Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 2:00 P.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.

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

Beloved, you have heard the immortal words many times. They have special meaning for these times. St. Matthew, Chapter 22 (21):

"Whose is this image and superscription? They say unto him, 'Caesar's'. Then said He unto them, 'Render therefore unto Caesar the things that are Caesar's; and unto God, the things that are God's'."

Let us pray.

Father, last week we gathered and went to Church together and felt good about it all! We spent a few days organizing and setting our goals and agendas.

Tonight we will gather in Joint Session in consultation with our Governor... the House... the Senate.

It has been whispered to us, "The devil is in the details." But we feel we have our compass and our map in the Holy Scriptures.

Help us to walk together in the spirit of the Mayflower Compact of 1621 saying, "In the beginning God".
Amen.

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

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

Reappointment, Beaufort County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Joseph N. Kline, 42 Kline Circle, Seabrook, S.C. 29940

Reappointment, Beaufort County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Charles L. Smith, P. O. Box 840, Bluffton, S.C. 29910

Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Robert James Aycock III, 301 North Meadow Drive, Manning, S.C. 29102 VICE Annelle G. Powell

Initial Appointment, Clarendon County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Sharon B. Ridgeway, 204 Oakland Street, Manning, S.C. 29102 VICE Carl M. Evans

Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Johnny L. Wilson, #9 Gerald Ave., Manning, S.C. 29102 VICE James Dingle

Initial Appointment, Greenwood County Magistrate, with term to commence January 16, 2003, and to expire April 30, 2003

Joe C. Cantrell, 215 Johns Creek Road, Hodges, S.C. 29653

Initial Appointment, Greenwood County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Jeffrey A. Constant, 131 Creek Road East, Greenwood, S.C. 29646

Initial Appointment, Lexington County Magistrate, with term to commence July 1, 2002, and to expire April 30, 2003

Jamie T. Lucas, 351 Kitti Wake Drive, West Columbia, S.C. 29170

Initial Appointment, Lexington County Magistrate, with term to commence July 1, 2002, and to expire April 30, 2003

Gary S. Morgan, P. O. Box 1632, Lexington, S.C. 29071

Reappointment, Myrtle Beach Air Force Base Redevelopment Authority, with term to commence June 30, 2002, and to expire June 30, 2006

Delegation

Charles A. Stuart, Jr., 7878 Old Reaves Ferry Rd., Conway, S.C. 29526

Initial Appointment, Richland County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003

George Anderson Surles, 113 Bostwick Ridge, Columbia, S.C. 29229 VICE William T. Smith

Initial Appointment, Spartanburg County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Robert G. Hamilton, 1225 Old Mill Road, Campobello, S.C. 29322 VICE George Abernathy

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Elizabeth Givens, 104 Council Street, Sumter, S.C. 29150 VICE Mary Katherine Herbert

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Bryan Keith Griffin, 640 Chickasaw, Sumter, S.C. 29150 VICE George McFadden

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Kathy Ward, 23 Robbins Ave., Sumter, S.C. 29150 VICE Warrren Curtis

Initial Appointment, Union County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003

Anita Pecko Whitney, 3822 Whitmire Highway, Union, S.C. 29379 VICE Sarah M. Smith

Initial Appointment, Williamsburg County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

William Ellerbe Ackerman, Jr., 1609 Seaboard Rd., Andrews, S.C. 29510

Senator MARTIN introduced Dr. H. W. Walpole of Easley, S.C., Doctor of the Day.

Senator GREGORY rose for an Expression of Personal Interest.

The following were introduced:

S. 237 (Word version) -- Senator Grooms: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-5-73 SO AS TO PROVIDE A STATEWIDE UNIFORM ENDING DATE FOR PUBLIC SCHOOLS OF THE STATE TO BE THE LAST DAY OF THE PALMETTO ACHIEVEMENT CHALLENGE TEST AS DETERMINED BY THE STATE BOARD OF EDUCATION.
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Read the first time and referred to the Committee on Education.

S. 238 (Word version) -- Senator Reese: A BILL TO AMEND SECTION 1-11-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE COMPOSITION OF THE STATE BUDGET AND CONTROL BOARD, SO AS TO ADD THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE SENATE TO THE BOARD AND TO REMOVE THE COMPTROLLER GENERAL AND THE STATE TREASURER.
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Read the first time and referred to the Committee on Finance.

S. 239 (Word version) -- Senators Grooms, Fair and Verdin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-1165 SO AS TO PROVIDE A TAX EXEMPTION FOR EACH PREBORN CHILD AS A DEPENDENT FOR SOUTH CAROLINA INCOME TAX PURPOSES.
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Senator GROOMS spoke on the Bill.

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

S. 240 (Word version) -- Senator Ford: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 34, ARTICLE III OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE PROHIBITION OF THE GENERAL ASSEMBLY ENACTING LOCAL OR SPECIAL LAWS, SO AS TO ALLOW A COUNTY BY ORDINANCE, BY A VOTE OF A MAJORITY OF A COUNTY'S LEGISLATIVE DELEGATION OR A PETITION SIGNED BY FIVE PERCENT OF A COUNTY'S REGISTERED ELECTORS, SUBJECT TO A FAVORABLE REFERENDUM, TO AUTHORIZE THE OPERATION OR POSSESSION OF ANY TYPE OF COIN-OPERATED AMUSEMENT OR GAMING MACHINE OR DEVICE IN THAT COUNTY.
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Read the first time and referred to the Committee on Judiciary.

S. 241 (Word version) -- Senator Grooms: A JOINT RESOLUTION TO CREATE A STATE GOVERNMENT INTERAGENCY STUDY COMMITTEE TO STUDY STEPS TO BE TAKEN TO PROVIDE OPPORTUNITIES FOR TRAILS ON STATE OWNED OR LEASED LAND OR PRIVATELY OWNED LAND FOR OFF-ROAD MOTORCYCLE AND ALL TERRAIN VEHICLE RECREATIONAL ACTIVITY; TO PROVIDE FOR THE STUDY COMMITTEE MEMBERSHIP; AND TO REQUIRE THAT THE STUDY COMMITTEE REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GENERAL ASSEMBLY BEFORE JANUARY 14, 2004, AT WHICH TIME THE STUDY COMMITTEE IS ABOLISHED.
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Read the first time and referred to the Committee on Judiciary.

S. 242 (Word version) -- Senator Grooms: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO ARTICLE XV OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO IMPEACHMENT OF CERTAIN EXECUTIVE AND JUDICIAL OFFICERS OF THIS STATE, BY ADDING SECTION 4 SO AS TO PROVIDE PROCEDURES FOR RECALLING AND REMOVING FROM PUBLIC OFFICE PERSONS HOLDING PUBLIC OFFICES OF THE STATE OR ITS POLITICAL SUBDIVISIONS IN THE EXECUTIVE AND LEGISLATIVE BRANCHES OF STATE OR LOCAL GOVERNMENTS; AND PROPOSING AN AMENDMENT TO ARTICLE XVII, BY ADDING SECTION 15 SO AS TO ESTABLISH A SPECIFIED PROCEDURE FOR THE ENACTMENT OR REPEAL OF LAWS AND CONSTITUTIONAL AMENDMENTS BY INITIATIVE PETITION AND REFERENDUM AND TO PROVIDE EXCEPTIONS.
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Read the first time and referred to the Committee on Judiciary.

