Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 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, hear the Word from the Prophet Isaiah, Chapter 52:7:

"How beautiful upon the mountains are the feet of the messenger who announces peace, who brings good news, who announces salvation, who says to Zion, 'Your God reigns'."
Let us pray.

Father we are hearing much about "summits." Lest we forget, please cause us to remember the Summit of Sinai when Moses went up to God and received the Ten Divine Commandments... straight from God... to order the good life for His people... forever!

Also, we need to remember the Summit of Calvary with the ultimate act of love and the Summit which gave us the Sermon on the Mount!

We've got it all. Father, help us to practice what we know... here, in Washington, and around the sin-struck planet!
Amen!

At 10:07 A.M., Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was not present.

Senator LEATHERMAN moved that a Call of the Senate be made. The following Senators answered the Call:

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

A quorum being present, the Senate resumed.

Senators GREGORY, HOLLAND, LAND, MATTHEWS, PATTERSON, RANKIN and REESE recorded their presence subsequent to the Call of the Senate.

On motion of Senator FAIR, with unanimous consent, the members of the Corrections and Penology Committee were granted leave to attend a committee meeting, be counted in any quorum calls, and to be allowed to vote from the balcony.

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

The following appointment was transmitted by the Honorable Mark C. Sanford:

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

Martinez Masterson, P.O. Box 481, Ridgeland, S.C. 29936 VICE Judge Lavell (resigned)

Senator GIESE introduced Dr. John Eady of Columbia, S.C., Doctor of the Day.

At 12:00 P.M., Senator RANKIN requested a leave of absence beginning at 10:00 P.M. tonight and lasting until 11:00 A.M. Monday, May 19, 2003.

At 2:05 P.M., Senator DRUMMOND requested a leave of absence from 8:00 - 2:00 P.M. Friday.

At 2:30 P.M., Senator RAVENEL requested a leave of absence beginning at 4:30 P.M. today and lasting until 4:30 A.M. Sunday.

At 4:25 P.M., Senator GLOVER requested a leave of absence beginning at 7:00 P.M. and lasting until Noon on Monday, May 19, 2003.

At 4:25 P.M., Senator JACKSON requested a leave of absence beginning at 7:00 P.M. and lasting until Noon on Monday, May 19, 2003.

At 4:25 P.M., Senator FORD requested a leave of absence beginning at 7:00 P.M. and lasting until Noon on Monday, May 19, 2003.

At 6:31 P.M., Senator ANDERSON requested a leave of absence beginning at 7:00 P.M. and lasting until Noon on Monday, May 19, 2003.

The following were introduced:

S. 702 (Word version) -- Senator Knotts: A CONCURRENT RESOLUTION TO CONGRATULATE MR. SAMUEL A. CHEATHAM OF LEXINGTON UPON HIS RETIREMENT FROM THE CLEMSON UNIVERSITY COOPERATIVE EXTENSION SERVICE, TO COMMEND HIM FOR HIS MANY YEARS OF HARD WORK AND DEDICATED SERVICE TO HIS COMMUNITY AND THE STATE OF SOUTH CAROLINA, AND TO WISH HIM AND HIS FAMILY MUCH HAPPINESS UPON HIS RETIREMENT.
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The Concurrent Resolution was adopted, ordered sent to the House.

S. 703 (Word version) -- Senator Knotts: A CONCURRENT RESOLUTION TO EXPRESS THE SINCERE GRATITUDE OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO MR. ARNOLD SCREEN OF LEXINGTON FOR HIS MANY YEARS OF SERVICE TO HIS LOCAL COMMUNITY AND THE STATE OF SOUTH CAROLINA, UPON RETIRING FROM HIS CURRENT POSITION AS LEXINGTON COUNTY SENIOR EXTENSION AGENT OF CLEMSON UNIVERSITY EXTENSION SERVICE AND TO WISH HIM MANY YEARS OF CONTINUED HAPPINESS.
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The Concurrent Resolution was adopted, ordered sent to the House.

H. 4118 (Word version) -- Rep. Hayes: A JOINT RESOLUTION TO PROVIDE FOR AN ELEVEN MILL INCREASE IN THE LEVY OF TAXES FOR SCHOOL PURPOSES IN DILLON COUNTY FOR THE FISCAL YEAR BEGINNING JULY 1, 2003, AND ENDING JUNE 30, 2004.

Read the first time and ordered placed on the local and uncontested Calendar.

H. 4176 (Word version) -- Rep. Anthony: A BILL TO AMEND ACT 231 OF 1993, RELATING TO THE BOARD OF ELECTION AND REGISTRATION FOR UNION COUNTY, SO AS TO REDUCE THE MEMBERSHIP OF THE BOARD FROM NINE MEMBERS TO EIGHT MEMBERS.

Read the first time and ordered placed on the local and uncontested Calendar.

H. 4204 (Word version) -- Reps. J. H. Neal, 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. 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 CONGRATULATE JOSHUA SIMS PATTERSON OF HOPKINS ON BEING CHOSEN AS A MOREHEAD SCHOLARSHIP RECIPIENT AT THE UNIVERSITY OF NORTH CAROLINA CHAPEL HILL, TO COMMEND HIM FOR HIS HARD WORK AND COMMITMENT TO ACADEMIC EXCELLENCE, AND TO WISH HIM MUCH SUCCESS IN ALL OF HIS FUTURE ENDEAVORS.

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

H. 4213 (Word version) -- Rep. Harrison: A CONCURRENT RESOLUTION TO EXTEND THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY TO THE DREHER HIGH SCHOOL "DEVILS" OF COLUMBIA AND THEIR COACH, DANIEL BROOKS, ON WINNING THE 2003 CLASS AAA GIRLS' TRACK AND FIELD STATE CHAMPIONSHIP TITLE AND TO COMMEND THEM FOR THEIR HARD WORK, COMPETITIVE SPIRIT, AND DEDICATION THROUGHOUT THEIR SEASON.

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

H. 4214 (Word version) -- Rep. Lourie: A CONCURRENT RESOLUTION TO CONGRATULATE THE RICHLAND NORTHEAST HIGH SCHOOL'S MODEL UNITED NATIONS CLUB AND THE CLUB'S SPONSOR-ADVISER, MS. LYNN WASHINGTON, ON WINNING A FOURTEENTH CONSECUTIVE FIRST PLACE AWARD AT THE NATIONAL HIGH SCHOOL MODEL UNITED NATIONS CONFERENCE.

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

H. 4215 (Word version) -- Reps. Walker, W. D. Smith, Davenport, Littlejohn, Lee, Talley, Sinclair, Mahaffey and Anthony: A CONCURRENT RESOLUTION TO EXPRESS THE SINCERE GRATITUDE OF THE MEMBERS OF THE GENERAL ASSEMBLY TO MR. JOSEPH E. HINES, JR. OF SPARTANBURG FOR HIS MANY YEARS OF SERVICE TO HIS COMMUNITY AND THE STATE OF SOUTH CAROLINA, UPON RETIRING FROM HIS CURRENT POSITION AS DIRECTOR OF SPARTANBURG COUNTY OFFICE OF VOTER REGISTRATION AND ELECTIONS ON JUNE 16, 2003, AND TO WISH HIM MANY YEARS OF CONTINUED HAPPINESS.

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

H. 4216 (Word version) -- Reps. Scott, 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, 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 SINCERE GRATITUDE OF THE MEMBERS OF THE SOUTH CAROLINA GENERAL ASSEMBLY TO MRS. MERCY P. OWENS OF COLUMBIA FOR HER MANY YEARS OF SERVICE TO THE BANKING INDUSTRY IN THE STATE OF SOUTH CAROLINA, UPON RETIRING FROM HER CURRENT POSITION AS SENIOR VICE PRESIDENT OF SOUTH CAROLINA COMMUNITY DEVELOPMENT OF WACHOVIA BANK, N.A., AND TO WISH HER MANY YEARS OF CONTINUED HAPPINESS.

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

H. 4217 (Word version) -- Reps. Scott, 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, 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 EXPRESSING THE CONGRATULATIONS OF THE MEMBERS OF THE GENERAL ASSEMBLY OF THE STATE OF SOUTH CAROLINA TO REVEREND JOHN C. WILLIAMS OF RICHLAND COUNTY ON THE OCCASION OF HIS SIXTY-FIFTH BIRTHDAY ON TUESDAY, MAY 13, 2003, AND WISHING HIM CONTINUED GOOD HEALTH AND MUCH HAPPINESS IN THE YEARS TO COME.

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

Columbia, S.C., May 15, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has adopted the report of the Committee of Conference on:

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)
Very respectfully,
Speaker of the House

Received as information.

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)

On motion of Senator THOMAS, with unanimous consent, the Report of the Committee of Conference was taken up for immediate consideration.

Senator THOMAS spoke on the report.

