUNTEER RESERVE SQUAD MEMBER, AND VOLUNTEER MEMBER OF A HAZARDOUS MATERIALS (HAZMAT) RESPONSE TEAM TO A RESERVE POLICE OFFICER, TO DELETE OBSOLETE LANGUAGE, AND TO PROVIDE DEDUCTION ELIGIBILITY REQUIREMENTS FOR A RESERVE POLICE OFFICER.

H. 4465 (Word version) -- Reps. Vaughn, Altman, Leach and Mahaffey: A BILL TO AMEND SECTION 12-37-250, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FIFTY THOUSAND DOLLAR HOMESTEAD EXEMPTION FOR THE PERSON OVER SIXTY-FIVE YEARS OF AGE AND DISABLED PERSONS, SO AS TO INDEX THE EXEMPTION AMOUNT TO INFLATION IN THE SAME MANNER AND BY THE SAME PERCENTAGE THAT FEDERAL INCOME TAX BRACKETS ARE ADJUSTED TO REFLECT INCREASES IN THE CONSUMER PRICE INDEX.

H. 4724 (Word version) -- Reps. Hinson, Merrill, Altman, Dantzler, Gourdine, McLeod, Neilson and Harrell: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-9-150 SO AS TO EXEMPT FROM ACROSS-THE-BOARD REDUCTIONS ORDERED BY THE STATE BUDGET AND CONTROL BOARD AMOUNTS APPROPRIATED IN THE ANNUAL GENERAL APPROPRIATIONS ACT AS SALARY SUPPLEMENTS FOR COUNTY CLERKS OF COURT, PROBATE JUDGES, SHERIFFS, REGISTRARS OF DEEDS, COUNTY AUDITORS, COUNTY TREASURERS, AND COUNTY CORONERS; AND TO AMEND SECTION 8-15-65, AS AMENDED, SO AS TO PROVIDE FOR THE COUNTY CORONER AS A COUNTY OFFICIAL RECEIVING A SALARY SUPPLEMENT FROM THE STATE.

H. 4262 (Word version) -- Reps. Neilson, Barfield, Bales, Cobb-Hunter, Clyburn, Martin, J. Hines, Rutherford, J. Brown, Hosey, Hayes, J. E. Smith, Altman, Anthony, Bailey, Battle, Branham, Emory, Freeman, Harvin, M. Hines, Keegan, Kennedy, Koon, Leach, Rhoad, Richardson, Rivers, Scarborough, Simrill, J. R. Smith, Snow, Thompson, Young, Walker, Clemmons, Lourie, Sandifer, Owens, Clark, Weeks, McLeod, Whipper, Allen and Jennings: A BILL TO AMEND CHAPTER 61, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 SO AS TO AUTHORIZE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO ESTABLISH A STATE TRAUMA CARE SYSTEM TO ENSURE PROVISION OF TRAUMA SERVICES TO RESIDENTS THROUGHOUT THE STATE; TO PROVIDE, AMONG OTHER THINGS, THAT THE DEPARTMENT MAY ESTABLISH STANDARDS FOR LEVELS OF TRAUMA CENTER DESIGNATIONS AND TO PROVIDE FOR THE FURTHER REGULATION OF SUCH CENTERS; TO ESTABLISH THE TRAUMA ADVISORY COUNCIL TO ADVISE THE DEPARTMENT ON THE DEVELOPMENT OF THE TRAUMA CARE SYSTEM; AND TO ESTABLISH THE TRAUMA CARE FUND FOR PAYMENT OF THE DEPARTMENT'S EXPENSES IN ESTABLISHING ADMINISTERING, AND OVERSEEING THE STATE TRAUMA CARE SYSTEM.

H. 4971 (Word version) -- Reps. Harrell, Quinn, Clyburn, Davenport, Edge, Rice, Neilson, Cobb-Hunter and Whipper: A JOINT RESOLUTION TO ESTABLISH THE SOUTH CAROLINA COMMISSION ON HEALTH CARE ACCESS, TO PROVIDE FOR THE MEMBERSHIP, DUTIES, AND FUNCTIONS OF THE COMMISSION, AND TO PROVIDE THAT THE COMMISSION IS DISSOLVED JUNE 30, 2007, OR AT THE CONCLUSION OF ITS WORK, WHICHEVER OCCURS EARLIER.

H. 4963 (Word version) -- Reps. Harrell, Mack and Neilson: A BILL TO AMEND SECTIONS 9-8-10, 9-8-50, 9-8-60, AS AMENDED, AND 9-8-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS, CREDITED SERVICE, RETIREMENT AND RETIREMENT ALLOWANCES, AND MEMBERS' CONTRIBUTIONS FOR PURPOSES OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO DEFINE "EARNED SERVICE" FOR PURPOSES OF THIS SYSTEM, PROVIDE THE TYPE AND AMOUNT OF SERVICE CREDIT THAT MAY BE ESTABLISHED IN THIS SYSTEM AND THE COST REQUIRED TO ESTABLISH SERVICE CREDIT, PROVIDE THE OPTIONS AVAILABLE TO A MEMBER WHO TERMINATES SERVICE BEFORE RETIREMENT, PROVIDE THE AMOUNT OF EARNED SERVICE NECESSARY FOR A MEMBER OF THIS SYSTEM TO VEST AND RECEIVE A MONTHLY RETIREMENT BENEFIT, CONFORM THE SERVICE REQUIREMENTS FOR RECEIVING A MONTHLY RETIREMENT ALLOWANCE TO THESE REVISIONS, AND INCREASE MEMBER CONTRIBUTIONS FROM SEVEN TO TEN PERCENT OF COMPENSATION PHASED IN OVER THREE YEARS.

H. 4903 (Word version) -- Reps. Cobb-Hunter, Harrell and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 74 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE FOR "BREAST CANCER AWARENESS" SPECIAL LICENSE PLATES.

H. 4978 (Word version) -- Reps. Townsend, Stille, J. M. Neal, Gilham, Pinson, Lourie and Martin: A BILL TO AMEND SECTION 59-150-360, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO TUITION ASSISTANCE FOR TECHNICAL COLLEGES AND TWO-YEAR INSTITUTIONS, SO AS TO PROVIDE THAT A HIGH SCHOOL STUDENT WHO IS DUALLY ENROLLED IN AN ELIGIBLE TWO-YEAR INSTITUTION IS NOT REQUIRED TO BE DEGREE SEEKING AND IS NOT REQUIRED TO COMPLETE A FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) APPLICATION TO QUALIFY AS A FIRST TIME ENTERING FRESHMAN.

H. 5077 (Word version) -- Reps. Walker, Anthony, Lee, Littlejohn, Mahaffey, Sinclair, W. D. Smith and Talley: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-810 SO AS TO PROVIDE THAT THE PORTION OF ROADSIDE VEGETATION ALONG INTERSTATE HIGHWAY 85 AND INTERSTATE HIGHWAY 585 IN SPARTANBURG COUNTY MAY BE MOWED BEYOND THIRTY FEET FROM THE PAVEMENT.

H. 4740 (Word version) -- Reps. Miller, Hayes, J. E. Smith, Altman, Anthony, Battle, Bowers, Branham, Ceips, Clark, Clemmons, Clyburn, Frye, Gourdine, Hagood, Harrison, Herbkersman, Whipper, M. Hines, Hinson, Hosey, Keegan, Leach, Littlejohn, Lloyd, Ott, Rhoad, Rice, Richardson, Scarborough, Snow, Stille, Taylor, Townsend, Vaughn, Whitmire, Witherspoon and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "SOUTH CAROLINA SAFE ROUTES TO SCHOOLS ACT" BY ADDING SECTION 59-17-150 SO AS TO PROVIDE THAT MUNICIPAL AND COUNTY GOVERNING BODIES SHALL WORK WITH SCHOOL DISTRICTS LOCATED IN THEIR JURISDICTIONS TO IDENTIFY BARRIERS AND HAZARDS TO CHILDREN WALKING OR BICYCLING TO AND FROM SCHOOL, TO PROVIDE THAT THE MUNICIPALITIES, COUNTIES, AND DISTRICTS MAY DEVELOP A PLAN FOR THE FUNDING OF IMPROVEMENTS DESIGNED TO REDUCE THE BARRIERS AND HAZARDS IDENTIFIED, TO PROVIDE THAT EACH SCHOOL DISTRICT SHALL FORM A COORDINATING COMMITTEE AND EACH SCHOOL SHALL FORM A SAFE ROUTES TO SCHOOL TEAM TO PERFORM SPECIFIED FUNCTIONS IN REGARD TO SAFE PEDESTRIAN AND BICYCLE ROUTES TO SCHOOL, AND TO PROVIDE THAT THE FIRST WEDNESDAY OF OCTOBER OF EACH YEAR IS DESIGNATED AS "WALK YOUR CHILD TO SCHOOL/BIKE TO SCHOOL DAY" IN EACH SCHOOL DISTRICT OF THIS STATE.

H. 4819 (Word version) -- Reps. Govan, Townsend, G. Brown, Clyburn, McLeod, Weeks, Whipper, Moody-Lawrence, Lee, Mack, J. E. Smith, Allen, Branham, Breeland, J. Brown, R. Brown, Clark, Clemmons, Cobb-Hunter, Emory, Gourdine, J. Hines, M. Hines, Hosey, Howard, Littlejohn, Lloyd, Loftis, Mahaffey, J. H. Neal, Parks, Rivers, Rutherford, Scott, Sinclair, F. N. Smith, Snow, Taylor and Tripp: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DESIGNATING SECTIONS 59-29-10 THROUGH 59-29-220 AS ARTICLE 1, GENERAL PROVISIONS, OF CHAPTER 29, TITLE 59; BY ADDING ARTICLE 3 TO CHAPTER 29, TITLE 59 SO AS TO ENACT THE FINANCIAL LITERACY INSTRUCTION ACT OF 2004, TO PROVIDE FOR THE DEVELOPMENT OR ADOPTION OF A CURRICULUM FOR LOCAL SCHOOL BOARDS TO TEACH FINANCIAL LITERACY, AND TO PROVIDE FOR THE ESTABLISHMENT OF A FUND TO RECEIVE PUBLIC AND PRIVATE CONTRIBUTIONS FOR FINANCIAL LITERACY INSTRUCTION.

H. 3130 (Word version) -- Reps. Lourie and Haskins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-25-95 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON CONVICTED OF A MISDEMEANOR CRIMINAL DOMESTIC VIOLENCE OFFENSE TO SHIP, TRANSPORT, POSSESS, OR RECEIVE A FIREARM OR AMMUNITION IF THE CONVICTION MEETS CERTAIN CONDITIONS AND TO PROVIDE PENALTIES; AND BY ADDING SECTION 20-4-150, SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR A PERSON SUBJECT TO A PROTECTION ORDER, UNDER CERTAIN CONDITIONS, TO SHIP, TRANSPORT, POSSESS, OR RECEIVE A FIREARM OR AMMUNITION AND TO PROVIDE PENALTIES.

RECORD FOR VOTING

Due to a conflict of interest, I did not vote on H. 4724.

Rep. C. David Umphlett, Jr.

H. 4904--AMENDED, REQUESTS FOR DEBATE AND DEBATE ADJOURNED

The following Bill was taken up:

H. 4904 (Word version) -- Rep. Walker: A BILL TO AMEND SECTION 56-3-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TIME PERIOD FOR REGISTERING AND LICENSING A MOTOR VEHICLE, THE ISSUANCE OF TEMPORARY LICENSE PLATES, SO AS TO REVISE THE CONTENTS OF A TEMPORARY LICENSE PLATE.

The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SWB\5982CM04), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Section 56-3-210(C) of the 1976 Code, as last amended by Act 251 of 2002, is further amended to read:

"(C) A dealer of new or used vehicles may issue to the purchaser of a vehicle at the time of its sale a temporary license plate that may contain the dealer's name and location and must contain, in characters not less than one-quarter inch wide and one and one-half inches high, the expiration date of the period within which the purchaser must register the vehicle pursuant to subsection (E) of this section. The plate must contain the dealer's name, city, and phone number, or the dealer's name and computer website address. The plate also must contain a rectangular box, with a white background, centered on the bottom of the plate, in dimensions not less than six inches wide and two inches high. The rectangular box must contain, in characters not less than one quarter inch wide and one and one-half inches high, the expiration date of the period within which the purchaser must register the vehicle pursuant to subsection (E) of this section. The expiration date must be clearly legible from a distance of at least twenty-five feet, written using a permanent black marker with at least a one quarter inch wide tip, and must contain a numerical month, day, and year. The expiration date may not extend beyond forty-five days from the date of purchase. The temporary license plate must be made of heavy stock paper or plastic, ~~inscribed with contrasting indelible ink,~~ and designed to resist deterioration or fading from exposure to the elements during the period for which display is required. The bill of sale, title, rental contract, or a copy of either document must be maintained in the vehicle at all times to verify the vehicle's date of purchase to a law enforcement officer. The bill of sale, title, rental contract, or a copy of either document must contain a description of the vehicle, the name and address of both the seller and purchaser of the vehicle, and its date of sale. Except as provided for in this section, a dealer may not use a temporary license plate for any other purpose, which includes, but is not limited to, vehicle demonstration, employee use, or transporting vehicles from one location to another location. A dealer may not place a temporary license plate on a vehicle, regardless of whether the expiration date has been written on the plate, until the vehicle is sold to a purchaser. A ~~dealer~~ person who issues or uses a temporary license plate or allows a temporary license plate to be issued or used in violation of this section is guilty of a misdemeanor and, upon conviction, must be fined one hundred dollars for each occurrence."
SECTION 2. This act takes effect on January 1, 2005. /
Renumber sections to conform.
Amend title to conform.

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

Rep. SIMRILL proposed the following Amendment No. 2 (Doc Name COUNCIL\SWB\6013CM04):
Amend the bill, as and if amended, Section 56-3-210(C) as contained in SECTION 1, by striking Section 56-3-210 and inserting:
/"(C) A dealer of new or used vehicles may issue to the purchaser of a vehicle at the time of its sale a temporary license plate that may contain the dealer's name and location and must contain, in characters not less than one-quarter inch wide and one and one-half inches high, the expiration date of the period within which the purchaser must register the vehicle pursuant to subsection (E) of this section. The plate must contain the dealer's name, city, and phone number, or the dealer's name and computer website address. The plate also must contain a rectangular box, with a white background, in dimensions not less than six inches wide and two inches high. The rectangular box must contain, in characters not less than one quarter inch wide and one and one-half inches high, the expiration date of the period within which the purchaser must register the vehicle pursuant to subsection (E) of this section. The expiration date must be clearly legible from a distance of at least twenty-five feet, written using a permanent black marker with at least a one quarter inch wide tip, and must contain a numerical month, day, and year. The expiration date may not extend beyond forty-five days from the date of purchase. The temporary license plate must be made of heavy stock paper or plastic, ~~inscribed with contrasting indelible ink,~~ and designed to resist deterioration or fading from exposure to the elements during the period for which display is required. The bill of sale, title, rental contract, or a copy of either document must be maintained in the vehicle at all times to verify the vehicle's date of purchase to a law enforcement officer. The bill of sale, title, rental contract, or a copy of either document must contain a description of the vehicle, the name and address of both the seller and purchaser of the vehicle, and its date of sale. Except as provided for in this section, a dealer may not use a temporary license plate for any other purpose, which includes, but is not limited to, vehicle demonstration, employee use, or transporting vehicles from one location to another location. A dealer may not place a temporary license plate on a vehicle, regardless of whether the expiration date has been written on the plate, until the vehicle is sold to a purchaser. A ~~dealer~~ person who issues or uses a temporary license plate or allows a temporary license plate to be issued or used in violation of this section is guilty of a misdemeanor and, upon conviction, must be fined one hundred dollars for each occurrence." /
Renumber sections to conform.
Amend title to conform.

Rep. SIMRILL explained the amendment.

Reps. SCOTT and LOFTIS requested debate on the Bill.

Rep. SIMRILL continued speaking.

Rep. WHIPPER moved to adjourn debate on the Bill until Tuesday, April 20, which was agreed to.