S. 243 (Word version) -- Senator Ford: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 2 OF ARTICLE V OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO THE COMPOSITION OF THE SUPREME COURT, SO AS TO INCREASE FROM FIVE TO SEVEN THE NUMBER OF JUSTICES COMPRISING THE SUPREME COURT ON JANUARY 1, 2007; TO SECTION 3, ARTICLE V, RELATING TO THE ELECTION OF MEMBERS OF THE SUPREME COURT, SO AS TO PROVIDE THAT ASSOCIATE JUSTICES OF THE SUPREME COURT SHALL BE POPULARLY ELECTED FROM CONGRESSIONAL DISTRICTS BY THE QUALIFIED VOTERS OF EACH DISTRICT BEGINNING IN 2006 AND THAT THE CHIEF JUSTICE OF THE SUPREME COURT SHALL BE ELECTED FROM THE STATE AT-LARGE; TO SECTION 8, ARTICLE V, RELATING TO ELECTION OF MEMBERS OF THE COURT OF APPEALS, SO AS TO PROVIDE THAT JUDGES OF THE COURT OF APPEALS SHALL BE POPULARLY ELECTED FROM CONGRESSIONAL DISTRICTS BY THE QUALIFIED VOTERS OF EACH DISTRICT; AND TO SECTION 13, ARTICLE V, RELATING TO JUDICIAL CIRCUIT JUDGES, SO AS TO PROVIDE THAT CIRCUIT COURT JUDGES SHALL BE POPULARLY ELECTED FROM STATE SENATORIAL DISTRICTS BY THE QUALIFIED VOTERS OF EACH DISTRICT AND THAT THE CHIEF JUSTICE SHALL ASSIGN CIRCUIT JUDGES TO THE JUDICIAL CIRCUITS WITH REASONABLE EFFORTS MADE TO ACCOUNT FOR GEOGRAPHICAL LOCATION.
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Read the first time and referred to the Committee on Judiciary.

S. 244 (Word version) -- Senator Ford: A BILL TO AMEND CHAPTER 17, TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 9 SO AS TO ENACT A STATEWIDE CURFEW FOR MINORS, TO PROVIDE A CIVIL PENALTY FOR A VIOLATION OF THE CURFEW, AND TO PROVIDE A PROCEDURE WHEREBY MUNICIPALITIES AND COUNTIES MAY "OPT OUT" OF THE CURFEW.
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Read the first time and referred to the Committee on Judiciary.

S. 245 (Word version) -- Senator Ford: A BILL TO AMEND SECTION 2-19-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEMBERSHIP OF THE JUDICIAL MERIT SELECTION COMMISSION, SO AS TO MAKE A TECHNICAL CHANGE AND PROVIDE THAT NO MEMBER IS ELIGIBLE TO SEEK JUDICIAL OFFICE WHILE SERVING ON THE COMMISSION AND FOR ONE YEAR THEREAFTER; TO AMEND SECTION 2-19-20, AS AMENDED, RELATING TO THE RESPONSIBILITY OF THE COMMISSION TO INVESTIGATE THE QUALIFICATIONS OF CANDIDATES AND TO PUBLICIZE VACANCIES IN JUDICIAL OFFICES, SO AS TO MAKE TECHNICAL CHANGES TO CLARIFY THAT PERSONS DO NOT SEEK TO BE NOMINATED BY THE COMMISSION BUT, RATHER, SEEK JUDICIAL OFFICE; TO AMEND SECTION 2-19-30, AS AMENDED, BY ADDING A PROVISION THAT, WHEN THE COMMISSION FINDS A CANDIDATE UNQUALIFIED, THE CANDIDATE MUST BE FURNISHED A COPY OF THE COMMISSION'S REPORT CONCERNING HIS QUALIFICATIONS, AND TO PROVIDE FURTHER THAT THE REPORT MUST BE KEPT CONFIDENTIAL; TO AMEND SECTION 2-19-35, AS AMENDED, RELATING TO THE CRITERIA CONSIDERED BY THE COMMISSION IN DETERMINING THE QUALIFICATIONS OF CANDIDATES FOR JUDICIAL OFFICE, SO AS TO MAKE A TECHNICAL CHANGE BY CHANGING THE TERM "MAKING NOMINATIONS" TO "DETERMINING QUALIFICATIONS"; TO AMEND SECTION 2-19-70, AS AMENDED, RELATING TO THE PRIVILEGE OF THE FLOOR IN EITHER HOUSE OF THE GENERAL ASSEMBLY AND RELATING TO THE SEEKING OF PLEDGES OF MEMBERS OF THE GENERAL ASSEMBLY, SO AS TO PROVIDE THE JUDICIAL CANDIDATE IS NOT PERMITTED ON THE FLOOR DURING THE TIME HE IS LISTED AS A QUALIFIED CANDIDATE AND THE ELECTION IS PENDING, AND TO FURTHER PROVIDE THAT THE COMMISSION SHALL RELEASE A LIST OF QUALIFIED CANDIDATES RATHER THAN RELEASING ITS NOMINEES; TO AMEND SECTION 2-19-80, AS AMENDED, RELATING TO THE COMMISSION SELECTING THE THREE BEST QUALIFIED CANDIDATES FOR A JUDICIAL OFFICE AS ITS NOMINEES, SO AS TO REQUIRE THE COMMISSION TO RELEASE A LIST OF ALL QUALIFIED CANDIDATES FOR THE OFFICE, AND TO FURTHER PROVIDE THAT THE LIST OF CANDIDATES IS BINDING ON THE GENERAL ASSEMBLY, AND TO PROVIDE FURTHER CONFORMING CHANGES; AND TO AMEND SECTION 2-19-90, RELATING TO THE JOINT SESSION OF THE GENERAL ASSEMBLY HELD FOR THE ELECTION OF JUDGES, SO AS TO PROVIDE THE CHAIRMAN OF THE COMMISSION SHALL ANNOUNCE THE LIST OF QUALIFIED CANDIDATES FOR EACH JUDICIAL ELECTION.
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Read the first time and referred to the Committee on Judiciary.

S. 246 (Word version) -- Senator Grooms: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-3-500 SO AS TO PROVIDE THAT, IF THE GOVERNOR ORDERS A MANDATORY EVACUATION OF COASTAL COUNTIES, ALL TRAFFIC ON AFFECTED INTERSTATE SYSTEMS MUST BE ROUTED USING ALL LANES OR SEGMENTS OF THE INTERSTATE UNTIL THE GOVERNOR'S EMERGENCY PROCLAMATION IS TERMINATED.
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Read the first time and referred to the Committee on Judiciary.

S. 247 (Word version) -- Senator Grooms: A BILL TO AMEND SECTION 8-1-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PUBLIC OFFICERS NOT CONSIDERED DUAL OFFICEHOLDERS SO AS TO PROVIDE THAT A MUNICIPAL POLICE OFFICER IS NOT CONSIDERED A DUAL OFFICEHOLDER FOR THE PURPOSES OF SECTION 3, ARTICLE VI OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, IF HE HOLDS AN OFFICE IN ANOTHER POLITICAL SUBDIVISION.
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Read the first time and referred to the Committee on Judiciary.

S. 248 (Word version) -- Senator Grooms: A JOINT RESOLUTION PROPOSING AN AMENDMENT TO SECTION 24 OF ARTICLE III, SECTION 3 OF ARTICLE VI, AND SECTION 1A OF ARTICLE XVII OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO DUAL OFFICEHOLDING AND QUALIFICATION FOR OFFICE, SO AS TO PROVIDE THAT THE PROHIBITION AGAINST HOLDING TWO OFFICES DOES NOT APPLY TO MUNICIPAL POLICE OFFICERS WHO HOLD ANOTHER OFFICE.
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Read the first time and referred to the Committee on Judiciary.

S. 249 (Word version) -- Senator Ford: A BILL TO AMEND SECTION 39-1-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MAKING INTENTIONALLY UNTRUE STATEMENTS IN ADVERTISING, SO AS TO PROHIBIT ADVERTISING THAT IS KNOWN OR SHOULD BE KNOWN TO BE UNTRUE OR MISLEADING IN ANY FORM, INCLUDING TELEVISION, RADIO, AND INTERNET BROADCASTS; AND TO AMEND SECTION 39-5-40, RELATING TO APPLICABILITY OF THE UNFAIR TRADE PRACTICES ACT, SO AS TO MAKE THE PROVISIONS APPLICABLE TO A PERSON WHO KNEW OR SHOULD HAVE KNOWN THE ADVERTISING WAS UNTRUE OR MISLEADING.
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Read the first time and referred to the Committee on Labor, Commerce and Industry.