On motion of Senator THOMAS, the Report of the Committee of Conference to S. 438 was adopted as follows:

The COMMITTEE OF CONFERENCE, to whom was referred:

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)

Beg leave to report that they have duly and carefully considered the same and recommend:

That the same do pass with the following amendments: (Reference is to Printer's Version 4/9/03--S.)

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/   SECTION   1.   Title 37 of the 1976 Code is amended by adding:

General Provisions

Section 37-23-10.   This chapter may be cited as the 'South Carolina High-Cost and Consumer Home Loans Act'.

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-two 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, including but not limited to the following:

(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;

(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;

(iii)   there is a beneficial change for the borrower in the duration of the loan;

(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;

(v)   the borrower's note rate of interest is reduced by at least two percent;

(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 conforming loan size limit for a single-family dwelling as established from time to time by the Federal National Mortgage Association;

(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 threshold as defined in item (15) 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. Interest that may accrue in advance of payment in full of a loan made under a local, state, or federal government-sponsored mortgage insurance or guaranty program, including a Federal Housing Administration program, is not considered a prepayment fee or penalty;

(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. This subsection does not apply after January 1, 2005; and

(f)   'points and fees' does not include:

(i)   taxes, filing fees, recording, and other charges and fees actually paid or to be paid to public officials for determining the existence of or for perfecting, releasing, or satisfying a security interest;

(ii)   bona fide and reasonable fees actually 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, who has received no 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, notary fees, escrow charges, and flood insurance premiums not otherwise included pursuant to subitem (a) of this section;

(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 lender 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)   commissions and other compensation paid to licensed real estate brokers and agents;

(v)   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;

(14)   'Table-funded transaction' means a settlement at which a mortgage loan is funded by an advance of loan funds to a lender who closes the loan in his name followed by an assignment of the loan from the person identified as the lender in the loan documents to the person advancing the initial loan funds.

(15)   'Threshold' 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;

(C)   except that the following discount points and prepayment fees and penalties are excluded from the calculation of the total points and fees payable by the borrower:

(i)     up to and including two conventional conforming discount points payable by the borrower in connection with the loan transaction, but only if the interest rate from which the loan's interest rate is discounted does not exceed by more than one percentage point 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; or

(ii)   up to and including one conventional conforming discount point payable by the borrower in connection with the loan transaction, but only if the interest rate from which the loan's interest rate is discounted does not exceed by more than two percentage points 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;

(iii)   a conventional prepayment penalty.

(16)   '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.

Article 3

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 exceeding two and one-half percent of the total loan amount;

(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.

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, 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. No borrower may bring a class action for a violation of this article. No borrower may bring an action for a violation of this article more than six years after the violation occurred and after the original scheduled maturity date of the debt. This section does not bar a borrower from asserting a violation of this article in an action to collect a debt which was brought more than six years from the date of the occurrence of the violation and after the original scheduled maturity date of the debt as a matter of defense by recoupment or set-off in such action;

(B)(1)   If the court finds as a matter of law that the agreement or transaction 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 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 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 chapter, the court shall award to the debtor 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 debtor is not controlling.

(E)   This article establishes specific consumer protections in consumer home loans in addition to other consumer protections that may be otherwise available by law.

(F)   The provisions of this article apply to a person who in bad faith attempts to avoid the application of this article by:

(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.

(G)   The Administrator of the Department of Consumer Affairs, the Attorney General, the Commissioner of Banking, the Director of the Consumer Finance Division 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.

Section 37-23-70.   (A)   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(15).

(B)   It is unlawful, on or after January 1, 2005, for a lender in a consumer home loan to finance, directly or indirectly, credit life, disability, debt cancellation, 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.

(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)   Unless otherwise allowed under federal law, a consumer home loan agreement may not contain a choice of law provision identifying a state other than South Carolina.

(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 for each transaction. No borrower may bring a class action for a violation of this article. No borrower may bring an action for a violation of this article more than six years after the violation occurred and after the original scheduled maturity date of the debt. This subsection does not bar a borrower from asserting a violation of this article in an action to collect a debt which was brought more than six years from the date of the occurrence of the violation and after the original scheduled maturity date of the debt as a matter of defense by recoupment or set-off in such action.

(G)(1)   If the court finds as a matter of law that the agreement or transaction 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 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 excess loan finance charge or other charges or fees actually received by the lender or paid by the borrower to a third party.

(2)   An action pursuant to this subsection may not be brought after the original scheduled maturity date of the debt.

(H)   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 attorneys their reasonable fees. In determining attorneys' fees, the amount of the recovery on behalf of the borrower is not controlling.

(I)   This article establishes specific consumer protections in consumer home loans in addition to other consumer protections that may be otherwise available by law.

(J)   The Administrator of the Department of Consumer Affairs, the Attorney General, the Commissioner of Banking, the Director of the Consumer Finance Division 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.   (K)   Points and fees charged on consumer home loans and subject to this article are considered earned immediately and not subject to Section 37-3-201 and the rebate provisions of Sections 37-3-209 and 37-3-210; provided, that this section does not limit the borrower's right to prepay under Section 37-3-209."

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 will 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:

(a)   the creditor fails to give the disclosures required by Sections 37-2-309 or 37-3-308; or

(b)   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."
D.   Section 37-5-203 of the 1976 Code is amended by adding an appropriately numbered subsection to read:

"(8)   The right of a person to sue for a violation of Section 37-2-309 or 37-3-308 is maintainable only as an individual action."

SECTION   4.   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)."

SECTION   5.   A.     Section 37-3-103 of the 1976 Code is amended to read:

"Section 37-3-103.   The following definitions apply to this title and appear in this chapter as follows:

'Consumer Loan' - Section 37-3-104

'Lender' - Section 37-3-107(1)

'Loan' - Section 37-3-106

'Loan finance charge' - Section 37-3-109

'Loan primarily secured by an interest in land' - Section 37-3-105

'Precomputed' - Section 37-3-107(2)

'Principal' - Section 37-3-107(3)

'Restricted Lender' - Section 37-3-501(4)

'Restricted Loan' - Section 37-3-501(3)

'Revolving loan account' - Section 37-3-108

'Short-term vehicle secured loan' - Section 37-3-413(1)

'Supervised Lender' - Section 37-3-501(2)

'Supervised Loan' - Section 37-3-501(1)"
B.   Part 4, Chapter 3, Title 37 of the 1976 Code is amended by adding:

"Section 37-3-413.   (1)   A   'short-term vehicle secured loan' means a nonpurchase money consumer loan with an original repayment term of less than one hundred and twenty days and secured by a motor vehicle. It does not include a loan made by a supervised financial organization.

(2)   A short-term vehicle secured loan must be for an original period of at least one month. A lender may allow the loan to be renewed no more than six additional periods, not to exceed two hundred forty days, with each period equal to the length of the original period. A short-term vehicle secured loan may not accrue interest after the maturity of the sixth renewal period. After the maturity of the final renewal period the borrower may repay the remaining principal, without additional interest, in six equal monthly installments. For the purposes of this section, a renewal is an extension of a short-term vehicle secured loan for an additional period without changes in the terms of the loan other than a reduction in its principal. Accrued interest must not be capitalized or added to the principal of the loan at the time of a renewal. Fees must not be charged, other than the lien recording fee in the exact amount of the governmental entity's charge.

(3)   Before making a short-term vehicle secured loan, a lender shall form a good faith belief that the borrower has the ability to repay the loan, considering the borrower's, and any co-borrower's, employment, monthly income, and other monthly expenses compared to the loan's repayment obligation for the original term and permitted renewals. The lender is considered to comply with this subsection if the lender obtains from the borrower, on a form separate from the loan agreement, a signed statement that the information the borrower has provided regarding employment, income, and expenses is true and correct and that, given the information, the borrower believes he has the ability to repay the loan.

(4)   A lender may not make a short-term vehicle secured loan in a principal amount greater than the fair market retail value of the motor vehicle securing the loan, as determined by common industry appraisal guides. If the motor vehicle securing the loan is not listed in common appraisal guides, the lender shall use his best judgment to determine the value.

(5)   Except in the event of fraud by the borrower, if a borrower defaults in the repayment of a short-term vehicle secured loan, the lender's sole remedy is to seek possession and sale of the motor vehicle securing the loan and the lender may not pursue the borrower personally in an action for repayment of the loan or for any deficiency after sale. Notwithstanding this section, the lender must return to the borrower any surplus obtained after sale in excess of the amount owed on the loan and reasonable expenses of repossession and sale in accordance with Title 36, Chapter 9.

(6)   In a short-term vehicle secured loan agreement the lender shall provide a:

(a)   notice, placed conspicuously above the borrower's signature and in at least fourteen point type, as follows:

'THIS IS A HIGHER INTEREST LOAN. YOU SHOULD GO TO ANOTHER SOURCE IF YOU HAVE THE ABILITY TO BORROW AT A LOWER RATE OF INTEREST. YOU ARE PLACING YOUR VEHICLE AT RISK IF YOU DEFAULT ON THIS LOAN.'; and

(b)   right of rescission provision entitling the borrower to repay the principal amount borrowed without interest or other cost at any time until the close of business on the business day following the date the original loan was executed.

