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 Psalm 27:1: "The Lord is my light and my salvation; whom shall I fear? The Lord is the strength of my life; of whom shall I be afraid?"
Let us pray. Almighty God, source of strength, give these leaders of our State the strength to carry the burdens of power and authority with compassion. Help them to use wisely the many blessings You shower upon them. Continue to provide opportunities for service. Sustain and protect those in State and National government. Keep our defenders of freedom in Your protective arms. Comfort those who wait at home. These things we ask in Your name. 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.
Rep. COLEMAN moved that when the House adjourns, it adjourn in memory of James C. Anders of Richland County, which was agreed to.
The following was received:
Columbia, S.C., April 21, 2004
Mr. Speaker and Members of the House:
The Senate respectfully informs your Honorable Body that it concurs in the amendments proposed by the House to S. 769:
S. 769 (Word version) -- Senators Cromer, Reese and Knotts: A BILL TO AMEND SECTION 12-37-220, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO GENERAL EXEMPTIONS FROM
Very respectfully,
President
Received as information.
The following was received and referred to the appropriate committee for consideration:
Document No. 2897
Agency: Department of Health and Environmental Control
Statutory Authority: 1976 Code Section 44-55-10 et seq.
State Primary Drinking Water
Received by Speaker of the House of Representatives
April 21, 2004
Referred to Agriculture, Natural Resources and Environmental Affairs Committee
Legislative Review Expiration August 19, 2004 (Subject to Sine Die Revision)
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report on:
S. 496 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 47-5-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RABIES INOCULATIONS, CERTIFICATES, TAGS, AND FEES, SO AS TO INCREASE THE FEE FROM THREE DOLLARS TO FIVE DOLLARS FOR A RABIES INOCULATION AT A RABIES CLINIC PROMOTED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND LICENSED VETERINARIANS.
Ordered for consideration tomorrow.
H. 5115 (Word version) -- Reps. Dantzler and Cobb-Hunter: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-11-34 SO AS TO MAKE IT UNLAWFUL TO HUNT MIGRATORY WATERFOWL IN CERTAIN COVES ON LAKE MARION AND TO PROVIDE PENALTIES FOR VIOLATIONS.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report on:
H. 3989 (Word version) -- Reps. Rhoad and Witherspoon: A BILL TO AMEND SECTION 50-5-1506, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FISHING FOR SHAD FOR COMMERCIAL PURPOSES IN THE ATLANTIC OCEAN, SO AS TO CLOSE THE SEASON, AND TO PROVIDE THAT THERE BE NO LAWFUL TIMES, METHODS, AND EQUIPMENT, OR SIZE AND TAKE LIMITS FOR SHAD IN THE ATLANTIC OCEAN BEGINNING JULY 1, 2004.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments on:
H. 4996 (Word version) -- Reps. Bowers and Rhoad: A BILL TO AMEND SECTION 50-16-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION AGAINST THE IMPORTATION OF CERTAIN WILDLIFE INTO THIS STATE WITHOUT A PERMIT FROM THE DEPARTMENT OF NATURAL RESOURCES, SO AS TO PROVIDE THAT NO PERSON MAY RELEASE A NONDOMESTIC MEMBER OF THE SUIDAE (PIG) FAMILY INTO THE WILD, TO PROVIDE PENALTIES FOR VIOLATIONS, AND TO PROVIDE THAT THE PERSON IS FINANCIALLY RESPONSIBLE FOR ANY ECONOMIC OR OTHER DAMAGE CAUSED AS A RESULT OF THE RELEASE.
Ordered for consideration tomorrow.
H. 4704 (Word version) -- Reps. Sandifer, Owens, Rice, Skelton, Snow and Whitmire: A BILL TO AMEND CHAPTER 55, TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10 SO AS TO REQUIRE NEW SEPTIC TANK INSTALLATION TO INCLUDE AN ACCESS PIPE FOR MONITORING AND PUMPING THE SEPTIC SYSTEM, TO REQUIRE THE INSTALLATION OF SUCH A PIPE WHEN WORK IS BEING PERFORMED ON THE TANK, AND TO PROVIDE A CIVIL FINE FOR VIOLATIONS.
Ordered for consideration tomorrow.
Rep. WITHERSPOON, from the Committee on Agriculture, Natural Resources and Environmental Affairs, submitted a favorable report with amendments on:
H. 5111 (Word version) -- Reps. Witherspoon, Frye, McLeod, Coleman, Bailey, Martin, Lourie, Townsend, Sinclair, Barfield, Cobb-Hunter, Rutherford, Mack, Rhoad, Ott, Duncan, J. H. Neal, Emory, J. M. Neal, Whitmire, Thompson, Cooper, Anthony, Bales, Bowers, R. Brown, Clemmons, Coates, Davenport, Freeman, Govan, Herbkersman, J. Hines, Hosey, Jennings, Keegan, Kennedy, Koon, Lee, Limehouse, Loftis, Neilson, Pinson, M. A. Pitts, Rivers, Sandifer, F. N. Smith, G. M. Smith, Snow, Talley, Taylor, Toole, Umphlett, Weeks, Whipper and White: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 34 TO TITLE 39 SO AS TO ENACT THE "SOUTH CAROLINA DAIRY STABILIZATION ACT", TO ESTABLISH THE SOUTH CAROLINA MILK BOARD, TO PROVIDE FOR ITS MEMBERS, PROCEDURES FOR THEIR APPOINTMENT AND FOR THEIR POWERS AND DUTIES; TO PROVIDE THAT THE BOARD'S PRIMARY DUTY IS TO ESTABLISH A FAIR MARKET BREAKEVEN PRICE FOR PRODUCERS OF MILK AND EXERCISE GENERAL SUPERVISION OVER THE MILK INDUSTRY IN THIS STATE; TO PROVIDE THAT THE BOARD MUST BE LOCATED IN THE SOUTH CAROLINA DEPARTMENT OF AGRICULTURE; TO AUTHORIZE THE BOARD TO ENTER INTO COMPACTS FOR A UNIFORM SYSTEM OF MILK CONTROL, TO CONDUCT INVESTIGATIONS AND MEDIATE AND ARBITRATE MILK
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 4901 (Word version) -- Reps. Ceips, Rivers, Gilham, Herbkersman and Lloyd: A BILL TO AMEND CHAPTER 3, TITLE 54, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 54-3-700, SO AS TO PROVIDE THAT THE STATE PORTS AUTHORITY IS NOT REQUIRED TO OPERATE A MARINE TERMINAL AT PORT ROYAL, AND TO PROVIDE FOR THE CESSATION OF TERMINAL OPERATIONS, THE SALE OF PROPERTY AT FAIR MARKET VALUE, AND FOR THE DISPOSITION OF THE PROCEEDS FROM THE SALE OF THE PROPERTY.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 4440 (Word version) -- Reps. Limehouse, Clemmons and Altman: A BILL TO AMEND SECTION 12-37-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CLASSIFICATION OF A MOTOR HOME AS REAL PROPERTY FOR PURPOSES OF AD VALOREM TAXES AND THE REQUIREMENTS NECESSARY FOR THAT CLASSIFICATION, SO AS TO INCLUDE BOATS WITHIN THE CLASSIFICATION IF THEY MEET THE SAME REQUIREMENTS, AND TO PROVIDE A CAP ON THE MAXIMUM AD VALOREM TAXATION WHICH MAY BE LEVIED ON SUCH A BOAT FOR ANY YEAR.
Ordered for consideration tomorrow.
H. 4310 (Word version) -- Reps. McLeod and Mahaffey: A BILL TO AMEND SECTION 12-37-224, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR HOMES WHICH QUALIFY AS A PRIMARY OR SECONDARY RESIDENCE FOR PURPOSES OF AD VALOREM PROPERTY TAX, SO AS TO INCLUDE TRAILERS USED FOR CAMPING AND RECREATIONAL TRAVEL PULLED BY A MOTOR VEHICLE.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 5027 (Word version) -- Reps. Harrell, W. D. Smith, Merrill, Clemmons, Cooper, Altman, Barfield, Cato, Ceips, Chellis, Duncan, Edge, Gilham, Hayes, Herbkersman, Keegan, Limehouse, Miller, Witherspoon and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ENACT THE "UNIFORM AND FAIR GOLF COURSE VALUATION ACT OF 2004" BY ADDING SECTION 12-43-365 SO AS TO PROVIDE FOR THE MANNER IN WHICH THE FAIR MARKET VALUE OF GOLF COURSE REAL PROPERTY IS DETERMINED FOR AD VALOREM TAX PURPOSES AND THE PROCEDURES WHICH APPLY WITH RESPECT TO THIS DETERMINATION.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 4481 (Word version) -- Reps. Ceips, Harvin, Altman, G. M. Smith, Vaughn, Weeks, Clark, Gilham, Walker, Duncan, Coates, Stille, Bailey, Herbkersman, M. A. Pitts, Richardson, Mahaffey, Lourie, Loftis, Lloyd, Leach, Keegan, Hinson, Young, Wilkins, Umphlett, Snow, J. E. Smith, Skelton, Scarborough, Sandifer, Rivers, Haskins, Edge, Cotty, G. Brown, Chellis, J. Brown and Cato: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 79 IN TITLE 2, ENACTING THE SOUTH CAROLINA MILITARY PREPAREDNESS AND ENHANCEMENT ACT SO AS TO ESTABLISH AND PROVIDE FOR THE MEMBERSHIP,
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report on:
H. 4907 (Word version) -- Reps. Thompson, Cotty, G. M. Smith, E. H. Pitts, Simrill, Duncan, Viers, McLeod, Vaughn, Lourie, Branham, Altman, Anthony, Bailey, Barfield, Battle, Bingham, Chellis, Clemmons, Cooper, Davenport, Delleney, Edge, Gilham, Hagood, Hamilton, Harrell, Hayes, Herbkersman, Hinson, Jennings, Keegan, Kirsh, Leach, Littlejohn, Lucas, McCraw, McGee, Merrill, Miller, Owens, Perry, Phillips, Pinson, M. A. Pitts, Rice, Richardson, Rivers, Sandifer, Scarborough, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. R. Smith, J. R. Smith, Stille, Talley, Taylor, Toole, Tripp, Trotter, Umphlett, White, Whitmire, Witherspoon, Young and Cobb-Hunter: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 36, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE GENERAL RESERVE FUND AND THE CAPITAL RESERVE FUND, SO AS TO REQUIRE AN ADDITIONAL AMOUNT EQUAL TO ONE PERCENT OF STATE
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report on:
H. 4906 (Word version) -- Reps. Thompson and Scarborough: A BILL TO AMEND SECTION 11-11-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL RESERVE FUND, SO AS TO MAKE REFERENCE TO INCREASES IN THE AMOUNT REQUIRED IN THE GENERAL RESERVE FUND PURSUANT TO THE REQUIREMENTS OF THE STATE CONSTITUTION AND TO MAKE THIS AMENDMENT EFFECTIVE BEGINNING ON THE RATIFICATION OF AN AMENDMENT TO THE CONSTITUTION OF THIS STATE PROVIDING THOSE CIRCUMSTANCES WHICH RESULT IN AN INCREASE IN THE GENERAL RESERVE FUND.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 5086 (Word version) -- Rep. Kirsh: A BILL TO AMEND SECTION 4-29-67, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FEE IN LIEU OF PROPERTY TAX, SO AS TO DELETE THE NET PERCENT VALUE METHOD OF CALCULATING ANNUAL FEE PAYMENTS; TO AMEND SECTION 6-1-320, AS AMENDED, RELATING TO THE LIMITS ON ANNUAL INCREASES IN LOCAL GOVERNMENT AND SCHOOL DISTRICT PROPERTY TAX MILLAGE, SO AS TO CLARIFY THE METHOD OF CALCULATING THE ALLOWED CONSUMER PRICE INDEX INCREASE IN THE MILLAGE RATE; TO AMEND SECTION 12-6-1140, AS AMENDED, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA INDIVIDUAL TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 4127 (Word version) -- Reps. Wilkins, Harrell, Quinn, Harrison, W. D. Smith, Cotty, Cato, Young, G. R. Smith, Tripp, Leach, Pinson, Koon, Altman, Bingham, Ceips, Chellis, Clark, Davenport, Delleney, Duncan, Edge, Frye, Gilham, Hagood, Hamilton, Haskins, Herbkersman, Hinson, Keegan, Limehouse, Mahaffey, McGee, Merrill, M. A. Pitts, Rice, Sandifer, Scarborough, Skelton, D. C. Smith, G. M. Smith, J. R. Smith and Toole: A BILL TO ENACT THE "SOUTH CAROLINA RESTRUCTURING ACT OF 2003" INCLUDING PROVISIONS TO AMEND SECTION 1-30-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AGENCIES OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT BY ADDING THE DEPARTMENT OF ADMINISTRATION; BY ADDING SECTION 1-30-125 SO AS TO ESTABLISH THE DEPARTMENT OF ADMINISTRATION AS AN AGENCY OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT TO BE HEADED BY A DIRECTOR APPOINTED BY THE GOVERNOR UPON THE ADVICE AND CONSENT OF THE SENATE, AND TO TRANSFER TO THIS NEWLY CREATED DEPARTMENT CERTAIN OFFICES AND DIVISIONS OF THE STATE BUDGET AND CONTROL BOARD, OFFICE OF THE GOVERNOR, AND OTHER AGENCIES, AND TO PROVIDE FOR TRANSITIONAL AND OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 5043 (Word version) -- Reps. Harrell, Chellis, Altman, Battle, Bingham, Clark, Dantzler, Jennings, Mack, M. A. Pitts, J. R. Smith, Thompson, Wilkins, Cotty, G. R. Smith and Whipper: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ENACTING THE PUBLIC SCHOOLS INFRASTRUCTURE BANK ACT OF 2004; BY ADDING CHAPTER 148 TO TITLE 59 SO AS TO
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 4747 (Word version) -- Reps. Simrill, Delleney, Kirsh, McCraw, Moody-Lawrence and Richardson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 43-1-85 SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO IMPOSE LICENSURE, PERMIT, AND RENEWAL FEES ON APPLICANTS IN PROGRAMS THE DEPARTMENT REGULATES, TO AUTHORIZE THE DEPARTMENT TO IMPOSE MONETARY PENALTIES FOR VIOLATIONS PERTAINING TO THESE PROGRAMS, TO PROVIDE THAT THE DEPARTMENT SHALL PROVIDE FOR THE USE OF FEES AND PENALTIES COLLECTED, AND TO REQUIRE THE DEPARTMENT TO PROMULGATE REGULATIONS TO CARRY OUT THESE PROVISIONS.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
H. 5129 (Word version) -- Reps. Rice, Talley, Thompson, Clyburn, Frye, Hamilton, Herbkersman, Hosey, Keegan, Littlejohn, Martin, Owens, Perry, E. H. Pitts, Scarborough, Simrill, Sinclair, J. R. Smith, Snow, Taylor, Young, Cato, Loftis, G. R. Smith and Leach: A BILL TO AMEND TITLE 1, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ADMINISTRATION OF GOVERNMENT, BY ADDING CHAPTER 24 SO AS TO ESTABLISH THE SOUTH CAROLINA SUNSET COMMISSION AND A SUNSET REVIEW DIVISION OF THE LEGISLATIVE AUDIT COUNCIL, TO ESTABLISH PROCEDURES PROVIDING FOR THE MANNER IN WHICH THE PROGRAMS OF CERTAIN AGENCIES AND DEPARTMENTS OF STATE GOVERNMENT MUST BE EVALUATED TO DETERMINE IF THEY SHOULD BE
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
S. 1075 (Word version) -- Senators Short, Hayes, Hutto, Leventis, Peeler, Martin, Moore, Giese, Verdin, Fair, Reese, Setzler, O'Dell, Malloy, Knotts and Cromer: A BILL TO AMEND TITLE 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LOCAL GOVERNMENTS, BY ADDING CHAPTER 32 SO AS TO ENACT THE "SOUTH CAROLINA TEXTILES COMMUNITIES REVITALIZATION ACT" INCLUDING PROVISIONS TO PROVIDE PROPERTY TAX CREDITS OR INCOME AND OTHER TAX CREDITS FOR REHABILITATION EXPENSES MADE TO ELIGIBLE SITES WHICH HAVE BEEN USED AS A TEXTILE MANUFACTURING FACILITY OR FOR ANCILLARY PURPOSES.
Ordered for consideration tomorrow.
Rep. HARRELL, from the Committee on Ways and Means, submitted a favorable report with amendments on:
S. 45 (Word version) -- Senators Elliott and Reese: A BILL TO AMEND SECTION 12-37-2725, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CANCELLATION OF A MOTOR VEHICLE LICENSE PLATE AND REGISTRATION FOR A REFUND OR CREDIT OF PROPERTY TAXES PAID ON THE VEHICLE TO ANOTHER, SO AS TO PROVIDE THAT THE LESSEE OF A MOTOR VEHICLE WHO ASSIGNS THE LEASE OR SURRENDERS THE LEASED VEHICLE TO THE LESSOR IS ELIGIBLE FOR A CREDIT OR REFUND ON PROPERTY TAXES PAID IF THE TERMS OF THE LEASE MADE THE LESSEE PRIMARILY LIABLE FOR THE PROPERTY TAX AND THE LESSEE IN FACT PAID THE TAX.
Ordered for consideration tomorrow.
H. 4038 (Word version) -- Rep. Toole: A BILL TO AMEND SECTION 56-1-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ISSUANCE OF A DRIVER'S LICENSE, SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY MAY PLACE A MAGNETIC STRIP ON A DRIVER'S LICENSE WHICH CONTAINS THE NAME AND TELEPHONE NUMBER OF A PERSON WHO MAY BE CONTACTED IF THE HOLDER OF THE LICENSE IS INVOLVED IN AN EMERGENCY SITUATION AND ANY OTHER INFORMATION THE DEPARTMENT DETERMINES TO BE APPROPRIATE.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4556 (Word version) -- Reps. Townsend, Davenport, McGee, Clark, W. D. Smith, Wilkins, Harvin and Mahaffey: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 9 TO CHAPTER 25, TITLE 57 SO AS TO ENACT THE SOUTH CAROLINA RELOCATION AND RECONSTRUCTION AGREEMENT ACT, TO EMPOWER LOCAL GOVERNING BODIES TO ENTER INTO AGREEMENTS WITH SIGN OWNERS TO RELOCATE AND RECONSTRUCT SIGNS, TO PROVIDE FOR THE PAYMENT OF JUST COMPENSATION WHEN A SIGN IS REMOVED WITHOUT AN AGREEMENT BETWEEN THE PARTIES, AND TO PROVIDE FOR MEDIATION OR ARBITRATION BETWEEN THE PARTIES WHEN THEY FAIL TO REACH AN AGREEMENT.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report on:
H. 4557 (Word version) -- Reps. Townsend, Harrell, Martin, Stille, Thompson and White: A BILL TO REPEAL SECTION 59-21-1030, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LEVEL
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report on:
H. 4565 (Word version) -- Reps. Herbkersman, Bailey and Rice: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5, CHAPTER 23, TITLE 59 SO AS TO ENACT THE PUBLIC-PRIVATE EDUCATION FACILITIES AND INFRASTRUCTURE ACT OF 2004; TO DEFINE CERTAIN TERMS; TO PROVIDE FOR THE PREREQUISITES FOR THE OPERATION OF A QUALIFYING PROJECT; TO PROVIDE THE INFORMATION THAT MUST ACCOMPANY A REQUEST FOR APPROVAL OF A QUALIFYING PROJECT BY THE RESPONSIBLE PUBLIC ENTITY; TO PROVIDE FOR THE APPROVAL PROCESS AND WHEN A RESPONSIBLE PUBLIC ENTITY MAY GRANT APPROVAL OF THE ACQUISITION; TO PROVIDE THAT A PUBLIC ENTITY MAY ENTER INTO SERVICE CONTRACTS; TO PROVIDE THAT A PRIVATE ENTITY REQUESTING APPROVAL FROM A RESPONSIBLE PUBLIC ENTITY SHALL NOTIFY EACH AFFECTED LOCAL JURISDICTION, WHICH MAY SUBMIT COMMENTS FOR THE RESPONSIBLE PUBLIC ENTITY'S CONSIDERATION; TO PROVIDE FOR WHEN A PUBLIC ENTITY MAY DEDICATE A PROPERTY INTEREST FOR PUBLIC USE IN A QUALIFYING PROJECT; TO PROVIDE THE POWERS AND DUTIES OF THE OPERATOR OF THE QUALIFYING PROJECT; TO PROVIDE FOR THE SPECIFICATIONS OF THE COMPREHENSIVE AGREEMENT BETWEEN THE OPERATOR AND THE RESPONSIBLE PUBLIC ENTITY; TO PROVIDE THAT THE RESPONSIBLE PUBLIC ENTITY MAY OBTAIN FEDERAL, STATE, OR LOCAL ASSISTANCE FOR A QUALIFYING PROJECT THAT SERVES THE PUBLIC PURPOSE; TO PROVIDE FOR REMEDIES IN THE EVENT OF A MATERIAL DEFAULT BY THE OPERATOR; TO PROVIDE WHEN THE RESPONSIBLE PUBLIC ENTITY MAY EXERCISE THE POWER OF CONDEMNATION; TO PROVIDE FOR WHEN THE QUALIFYING PROJECT CROSSES A UTILITY; TO PROVIDE THAT POLICE OFFICERS HAVE POWERS AND JURISDICTION WITHIN THE
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4758 (Word version) -- Reps. Richardson, Simrill, Altman, Bales, Battle, Emory, Kirsh, Lee, Littlejohn, McCraw, McGee, Owens, Scarborough, Vaughn and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 42 TO CHAPTER 3, TITLE 56 SO AS TO PROVIDE FOR THE ISSUANCE OF CAROLINA PANTHERS SPECIAL LICENSE PLATES.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4800 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 56-5-2942, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE IMMOBILIZATION OF A MOTOR VEHICLE AFTER A PERSON IS CONVINCED OF CERTAIN ALCOHOL RELATED OFFENSES, SO AS TO PROVIDE THAT A VEHICLE MUST BE IMMOBILIZED AFTER THE DEPARTMENT OF MOTOR VEHICLES RECEIVES A CONVICTION OF A PERSON FOR A VIOLATION OF CERTAIN ALCOHOL RELATED OFFENSES INSTEAD OF AFTER THE PERSON IS SENTENCED; TO DELETE THE PROVISION THAT REQUIRES THE COURT TO ASCERTAIN THE REGISTRATION NUMBER OR OTHER INFORMATION TO DETERMINE THE IDENTITY OF A VEHICLE TO BE IMMOBILIZED, TO PROVIDE THAT THE DEPARTMENT OF MOTOR VEHICLES SHALL IDENTIFY ALL VEHICLES WHOSE REGISTRATIONS MUST BE SUSPENDED PURSUANT TO THIS SECTION, TO DELETE THE PROVISION
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4801 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 56-1-748, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS WHO ARE ISSUED A RESTRICTED DRIVER'S LICENSE UNDER VARIOUS PROVISIONS OF LAW BEING INELIGIBLE TO OBTAIN A SPECIAL RESTRICTED DRIVER'S LICENSE UNDER THESE PROVISIONS, SO AS TO PROVIDE THAT THIS LIMITATION ALSO APPLIES TO A PERSON ISSUED A RESTRICTED DRIVER'S LICENSE AFTER HIS LICENSE IS SUSPENDED FOR REFUSING TO SUBMIT TO TESTING TO DETERMINE HIS ALCOHOL CONCENTRATION OR FOR REGISTERING A CERTAIN LEVEL OF ALCOHOL CONCENTRATION; AND TO AMEND SECTION 56-1-1320, AS AMENDED, RELATING TO THE ISSUANCE OF PROVISIONAL DRIVER'S LICENSES, SO AS TO PROVIDE THAT A PERSON MAY BE ISSUED ONLY ONE PROVISIONAL DRIVER'S LICENSE IN A TEN-YEAR PERIOD.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4802 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 56-1-385, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REINSTATEMENT OF A PERMANENTLY REVOKED
