Indicates Matter Stricken
Indicates New Matter
The Senate assembled at 11:15 A.M., the hour to which it stood adjourned, and was called to order by the PRESIDENT.
A quorum being present, the proceedings were opened with a devotion by the Chaplain as follows:
Beloved, as we come to our annual Joint Session with the clients and the folks of the Easter Seals Society, hear a word from the Book of Acts, Chapter 4:9:
"We are being examined today concerning a good deed done to a crippled, by what means this man has been healed."
Let us pray.
Father of all MERCIES, we do celebrate the healing and the progress being made by our friends in the area of health delivery.
We rally the faithful many who are sharing their concern, their money and their prayers that the crippled may walk, the disabled may work and all may live in hope... remembering the Man of Galilee who went about healing and preaching the Kingdom of God.
Amen!
The following entry was inadvertently omitted from the Journal of Tuesday, March 25, 2003:
S. 209 (Word version) -- Senators McConnell and Ford: A BILL TO AMEND SECTION 20-7-952, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INITIATION OF ACTIONS TO ESTABLISH PATERNITY, SO AS TO INCLUDE THE PRESUMED, INFERRED, OR ALLEGED LEGAL FATHER AS ONE OF THE INDIVIDUALS WHO MAY INSTITUTE SUCH ACTIONS.
On motion of Senator McCONNELL, with unanimous consent, the Bill was read the second time, passed and ordered to a third reading with notice of general amendments.
The PRESIDENT appointed Senators GIESE, WALDREP, RITCHIE, RAVENEL and MALLOY to escort the state Easter Seals representatives and their parents to the House of Representatives for the Joint Assembly.
At 11:25 A.M., on motion of Senator McCONNELL, the Senate receded from business for the purpose of attending the Joint Assembly.
At 11:30 A.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 a Concurrent Resolution adopted by both Houses:
S. 484 (Word version) -- Senator Giese: A CONCURRENT RESOLUTION TO DESIGNATE WEDNESDAY, MARCH 26, 2003, AS "CREATING SOLUTIONS FOR DISABILITIES DAY", TO ENDORSE THE "B.A.C.-COFFEE DAY FOR PEOPLE WITH SPECIAL NEEDS" PROJECT AND OTHER OUTSTANDING PROGRAMS OF EASTER SEALS SOUTH CAROLINA, AND TO PROVIDE FOR A JOINT SESSION OF THE GENERAL ASSEMBLY IN THE HALL OF THE HOUSE OF REPRESENTATIVES AT 11:30 A.M. ON WEDNESDAY, MARCH 26, 2003, AT WHICH TIME THE STATE EASTER SEALS REPRESENTATIVES AND THEIR PARENTS WILL BE PRESENTED TO THE GENERAL ASSEMBLY.
The State Easter Seals Representatives, their parents and members of their party were escorted to the rostrum by Senators GIESE, WALDREP, RITCHIE, RAVENEL and MALLOY and Representatives Neilson, Cooper, Limehouse, Harrison, Lucas and Leach.
The PRESIDENT then recognized Senator GIESE.
Senator GIESE introduced the following members who escorted the State Easter Seals Representatives and guests:
Senator RAVENEL and Representative Limehouse escorted Hunter Powell, son of Jill and Scott Powell of Mt. Pleasant;
Senator MALLOY and Representatives Neilson and Lucas escorted Spencer Kelly, son of Dawn and Chuck Kelly of Darlington;
Senator MALLOY and Representatives Neilson and Lucas escorted Whitney Cranford, daughter of Kim and Brenda Cranford of Hartsville;
Senator WALDREP and Representative Cooper escorted Brandon Stone, son of Jean Gleaton of Williamston;
Senator RITCHIE and Representative Lee escorted Crockett Buchanan, son of Sherry Buchanan of Spartanburg; and
Senator GIESE escorted McKenzie Kittrell, daughter of Gwen and Alan Kittrell of Columbia.
Senator GIESE also recognized Ellis Jackson, Chairman, Easter Seals South Carolina Board of Directors; Lt. Jerry Waldrop, President of the South Carolina Law Enforcement Officers Association; Alisa Mosley, Executive Director of the South Carolina Law Enforcement Officers Association; Thomas L. Sponseller, Executive Director of the South Carolina Restaurant Association and David Miller, State President of the South Carolina Restaurant Association who have worked so hard to make the 2003 B.A.C. - Coffee Day for People with Special Needs campaign such a success.
The purposes of the Joint Assembly having been accomplished, the PRESIDENT declared it adjourned, whereupon the Senate returned to its Chamber and was called to order by the PRESIDENT.
At 11:55 A.M., on motion of Senator McCONNELL, the Senate receded from business until 2:00 P.M.
The Senate reassembled at 2:00 P.M. and was called to order by the PRESIDENT.
The PRESIDENT called for Petitions, Memorials, Presentments of Grand Juries and such like papers.
The following were received and referred to the appropriate committees for consideration:
Document No. 2810
Agency: Department of Labor, Licensing and Regulation
SUBJECT: Fee Structures for Annual Permits and Liability Insurance Requirements
Received by Lieutenant Governor March 25, 2003
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2815
Agency: Department of Health and Environmental Control
SUBJECT: R.30-4 Decisions on a Permit (Coastal Zone Management)
R. 61-30 Environmental Protection Fees
Received by Lieutenant Governor March 25, 2003
Referred to Agriculture and Natural Resources Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2816
Agency: Department of Health and Environmental Control
SUBJECT: Environmental Protection Fees
Received by Lieutenant Governor March 25, 2003
Referred to Agriculture and Natural Resources Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2818
Agency: Department of Labor, Licensing and Regulation
SUBJECT: Inspections and Fees
Received by Lieutenant Governor March 25, 2003
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2824
Agency: Department of Health and Environmental Control
SUBJECT: Environmental Protection Fees
Received by Lieutenant Governor March 25, 2003
Referred to Agriculture and Natural Resources Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2825
Agency: Department of Health and Environmental Control
SUBJECT: X-Rays (Title B)
Received by Lieutenant Governor March 25, 2003
Referred to Medical Affairs Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
Document No. 2826
Agency: Department of Revenue
SUBJECT: Machines
Received by Lieutenant Governor March 25, 2003
Referred to Finance Committee
Legislative Review Expiration July 23, 2003
(Subject to Sine Die Revision)
The following were received:
Document No. 2739
Agency: Department of Labor, Licensing and Regulation
Board of Chiropractic Examiners
SUBJECT: Professional Practices
Received by Lieutenant Governor January 14, 2003
Referred to Medical Affairs Committee
Withdrawn and Resubmitted March 25, 2003
Document No. 2784
Agency: Department of Health and Environmental Control
SUBJECT: Standards for Licensing Ambulatory Surgical Facilities
Received by Lieutenant Governor January 28, 2003
Referred to Medical Affairs Committee
Withdrawn and Resubmitted March 25, 2003
Senator DRUMMOND introduced Dr. Stanley Baker, Jr. of Greenwood, S.C., Doctor of the Day.
At 3:20 P.M., Senator VERDIN requested a leave of absence beginning at 6:00 P.M. today and lasting until Noon on Tuesday, April 1, 2003.
At 5:30 P.M., Senator RYBERG requested a leave of absence beginning at 7:00 P.M. tonight until April 1, 2003, at 8:00 A.M.
Senator GLOVER rose for an Expression of Personal Interest.
Senator FORD rose for an Expression of Personal Interest.
Senator KUHN rose for an Expression of Personal Interest.
S. 97 (Word version) -- Senators McConnell, Mescher, Grooms, Ravenel, Ford and Branton: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-53-425 SO AS TO PROVIDE THAT TRIDENT TECHNICAL COLLEGE IS AUTHORIZED TO ESTABLISH A FOUR-YEAR CULINARY CURRICULUM PROGRAM AND AWARD BACCALAUREATE DEGREES IN CULINARY ARTS FOR STUDENTS GRADUATING FROM THIS PROGRAM.
On motion of Senator MATTHEWS, with unanimous consent, the names of Senators MATTHEWS and KUHN were added as co-sponsors of S. 97.
S. 462 (Word version) -- Senators Giese, Leatherman, Setzler, Martin, Alexander, Holland, Ravenel, McConnell, J. Verne Smith, Ford, Hayes, Mescher, Knotts, Ryberg, Drummond, Elliott, Hutto, Patterson, Courson, Waldrep, Anderson, Kuhn, Ritchie, Verdin, Richardson and Peeler: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 59 TO TITLE 59 SO AS TO ENACT THE SOUTH CAROLINA EDUCATION AND ECONOMIC DEVELOPMENT ACT TO AMEND SECTION 59-17-135, RELATING TO CHARACTER EDUCATION, SO AS TO INCORPORATE THE CHARACTER TRAITS OF THE FAMILY RESPECT ACT INTO THIS EDUCATIONAL COMPONENT; TO AMEND SECTION 59-18-900, AS AMENDED, RELATING TO SCHOOL REPORT CARDS, SO AS TO EXPAND THE CONTENT OF THE REPORT CARD TO INCLUDE, AMONG OTHER THINGS, REPORTS ON COMPLIANCE WITH THIS ACT AND THE CHARACTER EDUCATION ACT AND DROPOUT REDUCTION DATA; AND TO REPEAL ACT 450 OF 1994 AND SECTION 59-52-95 RELATING TO THE SOUTH CAROLINA SCHOOL-TO-WORK TRANSITION ACT OF 1994.
On motion of Senator GLOVER, with unanimous consent, the name of Senator GLOVER was added as a co-sponsor of S. 462.
Columbia, S.C., March 26, 2003
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.24, H. 3698 by a vote of 5 to 0:
(R24, H3698 (Word version)) -- Reps. Walker, Anthony, Davenport, Lee, Littlejohn, Mahaffey, Sinclair, W.D. Smith and Talley: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAYS MISSED ON JANUARY 17, 23, AND 24, 2003, BY THE STUDENTS OF THE SEVEN SCHOOL DISTRICTS IN SPARTANBURG COUNTY WHEN THE SCHOOLS WERE CLOSED DUE TO INCLEMENT WEATHER CONDITIONS ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP; AND TO ALLOW EMPLOYEES OF THE SEVEN SCHOOL DISTRICTS OF SPARTANBURG COUNTY VOLUNTARILY TO TAKE UP TO FOUR DAYS OF UNPAID LEAVE.
Very respectfully,
Speaker of the House
Received as information.
(R24, H3698 (Word version)) -- Reps. Walker, Anthony, Davenport, Lee, Littlejohn, Mahaffey, Sinclair, W.D. Smith and Talley: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAYS MISSED ON JANUARY 17, 23, AND 24, 2003, BY THE STUDENTS OF THE SEVEN SCHOOL DISTRICTS IN SPARTANBURG COUNTY WHEN THE SCHOOLS WERE CLOSED DUE TO INCLEMENT WEATHER CONDITIONS ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP; AND TO ALLOW EMPLOYEES OF THE SEVEN SCHOOL DISTRICTS OF SPARTANBURG COUNTY VOLUNTARILY TO TAKE UP TO FOUR DAYS OF UNPAID LEAVE.
The veto of the Governor was taken up for immediate consideration.
Senator RITCHIE moved that the veto of the Governor be overridden.
The question was put: Shall the Act become law, the veto of the Governor to the contrary notwithstanding?
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 necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.
Columbia, S.C., March 26, 2003
Mr. President and Senators:
The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.23, H. 3672 by a vote of 7 to 0:
(R23, H3672 (Word version)) -- Reps. Walker, Mahaffey, Talley and Littlejohn: AN ACT TO PROVIDE FOR THE PROCEDURES AND REQUIREMENTS TO MAKE UP DAYS LOST BECAUSE OF WEATHER OR OTHER DISRUPTIONS IN SPARTANBURG COUNTY SCHOOL DISTRICTS 1, 2, 3, 4, 5, 6, AND 7.
Very respectfully,
Speaker of the House
Received as information.
(R23, H3672 (Word version)) -- Reps. Walker, Mahaffey, Talley and Littlejohn: AN ACT TO PROVIDE FOR THE PROCEDURES AND REQUIREMENTS TO MAKE UP DAYS LOST BECAUSE OF WEATHER OR OTHER DISRUPTIONS IN SPARTANBURG COUNTY SCHOOL DISTRICTS 1, 2, 3, 4, 5, 6, AND 7.
The veto of the Governor was taken up for immediate consideration.
Senator RITCHIE moved that the veto of the Governor be overridden.
The question was put: Shall the Act become law, the veto of the Governor to the contrary notwithstanding?
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 necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.
S. 502 (Word version) -- Senator Rankin: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION MOVE A PORTION OF THE PROJECTED "CAROLINA BAYS PARKWAY" IN HORRY COUNTY BETWEEN HIGHWAY 544 AND HIGHWAY 501 THREE HUNDRED YARDS TO THE NORTHWEST TOWARDS CONWAY TO AVOID THE HUNTERS RIDGE COMMUNITY.
Senator RANKIN asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.
There was no objection.
The Resolution was recalled from the committee.
Senator RANKIN asked unanimous consent to take the Resolution up for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Resolution, the question being the adoption of the Resolution.
Senator RANKIN asked unanimous consent to adopt the Resolution.
There was no objection.
The Concurrent Resolution was adopted and ordered sent to the House.
H. 3263 (Word version) -- Rep. Viers: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION MOVE A PORTION OF THE PROJECTED "CAROLINA BAYS PARKWAY" IN HORRY COUNTY BETWEEN HIGHWAY 544 AND HIGHWAY 501 THREE HUNDRED YARDS TO THE NORTHWEST TOWARDS CONWAY TO AVOID THE HUNTERS RIDGE COMMUNITY.
Senator RANKIN asked unanimous consent to make a motion to recall the Resolution from the Committee on Transportation.
There was no objection.
The Resolution was recalled from the committee.
Senator RANKIN asked unanimous consent to take the Resolution up for immediate consideration.
There was no objection.
The Senate proceeded to a consideration of the Resolution, the question being the adoption of the Resolution.
Senator RANKIN asked unanimous consent to adopt the Resolution.
There was no objection.
The Concurrent Resolution was adopted and ordered returned to the House.
The following were introduced:
S. 514 (Word version) -- Senator Holland: A SENATE RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SENATE UPON THE DEATH OF STAFF SERGEANT JASON C. HICKS ON SUNDAY, MARCH 23, 2003, AND CONVEY THEIR DEEPEST SYMPATHY TO HIS FAMILY AND MANY FRIENDS.
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The Senate Resolution was adopted.
S. 515 (Word version) -- Senators Grooms, Branton, Matthews and Ritchie: A CONCURRENT RESOLUTION TO CONGRATULATE THE LOURIE THEATER OF ST. GEORGE, THEIR DISTINGUISHED BOARD OF DIRECTORS, CONTRIBUTORS, SUPPORTERS, PERFORMERS, FRIENDS AND PATRONS, FOR THEIR MANY CONTRIBUTIONS AND RESOUNDING SUCCESS IN RENOVATION AND PRESERVATION OF THE LOURIE THEATER, TO COMMEND THEM FOR THEIR TREMENDOUS GIFT OF THEATER, PERFORMING ARTS, AND CULTURAL EVENTS TO THE PEOPLE OF ST. GEORGE AND THE SURROUNDING AREA, AND TO WISH THEM EVERY SUCCESS IN ALL OF THEIR FUTURE ENDEAVORS.
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The Concurrent Resolution was adopted, ordered sent to the House.
S. 516 (Word version) -- Senator McGill: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO EXTEND THE DEFINITION OF "NEW JOB" TO INCLUDE JOBS MAINTAINED WHEN AN UNRELATED ENTITY ACQUIRES SUBSTANTIALLY ALL OF THE ASSETS OF A COMPANY OPERATING UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE, MORE THAN FIVE HUNDRED INDIVIDUALS ARE HIRED WHO WERE LAST EMPLOYED BY THE BANKRUPT TAXPAYER, AND THE JOBS ARE IN A MANUFACTURING FACILITY LOCATED IN A COUNTY CLASSIFIED AS DISTRESSED OR LEAST DEVELOPED.
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Read the first time and referred to the Committee on Finance.
S. 517 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-5-1705 OF THE 1976 CODE, RELATING TO CATCH LIMITS, TO ALLOW THE BOARD OF NATURAL RESOURCES TO ESTABLISH CATCH AND POSSESSION LIMITS FOR SALTWATER FINFISH, AND TO AMEND SECTION 50-5-1710 OF THE 1976 CODE, RELATING TO SIZE LIMITS, TO ALLOW THE BOARD OF NATURAL RESOURCES TO ESTABLISH MINIMUM SIZE LIMITS FOR SALTWATER FINFISH.
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Read the first time and referred to the Committee on Fish, Game and Forestry.
S. 518 (Word version) -- Senator Verdin: A BILL TO AMEND ARTICLE 3 OF CHAPTER 23 OF TITLE 16, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MACHINE GUNS, SAWED-OFF RIFLES, AND SAWED-OFF SHOTGUNS, SO AS TO MAKE TECHNICAL CHANGES; AND TO AMEND ARTICLE 5 OF CHAPTER 23 OF TITLE 31, RELATING TO THE USE AND POSSESSION OF MACHINE GUNS, SAWED-OFF SHOTGUNS, AND SAWED-OFF RIFLES, SO AS TO PROVIDE THAT THE ARTICLE DOES NOT APPLY TO ANY PERSON AUTHORIZED TO POSSESS THESE WEAPONS BY THE UNITED STATES DEPARTMENT OF THE TREASURY, THE BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, OR ANY OTHER FEDERAL AGENCY EMPOWERED TO GRANT THIS AUTHORIZATION; AND TO PROVIDE THAT CLASS III DEALERS, AS DEFINED UNDER FEDERAL LAW, MUST FILE WITH THE STATE LAW ENFORCEMENT DIVISION A RECORD CONTAINING CERTAIN INFORMATION FOR EACH SALE OF A MACHINE GUN, SAWED-OFF SHOTGUN, AND SAWED-OFF RIFLE.
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Read the first time and referred to the Committee on Judiciary.
S. 519 (Word version) -- Senator Alexander: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 25 TO CHAPTER 9, TITLE 58 SO AS TO PROVIDE THE "DO NOT CALL REGISTRY" AUTHORIZING THE PUBLIC SERVICE COMMISSION TO ESTABLISH A DATABASE OF RESIDENTIAL TELEPHONE SUBSCRIBERS WHO OBJECT TO RECEIVING CERTAIN TELEPHONE SOLICITATIONS, TO DEFINE THE TELEPHONE SOLICITATIONS SUBJECT TO THIS ARTICLE, TO PROVIDE FOR THE OPERATION OF THE DATABASE BY THE COMMISSION, TO PROVIDE FOR FEES TO BE CHARGED TO PERSONS OR ENTITIES ACCESSING THE DATABASE, TO PROVIDE THAT THE FEES ARE USED TO MAINTAIN THE DATABASE, TO PROVIDE ADMINISTRATIVE AND CIVIL PENALTIES FOR TELEPHONE SOLICITORS WHO VIOLATE THIS ARTICLE, TO PROVIDE A STATUTE OF LIMITATIONS, AND TO PROVIDE THAT TELEPHONE CALLER IDENTIFICATION SERVICES ARE NOT LIABLE FOR VIOLATIONS OF THIS ARTICLE AND TELEPHONE COMPANIES ARE NOT RESPONSIBLE FOR THE ARTICLE'S ENFORCEMENT OR LIABLE FOR ERRORS OR OMISSIONS IN THE DATABASE; TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO ADD THE DATABASE ESTABLISHED PURSUANT TO THIS ARTICLE; AND TO AMEND SECTION 16-17-445, AS AMENDED, RELATING TO THE REGULATION OF UNSOLICITED CONSUMER TELEPHONE CALLS, SO AS TO REFERENCE THE REQUIREMENTS OF THIS ARTICLE.
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Read the first time and referred to the Committee on Judiciary.
S. 520 (Word version) -- Senator Kuhn: A BILL TO AMEND ARTICLE 13, CHAPTER 6, TITLE 61, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ENFORCEMENT OF ALCOHOLIC BEVERAGE CONTROL LAWS, BY ADDING SUBARTICLE 3 SO AS TO PROVIDE THAT PERSONS WHO HOLD A LICENSE TO SELL ALCOHOLIC LIQUORS, BEER, OR WINE FOR ON- OR OFF-PREMISES CONSUMPTION, AND THE MANAGERS AND EMPLOYEES OF THE ESTABLISHMENTS WHERE THESE BEVERAGES ARE SOLD, ARE LIABLE FOR CERTAIN DAMAGES UP TO A SPECIFIED AMOUNT IF THEY NEGLIGENTLY SELL OR FURNISH THESE BEVERAGES TO AN UNDERAGE OR INTOXICATED PERSON, AND TO REQUIRE HOLDERS OF THESE LICENSES TO FURNISH THE DEPARTMENT OF REVENUE WITH PROOF OF FINANCIAL RESPONSIBILITY IN MEETING ANY LIABILITY IMPOSED BY THIS SUBARTICLE.
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Read the first time and referred to the Committee on Judiciary.
S. 521 (Word version) -- Senators Knotts and Setzler: A BILL TO AMEND ACT 1201 OF 1968, AS AMENDED, RELATING TO THE LEXINGTON COUNTY RECREATION COMMISSION, SO AS TO DELETE THE PROHIBITION THAT A MEMBER OF THE COMMISSION MAY NOT SERVE MORE THAN TWO CONSECUTIVE TERMS.
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Read the first time and ordered placed on the Local and Uncontested Calendar.
On motion of Senator KNOTTS, with unanimous consent, S. 521 was ordered to receive a second and third reading on the next two consecutive legislative days.