(7)   A lender making short-term vehicle secured loans may not advertise or offer a rate of interest that is lower in the original period of the loan if that rate increases in later renewals."

SECTION   6.   Chapter 58, Title 40 of the 1976 Code is amended by adding:

"Section 40-58-78.   (A)   A loan agreement with a mortgage broker or originator must contain an explicit statement that:

(1)   the mortgage broker or originator is acting as the agent of the borrower in providing brokerage services to the borrower;

(2)   when acting as agent for the borrower, it owes to that borrower a duty of utmost care, honesty, and loyalty in the transaction, including the duty of full disclosure of all material facts. If the mortgage broker or originator is authorized to act as an agent for any other person, the brokerage agreement must contain a statement of that fact and identification of that person;

(3)   a detailed description of the services the mortgage broker or originator agrees to perform for the borrower, and a good faith estimate of any fees the mortgage broker or originator will receive for those services, whether paid by the borrower, the institutional lender, or both; and

(4)   a clear and conspicuous statement of the conditions under which the borrower is obligated to pay for the services rendered under the agreement.

(B)   If a mortgage broker or originator violates the provisions of Subsection (A), the borrower may recover from the mortgage broker or originator charged with the violation:

(1)   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;

(2)   fees paid by the borrower to the mortgage broker or originator for services rendered by the agreement; and

(3)   actual costs, including attorney's fees, for enforcing the borrower's rights under the agreement.

(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.

SECTION   7.   Chapter 1, Title 34 of the 1976 Code is amended by adding:

"Section 34-1-140.   A political subdivision of this State may not enact or enforce any ordinance, resolution, or rule regulating the financial or lending activities of a person or a subsidiary or affiliate of that person, including disqualification of a person from doing business with the political subdivision based upon lending interest rates or imposition of reporting requirements or other obligations upon a person regarding its financial services or lending practices, if that person or a subsidiary or an affiliate of that person:

(1)   is subject to the jurisdiction of the State Board of Financial Institutions;

(2)   is subject to the jurisdiction of the Office of Thrift Supervision, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Federal Trade Commission, or the United States Department of Housing and Urban Development;

(3)   originates, purchases, sells, assigns, securities, or services property interests or obligations created by a financial transaction or loan made, executed, or originated to assist or facilitate the transaction by a person referred to in items (1) or (2); or

(4)   sells or markets banking, insurance, securities, or commodities services provided by an institution or entity defined in or required to comply with the Federal Gramm-Leach-Bliley Financial Modernization Act, 113 Stat. 1338."

SECTION   8.   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   9.   This act takes effect January 1, 2004, and applies to all loans for which the loan applications were taken on or after that date. /

Amend title to conform.
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 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 PROVIDE FOR ENFORCEMENT BY THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS, ATTORNEY GENERAL, COMMISSIONER OF BANKING, THE DIRECTOR OF THE CONSUMER FINANCE DIVISION, 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, TO PROVIDE FOR PENALTIES AND REMEDIES INCLUDING ATTORNEY'S FEES; TO PROVIDE FOR REPAYMENT WITHOUT PENALTY OF CERTAIN LOANS; TO PROVIDE FOR DISCLOSURE OF THE AMOUNT THE LENDER EARNS FROM THE LOAN; TO PROVIDE FOR ESTABLISHMENT OF GOOD FAITH A LENDER; 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, TO INCREASE THE PENALTY AMOUNT, AND TO PROHIBIT CLASS ACTIONS; 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; TO AMEND SECTION 37-3-103, RELATING TO DEFINITIONS FOR PURPOSES OF CONSUMER PROTECTION, BY DEFINING "SHORT-TERM VEHICLE SECURED LOAN"; TO ADD SECTION 37-3-413 SO AS TO PROVIDE THAT CERTAIN RESTRICTIONS APPLY TO A CONSUMER LOAN BY A SUPERVISED LENDER WITH SCHEDULED LOAN PAYMENTS OF FEW THAN TWO HUNDRED FORTY DAYS INCLUDING DISCLOSURE REQUIREMENTS, PROHIBITION ON PREPAYMENT PENALTIES, AND LIMITS ON RENEWALS; TO ADD SECTION 40-58-78 SO AS TO PRESCRIBE AND PROHIBIT CERTAIN ACTS BY A MORTGAGE BROKER OR ORIGINATOR; AND TO ADD SECTION 34-1-140 SO AS TO PROVIDE THAT A POLITICAL SUBDIVISION OF THIS STATE MAY NOT REGULATE LENDING AND FINANCIAL ACTIVITIES OF CERTAIN ENTITIES.

/s/Robert W. Hayes, Jr., Chairman /s/Harry F. Cato, Vice Chairman
/s/Linda H. Short                 /s/Converse A. Chellis III
/s/Darrell Jackson                /s/Joseph H. Neal
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

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

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

H. 3939 (Word version) -- Reps. Sandifer, Bales, Barfield, Bingham, G. Brown, Cato, Dantzler, Edge, Hamilton, Huggins, Thompson and Tripp: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 14 TO CHAPTER 55, TITLE 44 SO AS TO ESTABLISH PROVISIONS REGULATING THE INSTALLATION AND USE OF PASSIVE SOIL-BASED ON-SITE DISPOSAL SYSTEMS USED TO COLLECT, TREAT, DISCHARGE, OR RECLAIM WASTEWATER OR SEWAGE FROM DWELLING UNITS WITHOUT THE USE OF COMMUNITY-WIDE SERVERS OR A CENTRALIZED TREATMENT FACILITY; TO REQUIRE MANUFACTURERS TO PROVIDE A WARRANTY TO EACH PROPERTY OWNER AND TO PROVIDE FINANCIAL ASSURANCE AND SYSTEM DESIGN AND INSTALLATION DOCUMENTATION TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL; TO REQUIRE SYSTEM INSTALLATION BY CERTIFIED INSTALLERS AND TO PROVIDE INSTALLATION STANDARDS AND PROCEDURES; AND TO PROVIDE PENALTIES; AND TO PROVIDE THAT WHEN REGULATIONS PROMULGATED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL RELATING TO INSTALLATION STANDARDS AND FINANCIAL ASSURANCES ARE APPROVED BY THE GENERAL ASSEMBLY, SECTIONS 44-55-1320 AND 44-55-1330, RELATING TO THESE MATTERS ARE REPEALED.

Senator FAIR asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

Senator SHORT explained the Bill.

H. 3673 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 20-7-776, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERMANENCY PLANNING HEARINGS FOR CHILDREN IN FOSTER CARE, SO AS TO FURTHER SPECIFY PROCEDURES FOR THESE HEARINGS; TO REQUIRE THE DEPARTMENT OF SOCIAL SERVICES TO SHOW COMPELLING REASONS FOR A PERMANENCY PLAN THAT DOES NOT REUNITE A CHILD WITH HIS PARENTS OR A RELATIVE AND DOES NOT TERMINATE PARENTAL RIGHTS AND TO REQUIRE THE COURT TO FIND COMPELLING REASONS FOR APPROVING SUCH A PLAN; AND TO FURTHER SPECIFY THE COURT'S AUTHORITY AND STANDARDS THAT MUST BE MET AFTER ADOPTION VIABILITY IS CONSIDERED, FOSTER CARE IS CONTINUED, AND TERMINATION OF PARENTAL RIGHTS IS NOT INITIATED; TO AMEND SECTION 20-7-768, RELATING TO STANDARDS FOR TERMINATION OF PARENTAL RIGHTS, SO AS TO REQUIRE THE COURT TO FIND COMPELLING REASONS FOR NOT INITIATING TERMINATION OF PARENTAL RIGHTS UNDER CERTAIN CIRCUMSTANCES, RATHER THAN PRESUMING THAT SUCH CIRCUMSTANCES IN AND OF THEMSELVES ARE COMPELLING REASONS; AND TO AMEND SECTION 20-7-1640, AS AMENDED, RELATING TO FINGERPRINT REVIEWS OF FOSTER CARE LICENSE APPLICANTS, SO AS TO DELETE PROVISIONS AUTHORIZING THE DEPARTMENT TO ISSUE TEMPORARY LICENSES PENDING RECEIPT OF THE RESULTS OF THE FEDERAL BUREAU OF INVESTIGATION REVIEW.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Judiciary.