S. 250 (Word version) -- Senators Kuhn, Ford, Ravenel and Mescher: A BILL TO ESTABLISH GOVERNANCE CRITERIA AND REVISE THE GOVERNANCE STRUCTURE OF THE CHARLESTON COUNTY SCHOOL DISTRICT, TO ABOLISH THE EIGHT CONSTITUENT DISTRICT BOARDS OF SCHOOL TRUSTEES IN CHARLESTON COUNTY AND TO DEVOLVE THEIR POWERS, DUTIES, ASSETS, AND LIABILITIES UPON THE CHARLESTON COUNTY SCHOOL DISTRICT BOARD OF TRUSTEES, SO AS TO PROVIDE THAT THE SUPERINTENDENT OF EDUCATION OF CHARLESTON COUNTY IS THE CHIEF EXECUTIVE OFFICER OF THE DISTRICT, WHO SHALL HIRE ALL DISTRICT PERSONNEL, INCLUDING TEACHERS, AND WHO SHALL HIRE AREA SUPERINTENDENTS TO CONSULT WITH SCHOOL PRINCIPALS AND TO ACT AS INTERMEDIARY BETWEEN THE PRINCIPALS AND THE DISTRICT SUPERINTENDENT; TO PROVIDE THAT THE BOARD OF TRUSTEES OF THE DISTRICT SHALL CONSIST OF NINE MEMBERS WHO MUST BE ELECTED IN PARTISAN ELECTIONS FROM DEFINED SINGLE-MEMBER ELECTION DISTRICTS BEGINNING IN 2004, TO PROVIDE FOR THE TERMS OF THE MEMBERS OF THE BOARD SO ELECTED, AND TO PROVIDE FOR OTHER PROCEDURAL MATTERS IN REGARD TO THE ELECTION OF THESE MEMBERS; AND TO REPEAL ACT 340 OF 1967, AS AMENDED, RELATING TO THE CHARLESTON COUNTY SCHOOL DISTRICT AND VARIOUS DUTIES OF THE DISTRICT SUPERINTENDENT AND THE BOARD.
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Senator KUHN spoke on the Bill.

I'd like to take a moment to introduce Senate Bill 250. It's a local Bill, so I won't take much of the whole Senate's time.

As you probably know, in Charleston County we have a school district in which 70 percent of all the children in grades three through eight are below grade level in English language arts. We have a school district in which more than 70 percent of the students in third through eighth grades are below grade level in mathematics. We have more than 5,000 students in those grades that are actually even below bare minimum standards in English and 6,000 or more students that are below the bare minimum standards in mathematics.

What we have is a 1967 Act that put in a constituent school board system and a governance structure that doesn't work. It has not managed to help the Charleston School District educate every single child in Charleston County. It has done a pretty good job of leaving out an awful lot of children -- in fact, more than half. Not surprisingly, with those statistics I just gave you, half of the children in Charleston County who start high school - who start ninth grade - do not graduate. You can imagine where most of those students live. They live in the poor, the minority and the black districts.

This is a school system that hasn't worked. I've been watching it for a long time. I live in it. My Senate district has 29 schools that are below average, and it's time to make a change.

What I'm excited about is to have the opportunity to present comprehensive legislation that overhauls the whole Charleston County School District. This Bill puts in a new governance structure where the board runs in single-member districts, thereby becoming accountable to their neighborhoods only and accountable to the schools in their neighborhoods. Board members will run in single-member districts where they are accountable to the parents and to the children in those school districts.

This Bill also has a number of other things in it to revise the governance structure to allow our school board (which is not at fault for this problem) to be able to govern, to set policy and direction for the school board and to hire a terrific superintendent. We're in the process of hiring a superintendent now. We want to send a message with this Bill that we have a great system in place so that a superintendent will want to come in and know that he or she will be able to do a great job.

Last but not least, the reason I'm doing this is that education is dear to my heart. Education is the ticket to freedom. There are no other tickets to freedom.

Every child in the State of South Carolina has a dream. But, to achieve that dream, every child in South Carolina has to have one essential ingredient, and that is a top-notch education.

As you all know, I'm not originally from Charleston. I'm from a farm in California. I'm from a very poor and rural area. I went to a public school on the farm that did not have much money. What it did have was a great education. That great education provided me with the ability to get out of the farm when I wanted to leave. That education allowed me to pursue my dreams to become a lawyer and provide for my family, to export food around the world and provide food for others all over the world. That great education eventually allowed me to run for the South Carolina Senate and afforded me the academic background necessary to win an election. That is what an education does for you, and that's what an education can do for every child in this State if we give them the opportunity.

However, we must put in a system, including in Charleston County, which actually allows our school districts to proceed with educating every child and provides all our children an opportunity to pursue their dreams. And, that is what this Bill is designed to do.

This Bill provides comprehensive change, and I'm thrilled to have bipartisan support. Senator FORD is a co-sponsor, Senator RAVENEL is a co-sponsor, Senator MESCHER is a co-sponsor, and I have bipartisan support. I just want to tell the legislative body: When we have 70 percent of our children performing below average in math and English, we must start doing things in South Carolina instead of talking about doing things.

Thank you.

On motion of Senator KUHN, with unanimous consent, Senator KUHN's remarks were ordered printed in the Journal.

Read the first time and ordered placed on the Local and Uncontested Calendar.

S. 251 (Word version) -- Senator Holland: A BILL TO AMEND ACT 868 OF 1954, AS AMENDED, RELATING TO THE MEMBERSHIP AND POWERS OF THE KERSHAW COUNTY HOSPITAL BOARD, SO AS TO ADD A MEMBER TO THE BOARD WHO MUST BE A PHYSICIAN AND WHO MUST BE APPOINTED BY THE KERSHAW COUNTY LEGISLATIVE DELEGATION UPON THE RECOMMENDATION OF A MAJORITY OF THE LICENSED PHYSICIANS RESIDING IN KERSHAW COUNTY.
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Read the first time and ordered placed on the Local and Uncontested Calendar.

S. 252 (Word version) -- Senator Moore: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE SENATE UPON THE DEATH OF TRACY WILLIAM DORN, SR. OF MCCORMICK COUNTY, WEDNESDAY, DECEMBER 25, 2002, AND TO CONVEY DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.

S. 253 (Word version) -- Senator Moore: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE SENATE UPON THE DEATH OF JOHN D. "JACK" PATTERSON OF MCCORMICK COUNTY, WEDNESDAY, NOVEMBER 27, 2002, AND TO CONVEY DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.

S. 254 (Word version) -- Senators Martin and Alexander: A CONCURRENT RESOLUTION TO COMMEND JAMES VERDIN "JAMIE" HUGHES OF PICKENS FOR HIS OUTSTANDING COURAGE, SELFLESSNESS, AND CONCERN FOR OTHERS DEMONSTRATED WHEN HE SAVED NATALIE BADNARUK FROM HER BURNING HOME ON JANUARY 19, 2003.
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Senator MARTIN spoke on the Resolution.

The question then was the adoption of the Concurrent Resolution.