S. 522 (Word version) -- Senators Thomas and Kuhn: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-40-55 SO AS TO ESTABLISH A CHARTER SCHOOL APPROVAL COMMITTEE WHICH IS ALSO AUTHORIZED TO APPROVE CHARTER SCHOOL APPLICATIONS, AND TO PROVIDE THAT AN APPLICANT DESIRING TO FORM A CHARTER SCHOOL MAY EITHER FILE THE APPLICATION WITH THE LOCAL SCHOOL BOARD OF TRUSTEES IN THE MANNER PROVIDED BY LAW OR IN THE ALTERNATIVE MAY FILE THE APPLICATION DIRECTLY WITH THE CHARTER SCHOOL APPROVAL COMMITTEE WHICH SHALL ACT AS THE SPONSOR OF THE CHARTER SCHOOL AND AS THE APPROVING ENTITY FOR THAT CHARTER SCHOOL.
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Read the first time and referred to the Committee on Education.
S. 523 (Word version) -- Senator Gregory: A BILL TO AMEND ARTICLE 1, CHAPTER 11, TITLE 50 OF THE 1976 CODE BY ADDING SECTION 50-11-105 TO PROVIDE MEASURES THE DEPARTMENT OF NATURAL RESOURCES MAY IMPLEMENT TO PREVENT AND CONTROL THE SPREAD OF DISEASE AMONG WILDLIFE; TO AMEND SECTION 50-11-1090, RELATING TO THE AUTHORITY OF THE DEPARTMENT TO ALLOW THE TAKING OF ANIMALS THAT CAUSE DAMAGE TO CROPS AND PROPERTY, TO EXTEND THIS AUTHORITY TO ANIMALS POSING A HUMAN HEALTH RISK; AND TO AMEND ARTICLE 8, CHAPTER 11 OF TITLE 50 BY ADDING SECTION 50-11-1900 TO PROVIDE THAT IT IS UNLAWFUL TO POSSESS OR TRANSPORT LIVE DEER EXCEPT IN CERTAIN CIRCUMSTANCES AND PROVIDE PENALTIES.
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Read the first time and referred to the Committee on Fish, Game and Forestry.
S. 524 (Word version) -- Senator Rankin: A SENATE RESOLUTION TO OFFER CONGRATULATIONS TO THE GOLF WRITERS ASSOCIATION OF AMERICA ON CELEBRATING THE FIFTIETH ANNIVERSARY OF ITS ANNUAL GOLF TOURNAMENT HELD EACH YEAR IN MYRTLE BEACH, SOUTH CAROLINA, THE GOLF CAPITAL OF THE WORLD, AT THE FAMED DUNES GOLF AND BEACH CLUB APRIL 4-6, 2003.
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The Senate Resolution was adopted.
S. 525 (Word version) -- Senator Rankin: A BILL TO AMEND ARTICLE 1 OF CHAPTER 32, TITLE 27, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VACATION TIME SHARING PLANS, SO AS TO REVISE, DELETE, AND ADD CERTAIN DEFINITIONS, REVISE PROVISIONS RELATING TO ADVERTISING AND CONVEYANCE OF VACATION TIME SHARING PLANS SO AS TO DELETE CERTAIN LICENSE REQUIREMENTS FOR SELLERS AND TO EXEMPT CERTAIN COMMUNICATIONS FROM ADVERTISEMENT AND PROMOTION RESTRICTIONS, REVISE THE TERMS OF THE NOTICE OF THE RIGHT TO CANCELLATION REQUIREMENTS IN CONTRACTS FOR THE PURCHASE OF VACATION TIME SHARING PLANS AND PROVIDE FOR THE EFFECTIVE DATE OF NOTICE OF CANCELLATION, ESTABLISH NEW PROCEDURES FOR THE DISTRIBUTION OF REFUNDS UPON CANCELLATION OF CONTRACTS AND ESTABLISHMENT AND MAINTENANCE OF ESCROW ACCOUNTS IN THAT CONNECTION, PROVIDE FOR MATTERS TO BE DISCLOSED IN CONTRACTS INCLUDING WARNINGS AGAINST RELIANCE ON THE PURCHASE AS AN INVESTMENT, DELETE THE REQUIREMENT OF AN EXAMINATION FOR REGISTRATION RELATING TO LICENSES FOR SELLERS OF VACATION TIME SHARING PLANS, EXEMPT EMPLOYEES OF THE SELLER FROM LICENSING REQUIREMENTS, PROVIDE FOR VICARIOUS LIABILITY OF THE CONTROLLING SELLER, TIGHTEN PROVISIONS RELATING TO POWERS OF THE SOUTH CAROLINA REAL ESTATE COMMISSION IN CONNECTION WITH THE INVESTIGATION OF AN APPLICATION FOR REGISTRATION OF A TIME SHARING PLAN INCLUDING ASSURANCES AND BONDING AGAINST ENCUMBRANCES, AND MAKE TECHNICAL CHANGES TO CONFORM THE ARTICLE; AND TO AMEND SECTION 27-50-30, RELATING TO EXEMPTIONS IN CONNECTION WITH THE RESIDENTIAL PROPERTY CONDITION DISCLOSURE ACT, SO AS TO EXEMPT FROM THE ACT A TRANSFER OF A VACATION TIME SHARING PLAN OR A VACATION MULTIPLE OWNERSHIP INTEREST.
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Read the first time and referred to the Committee on Judiciary.
S. 526 (Word version) -- Senator Hayes: A BILL TO AMEND SECTIONS 59-1-390, 59-1-448, 59-1-452, AS AMENDED, 59-5-61, 59-5-65, AS AMENDED, 59-5-140, 59-18-920, 59-20-40, AS AMENDED, 59-24-10, AS AMENDED, 59-24-130, 59-39-100, AS AMENDED, 59-54-20, AS AMENDED, 59-54-40, AS AMENDED, 59-54-50, 59-54-60, AND ARTICLE 21, CHAPTER 53, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO VOCATIONAL EDUCATION, SO AS TO CHANGE REFERENCES FROM "VOCATIONAL EDUCATION", "VOCATIONAL TRAINING", "VOCATIONAL PROGRAMS", AND OTHERS TO "CAREER AND TECHNOLOGY EDUCATION", "CAREER AND TECHNOLOGY TRAINING", "CAREER AND TECHNOLOGY PROGRAMS", TO MAKE OTHER CORRESPONDING CHANGES, AND TO MAKE TECHNICAL CORRECTIONS.
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Read the first time and referred to the Committee on Education.
S. 527 (Word version) -- Senator Malloy: A SENATE RESOLUTION TO CONGRATULATE THE LAMAR HIGH SCHOOL VARSITY FOOTBALL TEAM AND THEIR COACHES, HEAD COACH J. R. BOYD, LINEBACKER COACHES MARSHALL KING AND ALAN POOLE, OFFENSIVE LINE COACHES CHARLIE POOLE AND JEFFREY HOPKINS, DEFENSIVE LINE COACH DON POOLE, RUNNING BACK COACHES DOUG COLLINS AND LEON MCDANIELS AND WIDE RECEIVER COACH CASEY WAITES, ON WINNING THEIR FIRST CLASS A STATE CHAMPIONSHIP, COMMEND THEM FOR THEIR EXTRAORDINARY DEDICATION, DETERMINATION, AND HARD WORK THROUGHOUT THE 2002 SEASON THAT ENABLED THEM TO CAPTURE THE CLASS A STATE FOOTBALL CHAMPIONSHIP TITLE ON SATURDAY, DECEMBER 7, 2002, AT WILLIAMS BRICE STADIUM, AND TO WISH THEM EVERY SUCCESS IN ALL OF THEIR ACADEMIC, ATHLETIC, AND FUTURE ENDEAVORS.
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The Senate Resolution was adopted.
S. 528 (Word version) -- Senators Land, Alexander, Anderson, Branton, Courson, Drummond, Elliott, Fair, Ford, Giese, Glover, Gregory, Grooms, Hawkins, Hayes, Holland, Hutto, Jackson, Knotts, Kuhn, Leatherman, Leventis, Malloy, Martin, Matthews, McConnell, McGill, Mescher, Moore, O'Dell, Patterson, Peeler, Pinckney, Rankin, Ravenel, Reese, Richardson, Ritchie, Ryberg, Setzler, Short, J. Verne Smith, Thomas, Verdin and Waldrep: A CONCURRENT RESOLUTION TO EXPRESS THE HEARTFELT SUPPORT AND GENUINE APPRECIATION OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY AND ALL SOUTH CAROLINIANS FOR THE SERVICE AND SACRIFICE OF THE BRAVE MEN AND WOMEN OF THE ARMED FORCES OF THE UNITED STATES SERVING AT HOME, DEPLOYED OVERSEAS, PRESERVING THE PEACE IN FOREIGN LANDS, AND ACTIVELY ENGAGED IN ARMED CONFLICT IN IRAQ; COMMEND THEM FOR THEIR BRAVERY IN THE FACE OF DANGER AND ENDURANCE IN THE FACE OF HARDSHIP, AND THEIR DEVOTION TO DUTY, PROFESSIONALISM AND TENACITY IN THE ACCOMPLISHMENT OF THEIR MISSION; AND WISH THEM GODSPEED, A RESOUNDING VICTORY OVER THE FORCES OF EVIL, A SAFE AND EARLY RETURN HOME, AND EVERY SUCCESS IN ALL OF THEIR FUTURE ENDEAVORS.
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Whereas, long recognized as a nation conceived in liberty and dedicated to the proposition that all men and women are created equal and entitled to certain inalienable rights, the United States of America is steadfast in its vision, commitment, and ideals of freedom of assembly, speech and expression, freedom of worship, freedom from want, freedom from fear, with liberty and justice for all; and
Whereas, of necessity, from its foundation as a republic to the present, the United States has been vigilant to protect the Constitution, the freedoms it guarantees, and its people from enemies, both foreign and domestic, who would destroy our democracy and the blessings of liberty; and
Whereas, among present day enemies of the United States are international terrorists and terrorist organizations who, armed with cruel hate, and as evidenced by the horrific attacks of September 11, 2001, are determined to attack and kill Americans, without warning or provocation, at home and abroad; and
Whereas, the enemies of the United States include ruthless dictators and governments who harbor international terrorists, threaten their neighbors, oppress their own people, and who are developing weapons of mass destruction with hostile intent to use them on their neighbors and countries in the international community, including the United States; and
Whereas, the enemies of the United States also include false friends and misguided allies who sponsor or harbor terrorists, who supply forbidden resources, or aid and abet dictators and oppressive governments in developing weapons of mass destruction and the capacity to wage aggressive war against other countries; and
Whereas, no amount of appeasement, patience, or restraint will deter either terrorists or a ruthless dictator from secrecy, deception, or their chosen path of inflicting harm or waging aggressive war against the United States and freedom loving people worldwide, or from attempting to destroy their governments and the freedoms they enjoy. Accordingly, and of necessity, the United States has once again called upon its young men and women serving in the Armed Forces to go into harm's way, face imminent danger, and meet the deadly challenges posed by the enemies of the United States at home and abroad; and
Whereas, American troops, the brave soldiers, sailors, airmen and marines of the military services, together with trusted and loyal allies, are forward deployed, ever vigilant, and on guard on the front lines of freedom in Afghanistan, Korea, at sea, and throughout the world. Many are heavily engaged in combat operations in an armed conflict in Iraq to remove Saddam Hussein from power, rid the world of his deadly weapons of mass destruction, and free the people of Iraq from the cruel oppression of a ruthless and merciless dictator; and
Whereas, with all differences laid aside, it is fitting and proper for South Carolinians and Americans everywhere to pause and reflect on the blessings of liberty, to thank God for those blessings, to remember the brave men and women who sacrificed, fought, and died to secure and preserve those blessings in wars past, and to express South Carolina's heartfelt support and genuine appreciation for our troops serving at home, overseas, and in foreign lands to preserve the peace, especially our troops presently engaged in combat operations in Iraq. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That the members of the General Assembly, by this resolution, express the heartfelt support and genuine appreciation of the members of the South Carolina General Assembly and all South Carolinians for the service and sacrifice of the brave men and women of the Armed Forces of the United States serving at home, deployed overseas, preserving the peace in foreign lands, and actively engaged in armed conflict in Iraq; commend them for their bravery in the face of danger and endurance in the face of hardship, and their devotion to duty, professionalism and tenacity in the accomplishment of their mission; and wish them Godspeed, a resounding victory over the forces of evil, a safe and early return home, and every success in all of their future endeavors.
Be it further resolved that a copy of this resolution be forwarded to the President of the United States, the Secretary of Defense, the Adjutant General of the South Carolina National Guard, and to every member of the South Carolina Congressional Delegation.
Senator LAND asked unanimous consent to take the Concurrent Resolution up for immediate consideration.
There was no objection.
Senator LAND spoke on the Resolution.
Mr. PRESIDENT, ladies and gentlemen of the Senate, I, probably like all of you, have been kind of glued to the television for the last seven days watching what was going on in Iraq and watching our brave men and women over there.
I felt somewhat helpless as to what I could do to show my support for the men and women over there. You know, I think the time for protests and debate and so forth, Senator from Greenville, is long behind us. The time to show our support for the men and women in our armed services is now. I notice all around the country they're putting up yellow ribbons, going to visit the homes of the families of prisoners of war and everyone is trying to show support in some way. The House of Representatives has just introduced a similar Resolution to this and, I think this is something the South Carolina Senate can do to send a message to our troops across the world, especially in Iraq, of how much we support them and how much we back them. I have asked all the Senators who are affiliated with the armed services to come up here and join me and I would like for each and every one of them to say a word expressing their concern and I'll start with Senator LEVENTIS.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator LEVENTIS spoke on the Resolution.
Thank you, Senator LAND.
I recall when I was flying combat mission during the Persian Gulf War that the support you gave was very important to me. I learned the power of prayer, because I knew people here at home were praying for me and my family. That meant so much to me during the most demanding time of my life. Prayer is so important in everyday life! I have the addresses of some of the men and women from McEntire who were in the Persian Gulf with me when I served and who are there again during this war. I would be happy to share them with you. I remember well how important it was for me to hear from people back home when I was in harm's way. I know these people would love to hear from you now.
What I valued most when I was away at war was the support for my family back home. So, if you wonder what you can do for our fighting men and women around the world, offer support to their families in their absence. When you offer support to the families, you will have done the most important thing you can do to support the troops at war.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator PATTERSON spoke on the Resolution.
Thank you, Mr. PRESIDENT, and members of the Senate.
As a buck Sergeant in the Marines during the Korean Conflict -- we didn't call them wars back then -- I rise to support this measure. I, too, support the troops over there. It is unfortunate, however, that there has already been reported one case of what we in the Marines and the Army call "fragging," and that is rolling hand grenades in on your Commanding Officer because of some animosity or something that came about and because you got mad you rolled some hand grenades in the CO's quarters or office. It is unfortunate and nothing new. It happened back during Korea. This is about the 48th incident that's happened. But, it was very unfortunate that our men and women must not only watch their backs for the Iraqis but also watch their backs for our own men and women. It is very unfortunate and, personally, I am embarrassed that such an event took place.
Thank you very much.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator HAYES spoke on the Resolution.
Thank you, Mr. PRESIDENT.
I appreciate the Senator from Clarendon sponsoring this measure and allowing me to say a few words. You know, in a way, all of us in the General Assembly and in this Senate have, not necessarily in a small way, but in a major way, participated in this because about a third, actually over a third, going on to about a half of your National Guard, Air and Army has been deployed. Not all of them are in Kuwait or Iraq. A lot of them are in this country guarding air bases. We've had Military Police down in Guantanamo Bay, Cuba, guarding the prisoners of war there. We have them in Bosnia. We have them in Afghanistan. We have some in Kuwait and Iran. But, those people are our National Guard that you have been so generous with and supportive of. So, in a way, this General Assembly has played a part, and continues to play a part, and so, for all of our fighting forces, but particularly the men and women from South Carolina, I agree with the Senator from Clarendon that we need to remember them in our prayers and thoughts and join the effort to support them.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator BRANTON spoke on the Resolution.
Mr. PRESIDENT and members of the Senate.
As you well know, the National Guard has a two-fold mission. They have a state mission and that's to help with natural disasters, hurricanes and so forth and also they have a federal mission. And, I tell you today, the men and the women of the South Carolina National Guard who have gone to help in this federal mission and that is to get rid of Saddam Hussein, the Butcher of Baghdad, are going to do a good job. We have some of the finest men and women in the National Guard today that we've ever had. They're well trained. They're well equipped. We have the engineer battalion down there from Edgefield and those other counties. We have people in from Dorchester County -- also from Berkeley County. They covet our prayers. I'm sure each night, as you sit with your children, you encourage them, too, to remember our National Guard men and women -- that they will come back. As Senator HAYES said, we've got about 25-33% of those people employed and they represent South Carolina and we represent them. It's a pleasure to join today, Senator LAND, with you as we give them our support.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator HOLLAND spoke on the Resolution.
Thank you, Mr. PRESIDENT.
This conflict we're having in Iraq and have had in Afghanistan is supposed to be a right limited conflict but yesterday I asked the Senate to adjourn in memory of a boy from Jefferson who was killed about a week ago. It comes home to you. And, you're going to see more of it as time goes along. The Hicks boy, Spec. Sergeant 1st Class, was killed in a helicopter crash. He was born and reared in Jefferson, which is in my district, and I know his family and I hope to go to the memorial service.
As far as my war career, it was when I was about 17 and I didn't have sense enough much to know what was going on, but at least I was there and I did get the G. I. Bill because of that and I've always been proud of that.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator HAWKINS spoke on the Resolution.
Thank you, Mr. PRESIDENT.
I can tell you that as a Captain in the Army National Guard now, my unit has not been called, but a lot of my sister units have been called. I am still in communication with some of them. Some of them are in the United States, some of them are over the water, but they are doing well. They are optimistic and they are excited to get to their final objective. I want to call on all South Carolinians to stand behind our troops. These demonstrations that we've been having -- some of them are out and out disgusting. From California's shock and hurl demonstrations that they've been having out there, which is simply revolting and repugnant, to the activities of some of our own citizens who are laying down in the streets. It is an insult to our troops. It's an insult to what they stand for and for what our nation stands for. Just because they have the right to do it, doesn't make it right. I want to make sure that South Carolina is recognized as standing behind our troops, as I know that the members of this Senate are, and I thank you all for your patriotism and support of our troops.
Also, I just wanted to make sure that everybody knew that we've got an employee of the Senate who is actually serving right now overseas in Kuwait and I wanted to tell you about him. It is Phil Lensky, an attorney for the Clerk, and who normally works up on the Desk. He is now Major Phil Lensky and he is with the 12th LSO Legal Support Organization. He's a JAG officer much like myself. We like to call it combat JAG. How many of you have seen the TV show, JAG? It's nothing like that in real life. But, he's at Camp Doha, Kuwait. He has a wife and two kids and one on the way. I just want us to remember him in our thoughts as he serves his country so proudly. We've actually got someone from the Senate who's over there and I didn't want the day to pass with all the other things that we did today, not to mention that.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator KNOTTS spoke on the Resolution.
Thank you, Mr. PRESIDENT.
It gives me great pride to sit here in the Senate Chamber today and hear our colleagues patronizing our troops overseas. I will give you a little story. When I was in high school, I chose to quit school while in the 12th grade. There were nine of us that decided to join the armed forces. We went to Vietnam because our country was at war and said it needed people to serve. We were a wild bunch, but felt we were doing the right thing, which indeed we were. Only eight of us returned from this war. We came back to a country that we felt did not appreciate us in our efforts. I have seen young men and women from all over this country give what they had to give to their country -- their ultimate sacrifice so that you could be free -- so that we could be free. I heard a poem the other day, a statement that somebody wrote to a 7 o'clock news anchor on the national news and it was very interesting. I am trying to get a copy of it. To paraphrase, "if you think the press is what gives you freedom of the press, it is not the press that does so; it is the soldier. If you think that it is the judicial system that gives you freedom to be tried by your peers, it is not; it is the soldier. It is also the soldier that gives you the right to protest. And, it is the soldier who defends this flag that gives you the right and freedom to burn it. You need to know exactly what our soldiers are doing over there. Because without what they are doing today to defend our country, we would not be here; we would not have the rights and freedoms that we have. I am so glad to see the same thing is not happening to the men and women serving their country today in Iraq that happened in the Vietnam era. You need to always remember and appreciate the people, the men and women, who gave their lives and put their lives on the line to give you the freedoms that you observe and enjoy today.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator GIESE spoke on the Resolution.
Mr. PRESIDENT and members of the Senate.
I am proud to be able to stand up here with these gentlemen who have served their country and given their time at times and places where there was a question of whether they would survive. Sixty years ago I joined the United States Navy -- the proudest three years I've ever spent. I want you to know that for the privilege of freedom, the responsibility is to be prepared to serve. To those who served their country, as we've heard up here this afternoon, I'm proud to be a part.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator J. VERNE SMITH spoke on the Resolution.
Mr. PRESIDENT and ladies and gentlemen of the Senate.
When I was 18 years old, I volunteered for the Army. I had finished one year at Presbyterian College. It was 61 years ago when I went into the service and I served a little over two years. The war was over and I came home and I never did feel like our people didn't appreciate our service. I found out by seeing a lot of this world and this country and abroad, that I lived in the greatest country in the world and the most wonderful State, among the best people in the world. I thought before I went off to the Army, I was going to have to hunt a bigger town, a bigger place than my home town of Greer and South Carolina, but the more of the world I saw, the more I realized how blessed I was to live in South Carolina. I'm thankful for the privilege of service and I respect all those who are serving in the armed forces and have in the days passed.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator COURSON spoke on the Resolution.
Mr. PRESIDENT and members of the Senate.
Seeing my good friend, the Senator from Greenwood, reminds me of the trip we took 16 years ago with STROM THURMOND to Normandy. I don't know how many of you have been there before, but it's an unbelievable sight to see -- not just a battlefield, but the cemetery with something like 9,000 crosses and several hundred Stars of David. It was a very emotional event. The Chief of the French General Staff came out, Senator, as you may recall, and paid homage to us and to you and Sam Gibbons of Florida and others who came in to liberate France. President Mitterand of France came out and hugged Senator THURMOND and others.