The Committee on Judiciary proposed the following amendment (JUD3673.001), which was adopted:

Amend the bill, as and if amended, beginning on page 2, beginning on line 39, in Section 20-7-766(C), as contained in SECTION 1, by striking lines 39 through 43 on page 2 and line 1 on page 3, in their entirety and inserting therein the following:

/   the department's plan is not reunification with the parents, custody or guardianship with a fit and willing relative, or termination of parental rights, the department must show compelling reasons for the selection of another permanent plan. If the court approves a plan that is not reunification with the parents, custody or guardianship with a fit and willing relative, or /.

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the committee amendment.

The committee amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

H. 3926 (Word version) -- Reps. Limehouse, Howard, Sandifer, Koon, Harrell, Scarborough, J.E. Smith, Govan, Townsend, J.M. Neal, Cato, Rhoad, E.H. Pitts, Altman, Battle, Bingham, Bowers, Breeland, Chellis, Clark, Clemmons, Dantzler, Edge, Emory, Freeman, Gourdine, Hamilton, Harrison, Haskins, Herbkersman, J. Hines, Jennings, Leach, Littlejohn, Mahaffey, McLeod, Merrill, Miller, Moody-Lawrence, Owens, Parks, M.A. Pitts, Rice, Richardson, Rivers, Rutherford, Simrill, Skelton, D.C. Smith, J.R. Smith, W.D. Smith, Snow, Stewart, Talley, Toole, Tripp, Umphlett, Vaughn, Walker, Whitmire, Wilkins, Bales and Bailey: A BILL TO AMEND SECTION 59-149-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DURATION OF LIFE SCHOLARSHIPS, SO AS TO PROVIDE THAT A STUDENT RECEIVING A LIFE SCHOLARSHIP ON AND AFTER SEPTEMBER 11, 2001, WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVES AND WHO IS CALLED TO ACTIVE DUTY AFTER THIS DATE IN CONNECTION WITH THE CONFLICT IN IRAQ OR THE WAR ON TERRORISM SHALL HAVE ADDITIONAL SEMESTERS TO COMPLETE HIS ELIGIBILITY EQUAL TO THE SEMESTER HE WAS ACTIVATED PLUS ANY ADDITIONAL SEMESTERS OR PORTIONS OF SEMESTERS MISSED AS A RESULT OF THE ACTIVATION.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator RYBERG proposed the following amendment (GJK\20606SD03), which was adopted:

Amend the bill, as and if amended, page 1, after line 42, by adding an appropriately numbered SECTION to read:

/ SECTION   __.   Notwithstanding any other provision of law, beginning July 1, 2003, the South Carolina Tuition Prepayment Program set forth in Chapter 4, Title 59 of the 1976 Code shall not accept new participants until the General Assembly authorizes the program to accept new participants by joint resolution. This section does not affect the existing participants in the program, and the Tuition Prepayment Program shall remain in full operation for this purpose. /

Renumber sections to conform.

Amend title to conform.

Senator RYBERG explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

H. 3990 (Word version) -- Reps. Limehouse, Hagood, Breeland, Ceips, Hamilton, Harrell, Mack and Scarborough: A BILL TO AMEND ARTICLE 62, CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ARTIFICIAL REEF SPECIAL LICENSE PLATE, SO AS TO RENAME IT THE 'SALTWATER FISHING' SPECIAL LICENSE PLATE, AND PROVIDE THAT THE PORTION OF THE PROCEEDS COLLECTED FROM THE ISSUANCE OF THIS SPECIAL LICENSE PLATE THAT WAS USED TO SUPPORT ARTIFICIAL REEF DEVELOPMENT, MAINTENANCE, AND MANAGEMENT MUST BE USED TO MANAGE AND CONSERVE THE MARINE RESOURCES OF THIS STATE.

Senator RICHARDSON asked unanimous consent to take the Bill up for immediate consideration.

There was no objection.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator RICHARDSON proposed the following amendment (BBM\9828MM03), which was adopted:

Amend the bill, as and if amended, Section 56-3-7300(A) as contained in SECTION 1, page 1, line 42, by deleting /fifty/ and inserting / seventy-five /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the second time and ordered placed on the third reading Calendar.

On motion of Senator RICHARDSON, with unanimous consent, H. 3990 was ordered to receive a third reading on Monday, May 19, 2003.

S. 698 (Word version) -- Senator Malloy: A CONCURRENT RESOLUTION TO REQUEST THE DEPARTMENT OF TRANSPORTATION TO NAME THE INTERCHANGE LOCATED AT EXIT 131 ALONG INTERSTATE HIGHWAY 20 IN DARLINGTON COUNTY THE "LAURIE COKE LAWSON INTERCHANGE" AND TO INSTALL APPROPRIATE MARKERS OR SIGNS AT THIS INTERCHANGE CONTAINING THE WORDS "LAURIE COKE LAWSON INTERCHANGE".

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

H. 3914 (Word version) -- Reps. Vaughn, Allen, Battle, Branham, Cato, Clyburn, Cooper, Gilham, Hamilton, Haskins, Herbkersman, J. Hines, Keegan, Leach, Littlejohn, Loftis, Mahaffey, Moody-Lawrence, Owens, Rice, Richardson, Sinclair, F.N. Smith, J.R. Smith, Taylor, Tripp, Wilkins and Young: A CONCURRENT RESOLUTION TO SUPPORT ACTIVITIES OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL IN THE ESTABLISHMENT AND IMPLEMENTATION OF THE STATE'S EARLY ACTION APPROACH FOR COMPLYING WITH THE NEW OZONE STANDARD MANDATED BY THE FEDERAL GOVERNMENT THROUGH THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY; TO ESTABLISH DATES AND MILESTONES FOR PLAN IMPLEMENTATION; AND TO PROVIDE FOR THE ESTABLISHMENT OF AN INTERGOVERNMENTAL WORKGROUP FOR THE PURPOSE OF PROMOTING BEHAVIORS AND POLICIES TO REDUCE AIR POLLUTION THROUGHOUT THE STATE OF SOUTH CAROLINA.

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

THE CALL OF THE UNCONTESTED CALENDAR HAVING BEEN COMPLETED, THE SENATE PROCEEDED TO H. 3749, THE GENERAL APPROPRIATION BILL.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the report proposed by the Committee on Finance.

Senator LEATHERMAN, Chairman of the Senate Finance Committee, was recognized to give a status report to the Senate.

Senator MOORE proposed the following Amendment No. 177 (AMD3749TLMFC15), which was tabled:

Amend the Finance Committee Amendment, as and if amended, page 3749-48 of the amendment, the third amendment on the page, pertaining to Proviso 36.28, by striking the amendment in its entirety.

Amend title, totals, part, section and other necessary references to conform

Senator MOORE explained the amendment.

Senator RYBERG moved to lay the amendment on the table.

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

Alexander                 Branton                   Cromer
Elliott                   Fair                      Grooms
Hayes                     Leatherman                Martin
McGill                    Mescher                   O'Dell
Peeler                    Richardson                Ryberg
Smith, J. Verne           Thomas                    Verdin
Waldrep

Anderson                  Courson                   Drummond
Ford                      Giese                     Glover
Hawkins                   Hutto                     Jackson
Knotts                    Kuhn                      Leventis
Malloy                    McConnell                 Moore
Ravenel                   Ritchie                   Setzler
Short

The PRESIDENT voted "no."

The Senate refused to table the amendment. The question then was the adoption of the amendment.

Senator THOMAS spoke on the amendment.

Senator HAWKINS raised a Point of Order that Proviso 36.28 as contained in the Report of the Committee of Finance was out of order inasmuch as it was violative of Rule 24.

Amend the bill further, as and if amended, Part 1B, Section 36, DEPARTMENT OF PUBLIC SAFETY, page 422, after line 2, by adding Proviso 36.28 to read:
/ 36.28.     (DPS: DMV Transaction Fee) The Division of Motor Vehicles is authorized to collect a transaction fee from commercial third parties who either transmit or retrieve data from the DMV. The fee cannot exceed five dollars per transaction and must be mutually agreed to by all parties. These fees are to be retained by the division and placed in a special restricted interest-bearing account to be used by the division to defray the costs associated with the maintenance and operation of the division's information and technology system. /

The PRESIDENT overruled the Point of Order.

Senator LEVENTIS argued in favor of the adoption of the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The amendment was laid on the table.

Senator LEVENTIS raised a Point of Order that Proviso 73.2 as contained in H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.