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report on:
H. 4805 (Word version) -- Rep. Townsend: A BILL TO AMEND SECTION 56-9-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO OBTAINING VERIFICATION THAT AN OPERATOR OF A MOTOR VEHICLE INVOLVED IN AN ACCIDENT THAT RESULTS IN PROPERTY DAMAGE MUST VERIFY THAT THE VEHICLE HAS LIABILITY INSURANCE COVERAGE, SO AS TO REVISE THE MINIMUM AMOUNT OF PROPERTY DAMAGE THAT MUST OCCUR BEFORE INSURANCE VERIFICATION MUST BE OBTAINED; TO AMEND SECTION 56-9-351, AS AMENDED, RELATING TO THE SUSPENSION OF THE DRIVER'S LICENSE AND MOTOR VEHICLE REGISTRATION OF PERSONS INVOLVED IN CERTAIN MOTOR VEHICLE ACCIDENTS, SO AS TO REVISE THE MINIMUM AMOUNT OF PROPERTY DAMAGE THAT MUST OCCUR BEFORE THE PROVISIONS CONTAINED IN THIS SECTION BECOME APPLICABLE; AND TO AMEND SECTION 56-9-359, RELATING TO THE AMOUNT OF SECURITY THE DEPARTMENT OF MOTOR VEHICLES MAY ORDER A PERSON TO DEPOSIT, SO
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4848 (Word version) -- Reps. McCraw, Phillips, Ceips, Clark, Cobb-Hunter, Duncan, Emory, Freeman, Gourdine, Hagood, J. Hines, M. Hines, Hosey, Leach, Limehouse, Moody-Lawrence, Perry, Rice, Scarborough, Sinclair, Skelton, D. C. Smith, G. R. Smith, J. R. Smith, Clemmons, W. D. Smith, Barfield, Snow, Stille, Taylor and Tripp: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND LICENSING, BY ADDING ARTICLE 74 SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY MAY ISSUE VIETNAM WAR VETERANS SPECIAL LICENSE PLATES, AND TO PROVIDE FOR THE DISTRIBUTION OF THE FEES COLLECTED FOR THIS SPECIAL LICENSE PLATE.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report on:
H. 5101 (Word version) -- Rep. Townsend: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-3-117 SO AS TO PROVIDE A DEFINITION FOR THE TERM "LOW SPEED VEHICLES", TO PROVIDE THAT THESE VEHICLES MAY BE OPERATED ON CERTAIN SECONDARY ROADS, TO ALLOW LOCAL GOVERNMENTS TO REGULATE THE SPEED OF THESE VEHICLES, TO PROVIDE THAT THEY MUST MEET CERTAIN FEDERAL REGULATIONS, MUST BE CERTIFIED ROAD WORTHY AND MUST BE REGISTERED.
Ordered for consideration tomorrow.
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 4653 (Word version) -- Reps. W. D. Smith and Wilkins: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY
Rep. TOWNSEND, from the Committee on Education and Public Works, submitted a favorable report with amendments on:
H. 5080 (Word version) -- Reps. W. D. Smith, Wilkins, Loftis, Harrell, Cato, Chellis, Clemmons, Edge, Frye, Herbkersman, Leach, Owens, Perry, Rice, Richardson, Sandifer, Simrill, F. N. Smith, G. R. Smith, J. R. Smith, Stewart, Talley, Townsend, Tripp, Vaughn, White and Witherspoon: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 46, CAROLINA PUBLIC SCHOOL DISTRICT, TO TITLE 59; TO PROVIDE FOR THE CREATION OF A CAROLINA PUBLIC SCHOOL DISTRICT, ITS GOVERNANCE, AND ITS POWERS AND DUTIES; AND TO PROVIDE FOR THE MANNER IN WHICH A CHARTER SCHOOL SPONSORED BY THE CAROLINA PUBLIC SCHOOL DISTRICT MUST BE FORMED, FUNDED, REGULATED, AND GOVERNED.
Ordered for consideration tomorrow.
Rep. LEACH, from the Committee on Invitations and Memorial Resolutions, submitted a favorable report on:
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.
On motion of Rep. LEACH, with unanimous consent, the following Concurrent Resolution was taken up for immediate consideration:
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.
Whereas, Article IV of the International Monetary Fund (IMF) Agreement states that members should "avoid manipulating exchange rates . . . in order . . . to gain an unfair competitive advantage over other members"; and
Whereas, certain East Asian countries have demonstrated a pattern of large scale purchases of foreign exchange, principally in dollars, to keep their exchange rates lower than if they were subject to market forces alone, thereby artificially inflating the value of the dollar; and
Whereas, the total United States trade deficit was approximately $435.7 billion in 2002; and
Whereas, the United States trade deficit increased approximately 18 percent in 2002; and
Whereas, the United States exports fell 2.7 percent in 2002 to $972 billion; and
Whereas, approximately $100 billion, or about one quarter of the total United States trade deficit, can be attributed to currency manipulation; and
Whereas, as of 2002, the value of goods imported to the United States from China is five times more than the value of the United States goods exported to China, resulting in a bilateral trade deficit of approximately $103 billion, almost 25 percent of the total United States trade deficit; and
Whereas, as of 2002, the value of goods imported to the United States from South Korea exceeded the value of the United States goods exported to South Korea, resulting in a bilateral trade deficit of approximately $13 billion, approximately 3 percent of the total United States trade deficit; and
Whereas, as of 2002, the value of goods imported to the United States from Taiwan exceeded the value of the United States goods exported to Taiwan, resulting in a bilateral trade deficit of approximately $14 billion, approximately 3.2 percent of the total United States trade deficit; and
Whereas, currency manipulations have become a significant barrier to United States exports to China, Japan, Taiwan, and Korea, causing prices for Asian goods to fall dramatically thereby preventing exports to export markets; and
Whereas, China, which represents approximately $100 billion of the United States trade deficit for the year 2002, has an artificially low fixed exchange rate that boosts its exports and retards its imports; and
Whereas, Japan, Korea, and Taiwan, which represent another $100 billion of our trade deficit last year, have practiced multiple currency interventions in 2001 and 2002; and
Whereas, East Asian countries represent approximately 47 percent of the United States trade deficit for the year 2002; and
Whereas, currency manipulation has resulted in a significant depreciation of the Asian currency exchange rate lower than if it were based on market forces alone; and
Whereas, the result of currency manipulation is a larger trade deficit with certain East Asian countries and the loss of United States export-oriented and import-competing jobs; and
Whereas, since March 1998, manufacturing employment has declined by more than 2.3 million jobs; and
Whereas, between October 1, 2000, and April 30, 2001, more than eighty corporations announced their intentions to shift production to China; and
Whereas, the employment effects of these job losses and production shifts in manufacturing go well beyond the individuals who lose their jobs. Each time another company shuts down operations or moves overseas, it has a ripple effect on the wages of every other worker in that industry and community, through lowering wage demands, reducing the tax base, and reducing or eliminating hundreds of jobs in the related contracting, transportation, wholesale trade, professional, and service-sector employment in companies and business; and
Whereas, more than one in every ten American factory jobs has been lost in the last two years, much of which is directly attributable to export losses and to artificially low priced imports from countries that prevent market forces from determining exchange rates; and
Whereas, the United States record trade deficit and Asia's surging surplus could destabilize the global economy and must be corrected. Now, therefore,
Be it resolved by the House of Representatives:
That the members of the House of Representatives, by this resolution, memorialize President George W. Bush and his administration to take the following actions to prohibit or reduce the practice of international currency manipulation:
(1) adopt a clear statement of United States policy that will actively seek to curb the ongoing manipulation of currency to gain an unfair competitive advantage through direct consultations with trading partners and IMF review procedures;
(2) pursue the aforementioned policy within the Group of Seven (G-7) finance ministers, whose membership represents the principal international currencies;
(3) pursue bilateral consultations with targeted currency manipulators;
(4) approach the IMF to seek public reporting of currency intervention and to curtail currency manipulations; and
(5) encourage filing a complaint within the World Trade Organization (WTO) dispute and settlement mechanism against recalcitrant currency manipulators.
Be it further resolved that a copy of this resolution be forwarded to the President of the United States and each member of the South Carolina Congressional Delegation.
The Concurrent Resolution was adopted and ordered sent to the Senate.
The following Bill and Joint Resolution were introduced, read the first time, and referred to appropriate committees:
H. 5161 (Word version) -- Reps. Limehouse, Whipper, Altman, Breeland, R. Brown, Hagood and Scarborough: A JOINT RESOLUTION TO PROVIDE THAT THE PROVISIONS CONTAINED IN PARAGRAPH 4, SECTION 3 OF ACT 956 OF 1938 WHICH PROVIDE FOR THE SELECTION OF COMMISSIONERS FOR THE HOUSING AUTHORITY FOR THE CITY OF CHARLESTON NO LONGER APPLY TO THAT HOUSING AUTHORITY, AND TO PROVIDE THAT THE HOUSING AUTHORITY'S COMMISSIONERS MUST BE SELECTED AS PROVIDED BY LAW.
On motion of Rep. LIMEHOUSE, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.