I think the State has or we are recognizing people who have served in the Armed Forces in this Senate last year. Last year we passed a resolution to create the Armed Services Monument Commission which the Senator from Greenwood chairs. I've been honored to be appointed to it as has the Senator from Richland. We will be building a monument on the west side of the State House between the Governor's Office and Assembly Street to those who have served in the military from our State. The inscription on the monument will be very brief but will say a lot: "The State of South Carolina is eternally grateful to the sons and daughters of all who have served in the Armed Forces of the United States of America." We will place behind the semi-circular monument in front, and I have a model of it in my office, the five flags of the Armed Forces of the United States. The flags, each of which will be 3 x 5 feet, will be flown on 20-ft. flagpoles and in the middle will be a larger 30-ft. flagpole with 4 x 6 flags of the United States and of South Carolina, similar to those that fly over our State House. At my home, I fly not only the United States flag but the Marine Corps flag. My ancestors are primarily French and German and I've put up a Union Jack. I've got a very large British flag I also fly at my home in honor of those from U.K. Royal Marines who fight with our Marines in southern Iraq.
We are doing a lot for our veterans and we are very proud, all of us, of those who have had an opportunity to wear a uniform.
Thank you.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator RAVENEL spoke on the Resolution.
The Senator from Richland sent me a picture of General Robert E. Lee and it's hanging in my office in the Gressette Building, and General Lee said, "Duty is the most sublime word in the English language." Indeed, it is.
I was in the class of 1944 in high school, old St. Andrews High School down in Charleston County, and all the boys in the whole class -- it wasn't a big class -- we all volunteered for the service. They had a little rule then that they wouldn't take you in the service if you were 17 unless your parents signed for you. My parents wouldn't sign. Most parents wouldn't sign. I remember when I got up here to the House in the fifties, JACK LINDSAY's parents had signed. JACK was two or three months younger than I, and he had gone out to the Pacific and he saw a good bit of combat out there. They took me on my birthday, which was the end of March 1945. I joined the Marine Corps and I'm a PIU graduate -- that's Parris Island University. I'll never forget, they were getting ready to invade Japan and they rushed us through boot camp and rushed us through combat training school. We were on a long train of Marines going to California getting ready to join the ranks of those who were being discharged because they had the points -- or those who were killed or wounded. We had pulled out on a siding at Vicksburg to let a fast freight come through. Early that morning these little boys were coming through the train, running up and down the side of the train hollering, "Extra! Extra! Atom bomb! Atom bomb!" Of course, none of us knew what that was. It was a complete new concept for us. By the time we got to the west coast, the war was over.
Then we all scattered. Some went to Japan. Some went to China. Some went here, others there. I had volunteered to cook on the troop train going over so the Sergeant who was in charge, told somebody that I could cook. So, they sent me back to the east coast to be a cook at Bainbridge, Maryland, where they were discharging the 1st Marine Division. And, after the war, I joined the National Guard, the fifty-first division. During Korea we got alerted but were never called. But, a great many of those people whose parents signed for them and let them go when they were 17 were on Iwo Jima and, of course, as you know, were killed and wounded there. We experienced tremendous casualties, more casualties on Iwo than in any battle except Antietam. Those of us who are WWII veterans, we are dying off at a rate of 1500 a day. Imagine that. It's really something.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator MESCHER spoke on the Resolution.
I wasn't going to take the floor, but I didn't want to be the only veteran who didn't get up and say something.
I, too, enlisted immediately after high school in 1946 and was sent to Korea. It was between wars and we were sent over to replace the veterans. I relished my experience there. I was a mechanic, a Staff Sergeant. One thing I got out of the service was the G. I. Bill. The G. I. Bill was one of the best welfare programs the government ever had. It provided the opportunity for a lot of poor kids, mostly boys, because there weren't many women in service at that time, to go to college and make something of themselves. So, I think that was a wonderful program. Many of us feel the same way.
As soon as summer vacation was over after high school, I enlisted. Four people from my high school class enlisted and left school before graduation. Two didn't return. That's one reason some years ago I was instrumental in getting a bill passed so that G. I.'s who left high school before graduation to serve in the military could get a high school diploma. I was surprised at the number of people who took advantage of the program. As you know, I am Chairman of the General Committee and we have the National Guard under us. We were having a meeting some time back and it was, "General this" and "Colonel that" and "Major this" and I couldn't help stopping the meeting to make the comment, "Gentlemen, would you start addressing me as 'Sergeant'?"
Anyway, I appreciate being able to serve my country and I really appreciate all the others in the Senate who risked their lives. As ARTHUR RAVENEL said, I would probably have been a member of the Japan invasion force and died in Tokyo Bay. There's an article in, I think, American Heritage in which they are arguing whether 500,000 or a million people would have been killed during the invasion. A lot of school kids, as part of a school project, ask me, "Which President do you most admire?" Number one on my list is Harry Truman because he gave the order to drop the atomic bomb. Had it not been dropped, a lot of people here today would have joined me in Tokyo Bay. So, I always have named Truman as one of my top Presidents.
Thank you very much.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator ANDERSON spoke on the Resolution.
Thank you, Mr. PRESIDENT, and members of the Senate.
When I was 22 years of age, I was drafted into the U.S. Army during the Korean conflict. I can tell you it was hell. I was later promoted to platoon sergeant and we trained the recruits at Ft. Jackson to serve in Korea. We found out that one of the platoons that we had trained was bombed out and most of the men were killed. That was the worst of times. I was sick for days. After I got out of the army and married, we had three children, one girl and two boys. After church on Sunday we would sit around the den and discuss religious things such as why we should live right. One Sunday my son asked, "Dad, when did you get your religion?" I thought for a few minutes and said, "Well, son, when I was stationed at Ft. Jackson, S.C., (army), I received orders that I would be going to Korea in 45 days. Two days later, orders were sent from Washington that too many African Americans had been killed in Korea and not to send any more African Americans to Korea until further notice. When I received the good news, I got my religion."
I can say that it was very frustrating to me when I got out of the Army because prior to being drafted in the U.S. Army, I had passed a civil service exam for a very good job in the government only to find out I had been drafted before being able to go on the job.
However, because I was a veteran, I had the opportunity to go to work for the U.S. Post Office as a mail carrier to a counselor, to a specialist, to a postmaster level 20 and to a postmaster 21. I retired after 30 years of service, and was elected to Greenville City Council, to the House of Representative and to the Senate. After having said that it was frustrating to know that, when I returned from 24 months of service in the Army, people who we fought against were treated better in America than an African American veteran. I can tell you that I would take nothing for the opportunity to defend my country.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Senator PINCKNEY spoke on the Resolution.
I was sharing with a couple of my colleagues a moment ago something that took place in our church services on Young's Island on Sunday. After hearing from all of the veterans and then Senator from Spartanburg came up and talked about one of our members that we know that's serving over there, it's amazing to me the number of family members and relatives that several of us have overseas. There was a study, I think, maybe a couple of months ago about the number of people in Washington, Congressmen and Senators, who actually knew someone or were related to someone who is serving overseas. In Washington, they were hard-pressed to find anyone who was related to a serviceman serving overseas or in the military. I think they finally found a staff person who was related to someone serving.
I found that interesting because I have two brothers overseas right now. I have one in South Korea and one is serving in Germany. I have family members that are serving currently in the Middle East. On Sunday morning I shared that with the congregation as we were about to go in prayer because we wanted to put some names with our prayers as we prayed for our troops. It was interesting as I asked the members of the congregation to share with the congregation-at-large their relatives that they have overseas, nearly half the congregation had a relative overseas -- a son, a daughter, mother or father, cousins, nieces or nephews. I found that interesting because as we are talking about war and wanting to support our troops, many of us don't really understand there are a lot of troops from South Carolina from many of our districts. I think that if many ministers across the state would have had that same question asked during that service, many of them would have had the same response.
As we are praying for our troops overseas, I would ask that we would also pray for the families that are left behind. It is a hard and troubling thing to have to tell a five-year old child that your father or your mother won't be coming home because of their service to their country. So, I just ask that as we are praying for our troops, that we please keep in mind the loved ones that are left here. Please keep in mind their children, their parents, because they definitely need our support and prayers during this time.
All of us have varying opinions on war, whether or not we should be in Iraq. Putting that aside, we can all still support the troops and pray for them in their safety and their families. So, I want to ask the Senate and all of those who are listening and hearing this later to please remember the family of our troops that we have overseas, whether they are in the Middle East or not. I think that in this State, and in particular this body, I believe we are a little closer to the people. I think many of us do know a lot of people who are overseas, familiar with folk who are overseas now, and so, because of that closeness, hopefully, that will bring us to a stronger realization that we need to pray for them and their families.
I just wanted to share that and thank you, Mr. PRESIDENT and members of the Senate.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
Thank you very much. Thank you, Mr. PRESIDENT.
I appreciate everyone joining in on this and I think we may have others -- Senator MAGGIE GLOVER from Florence, I think, is a veteran who served in the Army and there are probably other members of the Senate who have served -- Senator PEELER. I thank all of you.
We compliment every member of our Armed Services, especially those who come from South Carolina and especially those who come from the ranks of the state employees in South Carolina for giving up their time and putting themselves in harm's way.
I thank you all for co-sponsoring the Resolution and ask that it be unanimously adopted by the Senate.
On motion of Senator RANKIN, the remarks were ordered printed in the Journal.
The Concurrent Resolution was adopted, ordered sent to the House.
H. 3077 (Word version) -- Reps. Witherspoon, Rhoad and Davenport: A BILL TO AMEND SECTION 50-13-1189, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PROHIBITION ON THE POSSESSION OF GAME FISH OR GAME FISH TACKLE WHILE FISHING FOR NONGAME FISH, SO AS TO PROVIDE AN ADDITIONAL EXCEPTION FOR A PERSON WHOSE NONGAME TACKLE CONSISTS OF TROT LINES.
Read the first time and referred to the Committee on Fish, Game and Forestry.
H. 3082 (Word version) -- Reps. Scarborough, Simrill, Hinson, Merrill, White, Trotter, Thompson, M. A. Pitts, Duncan, Barfield, Edge, Clemmons, Viers and Bailey: A BILL TO AMEND SECTIONS 1-23-120 AND 1-23-125, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, BOTH RELATING TO GENERAL ASSEMBLY REVIEW OF REGULATIONS AND REQUESTS TO WITHDRAW REGULATIONS, SO AS TO REQUIRE AFFIRMATIVE APPROVAL OF REGULATIONS RATHER THAN ALLOWING THEM TO BECOME EFFECTIVE AFTER ONE HUNDRED TWENTY DAYS, TO DELETE REFERENCES TO THE ONE-HUNDRED-TWENTY-DAY PERIOD AND TO PROVIDE THAT IF A RESOLUTION TO APPROVE OR DISAPPROVE A REGULATION HAS NOT BEEN ENACTED BY THE END OF THE SECOND YEAR OF THE LEGISLATIVE SESSION, THE REGULATION MUST BE PROMULGATED AS A NEW REGULATION BEFORE SUBMITTING FOR SUBSEQUENT APPROVAL.
Read the first time and referred to the Committee on Judiciary.
H. 3218 (Word version) -- Reps. Hinson, Altman, Bailey, Umphlett, Simrill, Viers, Richardson and Ceips: A JOINT RESOLUTION DIRECTING THE STATE BUDGET AND CONTROL BOARD, AFTER OBTAINING THE APPROVAL OF THE STATE HOUSE COMMITTEE AS TO DESIGN AND LOCATION, TO PROCEED WITH CONSTRUCTION OF THE SOUTH CAROLINA LAW ENFORCEMENT OFFICERS MEMORIAL ON THE GROUNDS OF THE CAPITOL COMPLEX USING STATE FUNDS PROVIDED FOR THE PURPOSE AND PRIVATE CONTRIBUTIONS.
Read the first time and referred to the Committee on Finance.
H. 3231 (Word version) -- Reps. Gilham, Stille, Wilkins, Walker, Bales, M. A. Pitts, Cobb-Hunter, Richardson, Ceips, Cotty, Skelton, Owens, Haskins, Martin, Toole, Lourie, Huggins, E. H. Pitts, Talley, Mahaffey, Leach, Hamilton, Loftis, D. C. Smith, McLeod, Thompson and J. E. Smith: A BILL TO AMEND SECTION 56-5-2950, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A MOTOR VEHICLE DRIVER'S IMPLIED CONSENT TO CHEMICAL TESTS OF HIS BREATH, BLOOD, OR URINE FOR THE PURPOSE OF DETERMINING THE PRESENCE OF ALCOHOL OR DRUGS OR THE COMBINATION OF ALCOHOL AND DRUGS IN HIS SYSTEM, SO AS TO PROVIDE THAT A DRIVER WHO REGISTERS AN ALCOHOL CONCENTRATION OF EIGHT ONE-HUNDREDTHS OF ONE PERCENT OR MORE IS GUILTY OF DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, OR A COMBINATION OF ALCOHOL AND DRUGS.
Read the first time and referred to the Committee on Judiciary.
H. 3306 (Word version) -- Reps. Chellis, Young, Altman, Barfield, Cato, Harrell, Harrison, Limehouse, Scarborough, J. E. Smith, Townsend and Bailey: A BILL TO AMEND SECTION 12-20-50, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CORPORATE LICENSE TAX, SO AS TO ALLOW A HOLDING COMPANY TO REDUCE ITS PAID-IN CAPITAL SURPLUS BY THE PORTION OF CONTRIBUTIONS TO ITS CAPITAL RECEIVED FROM ITS PARENT CORPORATION THAT IS DIRECTLY OR INDIRECTLY USED TO FINANCE A SUBSIDIARY'S EXPANSION COSTING IN EXCESS OF ONE HUNDRED MILLION DOLLARS, WHICH ON THE DATE CONSTRUCTION BEGAN IS LOCATED IN AN ECONOMIC IMPACT ZONE.
Read the first time and referred to the Committee on Finance.
H. 3408 (Word version) -- Reps. Clemmons, Duncan, Anthony, Bailey, Branham, Ceips, Clark, Hagood, Herbkersman, Mahaffey, Owens, Pinson, E. H. Pitts, M. A. Pitts, Skelton, Stewart, Toole, Umphlett, Viers and Whitmire: A BILL TO AMEND SECTIONS 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING, RESPECTIVELY, TO DEFINITIONS CONCERNING LOBBYISTS AND LOBBYING AND CAMPAIGN PRACTICES, BOTH SO AS TO REVISE THE DEFINITION OF "LEGISLATIVE CAUCUS" TO INCLUDE A CAUCUS BASED ON DURATION OF SERVICE IN THE GENERAL ASSEMBLY.
Read the first time and referred to the Committee on Judiciary.
H. 3442 (Word version) -- Reps. Sandifer, Altman, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Ceips, Chellis, Clark, Clemmons, Coates, Dantzler, Duncan, Edge, Hayes, Herbkersman, Hinson, Jennings, Kirsh, Leach, Lucas, Mahaffey, McCraw, McGee, Merrill, Ott, Owens, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Scarborough, Simrill, Sinclair, Skelton, D. C. Smith, J. R. Smith, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Viers, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon, Young and Rutherford: A BILL TO AMEND SECTION 23-31-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE APPLICATION A PERSON MUST COMPLETE BEFORE PURCHASING A PISTOL, AND RESTRICTIONS PLACED ON A PERSON WHO PURCHASES A PISTOL, SO AS TO DELETE THE PROVISIONS THAT PROHIBIT A PERSON FROM PURCHASING MORE THAN ONE PISTOL ON AN APPLICATION, PURCHASING MORE THAN ONE PISTOL DURING EACH THIRTY-DAY PERIOD, AND THE EXCEPTIONS TO THESE PROVISIONS.
Read the first time and referred to the Committee on Judiciary.
H. 3528 (Word version) -- Reps. Sheheen, Delleney, Toole, Altman, Haskins, Coates and Viers: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 44-63-50 AND 44-63-55 SO AS TO REQUIRE THAT A FETAL DEATH CERTIFICATE BE COMPLETED FOR EACH FETAL DEATH OCCURRING AFTER A GESTATIONAL PERIOD OF TWENTY WEEKS OR MORE AND TO REQUIRE A CERTIFICATE OF BIRTH RESULTING IN STILLBIRTH TO BE COMPLETED FOR EACH FETAL DEATH OCCURRING AFTER A GESTATIONAL PERIOD OF TWENTY WEEKS OR MORE AND TO FURTHER PROVIDE SPECIFICS FOR COMPLETION AND FILING OF THESE CERTIFICATES.
Read the first time and referred to the Committee on Medical Affairs.
H. 3592 (Word version) -- Reps. Delleney and Lucas: A BILL TO AMEND SECTION 62-7-403, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ALLOCATION OF RECEIPTS AND DISBURSEMENTS BETWEEN PRINCIPAL AND INCOME FOR PURPOSES OF A TRUST OR ESTATE, SO AS TO EXPAND THE SCOPE OF THE SECTION BY MAKING A CHANGE IN A CROSS-REFERENCE.
Read the first time and referred to the Committee on Judiciary.
H. 3613 (Word version) -- Reps. Duncan, Coates, M. A. Pitts and Witherspoon: A BILL TO AMEND SECTION 50-11-1050, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERMITS TO REMOVE DESTRUCTIVE WILDLIFE, SO AS TO FURTHER PROVIDE THAT A PERMIT ISSUED FOR THE REMOVAL OF DESTRUCTIVE BEAVERS IS VALID FOR A PERIOD OF SIX MONTHS FROM THE DATE OF ISSUE.
Read the first time and referred to the Committee on Fish, Game and Forestry.
H. 3614 (Word version) -- Reps. Limehouse, Allen, Altman, Branham, Breeland, Ceips, Coates, Duncan, Frye, Hamilton, Hayes, Hosey, Koon, McCraw, Merrill, Miller, Phillips, M. A. Pitts, Richardson, Rivers, Scarborough, F. N. Smith, J. R. Smith, Snow, Tripp and Viers: 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 AN INDIVIDUAL FOR PURPOSES OF THE SOUTH CAROLINA INCOME TAX ACT, SO AS TO ALLOW A DEDUCTION OF REWARD MONEY PAID TO A RESIDENT INDIVIDUAL TAXPAYER FOR INFORMATION PROVIDED BY THE TAXPAYER DIRECTLY LEADING TO THE REMOVAL AS A THREAT OF AN INTERNATIONAL TERRORIST AND TO PROVIDE THAT REWARD MONEY DOES NOT INCLUDE THE REGULAR PAY AND ALLOWANCES OF LAW ENFORCEMENT OFFICERS AND MEMBERS OF THE ARMED FORCES OF THE UNITED STATES.
Read the first time and referred to the Committee on Finance.