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

Alexander                 Anderson                  Branton
Courson                   Drummond                  Elliott
Fair                      Ford                      Giese
Glover                    Gregory                   Grooms
Hawkins                   Hayes                     Holland
Hutto                     Jackson                   Knotts
Kuhn                      Land                      Leatherman
Leventis                  Malloy                    Martin
Matthews                  McConnell                 McGill
Mescher                   Moore                     O'Dell
Patterson                 Peeler                    Pinckney
Rankin                    Ravenel                   Reese
Richardson                Ritchie                   Ryberg
Setzler                   Short                     Smith, J. Verne
Thomas                    Verdin                    Waldrep

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

S. 255 (Word version) -- Senators McConnell, Moore and Ritchie: A CONCURRENT RESOLUTION TO FIX 12:00 NOON ON WEDNESDAY, FEBRUARY 5, 2003, AS THE TIME TO ELECT A SUCCESSOR TO A CERTAIN CHIEF JUDGE OF THE COURT OF APPEALS, SEAT 5, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE COURT OF APPEALS, SEAT 6, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE FIFTH JUDICIAL CIRCUIT, SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE THIRTEENTH JUDICIAL CIRCUIT, SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE FOURTEENTH JUDICIAL CIRCUIT, SEAT 2, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT FOR THE FIFTEENTH JUDICIAL CIRCUIT, SEAT 2, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 1, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 2, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 3, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 5, TO FILL THE UNEXPIRED TERM, WHICH EXPIRES JUNE 30, 2003, AND THE SUBSEQUENT TERM; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 6, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 7, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 8, WHOSE TERM EXPIRES JUNE 30, 2003; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 9, TO FILL THE UNEXPIRED TERM, WHICH EXPIRES JUNE 30, 2003, AND THE SUBSEQUENT TERM; TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE CIRCUIT COURT, AT-LARGE SEAT 10, WHOSE TERM EXPIRES JUNE 30, 2003; AND TO ELECT A SUCCESSOR TO A CERTAIN JUDGE OF THE ADMINISTRATIVE LAW JUDGE DIVISION, SEAT 5, WHOSE TERM EXPIRES JUNE 30, 2003.
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Senator RITCHIE spoke on the Resolution.

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

S. 256 (Word version) -- Senator Grooms: A CONCURRENT RESOLUTION TO REQUEST THAT THE SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION ERECT DIRECTIONAL AND HISTORICAL SIGNS AT LOCATIONS WHICH ARE VISIBLE TO THE MOTORING PUBLIC READING "HISTORICAL TUSKEGEE AIRMEN MEMORIAL" AND THAT THESE SIGNS MUST BE PLACED AT APPROPRIATE LOCATIONS ON INTERSTATE 95 NEAR EXITS 53 AND 57, WITH DIRECTIONAL SIGNS AT THE OFF-RAMP TERMINATIONS, IN COLLETON COUNTY.
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The Concurrent Resolution was introduced and referred to the Committee on Transportation.

S. 257 (Word version) -- Senator Grooms: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION ERECT DIRECTIONAL SIGNS AT LOCATIONS WHICH ARE VISIBLE TO THE MOTORING PUBLIC READING "SOUTH CAROLINA ARTISANS CENTER" AND THAT THESE SIGNS MUST BE PLACED AT APPROPRIATE LOCATIONS ON INTERSTATE 95 NEAR EXITS 53 AND 57 IN COLLETON COUNTY.
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The Concurrent Resolution was introduced and referred to the Committee on Transportation.

S. 258 (Word version) -- Senators Gregory, Ryberg, Hayes, Courson, Peeler, Branton and Reese: A BILL TO AMEND CHAPTER 29, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-29-165 SO AS TO REQUIRE HIGH SCHOOL STUDENTS TO RECEIVE INSTRUCTION IN THE AREA OF PERSONAL FINANCE.
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Read the first time and referred to the Committee on Education.

S. 259 (Word version) -- Senator Fair: A BILL TO REPEAL JOINT RESOLUTION 775 OF 1976 WHICH CALLED ON CONGRESS TO BALANCE THE FEDERAL BUDGET THROUGH SUBMITTING AN APPROPRIATE AMENDMENT TO THE STATES FOR RATIFICATION OR IN THE ALTERNATIVE TO CALL A CONSTITUTIONAL CONVENTION FOR THIS PURPOSE AND TO DISAVOW ANY OTHER CALLS FOR A CONSTITUTIONAL CONVENTION BY ANY MEANS EXPRESSED.
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Read the first time and referred to the Committee on Finance.

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

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

H. 3282 (Word version) -- Reps. Taylor, Duncan and M.A. Pitts: A BILL TO AMEND ACT 779 OF 1988, AS AMENDED, RELATING TO LAURENS COUNTY SCHOOL DISTRICTS 55 AND 56, SO AS TO PROVIDE THAT THE ELECTIONS FOR SCHOOL BOARD OF TRUSTEES FOR THE DISTRICTS MUST BE HELD ON THE SECOND TUESDAY OF MARCH INSTEAD OF THE FIRST TUESDAY OF MARCH, IN APPROPRIATE YEARS.

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

H. 3259 (Word version) -- Rep. Lucas: A BILL TO ENACT THE "SCHOOL DISTRICT OF DARLINGTON COUNTY SCHOOL BOND PROPERTY TAX RELIEF ACT" WHICH AUTHORIZES THE IMPOSITION OF A ONE PERCENT SALES AND USE TAX WITHIN DARLINGTON COUNTY UPON APPROVAL IN A REFERENDUM TO BE USED FOR SPECIFIED SCHOOL PURPOSES.

S. 232 (Word version) -- Senators J. Verne Smith, Richardson, Leventis, Alexander and Giese: A BILL TO REPEAL JOINT RESOLUTION 370 OF 2002, RELATING TO THE IMPOSITION OF THE NURSING HOME FRANCHISE FEE.

Senator MOORE explained the Bill.

On motion of Senator MOORE, with unanimous consent, S. 232 was ordered to receive a third reading on Thursday, January 23, 2003.

On motion of Senator J. VERNE SMITH, with unanimous consent, the names of Senators VERDIN, ELLIOTT, BRANTON, O'DELL, SHORT, REESE, McGILL, SETZLER and MOORE were added as co-sponsors of S. 232.

S. 189 (Word version) -- Senators Courson, Knotts, Giese and Alexander: A CONCURRENT RESOLUTION TO INVITE THE NATIONAL COMMANDER OF THE AMERICAN LEGION, THE HONORABLE RONALD F. CONLEY, TO ADDRESS THE SOUTH CAROLINA GENERAL ASSEMBLY IN JOINT SESSION AT 12:30 P.M. ON TUESDAY, FEBRUARY 25, 2003.

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

S. 236 (Word version) -- Senators Gregory and Ryberg: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE BEAVER CREEK BRIDGE ON SOUTH CAROLINA HIGHWAY 97 IN KERSHAW COUNTY IN HONOR OF THE LATE SENIOR STATE TROOPER MICHAEL J. RAO AND TO INSTALL APPROPRIATE MARKERS OR SIGNS ON THE BRIDGE CONTAINING THE WORDS "SENIOR TROOPER MICHAEL J. RAO BRIDGE".

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

S. 93 (Word version) -- Senator Anderson: A BILL TO AMEND SECTION 44-6-155 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MEDICAID EXPANSION FUND, SO AS TO PROVIDE ADDITIONAL MONIES TO THE FUNDS; TO AMEND SECTION 12-21-620 OF THE 1976 CODE RELATING TO TAXES ON CIGARETTES AND TOBACCO PRODUCTS, SO AS TO INCREASE THE AMOUNTS OF THE TAXES; TO AMEND SECTIONS 12-21-1020, 12-21-1030, 12-21-1040, AND 12-21-1310 RELATING TO TAXES ON BEER AND WINE, SO AS TO INCREASE THE AMOUNTS OF THE TAXES; AND TO AMEND SECTIONS 12-33-230, 12-33-240, 12-33-245, 12-33-410, 12-33-420, 12-33-425, AND 12-33-460, RELATING TO TAXES ON ALCOHOLIC LIQUOURS, SO AS TO INCREASE THE AMOUNTS OF THE TAXES.

On motion of Senator JACKSON, with unanimous consent, the names of Senators JACKSON and PINCKNEY were added as co-sponsors of S. 93.

S. 6 (Word version) -- Senators McConnell, Kuhn, Mescher and Elliott: A BILL TO AMEND SECTION 30-2-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS USED IN THE FAMILY PRIVACY PROTECTION ACT OF 2002, SO AS TO CHANGE THE DEFINITION OF "COMMERCIAL SOLICITATION"; AND TO AMEND SECTION 30-2-50, RELATING TO THE PROHIBITION OF KNOWINGLY OBTAINING OR USING PERSONAL INFORMATION OBTAINED FROM A PUBLIC BODY FOR COMMERCIAL SOLICITATION DIRECTED TO A PERSON IN THIS STATE, SO AS TO SUBSTITUTE "STATE AGENCY" FOR "PUBLIC BODY" AND TO PROVIDE AN EXCLUSION.