S. 773 (Word version) -- Senator Hayes: A BILL TO ENACT THE UNIFORM CHILD CUSTODY JURISDICTION AND ENFORCEMENT ACT BY ADDING ARTICLE 35 TO CHAPTER 7, TITLE 20, CODE OF LAWS OF SOUTH CAROLINA, 1976, SO AS TO ADOPT A UNIFORM ACT REVISING PROCEDURES FOR ESTABLISHING AND ENFORCING CHILD CUSTODY AND VISITATION WHEN ONE OF THE PARTIES RESIDES IN THIS STATE AND THE OTHER DOES NOT; AND TO REPEAL SUBARTICLE 2, ARTICLE
The following was introduced:
H. 5162 (Word version) -- Rep. Edge: A CONCURRENT RESOLUTION TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE AT UNITED STATES HIGHWAY 701 AND SOUTH CAROLINA HIGHWAY 9 BYPASS IN HORRY COUNTY THE "DAVIS HENIFORD, JR. INTERCHANGE" AND TO ERECT APPROPRIATE MARKERS OR SIGNS REFLECTING THE NAME OF THE INTERCHANGE.
The Concurrent Resolution was ordered referred to the Committee on Invitations and Memorial Resolutions.
The following was introduced:
H. 5163 (Word version) -- Reps. M. Hines and Hayes: A CONCURRENT RESOLUTION TO CONGRATULATE MRS. RUBY BLUE PAGE OF DILLON, SOUTH CAROLINA, FOR WINNING THE PRESTIGIOUS NATIONAL HEAD START ASSOCIATION "STAFF OF THE YEAR" AWARD.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 5164 (Word version) -- Reps. M. Hines and Battle: A CONCURRENT RESOLUTION TO CONGRATULATE MR. EDDIE WASHINGTON OF MARION, SOUTH CAROLINA, FOR WINNING THE PRESTIGIOUS NATIONAL HEAD START ASSOCIATION "FATHER OF THE YEAR" AWARD.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The Senate sent to the House the following:
S. 1176 (Word version) -- Senator Waldrep: A CONCURRENT RESOLUTION TO CELEBRATE THURSDAY, APRIL 22, 2004, AS EARTH DAY AND TO OBSERVE THE UNITED STATES ARMY'S EARTH DAY MESSAGE OF "PRESERVING THE ENVIRONMENT WHILE PROTECTING OUR FREEDOM", WHICH RECOGNIZES THE VALUE OF OUR ENVIRONMENT AND REMINDS US THAT MEMBERS OF THE ARMY ARE THE GUARDIANS OF FREEDOM.
The Concurrent Resolution was agreed to and ordered returned to the Senate with concurrence.
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 Ceips Chellis Clark Clemmons Cobb-Hunter Coleman Cooper Cotty Dantzler Davenport Delleney Edge Emory Freeman Frye Gilham Gourdine Hagood Hamilton Harrell Harrison Haskins Hayes Herbkersman J. Hines M. Hines Hinson Hosey Howard Huggins Keegan Kennedy Kirsh Koon Leach Lee Limehouse Littlejohn Lloyd Loftis Lourie Lucas Mack Mahaffey Martin McCraw McGee McLeod Merrill Miller Moody-Lawrence J. M. Neal Neilson Ott Owens Parks Perry Pinson
M. A. Pitts Rhoad Rice Richardson Sandifer Scarborough Scott Simrill Sinclair Skelton D. C. Smith F. N. Smith G. M. Smith G. R. Smith J. R. Smith W. D. Smith Snow Stewart Stille Talley Thompson Toole Townsend Tripp Trotter Umphlett Vaughn Viers Walker Weeks Whipper White Whitmire Wilkins Witherspoon Young
I came in after the roll call and was present for the Session on Thursday, April 22.
William Bowers William Clyburn Marty Coates Douglas Jennings Edward H. "Ted" Pitts Joseph Neal James E. Smith Richard Quinn Jerry Govan Alex Harvin Todd Rutherford
The SPEAKER granted Rep. TAYLOR a leave of absence due to the birth of his daughter.
The SPEAKER granted Rep. DUNCAN a leave of absence for the day.
Announcement was made that Dr. Ed Evans of Seneca is the Doctor of the Day for the General Assembly.
In accordance with House Rule 5.2 below:
"5.2 Every bill before presentation shall have its title endorsed; every report, its title at length; every petition, memorial, or other paper, its prayer or substance; and, in every instance, the name of the member presenting any paper shall be endorsed and the papers shall be
Bill Number: H. 5129 (Word version)
Date: ADD:
04/22/04 G. R. SMITH
Bill Number: H. 5129 (Word version)
Date: ADD:
04/22/04 CATO
Bill Number: H. 5129 (Word version)
Date: ADD:
04/22/04 LEACH
Bill Number: H. 5129 (Word version)
Date: ADD:
04/22/04 LOFTIS
Bill Number: H. 4848 (Word version)
Date: ADD:
04/22/04 CLEMMONS
Bill Number: H. 4848 (Word version)
Date: ADD:
04/22/04 BARFIELD
Bill Number: H. 4529 (Word version)
Date: ADD:
04/22/04 UMPHLETT
Bill Number: H. 5088 (Word version)
Date: ADD:
04/22/04 SIMRILL
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. 1141 (Word version) -- Senators Malloy and Leatherman: A BILL TO PROVIDE THAT UP TO THREE SCHOOL DAYS MISSED BY THE STUDENTS OF ANY SCHOOL IN THE DARLINGTON COUNTY SCHOOL DISTRICT CLOSED DUE TO SNOW, EXTREME WEATHER CONDITIONS, OR OTHER DISRUPTIONS MAY BE FORGIVEN IF APPROVED BY A MAJORITY VOTE OF THE LOCAL SCHOOL BOARD.
S. 1142 (Word version) -- Senators Malloy, Glover, Elliott and Leatherman: A BILL TO PROVIDE THAT UP TO THREE SCHOOL DAYS MISSED BY THE STUDENTS OF ANY SCHOOL IN THE MARLBORO COUNTY SCHOOL DISTRICT CLOSED DUE TO SNOW, EXTREME WEATHER CONDITIONS, OR OTHER DISRUPTIONS MAY BE FORGIVEN IF APPROVED BY A MAJORITY VOTE OF THE LOCAL SCHOOL BOARD.
S. 1143 (Word version) -- Senators Malloy, Land and Leventis: A BILL TO PROVIDE THAT UP TO THREE SCHOOL DAYS MISSED BY THE STUDENTS OF ANY SCHOOL IN THE LEE COUNTY SCHOOL DISTRICT CLOSED DUE TO SNOW, EXTREME WEATHER CONDITIONS, OR OTHER DISRUPTIONS MAY BE FORGIVEN IF APPROVED BY A MAJORITY VOTE OF THE LOCAL SCHOOL BOARD.
S. 1114 (Word version) -- Senator Hutto: A BILL TO AMEND SECTION 7-7-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN BARNWELL COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN BARNWELL COUNTY AND REDESIGNATE 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.
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.
S. 1085 (Word version) -- Senator Thomas: A JOINT RESOLUTION TO PROVIDE THAT THE COMMISSION ON INDIGENT DEFENSE MAY TRANSFER UNSPENT FUNDS FROM CARRY-FORWARD MONEYS FROM THE LAST FISCAL YEAR TO THE OFFICE OF APPELLATE DEFENSE TO HELP OFFSET THAT AGENCY'S BUDGET REDUCTIONS.
The following Bills and Joint Resolution were taken up, read the second time, and ordered to a third reading:
S. 1136 (Word version) -- Senators Leventis and Land: A BILL TO AMEND ACT 741 OF 1990, AS AMENDED, AND ACT 620 OF 1992, AS AMENDED, BOTH RELATING TO ELECTION OF THE SUMTER COUNTY SCHOOL DISTRICT BOARDS OF TRUSTEES, SO AS TO CHANGE THE FILING DATES FOR THE CANDIDATES TO FILE BY AUGUST FIFTEENTH TO CONFORM TO STATE LAW AND CHANGE REFERENCES FROM THE COUNTY ELECTION
S. 1123 (Word version) -- Senator Malloy: A BILL TO AMEND SECTION 7-7-210, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN DARLINGTON COUNTY, SO AS TO REVISE CERTAIN VOTING PRECINCTS IN DARLINGTON COUNTY AND REDESIGNATE 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.
S. 1159 (Word version) -- Senator McConnell: A JOINT RESOLUTION TO SUSPEND THE APPLICATION OF THE DECEMBER FIRST DEADLINE FOR RECEIVING THE APPOINTMENT OF THE DIRECTOR OF THE DEPARTMENT OF PUBLIC SAFETY FOR THE 2004 APPOINTMENT ONLY AND WITHOUT CREATING A PRECEDENT FOR DELAYED RECEIPT OF SUBSEQUENT APPOINTMENTS FOR THIS POSITION.
H. 5044 (Word version) -- Reps. McGee, Quinn and Toole: A BILL TO AMEND CHAPTER 6 OF TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 8 SO AS TO ESTABLISH THE PHARMACY AND THERAPEUTICS COMMITTEE WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, TO PROVIDE FOR THE MEMBERSHIP, ORGANIZATION, AND DUTIES OF THE COMMITTEE, AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL ADHERE TO CERTAIN PROVISIONS WHEN IMPLEMENTING THE PREFERRED DRUG LIST.
Rep. MACK explained the Bill.
On motion of Rep. G. M. SMITH, with unanimous consent, it was ordered that S. 1136 (Word version) be read the third time tomorrow.
On motion of Rep. LUCAS, with unanimous consent, it was ordered that S. 1123 (Word version) be read the third time tomorrow.
On motion of Rep. HARRISON, with unanimous consent, it was ordered that S. 1159 (Word version) be read the third time tomorrow.
On motion of Rep. MACK, with unanimous consent, it was ordered that H. 5044 (Word version) be read the third time tomorrow.
The following Bills were taken up, read the third time, and ordered sent to the Senate:
H. 4924 (Word version) -- Reps. Witherspoon, Harrell, Cobb-Hunter, Battle, Martin, Kirsh, Viers, Rhoad, McGee, Hayes, Lucas, Whipper, Quinn, Jennings, Coleman, Snow, J. Hines, Bailey, Bales, Barfield, Branham, Breeland, G. Brown, R. Brown, Cato, Chellis, Clemmons, Coates, Cooper, Davenport, Delleney, Duncan, Edge, Emory, Frye, Hamilton, Harrison, Haskins, Herbkersman, M. Hines, Keegan, Kennedy, Koon, Leach, Limehouse, Littlejohn, Loftis, Mahaffey, McCraw, Miller, J. M. Neal, Neilson, Ott, Perry, Phillips, Pinson, M. A. Pitts, Rice, Richardson, Rivers, Sandifer, Sinclair, D. C. Smith, G. R. Smith, J. R. Smith, Stille, Townsend, Trotter, Vaughn, Walker, White, Young and Owens: A BILL TO AMEND TITLE 11, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 48 SO AS TO PROVIDE FOR FURTHER ENFORCEMENT OF THE TOBACCO ESCROW FUND ACT, INCLUDING BOTH CIVIL AND CRIMINAL PENALTIES FOR VIOLATIONS, TO AMEND SECTION 11-47-30, RELATING TO THE REQUIREMENT FOR A TOBACCO PRODUCT MANUFACTURER TO EITHER PARTICIPATE IN THE MASTER SETTLEMENT AGREEMENT OR DEPOSIT MONIES INTO A QUALIFIED ESCROW FUND, SO AS TO PROVIDE THAT ESCROW PAYMENTS REQUIRED OF A NONPARTICIPATING TOBACCO PRODUCTS MANUFACTURER AND ANY REFUND OF AN ESCROW
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.