H. 3768 (Word version) -- Reps. Rice, Clemmons and Edge: A BILL TO ENACT THE "SOUTH CAROLINA HEALTH AND HUMAN SERVICES REORGANIZATION AND ACCOUNTABILITY ACT OF 2003"; TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 3 TO CHAPTER 30, TITLE 1 SO AS TO ESTABLISH THE OFFICE OF CHILDREN'S SERVICES WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND TO TRANSFER TO THIS OFFICE THE CHILDREN'S CASE RESOLUTION SYSTEM, CERTAIN SECTIONS OF THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN, CERTAIN SECTIONS OF THE DEPARTMENT OF SOCIAL SERVICES RESPONSIBLE FOR LICENSING AND MONITORING OUT-OF-HOME PLACEMENTS FOR CHILDREN, AND CERTAIN SECTIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL RESPONSIBLE FOR LICENSING RESIDENTIAL TREATMENT FACILITIES AND OTHER OUT-OF-HOME PLACEMENT; TO ESTABLISH THE OFFICE OF ALCOHOL AND OTHER DRUG ABUSE SERVICES WITHIN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND TO TRANSFER TO THIS OFFICE THE DEPARTMENT OF ALCOHOL AND OTHER DRUG ABUSE SERVICES, INPATIENT ALCOHOL AND DRUG SERVICES FROM THE DEPARTMENT OF MENTAL HEALTH, AND CERTAIN ALCOHOL AND DRUG TREATMENT FACILITIES OPERATED BY THE STATE AGENCY OF VOCATIONAL REHABILITATION UPON APPROVAL OF A PLAN; TO TRANSFER THOSE SECTIONS OF THE CONTINUUM OF CARE FOR EMOTIONALLY DISTURBED CHILDREN RESPONSIBLE FOR CLIENT AND FAMILY SERVICES TO THE DEPARTMENT OF MENTAL HEALTH; TO TRANSFER THE SOUTH CAROLINA COMMISSION FOR THE BLIND TO THE STATE AGENCY OF VOCATIONAL REHABILITATION; TO ABOLISH THE BOARD OF THE COMMISSION FOR THE BLIND AND TO TRANSFER ITS DUTIES TO THE STATE AGENCY FOR VOCATIONAL REHABILITATION; TO ABOLISH THE SOUTH CAROLINA MENTAL HEALTH COMMISSION AND TO TRANSFER ITS DUTIES TO THE DEPARTMENT OF MENTAL HEALTH; AND TO PROVIDE TRANSFER AND TRANSITION PROVISIONS; TO ADD ARTICLE 5 TO CHAPTER 30, TITLE 1 SO AS TO ESTABLISH THE DEPARTMENT OF INFORMATION TECHNOLOGY FOR HEALTH AND HUMAN SERVICES AGENCIES AND TO PROVIDE FOR ITS POWERS AND DUTIES, INCLUDING THE MANAGEMENT AND ADMINISTRATION FOR ALL INFORMATION TECHNOLOGIES ASSOCIATED WITH THESE AGENCIES AND THE APPROVAL OF INFORMATION TECHNOLOGIES EXPENDITURES; TO ADD CHAPTER 64 TO TITLE 2 SO AS TO ESTABLISH THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON MEDICAID AND HEALTH CARE AND TO PROVIDE FOR ITS MEMBERSHIP, FUNCTIONS, DUTIES, AND RESPONSIBILITIES INCLUDING, AMONG OTHER THINGS, TO APPROVE REORGANIZATION PLANS AND TO REVIEW THE STATE MEDICAID PLAN; TO ADD ARTICLE 8 TO CHAPTER 6, TITLE 44 SO AS TO ESTABLISH THE STATE OFFICE OF MEDICAID AND HEALTH CARE AUDITS FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, TO PROVIDE THAT THE AUDIT DIRECTOR MUST BE APPOINTED BY AND UNDER THE DIRECTION OF THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON MEDICAID AND HEALTH CARE, AND TO FURTHER PROVIDE FOR THE POWERS AND DUTIES OF THE AUDIT DIRECTOR, INCLUDING CONDUCTING AUDITS, PREVENTING WASTE, AND PROMOTING ACCOUNTABILITY; TO ADD SECTION 12-2-100 SO AS TO REQUIRE THE DEPARTMENT OF REVENUE TO PROVIDE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ELECTRONIC ACCESS TO TAXPAYER INFORMATION TO USE IN DETERMINING MEDICAID ELIGIBILITY; TO ADD SECTION 44-6-105 SO AS TO REQUIRE THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON MEDICAID AND HEALTH CARE TO REVIEW CHANGES TO MEDICAID ELIGIBILITY REQUIREMENTS; TO ADD SECTION 44-6-108 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO REPORT TO THE JOINT LEGISLATIVE OVERSIGHT COMMITTEE ON MEDICAID AND HEALTH CARE ON MEDICAID BENEFICIARIES NOT MAKING REQUIRED PAYMENTS; TO ADD SECTION 38-71-270 SO AS TO REQUIRE HEALTH INSURERS TO PROVIDE NAMES AND IDENTIFYING INFORMATION ON THEIR INSUREDS TO BE USED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IN DETERMINING MEDICAID ELIGIBILITY; TO ADD SECTION 44-6-75 SO AS TO PROVIDE FOR A MEDICAID COST CONTAINMENT ACTION PLAN FOR THE PROJECTED EXPENDITURES FOR THE STATE MEDICAID PROGRAM FOR THE NEXT FISCAL YEAR AND TO PROVIDE FOR THE CONTENTS OF THE PLAN AND FOR ALTERNATIVE MEASURES WHEN REVENUE IS NOT SUFFICIENT TO ADEQUATELY FUND THE MEDICAID PROGRAM; TO ADD SECTION 44-6-120 SO AS TO ESTABLISH THE SOUTH CAROLINA MEDICAID MANDATORY MANAGED CARE PILOT PROGRAM TO BE IMPLEMENTED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IN CHARLESTON, FLORENCE, GREENVILLE, HORRY, AND RICHLAND COUNTIES, AND IN ONE RURAL COUNTY TO BE DESIGNATED BY THE DEPARTMENT, FOR FIVE YEARS TO ENROLL MEDICAID RECIPIENTS IN A HEALTH MAINTENANCE ORGANIZATION OR WITH PRIMARY CARE CASE MANAGEMENT PROVIDERS AND TO INCLUDE PROVISIONS TO ENSURE COMPETITION, ACCOUNTABILITY, AND ACTUARIAL SOUNDNESS; TO ADD SECTION 44-6-125 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO IMPLEMENT A PILOT PROJECT TO EVALUATE THE VIABILITY OF PRIVATIZING THE MEDICAID ELIGIBILITY PROCESS; TO ESTABLISH THE TASK FORCE ON EMERGENCY ROOM DIVERSION TO STUDY INAPPROPRIATE EMERGENCY ROOM USE AND TO MAKE RECOMMENDATIONS TO REDUCE SUCH USE; TO ADD SECTION 44-7-75 SO AS TO REQUIRE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO CONTRACT FOR THE MANAGEMENT AND OPERATION OF CERTAIN NURSING HOMES FORMERLY UNDER THE DEPARTMENT OF MENTAL HEALTH; TO ADD SECTION 12-21-625 SO AS TO IMPOSE A SURTAX ON CIGARETTES IN AN AMOUNT EQUAL TO 2.1 CENTS PER CIGARETTE, TO CREDIT THIS TAX TO THE MEDICAID SERVICES FUND, TO PROVIDE FOR THE USE OF THESE FUNDS, AND TO FURTHER PROVIDE THAT FIFTY PERCENT OF THESE FUNDS MUST BE USED TO OFFSET REDUCTIONS IN OTHER STATE?IMPOSED TAXES AND FEES INCLUDING, BUT NOT LIMITED TO, OFFSETTING REDUCTIONS IN STATE INDIVIDUAL INCOME TAXES; TO REQUIRE THE DIRECTOR OF THE LEGISLATIVE AUDIT COUNCIL TO EMPLOY AUDITORS NECESSARY TO PERFORM AUDITS ON DEPARTMENTS AFFECTED IN THIS ACT; AND TO ADD SUBARTICLES 2, 3, AND 4 TO ARTICLE 5, CHAPTER 21, TITLE 12 SO AS TO PROVIDE FOR TAX STAMPS ON CIGARETTE PACKAGES AS INDICIA OF TAX PAYMENT, TO PROVIDE FOR ADMINISTRATIVE FINES AND FORFEITURE OF CIGARETTES FOR DEFRAUDING THE STATE OR OTHERWISE FAILING TO COMPLY WITH THE SUBARTICLE, AND TO PROVIDE FOR CRIMINAL PENALTIES INCLUDING FINES, IMPRISONMENT, LICENSE REVOCATION, AND FORFEITURE FOR DEALING IN COUNTERFEIT CIGARETTES; TO PROVIDE PROCEDURES TO PREVENT VIOLATIONS AND ASSIST ENFORCEMENT OF THE TOBACCO ESCROW FUND ACT AND ADD SAFEGUARDS TO THE COMPLIANCE WITH THE MASTER SETTLEMENT AGREEMENT, INCLUDING CERTIFIED REPORTING REQUIREMENTS FOR PARTICIPATING AND NONPARTICIPATING MANUFACTURERS, PRODUCTION OF A WEBSITE FOR PUBLIC ACCESS TO NAMES AND BRAND FAMILIES OF MANUFACTURERS MEETING THE CERTIFICATION CRITERIA, PROHIBITION OF THE APPLICATION OF TAX STAMPS TO A PRODUCT WHOSE BRAND FAMILY DOES NOT APPEAR ON THE LIST, REQUIREMENT OF SALES REPORTS BY BRAND FAMILY, PROVISION OF LICENSE REVOCATION, FINES, INJUNCTIVE RELIEF, AND FORFEITURE FOR NONCOMPLIANCE, AND MAKING NONCOMPLIANCE AN UNFAIR AND DECEPTIVE TRADE PRACTICE; TO REGULATE THE DELIVERY SALES OF CIGARETTES BY PROVIDING AGE VERIFICATION, DISCLOSURE, SHIPPING, REGISTRATION, REPORTING, AND TAX COLLECTION REQUIREMENTS IN CONNECTION WITH A CIGARETTE SALE TO A CONSUMER AS THE RESULT OF A TELECOMMUNICATED ORDER OR DELIVERY BY THE MAILS OR OTHER DELIVERY SERVICE, AND TO PROVIDE FOR FINES AND INJUNCTIVE RELIEF FOR NONCOMPLIANCE; TO AMEND SECTION 12-21-2975, RELATING TO CONFISCATED PRODUCTS DONATED TO THE DEPARTMENT OF MENTAL HEALTH FOR PATIENT USE, SO AS TO DELETE CIGARETTES; TO DESIGNATE SECTIONS 1-30-10 THROUGH 1-30-120 AS ARTICLE 1, CHAPTER 30, TITLE 1 ENTITLED "DEPARTMENTS OF STATE GOVERNMENT" AND TO DESIGNATE SECTIONS 12-21-610 THROUGH 12-21-810 AS SUBARTICLE 1, ARTICLE 5, CHAPTER 21, TITLE 12; AND TO REPEAL SECTION 12-21-2870, RELATING TO CONFISCATION AND SALE OF UNSTAMPED CIGARETTES, AND SECTION 44-9-30, RELATING TO THE SOUTH CAROLINA MENTAL HEALTH COMMISSION.
Read the first time and referred to the Committee on Medical Affairs.
Senator PEELER asked unanimous consent to make a motion that H. 3768 be recalled from the Committee on Medical Affairs and committed to the Committee on Finance for the purpose of addressing the financial aspects of the Bill, and the financial aspects only. Further, subsequent to the Bill's consideration by the Committee on Finance, the Bill shall be recommitted to the Committee on Medical Affairs for consideration.
There was no objection.
The Bill was recalled and committed to the Committee on Finance.
H. 3802 (Word version) -- Rep. Hayes: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE BRIDGE ALONG COUNTRY CLUB DRIVE IN THE COUNTY OF DILLON FOR THE HONORABLE WILLIAM BLEDSOE HAWKINS AND TO INSTALL APPROPRIATE MARKERS OR SIGNS AT THE BRIDGE CONTAINING THE WORDS "WILLIAM BLEDSOE HAWKINS BRIDGE".
The Concurrent Resolution was introduced and referred to the Committee on Transportation.
H. 3806 (Word version) -- Reps. Neilson, Lucas and J. Hines: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF THE DARLINGTON COUNTY SCHOOL DISTRICT MUST BE SET BY THE BOARD OF TRUSTEES OF THE DISTRICT IN ITS SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.
Read the first time and referred to the Committee on Education.
H. 3809 (Word version) -- Reps. Delleney, Coleman and McCraw: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAYS MISSED IN 2002-2003, BY THE STUDENTS OF THE SCHOOL DISTRICT OF CHESTER COUNTY WHEN THE SCHOOLS WERE CLOSED DUE TO INCLEMENT WEATHER CONDITIONS MAY BE MADE UP BY EXEMPTING THEM FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP, AUTHORIZE EXTENDING THE LENGTH OF SCHOOL DAYS OR MAKE-UP DAYS ON SATURDAYS, OR AUTHORIZE THE DISTRICT TO USE COMBINATIONS OF THESE AS APPROPRIATE FOR A PARTICULAR SCHOOL, AND TO REQUIRE THE PLANS CHOSEN TO BE APPROVED BY THE COUNTY BOARD OF TRUSTEES.
Read the first time and referred to the Committee on Education.
H. 3817 (Word version) -- Rep. Anthony: A JOINT RESOLUTION TO PROVIDE THAT THE SCHOOL DAY MISSED ON FEBRUARY 17, 2003, BY THE STUDENTS OF A SCHOOL IN THE UNION COUNTY SCHOOL DISTRICT WHEN THE SCHOOL WAS CLOSED DUE TO SNOW, ICE, OR INCLEMENT WEATHER CONDITIONS IS EXEMPTED FROM THE MAKE-UP REQUIREMENT OF THE DEFINED MINIMUM PLAN THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.
Read the first time and referred to the Committee on Education.
H. 3822 (Word version) -- Reps. Townsend, Harrell, Walker and Wilkins: A JOINT RESOLUTION TO PROVIDE THAT IF A DESIGNEE OF A PUBLIC OFFICIAL TO SERVE ON THE EDUCATION OVERSIGHT COMMITTEE IS A MEMBER OF THE NATIONAL GUARD OR RESERVES AND HAS BEEN CALLED TO ACTIVE DUTY IN CONNECTION WITH THE CONFLICT WITH IRAQ OR THE WAR ON TERRORISM FOR A PERIOD OF NOT MORE THAN ONE YEAR, THE PUBLIC OFFICIAL MAY DESIGNATE ANOTHER PERSON TO SERVE IN HIS STEAD IN AN INTERIM CAPACITY UNTIL THE ORIGINAL DESIGNEE RETURNS FROM ACTIVE DUTY, AND TO PROVIDE THAT ABSENCES OF THE ORIGINAL DESIGNEE ON THE COMMITTEE BECAUSE OF MILITARY ACTIVATION ARE CONSIDERED EXCUSED ABSENCES.
Read the first time and referred to the Committee on Education.
H. 3826 (Word version) -- Rep. Littlejohn: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE INTERSECTION OF SC 176 BETWEEN SPARTANBURG AND UNION, WEST MAIN STREET WEST OF THE TOWN OF PACOLET IN SPARTANBURG COUNTY IN HONOR OF VOIGT MILTON EPTING FOR HIS DEDICATION TO EDUCATING THE YOUNG PEOPLE OF THE STATE AND INSTALL APPROPRIATE MARKERS OR SIGNS DENOTING THE "VOIGT MILTON EPTING INTERSECTION".
The Concurrent Resolution was introduced and referred to the Committee on Transportation.
H. 3835 (Word version) -- Reps. Parks, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO CONGRATULATE JOAN C. SCOTT OF COLUMBIA FOR BEING THE FIRST AFRICAN-AMERICAN TO HOLD THE POSITION OF PRESIDENT OF THE PALMETTO CABINET AND ON BEING THE IMMEDIATE PAST PRESIDENT OF THE PALMETTO CABINET, COMMEND HER FOR HER MANY CONTRIBUTIONS AS PRESIDENT OF THE PALMETTO CABINET, AND WISH HER MUCH SUCCESS IN ALL OF HER FUTURE ENDEAVORS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3836 (Word version) -- Reps. Haskins, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO EXPRESS THE GENUINE APPRECIATION AND THANKS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY FOR THE STEADFAST SUPPORT AND LOYALTY OF SPAIN AS AN ALLY OF THE UNITED STATES THROUGHOUT THE IRAQI CRISIS, TO COMMEND THE LEADERS OF THE GOVERNMENT OF SPAIN FOR THEIR COURAGE IN THE FACE OF POPULAR OPPOSITION TO THE INVASION OF IRAQ TO REPLACE SADDAM HUSSEIN AND RID IRAQ OF WEAPONS OF MASS DESTRUCTION, AND TO URGE A CONTINUATION OF GOOD RELATIONS BETWEEN SPAIN AND THE UNITED STATES IN THE YEARS TO COME.
The Concurrent Resolution was introduced and referred to the General Committee.
H. 3843 (Word version) -- Reps. Jennings, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO EXPRESS THE PROFOUND SORROW OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY UPON LEARNING OF THE DEATH OF PRIVATE FIRST CLASS SPENCE MCNEIL OF BENNETTSVILLE AND TO EXTEND DEEPEST SYMPATHY TO HIS LOVING FAMILY AND FRIENDS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3844 (Word version) -- Reps. Harrison, J. E. Smith, Bales, J. Brown, Cotty, Howard, Lourie, J. H. Neal, Quinn, Rutherford and Scott: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE DREHER HIGH SCHOOL SAT TEAM OF COLUMBIA FOR THEIR HARD WORK AND RECENT ACCOMPLISHMENTS, INCLUDING BEING NAMED THE CLASS AAA LOWER STATE AND STATE CHAMPIONS FOR 2003.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3845 (Word version) -- Reps. Harrison, J. E. Smith, Bales, J. Brown, Cotty, Howard, Lourie, J. H. Neal, Quinn, Rutherford and Scott: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO THE DREHER HIGH SCHOOL GIRLS' BASKETBALL TEAM AND TO THEIR COACH, TERESA JONES, OF COLUMBIA ON THEIR REMARKABLE SEASON AND ON CAPTURING THE CLASS AAA STATE CHAMPIONSHIP TITLE ON SATURDAY, MARCH 8, 2003.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3846 (Word version) -- Reps. Harrison, J. E. Smith, Bales, J. Brown, Cotty, Howard, Lourie, J. H. Neal, Quinn, Rutherford and Scott: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO THE DREHER HIGH SCHOOL DRAMA DEPARTMENT AND THE DREHER DRAMA DEVILS OF COLUMBIA FOR THEIR OUTSTANDING PERFORMANCES AT THIS YEAR'S PALMETTO DRAMATICS ASSOCIATION'S DRAMA FESTIVAL, FOR RECEIVING A SUPERIOR RATING, AND FOR BEING THE HIGHEST POINT WINNERS OF THE FESTIVAL.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3847 (Word version) -- Rep. Harrison: A CONCURRENT RESOLUTION TO COMMEND COACH CALHOUN F. "CALLY" GAULT OF CLINTON FOR OVER FORTY YEARS OF OUTSTANDING SERVICE AS THE HEAD COACH AND ATHLETIC DIRECTOR AT NORTH AUGUSTA HIGH SCHOOL IN NORTH AUGUSTA AND AT PRESBYTERIAN COLLEGE IN CLINTON.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3848 (Word version) -- Reps. Sandifer, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Wilkins, Witherspoon and Young: A CONCURRENT RESOLUTION TO COMMEND DR. PAUL A. SANDIFER, DIRECTOR OF THE SOUTH CAROLINA DEPARTMENT OF NATURAL RESOURCES, UPON THE OCCASION OF HIS RETIREMENT ON APRIL 1, 2003, FOR HIS OUTSTANDING LEADERSHIP AND MANY ACCOMPLISHMENTS DURING HIS THIRTY-ONE YEARS OF DISTINGUISHED PUBLIC SERVICE, TO EXPRESS THE DEEP APPRECIATION OF THE SOUTH CAROLINA GENERAL ASSEMBLY FOR HIS DEDICATION AND FAITHFUL SERVICE ON BEHALF OF THE PEOPLE AND THE RESOURCES OF THE STATE OF SOUTH CAROLINA, AND TO WISH HIM GOOD HEALTH AND MUCH SUCCESS IN ALL HIS FUTURE ENDEAVORS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3849 (Word version) -- Reps. Miller and Snow: A CONCURRENT RESOLUTION TO CONGRATULATE THE GEORGETOWN COUNTY GOVERNMENT ON RECEIVING THE "COUNTIES CARE FOR KIDS AWARD" FROM THE NATIONAL ASSOCIATION OF COUNTIES AND TO COMMEND THEM FOR THEIR OUTSTANDING COMMITMENT TO EDUCATION.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3851 (Word version) -- Rep. Richardson: A CONCURRENT RESOLUTION TO CONGRATULATE COZETTE STACY NOWAK OF FORT MILL ON WINNING THE MS. SOUTH CAROLINA SENIOR CLASSIC 2002, TO COMMEND HER FOR HER MANY CONTRIBUTIONS AS MS. SOUTH CAROLINA SENIOR AND TO THE COMMUNITY, AND TO WISH HER EVERY SUCCESS IN ALL OF HER FUTURE ENDEAVORS.
The Concurrent Resolution was adopted, ordered returned to the House.
H. 3854 (Word version) -- Reps. Wilkins, Allen, Altman, Anthony, Bailey, Bales, Barfield, Battle, Bingham, Bowers, Branham, Breeland, G. Brown, J. Brown, R. Brown, Cato, Ceips, Chellis, Clark, Clemmons, Clyburn, Coates, Cobb-Hunter, Coleman, Cooper, Cotty, Dantzler, Davenport, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Govan, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hayes, Herbkersman, J. Hines, M. Hines, Hinson, Hosey, Howard, Huggins, Jennings, Keegan, Kennedy, Kirsh, Koon, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Mahaffey, Martin, McCraw, McGee, McLeod, Merrill, Miller, Moody-Lawrence, J. H. Neal, J. M. Neal, Neilson, Ott, Owens, Parks, Perry, Phillips, Pinson, E. H. Pitts, M. A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Sheheen, Simrill, Sinclair, Skelton, D. C. Smith, F. N. Smith, G. M. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stewart, Stille, Talley, Taylor, Thompson, Toole, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Weeks, Whipper, White, Whitmire, Witherspoon and Young: A CONCURRENT RESOLUTION TO EXPRESS THE HEARTFELT SUPPORT AND GENUINE APPRECIATION OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY AND ALL SOUTH CAROLINIANS FOR THE SERVICE AND SACRIFICE OF THE BRAVE MEN AND WOMEN OF THE ARMED FORCES OF THE UNTIED STATES SERVING AT HOME, DEPLOYED OVERSEAS, PRESERVING THE PEACE IN FOREIGN LANDS, AND ACTIVELY ENGAGED IN ARMED CONFLICT IN IRAQ; COMMEND THEM FOR THEIR BRAVERY IN THE FACE OF DANGER AND ENDURANCE IN THE FACE OF HARDSHIP, AND THEIR DEVOTION TO DUTY, PROFESSIONALISM AND TENACITY IN THE ACCOMPLISHMENT OF THEIR MISSION; AND WISH THEM GODSPEED, A RESOUNDING VICTORY OVER THE FORCES OF EVIL, A SAFE AND EARLY RETURN HOME, AND EVERY SUCCESS IN ALL OF THEIR FUTURE ENDEAVORS.
The Concurrent Resolution was introduced and referred to the General Committee.
Senator WALDREP from the Committee on Judiciary submitted a favorable with amendment report on:
S. 208 (Word version) -- Senators McConnell and Moore: A BILL TO AMEND VARIOUS SECTIONS OF THE 1976 CODE TO PROVIDE FOR COMPREHENSIVE REFORM TO THE PUBLIC SERVICE COMMISSION. (ABBREVIATED TITLE)
Ordered for consideration tomorrow.
Senator MARTIN from the Committee on Judiciary submitted a favorable report on:
S. 305 (Word version) -- Senators Leatherman and Drummond: A BILL TO RATIFY AN AMENDMENT TO SECTION 11, ARTICLE X OF THE CONSTITUTION OF SOUTH CAROLINA, 1895, RELATING TO PROHIBITIONS ON THE STATE AND ITS POLITICAL SUBDIVISIONS PLEDGING THEIR CREDIT TO PRIVATE INTERESTS AND THE PROHIBITION ON THE STATE AND ITS POLITICAL SUBDIVISIONS HAVING A JOINT OWNER OR STOCKHOLDER IN A COMPANY, ASSOCIATION, OR CORPORATION AND THE EXCEPTIONS TO THESE PROHIBITIONS, SO AS TO ALLOW A SEPARATE PENSION PLAN OPERATED FOR FIREFIGHTERS BY A MUNICIPALITY, COUNTY, SPECIAL PURPOSE DISTRICT, OR PUBLIC SERVICE DISTRICT TO INVEST ITS FUNDS IN EQUITY SECURITIES TRADED ON A NATIONAL SECURITIES EXCHANGE AS PROVIDED IN THE SECURITIES EXCHANGE ACT OF 1934 OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATIC QUOTATIONS SYSTEM OR SIMILAR SERVICE.
Ordered for consideration tomorrow.