On motion of Senator ALEXANDER, with unanimous consent, the name of Senator ALEXANDER was added as a co-sponsor of S. 6.

On motion of Senator McCONNELL, with unanimous consent, the deadline was extended until Tuesday, January 28, 2003, for adding co-sponsors to those Bills and Resolutions introduced on the first day of the legislative session.

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.

On motion of Senator McCONNELL, the Senate agreed that upon the conclusion of the Joint Assembly, the Senate would stand adjourned until 11:00 A.M. tomorrow.

At 2:57 P.M., on motion of Senator McCONNELL, the Senate receded from business until 6:40 P.M.

The Senate reassembled at 6:40 P.M. and was called to order by the PRESIDENT.

At 6:55 P.M., on motion of Senator MARTIN, the Senate receded from business for the purpose of attending the Joint Assembly.

At 7:00 P.M., the Senate appeared in the Hall of the House.

The PRESIDENT of the Senate called the Joint Assembly to order and announced that it had convened under the terms of H. 3356, a Concurrent Resolution adopted by both Houses.

The Honorable Mark Sanford and members of his party were escorted to the rostrum by Senators J. VERNE SMITH, THOMAS, O'DELL, JACKSON and KUHN and Representatives Barfield, Tripp, Bales, Breeland and Martin.

The PRESIDENT of the Senate introduced the Honorable Mark Sanford, Governor of the State of South Carolina.

The Governor addressed the Joint Assembly as follows:

Mr. Speaker, Mr. President, Ladies and Gentlemen of the General Assembly, Constitutional Officers, My fellow South Carolinians:

It's an honor to be with you tonight and I would say before I begin that the last few months have been an amazing voyage for our family. While I am in the process of recognizing people, I would like say that no one has played a larger role in this personal voyage than my wife, Jenny, South Carolina's new first lady. I would ask that you recognize and welcome her as well.

Our campaign from day one has been about change so that we raise income levels, education, and quality of life in South Carolina. Since November 5th we've been busy building a cabinet. I think we have assembled a great team, and I would ask that they stand and be recognized.

They are competent, share a genuine concern for our State, and represent a great diversity of perspectives.

Tonight, I am here to deliver my view on the state of our State.

I wish I could tell you that the state of our economy was strong, but Dickie Moorehead, working construction in the upstate, knows better, as does a plant worker in Anderson or Spartanburg.

I wish I was assuming leadership of a state whose budget is sound, but everyone in this Chamber knows it is not.

I wish I could tell you our education system is second to none, but too many children in South Carolina don't graduate or graduate without skills essential for success in the 21st century.

Despite these challenges, we have a great opportunity because if we address them properly, we can move South Carolina forward.

To make the right changes, as I said in my Inaugural, it is important that we begin by shooting straight. Our budget is a mess. There is a disconnection between the promises of government and our ability to pay for those promises.

I propose beginning to close that gap by not offering the normal state of the State speech, typically a laundry list of new programs regardless of the budget capacity to support them. To do that this year would be misleading. As you all know, we are struggling to pay for the promises already on the table.

Therefore, let me make this my first state of the State, one that focuses not on more money for programs but on the root causes. Root causes, the structure of our government, have contributed to the situation we find ourselves in: quite simply, I think they boil down to five things.

I. Do you have a voice in our state government? Said differently, do we have a government that is accountable?

II. Does our state government spend your money the way you do? For me, this goes straight back to the structure of government.

III. Are we competitive? In the information age, this is increasingly a question of education.

IV. Are there innovative things we can do to raise income and revive wealth creation in our State? Translated, it's the economy, stupid.

V. Man does not live on bread alone. Are we doing what is needed to maintain or improve our quality of life?

In some cases, more money would help in each of these areas, but it's not realistic in this budget year. So, I will refine my focus to structural issues. In fact, to make lasting change in any of these areas, we have to make structural change. So think of me as a carpenter. Just as a carpenter couldn't possibly repair a home without the right tools, raising income levels in our State will require government to use new tools and new approaches.

I want to repeat this: my hands are tied right now monetarily, so I'm not here tonight asking for new programs, but for new tools. The transforming effect of new tools on government could be told with a thousand examples, but here's one - Ataturk. Ataturk emerged as the national liberator of the Turks at the collapse of the Ottoman Empire. He ended the Ottoman tradition of theocracy and dynasty and instituted a Republic system. As he described it, he moved to a system of the people. He transformed the legal and educational systems, and made similar advances in housing, manufacturing, and agriculture. His reforms were so dramatic that within the decade, gross national product increased five-fold. In the similar vein, Argentina had the highest per capita income of any country on the globe in the 1920s, but because it didn't change its government structure, it failed to adapt to changes in the world. Its economy now shows it.

So in this year of budget crisis - structure, not spending, is the card we've been dealt. Let's make lemonade out of that lemon, because in an odd sort of way, we should be thankful because structural change is only possible when times are tough. Creative destruction occurs every day in the business marketplace. Change is constant in the world of technology. It has been ten years since we have addressed the structure of this government.

Here is what we propose:

I. Do South Carolinians have a voice in state government? For me, this is all about accountability.

1. I will do this several times tonight, but let me repeat something I said at the Inaugural. I believe in the concept of servant leadership. Too many people in government seem to think they are above regular folks. I will expect humility in the way each member of my team serves; this comes with recognizing that the taxpayer is boss. It is my goal that this tone grows from this administration to other parts of government.

2. Voices can only be heard, and solutions can only be reached, when we work together. Columbia has been a divided place for too long. I began the process of preparing for this first state of the State by having conversations with the leadership of the House and the Senate, the Black Caucus, and individual legislators. The Bible talks about being quick to listen. This administration will listen to every one of you, regardless of your party affiliation. For this reason, I will hold regular office hours and visits with the legislature, members, caucuses, and leadership alike.

3. Each of us holds a sacred trust; we are stewards. We are the divide between taxpayers and tax spenders. This administration's goal is to work with each one of you as we maintain and strengthen that trust. For this reason, I am proposing an executive order directing my agencies to end the practice of stonewalling the Legislature as you do your job of gathering information from them. Each of you may represent different constituencies, but at the end of the day, we all represent South Carolina. The free flow of information is vital if we are to make good decisions.

4. Let's sign the campaign finance reform bill that has been gathering dust in Columbia. My predecessor vetoed it. Wes Hayes, Doug Smith, Tommy Moore, and the Speaker worked with many of you on this. If given the chance, I'll sign it.

5. Just as we need disclosure of campaign finances, we should no longer hide expenditures at the Department of Commerce. Bob Faith is someone in whom I have, well, tremendous faith. He will work hard to create a more open and accountable Department of Commerce. But, we should also go one step further by passing the Speaker's bill that will require the disclosure of all special fund accounts at Commerce.

6. Last year South Carolina government spent $1.9 million lobbying itself! Governmental agencies hiring lobbyists to lobby for more taxpayer dollars creates an unacceptable cycle that fuels the growth of more government. Taxpayers can no longer afford this practice, and our budget can no longer accommodate it. Let's pass a bill similar to the one proposed by Representative Merrill to fix this.

7. In this state, too many people have to travel to the State House Complex to be heard. When I was in Congress, I held office hours throughout the district so that people didn't have to drive to Charleston. It can be intimidating to go through security and secretaries to meet "the Congressman." I wanted to meet folks on their territory at a spot familiar and comfortable to them, like the Wal-Mart, or the grocery or hardware store, where people could voice their concerns. I'll do the same thing as Governor.