H. 4796--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4796 (Word version) -- Rep. Townsend: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-1-2005, SO AS TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES SHALL ADMINISTER THE STATE'S COMMERCIAL DRIVER LICENSE PROGRAM; TO AMEND SECTION 56-1-10 AND SECTION 56-1-630, BOTH AS AMENDED, RELATING TO DEFINITIONS OF TERMS CONTAINED IN PROVISIONS CONCERNING MOTOR VEHICLES, SO AS TO REVISE THE DEFINITION OF THE TERM "CONVICTION"; TO AMEND SECTION 56-1-2030, AS AMENDED, RELATING TO DEFINITION OF TERMS CONTAINED IN THE SOUTH CAROLINA COMMERCIAL DRIVER'S LICENSE ACT, SO AS TO REVISE THE DEFINITION OF THE TERM "SERIOUS TRAFFIC VIOLATION"; TO AMEND SECTION 56-1-2080, AS AMENDED, RELATING TO ISSUANCE OF A COMMERCIAL DRIVER'S LICENSE, SO AS TO REVISE THE CONTENTS OF THE AGREEMENT A THIRD PARTY MUST ENTER INTO WITH THE DEPARTMENT OF MOTOR VEHICLES IN ORDER TO ADMINISTER THE COMMERCIAL DRIVER'S LICENSE SKILLS TEST; TO AMEND SECTION 56-1-2100, AS AMENDED, RELATING TO THE COMMERCIAL DRIVER'S LICENSE, SO AS TO REVISE THE REQUIREMENTS TO OBTAIN A HAZARDOUS MATERIAL ENDORSEMENT; TO AMEND SECTION 56-1-2110, AS AMENDED, RELATING TO VIOLATIONS THAT RESULT IN A PERSON BEING DISQUALIFIED FROM DRIVING A COMMERCIAL MOTOR VEHICLE, SO AS TO PROVIDE THAT OFFENSES COMMITTED BY A COMMERCIAL DRIVER'S LICENSE HOLDER IN A COMMERCIAL OR NONCOMMERCIAL VEHICLE MAY BE USED TO DISQUALIFY A PERSON FROM DRIVING A COMMERCIAL MOTOR VEHICLE, AND TO PROVIDE A DEFINITION FOR THE TERM "SERIOUS TRAFFIC VIOLATIONS"; TO AMEND SECTION 56-5-2735, RELATING TO VEHICLE ENTRY INTO AN INTERSECTION, ACROSS A CROSSWALK, OR ONTO A RAILROAD GRADE CROSSING, SO AS TO PROVIDE THAT A VEHICLE MAY NOT BE DRIVEN OR TOWED THROUGH OR OVER ANY RAILROAD GRADE CROSSING UNTIL THE DRIVER HAS DETERMINED THAT THE VEHICLE HAS SUFFICIENT UNDERCARRIAGE CLEARANCE TO NEGOTIATE THE RAILROAD GRADE CROSSING.

The Education and Public Works Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SWB\5998CM04), which was adopted:
Amend the bill, as and if amended, Section 56-1-2080(A)(b)(i), as contained in SECTION 5, pages 3 and 4 by deleting Section 56-1-2080(A)(b)(i) and inserting:
/ "(i) authorization for the department or the ~~Federal Highway Administration~~ FMCSA or its representatives to conduct random examinations, inspections, and audits without prior notice and randomly test commercial driver's license applicants or holders. An applicant or holder who fails retesting shall lose his commercial driver's license;" /
Amend the bill further, SECTION 7, page 4, by striking SECTION 7 and inserting:
/ SECTION 7. Section 56-1-2110(F) of the 1976 Code is amended to read:

"(F) A person is disqualified from driving a commercial motor vehicle for not less than sixty days if convicted of two serious traffic violations or one hundred twenty days if convicted of three serious traffic violations, committed in a commercial motor vehicle arising from separate incidents occurring within a three-year period. Offenses committed by commercial driver's license holders in a commercial or noncommercial vehicle must be considered pursuant to this subsection. As contained in this subsection, serious traffic violations are those contained in Section 56-1-2030(22) and 49 CFR 383.5.

(G) As contained in this subsection, 'traffic violation' means the offenses contained in 49 CFR 383.51 (D) regarding driving disqualifications for violating railroad-highway grade crossing violations. A person is disqualified from driving a commercial motor vehicle pursuant to this subsection for not less than:

(1) sixty days if convicted of a traffic violation committed in a commercial motor vehicle;

(2) one hundred twenty days if convicted of two traffic violations committed in a commercial motor vehicle arising from separate incidents occurring within a three-year period; and

(3) one year if convicted of three traffic violations committed in a commercial motor vehicle arising from separate incidents occurring within a three-year period." /
Amend the bill further, by striking SECTION 8, pages 4 and 5 in its entirety.
Renumber sections to conform.
Amend title to conform.

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

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

H. 4796--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. TOWNSEND, with unanimous consent, it was ordered that H. 4796 (Word version) be read the third time tomorrow.

S. 512--DEBATE ADJOURNED

Rep. TOWNSEND moved to adjourn debate upon the following Bill until Tuesday, April 20, which was adopted:

S. 512 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 56-1-2080, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF A COMMERCIAL DRIVER'S LICENSE, SO AS TO PROVIDE A DEFINITION FOR THE PHRASE "RESIDENT OF SOUTH CAROLINA".

H. 4735--POINT OF ORDER

The following Bill was taken up:

H. 4735 (Word version) -- Reps. Cato and McGee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 23-43-85 SO AS TO PROVIDE APPEARANCE, CONSTRUCTION, AND FOUNDATION STANDARDS FOR A MODULAR HOME CERTIFIED FOR PLACEMENT IN SOUTH CAROLINA; AND TO AMEND SECTION 12-36-2120, AS AMENDED, RELATING TO EXEMPTIONS FROM THE SALES TAX IN THIS STATE, SO AS TO PROVIDE AN EXEMPTION FOR SIXTY PERCENT OF THE GROSS PROCEEDS OF THE SALE OF A MODULAR HOME AND TO DEFINE "GROSS PROCEEDS OF SALE", FOR THIS PURPOSE.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\PT\1975MM04):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 43, Title 23 of the 1976 Code is amended by adding:

"Section 23-43-85. (A) A single-family modular home manufactured after January 1, 2005, must meet the following standards to be certified for placement in this State:

(1) Roof pitch. For homes with a single predominant roofline, the pitch of the roof must be at least five feet rise for every twelve feet of run;

(2) Eave projections. The eave projections of the roof must be at least ten inches, not including a gutter around the perimeter of the home unless the roof pitch is at least seven feet rise for every twelve feet of run;

(3) Exterior wall. The height of the exterior wall must be at least seven feet six inches for the first story;

(4) Siding and roofing materials. The materials and texture of the exterior materials must be compatible in composition, appearance, and durability to the exterior materials commonly used in standard residential construction.

(B) A single-family modular home placed in the State after January 1, 2005, must meet the foundation requirements provided by the State in this subsection:

(1) A perimeter wall located under the exterior walls of the home, whether load-bearing or non load-bearing, must be constructed of brick, masonry, or other permanent material commonly used in standard residential construction, consistent with surrounding residential structures, and in accordance with the International Residential Code as adopted by the South Carolina Department of Labor, Licensing and Regulation. All modular manufacturers shall submit with the plan set for each building to the department's Modular Buildings Program a minimum foundation design;

(2) A home located in a coastal or flood plain area may require piling or other special foundation designs. These foundations must be designed by a registered professional engineer or architect and are subject to review and approval by the local jurisdiction and not by the Modular Buildings Program. A perimeter wall constructed of brick, masonry, or other materials to enclose the foundation of the home may be a requirement of the design."
SECTION 2. Section 12-36-2120(34) of the 1976 Code is amended to read:

"(34) ~~thirty-five~~ fifty percent of the gross proceeds of the sale of a modular ~~homes~~ home ~~as defined in Section 31-17-20~~ regulated pursuant to Chapter 43 of Title 23, both on-frame and off-frame. For purposes of this item only, 'gross proceeds of sale' equals the manufacturer's net invoice price of the modular home sold, including all accessories built in to the modular home at the time of delivery to the purchaser and not including freight or deposit on returnable materials. The manufacturer shall collect the tax and remit it to the Department of Revenue;"
SECTION 3. Section 12-36-2110(B) of the 1976 Code is amended by adding at the end:

"The maximum tax authorized by this subsection does not apply to a single-family modular home regulated pursuant to Chapter 43, Title 23."
SECTION 4. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.

Rep. BINGHAM explained the amendment.

POINT OF ORDER

Rep. ALTMAN 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.

S. 949--INTERRUPTED DEBATE

The following Bill was taken up:

S. 949 (Word version) -- Senators Leatherman and Ford: A BILL TO AMEND SECTION 40-57-135, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DUTIES OF REAL ESTATE BROKERS-IN-CHARGE AND MANAGERS-IN-CHARGE, POLICIES, AND RECORDKEEPING, SO AS TO, AMONG OTHER THINGS, FURTHER SPECIFY PROCEDURES FOR HANDLING CHECKS RECEIVED AS ESCROW OR SECURITY DEPOSITS FOR SALES OR LEASE AGREEMENTS AND PROCEDURES FOR MARKETING LISTINGS BY COMPANIES THAT ARE MEMBERS OF A MULTIPLE LISTING SERVICE; TO AUTHORIZE REAL ESTATE LICENSEES TO USE PUBLIC INFORMATION TO CONTACT INDIVIDUALS BY TELEPHONE, MAIL, OR ELECTRONIC MAIL FOR THE PURPOSE OF SELLING OR MARKETING REAL PROPERTY; TO FURTHER SPECIFY POLICIES RELATING TO DUAL AGENCY, CONTENTS OF LISTING OR BUYER'S AGREEMENTS, AND PROPERTY MANAGEMENT AGREEMENTS; AND TO SPECIFY REAL ESTATE TRANSACTION ACTIVITIES THAT MUST NOT BE CONDUCTED BY AN UNLICENSED INDIVIDUAL EMPLOYED OR SUPERVISED BY AN OWNER OF A REAL ESTATE COMPANY; TO AMEND SECTION 40-57-137, RELATING TO REAL ESTATE BROKERAGE COMPANY DUTIES TO CLIENTS, SO AS TO, AMONG OTHER THINGS, PROVIDE THAT NO CAUSE OF ACTION EXISTS AGAINST AN AGENT WHO HAS TRUTHFULLY DISCLOSED KNOWN DEFECTS TO A BUYER OR AGAINST A REAL ESTATE LICENSEE FOR INFORMATION CONTAINED IN VARIOUS REPORTS, SUCH AS TERMITE AND HOME INSPECTIONS; TO SPECIFY PROCEDURES FOR OBTAINING INFORMED CONSENT TO ACT AS A DUAL AGENT; TO SPECIFY AN EXCEPTION TO REQUIRING A DUAL AGENCY RELATIONSHIP WHEN A LICENSEE IN A COMPANY'S MAIN OFFICE CONDUCTS BUSINESS IN A BRANCH OFFICE; TO SPECIFY SERVICES A LICENSEE MAY PROVIDE TO REAL ESTATE CUSTOMERS AND POLICIES AND PROCEDURES FOR PROVIDING THESE SERVICES; TO ESTABLISH REQUIREMENTS THAT A BROKER-IN-CHARGE MUST SATISFY TO ASSIGN DESIGNATED AGENTS TO EXCLUSIVELY REPRESENT DIFFERENT CLIENTS IN THE SAME TRANSACTION; TO FURTHER PROVIDE FOR THE TRANSACTION OF REAL ESTATE BUSINESS BY DESIGNATED AGENTS AND TO PROVIDE THAT COMPENSATION OR THE PROMISE OF COMPENSATION DOES NOT DETERMINE WHETHER AN AGENCY RELATIONSHIP HAS BEEN CREATED; TO AMEND SECTION 40-57-139, RELATING TO AGENCY DISCLOSURE REQUIREMENTS, SO AS TO PROVIDE THAT FORMS REGARDING THE RELATIONSHIP CREATED BETWEEN THE LICENSEE AND THE CUSTOMER MUST BE ACKNOWLEDGED IN THE LISTING, BUYER'S, OR AGENCY AGREEMENT; TO REQUIRE AN AGENCY RELATIONSHIP TO BE CREATED BEFORE RATIFICATION OF THE REAL ESTATE SALES AGREEMENT, TO SPECIFY CONDITIONS UNDER WHICH AN AGENCY RELATIONSHIP DOES NOT EXIST, AND TO PROVIDE EXCEPTIONS TO THESE AGENCY DISCLOSURE REQUIREMENTS; TO AMEND SECTION 40-57-140, RELATING TO THE EFFECT OF TERMINATION, EXPIRATION, OR COMPLETION OF AGENCY AGREEMENTS, SO AS TO REQUIRE CONTINUED CONFIDENTIALITY OF CONFIDENTIAL INFORMATION AND TO PROVIDE THAT THE DUTY TO BE TRUTHFUL PREVAILS OVER MAINTAINING CONFIDENTIALITY; TO AMEND SECTION 40-57-145, RELATING TO GROUNDS FOR DENIAL OF LICENSURE AND FOR DISCIPLINARY ACTIONS, SO AS TO FURTHER SPECIFY ELEMENTS OF THESE GROUNDS AND TO ADD ADDITIONAL GROUNDS; TO AMEND SECTION 40-57-150, RELATING TO INVESTIGATIONS OF VIOLATIONS, SO AS TO EXTEND THE TIME WITHIN WHICH THE REAL ESTATE COMMISSION MUST RENDER A DECISION AND TO AUTHORIZE THE COMMISSION TO RECOVER THE COSTS OF THE INVESTIGATION AND PROSECUTION; AND TO AMEND SECTION 40-57-180, RELATING TO THE POWERS AND DUTIES OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND THE REAL ESTATE COMMISSION, SO AS TO PROVIDE THAT NO CAUSE OF ACTION EXISTS FOR FAILURE OF A LICENSEE TO DISCLOSE THE LOCATION OF SEX OFFENDERS AND CERTAIN OFF-SITE HAZARDS OR PSYCHOLOGICAL IMPACTS; AND TO REQUIRE APPROVED INSTRUCTORS TO ATTEND DEVELOPMENT WORKSHOPS OR TO PROVIDE EVIDENCE OF CONTINUING EDUCATION.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SWB\5995MM04):
Amend the bill, as and if amended, Section 40-57-135(C)(6) as found in SECTION 5, page 4, at line 36, by deleting the item in its entirety and inserting:
/(6) A licensee clearly shall reveal his license status in a personal transaction involving the purchase, sale, exchange, rental, lease, or auction of real estate. ~~This disclosure must be made before a person's material reliance upon the licensee which may be influenced by the representations of the licensee.~~ A licensee meets the requirements of this section by disclosing in underlined capital letters on the first page of the contract his license status in the real estate sales contract, exchange, rental, or lease agreement. Monies received in a personal rental transaction must be deposited in the licensee's personal trust account and do not have to be deposited in the broker's trust account, unless the real property is managed by the broker's company."/
Amend further, Section 40-57-137(O)(1) as found in SECTION 16, page 10, by deleting line 14 in its entirety and inserting:
/ "(O)(1) Prospective buyers and sellers of unlisted real estate who do not choose to /.
When amended item (1) shall read:
/"(O)(1) Prospective buyers and sellers of unlisted real estate who do not choose to establish an agency relationship with a licensee but who use the services of the licensee are considered customers ~~and shall receive~~. A licensee may offer the following services to a customer including, but not limited to:

~~(1)~~ ~~a meaningful explanation of agency relationships in real estate transactions including the customer's right to choose no representation by licensee;~~

~~(2)~~ ~~an explanation of scope of services to be provided by licensee;~~

~~(3)~~ ~~fairness, honesty, and accurate information in all dealings.~~

(a) identify and show property for sale, lease, or exchange;

(b) provide real estate statistics and information on property;

(d) act as a scribe in the preparation of real estate form contracts, leases, and related exhibits and addenda;

(e) locate a list of architects, engineers, surveyors, inspectors, lenders, insurance agents, attorneys, and other professionals; and

(f) identify schools, shopping facilities, places of worship, and other similar facilities on behalf of any of the parties in a real estate transaction. /
Amend further, Section 40-57-139(B) as found in SECTION 18, page 14, at line 34 by deleting / buyer agency / and inserting
/ listing /.
When amended subsection (b) shall read:
/ (B) A licensee who becomes a seller's agent shall provide ~~a completed~~ an agency disclosure form to the seller at the time the listing is obtained and signed. Acknowledgement of receipt of the form must be contained in the listing agreement. /
Amend further, Section 40-57-145(A)(11) as found in SECTION 20, page 17, lines 18 - 22, by deleting item (11) in its entirety and inserting:
/ (11) pays a commission or compensation to an unlicensed individual /;
Amend further, SECTION 28, page 20, lines 19 and 20, by deleting the SECTION in its entirety and inserting / SECTION 28. This act takes effect on January 1, 2005. /
Renumber sections to conform.
Amend title to conform.

Rep. BINGHAM explained the amendment.

Further proceedings were interrupted by expiration of time on the uncontested Calendar, the pending question being consideration of Amendment No. 1, Rep. BINGHAM having the floor.

OBJECTION TO RECALL

Rep. TOWNSEND asked unanimous consent to recall S. 799 (Word version) from the Committee on Education and Public Works.
Rep. MERRILL objected.