73.2.   (Statewide Funding Requirements) The sources of general fund revenues appropriated in this provision are as follows: E16-State Treasurer's Office: $1,400,000 must be transferred to the general fund from Unclaimed Property Subfund 3879; E16-State Treasurer's Office: $3,938,054 must be transferred to the general fund from 911 Phone Surcharge Subfund 4955; E16-State Treasurer's Office: $3,284,872 Excess Debt Service from FY 2002-03 must be carried forward and credited to the general fund in FY 2003-04; E16-State Treasurer's Office: $5,583,000 must be transferred to the general fund from SC Housing Trust Fund Subfund 4070; R12-State Accident Fund: $10,806,184 must be transferred to the general fund from the State Accident Fund Subfund 4033; and E12-Comptroller General's Office: $2,400,000 must be transferred to the general fund from Unemployment Compensation Insurance Subfund 4007. Recognizing the fiscal difficulties facing South Carolina for the current budget year, the General Assembly intends to exercise its authority to redirect an amount of funds equivalent to the interest accrued or accruing on the herein named restricted accounts held by agencies of state government. Notwithstanding any other provisions of law, the State Treasurer shall transfer funds to the general fund from the following accounts: E16-State Treasurer's Office: $617 from Subfund 4066 Disaster Trust Fund; E16-State Treasurer's Office: $166,786 from Subfund 4070 SC Housing Trust Fund; E16-State Treasurer's Office: $3,032 from Subfund 4612 Asbestos Expense Trust; E16-State Treasurer's Office: $2,423,565 from Subfund 4693 Atmc Wste Brl Fd-Chm Nclr; E16-State Treasurer's Office: $4,987 from Subfund 4731 General Ser Ds-Gen Fund; E16-State Treasurer's Office: $1,086 from Subfund 4732 General Ser Ds-Ins Res Fund; E16-State Treasurer's Office: $1,780 from Subfund 4895 Confiscated Cash; E16-State Treasurer's Office: $352,638 from Subfund 4955 911 Phone Surcharge; E16-State Treasurer's Office: $297,341 from Subfund 43A8 Barnwell Economic Dev Fd; E23-Commission on Indigent Defense: $47,374 from Subfund 4313 Indigent Def Services Fund; F03-Budget and Control Board: $451 from Subfund 4153 Funded Debt-Sinking Fund; F03-Budget and Control Board: $12,142 from Subfund 4154 Ordinary Sinking Fund; F03-Budget and Control Board: $4,883 from Subfund 4190 Fed Surplus Property Fd; F03-Budget and Control Board: $33,306 from Subfund 4202 State Life & Ltd; F03-Budget and Control Board: $295,431 from Subfund 4343 SC Infrastructure Loan Fund; F03-Budget and Control Board: $3,960 from Subfund 4821 PVE-First Stage Restitution; J02-Dept. of Health & Human Services: $35,176 from Subfund 4176 Nursing Home Sanctions; J02-Dept. of Health & Human Services: $108,574 from Subfund 4508 Sr Cit Ctrs Perm Imp Fund; J04-Dept. of Health & Environmental Control: $193,983 from Subfund 4545 Waste Tire Grant Trust Fund; J04-Dept. of Health & Environmental Control: $84,335 from Subfund 4546 Petroleum Fund; J04-Dept. of Health & Environmental Control: $458,305 from Subfund 4641 Haz Waste-Permitted Site Fd; J04-Dept. of Health & Environmental Control: $50,602 from Subfund 4865 Solid Waste Mgmt Trust Fund; J04-Dept. of Health & Environmental Control: $76,208 from Subfund 4906 Superb Fin Responsibility; J04-Dept. of Health & Environmental Control: $9,210 from Subfund 4971 Infectious Waste Contingency Fd; J04-Dept. of Health & Environmental Control: $468,008 from Subfund 4984 SUPERB Account; J20-Dept. of Alcohol & Other Drug Abuse Services: $4,963 from Subfund 4784 Revolving Loan Fund; K05-Dept. of Public Safety: $23,641 from Subfund 4547 Uninsured Enforcement Fund; P16-Dept. of Agriculture: $103,269 from Subfund 4308 Whse Receipts Guarantee; P16-Dept. of Agriculture: $128,420 from Subfund 4358 Grain Producers Guaranty Fund; P24-Dept. of Natural Resources: $6,781 from Subfund 4189 SC Aquatic Plant Man Tr Fd; P24-Dept. of Natural Resources: $4,962 from Subfund 4373 Nongame Wildlife & Natural Areas; P24-Dept. of Natural Resources: $185,843 from Subfund 4395 Mitigation Trust Fund; P24-Dept. of Natural Resources: $48,338 from Subfund 4520 Heritage Land Trust Fund; P24-Dept. of Natural Resources: $9,411 from Subfund 4795 Jocassee Gorges Trust Fund; P28-Dept. of Parks, Recreation & Tourism: $124,859 from Subfund 4126 PRT Development Fund; P28-Dept. of Parks, Recreation & Tourism: $82,176 from Subfund 4278 Recreation Land Trust; P28-Dept. of Parks, Recreation & Tourism: $21,612 from Subfund 4279 Gifts & Endowments Trust; P36-Patriots Point Development Authority: $7,060 from Subfund 4049 Donations-Restricted; P36-Patriots Point Development Authority: $83,667 from Subfund 4133 Admissions Revenue; R12-State Accident Fund: $779,526 from Subfund 4033 Workers' Comp Fund-Trust; R12-State Accident Fund: $3,200 from Subfund 4168 Escrow Funds; R36-Dept. of Labor, Licensing, & Regulation: $3,967 from Subfund 4592 Auctioneer Recovery Fund; Y08-Public Railways Commission: $64,046 from Subfund 4813 E Cooper & Berkeley RR; and Y08-Public Railways Commission: $13,046 from Subfund 4816 Capital Improvement. In order to provide maximum flexibility to maintain critical programs, for these transfers identified above to the general fund, an agency may, in lieu of the specific accounts identified above, opt to transfer an equal amount of funds from any agency earmarked or restricted account designated as "special revenue funds" as defined by the Comptroller General's records. The above listed funds are transferred to the General Fund of the State, and by this provision, these transfers are deemed to have occurred and, notwithstanding any other provision of law, these general fund revenues are available for appropriation as provided in this paragraph. Any restrictions concerning specific utilization of these funds are lifted for the specified fiscal year. Amounts transferred pursuant to this paragraph represent funds equivalent to the interest accrued or accruing only on state fund balances in earmarked and restricted accounts and if it is determined that any portion of the amount transferred is attributable to federal dollars that amount must be made up from the state fund earmarked and restricted fund balance. From the amount recouped from state agencies and transferred to the general fund pursuant to this proviso, there is appropriated for the fiscal year beginning July 1, 2003 and ending June 30, 2004, the following sums for the stated purposes: H03-Commission on Higher Education: Leadership Center Annualization $50,000; H03-Commission on Higher Education: GEAR-UP Annualization $600,000; H03-Commission on Higher Education: Performance Improvement Pool Allocation $284,151; H03 - Commission on Higher Education: Higher Education Awareness Program (HEAP) $402,250; H03 - Commission on Higher Education: SREB $341,456; H03 - Commission on Higher Education: Lottery Scholarship Administration $500,000; H12-Clemson University: Center for Research of Wireless Communication $500,000; H27-University of South Carolina: Materials Research Science & Engineering Center (Nano-Technology) $1,000,000; J02-Dept. of Health and Human Services: Other Medicaid Issues $12,798,233; L04-Department of Social Services: Operating Expenses for Child and Adult Services $4,000,000; N12-Department of Juvenile Justice: Assault Prevention $1,183,041; E12-Comptroller General: GASB #34 Compliance $602,546; J02-Department of Health and Human Services: Medicaid $7,089,302; J12-Department of Mental Health: Crisis Stabilization $2,000,000; X12-Aid to Subdivisions-Comptroller General: $410,698 distributed as follows: Aid Cnty-Clerks of Court $6,567; Aid Cnty-Probate Judges $6,567; Aid Cnty-Sheriffs $6,567; Aid Cnty-Register of Deeds, $2,425; Aid Cnty-Auditors $194,286; and Aid Cnty-Treasurers $194,286; F03-Budget and Control Board: Operating Expenses $400,000; and P24-Department of Natural Resources: Operating Expenses $300,000; H03-Commission on Higher Education: Palmetto Fellows Scholarships $200,000. The State Treasurer shall take custody of unclaimed property, reported before November 1, 2003 for the year ending June 30, 2003, as payable or distributable in the course of a demutualization of an insurance company, and deposit into the general fund all monies received as abandoned property. Unclaimed property payable or distributable in the course of a demutualization of an insurance company is presumed abandoned five years after the earlier of the date: (1) of last contact with the policyholder; or (2) the property became payable or distributable. The first five million dollars realized from such demutualization of funds is appropriated in the following manner for the purposes stated: Y14-State Ports Authority: $500,000 for Dredging; N12-Department of Juvenile Justice: $500,000 for Operating Expenses; and P28-Department of Parks, Recreation, and Tourism: $4,000,000 for Operating Expenses. Any amount realized from demutualization above the first five million dollars shall be appropriated in the following manner for the purposes stated: E28-Election Commission: $700,000 for HAVA Federal Match; F03-Budget and Control Board: $2,000,000 for Operating Expenses; and L04-Department of Social Services: $2,300,000 for Operating Expenses for Child and Adult Services. Any additional revenues realized from demutualization shall be used to fund the State Employee Health Plan. The appropriations in this provision are contingent and therefore all items are to be funded on a pro-rata basis should revenue fall below the anticipated amount. Unexpended funds appropriated pursuant to this part may be carried forward to succeeding fiscal years and expended for the same purposes. No appropriation in this provision may be paid before the later of September 1, 2003, or the date the Comptroller General closes the state's books on Fiscal Year 2002-03. Appropriations in this provision resulting from demutualization shall be paid as soon as practicable after November 1, 2003. Contingent upon the approval of the Tobacco Settlement Revenue Management Authority and parties to the trust agreement, the State Treasurer's Office shall transfer an amount equal to $6,767,866 from the unrestricted taxable proceeds portion of the principal of the Healthcare Tobacco Settlement Trust Fund established pursuant to Section 11-11-170(B)(1) of the 1976 Code to the Department of Health and Human Services to be expended for Medicaid.