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.
H. 4130 (Word version) -- Reps. Cato, Tripp, G. R. Smith, Anthony and Jennings: 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
H. 4470 (Word version) -- Reps. Harrison, Altman, Cotty, Kirsh and Owens: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-305 SO AS TO CREATE THE OFFENSE OF DEFRAUDING SECURED CREDITORS AND TO PROVIDE A PENALTY.
H. 4675 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 16-11-700, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LITTERING, SO AS TO PROVIDE THAT WHEN THE SENTENCE FOR A VIOLATION OF THIS SECTION INCLUDES LITTER-GATHERING, THE LITTER-GATHERING PORTION IS MANDATORY; HOWEVER THE COURT MAY DIRECT THE PERSON TO PAY AN ADDITIONAL MONETARY PENALTY IN LIEU OF THE SENTENCE, TO PROVIDE THE CIRCUMSTANCES WHEN PROBATION MAY BE GRANTED IN LIEU OF A LITTER-GATHERING SENTENCE, TO PROVIDE FOR THE DISTRIBUTION OF FUNDS COLLECTED IN LIEU OF A MANDATORY LITTER-GATHERING SENTENCE, AND TO PROVIDE WHEN A VIOLATION OF THIS SECTION CONSTITUTES A PRIOR VIOLATION WITHIN THE MEANING OF THIS SECTION; AND TO AMEND SECTION 56-25-20, AS AMENDED, RELATING TO THE SUSPENSION OF A DRIVER'S LICENSE FOR FAILURE TO COMPLY WITH CERTAIN TRAFFIC CITATIONS, SO AS TO REVISE THIS SECTION TO INCLUDE A SUMMONS FOR CERTAIN LITTER VIOLATIONS.
The following Bill was taken up, read the third time, and ordered returned to the Senate with amendments:
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".
Rep. G. M. SMITH moved to adjourn debate upon the following Bill until Tuesday, April 27, which was adopted:
H. 4785 (Word version) -- Rep. G. M. Smith: A BILL TO AMEND SECTION 38-53-170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ACTS THAT A BONDSMAN OR RUNNER MAY NOT PERFORM, SO AS TO PROVIDE THAT A BONDSMAN OR RUNNER MAY NOT RETRIEVE A BONDS LIST FROM A JAIL OR RETRIEVE ANY NAMES AND FAMILY RECORDS FROM ANY JAIL RECORDS; TO AMEND SECTION 38-53-340, RELATING TO PENALTIES FOR VIOLATING CERTAIN PROVISIONS THAT REGULATE THE ACTIVITIES OF BAIL BONDSMEN AND RUNNERS, SO AS TO PROVIDE THAT A PERSON WHO VIOLATES THESE PROVISIONS HAS COMMITTED A CRIME OF MORAL TURPITUDE, TO RECLASSIFY A VIOLATION FROM A MISDEMEANOR TO A FELONY, AND TO INCREASE THE PENALTY.
The following Bill was taken up:
H. 5078 (Word version) -- Reps. Sandifer and Cato: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 58-9-295 SO AS TO PROVIDE THAT NO TELECOMMUNICATIONS SERVICE PROVIDER SHALL ENTER INTO ANY AGREEMENT WHICH RESTRICTS OR LIMITS THE ABILITY OF ANY OTHER TELECOMMUNICATIONS SERVICE PROVIDER FROM OBTAINING EASEMENTS OR RIGHTS-OF-WAY FOR THE INSTALLATION OF FACILITIES OR EQUIPMENT TO PROVIDE TELECOMMUNICATIONS SERVICES IN THIS STATE OR WHICH OFFERS OR GRANTS INCENTIVES OR REWARDS TO AN OWNER OF REAL PROPERTY TO ENCOURAGE THE OWNER TO REFUSE OR RESTRICT ACCESS TO THE REAL PROPERTY BY ANY OTHER TELECOMMUNICATIONS SERVICE PROVIDER, TO PROVIDE EXCEPTIONS, AND TO PROVIDE CIVIL PENALTIES FOR VIOLATIONS.
"Section 58-9-295. (A) No telecommunications service provider or any parent company, subsidiary, or affiliate of such a provider shall enter into any contract, agreement, or arrangement, oral or written, with any person or entity that does any of the following:
(1) requires such person or entity to restrict or limit the ability of any other telecommunications service provider from obtaining easements or rights-of-way for the installation of facilities or equipment to provide telecommunications services in this State or otherwise deny or restrict access to the real property by any other telecommunications service provider; or
(2) offers or grants incentives or rewards to an owner of real property or the owner's agent that are contingent upon the provision of telecommunciations service on the premises by a single telecommunications service provider.
(B) Nothing in this section prohibits a user or prospective user of telecommunications service from entering into a lawful agreement with a telecommunications service provider with respect to the user or prospective user's own telecommunications service.
(C) Nothing in this section shall prohibit an entity described in subsection (A) of this section from entering into any contract, agreement, or arrangement, oral or written, by which an owner of real property or the owner's agent agrees to encourage users or prospective users of telecommunications service to select a particular telecommunications service provider. However, the contract, agreement, or arrangement may not restrict or limit the ability of any other telecommunications service provider from obtaining easements or rights-of-way for the installation of facilities or equipment to provide telecommunications services in this State and also may not require the owner or the owner's agent to refuse or restrict access to the real property by any other telecommunications service provider. All contracts, agreements, or arrangements made on or after the effective date of this section are void and unenforceable.
If the owner of real property or the owner's agent refuses access to another telecommunications service provider, then the
(1) interconnection;
(2) unbundled network elements; and
(3) resale at wholesale rates any telecommunications service that the carrier provides at retail to subscribers who are not telecommunications carriers.
(D) Any telecommunications service provider who violates the provisions of this section shall be subject to penalties as set forth in Article 13, Chapter 9 of Title 58.
(E) Contracts, agreements, and arrangements subject to this section may be obtained by the Office of Regulatory Staff pursuant to Sections 58-4-50 and 58-4-55.
(F) For purposes of this section, 'telecommunications service provider' means a telephone utility as defined in Section 58-9-10(6), a government-owned telecommunications provider as defined in Section 58-9-2610(1), and a telephone cooperative as defined in Section 33-46-20(4)." /
Renumber sections to conform.
Amend title to conform.
Rep. SANDIFER explained the amendment.
Rep. SCOTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 4975 (Word version) -- Rep. Cato: A BILL TO AMEND TITLE 44, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 132 SO AS TO PROHIBIT PHYSICIANS AND OTHER SPECIFIED HEALTHCARE PROFESSIONALS FROM SOLICITING PAYMENT FOR OUTPATIENT ANATOMIC PATHOLOGY OR CYTOLOGY SERVICES UNLESS THE SERVICE WAS PERSONALLY RENDERED BY THAT PHYSICIAN OR
The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\ 12456DW04), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Title 44 of the 1976 Code is amended by adding:
Section 44-132-10. Except as provided in section 44-132-20, no person licensed to practice in this State as a physician, surgeon, or osteopath, a dentist or dental surgeon, a nurse practitioner, or a physician's assistant shall charge, bill, or otherwise solicit payment for outpatient anatomic pathology services unless the services were rendered personally by the licensed practitioner or under the licensed practitioner's supervision.
Section 44-132-20. A person who is licensed to practice medicine in this State or the professional legal entity of which the person is a shareholder, partner, employee, or owner, may submit a bill for outpatient anatomic pathology services only to:
(1) the patient directly;
(2) the responsible insurer or other third-party payor;
(3) the hospital, public health clinic, or nonprofit health clinic; or
(4) the referral laboratory or the primary laboratory.
Section 44-132-30. The health professional licensing boards of this State which license and regulate the practitioners specified in Section 44-132-10, in addition to all other authority granted to them under state law, may revoke, suspend, or deny the renewal of the license of any practitioner who violates the provisions of this chapter. In addition, no patient, insurer, third-party payor, hospital, public health clinic, or nonprofit health clinic is required to reimburse these practitioners for charges or bills submitted in violation of this chapter.
Section 44-132-40. The provisions of this chapter do not prohibit billing between laboratories for anatomic pathology services in instances where a sample or samples must be sent to another specialist.
Section 44-132-50. For purposes of this chapter, the term 'anatomic pathology services' means:
(1) histopathology or surgical pathology meaning the gross and microscopic examination of organ tissue performed by a physician or osteopath or under the supervision of a physician or osteopath;
(2) cytopathology meaning the examination of cells, from fluids, washings, brushings, or smears, including the Pap test examination performed by a physician or osteopath or under the supervision of a physician or osteopath;
(3) hematology meaning the microscopic evaluation of bone marrow aspirations and biopsies performed by a physician or osteopath, or under the supervision of a physician or osteopath, and peripheral blood smears when the attending or treating physician or osteopath, or technologist requests that a blood smear be reviewed by a pathologist;
(4) sub-cellular pathology and molecular pathology; and
(5) blood-banking services performed by pathologists. This chapter does not apply to any clinical laboratory service that is not included in the definition of anatomic pathology as set forth in this section. Nothing contained in this chapter may be construed to prohibit payments for anatomic pathology services by government agencies or their specified public or private agent, agency, or organization on behalf of the recipient of the services. Nothing in this chapter may be construed to mandate the right of assignment of benefits for anatomic pathology services as defined in this chapter."
SECTION 2. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
Rep. THOMPSON explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. THOMPSON, with unanimous consent, it was ordered that H. 4975 (Word version) be read the third time tomorrow.
The following Bill was taken up:
H. 4990 (Word version) -- Reps. Harrell, Chellis, Barfield, Hamilton and Leach: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 10 TO CHAPTER 37 OF TITLE 33 SO AS TO ESTABLISH A CAPITAL ACCESS PROGRAM PROVIDING FOR FLEXIBILITY IN THE MAKING OF LOANS BY FINANCIAL INSTITUTIONS TO SMALL BUSINESSES WHO FAIL TO QUALIFY FOR CONVENTIONAL OR OTHER GUARANTEED OR ASSISTED FINANCING, AND TO PROVIDE FOR FUNDING OF A LOAN LOSS RESERVE TO REPAY PARTICIPATING FINANCIAL INSTITUTIONS WHO SUFFER A LOSS ON A LOAN, ADMINISTRATION OF THE PROGRAM BY BUSINESS DEVELOPMENT CORPORATION OF SOUTH CAROLINA, GUIDELINES FOR SELECTING LOAN RECIPIENTS, RECORDKEEPING AND REPORTING, AND DISTRIBUTION OF RESERVE FUNDS UPON TERMINATION OF INSTITUTIONAL PARTICIPATION OR THE CAPITAL ACCESS PROGRAM ITSELF.