H. 5023--RECALLED FROM COMMITTEE ON EDUCATION AND PUBLIC WORKS

On motion of Rep. TOWNSEND, with unanimous consent, the following Bill was ordered recalled from the Committee on Education and Public Works:

H. 5023 (Word version) -- Reps. Martin and Townsend: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 57-23-810 SO AS TO PROVIDE THAT THE PORTION OF ROADSIDE VEGETATION OF INTERSTATE HIGHWAY 85 IN ANDERSON COUNTY MAY BE MOWED BEYOND THIRTY FEET FROM THE PAVEMENT.

OBJECTION TO RECALL

Rep. HARRISON asked unanimous consent to recall S. 532 (Word version) from the Committee on Judiciary.
Rep. SCOTT objected.

R. 199, S. 481--GOVERNOR'S VETO --DEBATE ADJOURNED

The Veto on the following Act was taken up:

(R199) S. 481 (Word version) -- Senator Land: AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT 1 OF CLARENDON COUNTY TO EXPEND FUNDS IN ITS SCHOOL BUILDING FUND TO MEET ITS COSTS OF OPERATIONS AND MAINTENANCE AND TO REPLACE FUNDS LOST AS A CONSEQUENCE OF REDUCTIONS IN STATE APPROPRIATIONS.

Rep. G. M. SMITH moved to adjourn debate on the Veto until Tuesday, April 20, which was agreed to.

R. 209, H. 4702--GOVERNOR'S VETO --DEBATE ADJOURNED

The Veto on the following Act was taken up:

(R209) H. 4702 (Word version) -- Rep. Harvin: AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT 1 IN CLARENDON COUNTY TO EXPEND FUNDS IN ITS SCHOOL BUILDING FUND TO MEET ITS COSTS OF OPERATIONS AND MAINTENANCE AND TO REPLACE FUNDS LOST AS A CONSEQUENCE OF REDUCTIONS IN STATE APPROPRIATIONS.

Rep. G. M. SMITH moved to adjourn debate on the Veto until Tuesday, April 20, which was agreed to.

SENT TO THE SENATE

The following Bills were taken up, read the third time, and ordered sent to the Senate:

H. 4731 (Word version) -- Reps. Howard, Bales, J. Brown, Cotty, Harrison, Lourie, J. H. Neal, Parks, Quinn, Rutherford, Scott and J. E. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-850 SO AS TO DEFINE THE TERM "FUNERAL PROCESSION", AND TO PROVIDE FOR THE DUTIES OF OPERATORS OF VEHICLES IN A FUNERAL PROCESSION AND NOT IN A FUNERAL PROCESSION.

H. 4734 (Word version) -- Reps. Howard, Cobb-Hunter, Gourdine, Jennings, Lee, J. H. Neal, Weeks, Ott, Lourie, Kennedy, Harvin, Coleman and Whipper: A BILL TO AMEND SECTIONS 2-19-10, 2-19-20, 2-19-35, 2-19-70, AND 2-19-80, ALL AS AMENDED, AND SECTION 2-19-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO THE JUDICIAL MERIT SELECTION COMMISSION, ALL SO AS TO CHANGE THE COMMISSION'S PROCESS FOR NOMINATING JUDICIAL CANDIDATES FROM THE NOMINATION OF THREE CANDIDATES TO THE RELEASE OF A LIST OF ALL QUALIFIED CANDIDATES TO THE GENERAL ASSEMBLY AND TO PROVIDE FURTHER CONFORMING CHANGES.

S. 927--ADOPTED AND SENT TO SENATE

The following Concurrent Resolution was taken up:

S. 927 (Word version) -- Senator Hawkins: A CONCURRENT RESOLUTION MEMORIALIZING THE CONGRESS OF THE UNITED STATES TO PASS A PERMANENT BAN ON INTERNET ACCESS TAXES.

Whereas, in 1998, and extended in 2001, Congress enacted the Internet Tax Freedom Act in order to protect consumers that used the Internet and encourage more individuals to access the Internet; and

Whereas, the legislation eliminated taxes on Internet access, double-taxation of a product or service bought over the Internet, and discriminatory taxes that treated Internet purchases differently from other types of sales; and

Whereas, the moratorium on Internet access taxes led to the rapid growth of the Internet which in turn brought good economic news; and

Whereas, we live in an age of innovation, where the medium of the Internet is sparking a sharp increase in entrepreneurship and opportunity, the likes of which have not been seen since the beginning of the Industrial Revolution; and

Whereas, enacting a tax on Internet access will do significant damage to the United States economy and decrease the standard of living for all Americans; and

Whereas, on September 17, 2003, the House of Representatives unanimously passed a permanent ban on all Internet access taxes; however, when the bill came to the Senate floor, pro-Internet tax Senators used parliamentary and other underhanded procedural tricks to force supporters of the legislation into negotiations; and

Whereas, opponents of a tax-free Internet used the negotiations to stall and stop final passage of a permanent ban on Internet access taxes in order to achieve their true desire and tax the Internet. Now, therefore,

Be it resolved by the Senate, the House of Representatives concurring:

That by this resolution, the members of the General Assembly memorialize the Congress of the United States to pass a clean, permanent, and technologically neutral extension of the Internet tax moratorium.

Be it further resolved that a copy of this resolution be transmitted to the President of the Senate, the Speaker of the House of Representatives, and to all members of this state's Congressional Delegation.

Rep. LEACH explained the Resolution.

Rep. JENNINGS moved to recommit the Concurrent Resolution to the Committee on Invitations and Memorial Resolutions.

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

The Concurrent Resolution was adopted and sent to the Senate.

S. 928--ADOPTED AND SENT TO SENATE

The following Concurrent Resolution was taken up:

S. 928 (Word version) -- Senator Hawkins: A CONCURRENT RESOLUTION TO REQUEST THAT THE CONGRESSIONAL DELEGATION OF THE STATE OF SOUTH CAROLINA WORK TO PASS SOCIAL SECURITY PERSONAL RETIREMENT ACCOUNTS.

Whereas, demographic changes and cost increases will drain the existing Social Security system; and

Whereas, without significant changes to the system, costs will exceed revenues starting in 2018 and the system will not be able to pay any benefits by 2042; and

Whereas, not reforming the system will require a fifty percent tax increase on every working American or a thirty percent benefit cut; and

Whereas, allowing younger workers to invest a portion of their income in personal retirement accounts will keep the Social Security system solvent; and

Whereas, allowing younger workers to invest a portion of their income in personal retirement accounts will avoid any benefits cut or tax increases, or both; and

Whereas, allowing younger workers to invest a portion of their income in personal retirement accounts will provide additional savings to younger workers for greater retirement security. Now, therefore,

Be it resolved by the Senate, the House of Representatives concurring:

That the members of the South Carolina General Assembly request that our elected representatives and senators in the United States Congress support no increases in payroll taxes, no cuts to Social Security benefits, and optional Social Security Personal Retirement Accounts.

Be it further resolved that a copy of this resolution be forwarded to the South Carolina Congressional Delegation.

The Concurrent Resolution was adopted and sent to the Senate.

MOTION PERIOD

The motion period was dispensed with on motion of Rep. LEACH.

H. 5095--RECOMMITTED

The following Joint Resolution was taken up:

H. 5095 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF TRANSPORTATION, RELATING TO SPECIFIC INFORMATION SERVICE SIGNING, DESIGNATED AS REGULATION DOCUMENT NUMBER 2883, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Rep. TOWNSEND moved to recommit the Joint Resolution to the Committee on Education and Public Works, which was agreed to.

RECURRENCE TO THE MORNING HOUR

Rep. TOWNSEND moved that the House recur to the Morning Hour, which was agreed to.

REPORTS OF STANDING COMMITTEES

Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report with amendments on:

H. 4130 (Word version) -- Reps. Cato, Tripp, G. R. Smith and Anthony: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-23-117 SO AS TO PROVIDE FLEXIBILITY IN THE PROMULGATION OF REGULATIONS THAT ADVERSELY IMPACT SMALL BUSINESSES, TO DEFINE "SMALL BUSINESS", TO REQUIRE EXAMINATION OF REGULATORY ALTERNATIVES, TO PROVIDE FOR REVIEW OF AN AGENCY DECISION IN THIS CONNECTION, TO REQUIRE REVIEW OF AGENCY REGULATIONS IN THE CONTEXT OF PROMOTING FLEXIBILITY IN PROMULGATING REGULATIONS THAT ADVERSELY IMPACT SMALL BUSINESSES, AND TO PROVIDE FOR EMERGENCY REGULATIONS; TO AMEND SECTION 1-23-10, RELATING TO DEFINITIONS IN CONNECTION WITH THE PROMULGATION OF REGULATIONS, SO AS TO INCLUDE "SMALL BUSINESSES" AND A REFERENCE TO SECTION 1-23-117; AND TO AMEND SECTION 1-23-120, AS AMENDED, RELATING TO GENERAL ASSEMBLY REVIEW OF REGULATIONS, SO AS TO REQUIRE AN AGENCY SUBMITTING A REGULATION FOR REVIEW TO ALSO SUBMIT THE DOCUMENTS AN AGENCY IS REQUIRED TO PREPARE PURSUANT TO THIS ACT.
Ordered for consideration tomorrow.

Rep. J. BROWN, from the Committee on Medical, Military, Public and Municipal Affairs, submitted a favorable report with amendments on:

H. 4639 (Word version) -- Reps. M. A. Pitts, Limehouse, Altman, Anthony, Duncan, Harrison, Martin, Pinson, Sinclair and Taylor: A BILL TO AMEND SECTION 40-47-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE BOARD OF MEDICAL EXAMINERS, SO AS TO PROVIDE FOR TWO ADDITIONAL LAY MEMBERS OF THE BOARD, ONE TO BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE AND ONE TO BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
Ordered for consideration tomorrow.

HOUSE RESOLUTION

The following was introduced:

H. 5137 (Word version) -- Reps. Neilson, Anthony, G. Brown, Davenport, Emory, Freeman, J. Hines, Hosey, Lucas, Mahaffey, Martin, Moody-Lawrence, J. M. Neal, M. A. Pitts, Sinclair, G. R. Smith and W. D. Smith: A HOUSE RESOLUTION MEMORIALIZING PRESIDENT GEORGE W. BUSH AND HIS ADMINISTRATION TO TAKE CERTAIN ACTIONS TO PROHIBIT OR REDUCE THE PRACTICE OF INTERNATIONAL CURRENCY MANIPULATION.
The Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

CONCURRENT RESOLUTION

The following was introduced:

H. 5138 (Word version) -- Reps. Lloyd, Breeland, G. Brown, R. Brown, Davenport, J. Hines, Hosey, Littlejohn, Mack, J. H. Neal and Vaughn: A CONCURRENT RESOLUTION MEMORIALIZING THE CONGRESS OF THE UNITED STATES TO REQUIRE THE PUBLICATION, IN A MANNER MOST LIKELY TO REACH THE INTERESTED GENERAL PUBLIC, OF A SOLICITATION FOR BIDS FOR A FEDERAL CONTRACT TO BE AWARDED IN CONNECTION WITH A FEDERAL PROJECT IN SOUTH CAROLINA.
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.

INTRODUCTION OF BILLS

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

H. 5139 (Word version) -- Reps. Lloyd, Bowers and R. Brown: A BILL TO AMEND SECTION 7-7-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN COLLETON COUNTY, SO AS TO PROVIDE THAT THE POLLING PLACES FOR THESE PRECINCTS MUST BE DETERMINED BY THE COLLETON COUNTY BOARD OF ELECTION AND VOTER REGISTRATION WITH THE APPROVAL OF A MAJORITY OF THE COLLETON COUNTY LEGISLATIVE DELEGATION.
On motion of Rep. LLOYD, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 5140 (Word version) -- Rep. Hagood: A BILL TO AMEND SECTION 48-1-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE "POLLUTION CONTROL ACT", SO AS TO ADD "WETLANDS" TO THE DEFINITION OF SPECIFIED "WATERS OF THE STATE".
Referred to Committee on Agriculture, Natural Resources and Environmental Affairs

H. 5141 (Word version) -- Reps. McLeod and J. Brown: A BILL TO AMEND SECTION 44-7-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS OF TERMS USED IN THE LICENSURE AND REGULATION OF HEALTH FACILITIES, SO AS TO REVISE THE DEFINITIONS OF "HEALTH CARE FACILITY" AND "HOSPITAL" AND TO DEFINE "BIRTHING CENTER"; TO AMEND SECTION 44-7-170, AS AMENDED, RELATING TO EXEMPTIONS FROM THE LICENSURE AND REGULATION OF HEALTH FACILITIES, SO AS TO MAKE TECHNICAL CORRECTIONS; TO AMEND SECTION 44-7-260, RELATING TO THE REQUIREMENTS FOR LICENSURE OF HEALTH FACILITIES, SO AS TO MAKE TECHNICAL CORRECTIONS; TO AMEND SECTIONS 44-7-270 AND 44-7-280, BOTH RELATING TO HEALTH FACILITY LICENSURE, SO AS TO AUTHORIZE THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO VARY LICENSURE PERIODS AND TO CHARGE AN ADDITIONAL AMOUNT TO COVER THE COST OF FACILITY INSPECTIONS; TO ADD SECTION 44-7-295, SO AS TO AUTHORIZE THE DEPARTMENT TO CONDUCT INSPECTIONS AND COPY RECORDS OF HEALTH FACILITIES TO ASCERTAIN STATUTORY COMPLIANCE; TO AMEND SECTION 44-7-315, RELATING TO INFORMATION OBTAINED BY THE DEPARTMENT WHEN CONDUCTING INSPECTIONS OF HEALTH FACILITIES, SO AS TO PROVIDE THAT SUCH INSPECTIONS INCLUDE INSPECTIONS OF ACTIVITIES LICENSED BY THE DEPARTMENT, TO MAKE TECHNICAL CORRECTIONS, AND TO DELETE REFERENCES TO GROUP HOMES; AND TO AMEND SECTION 44-7-320, RELATING TO SANCTIONS THAT THE DEPARTMENT MAY IMPOSE FOR VIOLATIONS OF HEALTH FACILITY LICENSURE AND REGULATION REQUIREMENTS, SO AS TO AUTHORIZE THE DEPARTMENT TO BOTH SANCTION A LICENSEE AND TO IMPOSE A MONETARY PENALTY.
Referred to Committee on Medical, Military, Public and Municipal Affairs

H. 5142 (Word version) -- Reps. Davenport, Lee, Littlejohn, Mahaffey, Sinclair, W. D. Smith and Walker: A JOINT RESOLUTION TO PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION MAY NOT ERECT ANY TYPE OF BARRIER THAT WOULD RESTRICT ECONOMIC DEVELOPMENT ALONG INTERSTATE HIGHWAY 85 BUSINESS FROM ITS INTERSECTION WITH INTERSTATE HIGHWAY 585 TO ITS INTERSECTION WITH INTERSTATE HIGHWAY 26 IN SPARTANBURG COUNTY; AND TO PROVIDE THAT IF THE DEPARTMENT OF TRANSPORTATION MUST ERECT A BARRIER ALONG THIS PORTION OF HIGHWAY, THEN IT MUST OBTAIN APPROVAL FOR THE CONSTRUCTION PROJECT FROM THE SPARTANBURG COUNTY TRANSPORTATION COMMITTEE AND THE MEMBERS OF THE SPARTANBURG COUNTY LEGISLATIVE DELEGATION IN WHOSE DISTRICTS THE PROJECT WOULD BE LOCATED.
On motion of Rep. DAVENPORT, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.