The PRESIDENT sustained the Point of Order.

Proviso 73.2 as contained in H. 3748 as passed by the House was ruled out of order.

Senator LEVENTIS proposed the following Amendment No. 35 (DC37.23 CORRECTING AMENDMENT-2.DOC), which was adopted (#16):

Amend the committee amendment, as and if amended, page [3749-48], Proviso 37.23 by striking:

/ (2) If restitution to a particular victim or victims has not been ordered by the court, or if court-ordered restitution to a particular victim or victims has been satisfied, then ten percent (10%) must be retained by the Department of Corrections to defray the cost of the inmate's room and board. /

and inserting:

/ (2) Ten percent (10%) must be retained by the Department of Corrections to defray the cost of the inmate's room and board. /

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEVENTIS explained the amendment.

Senator LEVENTIS moved that the amendment be adopted.

The amendment was adopted.

Senator LAND raised a Point of Order that Proviso 23.2 as contained both in the Report of the Committee on Finance and H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.
23.2.   (CU-PSA: Pesticide Revenue) The first $140,000 in revenue from pesticide registration fees must be retained by regulatory and public service programs to apply to expenses of centralizing its personnel and relocating its laboratories from the Poole Agricultural Center. All revenues collected from pesticide registration fees in excess of $140,000 and up to $50,000 of revenues collected from structural pest control businesses for business licensing must be retained by regulatory and public service programs to carry out provisions of the S.C. Pesticide Control Act as amended and pursuant to regulations related to this Act.

Amend the bill further, as and if amended, Part IB, Section 23, CLEMSON UNIVERSITY - PSA, page 402, Proviso 23.2, line 28, by adding before / The / the following:

/   All registrants, as defined in Section 46-13-20, shall pay an annual basic registration fee of two hundred dollars per product registered. This fee must be used to support the Regulatory and Public Service Program and related plant research and education programs. /

The PRESIDENT sustained the Point of Order.

Proviso 23.2 was ruled out of order.

Senator MOORE raised a Point of Order that Proviso 39.18 as contained in the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24.

Amend the bill further, as and if amended, Part IB, Section 39, DEPARTMENT OF JUVENILE JUSTICE, page 429, after line 7, by adding Proviso 39.18 to read:

/     39.18.   (DJJ: Drug Free Workplace) The critical mission of the Department of Juvenile Justice requires a safe and drug free work environment. In order to accomplish this, the department may conduct and pay for the cost of pre-employment drug testing and random employee drug testing. The department is authorized to expend funds in order to provide or procure these services.     /

The PRESIDENT overruled the Point of Order.

Senator MOORE raised a Point of Order that Proviso 43.4 as contained in H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.

43.4. (WCC: Retention of Filing Fees) The Workers' Compensation Commission is authorized to retain and expend all revenues received as a result of a $25.00 filing fee for each requested hearing, settlement, or motion. If it is determined that the individual is indigent, this filing fee must be waived.

The PRESIDENT overruled the Point of Order.

Senator MOORE raised a Point of Order that Proviso 43.5 as contained in the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24.

Amend the bill further, as and if amended, Part IB, Section 43, WORKERS' COMPENSATION COMMISSION, page 430, after line 27, by adding Proviso 43.5 to read:

/     43.5.   (WCC: Fines and Penalties Revenue) The Workers' Compensation Commission is authorized to double the amount of fines and penalties assessed for each violation of the Workers' Compensation Act, except that for employers found to be uninsured in violation of the act, the minimum amount of the penalty assessed will be $750 per year of non-compliance and the maximum amount of such penalty will be $1,000 per year of non-compliance and to retain and expend all revenues received as a result of these collections.     /

The PRESIDENT sustained the Point of Order.

Proviso 43.5 was ruled out of order.

Senator MOORE raised a Point of Order that Proviso 49.4 as contained in H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.

49.4. (CA: Prepaid Legal Services Fee) The Department of Consumer Affairs may collect a fee of forty dollars with each initial or renewal filing for an individual seeking to be appointed as a representative of a prepaid legal services company and may use

The PRESIDENT overruled the Point of Order.

Senator MOORE raised a Point of Order that Proviso 50.12 as contained in the Report of the Committee on Finance was out of order inasmuch as it was violative of Rule 24.

Amend the bill further, as and if amended, Part IB, Section 50, DEPARTMENT OF LABOR, LICENSING AND REGULATIONS, page 433, beginning after line 6, by adding Proviso 50.12 to read:

/     50.12.   (LLR: OVP-Training Fees) The Office of OSHA Voluntary Programs may charge participants a fee not to exceed fifteen dollars per person or one hundred dollars per hour to cover the operating costs of conducting training and education programs. The revenue generated must be applied to the cost of operations and may be carried forward and utilized for the same purpose.       /

The PRESIDENT overruled the Point of Order.

Senator MOORE raised a Point of Order that Proviso 50.13 as contained in the Report by the Committee on Finance was out of order inasmuch as it was violative of Rule 24.
Amend the bill further, as and if amended, Part IB, Section 50, DEPARTMENT OF LABOR, LICENSING AND REGULATIONS, page 433, beginning after line 6, by adding Proviso 50.13 to read:

/   50.13.   (LLR: OVP-Palmetto Star Site Fee) The Office of OSHA Voluntary Programs may charge companies that apply for, receive, and/or renew their Palmetto Star Site designation a fee not to exceed five thousand dollars to cover program operating costs including personnel, printing, postage, laboratory costs, and on-site inspections conducted by OSHA consultants. The revenue generated must be applied to the cost of operations and may be carried forward and utilized for the same purpose.     /

The PRESIDENT overruled the Point of Order.

Senator MOORE raised a Point of Order that Proviso 58.4 as contained in H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.

58.4. (SS: UCC Filing Fees) For filings during the current fiscal year the fee for filing a UCC document in the Secretary of State's Office pursuant to Section 36-9-525(a) of the 1976 Code is:

(1) eight dollars if the record is communicated in writing and consists of one or two pages;

(2) ten dollars if the record is communicated in writing and consists of more than two pages; and

(3) ten dollars if the record is communicated by another medium authorized by filing-office rule.

The fee is in addition to any fee presently imposed by Section 36-9-525(a) of the 1976 Code. Revenues of this additional fee, not to exceed $120,000, may be retained by the Secretary of State for purposes of UCC administration.

The PRESIDENT sustained the Point of Order.

Proviso 58.4 was ruled out of order.

Senators McGILL and O'DELL proposed the following Amendment No. 63 (RW-PA-USAR #2.DOC), which was adopted (#17):

Amend the committee amendment, as and if amended, page [3749-51] by inserting:

//     Amend the bill, as and if amended, Part IB, Section 50, DEPARTMENT OF LABOR, LICENSING AND REGULATION, page 433, after line 6, by adding an appropriately numbered paragraph to read:

/50. . (LLR: Urban Search and Rescue Team Plan) The Firefighter Mobilization Oversight Committee shall develop a plan to staff, equip, and train a statewide Urban Search and Rescue Team and a Hazardous Materials Emergency Response Team that will operate as a part of the Firefighter Mobilization Plan. These plans shall be submitted to the respective Chairmen of the Senate Finance Committee and the House Ways and Means Committee by January 1, 2004./ //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator McGILL explained the amendment.

The amendment was adopted.

Senator LEATHERMAN proposed the following Amendment No. 52A (DAD-PA-60.8DEL-3.DOC), which was adopted (#18):

Amend the committee amendment, as and if amended, page [3749-53] by deleting that part of the amendment that amends Part IB, Section 60, STATE TREASURER'S OFFICE, page 451, paragraph 60.8.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

Senator MOORE proposed the following Amendment No. 188 (AMD3749TLMFC26), which was adopted (#19):

Amend the Finance Committee Amendment, as and if amended, page 3749-53 of the amendment, the last amendment on the page pertaining to Proviso 60.9 by striking the amendment and inserting a new amendment to read:

"Amend the bill further, as and if amended, Part IB, Section 60, STATE TREASURER'S OFFICE, page 451, beginning on line 11, by striking Proviso 60.9 in its entirety."