The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\PT\2001MM04), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered SECTION at the end to read:
/ SECTION ___. Section 33-37-460(2) and (3) of the 1976 Code, as last amended by Act 123 of 1995, is further amended to read:
"(2) A loan to the corporation under the loan call agreement may not be made if, immediately after the loan, the total amount of the obligations of the corporation under the loan call agreement exceeds ten times the greater of the net worth of the corporation or the amount then paid in on the outstanding capital stock of the corporation.
(3) The total amount outstanding on loans to the corporation made by a member at any one time, when added to the amount of the investment in capital stock of the corporation then held by the member, under the loan call agreement may not exceed:
(a) ten percent of the total amount then outstanding on loans to the corporation by all members, including in the total amount outstanding amounts validly called for loan but not yet loaned or committed, or both, under the loan call agreement; or
(b) any federal or state statutory or regulatory limitations applicable to the members." /
Amend the bill further, by adding an appropriately numbered SECTION at the end to read:
/ SECTION ___. Section 33-37-465 of the 1976 Code, as added by Act 234 of 2000, is amended to read:
"Section 33-37-465. A member may make short-term loans to the corporation independently of the loan calls made pursuant to Section 33-37-460, except that the aggregate of the outstanding balance of the short-term loans and the outstanding amount of a loan call to that member may not exceed the statutory and regulatory limitations as provided in Section 33-37-460. These short-term loans are not subject to the limitations and restrictions described in Section 33-37-460. When the purpose of the short-term loan is to provide funds to the corporation for disbursement of a loan, the corporation may grant to the member funding the short-term loan a security interest in or collateral assignment of the loan on the condition that the security interest or collateral assignment is terminated upon payment of the short-term loan." /
Renumber sections to conform.
Amend title to conform.
Rep. CHELLIS explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. CHELLIS, with unanimous consent, it was ordered that H. 4990 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 898 (Word version) -- Senators J. V. Smith, Fair, Knotts, Thomas, Martin, Land, Moore and Alexander: A BILL TO AMEND CHAPTER 33, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF THE NURSING PROFESSION, SO AS TO CONFORM THIS CHAPTER TO THE
Rep. WHITE made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 4821 (Word version) -- Reps. Hayes, Battle, G. Brown, J. Hines, Jennings, Keegan and Richardson: A BILL TO AMEND CHAPTER 37, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF OPTOMETRISTS, SO AS TO CONFORM THIS CHAPTER TO THE STATUTORY AND ADMINISTRATIVE ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL AND OCCUPATIONAL BOARDS IN CHAPTER 1, TITLE 40, UNDER THE ADMINISTRATION OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION; AND TO FURTHER PROVIDE FOR THE LICENSURE AND REGULATION OF OPTOMETRISTS, BY, AMONG OTHER THINGS, TO PROVIDE THAT A BACHELOR OF ARTS OR BACHELOR OF SCIENCE DEGREE IS REQUIRED FOR LICENSURE, TO ESTABLISH LICENSURE BY ENDORSEMENT, TO CLARIFY THAT THERAPEUTICALLY-
The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\12440AC04):
Amend the bill, as and if amended, by deleting Section 40-37-330 beginning on page 28 and inserting:
/ Section 40-37-330. (A) Whenever it is required by law that a visual test of the eye must be made or optometric care of the eye is required of a person by a school or college or a state or county agency, the test or care may be given by an optometrist licensed in this State. When a person is required to furnish evidence of visual efficiency, a report of a licensed optometrist is sufficient evidence to comply with the requirement.
(B) All agencies of the State and its subdivisions and all commissions, clinics, and boards administering relief, public assistance, public welfare assistance, social security, or health services under the laws of this State shall accept the services of licensed optometrists for all services that they are licensed to perform relating to a person receiving benefits from such an agency or subdivision of the State. These agencies or agents, officials, or employees, of these agencies, including the public schools, may counsel with and advise the persons needing eye care as to the type of service needed and as to those qualified to render the service; however no attempt may be made to guide an individual seeking vision or eye care to either an optometrist or a physician licensed under Title 40, Chapter 47, Physicians, Surgeons and Osteopaths. The patient must be given free choice in selecting a specialist to serve the patient's vision or eye-care needs in examinations, vision screening, or other vision related services. However, an exception must be made in emergency cases of obvious eye injury or disease where delay in obtaining the services of a physician licensed under Title 40, Chapter 47, Physicians, Surgeons and Osteopaths might endanger the patient's visual health. Additionally, in recognized instances of disease or anomalies disclosed in the original physical evaluation by an agency, these cases may be
(C) There may be no differential in the fee schedule for payment of vision or eye-care services, whether performed by an optometrist or a physician licensed under Title 40, Chapter 47, Physicians, Surgeons and Osteopaths, that is, for like services common to both professions.
(D) No funds appropriated for vision or eye care may be used by an agency that practices discrimination between a licensed optometrist or a physician licensed under Title 40, Chapter 47, Physicians, Surgeons and Osteopaths.
(E) Nothing in this section may prevent a nurse, school teacher, or welfare worker, employed in public service, from ascertaining the probable need of visual services, if the person does not attempt to diagnose, prescribe, or recommend a particular practitioner or system of practice./
Amend the bill further, by deleting Section 40-37-350(B)(1) beginning on page 29 and inserting:
/(1) a physician licensed under Title 40, Chapter 47, Physicians, Surgeons and Osteopaths, in the due course of professional practice; or/
Amend the bill further, by deleting Section 40-37-420 beginning on page 31 and inserting:
/ Section 40-37-420. (A) An optometrist licensed for basic practice of optometry as of July 1, 2004, may continue to practice under the conditions provided for in this section, and regulations promulgated under this chapter, as of July 1, 2004, until September 30, 2007. A basic certified optometrist may:
(1) employ any means, other than the use of drugs, for the measurement of the powers of vision or the adaptation of lenses for the aid of vision;
(2) in the sale of spectacles, eyeglasses, or lenses, use lenses in the testing of the eye therefore other than lenses actually sold;
(3) examine the human eye by the employment of any subjective or objective physical means, without the use of drugs, to ascertain the presence of defects or abnormal conditions for the purpose of relieving them by the use of lenses, prisms, or other physical or mechanical means;
(4) practice orthoptics or prescribe or fit contact lenses;
(B)(1) An optometrist licensed for diagnostic practice of optometry as of July 1, 2004 may continue to practice under the conditions provided for in this section, and regulations promulgated
(a) complied with the educational requirements promulgated by the board; and
(b) passed a pharmaceutical agent examination which must be approved by the board.
(2) Notwithstanding any other provision of law, a diagnostically certified optometrist may purchase, possess, and administer pharmaceutical agents, including pharmaceutical agents for topical application, other than controlled substances, as defined in Section 44-53-110, for diagnostic purposes in the practice of optometry. For the purposes of this subsection, 'pharmaceutical agent' means: anesthetics, mydriatics, cycloplegics, miotics, dyes, and over-the-counter drugs. Miotics may be used only pursuant to the following restrictions:
(a) miotics may not be used for treatment purposes;
(b) miotics may be used only for emergency purposes involving the buildup of pressure within the eyeball and immediately upon this emergency use, the optometrist shall refer the patient to an ophthalmologist and file with the South Carolina Board of Examiners in Optometry a written report of the incident in the manner prescribed by the board by regulation; and the South Carolina Board of Examiners in Optometry shall ensure that the quality and quantity of miotics possessed by a diagnostically certified optometrist is consistent with the use of miotics only for emergency purposes involving the buildup of pressure within the eyeball.
(C) After September 30, 2007, no person may practice as an optometrist in this State if the person has not met all requirements of this title, as amended in 2004 and as may be amended in the future. A basic and diagnostically licensed optometrist who wishes to be recertified after September 30, 2007, shall conform to the licensing requirements for a therapeutically-certified optometrist as provided for in regulation.
(D) A licensee under this chapter must indicate his or her category of licensure following his or her name or signature on all professional documents./
Renumber sections to conform.
Amend title to conform.
Rep. PARKS explained the amendment.
Rep. WHITE made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Joint Resolution was taken up:
H. 4732 (Word version) -- Reps. Davenport, Clyburn, Frye, Hamilton, Littlejohn, Loftis, Pinson, Rice, Taylor, Weeks and Toole: A JOINT RESOLUTION TO ESTABLISH A TASK FORCE ON EMERGENCY ROOM DIVERSION TO BE CONVENED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL TO STUDY THE USE OF EMERGENCY ROOMS, TO IDENTIFY INAPPROPRIATE USAGE AND TO DEVELOP A PLAN FOR COMMUNITY SERVICES ALTERNATIVES; TO SUBMIT A PLAN TO REDUCE INAPPROPRIATE USE OF EMERGENCY ROOMS AND A BUDGET TO IMPLEMENT THIS PLAN AND TO PROVIDE MORE APPROPRIATE SERVICES; AND TO DIRECT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO ASSIST THE DEPARTMENT IN CONDUCTING A PILOT PROJECT.
The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\NBD\12455DW04), which was adopted:
Amend the joint resolution, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. (A) There is established a Task Force on Emergency Room Diversion to be convened by the Department of Health and Environmental Control to develop a plan for community service alternatives or contract alternatives, or both, for persons who currently use emergency rooms for nonemergency health services. Membership on the task force must include, but is not limited to, representatives of the following:
(1) South Carolina Medical Association;
(2) South Carolina Academy of Family Physicians;
(3) South Carolina Hospital Association;
(4) Emergency Medical Services Association;
(5) South Carolina Sheriff's Association;
(6) Partners in Crisis;
(7) Probate Court Judges Association;
(8) South Carolina Psychiatric Association;
(9) South Carolina Department of Mental Health;
(10) South Carolina College of Emergency Room Physicians.
(B) The task force shall submit a plan and budget to reduce inappropriate utilization of the emergency room and to provide more appropriate services. The plan and budget must be submitted to House Medical, Military, Public and Municipal Affairs Committee and the Senate Medical Affairs Committee before January 1, 2005.
SECTION 2. This joint resolution 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 Joint Resolution, as amended, was read the second time and ordered to third reading.
On motion of Rep. MACK, with unanimous consent, it was ordered that H. 4732 (Word version) be read the third time tomorrow.
The following Bill was taken up:
S. 792 (Word version) -- Senator Rankin: A BILL TO AMEND SECTION 23-47-65, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CREATION OF THE CMRS EMERGENCY TELEPHONE SERVICES ADVISORY COMMITTEE, SO AS TO INCREASE THE NUMBER OF TERMS A COMMITTEE MEMBER MAY BE APPOINTED TO SERVE, AND TO EXTEND THE PERIOD OF TIME IN WHICH THE COMMITTEE MAY EXIST.
Rep. TALLEY made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 5085 (Word version) -- Reps. Cotty, Bales, Battle, Chellis, Frye, Herbkersman, Littlejohn, G. R. Smith and Snow: A BILL TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW A RESIDENT FULL-YEAR INDIVIDUAL TAXPAYER TO DEDUCT FROM SOUTH CAROLINA TAXABLE INCOME AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS OF UNREIMBURSED EXPENSES INCURRED BY THE TAXPAYER IN THE DONATION, WHILE LIVING, OF ONE OR MORE OF THE TAXPAYER'S ORGANS TO ANOTHER HUMAN BEING FOR HUMAN ORGAN TRANSPLANTATION AND TO PROVIDE DEFINITIONS AND THOSE EXPENSES THAT QUALIFY FOR THE DEDUCTION.