H. 5143 (Word version) -- Reps. Parks, Scott, McLeod, Lloyd, Weeks, J. M. Neal, Mack, Toole, Battle, Duncan, Emory, Frye, Harrison, Howard, Lee, Miller, Ott, E. H. Pitts, M. A. Pitts, Rutherford, Sinclair, W. D. Smith, Taylor and Whipper: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-3-645 SO AS TO CREATE THE OFFENSE OF ASSAULT AND BATTERY OF A VULNERABLE ADULT AND TO PROVIDE A PENALTY.
Referred to Committee on Judiciary

S. 949--AMENDED AND ORDERED TO THIRD READING

Debate was resumed on the following Bill, the pending question being the consideration of Amendment No. 1, Rep. BINGHAM having the floor:

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\SWB\ 5995MM04), which was adopted:
Amend the bill, as and if amended, Section 40-57-135(C)(6) as found in SECTION 5, page 4, at line 36, by deleting the item in its entirety and inserting:
/(6) A licensee clearly shall reveal his license status in a personal transaction involving the purchase, sale, exchange, rental, lease, or auction of real estate. ~~This disclosure must be made before a person's material reliance upon the licensee which may be influenced by the representations of the licensee.~~ A licensee meets the requirements of this section by disclosing in underlined capital letters on the first page of the contract his license status in the real estate sales contract, exchange, rental, or lease agreement. Monies received in a personal rental transaction must be deposited in the licensee's personal trust account and do not have to be deposited in the broker's trust account, unless the real property is managed by the broker's company."/
Amend further, Section 40-57-137(O)(1) as found in SECTION 16, page 10, by deleting line 14 in its entirety and inserting:
/ "(O)(1) Prospective buyers and sellers of unlisted real estate who do not choose to /.
When amended item (1) shall read:
/"(O)(1) Prospective buyers and sellers of unlisted real estate who do not choose to establish an agency relationship with a licensee but who use the services of the licensee are considered customers ~~and shall receive~~. A licensee may offer the following services to a customer including, but not limited to:

~~(1)~~ ~~a meaningful explanation of agency relationships in real estate transactions including the customer's right to choose no representation by licensee;~~

~~(2)~~ ~~an explanation of scope of services to be provided by licensee;~~

~~(3)~~ ~~fairness, honesty, and accurate information in all dealings.~~

(a) identify and show property for sale, lease, or exchange;

(b) provide real estate statistics and information on property;

(d) act as a scribe in the preparation of real estate form contracts, leases, and related exhibits and addenda;

(e) locate a list of architects, engineers, surveyors, inspectors, lenders, insurance agents, attorneys, and other professionals; and

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

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

S. 949--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. CATO, with unanimous consent, it was ordered that S. 949 (Word version) be read the third time tomorrow.

H. 5020--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 5020 (Word version) -- Reps. Cato, Wilkins and Sandifer: A BILL TO AMEND SECTION 48-52-670, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GUARANTEED ENERGY SAVINGS CONTRACT, SO AS TO PROVIDE THAT THESE CONTRACTS SHALL BE KNOWN AS GUARANTEED ENERGY, WATER, OR WASTE WATER SAVINGS CONTRACTS AND TO FURTHER PROVIDE FOR THE REQUIREMENTS, TERMS, AND CONDITIONS OF THESE CONTRACTS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GJK\ 21139SD04), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Section 48-52-670 of the 1976 Code, as added by Act 499 of 1992, is amended to read:

"Section 48-52-670. (A) A governmental unit may enter into a guaranteed energy, water, or waste water savings ~~contracts~~ contract for a duration of more than one year with vendors of guaranteed energy, water, or waste water savings programs. The financing for the guaranteed energy, water, or waste water savings contracts may be provided by the vendor of the guaranteed energy, water, or waste water savings program or by a third-party financial institution or company. No funds disclaimer clause as provided for in Section 11-35-2030 is required in these contracts. Repayment may be made from savings on the agency utility budget.

(B) A ~~guaranteed energy savings contract may be awarded~~ governmental unit may award a guaranteed energy, water, or waste water savings contract pursuant to Section 11-35-1530 or in the case of a governmental unit not subject to the South Carolina Consolidated Procurement Code, pursuant to other applicable procurement law if it includes a written guarantee that savings will meet or exceed the cost of energy, water, or waste water conservation measures. A governmental unit may request that the State Energy Office review the methodology used by the guaranteed energy, water, or waste water savings vendor to project and measure savings and future billable revenues. The State Energy Office shall deliver the written approval or shall deliver a written notice that it has determined not to deliver the approval within thirty days of the receipt of a guaranteed energy, water, or waste water performance contract. The State Energy Office is authorized to charge a reasonable hourly rate for its review of guaranteed energy, water, or waste water savings programs or guaranteed energy, water, or waste water savings contracts, and the payment of the charges may be included in the financing for the guaranteed energy, water, or waste water savings contract.

(C) For purposes of this section, 'governmental unit' means a state government agency, department, institution, college, university, technical school, legislative body, or other establishment or official of the executive, judicial, or legislative branches of this State authorized by law to enter into contracts, including all local political subdivisions, including, but not limited to, counties, municipalities, public school districts, or public service or special purpose districts.

(D) For purposes of this section, 'guaranteed energy, water, or waste water savings contract' means a contract for the evaluation and recommendation of energy, water, or waste water conservation measures and for implementation of one or more of these measures. The contract must provide that all payments, except obligations on termination of the contract before its expiration, must be made over time and the energy, water, or waste water cost savings or billable revenue increases resulting from implementation of the energy, water, or waste water conservation measures may be used to make payments for the energy, water, or waste water conservation systems installed pursuant to guaranteed energy, water, or waste water savings contracts. Annual revenues or savings from the guaranteed contract may be less than annual payments, if during the length of the contract aggregate savings occur as provided for by the terms of the contract.

(E) For purposes of this section 'energy, water, or waste water conservation measure' means a training program, or facility alteration, or technology upgrade designed to ~~reduce energy~~ ~~consumption or operating~~ produce measurable, long-term reductions in energy, water, waste water, or other consumption, personnel costs, operational costs, including, but not limited to:

(1) insulation of the building structure or systems within the building;

(2) storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;

(3) automated or computerized energy control systems;

(4) heating, ventilating, or air conditioning system modifications or replacements;

(5) replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made;

(6) energy recovery systems;

(7) cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings;

(8) ~~energy~~ water and sewer conservation measures ~~that provide~~ ~~long-term operating cost reductions~~ including, without limitation, plumbing fixtures and infrastructure;

(9) equipment upgrades that improve accuracy of billable revenue generating systems;

(10) automated, electronic, or remotely controlled systems or measures that reduce direct personnel costs; and

(11) such other energy, water, or waste water measures as may provide measurable, long-term operating costs reductions or billable revenue increases."
SECTION 2. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.

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

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

H. 5020--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. SANDIFER, with unanimous consent, it was ordered that H. 5020 (Word version) be read the third time tomorrow.

H. 5002--OBJECTIONS

The following Bill was taken up:

H. 5002 (Word version) -- Reps. Cato and Tripp: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-90-35 SO AS TO PROVIDE FOR CONFIDENTIALITY OF INFORMATION SUBMITTED BY A CAPTIVE INSURANCE COMPANY PURSUANT TO THE PROVISIONS OF CHAPTER 90, TITLE 38 AND TO PROVIDE EXCEPTIONS; TO AMEND SECTION 38-87-30, RELATING TO CHARTERING RISK RETENTION GROUPS, SO AS TO REQUIRE A CAPTIVE INSURANCE COMPANY TO COMPLY WITH THESE PROVISIONS; TO AMEND SECTION 38-90-10, AS AMENDED, RELATING TO DEFINITIONS USED IN CONNECTION WITH A CAPTIVE INSURANCE COMPANY, SO AS TO CHANGE THE DEFINITIONS OF "INDUSTRIAL INSURED GROUP" AND "PARENT"; TO AMEND SECTION 38-90-20, AS AMENDED, RELATING TO LICENSING A CAPTIVE INSURANCE COMPANY BY THE DIRECTOR OF INSURANCE, SO AS TO AUTHORIZE A NONPROFIT CORPORATION TO BE LICENSED AND PROVIDE CONSISTENCY WITH THE PROVISIONS OF SECTION 38-90-35 REGARDING CONFIDENTIAL MATERIALS, AND PROVIDE A PROCEDURE BY WHICH A FOREIGN OR ALIEN CAPTIVE INSURANCE COMPANY MAY BECOME A DOMESTIC CAPTIVE INSURANCE COMPANY; TO AMEND SECTION 38-90-25, RELATING TO THE AUTHORITY OF A CAPTIVE INSURANCE COMPANY TO WRITE REINSURANCE COVERING PROPERTY AND CASUALTY INSURANCE OR REINSURANCE CONTRACTS, SO AS TO PROVIDE CONSISTENCY WITH THE PROVISIONS OF SECTION 38-90-35 REGARDING CONFIDENTIAL MATERIALS; TO AMEND SECTION 38-90-40, AS AMENDED, RELATING TO THE LICENSING OF A CAPTIVE INSURANCE COMPANY BY THE DIRECTOR OF INSURANCE BASED ON THE CAPITALIZATION OF THE COMPANY, SO AS TO PROVIDE CAPITALIZATION REQUIREMENTS FOR LICENSING A NONPROFIT CORPORATION AS A CAPTIVE INSURANCE COMPANY; TO AMEND SECTION 38-90-50, AS AMENDED, RELATING TO LICENSING A CAPTIVE INSURANCE COMPANY BASED ON CERTAIN MINIMUM AMOUNTS OF FREE SURPLUS, SO AS TO CHANGE THE REQUIREMENTS FOR A SPONSORED CAPTIVE INSURANCE COMPANY; TO AMEND SECTION 38-90-60, AS AMENDED, RELATING TO INCORPORATION OPTIONS AND REQUIREMENTS OF CERTAIN CAPTIVE INSURANCE COMPANIES, SO AS TO ADD AN ADDITIONAL OPTION FOR A NONPROFIT COMPANY; TO AMEND SECTION 38-90-70, AS AMENDED, RELATING TO FILING REPORTS BY A CAPTIVE INSURANCE COMPANY, SO AS TO MAKE CERTAIN INFORMATION SUBMITTED IN A REPORT CONFIDENTIAL; TO AMEND SECTION 38-90-80, RELATING TO THE INSPECTION AND EXAMINATION OF A CAPTIVE INSURANCE COMPANY BY THE DIRECTOR OF INSURANCE, SO AS TO PROVIDE THAT CERTAIN CONFIDENTIALITY PROVISIONS DO NOT APPLY TO THE DIRECTOR IN MAKING FINAL REPORTS; TO AMEND SECTION 38-90-140, AS AMENDED, RELATING TO THE TAXATION OF A CAPTIVE INSURANCE COMPANY, SO AS TO CHANGE THE DEFINITION OF "COMMON OWNERSHIP AND CONTROL" TO INCLUDE NONPROFIT CORPORATIONS; TO AMEND SECTION 38-90-180, AS AMENDED, RELATING TO THE APPLICABILITY OF THE PROVISIONS OF CHAPTERS 26 AND 27, TITLE 38, TO INSURANCE REORGANIZATIONS, RECEIVERSHIPS, AND INJUNCTIONS TO CAPTIVE INSURANCE COMPANIES, SO AS TO MAKE THE TERMS AND CONDITIONS APPLY TO TITLE 38 INSTEAD OF CHAPTERS 26 AND 27, TITLE 38; AND TO REPEAL SECTION 38-90-170 RELATING TO APPLICABILITY OF THE TERMS AND CONDITIONS OF TITLE 38 TO INSURANCE REORGANIZATIONS, RECEIVERSHIPS, AND INJUNCTIONS TO CAPTIVE INSURANCE COMPANIES FORMED UNDER CHAPTER 90, TITLE 38.

Reps. YOUNG, RICE and HINSON objected to the Bill.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\DKA\ 3882DW04):
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 90, Title 38 of the 1976 Code is amended by adding:

"Section 38-90-35. Information submitted pursuant to the provisions of this chapter 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 insurance 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; or

(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."
SECTION 2. Section 38-87-30(A) of the 1976 Code is amended to read:

"(A) A risk retention group ~~must~~, pursuant to the provisions of this title, must be chartered and licensed to write only liability insurance under this chapter and, except as provided elsewhere in this chapter, or Chapter 90 for a risk retention group licensed as a captive insurance company, shall comply with all of the laws, regulations, and requirements applicable to ~~such~~ these insurers chartered and licensed in this State and with Section 38-87-40 to the extent ~~such~~ these requirements are not a limitation on laws, regulations, or requirements of this State."
SECTION 3. Section 38-90-10(18) and (20) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"(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 limited liability company; 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 Liability Risk Retention Act of 1986 15 U.S.C. Section 3901, et seq., as amended, and Chapter 87, Title 38, as a corporation or other limited liability association taxable as a stock insurance company or a mutual insurer under this title.

(20) 'Parent' means any corporation, limited liability company, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent of the outstanding voting ~~securities~~ interests of a captive insurance company."
SECTION 4. Section 38-90-20(B) and (C) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"(B) To conduct insurance business in this State a captive insurance company shall:

(1) obtain from the director a license authorizing it to conduct insurance business in this State;

(2) hold at least one board of director's meeting, or in the case of a reciprocal insurer, a subscriber's advisory committee meeting, or in the case of a limited liability company a meeting of the managing board, each year in this State;

(3) maintain its principal place of business in this State, or in the case of a branch captive insurance company, maintain the principal place of business for its branch operations in this State; and

(4) appoint a resident registered agent to accept service of process and to otherwise act on its behalf in this State. In the case of a captive insurance company:

(a) formed as a corporation, a nonprofit corporation, or a limited liability company, whenever the registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the director must be an agent of the captive insurance company upon whom any process, notice, or demand may be served;

(b) formed as a reciprocal insurer, whenever the registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the director must be an agent of the captive insurance company upon whom any process, notice, or demand may be served.

(C)(1) Before receiving a license, a captive insurance company:

(a) formed as a corporation or a nonprofit corporation, shall file with the director a certified copy of its ~~charter~~ articles of incorporation and bylaws, a statement under oath of its president and secretary showing its financial condition, and any other statements or documents required by the director;

(b) formed as a limited liability company, shall file with the director a certified copy of its articles of organization and operating agreement, a statement under oath by its managers showing its financial condition, and any other statements or documents required by the director;

(i) file with the director a certified copy of the power of attorney of its attorney-in-fact, a certified copy of its subscribers' agreement, a statement under oath of its attorney-in-fact showing its financial condition, and any other statements or documents required by the director; and

(ii) submit to the director for approval a description of the coverages, deductibles, coverage limits, and rates and any other information the director may reasonably require. If there is a subsequent material change in an item in the description, the reciprocal captive insurance company shall submit to the director for approval an appropriate revision and may not offer any additional kinds of insurance until a revision of the description is approved by the director. The reciprocal captive insurance company shall inform the director of any material change in rates within thirty days of the adoption of the change.

(2) In addition to the information required by ~~(C)~~ item (1), an applicant captive insurance company shall file with the director evidence of:

(a) the amount and liquidity of its assets relative to the risks to be assumed;

(b) the adequacy of the expertise, experience, and character of the person or persons who will manage it;

(d) the adequacy of the loss prevention programs of its parent, member organizations, or industrial insureds as applicable; and

(e) such other factors considered relevant by the director in ascertaining whether the proposed captive insurance company will be able to meet its policy obligations.

(3) In addition to the information required by ~~(C)~~ items (1) and ~~(C)~~(2) an applicant sponsored captive insurance company shall file with the director:

(a) a business plan demonstrating how the applicant will account for the loss and expense experience of each protected cell at a level of detail found to be sufficient by the director, and how it will report the experience to the director;

(b) a statement acknowledging that all financial records of the sponsored captive insurance company, including records pertaining to any protected cells, must be made available for inspection or examination by the director;

(d) evidence that expenses will be allocated to each protected cell in an equitable manner.

(4) Information submitted pursuant to this ~~subsection~~ 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,~~ as provided in Section 38-90-35 except that:

~~(a)~~ information ~~may be~~ is discoverable by a party in a civil action or contested case to which the captive insurance company that submitted the information is a party, upon a ~~showing by the party seeking to discover the information~~ specific finding by the court that:

(a) the captive is a necessary party to the action and not joined only for the purposes of evading the confidentiality provisions of this chapter;

~~(i)~~(b) the information sought is relevant, material to, and necessary for the ~~furtherance of the action or case~~ prosecution or defense of the claim asserted in litigation; and

~~(ii)~~(c) the information sought is ~~unavailable from other nonconfidential sources~~ not available through another source~~; and~~.