Senator RANKIN from the Committee on Judiciary submitted a favorable with amendment report on:
S. 407 (Word version) -- Senators Richardson, Hutto and Moore: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 61-6-1640 SO AS TO PROVIDE AN ESTABLISHMENT LICENSED TO SERVE MINIBOTTLES IS AUTHORIZED TO CONDUCT SAMPLINGS OF WINES IN EXCESS OF SIXTEEN PERCENT ALCOHOL, CORDIALS, AND DISTILLED SPIRITS, IF THE SAMPLING IS CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
Ordered for consideration tomorrow.
Senator MOORE from the Committee on Judiciary submitted a favorable report on:
S. 425 (Word version) -- Senators Setzler and Knotts: A BILL TO AMEND SECTION 7-7-380, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO VOTING PRECINCTS IN LEXINGTON COUNTY, SO AS TO RENAME CERTAIN PRECINCTS AND REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD.
Ordered for consideration tomorrow.
Senator LEATHERMAN from the Committee on Finance submitted a favorable report on:
S. 463 (Word version) -- Senators Leatherman and Patterson: A BILL TO CONFIRM THE OWNERSHIP BY THE SOUTH CAROLINA DEPARTMENT OF DISABILITIES AND SPECIAL NEEDS OF REAL PROPERTY DESCRIBED IN ACT 1645 OF 1972, TO DIRECT THE STATE BUDGET AND CONTROL BOARD TO DEED THE PROPERTY TO THE DEPARTMENT, AND TO ALLOW THE DEPARTMENT THE PROCEEDS OF ANY SALE OF THE PROPERTY.
Ordered for consideration tomorrow.
Senator LEATHERMAN from the Committee on Finance submitted a favorable with amendment report on:
S. 464 (Word version) -- Senator Leatherman: A BILL TO AMEND SECTION 8-17-370, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FROM STATE EMPLOYEE GRIEVANCE RIGHTS AND PROCEDURES, SO AS TO EXEMPT THE POSITION OF STATE ENGINEER; AND TO AMEND SECTIONS 11-35-310 AND 11-35-830, BOTH AS AMENDED, RELATING TO DEFINITIONS USED IN THE CONSOLIDATED PROCUREMENT CODE AND THE DUTIES OF THE STATE ENGINEER, SO AS TO PROVIDE THAT THE POSITION OF STATE ENGINEER MUST BE REGISTERED IN THIS STATE AS EITHER AN ARCHITECT OR A PROFESSIONAL ENGINEER AND TO PROVIDE THAT THE STATE ENGINEER IS AN AT-WILL EMPLOYEE WHO SERVES AT THE PLEASURE OF THE STATE BUDGET AND CONTROL BOARD.
Ordered for consideration tomorrow.
Senator RYBERG from the Committee on Transportation submitted a favorable with amendment report on:
H. 3538 (Word version) -- Reps. Townsend, Gilham, J.M. Neal, J. Hines, Martin, Wilkins, Cato, Chellis, Littlejohn, W.D. Smith, Stille, White, Talley, Thompson, Bailey, Clemmons, Barfield, Simrill, Mahaffey and Edge: A BILL TO ENACT THE "DEPARTMENT OF MOTOR VEHICLES REFORM ACT OF 2003." (ABBREVIATED TITLE)
Ordered for consideration tomorrow.
Senator MESCHER from the General Committee submitted a favorable report on:
H. 3618 (Word version) -- Rep. W.D. Smith: A CONCURRENT RESOLUTION TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES TO PERMANENTLY REPEAL THE DEATH TAX.
Ordered for consideration tomorrow.
Senator FORD from the Committee on Judiciary submitted a favorable report on:
H. 3655 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF ARCHIVES AND HISTORY, RELATING TO GENERAL RETENTION SCHEDULES OF MUNICIPAL RECORDS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2787, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Ordered for consideration tomorrow.
Senator FORD from the Committee on Judiciary submitted a favorable report on:
H. 3656 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF ARCHIVES AND HISTORY, RELATING TO GENERAL RETENTION SCHEDULES FOR SCHOOL DISTRICT RECORDS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2788, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Ordered for consideration tomorrow.
Senator FORD from the Committee on Judiciary submitted a favorable report on:
H. 3657 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF ARCHIVES AND HISTORY, RELATING TO GENERAL RETENTION SCHEDULE FOR STATE COLLEGES AND UNIVERSITIES, DESIGNATED AS REGULATION DOCUMENT NUMBER 2789, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
Ordered for consideration tomorrow.
At 3:11 P.M., Senator McCONNELL assumed the Chair.
S. 168 (Word version) -- Senator Gregory: A BILL TO AMEND SECTION 50-11-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FEDERAL MIGRATORY BIRD TREATY AND PROHIBITIONS CONCERNING THE HUNTING OF WATERFOWL, SO AS TO REVISE PROVISIONS PERTAINING TO THE HUNTING OF MIGRATORY BIRDS AND WATERFOWL AND PROVIDE PENALTIES FOR VIOLATIONS OF THIS SECTION.
The House returned the Bill with amendments.
Senator GREGORY explained the House amendment.
On motion of Senator GREGORY, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
S. 340 (Word version) -- Finance Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 21 TO TITLE 9 SO AS TO PROVIDE THE REMEDIES AVAILABLE IN A DISPUTE OR CONTROVERSY BETWEEN THE SOUTH CAROLINA RETIREMENT SYSTEMS AND A MEMBER OR DESIGNATED BENEFICIARY OF A MEMBER OF ANY OF THE RETIREMENT SYSTEMS ESTABLISHED IN TITLE 9.
The House returned the Bill with amendments.
On motion of Senator LEATHERMAN, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.
S. 503 (Word version) -- Senators McConnell, Ritchie, Kuhn, Branton, Ravenel, Mescher, Pinckney, Ford and Grooms: A CONCURRENT RESOLUTION TO COMMEND THE SOUTH CAROLINA PORTS AUTHORITY BOARD FOR ITS DILIGENT EFFORTS IN WORKING WITH THE CITY OF NORTH CHARLESTON AND THE CHARLESTON NAVAL BASE REDEVELOPMENT AUTHORITY TO SECURE A LOCATION FOR A NEW MARINE CARGO TERMINAL ON THE FORMER CHARLESTON NAVAL BASE AND TO ENCOURAGE THE EXPEDITIOUS ISSUANCE OF THE NECESSARY PERMITS FOR THAT FACILITY.
Returned with concurrence.
Received as information.
THE SENATE PROCEEDED TO A CALL OF THE UNCONTESTED LOCAL AND STATEWIDE CALENDAR.
The following Bills, having been read the second time, were ordered placed on the third reading Calendar:
H. 3599 (Word version) -- Rep. Hayes: A BILL TO AUTHORIZE THE BOARD OF TRUSTEES OF DILLON COUNTY SCHOOL DISTRICT 3 TO ISSUE AND SELL GENERAL OBLIGATION BONDS OF DILLON COUNTY SCHOOL DISTRICT 3 IN AN AMOUNT NOT TO EXCEED SEVEN HUNDRED THOUSAND DOLLARS, TO PRESCRIBE THE CONDITIONS PURSUANT TO WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THE PROCEEDS OF THE BONDS MAY BE EXPENDED, AND TO PROVIDE FOR THE PAYMENT OF THE BONDS.
On motion of Senator ELLIOTT, with unanimous consent, H. 3599 was ordered to receive a third reading on Thursday, March 27, 2003.
H. 3600 (Word version) -- Rep. Hayes: A BILL TO AUTHORIZE THE BOARD OF TRUSTEES OF DILLON COUNTY SCHOOL DISTRICT 2 TO ISSUE AND SELL GENERAL OBLIGATION REFUNDING BONDS OF DILLON COUNTY SCHOOL DISTRICT 2 IN AN AMOUNT NOT TO EXCEED ONE MILLION ONE HUNDRED FORTY THOUSAND DOLLARS, TO PRESCRIBE THE CONDITIONS PURSUANT TO WHICH THE BONDS MAY BE ISSUED AND THE PURPOSES FOR WHICH THE PROCEEDS OF THE BONDS MAY BE EXPENDED, AND TO PROVIDE FOR THE PAYMENT OF THE BONDS.
On motion of Senator ELLIOTT, with unanimous consent, H. 3600 was ordered to receive a third reading on Thursday, March 27, 2003.
THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO THE MOTION PERIOD.
On motion of Senator MARTIN, the Senate agreed to dispense with the Motion Period.
THE SENATE PROCEEDED TO A CALL OF THE CONTESTED STATEWIDE AND LOCAL CALENDAR.
S. 203 (Word version) -- Senators Jackson, McConnell, Matthews, Courson, Anderson, Ford, Glover, Malloy, Patterson and Pinckney: A BILL TO AMEND TITLE 2 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL ASSEMBLY, BY ADDING CHAPTER 77, SO AS TO MAKE CERTAIN LEGISLATIVE FINDINGS AND TO ESTABLISH THE SOUTH CAROLINA HIGHER EDUCATION EQUALIZATION PROGRAM FOR THE PURPOSE OF REQUIRING THE COMMISSION ON HIGHER EDUCATION TO ENTER INTO CONTRACTS WITH PRIVATE, HISTORICALLY BLACK COLLEGES AND UNIVERSITIES TO BE USED FOR CERTAIN PURPOSES INTENDED TO ENHANCE THE EDUCATIONAL OPPORTUNITIES OF LOW-INCOME, EDUCATIONALLY AND SOCIALLY DISADVANTAGED STUDENTS.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator JACKSON proposed the following Amendment No. 1 (203R003.DJ), which was adopted:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Title 2 of the 1976 Code is amended by adding:
South Carolina Higher Education Excellence Enhancement Program
Section 2-77-10. The General Assembly finds that:
(1) a significant part of the state mission in education has been to enhance excellence in higher education for low-income and educationally disadvantaged students;
(2) certain institutions have played a integral role in offering higher educational access to low-income and educationally disadvantaged students who otherwise might not have been able to obtain a college education, which has resulted in a substantial public benefit;
(3) these institutions provide a unique educational opportunity for these targeted groups of students by offering flexible admission policies, low tuition rates, and small enrollments to ensure smaller class size tailored to the needs of these targeted students;
(4) these institutions are often limited in their abilities to raise funds from their respective student populations from tuition and fees because of the demographic profiles of their students and, as a result, charge tuition rates which on average are substantially lower than those charged by other higher educational institutions in this State;
(5) the federal government has recognized the unique ability of certain institutions to accomplish the important public benefit of enhancing opportunities in higher education for low-income and educationally disadvantaged students;
(6) public educational assistance made available to the institutions that serve these targeted students provides a direct educational benefit to the students by improving the overall quality of their educational experiences by offering enhanced facilities and improved academic instruction; and
(7) it is necessary that the State of South Carolina enable these institutions to effectively partner with the federal government to ensure the continued existence in this State of these institutions, which provide a substantial public benefit to the State by enabling these targeted students to be well-educated, to move into the workforce, and to improve the quality of life in South Carolina.
Section 2-77-15. For purposes of this chapter:
(1) 'Eligible institution' means a four-year institution of higher learning at which sixty percent or more of the enrolled undergraduate students are low-income and educationally disadvantaged students.
(2) 'Federal funding program' means:
(a) Section 507(c) of the Omnibus Parks and Land Management Act of 1996 (16 U.S.C. 470a note), as amended; or
(b) Part B, Subchapter III, Chapter 28, Title 20 of the United States Code.
(3) `Low-income and educationally disadvantaged student' means a student who receives a Pell Grant.
Section 2-77-20. (A) There is hereby established the South Carolina Higher Education Excellence Enhancement Program for the general purpose of enhancing the educational opportunities of low-income and educationally disadvantaged students. The program must be administered by the Commission on Higher Education. The commission must enter into annual contracts with eligible institutions to accomplish the purposes of this program.
(B) The program must be funded by appropriations from the Education Lottery Account in an amount provided by the General Assembly.
(C) An institution seeking to qualify as in eligible institution must submit an annual application to the commission. The commission must certify the eligibility of institutions seeking contracts pursuant to this section. Of the funds appropriated for this program, one-half must be allocated equally among the eligible institutions. The remainder of the appropriated funds shall be awarded to eligible institutions based upon merit, through criteria developed by the Commission on Higher Education.
(D) From the amounts allocated on an equal basis, an institution receiving an allocation of funds must first use the funds as the nonfederal match required by a federal funding program that provides funding for historic preservation or for capital improvements. In awarding funds based on merit, the commission shall give priority to those proposals that can be matched with funds from a federal funding program.
Section 2-77-30. (A) From amounts appropriated by the General Assembly, the commission must enter into contracts with eligible institutions that are certified by the commission for any of the following uses:
(1) purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;
(2) construction, maintenance, renovation, and improvement in classroom, library, laboratory, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;
(3) support of faculty exchanges, faculty development, and faculty fellowships to assist in attaining advanced degrees in their fields of instruction;
(4) purchase of library books, periodicals, microfilm, and other educational materials, including telecommunications program materials;
(5) tutoring, counseling, and student service programs designed to improve academic success;
(6) funds and administrative management, and acquisition of equipment for use in strengthening funds management;
(7) joint use of facilities, such as laboratories and libraries;
(8) establishing or improving a development office to strengthen or improve contributions from alumni and the private sector;
(9) establishing or enhancing a program of teacher education designed to qualify students to teach in a public elementary or secondary school in the State that must include, as part of the program, preparation for teacher certification; and
(10) other activities proposed that contribute to carrying out the purposes of this act, and which are approved by the commission as part of the review and acceptance of the application.
(B) Each eligible institution must keep such records as the commission prescribes, including records which fully disclose:
(1) the amount and disposition by each recipient of the proceeds of the assistance;
(2) the cost of the project or undertaking in connection with which the assistance is given or used;
(3) the amount of that portion of the cost of the project or undertaking supplied by other sources; and
(4) such other records as will facilitate an effective audit by the Commission on Higher Education.
Section 2-77-40. Any funds paid to an eligible institution pursuant to this chapter but not expended or used for the purposes for which the funds were paid within three years following the date of the contract awarded to an eligible institution must be repaid to the Education Lottery Account immediately upon the expiration of the three-year period.
Section 2-77-50. The commission must promulgate regulations and establish procedures to administer the provisions of this chapter including, but not limited to, audits of contracting institutions."
SECTION 2. This act takes effect upon approval by the Governor./
Renumber sections to conform.
Amend title to conform.
Senator JACKSON spoke on the amendment.
Senator JACKSON moved that the amendment be adopted.
The amendment was adopted.
There being no further amendments, the Bill was read the third time, passed and ordered sent to the House of Representatives with amendments.
S. 263 (Word version) -- Senators Moore, Setzler and Jackson: A BILL TO AMEND SECTION 23-3-620, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FROM WHOM A DNA SAMPLE CAN BE TAKEN FOR THE PURPOSE OF CREATING AND MAINTAINING A STATE DNA DATABASE, SO AS TO REQUIRE A SAMPLE UPON INCARCERATION, AFTER THE CONVICTION OF ANY FELONY, OR UPON RELEASE FROM INCARCERATION; TO AMEND SECTION 23-3-630, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS QUALIFIED TO TAKE DNA SAMPLES, SO AS TO PROVIDE FOR LIABILITY IN CASES OF NEGLIGENCE WHEN TAKING A BLOOD SAMPLE FOR THE PURPOSE OF OBTAINING A DNA SAMPLE; TO AMEND SECTION 23-3-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SPECIFICATIONS AND PROCEDURES FOR DNA SAMPLES, SO AS TO MANDATE SECURE STORAGE AND CONFIDENTIALITY OF THE DNA SAMPLES; TO AMEND SECTION 23-3-650, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CONFIDENTIALITY OF DNA PROFILES AND PENALTIES FOR DISCLOSURE, SO AS TO MAKE DNA SAMPLES CONFIDENTIAL.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator MOORE spoke on the Bill.
The Bill was read the third time, passed and ordered sent to the House of Representatives with amendments.
H. 3163 (Word version) -- Reps. Delleney and Simrill: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 14-1-235 SO AS TO PROHIBIT A JUDGE, COURT, OR COURT OFFICIAL FROM APPOINTING AN ATTORNEY TO REPRESENT A PARTY IN A CIVIL ACTION UNLESS THE AUTHORITY TO MAKE THE APPOINTMENT IS PROVIDED SPECIFICALLY BY LAW.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator McCONNELL proposed the following Amendment No. 1 (JUD3163.002), which was adopted:
Amend the bill, as and if amended, by adding an appropriately numbered new section to read:
/ SECTION ___. Authority is hereby granted to the Commission on Indigent Defense to transfer a sum of up to fifty-three thousand three hundred fifteen dollars ($53,315) from unspent carry-forward funds from the last fiscal year to the Office of Appellate Defense to help the Office of Appellate Defense offset its budget reductions. /
Renumber sections to conform.
Amend title to conform.
Senator MARTIN explained the amendment.
The amendment was adopted.
There being no further amendments, the Bill was read the third time, passed and ordered returned to the House of Representatives with amendments.
H. 3297 (Word version) -- Reps. Huggins and Cotty: A BILL TO AMEND SECTION 40-60-150, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INVESTIGATIONS, RESTRAINING ORDERS, LICENSING, AND PROCEDURAL REQUIREMENTS FOR REAL ESTATE APPRAISERS, SO AS TO REMOVE THE TIME LIMIT THE BOARD HAS TO RENDER A DECISION AND SERVE NOTICE.
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
On motion of Senator THOMAS, with unanimous consent, the Bill was carried over.
S. 438 (Word version) -- Banking and Insurance Committee: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY AMENDING VARIOUS SECTIONS OF TITLE 37, RELATING TO CONSUMER PROTECTION AND BY ADDING CHAPTER 23 TO TITLE 37, SO AS TO ENACT THE SOUTH CAROLINA HIGH-COST AND CONSUMER HOME LOANS ACT, TO PROVIDE THAT A VIOLATION OF THE HIGH-COST HOME LOAN ACT IS AN UNFAIR TRADE PRACTICE PURSUANT TO CHAPTER 5 OF TITLE 39, AND TO PROVIDE FOR REMEDIES AND PENALTIES FOR VIOLATIONS OF THE HIGH-COST HOME LOAN ACT. (ABBREVIATED TITLE)
The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.
Senator SHORT spoke on the Bill.
At 4:08 P.M., with Senator SHORT retaining the floor, on motion of Senator MOORE, with unanimous consent, the Senate receded from business not to exceed five minutes.
At 4:20 P.M., the Senate resumed.
Senator THOMAS asked unanimous consent to make a motion that the Senate proceed to a consideration of the amendments.
There was no objection.
At 4:21 P.M., Senator HOLLAND made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.
Senators HAYES, MARTIN and THOMAS proposed the following Amendment No. 15 (PT\1398MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-20(12)(a) and (b) as found in SECTION 1, beginning on page 7 at line 29 and ending on page 8 at lines 26, by deleting the subitems in their entirety and inserting:
/ (12) 'Thresholds' means either (a) or (b) in a loan transaction, whichever is applicable:
(a) without regard to whether the loan transaction is a 'residential mortgage transaction' as the term 'residential mortgage transaction' is defined in Section 226.2(a)(24) of Title 12 of the Code of Federal Regulations, as amended, the annual percentage rate of the loan at the time the loan is consummated is such a rate that the loan is considered to be a 'mortgage' pursuant to Section 152 of the Home Ownership and Equity Protection Act of 1994 (Pub. Law 103-25, [15 U.S.C. Section 1602(aa)]), as amended, and regulations adopted pursuant to it by the Federal Reserve Board, including Section 226.32 of Title 12 of the Code of Federal Regulations, as amended, except with regard to a mortgage or loan secured by a nonreal estate manufactured housing lien, the term 'threshold' means the annual percentage rate of the nonreal estate secured manufactured housing lien at the time the mortgage or loan is consummated exceeds by more than ten percentage points the yield on United States Treasury securities having comparable periods of maturity as of the fifteenth day of the month immediately preceding the month in which the application of the extension of credit is received by the lender.
(b) the total points and fees payable by the borrower at or before the loan closing exceed:
(i) five percent of the total loan amount if the total loan amount is twenty thousand dollars or more;
(ii) the lesser of eight percent of the total loan amount or one thousand dollars if the total loan amount is less than twenty thousand dollars; or
(iii) three percent of the total loan amount for nonreal estate secured manufactured housing transactions if the total loan amount in the nonreal estate secured housing transaction is twenty thousand dollars or more. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
The amendment was adopted.
Senator HAYES proposed the following Amendment No. 22A (PT\1416MM03), which was adopted:
Amend the bill, as and if amended, Section 37-3-201(2), as found in SECTION 4B, on page 21 at line 23, by deleting the words /of any amount/ and inserting:
/ in an amount exceeding six hundred dollars /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
The amendment was adopted.
Senator THOMAS proposed the following Amendment No. 23 (PT\1400MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-20 as found in SECTION 1, by adding an appropriately numbered subitem to Section 37-23-20 as follows:
/ ( ) 'Originator' means an employee of a mortgage loan broker whose primary job responsibilities include direct contact with and informing loan applicants of the rates, terms, disclosure, and other aspects of the mortgage. It does not mean an employee whose primary job responsibilities are clerical in nature, such as processing the loan. /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the amendment.
The amendment was adopted.
Senators HAYES and THOMAS proposed the following Amendment No. 24 (PT\1423MM03), which was adopted:
Amend the bill, as and if amended, SECTION 1 as found on page 16, by inserting a new Section at the end to read:
/ Section 37-23-85. A lender of a consumer home loan who acts in good faith but fails to comply with this article does not violate this article if the lender establishes that either:
(1) within forty-five days of the loan closing and before the institution of an action pursuant to this article, the lender notifies the borrower of the compliance failure, makes appropriate restitution, and makes necessary adjustments to the loan to make the consumer home loan satisfy the requirements of Section 37-23-70, 37-23-75, or 37-23-80; or
(2) the compliance failure was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid those errors, and within ninety days after the discovery of the compliance failure and before the institution of an action pursuant to this article or the receipt of written notice of the compliance failure, the lender notifies the borrower of the compliance failure, makes appropriate restitution, and makes necessary adjustments to the loan to make the consumer home loan satisfy the requirements of Sections 37-23-70, 37-23-75, and 37-23-80. Examples of a bona fide error include clerical, calculation, computer malfunction and programming, and printing errors. An of error legal judgment with respect to a person's obligations pursuant to this article is not a bona fide error. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
The amendment was adopted.