I'll also host an "Open Door after 4" one evening each month in the governor's office so that folks who can't otherwise get off work can have personal access to me. This meeting is not with my staff, an intern, or an agency director; that's a visit with me. They won't be long visits, but anyone from anywhere in South Carolina will be able to sit down in the Governor's office with the Governor for a visit.

II. Does our state government spend your money the way you do? For me, this goes straight back to the issue of governmental structure.

I realize that for many of you, this is like watching paint dry, but its impact can be felt in the cost of South Carolina government - approximately thirty percent above the national average. If we are to get our economy going, we have to be more lean and efficient. Structural change can reduce that thirty percent number and continue what Carroll Campbell began in 1993.

1. There are still too many unelected boards and commissions controlling too many aspects of our lives. I think having the number of constitutional officers that we do dilutes the executive branch's ability to administer government effectively. Philosophically, I think every constitutional officer, with the exception of the Attorney General, should be appointed by the Governor. Send me a proposal to reduce the number of statewide-elected officials, and I'll accept it.

2. I'm troubled by the vagueness of authority in the governance of the five-member Budget and Control Board and the 1100 or so employees that comprise that agency. Remember the old adage that when too many are in charge, no one is. Work with us, and let's consolidate the bulk of these functions into a Department of Administration within the Governor's cabinet.

3. Too many positions in state government are classified. I recently learned that most of our newly elected constitutional officers, with the exception of the Governor, couldn't hire a single person to form their own team unless existing employees resign or retire. All of the positions in these offices are "protected or classified." This is crazy. In the business world, could you imagine giving a new manager a task, but allowing him no flexibility in his ability to tackle the job at hand? Whether it's the governor or a board or commission, I strongly believe that the next two tiers in each agency should also serve at the will of the agency director. I ask you to work with us in giving our government leaders, elected or appointed, the support they need to accomplish what we ask them to do.

4. On a related issue, isn't it time that we allow the Governor and Lt. Governor in this state to run on a ticket? These should not be separate and autonomous officers, but rather an extension of the same philosophy and beliefs. I would also ask that we strengthen the Lt. Governor's office so that he or she becomes a more active participant in the Executive branch.

Within this category of structure and spending, let me address the budget. The dragon in this building tonight is the budget. Little can be done about so many of the issues that we care about until we address the budget.

Allow me to pause here for a second and thank Chairmen Harrell and Leatherman for their help and time in exploring any number of budget issues during transition.

I'd say first and fundamentally, we are going to have to do what small business does every day -tighten our belts and look closely at priorities. We began that process at the Governor's Mansion this week. The mansion director was paid $80,000 a year, and we have decided to eliminate that position. We did not cut each person's salary by 5%. We looked for a role, a function that we thought we could do without. If every agency and department finds just one function they can do without, we can go a long way toward closing the budget divide before us. Over the months ahead, I will earnestly look at state government priorities with you. Here are a few of the principles this administration will employ in addressing the budget.

Let's begin with the home office - for us it's the Executive branch. We need to lead by example. For too long, the Executive branch has been exempt from the very balanced budget rules that this legislature holds sacred. Governors have sent you budgets devoid of the realities that you all have to contend with. I think that this practice needs to end. Send me a bill requiring that the Governor's proposed budget be balanced when it is sent to the legislature, and I'll sign it.

Then there is the issue of conservative forecasting at the BEA. As best I can tell, the system is gamed. When folks in government want more money to spend, the numbers are revised upward. We all know that the numbers are subject to political pressure, and I want to take the politics out of something as important as economic forecasting for our state. The average family cannot survive on a budget built on overly rosy predictions, and neither can our state. Please help me to work with Chairmen Leatherman and Harrell to find a way to get politics out of our forecasting processes.

Send me a bill that caps the growth of government realistically, requires a public justification for the creation of every new program, and requires cost projections for these programs, not just for the first year -- but also for the first five years, and I'll sign it.

This kind of thing has been done elsewhere. The legislature and Governor Bill Owens in Colorado came together and capped the growth of government to inflation and population growth. Passing this will protect us from government's normal propensity to spend every new dollar on the growth of existing programs or the creation of new ones. Granted, this hasn't been a problem over the last two years; you've been cutting budgets rather than raising them, but it is a problem that will return as our economy improves.

Allow me a few other budget thoughts.

You've realized some limited success in getting a few agencies to move toward performance budgeting. I'll help you to continue and broaden this effort by requiring every cabinet agency to adopt either zero-based or performance budgeting within the next four years.

Let this also be the year that we curb the annualization problem. No sensible family would use a one-time bonus to finance a new car - if they didn't have some other source for payments - not just this year's - but also each following year's payments. This principle should also hold true for our State.

In this vein, I think we ought to be much more methodical in our budget process. I'd ask you to consider the possibility of a biennial budget, a six-year financial plan for the state operating budget and the adoption of a true capital budgeting process with a ten year planning window.

Ronald Reagan is a man many of us in this room admire, and I would like to steal an idea of his that was an effective tool in the fight against waste and duplication in government - the Grace Commission. Some of the brightest minds in the business world took an exhaustive look at the workings of government and did indeed find things that could be done better. We need to do this in South Carolina, and I will ask for this commission to begin its work immediately after Memorial Day.

III. Are we competitive? In the information age, this has increasingly become a question of education.

There are a number of things we could do to improve education that do cost money, but once again because of the budget crisis we are in, I want to stay true to what I promised at the beginning of this speech, and focus on structure.

We are in a tough spot. Providing a quality education for South Carolina's children is this State's most important responsibility. I applaud the House, the Senate, Superintendent of Education Inez Tennenbaum, and former Governor Hodges for leading a renewed emphasis on education in our State over the past four years. I also want to applaud the work of teachers. The fact that I can remember Clyde Hincher or Lilian Spears speaks volumes about the impact teachers have in every student's life- for the rest of that student's life. Yet education is more than half of the state budget, and if you are in a budget crisis it's going to be tough. So I will say just a couple of things.

I will work with Inez, our Superintendent of Education, to make sure that the money is indeed going to high priority areas - teacher quality and early childhood education are two on my list.

There are a few structural things we could do:

1. Block grants. What are the most efficient uses of our education dollars in each of our State's school districts? I am the first to admit that I don't know. Each district has unique needs and challenges. Currently, the state provides about $1 billion of your tax dollars to local districts through a confusing 80 or so spending categories. How can we hold local administrators accountable for their PACT scores without giving them the authority to spend their funding where they see fit?

We think you could send the same dollars in a much more simplified system using just six different categories of block grants.

2. Conduct grades, in-school suspensions, and boot camps. On the last two we will try to work with other agencies in my cabinet to find creative solutions. On conduct, why not arm parents with a report card so that they know whether or not Junior is behaving in class? Too many teachers in South Carolina are forced to baby-sit, not teach, and I think that's wrong. It's wrong not only for our teachers, but for our students as well because often times the behavior of a handful robs the rest of the class of opportunities to learn.

Discipline in our behavior toward each other and toward those in authority has as much to do with our success as our academic performance in reading or math. I say this because if you learn control in your behavior, you can also become disciplined in learning math or reading skills. I will look at advancing any idea that might better help a teacher to be sovereign of the classroom.

The fact is that school crime has increased 26 percent during the past four years.

Unfortunately, this problem was highlighted just last Thursday in Sumter when a fourteen year old, a twelve year old, and an eleven year old allegedly tried, at gunpoint, to steal school board member Iona Dwyer's car at 11 A.M. in the elementary school parking lot. It is insane to believe that people are expected to teach or learn in this kind of environment.

3. In the campaign, there were many misrepresentations about my proposals for increasing parents' choices for their children's education. Every one of the ideas we advanced had been tried in another state, and had worked to improve education and achievement. This ultimately ought to be the test of any idea of educational choice. Charter schools will be our first step, as there are currently only 14 in the state. As a result, we are leaving millions of dollars in available federal matching funds on the table.