Amend title, totals, part, section and other necessary references to conform

Senator MOORE explained the amendment.

The amendment was adopted.

Senator MOORE raised a Point of Order that Proviso 62.12 as contained in H. 3748 as passed by the House was out of order inasmuch as it was violative of Rule 24.
62.12. (ELECT: Election Support Services) The State Election Commission provides election support services to county election commissions by providing election databases and ballots. Up to $75,000 of revenue generated by charging a fee for these services may be retained and expended by the South Carolina Election Commission to help cover the costs of providing election support services.

The PRESIDENT overruled the Point of Order.

Senator HUTTO proposed the following Amendment No. 139 (1602MM03.DOC), which was adopted (#20):

Amend the Senate Finance Committee Amendment, as and if amended, Part IB, Section 39, DEPARTMENT OF JUVENILE JUSTICE, page 3749-49, paragraph 39.14, line 31, by inserting immediately after /family support services/ the following:

/ after setting aside a reasonable amount, as determined by the State Forester, for reforestration of the lands from which the trees and timber are sold /.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator HUTTO spoke on the amendment.

Senator THOMAS explained the amendment.

The amendment was adopted.

Senator RITCHIE proposed the following Amendment No. 47A (JUD3749.001.doc), which was ruled out of order:

Amend the committee amendment, as and if amended, page [3749-54] by striking that part of the amendment that amends Part IB, Section 63, BUDGET AND CONTROL BOARD, page 455, Proviso 63.4, and inserting:

//   Amend the bill further, as and if amended, Part 1B, Section 63, BUDGET AND CONTROL BOARD, page 455, beginning on line 14, by striking Proviso 63.4 and inserting:

/   63.4.   (BCB: Computer Services Consolidation) It is the intent of the General Assembly to consolidate management of computing services and computer support services under the Budget and Control Board. The Executive Director of the Budget and Control Board developed a long-term strategic plan to accomplish this consolidation and to centralize all State Data Centers. The Executive Director of the Budget and Control Board, in consultation with the Governor, Chairman of the Senate Finance Committee, and the Chairman of the Ways and Means Committee, implemented the Data Center Consolidation Plan as presented to and approved by the Chairman of the Senate Finance Committee, and the Chairman of the House Ways and Means Committee on January 15, 1997. The plan is structured in phases with a final implementation date no later than July 2001. All agencies affected by this plan are required to comply with the directives and mandates inherent in this planning document and must transfer any needed fixed assets, staff, and associated FTEs to the Budget and Control Board at such time as they are requested. The Legislature, Judiciary, higher education institutions, and technical education institutions are exempt from this proviso. The Board shall report annually in its Agency Accountability Report appropriate performance measures relative to the operation of the Consolidated Data Center.

Likewise, it is the intent of the General Assembly to pursue application consolidation, where feasible, as referenced in the Consolidation Plan. The Board is authorized to assist in implementing a statewide financial management system. All agencies desiring new financial management systems will be encouraged to utilize the system endorsed and supported by the Comptroller General and to use the common equipment and software located in the Budget and Control Board's Consolidated Data Center. If an agency determines that it is necessary to deviate from the statewide system, the agency will be assessed a one-time charge payable to the Budget and Control Board to develop the interface to the Comptroller General's systems./     //

Amend the committee amendment further, as and if amended, page [3749-52] by adding:

//   Amend the bill, as and if amended, Part 1B, Section 56DD, GOVERNOR'S OFFICE, page 448, after line 2, by adding Proviso 56DD.39 to read:

/     56DD.39   (GOV: State CIO)   (A)   It is the intent of the General Assembly to create an instrumentality that provides leadership and direction for the use of information technology within government in South Carolina. The General Assembly recognizes the critical role information technology plays in providing cost effective and efficient services to the citizens of this State. The General Assembly envisions an enterprise information system that provides an easily accessible, reliable, and accurate information infrastructure to enhance both the quality and delivery of services.

(B)   There is created the Department of the State Chief Information Officer. The department is headed by the State Chief Information Officer appointed by the Governor with the advice and consent of the Senate. The State Chief Information Officer serves at the pleasure of the Governor.

(C)   The Department of the State Chief Information Officer may be organized in a manner the State Chief Information Officer considers most appropriate to carry out various duties, responsibilities, and authorities assigned to the department.

(D)   As used in this paragraph,

(1)   'Council' means the South Carolina Information Technology Council as established in this article.

(2)   'Department' means the Department of the State Chief Information Officer.

(3)   'Governmental body' means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, agency, government corporation, or other establishment or official of the executive branch. Governmental body does not mean the General Assembly or its respective branches or its committees, the Judicial Department, Legislative Council, the Office of Legislative Printing and Information Technology Services, and all local political subdivisions such as counties, municipalities, school districts, or public service or special purpose districts.

(4)   'Immediate family' means a person who is:

(a)   a spouse;

(b)   a child residing in the same household; or

(c)   claimed as a dependent for income tax purposes

(5)   'Information technology' means electronic data processing goods and services, telecommunications goods and services, information security goods and services, information management, microprocessors, software, information processing, office systems, any services related to these, and consulting or other services for design or redesign of information technology supporting business processes.

(6)   'Information technology vendor' means a person or entity who provides or proposes to provide goods or services in excess of an aggregate amount of four hundred thousand dollars to the department pursuant to a procurement contract or contracts for one or more projects within a fiscal year, but does not include an employee of the department, a state agency, or an instrumentality of the State. The term includes a corporation whose shares are traded publicly and which is the parent company of the contracting party in a procurement contract.

(7)   'Other state entity' means the General Assembly or its respective branches or its committees, the Judicial Branch, Legislative Council, the Office of Legislative Printing and Information Technology Resources, or any other state agency or department that is not a political subdivision or is not included in the definition of a governmental body.

(8)   'Political subdivision' means the counties, municipalities, school districts, special purpose districts, special service districts, commissioners of public works, and any other local authority, board, commission, agency, department, or political body.

(9)   'Telecommunications' means the provision, transmission, conveyance, or routing of voice, data, video, or any other information or signals to a point, or between or among points, by or through any electronic, radio, or other medium or method now in existence or devised after this article takes effect. Telecommunications includes, but is not limited to, local telephone services, toll telephone services, telegraph services, teletypewriter services, teleconferencing services, private line services, channel services, Internet protocol telephony, cable services, and mobile telecommunications services, and includes all facilities and equipment performing these functions.

(E)(1)   There is created the South Carolina Information Technology Council.

(2)   The council consists of the following nine members:

(a)   two cabinet agency directors appointed by the Governor;

(b)   one noncabinet agency director appointed by the Governor upon recommendation of the president of the State Agency Directors Organization;

(c)   one representative of the state institutions of higher learning appointed by the Council of Public College and University Presidents;

(d)   two citizen members from the private sector appointed by the Governor;

(e)   one citizen member from the private sector appointed by the President Pro Tempore of the Senate;

(f)     one citizen member from the private sector appointed by the Speaker of the House of Representatives; and

(g)   the State Chief Information Officer.

(3)   The State Chief Information Officer serves as chairman of the council.

(4)   Appointed members serve at the pleasure of the appointing authority. Members who serve by virtue of an office serve on the council while they hold that office.

(5)   Members serve without compensation, but citizen members of the council are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business of the council.

(6)   The powers and duties of the council include the following:

(a)   review and approve the coordinated statewide strategic plan for information technology prepared by the department;

(b)   review and approve statewide strategic information technology directions, standards, and enterprise architecture prepared by the department;

(c)   approve the criteria developed by the department for the review and approval of information technology plans and information technology projects of governmental bodies;

(d)   review and approve the procedures developed by the department for the allocation and distribution of funds from the Information Technology Innovation Fund;

(e)   upon recommendation of the department, the council may grant the department and governmental bodies exemptions from the requirements in this article;

(f)     upon recommendation of the department, the council may terminate any information technology project of a governmental body or governmental bodies; and

(g)   upon request of a governmental body, the council may review decisions of the department concerning whether the information technology plans and projects of the governmental body conform to statewide information technology plans, strategies, and standards.

(F)(1)   The State Information Technology Directors Committee is created to advise the State Chief Information Officer on matters relating to the development and implementation of information technology standards, policies, and procedures and facilitate the exchange of information among the information technology directors of governmental bodies. The committee includes representatives from governmental bodies and must be chosen in a manner and number determined by the State Chief Information Officer.

(2)   The State Chief Information Officer may establish other standing or ad hoc advisory committees to provide assistance relating to any other matters within the department's authority.

(3)   Members of the advisory committees appointed pursuant to subsections (1) and (2) are allowed the usual per diem and mileage as provided by law for members of boards, commissions, and committees while on official business of the committees. Members who are full-time state employees may not receive per diem.