Senator RYBERG proposed the following Amendment No. 26 (DKA\3395MM03), which was tabled:
Amend the bill, as and if amended, SECTION 1, beginning on page 11 and line 13, by striking Section 37-23-50 in its entirety, and inserting:
/ Section 37-23-50. (A) If a lender, or party charged with a violation, when making a high-cost home loan violates the provisions of this article, the borrower has a right in action, other than a class action, to recover from the lender or party charged with the violation actual damages and also a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars for each loan transaction. A borrower may not bring a class action for a violation of this article. A borrower may not bring an action for a violation of this article more than three years after the violation occurred, except as set forth in subsection (C). This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt if the action is brought more than three years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action.
(B) A lender or party charged with the violation may not be held liable in an action brought pursuant to this article for a violation if the lender or the party charged with the violation shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(C)(1) If the court finds as a matter of law that the agreement or transaction is unconscionable pursuant to Section 37-5-108 and violates the provisions of this article at the time it was made, the court may, in an action other than a class action:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part, or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award not more than:
(i) the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge; or
(ii) double the amount of excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(D) In an action in which it is found that a lender or party charged with a violation has violated this article, the court shall award to the debtor the costs of the action and to his attorneys their reasonable fees. In determining attorney's fees, the amount of the recovery on behalf of the debtor is not controlling. /
Amend further, SECTION 1, beginning on page 15 and line 19, by striking Section 37-23-70(F), (G), (H), (I), and (J) in its entirety, and inserting:
/ (F) The making of a consumer home loan that violates this section is a violation of the provisions of this article and the borrower has a right in action, other than a class action, to recover from the lender or party charged with the violation actual damages and also a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars. A borrower may not bring a class action for a violation of this article. A borrower may not bring an action for a violation of this article more than three years after the violation occurred, except as set forth in subsection (H). This subsection does not bar a debtor from asserting a violation of this article in an action to collect a debt which was brought more than three years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action.
(G) A lender or party charged with the violation may not be held liable in an action brought pursuant to this article for a violation if the party charged with the violation or the lender shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(H)(1) If the court finds as a matter of law that the agreement or transaction is unconscionable pursuant to Section 37-5-108 and violates the provisions of this article at the time it was made, the court may, in an action other than a class action:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part, or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award not more than:
(i) the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge; or
(ii) double the amount of excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(I) In an action in which it is found that a creditor has violated this article, the court shall award to the debtor the costs of the action and to his attorneys their reasonable fees. In determining attorney's fees, the amount of the recovery on behalf of the debtor is not controlling. /
Renumber sections to conform.
Amend title to conform.
Senator RYBERG explained the amendment.
Senator THOMAS spoke on the amendment.
Senator HAYES argued contra to the adoption of the amendment.
Senator RYBERG moved that the amendment be adopted.
Senator HAWKINS moved to lay the amendment on the table.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Branton Courson Ford Glover Grooms Hawkins Hayes Holland Jackson Knotts Land Leatherman Malloy Matthews Patterson Pinckney Rankin Reese Ritchie Short Thomas Waldrep
Alexander Elliott Fair Giese Gregory Kuhn Martin McConnell Mescher Moore O'Dell Peeler Ravenel Richardson Ryberg Setzler Verdin
The amendment was laid on the table.
Senators THOMAS and HAYES proposed the following Amendment No. 27 (SWB\5316MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-70(F) as contained in SECTION 1, page 15, lines 19-31, by deleting subsection (F) in its entirety and inserting:
/ (F) The making of a consumer home loan that violates this section is a violation of the provisions of this article and the borrower has a right in action, other than a class action, to recover from the lender or party charged with the violation, a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars for each loan transaction. A borrower may not bring a class action for a violation of this article. A borrower may not bring an action for a violation of this article more than six years after the violation occurred. This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt if the action is brought more than six years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in the action. /
Renumber sections to conform.
Amend title to conform.
Senator HAYES explained the amendment.
The amendment was adopted.
Senator RANKIN proposed the following Amendment No. 29 (PT\1466MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-50(A) as found in SECTION 1, page 11, lines 15 and 16, and Section 37-23-70(F) as found in SECTION 1, page 15, line 21, by deleting / , other than a class action, /.
Amend the bill further, Section 37-23-50(B)(1) as found in SECTION 1, page 11, lines 28 and 29, and Section 37-23-70(G)(1) as found in SECTION 1, page 15, line 28, by deleting / , in an action other than a class action /.
Renumber sections to conform.
Amend title to conform.
Senator RANKIN explained the amendment.
Senator HAYES spoke on the amendment.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Anderson Branton Drummond Ford Glover Hawkins Holland Jackson Knotts Kuhn Land Malloy Matthews McConnell Moore Patterson Pinckney Rankin Ravenel Reese Ritchie Setzler Thomas Waldrep
Alexander Courson Elliott Fair Giese Gregory Grooms Hayes Leatherman Martin Mescher O'Dell Peeler Richardson Ryberg Verdin
The amendment was adopted.
At 5:04 P.M., on motion of Senator MOORE, the Senate receded from business not to exceed ten minutes.
At 5:22 P.M., the Senate resumed.
At 5:23 P.M., the PRESIDENT assumed the Chair.
Senators THOMAS, JACKSON and SHORT proposed the following Amendment No. 3 (BBM\9526MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-40(1) as contained in SECTION 1, page 9, lines 31-36, by deleting the item and inserting:
/ (1) make a high-cost home loan without first receiving a written certification from a counselor approved by the State Housing Finance and Development Authority that the borrower has received counseling on the advisability of the loan transaction and the appropriate loan for the borrower. The Department of Consumer Affairs shall specify the information that must be provided by the lender and reviewed by the consumer credit counselor; /
Renumber sections to conform.
Amend title to conform.
Senator JACKSON explained the amendment.
The amendment was adopted.
Senator JACKSON proposed the following Amendment No. 14A (438R010.DJ), which was adopted:
Amend the bill, as and if amended, by striking in its entirety subsections (E)(1) and (2) of Section 37-23-70, as found in SECTION 1 of the bill, beginning on page 14 at line 4 and ending on page 15 at line 18.
Amend the bill further, as and if amended, by adding an appropriately numbered SECTION to read as follows:
/ SECTION ____. Chapter 58 of Title 40 of the 1976 Code is amended by adding:
"Section 40-58-72.(A) A mortgage broker or originator, in addition to duties imposed by other statutes or at common law, shall:
(1) safeguard and account for any money handled for the borrower;
(2) follow reasonable and lawful instructions from the borrower;
(3) act with reasonable skill, care, and diligence; and
(4) make reasonable efforts, with lenders with whom the broker regularly does business to secure a loan that is reasonably advantageous to the borrower considering all the circumstances, including the rates, charges, and repayment terms of the loan and the loan options for which the borrower qualifies with such lenders.
(B) If a mortgage broker or originator wilfully and intentional violates the provisions of this section when placing or negotiating a mortgage loan, the borrower has a right in action, other than a class action, to recover from the mortgage broker, or originator charged with the violation, a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars per mortgage loan transaction if the borrower prevails and shows that the action of the mortgage broker or originator is wilful and intentional. No borrower may bring a class action for a violation of this section. No borrower may bring an action for a violation of this section more than three years after the violation occurred.
(C) No mortgage broker or originator charged with the violation may be held liable in an action brought under this section for a violation if the mortgage broker or originator charged with the violation shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(D)(1) If the court finds as a matter of law that a violation of subsection (A) of this section is unconscionable within the meaning of Section 37-5-108, the court may, in an action other than a class action, award not more than the mortgage broker's fee.
(2) An action pursuant to this section may not be brought more than three years after the violation occurred.
(E) A violation of this section does not impair rights on a debt.
(F) A mortgage broker or an originator is not liable for any penalty under this section if he notifies the borrower of a violation before the mortgage broker or an originator receives from the borrower written notice of the violation or the borrower has brought an action under this section, and the mortgage broker or an originator corrects the violation within sixty days after notifying the borrower. If the violation consists of a prohibited agreement, giving the borrower a corrected copy of the writing containing the violation is sufficient notification and correction. If the violation consists of an excess charge or accounting of money, correction shall be made by an adjustment or refund. The administrator and any official or agency of this State having supervisory authority over a mortgage broker or originator shall give prompt notice to a mortgage broker or originator of any violation discovered pursuant to an examination or investigation of the transactions, business, records, and acts of the mortgage broker or originator.
(G) In an action in which it is found that a mortgage broker and an originator has violated this section, the court shall award to the borrower, if he prevails, the costs of the action and to his attorneys their reasonable fees. In determining attorneys' fees, the amount of the recovery on behalf of the borrower is not controlling.
(H) The borrower cannot bring separate or multiple actions on a mortgage loan transaction against a mortgage broker and an originator working for the same mortgage broker. The remedies pursuant to this section are the total amount of recoverable remedies that a borrower may seek and obtain for each mortgage loan transaction in which a mortgage broker or originator is charged with a wilful and intentional violation." /
Renumber sections to conform.
Amend title to conform.
Senator JACKSON explained the amendment.
The amendment was adopted.
Senator THOMAS proposed the following Amendment No. 16A (BBM\9706MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-45 as found in SECTION 1, page 10, by deleting subsections (A), (B) and (C) in their entirety and inserting the following:
/ (A) At the time the borrower receives the good faith estimate under the Real Estate Settlement and Procedures Act (RESPA) and before the scheduled closing of a high-cost home loan, the broker or mortgage broker of a loan must disclose in writing the amount being earned on the loan. The Department of Consumer Affairs shall provide a disclosure form to include the following:
(1) the dollar amount of the yield spread premium and the percentage of the yield spread premium in relation to the loan amount. For purposes of this item, 'yield spread premium' is the amount paid to the broker by the lender based on the difference between the interest rate at which the broker originates the loan and the par, or market rate offered by a lender;
(2) an itemization of dollar amounts for points, fees, and commissions with a combined total given. A percentage of the combined total should be specified in relation to the loan amount; and
(3) a dollar amount total of items 37-23-45(A)(1) and (2) and a percentage of the total specified in relation to the total amount of the loan.
(B) The form must include a signature line for the borrower to acknowledge that he has received the disclosures, the disclosures have been explained to him, he understands them, and he voluntarily enters into the loan transaction. /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the amendment.
The amendment was adopted.
Senator THOMAS proposed the following Amendment No. 20A (BBM\9707MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-75 as found in SECTION 1, page 15, by deleting subsections (A), (B) and (C) in their entirety and inserting the following:
/ (A) At the time the borrower receives the good faith estimate under the Real Estate Settlement and Procedures Act (RESPA) and before the scheduled closing of a consumer home loan, the broker or mortgage broker of a loan must disclose in writing the amount being earned on the loan. The Department of Consumer Affairs shall provide a disclosure form to include the following:
(1) the dollar amount of the yield spread premium and the percentage of the yield spread premium in relation to the loan amount. For purposes of this item, 'yield spread premium' is the amount paid to the broker by the lender based on the difference between the interest rate at which the broker originates the loan and the par, or market rate offered by a lender;
(2) an itemization of dollar amounts for points, fees, and commissions with a combined total given. A percentage of the combined total should be specified in relation to the loan amount; and
(3) a dollar amount total of items 37-23-75(A)(1) and (2) and a percentage of the total specified in relation to the total amount of the loan.
(B) The form must include a signature line for the borrower to acknowledge that he has received the disclosures, the disclosures have been explained to him, he understands them, and he voluntarily enters into the loan transaction. /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the Bill.
The amendment was adopted.
Senators HAYES and THOMAS proposed the following Amendment No. 28 (SWB\5317MM03), which was adopted:
Amend the bill, as and if amended, Section 37-23-20, SECTION 1, page 4, by deleting subsection (6) in its entirety and inserting:
/ (6) 'Conventional Mortgage Rate' means the required net yield for a ninety-day standard mandatory delivery commitment for a reasonably comparable loan from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, whichever is greater.
(7) 'Conventional Prepayment Penalty' means a prepayment penalty or fee that may be collected or charged in a home loan, and that is authorized by law other than by this chapter, provided the home loan (a) does not have an annual percentage rate that exceeds the conventional mortgage rate by more than two percentage points; and (b) does not permit a prepayment fees or penalties that exceed two percent of the amount prepaid. /
Amend further, Section 37-23-20(11)(f)(iv), SECTION 1, page 7, by deleting the subitem in its entirety and inserting the following:
/ (iv) fees or charges payable or paid by a party in connection with a local, state, or federal government-sponsored mortgage insurance or guaranty program including, but not limited to, Federal Housing Administration, Veterans Administration, South Carolina Housing Finance and Development Authority programs, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, or price adjustment. /
Amend further, Section 37-23-20(12)(b)(iii), SECTION 1, page 8, by deleting the subitem in its entirety and inserting:
/ (iii) Conventional prepayment penalty /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the amendment.
The amendment was adopted.
Senators SHORT, HAYES and HUTTO proposed the following Amendment No. 30 (438-4-HUTTO), which was adopted:
Amend the bill, as and if amended, page 12, by striking lines 30 through 42 and continuing on page 13, lines 1 through 18 and inserting:
/ Section 37-23-60. A lender of a high-cost home loan who acts in good faith but through a bona fide unintentional error, notwithstanding the maintenance of procedures reasonably adapted to avoid errors, fails to comply with this article must make restitution to the borrower. Within forty-five days after the discovery of the compliance failure or receipt of written notice of the compliance failure, the lender must notify the borrower and make the necessary adjustments to the loan to make the high-cost home loan satisfy the requirements of Sections 37-23-30, 37-23-40, and 37-23-45. If the harm to the borrower cannot be remedied by compliance with the high cost loan requirement of Sections 37-23-30, 37-23-40, and 37-23-45, the lender must change the terms of the loan in a manner beneficial to the borrower so that the loan is no longer considered a high-cost home loan subject to the provisions of this article. Examples of a bona fide error include clerical, calculation, computer malfunction and programming, and printing errors. An error of legal judgment with respect to a person's obligations pursuant to this article is not a bona fide error. /
Renumber sections to conform.
Amend title to conform.
Senators SHORT and HAYES explained the amendment.
The amendment was adopted.
Senator RYBERG proposed the following Amendment No. 31 (PT\ 1482MM03), which was tabled:
Amend the bill, as and if amended, SECTION 1, beginning on page 11 and line 13, by striking Section 37-23-50 in its entirety, and inserting:
/ Section 37-23-50. (A) If a lender, or party charged with a violation, when making a high-cost home loan violates the provisions of this article, the borrower has a right in action to recover from the lender or party charged with the violation actual damages and also a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars for each loan transaction. A borrower may not bring an action for a violation of this article more than eight years after the violation occurred, except as set forth in subsection (C). This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt if the action is brought more than eight years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action.
(B) A lender or party charged with the violation may not be held liable in an action brought pursuant to this article for a violation if the lender or the party charged with the violation shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(C)(1) If the court finds as a matter of law that the agreement or transaction is unconscionable pursuant to Section 37-5-108 and violates the provisions of this article at the time it was made, the court may:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part, or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award not more than:
(i) the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge; or
(ii) double the amount of excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(D) In an action in which it is found that a lender or party charged with a violation has violated this article, the court shall award to the debtor the costs of the action and to his attorneys their reasonable fees. In determining attorney's fees, the amount of the recovery on behalf of the debtor is not controlling. /
Amend further, SECTION 1, beginning on page 15 and line 19, by striking Section 37-23-70(F), (G), (H), (I), and (J) in its entirety, and inserting:
/ (F) The making of a consumer home loan that violates this section is a violation of the provisions of this article and the borrower has a right in action to recover from the lender or party charged with the violation actual damages and also a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars. A borrower may not bring an action for a violation of this article more than eight years after the violation occurred, except as set forth in subsection (H). This subsection does not bar a debtor from asserting a violation of this article in an action to collect a debt which was brought more than eight years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action.
(G) A lender or party charged with the violation may not be held liable in an action brought pursuant to this article for a violation if the party charged with the violation or the lender shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(H)(1) If the court finds as a matter of law that the agreement or transaction is unconscionable pursuant to Section 37-5-108 and violates the provisions of this article at the time it was made, the court may:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part, or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award not more than:
(i) the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge; or
(ii) double the amount of excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(I) In an action in which it is found that a creditor has violated this article, the court shall award to the debtor the costs of the action and to his attorneys their reasonable fees. In determining attorney's fees, the amount of the recovery on behalf of the debtor is not controlling. /
Renumber sections to conform.
Amend title to conform.
Senator RYBERG explained the amendment.
Senator HAYES spoke on the amendment.
Senator HAWKINS moved to lay the amendment on the table.
The amendment was laid on the table.
Senators SHORT, HAYES and THOMAS proposed the following Amendment No. 32 (DKA\3401DW03), which was adopted:
Amend the bill, as and if amended, Section 37-23-20, SECTION 1, beginning on page 4 and line 29, by deleting item (7) in its entirety and inserting:
/ (7) 'Flipping' a consumer home loan means the making of a consumer home loan that refinances within forty-eight months an existing consumer home loan of the borrower when the new loan does not have a reasonable, tangible net benefit to the borrower, considering all the circumstances, including the terms of both the new and refinanced loans, the cost of the new loan, and the borrower's circumstances.
(a) a rebuttable presumption of reasonable, tangible, net benefit to the borrower occurs when:
(i) at the time the home loan is consummated, the borrower's total monthly debts, including amounts due under the home loan, do not exceed fifty percent of the borrower's monthly income as verified by tax returns, payroll receipts, or other third-party income verification; or
(ii) the borrower's monthly payment to pay the new consolidated debt is a minimum of twenty percent lower than the total of all monthly obligations being financed, taking into account costs and fees; or
(iii) there is a beneficial change for the borrower in the duration of the loan; or
(iv) the borrower receives a reasonable amount of cash in excess of and in relation to the cost and fees as part of the refinancing; or
(v) the borrower's note rate of interest is reduced by at least two percent; or
(vi) there is a change from an adjustable rate loan to a fixed rate loan, taking into account costs and fees and the costs can be recouped within two years; or
(vii) the borrower is able to recoup the costs of refinancing the loan within two years and reduces the interest rate by two points or the length of term by a minimum of five years.
(b) the home loan refinancing transaction is presumed to be a flipping if a home loan refinances an existing home loan that was consummated as a special mortgage originated, subsidized, or guaranteed by or through a state, tribal, or local government or a nonprofit organization, which either bears a below-market interest rate at the time the loan was originated or has nonstandard payment terms beneficial to the borrower, such as payments that vary with income, are limited to a percentage of income, or are not required at all under specified conditions, and if, as a result of the refinancing, the borrower loses one or more of the benefits of the special mortgage. /
Amend further, Section 37-23-40(3)(b), SECTION 1, page 10, line 18, by inserting after / fees / on line 18 /in excess of one percent of the total loan amount /.
Amend further, Section 37-3-201(2), SECTION 4B., page 22, beginning on line 22, by deleting item (d) in its entirety and inserting:
/ (d) of any amount with scheduled loan payments of fewer than one hundred twenty days, a rate that does not exceed the rate posted and filed pursuant to Section 37-3-305 during the term of the loan for not more than six renewals not to exceed two hundred forty days. Notwithstanding another provision of law, interest must not be charged upon past due interest on loans made pursuant to this subsection. In connection with loans made pursuant to this subsection:
(i) the lender must disclose in writing to the borrower, before the loan transaction is finalized, the daily, monthly, and yearly interest rates;
(ii) a prepayment penalty must not be imposed;
(iii) fees must not be charged, other than the lien recording fee in the exact amount of the governmental entity's charge;
(iv) after not more than six renewals not to exceed two hundred forty days, the interest freezes and principal is payable in six equal monthly installments over one hundred eighty days; and
(v) notwithstanding another provision of law, the lender must extend a twenty-day right-to-cure period before exercising his right to repossess the vehicle represented by the title securing the loan. /
Renumber sections to conform.
Amend title to conform.
Senator SHORT explained the amendment.
Senator SHORT moved that the amendment be adopted.
The amendment was adopted.
At 5:51 P.M., on motion of Senator MOORE, the Senate receded from business not to exceed five minutes.
At 6:07 P.M., the Senate resumed.
Senator RANKIN proposed the following Amendment No. 34 (438R020.LAR), which was adopted:
Amend the bill, as and if amended, page 15, lines 25-26 by deleting / A borrower may not bring a class action for a violation of this article./
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the amendment.
The amendment was adopted.
Senators THOMAS and SHORT proposed the following Amendment No. 33 (DKA\3402DW03), which was adopted:
Amend the bill, as and if amended, Section 37-23-20(11)(e), SECTION 1, page 6, line 37, by deleting / credit transaction / and inserting / real estate secured transaction, except as provided in subitem (f) /.
Amend further, Section 37-23-20(11)(f), SECTION 1, page 7, by inserting after line 28:
/ (v) premiums or other charges paid at or before closing for credit life, accident, health, or loss-of-income insurance or debt-cancellation coverage that provides for cancellation of all or part of the consumer's liability in the event of the loss of life, health, or income or in the case of accident and written in connection with a transaction for a security interest in a residential manufactured home as defined in Section 37-1-301(24) which is to be occupied by the borrower as the borrower's principal dwelling and is not secured by an interest in real estate; /
Amend further, Section 37-23-70(A), SECTION 1, page 13, line 28, by adding after /lender/ the following / in a real estate secured transaction. Notwithstanding any provision of law in this chapter, this subsection does not apply to a security interest in a residential manufactured home, as defined in Section 37-1-301(24), which is to be occupied by the borrower, as the borrowers principal dwelling and is not secured by an interest in real estate. /
Amend further, SECTION 6, as found on page 23, by deleting the SECTION in its entirety and inserting:
/ SECTION 6. Upon approval by the Governor, this act takes effect on July 1, 2004, except that Section 37-23-20(11) and 37-23-70(A) and all sections concerning credit life, accident, health, or loss-of-income insurance or debt cancellation insurance take effect on January 1, 2005. /
Renumber sections to conform.