4. On the issue of higher education, we do not have the resources to allow every institution to be everything to everybody. Universities, colleges, and technical colleges are all a part of the formula for raising income levels in South Carolina. But, it must be a formula that involves more focused roles, better coordination, less duplication, and better responsiveness to the workforce needs of this State. I'm open to how this should be done, but I am committed to working with each one of you in seeing that it will be done.

In all of these things, my goal will be simple: to improve the education of our children. But, I want to go beyond simply saying that I'm for education. I want to work with each one of you to better education in our State.

IV. Are there innovative things we can do to raise income and revive wealth creation in our state? Translated, it's the economy, stupid.

The answer is yes. Bob Faith has been charged with a tremendous responsibility in trying to help us set a better playing field for all businesses in South Carolina. He will do well. One of many ideas he has brought to my attention is the creation of a small business Ombudsman in Commerce. Small businessmen and women, the backbone of our state's economy, have never had this kind of advocate before in Commerce.

We need a focus in the whole administration on jobs and wealth creation, and I will expect not just the Secretary of Commerce, but every agency head to ask what every program or function does for the business climate in South Carolina.

We need a Governor who will focus on business development the way Carroll Campbell did. While I have no illusion of filling his shoes, I will follow in his footsteps.

Finally, I don't think we can be competitive as a state in attracting investment and new jobs by being midrange in taxes. Economist Richard Vedder completed a fascinating study showing how people in America have literally walked from high tax states to low tax states - and in the process taken jobs and investment with them. To increase the number, and quality of jobs in our State, we have to be a low-tax state. This was one of the key premises behind my income tax proposal. The other was tied to the need to change the structure of South Carolina's tax system, so that it rewards the efforts of the small businessman and the productive behaviors of savings and investment. The income tax system is a tax on the generation of wealth, and we need to generate more wealth in this state.

V. Man does not live on bread alone. Are we doing what is needed to maintain or improve quality of life in South Carolina? I recognize this term means a lot of things to different people in our State.

1. To some, a better quality of life means not waiting in a line for hours at a DMV office. This ought to be a simple and basic function of state government. I know that many of you in this Chamber worked hard on this issue. J.T. Gandolfo, Chairman of my DMV Task Force, did a great job of researching this problem, as did Chairman Townsend's House DMV Committee. Unfortunately, their findings present a gloomy picture. If left unchanged, the lines will grow longer this summer at DMV offices across our state. The technology is flawed, and the culture requires change.

The problem also highlights the lunacy of our present government structure. Let's pretend these were not DMV offices, but instead a chain of carwashes. After a visit to your facilities customers, leave irate because they were forced to wait for hours, or sometimes only get half a carwash and are told to come back for the other half, or better still, are occasionally told that the carwash has lost their car. Can you imagine anyone in the business world leaving the existing management team in place? Yet, this is the card I'm dealt. I can't replace the head of Public Safety or the head of DMV who works for him. How can we ever get good government in South Carolina with this type of accountability?

In the meantime, I ask that you join with me in adopting immediate measures to thwart the crisis headed our way. As an example, we propose extending the renewal period on licenses from 5 to 10 years, the licensing of new cars by the auto dealers who sell them, and people not having to make two trips, to the DMV and the Auditors office, when one trip would suffice. There are many other ideas, but the point is that many immediate steps could be taken and we ask for your help over the months ahead.

2. For others, a better quality of life means a health care safety net that is truly safe. Medicaid spends over 3 billion dollars each year, and it is currently in crisis. It will require about a $150 million increase in funds just to keep the existing programs going. One solution is to simply raise taxes. I think this action alone would be a mistake because simply raising taxes is no more than a band-aid for a patient in critical need of surgery. We have a duty to work together to find a solution not just for this year, but also for subsequent years.

Each of you knows my aversion to tax increases. Like many of you, I have pledged not to increase taxes. Polls apparently say the tobacco tax is palatable, if not popular. The polls do not change my mind, nor do they release me from my pledge. Any specific tax increase should be accompanied by a plan for a corresponding decrease of our tax burden in other areas. Not surprisingly, I have specific thoughts on decreasing the income tax with any proposal to increase the cigarette tax to fund Medicaid. This may well be an acceptable tax substitution as the federal government pays 70% of Medicaid while South Carolinians pay 100% of the income tax.

Let's also look at Medicaid reforms: eligibility, better linkage with non-profit and faith-based institutions, and a different approach to the way that Medicaid provides service.

Medicaid doesn't look at health in any sort of long-term context, but rather seems to serve as an insurance agency that simply pays to treat symptoms. I think it's very important that we implement a system wherein Medicaid patients have medical homes and primary care physicians that look at their health needs and the causes of those health needs.

There's something wrong with a Medicaid system that paid for $26 million in visits to emergency rooms last year, though in many cases care could have been provided in a setting less expensive for the taxpayer and less institutional for the patient.

There is something wrong with a Medicaid system that will pay for a series of different specialists' opinions or specialty procedures, but doesn't pay for significant preventive services.

There is something wrong with a Medicaid system that will pay for a $1500 a year drug plan to reduce cholesterol for twenty years, but it won't pay for an ongoing $200 a year nutritional plan that would reduce cholesterol by an even greater amount.

We know that a diet high in saturated fat can lead to coronary heart disease. Well, we have plaque in the Medicaid blood stream. Before we ask for more blood to go through those constricted arteries, we owe it to the taxpayer, patient, and provider alike to reform the system. Concurrent with any proposal for more money, there must be reform. If we need waivers for more flexibility, I will go to the mat in Washington to get them.

3. Public safety: DNR, SLED, DPS troopers, corrections officers, they are all part of law enforcement. The men and women who make up these organizations are unsung heroes because of the risks they take for each of us. It's important that we reward those risks when our budget rebounds.

4. While on the subject of safety, let me say something about driving and drinking in South Carolina. We have a problem. Road deaths are about double the national average. By moving to a .08% blood alcohol standard, we can save lives, avoid losing $60 million of federal money, and stay consistent with a conservative philosophy that says your rights end when they begin to infringe upon mine. Some would say let's handle this by confiscating the car of a drunk driver. I say let's go .08% and confiscate the car. Send me a bill and I'll sign it.

5. Since I mentioned the issue of state workers a moment ago, let me add this. All state workers have been hit hard over the last few years. This isn't the budget year to promise that big pay raises are coming. But, it is important we do something to recognize the way each one of them contributes to quality of life in South Carolina.

I propose making their retirement more secure. Let's move the fixed income portfolio for state employees out of the Treasurer's office and into its own trust fund. Monies managed and controlled by the State are monies that can be borrowed in tough times. None of us can serve two masters, yet the state treasurer is placed in the unfortunate position of trying to do just that. This current policy also creates a fragmented investment process, and neither of these things is good for a state government retiree in South Carolina. It's not the raise we all would like, but it does a better job of investing $15 billion of their retirement money. It is, for the moment, a way of saying thank you for working through these tough times.

6. Ultimately, the biggest part of quality of life is the way that we look and feel differently as a State. I believe it's a point of profound competitive advantage in attracting participants in all business arenas - but particularly in the technology revolution taking place all around us. We will propose many ideas whether it's making sure we stay true to our commitment to the Conservation Bank, or looking at the way we build roads. But, let me give you a perfect example of what I'm talking about...neighborhood schools.

I believe very strongly in the concept of neighborhood schools- and we need to make these schools a much bigger part of the educational effort in South Carolina. Our current policies encourage the construction of massive, isolated schools that are inaccessible to the communities they serve. Rather than walking or biking to their neighborhood school, many students spend more time stuck on buses than they do with their families. And perhaps worst of all, many children are ignored in these large schools.

Anonymity and education don't go together. By the Educational Oversight Committee's own analysis, one of the keys to improving education is a sense of community where teacher, student, and parent all feel a sense of ownership in their school.

In addition to depriving many students of a quality education, these remotely sited mega schools also accelerate developmental sprawl into our rural areas, and what comes with it: increased car trips, lengthened bus routes, and a disappearing countryside.