Rep. SCOTT made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 4846 (Word version) -- Reps. Talley and Jennings: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-1-230 SO AS TO PROVIDE THAT AN AGENCY REQUIRED BY LAW TO REPORT TO THE GENERAL ASSEMBLY SHALL PREPARE ITS REPORT AND NOTIFY THE
The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\BBM\10216SJ04), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Chapter 1, Title 2 of the 1976 Code is amended by adding:
"Section 2-1-230. (A) With the exception of the Governor's Executive Budget and related documents and telephone directories, an agency, a department, or an entity of state government required by law to report to the General Assembly shall prepare its report and notify the members of the General Assembly by mail or email that the report is available upon request. An agency, a department, or an entity of state government may not provide the General Assembly with hard copies of a publication whether or not the publication, report, or other document is required by law to be furnished to the General Assembly, and a publication only may be provided to a member of the General Assembly if the member requests the publication.
(B) The agency, department, or entity of state government shall transmit these publications to the Office of Legislative Printing, Information and Technology Systems (LPITS) by electronic medium in a format and form pursuant to technical standards as may be established by LPITS. LPITS shall make information transmitted available through its network.
(C) A report governed by the requirements of this section may be published in hard copy form if authorized by the Speaker of the House and the President Pro Tempore of the Senate."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Rep. SINCLAIR explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. SINCLAIR, with unanimous consent, it was ordered that H. 4846 (Word version) be read the third time tomorrow.
The following Bill was taken up:
H. 3881 (Word version) -- Reps. G. M. Smith, Allen, Coleman, Delleney, Lucas, Rivers, Sheheen, F. N. Smith, J. E. Smith, Talley and Weeks: A BILL TO AMEND SECTION 15-78-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN THE SOUTH CAROLINA TORT CLAIMS ACT, SO AS TO INCLUDE MEMBERS OF THE SOUTH CAROLINA NATIONAL GUARD, MEMBERS OF THE SOUTH CAROLINA STATE GUARD, PERSONS ACTING ON BEHALF OR IN SERVICE OF A GOVERNMENTAL UNIT WITHOUT PAY OR COMPENSATION, COURT-APPOINTED ATTORNEYS, AND PUBLIC DEFENDERS IN THE DEFINITION OF "EMPLOYEE".
Rep. KIRSH made the Point of Order that the Bill was improperly before the House for consideration since its number and title have not been printed in the House Calendar at least one statewide legislative day prior to second reading.
The SPEAKER sustained the Point of Order.
The following Bill was taken up:
H. 5042 (Word version) -- Reps. Wilkins, Harrison and Jennings: A BILL TO AMEND SECTIONS 2-17-20 AND 2-17-25, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGISTRATION BY LOBBYISTS AND LOBBYIST'S PRINCIPALS, SO AS TO PROVIDE THAT LOBBYISTS AND LOBBYIST'S PRINCIPALS MAY NOT REGISTER OR REREGISTER UNTIL ALL LATE FILING PENALTIES ARE PAID; TO AMEND SECTION 2-17-50, AS AMENDED, RELATING TO THE REQUIREMENT THAT THE STATE ETHICS COMMISSION ENFORCE FILING REQUIREMENTS OF CHAPTER 17, TITLE 2, SO AS TO CHANGE THE ASSESSMENT OF THE FINE AFTER A
The Judiciary Committee proposed the following Amendment No. 1 (Doc Name COUNCIL\DKA\3907DW04), which was adopted:
Amend the bill, as and if amended, by striking SECTION 5 in its entirety.
Amend further by adding an appropriately numbered SECTION to read:
/ SECTION __. Section 2-17-80 of the 1976 Code, as last amended by Act 248 of 1991, is further amended to read:
"Section 2-17-80. (A) A lobbyist or a person acting on behalf of a lobbyist shall not offer, solicit, facilitate, or provide to or on behalf of any member of the General Assembly, the Governor, the Lieutenant Governor, any other statewide constitutional officer, any public official of any state agency who engaged in covered agency actions, or any of their employees any of the following:
(1) lodging;
(2) transportation;
(3) entertainment; or
(4) food, meals, beverages, money, or any other thing of value other than; (5) contributions, as defined in Section 8-13-1300(7).
(B) A lobbyist or a person acting on behalf of a lobbyist shall not offer, solicit or provide to or on behalf of any member of the General Assembly, the Governor, the Lieutenant Governor, any other statewide constitutional officer, any public official of any state agency who engaged in covered agency actions, or any of their employees contributions as defined in Section 8-13-1300(7).
(C) A member of the General Assembly, the Governor, the Lieutenant Governor, any other statewide constitutional officer, any public official of any state agency who engaged in covered agency actions, or any of their employees shall not solicit or receive from a lobbyist or a person acting on behalf of a lobbyist any of the following:
(1) lodging;
(2) transportation;
(3) entertainment;
(4) food, meals, beverages, money, or any other thing of value;
(5) contributions, as defined in Section 8-13-1300(7).
(C)(D) Subsections (A)(1) through (A)(4) and subsections (B)(1) through (B)(4) of this section do not apply to the furnishing of lodging, transportation, entertainment, food, meals, beverages, or any other thing of value which also is furnished on the same terms or at the same expense to a member of the general public without regard to status as a public official or public employee.
(D)(E) Subsections (A)(1), (A)(2), (B)(1), and (B)(2) of this section do not apply to the rendering of emergency assistance given gratuitously and in good faith by a lobbyist, a lobbyist's principal, or any person acting on behalf of a lobbyist or a lobbyist's principal to any member of the General Assembly, the Governor, the Lieutenant Governor, any other statewide constitutional officer, any public official of any state agency who engaged in covered agency actions, or any of their employees.
(E)(F) Subsections (A) and (B) do not apply to anything of value given to a family member for love and affection." /
Amend further by adding an appropriately numbered SECTION to read:
/ SECTION _. Section 8-13-1300(7) of the 1976 Code, as last amended by Act 76 of 2003, is further amended to read:
"(7) 'Contribution' means a gift, subscription, loan, guarantee upon which collection is made, forgiveness of a loan, an advance, in-kind contribution or expenditure, a deposit of money, or anything of value made to a candidate or committee to influence an election; or payment or compensation for the personal service of another person which is rendered for any purpose to a candidate or committee without charge, whether any of the above are made or offered directly or indirectly. 'Contribution' does not include (a) volunteer personal services on behalf of a candidate or committee for which the volunteer or any person acting on behalf of or instead of the volunteer receives no compensation either in cash or in-kind, directly or indirectly, from any source; or (b) a gift, subscription, loan, guarantee upon which collection is made, forgiveness of a loan, an advance, in-kind contribution or expenditure, a deposit of money, or anything of value made to a committee, other than a candidate committee, and which is used to pay for communications made not more than forty-five days before the election to influence the outcome of an elective office as defined in Section 8-13-1300(31)(c) and which does not expressly advocate a vote for or against a candidate. These funds must be deposited in an account separate from a campaign account as required in Section 8-13-1312." /
Renumber sections to conform.
Amend title to conform.
Rep. DELLENEY explained the amendment.
The amendment was then adopted.
The Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. DELLENEY, with unanimous consent, it was ordered that H. 5042 (Word version) be read the third time tomorrow.
Rep. GILHAM asked unanimous consent to recall H. 4905 (Word version) from the Committee on Judiciary.
Rep. BATTLE objected.
Rep. MARTIN asked unanimous consent to recall H. 4218 (Word version) from the Committee on Judiciary.
Rep. ALTMAN objected.
On motion of Rep. HARRISON, with unanimous consent, the following Bill was ordered recalled from the Committee on Judiciary:
S. 658 (Word version) -- Senator Alexander: A BILL TO AMEND SECTION 14-25-15, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPOINTMENT AND TERMS OF MUNICIPAL JUDGES, SO AS TO ESTABLISH A SET TERM OF FOUR YEARS RATHER THAN A TERM SET BY THE COUNCIL OF THE MUNICIPALITY NOT TO EXCEED FOUR YEARS.
Rep. HARRISON asked unanimous consent to recall H. 3529 (Word version) from the Committee on Judiciary.
Rep. SCOTT objected.
The Senate amendments to the following Bill were taken up for consideration:
H. 4572 (Word version) -- Reps. Battle, M. Hines, Richardson and Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-694 SO AS TO DESIGNATE THE SOUTH CAROLINA TOBACCO MUSEUM IN THE CITY OF MULLINS AS THE OFFICIAL TOBACCO MUSEUM OF THE STATE.
The Senate amendments were agreed to, and the Bill having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.
The following Concurrent Resolution was taken up:
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".
Rep. MCLEOD moved to adjourn debate on the Resolution until Tuesday, April 27, which was agreed to.
The following Concurrent Resolution was taken up:
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".
Whereas, roads and bridges throughout Horry and Marion counties and the State of South Carolina have been named in honor of distinguished citizens who have given of both their time and efforts to improve this great State of South Carolina; and
Whereas, Eugene F. Johnson, known by all as "Gene", a respected and loved citizen of Marion County, born and bred in Horry County, who served seven and one-half years as a Mullins Police Officer and twenty-five years as a Constable for the Marion County Sheriff's Office, was found deceased in his automobile on June 18, 2003, in Marion, South Carolina; and
Whereas, during his thirty-two and one-half years of loyal service as a member of law enforcement, Gene Johnson demonstrated the utmost love and care for his fellow workers, friends, and citizens of Horry and Marion counties and extraordinary professionalism and dedication to his job and their protection, working countless hours both day and night, and going far beyond the call of duty; and
Whereas, Eugene F. (Gene) Johnson was a member of Woodmen of the World-Lodge #123, the South Carolina Law Enforcement Officers Association, the Mullins Coffee Club, the "Who-So-Ever Will" First Baptist Church Men's Class, and the Springfield Baptist Church of Loris, South Carolina; and
Whereas, this avid hunter and fisherman of the Horry County and Marion County lands and waters was a member of the Twin-States Hunting Club and Wildlife Action, who spent many memorable hours with his wife and four children camping and fishing and with fellow hunters and fishermen along the banks and woodlands of the Little Pee Dee River. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That the members of the General Assembly of the State of South Carolina, by this resolution, request the Department of Transportation name 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" and to honor the memory of the late Eugene F. (Gene) Johnson who served and loved this State and those counties.
Be it further resolved that the Department of Transportation erect appropriate markers or signs at this bridge containing the words "Eugene F. (Gene) Johnson Memorial Bridge".
The Concurrent Resolution was adopted and sent to the Senate.
The SPEAKER granted Rep. EDGE a leave of absence for the remainder of the day due to illness.
The motion period was dispensed with on motion of Rep. LEACH.
The SPEAKER granted Rep. RHOAD a leave of absence for the remainder of the day due to a meeting.
The following Joint Resolution was taken up:
H. 5061 (Word version) -- Agriculture, Natural Resources and Environmental Affairs Committee: A JOINT RESOLUTION TO DISAPPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO WATER QUALITY CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT NUMBER 2871, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Rep. WITHERSPOON explained the Joint Resolution.
Rep. WITHERSPOON continued speaking.
Rep. HAGOOD spoke against the Joint Resolution.