Amend title to conform.
Senator THOMAS explained the amendment.
Senator MOORE spoke on the amendment.
At 6:31 P.M., on motion of Senator MATTHEWS, the Senate receded from business not to exceed four minutes.
At 6:35 P.M., the Senate resumed.
The "ayes" and "nays" were demanded and taken, resulting as follows:
Alexander Branton Courson Drummond Elliott Giese Gregory Grooms Hawkins Hayes Knotts Kuhn Leatherman * Martin McGill * Mescher Moore O'Dell Peeler Rankin Ravenel Reese Ritchie Ryberg Setzler Short Smith, J. Verne * Thomas Verdin
Anderson Ford Glover Jackson Land Malloy Matthews Patterson Pinckney Richardson Waldrep
*These Senators were not present in the Chamber at the time the vote was taken and the votes were recorded by leave of the Senate, with unanimous consent.
The amendment was adopted.
Amend the bill, as and if amended, by striking the bill in its entirety and inserting the following:
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 23 TO TITLE 37, RELATING TO CONSUMER PROTECTION SO AS TO ENACT THE "SOUTH CAROLINA HIGH-COST AND CONSUMER HOME LOANS ACT", TO PROHIBIT A MUNICIPALITY OR COUNTY FROM REGULATING THE SUBJECT LOANS, TO DEFINE THE SUBJECT LOANS, TO PROHIBIT PROVISIONS IN A HIGH-COST HOME LOAN AGREEMENT FOR ACCELERATION, BALLOON PAYMENT, NEGATIVE AMORTIZATION, INTEREST INCREASE, ADVANCE PAYMENTS FROM LOAN PROCEEDS, AND ADDITIONAL FEES IN CERTAIN CIRCUMSTANCES, TO REQUIRE A HIGH-COST HOME LOAN LENDER TO ENSURE THAT THE BORROWER RECEIVES THE OPPORTUNITY FOR LOAN COUNSELING AND IS REASONABLY ABLE TO MEET HIS LOAN OBLIGATIONS, TO PROHIBIT THE FINANCING OF CERTAIN FEES IN CONNECTION WITH MAKING A HIGH-COST HOME LOAN AND THE CHARGING OF POINTS AND FEES IN CONNECTION WITH THE REFINANCING OF AN EXISTING HIGH-COST HOME LOAN, TO PROVIDE FOR CERTAIN DISCLOSURES TO THE BORROWER BEFORE THE LOAN IS MADE, TO REGULATE THE PAYMENT OF A HOME IMPROVEMENT CONTRACTOR FROM THE PROCEEDS OF A HIGH-COST HOME LOAN, TO PROVIDE THAT A VIOLATION OF THE HIGH-COST HOME LOAN PROHIBITIONS OR RESTRICTIONS IS AN UNFAIR TRADE PRACTICE PURSUANT TO CHAPTER 5 OF TITLE 39 AND TO REQUIRE ELECTION BY THE CLAIMANT, TO PROVIDE FOR ENFORCEMENT BY THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS, ATTORNEY GENERAL, COMMISSIONER OF BANKING, OR A PARTY TO THE LOAN, TO PROVIDE FOR REMEDIES AND PENALTIES FOR VIOLATIONS OF THE HIGH-COST HOME LOAN RESTRICTIONS AND PROHIBITIONS INCLUDING ATTORNEY'S FEES, TO PROVIDE FOR ESTABLISHMENT OF GOOD FAITH BY A HIGH-COST HOME LOAN LENDER, TO PROVIDE CERTAIN RESTRICTIONS AND PROHIBITIONS IN THE MAKING OF A CONSUMER HOME LOAN, INCLUDING RESTRICTIONS ON THE CHARGING OF POINTS AND FEES AND THE PROHIBITION OF "FLIPPING" A LOAN, FINANCING CERTAIN INSURANCE PREMIUMS, AND ENCOURAGING DEFAULT OF A PREVIOUS LOAN, TO PROVIDE THAT A VIOLATION OF THE CONSUMER HOME LOAN RESTRICTIONS OR PROHIBITIONS IS AN UNFAIR TRADE PRACTICE AND TO REQUIRE ELECTION BY THE CLAIMANT, TO PROVIDE FOR PENALTIES AND REMEDIES INCLUDING ATTORNEY'S FEES; TO PROVIDE FOR REPAYMENT WITHOUT PENALTY OF CERTAIN LOANS; TO AMEND SECTION 37-10-103, RELATING TO PREPAYMENT WITHOUT PENALTY OF CERTAIN LOANS, SO AS TO INCREASE THE LOAN LIMIT FROM ONE HUNDRED THOUSAND DOLLARS TO ONE HUNDRED FIFTY THOUSAND DOLLARS; TO AMEND SECTION 37-1-109, RELATING TO THE CHANGE OF DOLLAR AMOUNTS IN THE CONSUMER PROTECTION CODE, SO AS TO ADD THAT LIMIT OF ONE HUNDRED FIFTY THOUSAND DOLLARS AS AN AMOUNT SUBJECT TO CHANGE ACCORDING TO CERTAIN INDICES; BY ADDING SECTIONS 37-2-309 AND 37-3-308 SO AS TO REQUIRE CERTAIN DISCLOSURES IN CONNECTION WITH THE CREDIT SALE OF A PURCHASER-OCCUPIED MANUFACTURED HOME OR A LOAN FOR THE PURCHASE, REFINANCING, OR CONSOLIDATION OF A LOAN SECURED BY A BORROWER-OCCUPIED MANUFACTURED HOME; TO AMEND SECTION 37-5-203, RELATING TO CIVIL PENALTIES FOR VIOLATION OF DISCLOSURE PROVISIONS, SO AS TO REFERENCE THE DISCLOSURES REQUIRED IN CONNECTION WITH A CREDIT SALE OF OR LOAN SECURED BY A MANUFACTURED HOME AND TO INCREASE THE PENALTY AMOUNT; TO AMEND SECTION 37-5-108, AS AMENDED, RELATING TO UNCONSCIONABILITY IN CONSUMER CREDIT TRANSACTIONS, SO AS TO PROVIDE THAT, IF, CONSIDERING CERTAIN FACTORS, THE CONSUMER IS UNABLE TO MAKE SCHEDULED PAYMENTS ON THE OBLIGATION WHEN DUE OR IS PERMITTED TO ENTER INTO A TRANSACTION FROM WHICH HE DERIVES NO SUBSTANTIAL BENEFIT, THE COURT MAY FIND THE TRANSACTION UNCONSCIONABLE; AND TO AMEND SECTION 37-3-201, AS AMENDED, RELATING TO LOAN FINANCE CHARGES ON CONSUMER LOANS, SO AS TO PROVIDE THAT CERTAIN RESTRICTIONS APPLY TO A LOAN BY A SUPERVISED LENDER WITH SCHEDULED LOAN PAYMENTS OF FEWER THAN ONE HUNDRED TWENTY DAYS INCLUDING DISCLOSURE REQUIREMENTS, PROHIBITION ON PREPAYMENT PENALTIES, AND LIMITS ON RENEWALS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 37 of the 1976 Code is amended by adding:
High-Cost and Consumer Home Loans
Article 1
General Provisions
Section 37-23-10. This chapter may be cited as the 'South Carolina High-Cost and Consumer Home Loans Act'.
(B) A municipality or county may not enact any ordinance or law that regulates the terms of high-cost home loans or consumer home loans.
Section 37-23-20. For purposes of this chapter:
(1) 'Affiliate' means a company that controls, is controlled by, or is under common control with another company, as described in the Bank Holding Company Act of 1956 (12 U.S.C. Section 1841 et seq.) as amended.
(2) 'Annual percentage rate' means the annual percentage rate for the loan calculated according to the provisions of the federal Truth-in-Lending Act (15 U.S.C. Section 1601, et seq.), and the regulations promulgated under it by the Federal Reserve Board, both as amended.
(3) 'Broker' or 'mortgage broker' means a person or organization in the business of soliciting, processing, placing, or negotiating mortgage loans for others or offering to process, place, or negotiate mortgage loans for others. A broker or mortgage broker also includes a person or organization who brings borrowers or lenders together to obtain mortgage loans or renders a settlement service as described in 24 CFR Part 3500.2(a)(16)(ii).
(4) 'Consumer home loan' means a loan in which:
(a) the borrower is a natural person;
(b) the debt is incurred by the borrower primarily for personal, family, or household purposes; and
(c) the loan is secured by a mortgage on real estate upon which is located or is to be located a structure designed principally for occupancy of from one to four families and that is or is to be occupied by the borrower as the borrower's principal dwelling.
(5) 'Conventional conforming discount points' means loan discount points knowingly paid by the borrower for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate applicable to the loan, so long as the home loan has an annual percentage rate that does not exceed the conventional mortgage rate by more than one percentage point.
(6) 'Conventional mortgage rate' means the required net yield for a ninety-day standard mandatory delivery commitment for a reasonably comparable loan from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, whichever is greater.
(7) 'Conventional prepayment penalty' means a prepayment penalty or fee that may be collected or charged in a home loan and that is authorized by law other than by this chapter, provided the home loan (a) does not have an annual percentage rate that exceeds the conventional mortgage rate by more than two percentage points; and (b) does not permit prepayment fees or penalties that exceed two percent of the amount prepaid.
(8) 'Flipping' a consumer home loan means the making of a consumer home loan that refinances within forty-eight months an existing consumer home loan of the borrower when the new loan does not have a reasonable, tangible net benefit to the borrower, considering all the circumstances, including the terms of both the new and refinanced loans, the cost of the new loan, and the borrower's circumstances.
(a) A rebuttable presumption of reasonable, tangible, net benefit to the borrower occurs when:
(i) at the time the home loan is consummated, the borrower's total monthly debts, including amounts due under the home loan, do not exceed fifty percent of the borrower's monthly income as verified by tax returns, payroll receipts, or other third-party income verification; or
(ii) the borrower's monthly payment to pay the new consolidated debt is a minimum of twenty percent lower than the total of all monthly obligations being financed, taking into account costs and fees; or
(iii) there is a beneficial change for the borrower in the duration of the loan; or
(iv) the borrower receives a reasonable amount of cash in excess of and in relation to the cost and fees as part of the refinancing; or
(v) the borrower's note rate of interest is reduced by at least two percent; or
(vi) there is a change from an adjustable rate loan to a fixed rate loan, taking into account costs and fees and the costs can be recouped within two years; or
(vii) the borrower is able to recoup the costs of refinancing the loan within two years and reduces the interest rate by two points or the length of term by a minimum of five years.
(b) the home loan refinancing transaction is presumed to be a flipping if a home loan refinances an existing home loan that was consummated as a special mortgage originated, subsidized, or guaranteed by or through a state, tribal, or local government or a nonprofit organization, which either bears a below-market interest rate at the time the loan was originated or has nonstandard payment terms beneficial to the borrower, such as payments that vary with income, are limited to a percentage of income, or are not required at all under specified conditions, and if, as a result of the refinancing, the borrower loses one or more of the benefits of the special mortgage.
(9) 'High-cost home loan' means a loan, other than an open-end credit plan or a reverse mortgage transaction, in which the:
(a) principal amount of the loan does not exceed the lesser of:
(i) the conforming loan size limit for a single-family dwelling as established from time to time by the Federal National Mortgage Association; or
(ii) three hundred thousand dollars;
(b) borrower is a natural person;
(c) debt is incurred by the borrower primarily for personal, family, or household purposes;
(d) loan is secured by either:
(i) a security interest in a residential manufactured home, as defined in Section 37-1-301(24) which is to be occupied by the borrower as the borrower's principal dwelling; or
(ii) a mortgage on real estate upon which there is located or there is to be located a structure designed principally for occupancy of from one to four families and which is or is to be occupied by the borrower as the borrower's principal dwelling; and
(e) terms of the loan exceed one or more of the thresholds as defined in item (14) of this section.
(10) 'Lender' includes, but is not limited to, a mortgage broker or a mortgage banker originating a loan in a table-funded loan transaction in which the broker or banker is identified as the original payee of the note.
(11) 'Obligor' means each borrower, co-borrower, cosigner, or guarantor obligated to repay a loan.
(12) 'Originator' means an employee of a mortgage loan broker whose primary job responsibilities include direct contact with and informing loan applicants of the rates, terms, disclosure, and other aspects of the mortgage. It does not mean an employee whose primary job responsibilities are clerical in nature, such as processing the loan.
(13) 'Points and fees' means:
(a) items required to be disclosed pursuant to Sections 226.4(a) and 226.4(b) of Title 12 of the Code of Federal Regulations, as amended, except interest or the time-price differential;
(b) charges for items listed in Section 226.4(c)(7) of Title 12 of the Code of Federal Regulations, as amended from time to time, but only if the lender receives direct or indirect compensation in connection with the charge or the charge is paid to an affiliate of the lender; otherwise, the charges are not included within the meaning of the phrase 'points and fees';
(c) compensation paid directly by the borrower to a mortgage broker not otherwise included in subitem (a) or (b) of this item;
(d) the maximum prepayment fees and penalties that may be charged or collected pursuant to the terms of the loan documents;
(e) premiums or other charges paid at or before closing for credit life, accident, health, or loss-of-income insurance or debt-cancellation coverage that provides for cancellation of all or part of the consumer's liability in the event of the loss of life, health, or income or in the case of accident and written in connection with the real estate secured transaction, except as provided in subitem (f); and
(f) 'points and fees' does not include:
(i) taxes, filing fees, recording, and other charges and fees paid or to be paid to public officials for determining the existence of or for perfecting, releasing, or satisfying a security interest; and
(ii) bona fide and reasonable fees paid to a person other than a lender or an affiliate of the lender or to the mortgage broker or an affiliate of the mortgage broker, and the person receiving the fee does not receive direct or indirect compensation, for the following: fees for tax payment services, fees for flood certification, fees for pest infestation and flood determinations, appraisal fees, fees for inspections performed before closing, credit reports, surveys, attorney's fees if the borrower has the right to select the attorney, commissions, and other compensation paid to licensed real estate brokers and agents, notary fees, escrow charges, and flood insurance premiums not otherwise included pursuant to subitem (a).
(iii) premiums for insurance against title defects. Premiums for insurance against loss of or damage to property or against liability arising out of the ownership or use of property may be excluded from the points and fees if the insurance coverage may be obtained from a person of the borrower's choice and this fact is disclosed and if the coverage is obtained from or through the creditor or its affiliate, the premium for the initial term of insurance coverage is disclosed. If the term of insurance is less than the term of the transaction, the term of insurance must be disclosed also. The premium may be disclosed on a unit-cost basis only in open-end credit transactions, closed-end credit transactions by mail or telephone pursuant to Section 226.17(g) of Title 12 of the Code of Federal Regulations, and certain closed-end credit transactions involving an insurance plan that limits the total amount of indebtedness subject to coverage.
(iv) fees or charges payable or paid by a party in connection with a local, state, or federal government-sponsored mortgage insurance or guaranty program including, but not limited to, Federal Housing Administration, Veterans Administration, South Carolina Housing Finance and Development Authority programs, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank, or price adjustment.
(v) premiums or other charges paid at or before closing for credit life, accident, health, or loss-of-income insurance or debt-cancellation coverage that provides for cancellation of all or part of the consumer's liability in the event of the loss of life, health, or income or in the case of accident and written in connection with a transaction for a security interest in a residential manufactured home as defined in Section 37-1-301(24) which is to be occupied by the borrower as the borrower's principal dwelling and is not secured by an interest in real estate.
(14) 'Thresholds' means either (a) or (b) or (c) in a loan transaction, whichever is applicable:
(a) without regard to whether the loan transaction is a 'residential mortgage transaction' as the term 'residential mortgage transaction' is defined in Section 226.2(a)(24) of Title 12 of the Code of Federal Regulations, as amended, the annual percentage rate of the loan at the time the loan is consummated is such a rate that the loan is considered to be a 'mortgage' pursuant to Section 152 of the Home Ownership and Equity Protection Act of 1994 (Pub. Law 103-25, [15 U.S.C. Section 1602(aa)]), as amended, and regulations adopted pursuant to it by the Federal Reserve Board, including Section 226.32 of Title 12 of the Code of Federal Regulations, as amended, except with regard to a mortgage or loan secured by a nonreal estate manufactured housing lien, the term 'threshold' means the annual percentage rate of the nonreal estate secured manufactured housing lien at the time the mortgage or loan is consummated exceeds by more than ten percentage points the yield on United States Treasury securities having comparable periods of maturity as of the fifteenth day of the month immediately preceding the month in which the application of the extension of credit is received by the lender;
(b) the total points and fees payable by the borrower at or before the loan closing exceed:
(i) five percent of the total loan amount if the total loan amount is twenty thousand dollars or more;
(ii) the lesser of eight percent of the total loan amount or one thousand dollars if the total loan amount is less than twenty thousand dollars; or
(iii) conventional prepayment penalty; or
(c) the loan documents permit the lender to charge or collect prepayment fees or penalties more than thirty months after the loan closing or that exceed, in the aggregate, more than two percent of the amount prepaid.
(15) 'Total loan amount' means the same as the term 'total loan amount' means in Section 226.32 of Title 12 of the Code of Federal Regulations and must be calculated in accordance with the Federal Reserve Board's Official Staff Commentary to that section.
High-Cost Home Loans
Section 37-23-30. A high-cost home loan agreement may not contain:
(1) a call provision that permits the lender, in its sole discretion, to accelerate the indebtedness. This item does not apply when repayment of the loan is accelerated by default, or pursuant to a due-on-sale provision, or some other provision of the loan documents unrelated to the payment schedule;
(2) a balloon payment provision that contains a scheduled payment more than twice as large as the average of earlier scheduled payments. This provision does not apply when the payment schedule is adjusted to the seasonal or irregular income of the borrower;
(3) a negative amortization provision with a periodic payment schedule that causes the principal balance to increase;
(4) a provision that increases the interest rate after default. This provision does not apply to interest rate changes in a variable rate loan otherwise consistent with the provisions of the loan documents, so long as the change in the interest rate is not triggered by the event of default or the acceleration of the indebtedness;
(5) terms under which more than two periodic payments required pursuant to the loan are consolidated and paid in advance from the loan proceeds provided to the borrower;
(6) charges to a borrower for fees to modify, renew, extend, or amend a high-cost home loan or to defer a payment due pursuant to the terms of a high-cost home loan; or
(7) contain as a part of the loan agreement a choice of law provision identifying a state other than South Carolina, unless otherwise allowed under federal law.
Section 37-23-40. The lender of a high-cost home loan may not:
(1) make a high-cost home loan without first receiving a written certification from a counselor approved by the State Housing Finance and Development Authority that the borrower has received counseling on the advisability of the loan transaction and the appropriate loan for the borrower. The Department of Consumer Affairs shall specify the information that must be provided by the lender and reviewed by the consumer credit counselor;
(2) make a high-cost home loan unless the lender reasonably believes at the time the loan is consummated that one or more of the obligors, when considered individually or collectively, is able to make the scheduled payments to repay the obligation based upon a consideration of their current and expected income, current obligations, employment status, and other financial resources other than the borrower's equity in the dwelling that secures repayment of the loan. An obligor is presumed to be able to make the scheduled payments to repay the obligation if, at the time the loan is consummated, the obligor's total monthly debts, including amounts owed pursuant to the loan, do not exceed fifty percent of the obligor's monthly gross income as verified by the credit application, the obligor's financial statement, a credit report, financial information provided to the lender by or on behalf of the obligor, or another authoritative means. A presumption of inability to make the scheduled payments to repay the obligation does not arise solely from the fact that, at the time the loan is consummated, the obligor's total monthly debts, including amounts owed under the loan, exceed fifty percent of the obligor's monthly gross income;
(3) directly or indirectly finance:
(a) prepayment fees or penalties payable by the borrower in a refinancing transaction if the lender or an affiliate of the lender is the noteholder of the note being refinanced;
(b) points and fees in excess of one percent of the total loan amount; or
(c) other charges payable to third parties, unless those charges are specifically excluded from 'points and fees' pursuant to Section 37-23-20(13)(f);
(4) charge a borrower points and fees in connection with a high-cost home loan if the proceeds of the high-cost home loan are used to refinance an existing high-cost home loan held by the same lender as noteholder; or
(5) pay a contractor pursuant to a home improvement contract from the proceeds of a high-cost home loan other than:
(a) by an instrument payable jointly to the borrower and the contractor; or
(b) at the election of the borrower, through a third-party escrow agent in accordance with terms established in a written agreement signed by the borrower, the lender, and the contractor before the disbursement; or
(c) for purposes of this article, a home improvement contract does not include money for a new home construction loan or a purchase money loan for a home.
Section 37-23-45. (A) At the time the borrower receives the good faith estimate under the Real Estate Settlement and Procedures Act (RESPA) and before the scheduled closing of a high-cost home loan, the broker or mortgage broker of a loan must disclose in writing the amount being earned on the loan. The Department of Consumer Affairs shall provide a disclosure form to include the following:
(1) the dollar amount of the yield spread premium and the percentage of the yield spread premium in relation to the loan amount. For purposes of this item, 'yield spread premium' is the amount paid to the broker by the lender based on the difference between the interest rate at which the broker originates the loan and the par, or market rate offered by a lender;
(2) an itemization of dollar amounts for points, fees, and commissions with a combined total given. A percentage of the combined total should be specified in relation to the loan amount; and
(3) a dollar amount total of items 37-23-45(A)(1) and (2) and a percentage of the total specified in relation to the total amount of the loan.
(B) The form must include a signature line for the borrower to acknowledge that he has received the disclosures, the disclosures have been explained to him, he understands them, and he voluntarily enters into the loan transaction.