~~(iii)~~ a subpoena issued by a judicial or administrative officer of competent jurisdiction has been submitted to the director; however, the provisions of subsection (C)(4) do not apply to an industrial insured captive insurance company insuring the risks of an industrial insured group; and

~~(b)~~ ~~the director may disclose the information to a public officer having jurisdiction over the regulation of insurance in another state if:~~

~~(i)~~ ~~the public official agrees in writing to maintain the confidentiality of the information; and~~

~~(ii)~~ ~~the laws of the state in which the public official serves require the information to be confidential.~~"
SECTION 5. Section 38-90-20(F) of the 1976 Code, as last amended by Act 228 of 2002, is further amended to read:

"(F) ~~The terms and conditions set forth in Section 38-5-170 apply in full to captive insurance companies licensed under this chapter.~~ A foreign or alien captive insurance company, upon approval of the director or his designee, may become a domestic captive insurance company by complying with all of the requirements of law relative to the organization and licensing of a domestic captive insurance company of the same or equivalent type in this State and by filing with the Secretary of State its articles of association, charter, or other organizational document, together with appropriate amendments to them adopted in accordance with the laws of this State bringing those articles of association, charter, or other organizational document into compliance with the laws of this State, along with a certificate of general good issued by the director. After this is accomplished, the captive insurance company is entitled to the necessary or appropriate certificates and licenses to continue transacting business in this State and is subject to the authority and jurisdiction of this State. In connection with this redomestication, the director may waive any requirements for public hearings. It is not necessary for a company redomesticating into this State to merge, consolidate, transfer assets, or otherwise engage in any other reorganization, other than as specified in this section."
SECTION 6. Section 38-90-25(E) and (F), as added by Act 58 of 2001, is amended to read:

"(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~~ as provided in Section 38-90-35, except that:

~~(1)~~ information ~~may be~~ is discoverable by a party in a civil action or contested case to which the ~~submitting~~ captive ~~reinsurance~~ insurance company that submitted the information is a party, upon a ~~showing by the party seeking to discover the information~~ finding by the court that:

(1) the captive is a necessary party to the action and not joined only for the purposes of evading the confidentiality provisions of this chapter;

~~(a)~~(2) the information sought is relevant, material to, and necessary for the ~~furtherance of the action or case~~ prosecution or defense of the claim asserted in litigation; and

~~(b)~~(3) the information sought is ~~unavailable from other nonconfidential sources~~ not available through another source;.

~~(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 7. Section 38-90-40 of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"Section 38-90-40. (A)(1) The director may not issue a license to a captive insurance company unless the company possesses and maintains unimpaired paid-in capital of:

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

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

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

~~(4)~~(d) in the case of a sponsored captive insurance company, not less than five hundred thousand dollars; however, if the sponsored captive insurance company does not assume any risk, the risks insured by the protected cells are homogeneous and there are no more than ten cells, the director may reduce this amount to an amount not less than one hundred fifty thousand dollars;

~~(5)~~(e) in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2)(a) Except for a sponsored captive insurance company that does not assume any risk, the capital ~~may~~ must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State ~~and~~ or as approved by the director.

(b) For a sponsored captive insurance company that does not assume any risk, the capital also may be in the form of other high quality securities as approved by the director.

(B)(1) The director may not issue a license to a captive insurance company incorporated as a nonprofit corporation unless the company possesses and maintains unrestricted net assets of:

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

(b) in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2) Contributions to a captive insurance company incorporated as a nonprofit corporation must in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

(C) The director may prescribe additional capital or net assets based upon the type, volume, and nature of insurance business transacted. ~~This~~ Contributions in connection with these prescribed additional net assets or capital may be in the form of an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with a branch office in this State or as approved by the director.

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

~~(D)~~(E)(1) A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus, in excess of the limitations set forth in Section 38-21-250 through Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director.

(2) A captive insurance company incorporated as a nonprofit corporation may not make any distributions without the prior approval of the director."
SECTION 8. Section 38-90-50 of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"Section 38-90-50. (A)(1) The director may not issue a license to a captive insurance company unless the company possesses and maintains free surplus of:

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

~~(2)~~(b) in the case of an association captive insurance company incorporated as a stock insurer or organized as a limited liability company, not less than three hundred fifty thousand dollars;

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

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

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

~~(6)~~(f) in the case of a sponsored captive insurance company, not less than five hundred thousand dollars; however, if the sponsored captive insurance company does not assume any risk, the risks insured by the protected cells are homogeneous and there are no more than ten cells, the director may reduce this amount to an amount not less than one hundred fifty thousand dollars; and

~~(7)~~(g) in the case of a special purpose captive insurance company, an amount determined by the director after giving due consideration to the company's business plan, feasibility study, and pro-formas, including the nature of the risks to be insured.

(2)(a) Except for a sponsored captive insurance company that does not assume any risk, the surplus ~~may~~ must be in the form of cash, cash equivalent, or an irrevocable letter of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System with the branch office in this State and approved by the director.

(b) For a sponsored captive insurance company that does not assume any risk, the surplus also may be in the form of other high quality securities as approved by the director.

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

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

(D) A captive insurance company may not pay a dividend out of, or other distribution with respect to, capital or surplus in excess of the limitations set forth in Section 38-21-270, without the prior approval of the director. Approval of an ongoing plan for the payment of dividends or other distribution must be conditioned upon the retention, at the time of each payment, of capital or surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the director."
SECTION 9. Section 38-90-60(A), (D), (E), (I), (L), and (M) of the 1976 Code, as last amended by Act 73 of 2003, is further amended to read:

"(A) A pure captive insurance company or a sponsored captive insurance company may be:

(1) incorporated as a stock insurer with its capital divided into shares and held by the stockholders; or

(2) incorporated as a public benefit, mutual benefit, or religious nonprofit corporation with members in accordance with the South Carolina Nonprofit Corporation Act of 1994; or

(3) organized as a limited liability company with its capital divided into capital accounts and held by its members.

(D) In the case of a captive insurance company formed as a corporation, a nonprofit corporation, or a limited liability company, before the articles of incorporation or articles of organization are transmitted to the Secretary of State, the incorporators or organizers shall petition the director to issue a certificate setting forth a finding that the establishment and maintenance of the proposed entity will promote the general good of the State. In arriving at this finding the director shall consider:

(1) the character, reputation, financial standing, and purposes of the incorporators or organizers;

(2) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers and directors or managers; and

(3) other aspects as the director considers advisable.

(E) The articles of incorporation or articles of organization, the certificate issued pursuant to subsection (D), and the organization fees required by Section 33-1-220, 33-31-122, or 33-44-1204, as applicable, must be transmitted to the Secretary of State, who shall record both the articles of incorporation or articles of organization and the certificate.

(I) In the case of a captive insurance company formed as a corporation or a nonprofit corporation, at least one of the members of the board of directors of a captive insurance company incorporated in this State must be a resident of this State.

(L) A captive insurance company formed as a corporation, a nonprofit corporation, or a limited liability company, pursuant to the provisions of this chapter has the privileges and is subject to the provisions of the general corporation law, including the South Carolina Nonprofit Corporation Act of 1994 for nonprofit corporations and the South Carolina Uniform Limited Liability Company Act of 1996 for limited liability companies, as applicable, as well as the applicable provisions contained in this chapter. If a conflict occurs between a provision of the general corporation law, including the South Carolina Nonprofit Corporation Act of 1994 for nonprofit corporations and the South Carolina Uniform Limited Liability Company Act of 1996 for limited liability companies, as applicable, and a provision of this chapter, the latter controls. The provisions of this title pertaining to mergers, consolidations, conversions, mutualizations, and redomestications apply in determining the procedures to be followed by a captive insurance company in carrying out any of the transactions described in those provisions, except the director may waive or modify the requirements for public notice and hearing in accordance with regulations which the director may promulgate addressing categories of transactions. If a notice of public hearing is required, but no one requests a hearing, the director may cancel the hearing.

(M)~~(1)~~ A captive insurance company formed as a reciprocal insurer pursuant to the provisions of this chapter has the privileges and is subject to Chapter 17 in addition to the applicable provisions of this chapter. If a conflict occurs between the provisions of Chapter 17 and the provisions of this chapter, the latter controls. To the extent a reciprocal insurer is made subject to other provisions of this title pursuant to Chapter 17, the provisions are not applicable to a reciprocal insurer formed pursuant to the provisions of this chapter unless the provisions are expressly made applicable to a captive insurance company pursuant to the provisions of this chapter.

~~(2)~~ In addition to the provisions of item (1), a captive insurance company organized as a reciprocal insurer that is an industrial insured group has the privileges and is subject to the provisions of Chapter 17 in addition to applicable provisions of this title."
SECTION 10. Section 38-90-70(B) of the 1976 Code, as last amended by Act 58 of 2001, is further amended to read:

"(B) Before March 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 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. Information submitted pursuant to this section is confidential as provided in Section 38-90-35, except for reports submitted by a captive insurance company formed as a Risk Retention Group under the Product Liability Risk Retention Act of 1986, 15 U.S.C. Section 3901 et seq., as amended."
SECTION 11. Section 38-90-80(B) of the 1976 Code is amended to read:

"(B) All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of documents produced by, obtained by, or disclosed to the director or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the director or an employee or agent of the director without the prior written consent of the company, except to the extent provided in this subsection.

(1) Nothing in this subsection prevents the director from using this information in furtherance of the director's regulatory authority under this title.

(2) The director may grant access to this information to public officers having jurisdiction over the regulation of insurance in any other state or country, or to law enforcement officers of this State or any other state or agency of the federal government at any time, so long as the officers receiving the information agree in writing to hold it in a manner consistent with this section.

(3) The confidentiality provisions of this subsection do not extend to final reports produced by the director in inspecting or examining a captive insurance company formed as a Risk Retention Group under the Product Liability Risk Retention Act of 1986, 15 U.S.C. Section 3901 et seq., as amended."
SECTION 12. Section 38-90-140(F) of the 1976 Code is amended to read:

"(F) For the purposes of this section, 'common ownership and control' means:

(1) in the case of stock corporations or limited liability companies, the direct or indirect ownership of eighty percent or more of the outstanding voting stock or membership interests of two or more corporations or limited liability companies by the same person or entity; ~~and~~

(2) in the case of nonprofit corporations, the direct or indirect ownership of eighty percent or more of the voting power of two or more nonprofit corporations by the same member or members; and

(3) in the case of mutual corporations, the direct or indirect ownership of eighty percent or more of the surplus and the voting power of two or more corporations by the same member or members."
SECTION 13. Section 38-90-180(A) of the 1976 Code, as last amended by Act 82 of 2001, is further amended to read:

"(A) Except as otherwise provided in this section, the terms and conditions set forth in ~~Chapters 26 and 27~~ in this title pertaining to insurance reorganizations, receiverships, and injunctions apply in full to captive insurance companies formed or licensed under this chapter."
SECTION 14. Sections 38-90-10 through 38-90-240 of the 1976 Code are designated Article 1, Chapter 90, Title 38 of the 1976 Code and entitled "Captive Insurance Companies".
SECTION 15. Chapter 90, Title 38 of the 1976 Code is amended by adding:

"Article 3
Special Purpose Financial Captives

Section 38-90-410. This article provides for the creation of Special Purpose Financial Captives (SPFCs) exclusively to facilitate the securitization of one or more risks, as a means of accessing alternative sources of capital and achieving the benefits of securitization. SPFCs are created for the limited purpose of entering into a SPFC contract and insurance securitization transactions directly or indirectly with investors and into related agreements to facilitate the accomplishment and execution of those transactions. The creation of SPFCs is intended to achieve greater efficiencies in structuring and executing insurance securitizations, to diversify and broaden insurers' access to sources of capital, to facilitate access for many insurers to insurance securitization and capital markets financing technology, and to further the economic development and expand the interest of the State of South Carolina through its captive insurance program.

Section 38-90-420. For purposes of this article:

(1) 'Affiliated company' means a company in the same corporate system as a parent, by virtue of common ownership, control, operation, or management.

(2) '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 must be presumed to exist if a 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 another person. This presumption may be rebutted by a showing that control does not exist. Notwithstanding other provisions of this item, for purposes of this article, the fact that a SPFC exclusively provides reinsurance to a ceding insurer under a SPFC contract is not by itself sufficient grounds for a finding that the SPFC and ceding insurer are under common control.

(3) 'Counterparty' means a SPFC's parent or affiliated company, as ceding insurer and counterparty to the SPFC contract, or subject to the prior approval of the director, a nonaffiliated company.

(4) 'Director' means the Director of the South Carolina Department of Insurance or the director's designee.

(5) 'Department' means the South Carolina Department of Insurance.

(6) 'Fair value' means:

(a) as to cash, the amount of it; and

(b) as to an asset other than cash:

(i) the amount at which that asset could be bought or sold in a current transaction between arms-length, willing parties;

(ii) the quoted mid-market price for the asset in active markets must be used if available; and

(iii) if quoted mid-market prices are not available, a value determined using the best information available considering values of similar assets and other valuation methods, such as present value of future cash flows, historical value of the same or similar assets, or comparison to values of other asset classes, the value of which have been historically related to the subject asset.

(7) 'Insolvency' or 'insolvent' means that the SPFC is unable to pay its obligations when they are due, unless those obligations are the subject of a bona fide dispute.

(8) 'Insurance securitization' means a package of related risk transfer instruments, capital market offerings, and facilitating administrative agreements by which proceeds are obtained by a SPFC directly or indirectly through the issuance of securities, which proceeds are held in trust pursuant to the provisions of this article to secure the obligations of the SPFC under one or more SPFC contracts with a counterparty, where investment risk to the holders of these securities is contingent upon the obligations of the SPFC to the counterparty under the SPFC contract in accordance with the transaction terms.

(9) 'Management' means the board of directors, managing board, or other individual or individuals vested with overall responsibility for the management of the affairs of the SPFC, including the election and appointment of officers or other of those agents to act on behalf of the SPFC.

(10) 'Organizational document' means the SPFC's Articles of Incorporation, Articles of Organization, Bylaws, Operating Agreement, or other foundational documents that establish the SPFC as a legal entity or prescribes its existence.

(11) 'Parent' means any corporation, limited liability company, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent of the outstanding voting securities of a SPFC.

(12) 'Permitted investments' means those investments that meet the qualifications pursuant to Section 38-90-530.

(13) 'Protected cell' means a separate account established and maintained by a SPFC for one SPFC contract and the accompanying insurance securitization with a counterparty as further provided for in Chapter 10 of this title.

(14) 'Qualified United States financial institution' means, for purposes of meeting the requirements of a trustee as specified in Section 38-90-530, a financial institution that is eligible to act as a fiduciary of a trust, and is:

(a) organized, or, in the case of a United States branch or agency office of a foreign banking organization, is licensed under the laws of the United States or any state of the United States; and

(b) regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.

(15) 'Securities' means those different types of debt obligations, equity, surplus certificates, surplus notes, funding agreements, derivatives, and other legal forms of financial instruments in form approved by the director.

(16) 'SPFC' or 'Special Purpose Financial Captive' means a captive insurance company which has received a certificate of authority from the director for the limited purposes provided for in this article.

(17) 'SPFC contract' means a contract between the SPFC and the counterparty pursuant to which the SPFC agrees to provide insurance or reinsurance protection to the counterparty for risks associated with the counterparty's insurance or reinsurance business.

(18) 'SPFC securities' means the securities issued by a SPFC.

(19) 'Surplus note' means an unsecured subordinated debt obligation issued by the SPFC under the general corporation law of this State and deemed to be a surplus certificate as described in Section 38-13-110(4) and otherwise possessing characteristics consistent with paragraph 3 of the Statement of Statutory Accounting Principals No. 41, as amended, National Association of Insurance Commissioners (NAIC).

Section 38-90-430. (A) No provisions of the Code of Laws of South Carolina, 1976, other than those specifically referenced in this article, apply to a SPFC, and those provisions apply only as modified by this article. If a conflict occurs between a provision of the Code of Laws of South Carolina, 1976, and a provision of this article, the latter controls.

(B) Sections 38-3-110 through 38-3-240, 38-5-130, and 38-57-200 apply to SPFCs.

(C) The director, by rule, regulation, or order, may exempt SPFCs, on a case by case basis, from provisions of this article that he determines to be inappropriate given the nature of the risks to be insured.

Section 38-90-440. (A) A SPFC, when permitted by its organizational documents, may apply to the director for a license to transact business as authorized by this article. A SPFC only may insure or reinsure the risks of its counterparty. Notwithstanding another provisions of this article, a SPFC may purchase reinsurance to cede the risks assumed under the SPFC contract as approved by the director.

(B) To transact business in this State a SPFC shall:

(1) obtain from the director a license authorizing it to conduct insurance or reinsurance business, or both, in this State;

(2) hold at least one management meeting each year in this State;

(3) maintain its principal place of business in this State; and

(4) appoint a resident registered agent to accept service of process and to otherwise act on its behalf in this State. If the registered agent, with reasonable diligence, is not found at the registered office of the SPFC, the director must be an agent of the SPFC upon whom any process, notice, or demand may be served.

(C)(1) Before receiving a license, a SPFC shall file with the director a certified copy of its organizational documents, a statement under oath of its president and secretary showing its financial condition, and any other statements or documents required by the director.

(2) In addition to the information required by item (1), an applicant SPFC shall file with the director evidence of:

(a) the amount and liquidity of its assets relative to the risks to be assumed;

(b) the adequacy of the expertise, experience, and character of the person or persons who manages it;

(d) other factors considered relevant by the director in ascertaining whether the proposed SPFC is able to meet its policy obligations.