Please help me to bring back smaller community-centered schools. First, let's work with the State Department of Education to eliminate minimum acreage requirements so that school boards have greater flexibility in site selection.

Second, let's enact legislation that caps student populations for our future facilities. Florida just did this, limiting elementary schools to 500 students, middle schools to 700 students, and high schools to 900 students. I ask that you send me similar legislation.

Our children are the heart of this great State. Let's allow their schools to be the hearts of our communities.

We've covered a lot of ground tonight but the key to moving any of these ideas forward through the legislative process lies in the courage to act. In this regard, may I read to you from part of a note sent to me by a good friend?

A letter from underway, after the tragedy

Below is an e-mail from a young ensign aboard the USS Winston Churchill to his parents (Churchill is an Arleigh Burke class AEGIS guided missile destroyer, commissioned March 10, 2001, and is the only active U.S. navy warship named after a foreign national).

Saturday, September 14, 2001

Dear Dad,

We are still at sea. The remainder of our port visits have all been cancelled. We have spent every day since the attacks going back and forth within imaginary boxes drawn in the ocean, standing high security watches, and trying to make the best of it. We have seen the articles and the photographs, and they are sickening. Being isolated, I don't think we appreciate the full scope of what is going on back home, but we are definitely feeling the effects.

About two hours ago, we were hailed by a German Navy destroyer, Lutjens, requesting permission to pass close by our port side. Strange, since we're in the middle of an empty ocean but the captain acquiesced and we prepared to render them honors from our bridgewing. As they were making their approach, our conning officer used binoculars and announced that the Lutjens was flying not the German, but the American flag. As she came alongside us, we saw the American flag flying half-mast and her entire crew topside standing at silent, rigid attention in their dress uniforms.

They had made a sign that was displayed on her side that read "We Stand By You." There was not a dry eye on the bridge as they stayed alongside us for a few minutes and saluted. It was the most powerful thing I have seen in my life. The German Navy did an incredible thing for this crew, and it has truly been the highest point in the days since the attacks. It's amazing to think that only half-century ago things were quite different.

After Lutjens pulled away, the Officer of the Deck, who had been planning to get out later this year, turned to me and said, "I'm staying Navy."

I'll write you when I know more about when I'll be home but this is it for now.

Love you guys.

None of us know who the German officer in command of the Lutjens was, but every one of us knows he's a leader. I'm sure it wasn't in the German Naval manual to take down the German flag and fly an American flag over a German Naval destroyer. I'm sure it wasn't standard practice to ask his men to don their dress uniforms, go topside, and salute the men and women onboard the American vessel alongside her. I'm sure it was against protocol to paint a sign and hang it from the edge of the ship. He took risks. To me that is what leadership is all about. Over the months ahead, I will ask you to lead. I will ask you to take risks, because leadership is impossible without it. Most of all, I will ask you to set aside the manual of how it was done before, because frankly, there is no manual for the path before us. But working together, I know we can chart a course that will improve the life of every South Carolinian. I look forward to your help. I ask for your prayers. God bless our great State, and good night.

The purpose of the Joint Assembly having been accomplished, the PRESIDENT declared it adjourned, whereupon the Senate returned to the Chamber and was called to order by the PRESIDENT.

Having received a favorable report from the Committee on Labor, Commerce and Industry, the following appointment was confirmed in open session:

Initial Appointment, Secretary of the Department of Commerce, with term coterminous with the Governor

Robert A. Faith, 107 Live Oak Drive, Mt. Pleasant, S.C. 29464 VICE Charles S. Way

Having received a favorable report from the Beaufort County Delegation, the following appointments were confirmed in open session:

Reappointment, Beaufort County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Joseph N. Kline, 42 Kline Circle, Seabrook, S.C. 29940

Reappointment, Beaufort County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Charles L. Smith, P. O. Box 840, Bluffton, S.C. 29910

Having received a favorable report from the Clarendon County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Robert James Aycock III, 301 North Meadow Drive, Manning, S.C. 29102 VICE Annelle G. Powell

Initial Appointment, Clarendon County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Sharon B. Ridgeway, 204 Oakland Street, Manning, S.C. 29102 VICE Carl M. Evans

Initial Appointment, Clarendon County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Johnny L. Wilson, #9 Gerald Ave., Manning, S.C. 29102 VICE James Dingle

Having received a favorable report from the Greenwood County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Greenwood County Magistrate, with term to commence January 16, 2003, and to expire April 30, 2003

Joe C. Cantrell, 215 Johns Creek Road, Hodges, S.C. 29653

Initial Appointment, Greenwood County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Jeffrey A. Constant, 131 Creek Road East, Greenwood, S.C. 29646

Having received a favorable report from the Lexington County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Lexington County Magistrate, with term to commence July 1, 2002, and to expire April 30, 2003

Jamie T. Lucas, 351 Kitti Wake Drive, West Columbia, S.C. 29170

Initial Appointment, Lexington County Magistrate, with term to commence July 1, 2002, and to expire April 30, 2003

Gary S. Morgan, P. O. Box 1632, Lexington, S.C. 29071

Having received a favorable report from the Horry County Delegation, the following appointment was confirmed in open session:

Reappointment, Myrtle Beach Air Force Base Redevelopment Authority, with term to commence June 30, 2002, and to expire June 30, 2006

Delegation

Charles A. Stuart, Jr., 7878 Old Reaves Ferry Rd., Conway, S.C. 29526

Having received a favorable report from the Richland County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Richland County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003

George Anderson Surles, 113 Bostwick Ridge, Columbia, S.C. 29229 VICE William T. Smith

Having received a favorable report from the Spartanburg County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Spartanburg County Board of Voter Registration, with term to commence March 15, 2002, and to expire March 15, 2004

Robert G. Hamilton, 1225 Old Mill Road, Campobello, S.C. 29322 VICE George Abernathy

Having received a favorable report from the Sumter County Delegation, the following appointments were confirmed in open session:

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Elizabeth Givens, 104 Council Street, Sumter, S.C. 29150 VICE Mary Katherine Herbert

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Bryan Keith Griffin, 640 Chickasaw, Sumter, S.C. 29150 VICE George McFadden

Initial Appointment, Sumter County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

Kathy Ward, 23 Robbins Ave., Sumter, S.C. 29150 VICE Warrren Curtis

Having received a favorable report from the Union County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Union County Magistrate, with term to commence April 30, 1999, and to expire April 30, 2003

Anita Pecko Whitney, 3822 Whitmire Highway, Union, S.C. 29379 VICE Sarah M. Smith

Having received a favorable report from the Williamsburg County Delegation, the following appointment was confirmed in open session:

Initial Appointment, Williamsburg County Magistrate, with term to commence April 30, 2002, and to expire April 30, 2006

William Ellerbe Ackerman, Jr., 1609 Seaboard Rd., Andrews, S.C. 29510

On motion of Senators RICHARDSON, ALEXANDER, ANDERSON, BRANTON, COURSON, DRUMMOND, ELLIOTT, FAIR, FORD, GIESE, GLOVER, GREGORY, GROOMS, HAWKINS, HAYES, HOLLAND, HUTTO, JACKSON, KNOTTS, KUHN, LAND, LEATHERMAN, LEVENTIS, MALLOY, MARTIN, MATTHEWS, McCONNELL, McGILL, MESCHER, MOORE, O'DELL, PATTERSON, PEELER, PINCKNEY, RANKIN, RAVENEL, REESE, RITCHIE, RYBERG, SETZLER, SHORT, J. VERNE SMITH, THOMAS, VERDIN and WALDREP, with unanimous consent, the Senate stood adjourned in memory of the Honorable JAMES M. WADDELL, JR., 80, former Senator, colleague and friend from Beaufort, S.C. Senator WADDELL served in the state legislature for 35 years, having left the Senate in 1992 as Chairman of the Senate Finance Committee to accept an appointment to the South Carolina Tax Commission.

At 7:55 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M.

This web page was last updated on Wednesday, June 24, 2009 at 3:43 P.M.