Section 37-23-50. (A) If a lender, or party charged with a violation, when making a high-cost home loan violates the provisions of this article, the borrower has a right in action to recover from the lender or party charged with the violation, a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars for each loan transaction. A borrower may not bring an action for a violation of this article more than six years after the violation occurred. This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt if the action is brought more than six years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action; and
(B)(1) If the court finds, as a matter of law, that the agreement or transaction violated the provisions of this article at the time it was made, the court may:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award:
(i) not more than the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge;
(ii) not more than double the amount of the excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(C) In an action in which it is found that a lender or party charged with a violation has violated this chapter, the court shall award to the borrower the costs of the action and to his attorney his reasonable fee. In determining the attorney's fees, the amount of the recovery on behalf of the borrower is not controlling.
(D) This article establishes specific consumer protections in consumer home loans in addition to other consumer protections that may be otherwise available by law.
(E) The provisions of this article apply to:
(1) structuring a loan transaction as an open-end credit plan for the purpose and with the intent of evading the provisions of this article if the loan would be a high-cost home loan if it were structured as a closed-end loan;
(2) dividing a loan transaction into separate parts for the purpose and with the intent of evading the provisions of this article; or
(3) other subterfuge.
(F) The Administrator of the Department of Consumer Affairs, the Attorney General, the Commissioner of Banking, or any party to a high-cost home loan may enforce the provisions of this article. The penalties and remedies provided in this article are in addition to and cumulative of penalties and remedies available pursuant to other provisions of law.
Section 37-23-60. A lender of a high-cost home loan who acts in good faith but through a bona fide unintentional error, notwithstanding the maintenance of procedures reasonably adapted to avoid errors, fails to comply with this article must make restitution to the borrower. Within forty-five days after the discovery of the compliance failure or receipt of written notice of the compliance failure, the lender must notify the borrower and make the necessary adjustments to the loan to make the high-cost home loan satisfy the requirements of Sections 37-23-30, 37-23-40, and 37-23-45. If the harm to the borrower cannot be remedied by compliance with the high cost loan requirement of Sections 37-23-30, 37-23-40, and 37-23-45, the lender must change the terms of the loan in a manner beneficial to the borrower so that the loan is no longer considered a high-cost home loan subject to the provisions of this article. Examples of a bona fide error include clerical, calculation, computer malfunction and programming, and printing errors. An error of legal judgment with respect to a person's obligations pursuant to this article is not a bona fide error.
Consumer Home Loans
Section 37-23-70. (A) It is unlawful for a lender in a consumer home loan to finance, directly or indirectly, credit life, disability, or unemployment insurance, or other life or health insurance premiums; except that insurance premiums calculated and paid on a monthly basis are not considered to be financed by the lender in a real estate secured transaction. Notwithstanding any provision of law in this chapter, this subsection does not apply to a security interest in a residential manufactured home, as defined in Section 37-1-301(24), which is to be occupied by the borrower, as the borrowers principal dwelling and is not secured by an interest in real estate.
(B) A lender may not engage knowingly or intentionally in the unfair act or practice of 'flipping' a consumer home loan. This provision applies regardless of whether the interest rate, points, fees, and charges paid or payable by the borrower in connection with the refinancing exceed those thresholds specified in Section 37-23-20(14).
(C) A lender may not recommend or encourage default on an existing loan or other debt before and in connection with the closing or planned closing of a consumer home loan that refinances all or a portion of the existing loan or debt.
(D) At the time of application for a mortgage loan, the mortgage broker, originator, or employee shall provide the borrower with a document specifying the agency designated to receive complaints or inquiries about the origination and making of the loan, with the telephone number and address of the agency. The consumer shall sign a copy of the document acknowledging receipt of this disclosure and the copy must be maintained in the files of the mortgage broker or originator.
(E) The making of a consumer home loan that violates this section is a violation of the provisions of this article and the borrower has a right in action to recover from the lender or party charged with the violation, a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars for each loan transaction. A borrower may not bring an action for a violation of this article more than six years after the violation occurred. This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt if the action is brought more than six years from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in the action.
(F)(1) If the court finds, as a matter of law, that the agreement or transaction violated the provisions of this article at the time it was made, the court may:
(a) refuse to enforce the agreement, or a term, or part of the agreement or transaction that the court determines to have been unlawful at the time it was made;
(b) enforce the remainder of the agreement without the unlawful term or part or limit the application of the unlawful term or part to avoid an unlawful result;
(c) rewrite or modify the agreement to eliminate an unlawful term, part, or result and enforce the new agreement; or
(d) award either one of the following:
(i) not more than the total amount of the loan finance charge and allow repayment of the unpaid balance of the loan without any finance charge; or
(ii) not more than double the amount of the excess loan finance charge or other charges or fees actually received by the creditor or paid by the debtor to a third party.
(2) An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.
(G) In an action in which it is found that a lender has violated this chapter, the court shall award to the borrower the costs of the action and to his attorney his reasonable fee. In determining the attorney's fees, the amount of the recovery on behalf of the debtor is not controlling.
(H) This article establishes specific consumer protections in consumer home loans in addition to consumer protections that may be otherwise available by law.
(I) The Administrator of the Department of Consumer Affairs, the Attorney General, the Commissioner of Banking, or a party to a consumer home loan may enforce the provisions of this article. The penalties and remedies provided in this article are in addition to and cumulative of penalties and remedies available pursuant to other provisions of law.
Section 37-23-75. (A) At the time the borrower receives the good faith estimate under the Real Estate Settlement and Procedures Act (RESPA) and before the scheduled closing of a consumer home loan, the broker or mortgage broker of a loan must disclose in writing the amount being earned on the loan. The Department of Consumer Affairs shall provide a disclosure form to include the following:
(1) the dollar amount of the yield spread premium and the percentage of the yield spread premium in relation to the loan amount. For purposes of this item, 'yield spread premium' is the amount paid to the broker by the lender based on the difference between the interest rate at which the broker originates the loan and the par, or market rate offered by a lender;
(2) an itemization of dollar amounts for points, fees, and commissions with a combined total given. A percentage of the combined total should be specified in relation to the loan amount; and
(3) a dollar amount total of items 37-23-75(A)(1) and (2) and a percentage of the total specified in relation to the total amount of the loan.
(B) The form must include a signature line for the borrower to acknowledge that he has received the disclosures, the disclosures have been explained to him, he understands them, and he voluntarily enters into the loan transaction.
Section 37-23-80. The debtor may prepay in full at any time without penalty the debt represented by a personal, family, or household purpose loan agreement that is secured in whole or in part by a first or junior lien on real estate if the aggregate of all sums advanced or contemplated by the parties in good faith to be advanced does not exceed one hundred fifty thousand dollars.
Section 37-23-85. A lender of a consumer home loan who acts in good faith but fails to comply with this article does not violate this article if the lender establishes that either:
(1) within forty-five days of the loan closing and before the institution of an action pursuant to this article, the lender notifies the borrower of the compliance failure, makes appropriate restitution, and makes necessary adjustments to the loan to make the consumer home loan satisfy the requirements of Section 37-23-70, 37-23-75, or 37-23-80; or
(2) the compliance failure was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid those errors, and within ninety days after the discovery of the compliance failure and before the institution of an action pursuant to this article or the receipt of written notice of the compliance failure, the lender notifies the borrower of the compliance failure, makes appropriate restitution, and makes necessary adjustments to the loan to make the consumer home loan satisfy the requirements of Sections 37-23-70, 37-23-75, and 37-23-80. Examples of a bona fide error include clerical, calculation, computer malfunction and programming, and printing errors. An error of legal judgment with respect to a person's obligations pursuant to this article is not a bona fide error."
SECTION 2. A. Section 37-10-103 of the 1976 Code is amended to read:
"Section 37-10-103. With respect to a loan agreement which is secured in whole or in part by a first or junior lien on real estate under which the aggregate of all sums advanced or contemplated by the parties in good faith to be advanced will not exceed one hundred thousand dollars.
(1) the debtor has the right to prepay the debt in full at any time without penalty;
(2) The rate of the loan finance charge is a fixed, nonvariable rate. This subsection does not apply:
(a) If the borrower otherwise agrees; and either
(b) The loan is primarily for a business or agricultural purpose or is used for the construction of any improvements on the real estate which provides the security for the loan; or
(c) The creditor makes the loan in accordance with any regulation governing alternative mortgage loans promulgated by the State Board of Financial Institutions or a federal regulatory agency. The debtor may prepay in full at any time without penalty the debt represented by a personal, family, or household purpose loan agreement that is secured in whole or in part by a first or junior lien on real estate if the aggregate of all sums advanced or contemplated by the parties in good faith to be advanced does not exceed one hundred fifty thousand dollars."
B. Section 37-1-109(6) of the 1976 Code is amended to read:
"(6) The dollar amounts in the following sections of this title are subject to change in accordance with this section: 37-2-104(1)(e), 37-2-106(1)(b), 37-2-203(1), 37-2-407(1), 37-2-705(1)(a) and (b), 37-3-104(1)(d), 37-3-203(1), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3), and (4), 37-10-103, and 37-23-80."
SECTION 3. A. Chapter 2, Title 37 of the 1976 Code is amended by adding:
"Section 37-2-309. (A) An estimate of the disclosures required by Section 37-2-301 is required in connection with a credit sale of a purchaser-occupied manufactured home not less than two days before the consummation of the transaction as defined in 12 C.F.R. Section 226.2(a)(13). The estimated disclosure must be accompanied by the itemization of the amount financed. With respect to a credit sale that is secured by real property, the disclosures required by the Federal Real Estate Settlement Procedures Act are applicable.
(B) If the seller turns down the applicant for the credit sale before making the disclosures, the disclosures as provided in subsection (A) are not required. With respect to a credit sale that is secured by real property, the disclosures required by the Federal Real Estate Settlement Procedures Act are applicable.
(C)(1) If the seller determines that a material term of the credit sale must change, then the seller shall redisclose the estimated disclosures to conform to the changed terms and the transaction must not be consummated until one day after the redisclosure.
(2) A material term of the credit sale includes:
(a) the number of payments of the transaction;
(b) a feature of the transaction causing it to be an alternative mortgage transaction as defined in 12 U.S. Code Section 3802(1) when the transaction as previously disclosed was not an alternative mortgage transaction;
(c) a term or fee in the transaction or combination of terms or fees causing the annual percentage rate to vary more than one quarter of one percent of the annual percentage rate previously disclosed; or
(d) any insurance premiums, prepaid finance charges, third-party fees, or preparation charges that vary from the previously disclosed insurance premiums, prepaid finance charges, third-party fees, or preparation charges by the lesser of five hundred dollars in the aggregate or one percent of the estimated amount disclosed pursuant to subsection (A) above."
B. Chapter 3, Title 37 of the 1976 Code is amended by adding:
"Section 37-3-308. (A) An estimate of the disclosures required by Section 37-3-301 is required in connection with a loan for the purchase, refinance, or consolidation of a loan secured by a borrower-occupied manufactured home not less than two days before the consummation of the transaction as defined in 12 C.F.R. Section 226.2(a)(13). The estimated disclosure must be accompanied by the itemization of the amount financed. With respect to a loan secured by real property, the disclosures required by the Federal Real Estate Settlement Procedures Act are applicable.
(B) If the lender turns down the applicant for the credit sale before making the disclosures, the disclosures as provided in subsection (A) are not required.
(C)(1) If the lender determines that a material term of the loan sale must change, then the lender shall redisclose the estimated disclosures to conform to the changed terms and the transaction must not be consummated until one day after the redisclosure.
(2) A material term of the credit sale includes:
(a) the number of payments of the transaction;
(b) a feature of the transaction causing it to be an alternative mortgage transaction as defined in 12 U.S. Code Section 3802(1) when the transaction as previously disclosed was not an alternative mortgage transaction;
(c) a term or fee in the transaction or combination of terms or fees causing the annual percentage rate to vary more than one quarter of one percent of the annual percentage rate previously disclosed; or
(d) any insurance premiums, prepaid finance charges, third-party fees, or preparation charges that vary from the previously disclosed insurance premiums, prepaid finance charges, third-party fees, or preparation charges by lesser than five hundred dollars in the aggregate or one percent of the estimated amount disclosed pursuant to subsection (A) above."
C. Section 37-5-203(1) and (2) of the 1976 Code is amended to read:
"(1) Except as otherwise provided in this section, a creditor who, in violation of the provisions of the Federal Truth in Lending Act or Section 37-2-309 or 37-3-308, fails to disclose information to a person entitled to the information under pursuant to this title is liable to that person in an amount equal to the sum of:
(a) twice the amount of the finance charge in connection with the transaction, but the liability pursuant to this paragraph shall item must be not less than one hundred dollars or more than one thousand dollars; and
(b) in the case of a successful action to enforce the liability under paragraph pursuant to item (a), the costs of the action together with reasonable attorney's fees as determined by the court.
(2) With respect to disclosures required by Sections 37-2-301 or 37-3-301, A a creditor has no liability under pursuant to this section if, within sixty days after discovering an error, and prior to before the institution of an action under pursuant to this section or the receipt of written notice of the error, the creditor notifies the person concerned of the error and makes whatever necessary adjustments in the appropriate account are necessary to assure that the person will is not be required to pay a finance charge in excess of the amount of percentage rate actually disclosed. With respect to disclosures required by Sections 37-2-309 or 37-3-308, a creditor has the liability stated in subsection (1)(a) if:
(i) the creditor fails to give the disclosures required by Sections 37-2-309 or 37-3-308; or
(ii) the disclosures required by Section 37-2-309(C) or 37-3-308(C) are provided but vary from the disclosures given at consummation pursuant to Section 37-2-301 or 37-3-301; if the cure or correction provisions of this subsection do not apply to those violations; and except that a lender is not liable unless the credit sale or loan transaction is consummated."
SECTION 4. A. Section 37-5-108(4) of the 1976 Code is amended to read:
"(4)(a) In applying subsection (1), consideration must be given to each of the following applicable factors, among others, such as, applicable but without limitation:
(a) belief by the seller, lessor, or lender at the time a transaction is entered into that there is no reasonable probability of payment in full of the obligation by the consumer or debtor; provided, however, that the rental renewals necessary to acquire ownership in a consumer rental-purchase agreement shall not be construed to be the obligation contemplated in this code section;
(b) (i) in the case of a consumer credit sale, consumer lease, or consumer rental-purchase agreement, knowledge by the seller or lessor at the time of the sale or lease of the inability of the consumer to receive substantial benefits from the property or services sold or leased;
(c) (ii) in the case of a consumer credit sale, consumer lease, consumer rental-purchase agreement, or consumer loan, gross disparity between the price of the property or services sold, leased, or loaned and the value of the property, services, or loan measured by the price at which similar property, services, or loans are readily obtainable in consumer credit transactions by like consumers;
(d)(iii) the fact that the creditor contracted for or received separate charges for insurance with respect to a consumer credit sale, consumer loan, or consumer rental-purchase agreement with the effect of making the sale or loan unconscionable, considered as a whole, unconscionable, when including the sale of insurance where from which the consumer could receive receives no potential benefit as referenced in Section 37-4-106(1)(a);
(e) (iv) the fact that the seller, lessor, or lender knowingly has knowingly taken advantage of the inability of the consumer or debtor reasonably to protect his interests by reason of physical or mental infirmities, ignorance, illiteracy, inability to understand the language of the agreement, or similar factors;
(f)(v) taking a nonpurchase money, nonpossessory security interest in household goods defined as the following: clothing, furniture, appliances, one radio and one television, linens, china, crockery, kitchenware, and personal effects, (including wedding rings) of the consumer and his or her dependents; provided except, that when a purchase money consumer credit transaction is refinanced or consolidated, the security lawfully collateralizing the prior previous consumer credit transaction can continue continues to secure the new consumer credit transaction, even if the new consumer credit transaction is for a larger amount or is in other respects a nonpurchase money consumer credit transaction; and provided further, that a nonpurchase money, nonpossessory security interest may be taken in the following: a (i) work of art;, (ii) electronic entertainment equipment, (except one television and one radio);, (iii) items acquired as antiques and which are over one hundred years of age;, and (iv) jewelry, (except wedding rings).
In construing subsection (f) subitem (v), the courts shall must be guided by the interpretations and rulings of the federal courts and the Federal Trade Commission to the Credit Trade Regulation Rule (16 C.F.R. PART 444).
(b) In applying subsection (1), consideration may be given to the extension of credit to a consumer if, considering the consumer's current and expected income, current obligations, and employment status, the creditor knows or should know that the consumer is unable to make the scheduled payment on the obligation when due. Rental renewals necessary to acquire ownership in a consumer rental-purchase agreement are not obligations contemplated in this item (b)."
B. Section 37-3-201(2) of the 1976 Code is amended to read:
"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge as provided follows on a loan:
(a) on loans with a cash advance not exceeding six hundred dollars, a maximum charge not exceeding the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate, provided except that a supervised lender may impose a finance charge at a rate less than provided in Section 34-29-140, and provided further except that the maximum charge shall may not exceed the rate posted and filed pursuant to Section 37-3-305;
(b) on loans with a cash advance exceeding six hundred dollars, and on all loans a loan, regardless of the dollar amount, made by Supervised Financial Organizations, any a rate filed and posted pursuant to Section 37-3-305; or
(c) on loans of any amount, eighteen percent per a year on the unpaid balances of principal;
(d) of any amount with scheduled loan payments of fewer than one hundred twenty days, a rate that does not exceed the rate posted and filed pursuant to Section 37-3-305 during the term of the loan for not more than six renewals not to exceed two hundred forty days. Notwithstanding another provision of law, interest must not be charged upon past due interest on loans made pursuant to this subsection. In connection with loans made pursuant to this subsection:
(i) the lender must disclose in writing to the borrower, before the loan transaction is finalized, the daily, monthly, and yearly interest rates;
(ii) a prepayment penalty must not be imposed;
(iii) fees must not be charged, other than the lien recording fee in the exact amount of the governmental entity's charge;
(iv) after not more than six renewals not to exceed two hundred forty days, the interest freezes and principal is payable in six equal monthly installments over one hundred eighty days; and
(v) notwithstanding another provision of law, the lender must extend a twenty-day right-to-cure period before exercising his right to repossess the vehicle represented by the title securing the loan."
SECTION 5. Chapter 58 of Title 40 of the 1976 Code is amended by adding:
"Section 40-58-72. (A) A mortgage broker or originator, in addition to duties imposed by other statutes or at common law, shall:
(1) safeguard and account for any money handled for the borrower;
(2) follow reasonable and lawful instructions from the borrower;
(3) act with reasonable skill, care, and diligence; and
(4) make reasonable efforts, with lenders with whom the broker regularly does business to secure a loan that is reasonably advantageous to the borrower considering all the circumstances, including the rates, charges, and repayment terms of the loan and the loan options for which the borrower qualifies with such lenders.
(B) If a mortgage broker or originator wilfully and intentionally violates the provisions of this section when placing or negotiating a mortgage loan, the borrower has a right in action, other than a class action, to recover from the mortgage broker, or originator charged with the violation, a penalty in an amount determined by the court of not less than one thousand five hundred dollars and not more than seven thousand five hundred dollars per mortgage loan transaction if the borrower prevails and shows that the action of the mortgage broker or originator is wilful and intentional. No borrower may bring a class action for a violation of this section. No borrower may bring an action for a violation of this section more than three years after the violation occurred.
(C) No mortgage broker or originator charged with the violation may be held liable in an action brought under this section for a violation if the mortgage broker or originator charged with the violation shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error.
(D)(1) If the court finds as a matter of law that a violation of subsection (A) of this section is unconscionable within the meaning of Section 37-5-108, the court may, in an action other than a class action, award not more than the mortgage broker's fee.
(2) An action pursuant to this section may not be brought more than three years after the violation occurred.
(E) A violation of this section does not impair rights on a debt.
(F) A mortgage broker or an originator is not liable for any penalty under this section if he notifies the borrower of a violation before the mortgage broker or an originator receives from the borrower written notice of the violation or the borrower has brought an action under this section, and the mortgage broker or an originator corrects the violation within sixty days after notifying the borrower. If the violation consists of a prohibited agreement, giving the borrower a corrected copy of the writing containing the violation is sufficient notification and correction. If the violation consists of an excess charge or accounting of money, correction shall be made by an adjustment or refund. The administrator and any official or agency of this State having supervisory authority over a mortgage broker or originator shall give prompt notice to a mortgage broker or originator of any violation discovered pursuant to an examination or investigation of the transactions, business, records, and acts of the mortgage broker or originator.
(G) In an action in which it is found that a mortgage broker and an originator has violated this section, the court shall award to the borrower, if he prevails, the costs of the action and to his attorney his reasonable fees. In determining attorney's fees, the amount of the recovery on behalf of the borrower is not controlling.
(H) The borrower cannot bring separate or multiple actions on a mortgage loan transaction against a mortgage broker and an originator working for the same mortgage broker. The remedies pursuant to this section are the total amount of recoverable remedies that a borrower may seek and obtain for each mortgage loan transaction in which a mortgage broker or originator is charged with a wilful and intentional violation."
SECTION 6. 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 chapter, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 7. Upon approval by the Governor, this act takes effect on July 1, 2004, except that Section 37-23-20(13) and 37-23-70(A) and all sections concerning credit life, accident, health, or loss-of-income insurance or debt cancellation insurance take effect on January 1, 2005./
Renumber sections to conform.
Amend title to conform.
There being no further amendments, the Bill was read the third time, passed and ordered sent to the House of Representatives with amendments.
Senator FAIR desired to be recorded as voting against the third reading of the Bill.
On motion of Senators HAWKINS, ALEXANDER, ANDERSON, BRANTON, COURSON, DRUMMOND, ELLIOTT, FAIR, FORD, GIESE, GLOVER, GREGORY, GROOMS, 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, J. VERNE SMITH, THOMAS, VERDIN and WALDREP, with unanimous consent, the Senate stood adjourned in honor of United States Army Reserve Major S. Philip Lenski, counsel to the Clerk of the Senate. Major Lenski is currently deployed as a JAG officer with the Combined Land Forces Command at Camp Doha, Kuwait.
At 6:39 P.M., on motion of Senator MOORE, the Senate adjourned to meet tomorrow at 11:00 A.M.
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