(3) In addition to the information required by items (1) and (2), and to the provisions of Section 38-90-480, if a protected cell is used, an applicant SPFC shall file with the director:

(a) a business plan demonstrating how the applicant accounts for the loss and expense experience of each protected cell at a level of detail found to be sufficient by the director, and how it reports the experience to the director;

(b) a statement acknowledging that all financial records of the SPFC, including records pertaining to any protected cells, must be made available for inspection or examination by the director;

(d) evidence that expenses are allocated to each protected cell in an equitable manner.

(4) Information submitted pursuant to this subsection is confidential and is subject to Section 38-90-610.

(D) Section 38-13-60 applies to examinations, investigations, and processing conducted pursuant to the authority of this article.

(E) In addition, a complete SPFC application must include the following:

(1) an affidavit from the applicant verifying that the prospective SPFC meets the provisions of this article;

(2) a representation from the applicant that the prospective SPFC will operate only pursuant to the provisions in this article;

(3) biographical affidavits in NAIC format of all of the prospective SPFC's officers and directors, providing their legal names, any names under which they have or are conducting their affairs, and any affiliations with other persons as defined in Chapter 21 of this title, together with other biographical information as the director may request;

(4) the source and form of the minimum capital to be contributed to the SPFC;

(5) a plan of operation, consisting of a description of the contemplated insurance securitization, the SPFC contract, and related transactions, which must include:

(a) draft documentation or, at the discretion of the director, a written summary of all material agreements that are entered into to effectuate the SPFC contract and the insurance securitization, to include the names of the counterparty, the nature of the risks being assumed, the proposed use of protected cells, if any, and the maximum amounts, purpose, and nature and the interrelationships of the various transactions required to effectuate the insurance securitization;

(b) the investment strategy of the SPFC and a representation from the applicant that the investment strategy complies with the investment provisions provided for in this article;

(c) a description of the underwriting, reporting, and claims payment methods by which losses covered by the SPFC contract are reported, accounted for, and settled;

(d) a representation from the applicant that the trust agreement, the trusts holding assets that secure the obligations of the SPFC under the SPFC contract, and the SPFC contract with the counterparty in connection with the contemplated insurance securitization is structured pursuant to the provisions in this article; and

(e) a pro forma balance sheet and income statements illustrating various stress case scenarios for the performance of SPFC under the SPFC contract.

(F)(1) A SPFC shall pay to the department a nonrefundable fee of two hundred dollars for processing its application for license. In addition, the director may retain legal, financial, and examination services from outside the department to examine and investigate the application, the reasonable cost of which may be charged against the applicant, or the director may use internal resources to examine and investigate the application for a fee of twelve thousand dollars, half of which is payable upon filing of the application and the remainder upon licensure.

(2) In addition, a SPFC also shall pay a license fee for the year of registration of three hundred dollars and an annual renewal fee of five hundred dollars.

(3) A SPFC shall pay an annual review fee of twenty-four hundred dollars or, if higher, the actual cost as determined by the director.

(G) The director may grant a license authorizing the SPFC to transact business as a SPFC in this State upon finding that:

(1) the proposed plan of operation provides a reasonable and expected successful operation;

(2) the terms of the SPFC contract and related transactions comply with this article;

(3) the proposed plan of operation is not hazardous to any counterparty;

(4) the commissioner of the state of domicile of each counterparty has notified the director in writing or otherwise provided assurance satisfactory to the director that it has approved or nondisapproved the transaction;

(5) the director may grant a license authorizing the SPFC to do insurance or reinsurance business in this State until March first at which time the license may be renewed;

(6) the certificate of authority authorizing the SPFC to transact business is limited only to the insurance or reinsurance activities that the SPFC is allowed to conduct pursuant to this article;

(7) the SPFC shall provide a complete set of the documentation of the insurance securitization to the director upon closing of the transactions, including an opinion of legal counsel with respect to compliance with this article and any other applicable laws as of the effective date of the transaction;

(8) in evaluating the expectation of a successful operation, the director shall consider, among other factors, whether the proposed SPFC, and its management are of known good character and reasonably believed not to be affiliated, directly or indirectly, through ownership, control, management, reinsurance transactions, or other insurance or business relations, with a person known to have been involved in the improper manipulation of assets, accounts, or reinsurance; and

(H) A foreign or alien corporation or limited liability company, upon approval of the director, may become a SPFC by complying with all of the provisions of this article and by filing with the Secretary of State its organizational documents, together with appropriate amendments to it, as may be adopted pursuant to the provisions of this article to bring these organizational documents into compliance with this article. After this is accomplished, the foreign or alien corporation or limited liability company is entitled to the necessary or appropriate certificates or licenses to transact business as a SPFC in this State and is subject to the authority and jurisdiction of this State. In connection with this redomestication, the director may waive any requirements for public hearings. It is not necessary for a corporation or limited liability company redomesticating into this State to merge, consolidate, transfer assets, or otherwise engage in another reorganization, other than as specified in this section.

Section 38-90-450. (A) A SPFC may be established as a stock corporation, limited liability company, mutual, partnership, or other form of organization approved by the director.

(B) The SPFC's organizational documents limits the SPFC's authority to transact the business of insurance or reinsurance to those activities the SPFC conducts to accomplish its purpose as expressed in this article.

(C) The SPFC may not adopt a name that is the same as, deceptively similar to, or likely to be confused with or mistaken for another existing business name registered in this State.

(D) A SPFC may not have fewer than three incorporators or organizers of whom not fewer than two must be residents of this State.

(E) Before transmitting its organizational documents to the Secretary of State, the incorporators or organizers shall petition the director to issue a certificate setting forth a finding that the establishment and maintenance of the proposed SPFC promotes the general good of the State. In arriving at this finding the director shall consider:

(1) the character, reputation, financial standing, and purposes of the incorporators or organizers;

(2) the character, reputation, financial responsibility, insurance experience, and business qualifications of the officers, directors, partners, members, manager, or organizers, as applicable;

(3) other aspects as the director considers advisable.

(F) The organizational documents, the certificate issued pursuant to subsection (E), and the required organization fees must be transmitted to the Secretary of State, who shall record the relevant organizational documents.

(G) The capital stock of a SPFC incorporated as a stock insurer must be issued at not less than par value.

(H) At least one of the members of the management of the SPFC must be a resident of this State.

(I) A SPFC formed pursuant to the provisions of this article has the privileges of and is subject to the provisions of the Code of Laws of South Carolina, 1976, applicable to its formation, as well as the applicable provisions contained in this article. If a conflict occurs between a provision of the applicable law and a provision of this article, the latter controls.

Section 38-90-460. (A) A SPFC initially shall possess and after that maintain minimum capitalization of not less than two hundred and fifty thousand dollars. All of the minimum initial capitalization must be in cash. All other funds of the SPFC in excess of its minimum initial capitalization must be in the form of cash, cash equivalent, or securities invested as provided in Section 38-90-530 and approved by the director.

(B) Additional capitalization for the SPFC must be determined, if so required, by the director after giving due consideration to the SPFC's business plan, feasibility study, pro-formas, and the nature of the risks being insured or reinsured, which may be prescribed in formulas approved by the director.

Section 38-90-470. (A) A SPFC may insure only the risks of a counterparty.

(B) A SPFC may not issue a contract for assumption of risk or indemnification of loss other than a SPFC contract. However, the SPFC may cede risks assumed through a SPFC contract to third party reinsurers through the purchase of reinsurance or retrocession protection on terms approved by the director.

(C) A SPFC may enter into contracts and conduct other commercial activities related or incidental to and necessary to fulfill the purposes of the SPFC contract, insurance securitization, and this article. Those activities may include, but are not limited to: entering into SPFC contracts; issuing securities of the SPFC; complying with the terms of these contract or securities; entering into trust, swap, tax, administration, reimbursement, or fiscal agent transactions; or complying with trust indenture, reinsurance, or retrocession, and other agreements necessary or incidental to effectuate an insurance securitization in compliance with this article or the plan of operation approved by the director.

(D)(1) A SPFC may discount its reserves at discount rates as approved by the director.

(2) A SPFC shall file annually an actuarial opinion on reserves provided by an approved independent actuary.

Section 38-90-480. (A) A SPFC may establish and maintain one or more protected cells to insure or reinsure risks of one or more SPFC contracts with a counterparty, subject to the following conditions:

(1) each protected cell must be accounted for separately on the books and records of the SPFC to reflect the financial condition and results of operations of the protected cell, net income or loss, dividends or other distributions to the counterparty for the SPFC contract with each cell, and other factors as may be provided in the SPFC contract or required by the director;

(2) the assets of a protected cell must not be chargeable with liabilities arising out of another SPFC contract the SPFC may enter into with the counterparty;

(3) a sale, an exchange, or another transfer of assets may not be made by the SPFC between or among any of its protected cells without the consent of the director and each protected cell;

(4) except as otherwise contemplated in the SPFC contract and related transaction documents, a sale, an exchange, a transfer of assets, a dividend, or a distribution may not be made from a protected cell to a counterparty without the director's approval and may not be approved if the sale, exchange, transfer, dividend, or distribution would result in insolvency or impairment with respect to a protected cell;

(5) a SPFC annually shall file with the director financial reports the director requires, which must include, but are not limited to, accounting statements detailing the financial experience of each protected cell;

(6) a SPFC shall notify the director in writing within ten business days of a protected cell that is insolvent or otherwise unable to meet its claims payment or expense obligations;

(7) a SPFC contract with a protected cell does not take effect without the director's prior written approval, and the addition of each new protected cell constitutes a change in the business plan requiring the director's prior written approval. The director may retain legal, financial, and examination services from outside the department to examine and investigate the application for a protected cell, the reasonable cost of which may be charged against the applicant, or the director may use internal resources to examine and investigate the application the reasonable cost of which may be charged against the applicant up to a maximum of twelve thousand dollars.

(B) This section is adopted to provide a basis for the creation of protected cells by a SPFC as one means of accessing alternative sources of capital, lowering formation and administrative expenses, and achieving the benefits of insurance securitization. The creation of protected cells is intended to be a means to achieve more efficiencies in conducting insurance securitizations.

Section 38-90-490. (A) A SPFC may issue securities, including surplus notes and other forms of financial instruments, subject to and in accordance with the approval of the director.

(B) A SPFC, in connection with the issuance of securities, may enter into and perform all of its obligations under any required contracts to facilitate the issuance of these securities.

(1) issue surplus notes, under the general corporation law of this State, provided it is authorized to do so in its organizational documents;

(2) account for the proceeds of surplus notes as surplus and not as debt for purposes of statutory accounting;

(3) submit for prior approval of the director periodic written requests for payments of interest on and repayments of principal of surplus notes.

(D) Surplus notes issued by a SPFC constitutes surplus or contribution notes of the type described at Section 38-27-610(9).

(E) The director, without otherwise prejudicing the director's authority, may approve formulas for an ongoing plan of interest payments or principal repayments, or both, to provide guidance in connection with his ongoing reviews of requests to approve the payments on and principal repayments of the surplus notes.

(F) The obligation to repay principal or interest, or both, on the securities issued by the SPFC must reflect the risk associated with the obligations of the SPFC to the counterparty under the SPFC contract.

Section 38-90-500. A SPFC may enter into swap agreements, or other forms of asset management agreements, including guaranteed investment contracts, or other transactions that have the objective of leveling timing differences in funding of up-front or ongoing transaction expenses or managing asset, credit, or interest rate risk of the investments in the trust to ensure that the investments are sufficient to assure payment or repayment of the securities, and related interest or principal payments, issued pursuant to a SPFC insurance securitization transaction or the obligations of the SPFC under the SPFC contract.

Section 38-90-510. A SPFC, at any given time, may enter into and effectuate a SPFC contract with a counterparty, provided that the SPFC contract obligates the SPFC to indemnify the counterparty for losses and that contingent obligations of the SPFC under the SPFC contract are securitized through a SPFC insurance securitization and are funded and secured with assets held in trust for the benefit of the counterparty pursuant to the provisions of this article pursuant to agreements contemplated by this article and invested in a manner that meet the criteria as provided in Section 38-90-530.

(B) A SPFC may enter into agreements with affiliated companies and third parties and conduct business necessary to fulfill its obligations and administrative duties incidental to the insurance securitization and the SPFC contract. The agreements may include management and administrative services agreements and other allocation and cost sharing agreements, or swap and asset management agreements, or both, or agreements for other contemplated types of transactions provided in Section 38-90-500.

(1) require the SPFC to enter into a trust agreement specifying what recoverables or reserves, or both, the agreement is to cover and to establish a trust account for the benefit of the counterparty;

(2) stipulate that assets deposited in the trust account must be valued according to their current fair value and must consist only of permitted investments;

(3) require the SPFC, before depositing assets with the trustee, to execute assignments, endorsements in blank, or to transfer legal title to the trustee of all shares, obligations, or any other assets requiring assignments, in order that the counterparty, or the trustee upon the direction of the counterparty, may negotiate whenever necessary the assets without consent or signature from the SPFC or another entity;

(4) require that all settlements of account between the counterparty and the SPFC be made in cash or its equivalent; and

(5) stipulate that the SPFC and the counterparty agree that the assets in the trust account, established pursuant to the provisions of the SPFC contract, may be withdrawn by the counterparty at any time, notwithstanding any other provisions in the SPFC contract, and must be utilized and applied by the counterparty or any successor by operation of law of the counterparty, including, subject to the provisions of Section 38-90-600, but without further limitation, any liquidator, rehabilitator, receiver, or conservator of the counterparty, without diminution because of insolvency on the part of the counterparty or the SPFC, only for the following purposes:

(a) to transfer all of the assets into one or more trust accounts for the benefit of the counterparty pursuant to and in accordance with the terms of the SPFC contract and in compliance with the provisions of this article; and

(b) to pay any other incurred and paid amounts that the counterparty claims are due pursuant to and under the terms of the SPFC contract and in compliance with this article.

(D)(1) The SPFC contract may contain provisions that give the SPFC the right to seek approval from the counterparty to withdraw from the trust all or part of the assets, or income from them, contained in the trust and to transfer the assets to the SPFC, provided that:

(a) at the time of the withdrawal, the SPFC shall replace the withdrawn assets, excluding any income withdrawn, with other qualified assets having a fair value equal to the fair value of the assets withdrawn and that meet the provisions of Section 38-90-530; and

(b) after the withdrawals and transfer, the fair value of the assets in trust securing the obligations of the SPFC under the SPFC contract is no less than an amount needed to satisfy the funded requirement of the SPFC contract.

(2) The counterparty must be the sole judge as to the application of these provisions but may not unreasonably nor arbitrarily withhold its approval.

Section 38-90-520. In fulfilling its function, the SPFC shall adhere to the following requirements and, to the extent of its powers, shall ensure that contracts obligating other parties to perform certain functions incident to its operations are substantively and materially consistent with the following requirements and guidelines:

(1) The assets of a SPFC must be preserved and administered by or on behalf of the SPFC to satisfy the liabilities and obligations of the SPFC incident to the insurance securitization and other related agreements.

(2) Assets held by a SPFC in trust must be valued at their fair value.

(3) The proceeds from the sale of securities by the SPFC, directly or indirectly, to or for the benefit of investors must be deposited with the trustee to the extent required to secure its obligations under the SPFC contract as provided by this article and must be held or invested by the trustee pursuant to the provisions of Section 38-90-530 and the asset management agreement, if any, filed with the department.

(4) Assets of the SPFC, other than those held in trust for the counterparty, and income on trust assets received by the SPFC may be used to pay interest or other consideration on any securities or outstanding debt or other obligation of the SPFC, and nothing in this article may be construed or interpreted to prevent a SPFC from entering into a swap agreement or other asset management transaction that has the effect of hedging or guaranteeing the fixed or floating interest rate returns paid on the assets in trust or required for the securities issued by the SPFC generated from or other consideration or payment flows in the transaction.

(5) In the SPFC insurance securitization, the contracts or other relating documentation must contain provisions identifying the SPFC.

(6) Unless otherwise approved by the director, a SPFC may not:

(a) issue or otherwise administer primary insurance policies;

(b) enter into a SPFC contract with a person that is not licensed or otherwise authorized to transact the business of insurance or reinsurance in at least its state or country of domicile;

(c) assume or retain exposure to insurance or reinsurance losses for its own account that is not funded by proceeds from a SPFC securitization that meets the provisions of this article. However, the SPFC may wholly or partially reinsure or retrocede the risks assumed to a third party reinsurer on terms approved by the director.

(7) A SPFC may not:

(a) have any direct obligation to the policyholders or reinsureds of the counterparty;

(b) lend or otherwise invest, or place in custody, trust, or under management any of its assets with, or to borrow money or receive a loan from, other than by issuance of the securities pursuant to an insurance securitization, or advance from, anyone convicted of a felony, anyone who is untrustworthy or of known bad character, or anyone convicted of a criminal offense involving the conversion or misappropriation of fiduciary funds or insurance accounts, theft, deceit, fraud, misrepresentation, or corruption.