Rep. HAGOOD continued speaking.
Rep. HAGOOD continued speaking.
Pursuant to Rule 7.7 the Yeas and Nays were taken resulting as follows:
Those who voted in the affirmative are:
Altman Anthony Bailey Bales Barfield Battle Bingham Bowers G. Brown J. Brown Cato Ceips Chellis Clark Clemmons Coates Dantzler Davenport Delleney Emory Freeman Frye Hamilton Harrison Haskins Hinson Huggins Jennings Kirsh Koon Leach Littlejohn Loftis Mahaffey Martin McCraw J. H. Neal Neilson Ott Owens Perry E. H. Pitts M. A. Pitts Quinn Rice Sandifer Sinclair Skelton G. M. Smith G. R. Smith J. R. Smith Snow Stewart Stille Talley Thompson Tripp Trotter Umphlett Vaughn Viers Walker White Whitmire Wilkins Witherspoon Young
Those who voted in the negative are:
Clyburn Coleman Cotty Gilham Hagood Harrell Herbkersman J. Hines M. Hines Hosey Keegan Limehouse Lourie Lucas McGee
McLeod Merrill Miller Moody-Lawrence Parks Richardson Scarborough Simrill J. E. Smith Toole Weeks Whipper
So, the Joint Resolution was read the second time and ordered to third reading.
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 38-90-35. 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;
(c) formed as a reciprocal shall:
(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;
(c) the overall soundness of its plan of operation;
(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;
(c) all contracts or sample contracts between the sponsored captive insurance company and any participants; and
(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
(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
(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."
"(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
(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
"(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:
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;
(c) the overall soundness of its plan of operation; and
(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;
(c) all contracts or sample contracts between the SPFC and any counterparty, related to each protected cell; and
(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
(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; and
(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
(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
(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
(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.
(C) Subject to the approval of the director, a SPFC may lawfully:
(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
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.
(C) A SPFC contract must contain provisions that:
(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
(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
(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
(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
(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
(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
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
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.
(C) Each protected cell of the SPFC must be taxed as if it is a separate and distinct 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,
(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
(c) the information sought is unavailable from other nonconfidential sources.
(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
Rep. TRIPP explained the amendment.
The amendment was then adopted.
Rep. CATO proposed the following Amendment No. 2 (Doc Name COUNCIL\DKA\3897DW04), which was adopted:
Amend the bill, as and if amended, Section 38-90-430, SECTION 15, page [5002-17], beginning on line 1 , by deleting subsection (B) in its entirety and inserting:
/ (B) Sections 38-3-110 through 38-3-240, 38-5-130, 38-57-200, and 38-90-175 apply to SPFCs. /
Amend further, Section 38-90-440(H), SECTION 15, page [5002-20], line 22, by inserting / domestic / before /SPFC/.
Renumber sections to conform.
Amend title to conform.
Rep. CATO explained the amendment.
The amendment was then adopted.
Pursuant to Rule 7.7 the Yeas and Nays were taken resulting as follows:
Those who voted in the affirmative are:
Altman Anthony Bailey Bales Barfield Battle Bingham Bowers G. Brown J. Brown R. Brown Cato Ceips Chellis Clark Clemmons Clyburn Coates Coleman Cooper Cotty Dantzler Davenport Emory Freeman Frye Gilham
Govan Hamilton Harrell Haskins Herbkersman J. Hines Hinson Hosey Huggins Jennings Keegan Kennedy Kirsh Koon Leach Lee Limehouse Littlejohn Loftis Lourie Lucas Mack Mahaffey Martin McCraw McGee Merrill Miller J. H. Neal J. M. Neal Neilson Ott Owens Parks Perry Pinson E. H. Pitts M. A. Pitts Quinn Rice Richardson Rutherford Sandifer Scarborough Scott Simrill Sinclair Skelton D. C. Smith G. M. Smith G. R. Smith J. R. Smith Stewart Stille Talley Thompson Toole Townsend Tripp Trotter Umphlett Vaughn Viers Weeks Whipper White Whitmire Wilkins Young
Those who voted in the negative are:
So, the Bill, as amended, was read the second time and ordered to third reading.
On motion of Rep. CATO, with unanimous consent, it was ordered that H. 5002 (Word version) be read the third time tomorrow.
Rep. TROTTER moved that the House recur to the Morning Hour, which was agreed to.
Rep. HARRISON, from the Committee on Judiciary, submitted a favorable report with amendments on:
H. 4721 (Word version) -- Reps. Edge and Jennings: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 15-75-45 SO AS TO PROVIDE FOR PUNITIVE DAMAGES WHEN A PERSON, WITH INTENT TO AVOID PAYMENT FOR A SERVICE RENDERED, KNOWINGLY SECURES PERFORMANCE OF THE SERVICE BY DECEPTION, THREAT, OR FALSE TOKEN OR BY AGREEING TO PROVIDE COMPENSATION AND FAILING TO MAKE PAYMENT AFTER RECEIVING A DEMAND FOR PAYMENT, TO PROVIDE FOR THE ELEMENTS OF THEFT OF SERVICE, TO DEFINE "SERVICES", AND TO PROVIDE FOR A DEFENSE.
Ordered for consideration tomorrow.
The following was introduced:
H. 5165 (Word version) -- Reps. Neilson, Lucas and J. Hines: A HOUSE RESOLUTION TO CONGRATULATE MR. JIM FAILE, MANAGING EDITOR OF THE MESSENGER FOR BEING NAMED THE SOUTH CAROLINA WEEKLY JOURNALIST OF THE YEAR BY THE SOUTH CAROLINA PRESS ASSOCIATION.
The Resolution was adopted.
The following was introduced:
H. 5166 (Word version) -- Reps. Neilson, J. Hines and Lucas: A HOUSE RESOLUTION TO RECOGNIZE AND COMMEND DR. JOE MATTHEWS OF DARLINGTON FOR HIS FORTY-THREE YEARS OF OUTSTANDING AND DEDICATED SERVICE TO THE CITIZENS OF DARLINGTON COUNTY UPON THE OCCASION OF HIS RETIREMENT FROM THE PRACTICE OF MEDICINE AND TO WISH HIM MUCH HAPPINESS IN HIS RETIREMENT.
The Resolution was adopted.
On motion of Rep. RUTHERFORD, with unanimous consent, the following was taken up for immediate consideration:
H. 5167 (Word version) -- Rep. Rutherford: A HOUSE RESOLUTION TO EXTEND THE PRIVILEGE OF THE FLOOR OF THE HOUSE OF REPRESENTATIVES TO THE DOUBLE DUTCH FORCES AND THEIR COACHES, STAFF, AND OTHER OFFICIALS ON APRIL 29, 2004, AT A TIME TO BE DETERMINED BY THE SPEAKER TO RECOGNIZE AND COMMEND THEM FOR THEIR OUTSTANDING ACCOMPLISHMENTS AS THE NATIONAL, WORLD, AND INTERNATIONAL CHAMPIONS.
Be it resolved by the House of Representatives:
That the members of the House of Representatives of the State of South Carolina, by this resolution, extend the privilege of the floor to the Double Dutch Forces and their coaches, staff, and other officials on April 29, 2004, to recognize and commend them for their outstanding accomplishments as the National, World, and International Champions.
The Resolution was adopted.
The following was introduced:
H. 5168 (Word version) -- Rep. Rutherford: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND THE DOUBLE DUTCH FORCES OF COLUMBIA FOR THEIR OUTSTANDING ACCOMPLISHMENTS AS THE NATIONAL, WORLD, AND INTERNATIONAL CHAMPIONS, AND TO WISH THE MEMBERS MUCH SUCCESS IN THEIR FUTURE ENDEAVORS.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 5169 (Word version) -- Rep. Bowers: A CONCURRENT RESOLUTION TO RECOGNIZE AND CONGRATULATE KYLE MITCHELL WAY
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 5170 (Word version) -- Rep. Lourie: A CONCURRENT RESOLUTION APPLAUDING THE CHOICE OF COLUMBIA MAYOR ROBERT D. (BOB) COBLE BY THE GREATER COLUMBIA CHAMBER OF COMMERCE AS THE 2004 AMBASSADOR OF THE YEAR, AND JOINING IN THE OPPORTUNITY TO RECOGNIZE AND EXPRESS APPRECIATION FOR HIS VISIONARY CONTRIBUTIONS TO THE CITY OF COLUMBIA, RICHLAND COUNTY, AND THE STATE OF SOUTH CAROLINA.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 5171 (Word version) -- Reps. Lourie and McLeod: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND AMANDA HELEN PENNEKAMP FOR BEING CROWNED MISS SOUTH CAROLINA USA AND TO EXTOL HER FOR HER OUTSTANDING REPRESENTATION OF THE STATE IN THE MISS USA PAGEANT.
The Concurrent Resolution was agreed to and ordered sent to the Senate.
The following was introduced:
H. 5172 (Word version) -- Reps. J. E. Smith, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown,
The Concurrent Resolution was agreed to and ordered sent to the Senate.
Rep. CLYBURN moved that the House do now adjourn, which was agreed to.
The Senate returned to the House with concurrence the following:
H. 5146 (Word version) -- Rep. Tripp: A CONCURRENT RESOLUTION TO HONOR AND CONGRATULATE AMANDA REEVES AND HER FAMILY FOR BEING NAMED THE 2004 NATIONAL AMBASSADOR FAMILY FOR THE MARCH OF DIMES AND TO COMMEND THE REEVES FAMILY FOR TRAVELING THE COUNTRY TO SHARE THEIR STORY AND TO PROMOTE AWARENESS OF PREMATURE BIRTH.
H. 5149 (Word version) -- Rep. G. Brown: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE COACH RICHARD "DICKIE" MCCUTCHEN OF ROBERT E. LEE ACADEMY FOR HIS THIRTY-FOUR YEARS OF DEDICATED SERVICE, TO THANK HIM FOR HIS COMMITMENT TO EDUCATION, AND TO EXTEND BEST WISHES TO HIM UPON HIS RETIREMENT.
H. 5150 (Word version) -- Rep. J. Hines: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE DR. SIDNEY GRIFFIN OF LAMAR FOR HIS DEDICATION TO THE FIELD OF MEDICINE AND HIS COMMITMENT TO EDUCATING SOUTH CAROLINIANS ABOUT ORGAN DONATION.
H. 5152 (Word version) -- Rep. Littlejohn: A CONCURRENT RESOLUTION TO RECOGNIZE AND CONGRATULATE ROBERT WAYNE "ROBBIE" COOKSEY OF SPARTANBURG, FOR HIS
H. 5154 (Word version) -- Reps. Toole, Bingham, Koon, Clark, Frye, E. H. Pitts, Huggins, McLeod and Ott: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE DR. KAREN WOODWARD, LEXINGTON SCHOOL DISTRICT ONE SUPERINTENDENT, ON RECEIVING THE 2004 "TECH-SAVVY SUPERINTENDENT" AWARD FROM ESCHOOL NEWS AND TO EXTEND BEST WISHES TO HER IN ALL HER FUTURE ENDEAVORS.
At 12:00 noon the House, in accordance with the motion of Rep. COLEMAN, adjourned in memory of James C. Anders of Richland County, to meet at 10:00 a.m. tomorrow.
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