Section 38-90-530. (A) Assets of the SPFC held in trust to secure obligations under the SPFC contract must at all times be held in:

(1) cash and cash equivalents;

(2) securities listed by the securities Valuation Office of the NAIC and qualifying as admitted assets under statutory accounting convention in its state of domicile; or

(3) another form of security acceptable to the director.

(B) Assets of the SPFC that are pledged to secure obligations of the SPFC to a counterparty under a SPFC contract must be held in trust and administered by a qualified United States financial institution. The qualified United States financial institution does not control, is not controlled by, or is not under common control with, the SPFC or the counterparty.

(C) The agreement governing this trust must create one or more trust accounts into which all pledged assets must be deposited and held until distributed in accordance with the trust agreement. The pledged assets must be held by the trustee at one of the trustee's offices or branch offices in the United States and may be held in certificated or electronic form.

(D) The provisions for withdrawal by the counterparty of assets from the trust must be clean and unconditional, subject only to the following requirements:

(1) the counterparty has the right to withdraw assets from the trust account at any time, without notice to the SPFC, subject only to written notice to the trustee from the counterparty that funds in the amount requested are due and payable by the SPFC, pursuant to the terms of the SPFC contract;

(2) a statement or document does not need to be presented in order to withdraw assets, except the counterparty may be required to acknowledge receipt of withdrawn assets;

(3) the trust agreement must indicate that it is not subject to any conditions or qualifications outside of the trust agreement;

(4) the trust agreement must not contain references to any other agreements or documents.

(E) The trust agreement must be established for the sole use and benefit of the counterparty at least to the full extent of the obligations of the SPFC to the counterparty under the SPFC contract. If there is more than one counterparty, or more than one SPFC contract with the same counterparty, a separate trust agreement must be entered into with the counterparty and a separate trust account must be maintained for each SPFC contract with the counterparty, unless otherwise approved by the director.

(F) The trust agreement must provide for the trustee to:

(1) receive assets and hold all assets in a safe place;

(2) determine that all assets are in a form that the counterparty or the trustee, upon direction by the counterparty, may negotiate, whenever necessary, the assets, without consent or signature from the SPFC or another person or entity;

(3) furnish to the SPFC, the director, and the counterparty a statement of all assets in the trust account reported at fair value upon its inception and at intervals no less frequent than the end of each calendar quarter;

(4) notify the SPFC and the counterparty, within ten days, of any deposits to or withdrawals from the trust account;

(5) upon written demand of the counterparty, immediately take the necessary steps to transfer absolutely and unequivocally all right, title, and interest in the assets held in the trust account to the counterparty and deliver physical custody of the assets to the counterparty; and

(6) allow no substitutions or withdrawals of assets from the trust account, except pursuant to the trust agreement or SPFC contract, or as otherwise permitted by the counterparty.

(G) The trust agreement must provide that at least thirty days, but not more than forty-five days, before termination of the trust account, written notification of termination must be delivered by the trustee to the counterparty with a copy of the notice provided to the director.

(H) In addition to the requirements for the trust as provided in this article, the trust agreement may be made subject to and governed by the laws of any state. The state must be disclosed in the plan of operation filed with and approved by the director.

(I) The trust agreement must prohibit invasion of the trust corpus for the purpose of paying compensation to, or reimbursing the expenses of, the trustee.

(J) The trust agreement must provide that the trustee must be liable for its own negligence, wilful misconduct, or lack of good faith.

(K)(1) Notwithstanding the provisions of subsection (D)(3) and (4), or of Section 38-90-755(C)(5), when a trust agreement is established in conjunction with a SPFC contract, then the trust agreement or SPFC contract, or both, may provide that the counterparty shall undertake to use and apply any amounts drawn upon the trust account, without diminution because of the insolvency of the counterparty or the SPFC, only for one or more of the following purposes:

(a) to pay or reimburse the counterparty for payment of the SPFC's share of premiums to be returned to owners of counterparty's policies covered under the SPFC contract on account of cancellations of the policies under the counterparties policies;

(b) to pay or reimburse the counterparty for payment of the SPFC's share of surrenders, benefits, losses, or other benefits covered and payable pursuant to the provisions of the SPFC contract;

(c) to fund an account with the counterparty in an amount to secure the credit or reduction from liability for reinsurance coverage provided under the SPFC contract; or

(d) to pay any other amounts the counterparty claims are legally and properly due under the SPFC contract.

(2) Any assets deposited into an account of the counterparty pursuant to subitem (c) of item (1) or withdrawn by the counterparty pursuant to subitem (d) of item (1) and any interest or other earnings on them, must be held by the counterparty in trust and separate and apart from any general assets of the counterparty, for the sole purpose of funding the payments and reimbursements of the SPFC contract described in subitems (a) through (d) of item (1).

(3) The counterparty shall return to the SPFC amounts withdrawn under subitems (a) through (d) of item (1) in excess of actual amounts required under subitems (a) through (c) of item (1), and in excess of the amounts subsequently determined to be due under subitem (d) of item (1), plus interest at a rate not in excess of the prime rate for the amounts held pursuant to subitem (c) of item (1) unless a higher rate of interest has been awarded by a panel of arbitration, and any net costs or expenses, including attorneys' fees, awarded by a panel of arbitration.

(4) If the counterparty has received notification of termination of the trust account, and where the SPFC's entire obligations secured under the specific SPFC contract remain unliquidated and undischarged ten days before the termination date, to withdraw amounts equal to the obligations and deposit the amounts in a separate account, in the name of the counterparty, in a qualified United States financial institution, separate and apart from the counterparty's general assets, to the extent the obligations or liabilities have not been funded by the SPFC, in trust only for those uses and purposes specified in subitem (a) of item (1) as may remain executory after the withdrawal and for any period after the termination date until discharged.

Section 38-90-540. (A) A SPFC may not declare or pay dividends in any form to its owners other than in accordance with the insurance securitization transaction agreements, and in no extent shall the dividends decrease the capital of the SPFC below two hundred fifty thousand dollars, and, after giving effect to the dividends, the assets of the SPFC, including assets held in trust pursuant to the terms of the insurance securitization, must be sufficient to satisfy the director that it can meet its obligations. Approval by the director of an ongoing plan for the payment of dividends or other distribution by a SPFC must be conditioned upon the retention, at the time of each payment, of capital or surplus equal to or in excess of amounts specified by, or determined in accordance with formulas approved for the SPFC by the director.

(B) The dividends may be declared by the management of the SPFC if the dividends do not violate the provisions of this article or jeopardize the fulfillment of the obligations of the SPFC or the trustee pursuant to the SPFC insurance securitization agreements, the SPFC contract, or any related transaction and other provisions of this article.

Section 38-90-550. (A) Any material change of the SPFC's plan of operation pursuant to the provisions of Section 38-90-440(E)(5) including, but not limited to, a new issuance of securities separate and apart from and unrelated to any former insurance securitization by the SPFC, whether or not through a SPFC protected cell, shall require prior approval of the director, provided however:

(1) any subsequent issuance of securities to continue the securitization activities of the SPFC initially approved by the director pursuant to this article either during or after expiration, redemption, or satisfaction, of all of these, of part or all of the securities issued pursuant to initial insurance securitization transactions may not be considered a material change; or

(2) a change and substitution in a counterparty to a swap transaction for an existing insurance securitization as allowed pursuant to the provisions of this article may not be considered a material change if the replacement swap counterparty carries a similar or higher rating to its predecessor with two or more nationally recognized rating agencies, or both.

(B) No later than five months after the fiscal year end of the SPFC, the SPFC shall file with the director an audit by a certified public accounting firm of the financial statements of the SPFC and the trust accounts.

(C) Each SPFC shall file by March first, a statement of operations, using either generally accepted accounting principles or, if requested by the director, statutory accounting principles with 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. The statement of operations must include a statement of income, a balance sheet, and may include a detailed listing of invested assets, including identification of assets held in trust to secure the obligations of the SPFC under the SPFC contract. The SPFC also may include with the filing risk based capital calculations and other adjusted capital calculations to assist the director with evaluating the levels of the surplus of the SPFC for the year ending on December thirty-first of the previous year. The statements must be prepared on forms required by the director. In addition the director may require the filing of performance assessments of the SPFC contract.

(D) A SPFC shall maintain its records in this State and shall make its records available for examination by the director at any time. The SPFC shall keep its books and records in such manner that its financial condition, affairs, and operations can be ascertained and so that the director may readily verify its financial statements and determine its compliance with this article.

(E) All original books, records, documents, accounts, and vouchers must be preserved and kept available in this State for the purpose of examination and until authority to destroy or otherwise dispose of the records is secured from the director. The original records, however, may be kept and maintained outside this State if, according to a plan adopted by the management of the SPFC and approved by the director, it maintains suitable records instead of it. The books or records may be photographed, reproduced on film, or stored and reproduced electronically.

Section 38-90-560. (A) At least once every three years, and if the director determines it to be prudent, the director, or his designee, shall visit each SPFC and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations, and whether it has complied with this article. The director upon application, in his discretion, may enlarge the three-year period to five years, if a SPFC is subject to a comprehensive annual audit during that period of a scope satisfactory to the director by independent auditors approved by the director. The expenses and charges of the examination must be paid to the State by the company or companies examined, and the department shall issue its warrants for the proper charges incurred in all examinations.

(B) All examination reports, preliminary examination reports or results, working papers, recorded information, documents, and copies of documents produced by, obtained by, or disclosed to the director or any other person in the course of an examination made pursuant to the provisions of this section are confidential and are not subject to subpoena and may not be made public by the director or an employee or agent of the director without the written consent of the company, except to the extent provided in this subsection. Nothing in this subsection prevents the director from using this information in furtherance of the director's regulatory authority as provided by the provisions of this title. The director may grant access to this information to public officers having jurisdiction over the regulation of insurance in another state or country, or to law enforcement officers of this State or another state or agency of the federal government at any time, if the officers receiving the information agree in writing to hold it in a manner consistent with this section.

Section 38-90-570. (A) At the cessation of business of a SPFC following termination or cancellation of a SPFC contract and the redemption of any related securities issued in connection with them, the authority granted by the director expires or, in the case of retiring and surviving protected cells, be modified, and the SPFC is no longer authorized to conduct activities unless and until a new or modified license is issued pursuant to a new filing pursuant to the provisions of Section 38-90-440 or as agreed by the director.

(B) The director may suspend or revoke the license of a SPFC in this State for:

(1) insolvency;

(2) failure to meet the provisions of Sections 38-90-460 or 38-90-580;

(3) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public, the holders of the securities, or policyholders of the SPFC; or

(4) failure to otherwise to comply in any material respect with applicable laws of this State.

(C) If the director finds, upon examination or other evidence, that a SPFC has committed any of the acts specified in subsection (B), the director may impose the penalties provided in Section 38-2-10 if the director considers it in the best interest of the public, the holders of the securities, and the policyholders of the SPFC.

(D) Unless the grounds for suspension or revocation relate only to the financial condition or soundness of the SPFC or to a deficiency in its assets, the director shall notify the SPFC not less than thirty days before revoking its authority to do business in this State and specify in the notice the particulars of the alleged violation of the law or its organizational documents or grounds for revocation and a proper opportunity must be offered the SPFC to be heard before the Administrative Law Judge Division.

Section 38-90-580. (A) A SPFC shall pay to the department by March first 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 each dollar after that, subject to a minimum annual tax of five thousand dollars and a maximum annual tax of one hundred thousand dollars. Taxes are based upon the direct premiums written or contracted for on policies or contracts of insurance, other than reinsurance policies or contracts written by the SPFC, during the year ending December thirty-first next preceding, after deducting from the direct premiums subject to the tax the amounts paid to insureds as returned premiums which must include dividends on unabsorbed premiums or premium deposits returned or credited to insureds.

(B) A SPFC shall pay to the department by March first 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 after that, subject to a minimum annual tax of five thousand dollars and a maximum annual tax of one hundred thousand dollars. 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 SPFC.

(D) The tax provided in this section is the only tax collectible pursuant to the laws of this State from a SPFC and no other tax or occupation tax, nor any other taxes may be levied or collected from a SPFC 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.

Section 38-90-590. A SPFC contract meeting the provisions of this article must be granted credit for reinsurance treatment or otherwise qualifies as an asset or a reduction from liability for reinsurance ceded by a domestic insurer to a SPFC as an assuming insurer pursuant to the provisions of Section 38-9-210 for the benefit of the counterparty, provided and only to the extent:

(1) of the fair value of the assets held in trust for, or irrevocable letters of credit issued by a bank chartered by this State or a member bank of the Federal Reserve System or as approved by the director, for the benefit of the counterparty under the SPFC contract;

(2) the assets are held in trust pursuant to the provisions of this article;

(3) the assets are administered in the manner and pursuant to arrangements as provided in this article; and

(4) the assets are held or invested in one or more of the forms allowed in Section 38-90-530.

Section 38-90-600. (A)(1) Notwithstanding the provisions of Chapter 27, Title 38, the director may apply by petition to the circuit court for an order authorizing the director to conserve, rehabilitate, or liquidate a SPFC domiciled in this State on one or more of the following grounds:

(a) there has been embezzlement, wrongful sequestration, dissipation, or diversion of the assets of the SPFC intended to be used to pay amounts owed to the counterparty or the holders of SPFC securities; or

(b) the SPFC is insolvent and the holders of a majority in outstanding principal amount of each class of SPFC securities request or consent to conservation, rehabilitation, or liquidation pursuant to the provisions this article.

(2) The court may not grant relief provided by subitem (a) of item (1) unless, after notice and a hearing, the director, who must have the burden of proof, establishes by clear and convincing evidence that relief must be granted.

(B) Notwithstanding another provision in this title, regulations promulgated under this title, or another applicable law or regulation, upon any order of conservation, rehabilitation, or liquidation of a SPFC, the receiver shall manage the assets and liabilities of the SPFC pursuant to the provisions of this article.

(C) With respect to amounts recoverable under a SPFC contract, the amount recoverable by the receiver must not be reduced or diminished as a result of the entry of an order of conservation, rehabilitation, or liquidation with respect to the counterparty, notwithstanding another provision in the contracts or other documentation governing the SPFC insurance securitization.

(1) Notwithstanding the provisions of Chapter 27 of this title, an application or petition, or a temporary restraining order or injunction issued pursuant to the provisions of Chapter 27 of this title, with respect to a counterparty does not prohibit the transaction of a business by a SPFC, including any payment by a SPFC made pursuant to a SPFC security, or any action or proceeding against a SPFC or its assets.

(2) Notwithstanding the provisions of Chapter 27 of this title, the commencement of a summary proceeding or other interim proceeding commenced before a formal delinquency proceeding with respect to a SPFC, and any order issued by the court does not prohibit the payment by a SPFC made pursuant to a SPFC security or SPFC contract or the SPFC from taking any action required to make the payment.

(D) Notwithstanding the provisions of Chapter 27 of this title or other laws of this State:

(1) a receiver of a counterparty may not void a nonfraudulent transfer by a counterparty to a SPFC of money or other property made pursuant to a SPFC contract; and

(2) a receiver of a SPFC may not void a nonfraudulent transfer by the SPFC of money or other property made to a counterparty pursuant to a SPFC contract or made to or for the benefit of any holder of a SPFC security on account of the SPFC security.

(E) With the exception of the fulfillment of the obligations under a SPFC contract, and notwithstanding another provision of this article or other laws of this State, the assets of a SPFC, including assets held in trust, must not be consolidated with or included in the estate of a counterparty in any delinquency proceeding against the counterparty pursuant to the provisions of this article for any purpose including, without limitation, distribution to creditors of the counterparty.

Section 38-90-610. Information submitted pursuant to the provisions of this article is confidential and may not be made public by the director or an agent or employee of the director without the prior written consent of the SPFC, except that:

(1) information submitted pursuant to the provisions of this article is discoverable by a party in a civil action or contested case to which the submitting SPFC is a party, upon a specific finding by the court that:

(a) the SPFC is a necessary party to the action and not joined only for the purposes of evading the confidentiality provisions of this article;

(b) the party seeking the information demonstrates by a clear and convincing standard that the information sought is relevant, material to, and necessary for the prosecution or defense of the claim asserted in the action; 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.

Section 38-90-620. (A) A contested case brought by a third party based on a decision of the director pursuant to this article is governed by applicable civil law except that, the aggrieved party shall:

(1) prove the appeal by a clear and convincing evidence standard;

(2) demonstrate irreparable harm;

(3) not have another adequate remedy at law; and

(4) post a bond of sufficient surety to protect the interests of the holders of the SPFC securities and policyholders but in not less than fifteen percent of the total amount of the securitized transaction.

(B) If the director decides to reverse, amend, or modify a license issued to a SPFC or the order issued in connection with them for a reason other than that specified in Section 38-90-570(B), the director shall meet the standards and criteria provided in subsection (A).

Section 38-90-630. The director may promulgate regulations necessary to effectuate the purposes of this article. Regulations promulgated pursuant to this section do not affect a SPFC insurance securitization in effect at the time of the promulgation."
SECTION 16. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 17. Section 38-90-170 of the 1976 Code is repealed.
SECTION 18. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.

Rep. TRIPP explained the amendment.

SPEAKER PRO TEMPORE IN CHAIR

Reps. G. M. SMITH and ALTMAN objected to the Bill.

H. 4981--POINT OF ORDER

The following Bill was taken up:

H. 4981 (Word version) -- Rep. Witherspoon: A BILL TO AMEND SECTION 47-17-90, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM PROVISIONS REQUIRING MEAT INSPECTION, SO AS TO FURTHER PROVIDE FOR THE EXEMPTION FROM INSPECTION REQUIREMENTS IN REGARD TO THE SLAUGHTER OF LIVESTOCK OF A PRODUCER'S OWN RAISING FOR HIS OWN USE.

POINT OF ORDER

Rep. FRYE 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 PRO TEMPORE sustained the Point of Order.

H. 4980--AMENDED AND POINT OF ORDER

The following Bill was taken up:

H. 4980 (Word version) -- Rep. Witherspoon: A BILL TO AMEND SECTION 47-4-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A CERTIFICATE OF VETERINARY INSPECTION FOR OUT-OF-STATE LIVESTOCK OR POULTRY ENTERING THIS STATE, AND THE QUARANTINE OF UNCERTIFIED ANIMALS, SO AS TO PROVIDE THAT THE DIRECTOR OF THE DIVISION OF LIVESTOCK-POULTRY HEALTH MAY AUTHORIZE ALTERNATIVE MEASURES WHICH IN HIS OPINION OFFER THE EQUIVALENT OR GREATER PROTECTION FOR THE LIVESTOCK INDUSTRY OF THIS STATE INCLUDING, BUT NOT LIMITED TO, EQUINE PASSPORT EVENT PERMITS.

The Agriculture, Natural Resources and Environmental Affairs Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GJK\21168SD04), which was adopted:
Amend the bill, as and if amended, by striking SECTION 1 and inserting:
/SECTION 1. Section 47-4-60 of the 1976 Code, as last amended by Act 22 of 1995, is further amended by adding a new subsection to read:

"( ) The Director of the Division of Livestock-Poultry Health may authorize equine interstate event permits that must include a certificate of veterinary inspection, animal identification, and a current negative Coggins test." /
Renumber sections to conform.
Amend title to conform.

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

POINT OF ORDER

Rep. BALES 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 PRO TEMPORE sustained the Point of Order.

H. 4733--POINT OF ORDER

The following Bill was taken up:

H. 4733 (Word version) -- Reps. Davenport and Littlejohn: A BILL TO AMEND CHAPTER 87, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CRITERIA FOR ISSUANCE OF ASBESTOS ABATEMENT LICENSES, SO AS TO REVISE THE DEFINITION OF "ASBESTOS ABATEMENT ENTITY" AND "ASBESTOS PROJECT"; TO DELETE PROVISIONS ESTABLISHING LICENSURE FEES AND TO AUTHORIZE THE DEPARTMENT TO ESTABLISH SUCH FEES IN REGULATION SUFFICIENT TO COVER REASONABLE COSTS OF ADMINISTERING THE ASBESTOS PROGRAM AND TO DEFINE "COSTS"; AND TO INCREASE THE MAXIMUM CIVIL PENALTY FOR VIOLATIONS FROM ONE THOUSAND DOLLARS TO TEN THOUSAND DOLLARS.

POINT OF ORDER

SPEAKER IN CHAIR

H. 4790--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4790 (Word version) -- Reps. Merrill, Hinson, Harrison, Quinn, McLeod, J. E. Smith, Herbkersman, Lourie, Bingham, Scarborough, Young, E. H. Pitts, Emory, McGee, Frye, J. H. Neal, Hagood, Allen, Altman, Bailey, Barfield, Battle, Bowers, Cato, Ceips, Chellis, Cobb-Hunter, Coleman, Dantzler, Davenport, Delleney, Duncan, Edge, Hamilton, Keegan, Kennedy, Leach, G. R. Smith, Cotty, Limehouse, Toole, Harvin, Littlejohn, Martin, McCraw, Miller, M. A. Pitts, Sandifer, G. M. Smith, W. D. Smith, Stille, Talley, Taylor, Umphlett, Viers, Weeks and Whitmire: A BILL TO AMEND SECTIONS 14-7-1610, 14-7-1615, AND 14-7-1630, ALL AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE GRAND JURY SYSTEM, SO AS TO REVISE ITS JURISDICTION TO INCLUDE ENVIRONMENTAL OFFENSES.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\MS\7255AHB04), which was adopted:
Amend the bill, as and if amended, by deleting in its entirety, SECTION 2, page 2, beginning on line 32, and inserting:
/ SECTION 2. Section 14-7-1615 of the 1976 Code, as last amended by Act 335 of 1992, is further amended by adding an appropriately lettered subsection to read:

"( ) 'Environmental offenses' are those concerning the water, ambient air, soil or land, or both soil and land, including, but not limited to, violations of the State Safe Drinking Water Act, the Pollution Control Act, the Infectious Waste Management Act, the Hazardous Waste Management Act, the Solid Waste Policy and Management Act, the State Underground Petroleum Response Act, the Atomic Energy and Radiation Control Act, the South Carolina Mining Act, the Coastal Zone Management Act, and the Sediment and Erosion Control Act." /
Renumber sections to conform.
Amend title to conform.

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

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

H. 4790--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. HAGOOD, with unanimous consent, it was ordered that H. 4790 (Word version) be read the third time tomorrow.

H. 4261--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4261 (Word version) -- Reps. Umphlett, Dantzler, Duncan, Herbkersman, Hinson, Limehouse, Mahaffey, Merrill, Owens, Pinson, M. A. Pitts, Richardson, Sandifer, J. R. Smith and Taylor: A BILL TO AMEND SECTION 1-3-240, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REMOVAL OF STATE OFFICERS BY THE GOVERNOR, SO AS TO REMOVE THE DIRECTOR OF THE DEPARTMENT OF PUBLIC SAFETY FROM THE CATEGORY OF OFFICERS WHO MAY BE REMOVED ONLY FOR CAUSE, AND TO ADD TO THE CATEGORY OF THOSE OFFICERS WHO CAN BE REMOVED ONLY FOR CAUSE PERSONS SERVING ON THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY AND THE SOUTH CAROLINA PORTS AUTHORITY.

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\GGS\22615HTC04), which was adopted:
Amend the bill, as and if amended, by striking Section 1-3-240 as contained in SECTION 1 and inserting:
/ Section 1-3-240. (A) Any officer of the county, or State, or special purpose district except:

(1) an officer whose removal is provided for in Section 3 of Article XV of the State Constitution;

(2) an officer guilty of the offense named in Section 8 of Article VI of the Constitution; or

(3) pursuant to subsection (B) of this section, an officer of the State appointed by a Governor, either with or without the advice and consent of the Senate; who is guilty of malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity ~~shall be~~ is subject to removal by the Governor upon any of the foregoing causes being made to appear to the satisfaction of the Governor. But before removing ~~any such~~ an officer, the Governor shall inform ~~him~~ the officer in writing of the specific charges brought against ~~him~~ the officer and give ~~him~~ the officer an opportunity on reasonable notice to be heard.

(B) ~~Any~~ A person appointed to a state office by a Governor, either with or without the advice and consent of the Senate, other than those officers enumerated in subsection (C), may be removed from office by the Governor at his discretion by an Executive Order removing the officer.

(C) Persons appointed to the following offices of the State may be removed by the Governor for malfeasance, misfeasance, incompetency, absenteeism, conflicts of interest, misconduct, persistent neglect of duty in office, or incapacity:

(1) Worker's Compensation Commission;

(2) Commission of the Department of Revenue;

(3) Ethics Commission;

(4) Election Commission;

(5) Professional and Occupational Licensing Boards;

(6) Juvenile Parole Board;

(7) Probation, Parole and Pardon Board;

(8) Director of the Department of Public Safety;

(9) Board of the Department of Health and Environmental Control, excepting the Chairman;

(10) Chief of State Law Enforcement Division.;

(11) South Carolina Lottery Commission.;

(12) South Carolina State Ports Authority;

(13) South Carolina Public Service Authority.

Upon the expiration of an officeholder's term, ~~such~~ that individual may continue to serve until a successor has been appointed and qualifies. /
Renumber sections to conform.
Amend title to conform.

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

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

H. 4261--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. LUCAS, with unanimous consent, it was ordered that H. 4261 (Word version) be read the third time tomorrow.

H. 4791--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up:

H. 4791 (Word version) -- Rep. White: A BILL TO AMEND SECTION 59-101-290, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOTIFICATION OF RISKS OF CONTRACTING CERTAIN DISEASES IF LIVING ON CAMPUS, SO AS TO CONFORM THE SECTION TO FEDERAL AND STATE PUBLISHED IMMUNIZATION RECOMMENDATIONS.

The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\ BM\10157SJ04), which was adopted:
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Section 59-101-290(B) of the 1976 Code, as added by Act 317 of 2002, is amended to read:

(B) A public institution of higher learning shall include information about vaccination against meningococcal disease and Hepatitis B ~~as recommended immunization~~ in health and medical information provided to students or prospective students ~~and parents or guardians~~ . The vaccination information must be contained on student health forms provided to each student by an institution of higher learning and must include space for the student to indicate whether or not the student has received the vaccinations against meningococcal disease and Hepatitis B. The vaccination information about meningococcal disease and Hepatitis B must include recommendations issued by the national Centers for Disease Control and Prevention regarding the diseases. The vaccination information obtained pursuant to this section that is in the possession of the institutions of higher learning is confidential and must not be a public record. This section must not be construed to require an institution of higher learning to provide vaccinations to students for meningococcal disease or Hepatitis B. This section does not create a private right of action."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.

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

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

H. 4791--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. MACK, with unanimous consent, it was ordered that H. 4791 (Word version) be read the third time tomorrow.

ORDERED TO THIRD READING

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

H. 4712 (Word version) -- Rep. Quinn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 43-31-170 SO AS TO PROVIDE TRAINING AND EXPERIENCE REQUIREMENTS THAT A COUNSELOR FOR THE STATE AGENCY OF VOCATIONAL REHABILITATION SHALL MEET.

Rep. WHITE explained the Bill.

H. 5112 (Word version) -- Reps. Miller and Snow: A BILL TO AMEND SECTION 7-7-270, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN GEORGETOWN COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN GEORGETOWN COUNTY AND TO DESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD.

H. 4712--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. OTT, with unanimous consent, it was ordered that H. 4712 (Word version) be read the third time tomorrow.

H. 5112--ORDERED TO BE READ THIRD TIME TOMORROW

On motion of Rep. MILLER, with unanimous consent, it was ordered that H. 5112 (Word version) be read the third time tomorrow.

H. 5130--DEBATE ADJOURNED

Rep. E. H. PITTS moved to adjourn debate upon the following Bill until Tuesday, April 27, which was adopted:

H. 5130 (Word version) -- Reps. E. H. Pitts, Huggins and McLeod: A BILL TO PROVIDE THAT FOR THE LEXINGTON COUNTY RESIDENT MEMBER OF THE BOARD OF TRUSTEES OF LEXINGTON-RICHLAND SCHOOL DISTRICT FIVE WHO TAKES OFFICE AFTER RECEIVING THE THIRD HIGHEST NUMBER OF VOTES IN THE GENERAL ELECTION OF 2004, FROM THOSE MEMBERS ELECTED FROM LEXINGTON COUNTY, THE TERM OF OFFICE IS FOR TWO YEARS AND UNTIL HIS SUCCESSOR ELECTED IN THE GENERAL ELECTION OF 2006 TAKES OFFICE.

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

RETURNED WITH CONCURRENCE

The Senate returned to the House with concurrence the following:

H. 5087 (Word version) -- Rep. Clark: A CONCURRENT RESOLUTION TO COMMEND DR. CELESTE HIOTT SPRINGER FOR HER DEDICATION AS A SOUTH CAROLINA WIFE, MOTHER, AND PROFESSIONAL, TO THANK HER FOR HER WORK IN NUMEROUS COMMUNITY PROJECTS, AND TO CONGRATULATE HER ON BEING CHOSEN MRS. SOUTH CAROLINA AMERICA 2003.

H. 5091 (Word version) -- Rep. Vaughn: A CONCURRENT RESOLUTION TO CONGRATULATE MR. E. N. "ECK" MILLER OF YORK ON BEING CHOSEN TO RECEIVE THE FOOD INDUSTRY ASSOCIATION OF SOUTH CAROLINA (FIA OF SC) LIFETIME ACHIEVEMENT AWARD AND TO WISH HIM CONTINUED SUCCESS IN THE FUTURE.

H. 5092 (Word version) -- Rep. Vaughn: A CONCURRENT RESOLUTION TO CONGRATULATE DR. JAMES C. ACTON OF SALEM ON BEING CHOSEN TO RECEIVE THE FOOD INDUSTRY ASSOCIATION OF SOUTH CAROLINA (FIA OF SC) LIFETIME ACHIEVEMENT AWARD AND TO WISH HIM CONTINUED SUCCESS IN THE FUTURE.

H. 5097 (Word version) -- Rep. Huggins: A CONCURRENT RESOLUTION TO CONGRATULATE THE MEMBERS OF THE 2003 IRMO HIGH SCHOOL BAND AND THEIR DIRECTOR, KEN TURNER, ON THEIR ACHIEVEMENTS OF EXCELLENCE IN MUSIC ON BEING NAMED CLASS AAAAA STATE CHAMPIONS AND ONE OF THE TOP TWENTY-FIVE BANDS IN AMERICA AND TO COMMEND THEM ON THEIR HARD WORK AND DEDICATION.

H. 5098 (Word version) -- Rep. E. H. Pitts: A CONCURRENT RESOLUTION TO COMMEND THE STUDENTS, TEACHERS, ADMINISTRATORS, AND SUPPORT STAFF OF MIDWAY ELEMENTARY SCHOOL IN LEXINGTON, SOUTH CAROLINA, ON THEIR SCHOOL BEING NOMINATED AS A NATIONAL BLUE RIBBON SCHOOL FOR 2004 AND TO RECOGNIZE THE SCHOOL'S TENTH ANNIVERSARY.

H. 5099 (Word version) -- Reps. Battle and M. Hines: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE MRS. FLORENCE G. FOXWORTH OF MARION FOR HER DEDICATION AS A PUBLIC SCHOOL TEACHER FOR MORE THAN FIVE DECADES AND TO EXTEND BEST WISHES TO HER IN ALL OF HER FUTURE ENDEAVORS.

H. 5105 (Word version) -- Reps. J. H. Neal, Weeks, G. Brown and G. M. Smith: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE GENERAL ASSEMBLY UPON THE DEATH OF EUGENE B. MCLEOD, SR., OF PINEWOOD ON WEDNESDAY, MARCH 31, 2004, AND TO CONVEY THEIR DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.

H. 5106 (Word version) -- Rep. Lourie: A CONCURRENT RESOLUTION TO CONGRATULATE THE AWARD-WINNING RICHLAND NORTHEAST HIGH SCHOOL GOSPEL AND PRAISE CHOIR FOR ITS OUTSTANDING ACHIEVEMENTS IN LOCAL AND INTERNATIONAL GOSPEL COMPETITIONS AND TO EXTEND BEST WISHES TO THE MEMBERS IN ALL OF THEIR FUTURE ENDEAVORS.

H. 5114 (Word version) -- Reps. Walker, Sinclair, Anthony, Davenport, Lee, Littlejohn, Mahaffey, W. D. Smith, Talley, Allen, Altman, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Limehouse, Lloyd, Loftis, Lourie, Lucas, Mack, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, G. R. Smith, J. E. Smith, J. R. Smith, Snow, Stewart, Stille, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO HONOR AND CONGRATULATE CAROLE C. WELLS, COMMISSIONER FOR THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION, ON HER RETIREMENT FROM THE COMMISSION ON JUNE 30, 2004, AND TO EXTEND BEST WISHES TO HER IN ALL OF HER FUTURE ENDEAVORS.

ADJOURNMENT

At 11:45 a.m. the House, in accordance with the motion of Rep. MCLEOD, adjourned in memory of James C. Tobias of Columbia, to meet at 10:00 a.m. tomorrow.

***

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