(G)   The powers and duties of the department include the following:

(1)   develop for approval of the council a coordinated statewide strategic plan for information technology;

(2)   develop for approval of the council statewide strategic information technology directions, standards, and enterprise architecture. These directions, standards, and architecture must include, but are not limited to, information related to the privacy and confidentiality of data collected and stored by governmental bodies, web site accessibility, and assistive technologies. The department shall implement necessary management processes to assure that governmental bodies fully comply with these directions, standards, and architecture;

(3)   develop policies and procedures for the effective management of information technology investments throughout their entire life cycles, including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement;

(4)   evaluate the information technology of governmental bodies and combine information technology and related resources when the department determines that it is advisable from the standpoint of efficiency and cost effectiveness;

(5)   plan and forecast future needs for information technology and conduct studies and surveys of organizational structures and best management practices of information technology systems and procedures;

(6)   evaluate the information technology plans and projects of governmental bodies to ensure that the plans and projects are consistent with statewide plans, strategies, and standards, including alignment with the state's business goals, investments, and other risk management policies;

(7)   assist the Secretary of Commerce in the development of information technology related industries in the State and the promotion of economic development initiatives based on information technology;

(8)   assist governmental bodies in the development of guidelines concerning the qualifications and training requirements of information technology related personnel;

(9)   secure all telecommunications equipment and services for governmental bodies under terms the department considers suitable and coordinate the supply of the equipment and services for use by governmental bodies;

(10)   operate and manage a state consolidated data center, and other appropriate data centers, to be used by governmental bodies under terms and conditions established by the department;

(11)   develop information technology applications and services for entities requesting them;

(12)   administer information technology related procurements and contracting activities for governmental bodies in accordance with the South Carolina Consolidated Procurement Code;

(13)   enter into agreements and contracts with governmental bodies, political subdivisions, and other state entities to provide and receive goods and services. The department may establish fee schedules to be collectible from governmental bodies and other state entities for services rendered and goods provided;

(14)   hire necessary personnel and assign them duties and powers as the department prescribes; and

(15)   exercise and perform other powers and duties as granted to it, imposed upon it by law or necessary to carry out the purposes in this article.

(H)   The department has the following additional powers and duties relating to planning and the management of information technology projects of governmental bodies:

(1)   oversee the development of any statewide and multi-agency information technology enterprise projects;

(2)   develop for the approval of the council an approval process for the information technology plans of governmental bodies. Each governmental body is required to develop an information technology plan and submit the plan to the department for approval. The department may reject or require modification to those plans that do not conform to statewide information technology plans, strategies, and standards;

(3)   establish a methodology and process for conceiving, planning, scheduling, procuring, and providing appropriate oversight for information technology projects;

(4)   develop for the approval of the council an approval process for information technology projects proposed by governmental bodies to ensure that all of these projects conform to statewide information technology plans, strategies, and standards, the information technology plan of the governmental body, and the project management methodology. All information technology projects proposed by governmental bodies that exceed an amount established by the council, initially set at four hundred thousand dollars but subject to adjustment by the council, are subject to department approval. Governmental bodies may not artificially divide these projects so as to avoid departmental approval;

(5)   monitor information technology projects approved by the department. The department may modify and suspend any information technology project that is not in compliance with statewide information technology plans, strategies, and standards or that has not met the performance measures agreed to by the department and the sponsoring governmental body. The council may terminate projects upon recommendation of the department;

(6)   establish minimum qualifications and training standards for project managers; and

(7)   establish an information clearinghouse that identifies best practices and new developments and contains detailed information regarding the state's previous experiences with the development of information technology projects.

(I)(1)   The department has the following additional powers and duties relating to telecommunications:

(a)   coordinate the various telecommunications facilities and services used by governmental bodies;

(b)   acquire, lease, construct, or organize facilities and equipment as necessary to deliver comprehensive telecommunications services in an efficient and cost-effective manner, and maintain these facilities and equipment;

(c)   provide technical assistance to governmental bodies in areas such as:

(i)     performing systems development services, including design, application programming, and maintenance;

(ii)   conducting research and sponsoring demonstration projects pertaining to all facets of telecommunications; and

(iii)   planning and forecasting for future needs in communications services.

(2)   If requested by a political subdivision or other state entity, the department may supply telecommunications goods and services to the political subdivision or other state entity under terms and conditions agreed upon by the department and the political subdivision or other state entity.

(3)   A governmental body may not enter into an agreement or renew an existing agreement for telecommunications services or equipment unless approved by the department.

(J)   The department has the following additional powers and duties relating to information technology procurements by governmental bodies:

(1)   ensure that information technology procurements are conducted in a manner consistent with the South Carolina Consolidated Procurement Code and related regulations;

(2)   ensure that information technology procurements conform to statewide information technology plans, strategies, and standards. The department may reject any information technology procurement that does not conform to statewide information technology plans, strategies, and standards;

(3)   recommend to the council categories of information technology procurement which must be exempted from the requirements of the South Carolina Consolidated Procurement Code and related regulations;

(4)   enter into cooperative purchasing agreements with political subdivisions or other state entities for the procurement of information technology and allow political subdivisions and other state entities to participate in the department's procurement of information technology under terms and conditions established by the department; and

(5)   participate in, sponsor, conduct, or administer cooperative purchasing agreements for the procurement of information technology.

(K)   The department has the following additional powers and duties relating to the security of government information and infrastructure:

(1)   to protect the state's critical information technology infrastructure and associated data systems if there is a major disaster, whether natural or otherwise, and to allow the services to the citizens of this State to continue if there is such an event, the department shall develop a Critical Information Technology Infrastructure Protection Plan which devises policies and procedures to provide for the confidentiality, integrity, and availability of, and to allow for alternative and immediate on-line access to data and information systems necessary to provide critical information to citizens and ensure the protection of state employees as they carry out their disaster-related duties. All governmental bodies of this State are directed to assist the department in the collection of data required for this plan;

(2)   the department shall oversee, plan, and coordinate periodic security audits of governmental bodies regarding the protection of government information and information technology infrastructure. These security audits may include, but are not limited to, on-site audits as well as reviews of all written security procedures. The department may conduct the security audits or contract with a private firm or firms to conduct these security audits. Governmental bodies subject to a security audit shall cooperate fully with the entity designated to perform such audits.

(L)(1)   The Budget and Control Board shall provide, from funds appropriated for that purpose by the General Assembly, funds necessary to carry out all duties and responsibilities assigned to the department that are not reimbursable through a fee-for-service methodology. The department must deposit in a special account in the Office of the State Treasurer revenue received from providing goods and services to governmental bodies, political subdivisions, and other state entities. The revenue deposited in the account may be expended only for the costs of providing the goods and services, and these funds may be retained and expended for the same purposes.

(2)   There is created an Information Technology Innovation Fund. This fund must provide incentives to governmental bodies to implement enterprise initiatives and electronic government projects. Use of the fund must encourage governmental bodies to pursue innovative and creative approaches using technology that provides needed citizens services more cost effectively and efficiently. The fund may not be used to replace or offset appropriations for on-going technology expenditures and operations. The fund consists of those funds appropriated through the state budget process, grants, gifts, and other donations received by the State or otherwise available. The department, with the approval of the council, is responsible for developing appropriate procedures for the allocation and distribution of these funds.

(M)(1)   An information technology vendor for a procurement contractor contracts must not pay, give, or otherwise make available anything of value in violation of provisions of the South Carolina Ethics Reform Act. A violation of the act is subject to the provisions of Sections 11-35-4220 and 11-35-4230.

(2)   An information technology vendor who has entered into the competitive solicitation process for a procurement contract or contracts or who has been awarded a procurement contractor contracts with the department shall not contribute, for a period of twelve months before entering into the procurement process, except that during the first twelve months the period must be from the date of enactment, and during the term of the contract or contracts, to or make independent expenditures relative to the campaign of a candidate for the General Assembly or a statewide constitutional office; to a political party, as defined in Section 8-13-1300(26); or to a committee, as defined in Section 8-13-1300(6). This prohibition specifically applies to the officer or board member of an information technology vendor, holders of an interest in an information technology vendor of more than ten percent, and their immediate family members./   //

Renumber sections to conform.

Amend title to conform.

Senator MOORE raised a Point of Order that Amendment No. 47A was out of order inasmuch as it was violative of Rule 24.

The PRESIDENT sustained the Point of Order.

Amendment No. 47A was ruled out of order.

Senator KNOTTS proposed the following Amendment No. 44 (BEHPA-SHP02.DOC), which was tabled:

Amend the committee amendment, as and if amended, page [3749-55] by inserting:

//   Amend the bill, as and if amended, Part IB, Section 63, BUDGET AND CONTROL BOARD, page 462, paragraph 63.37, line 11, by inserting a new sentence at the end to read:

/Additionally, employees of a residential care facility that is a 501(C)(3) non-profit program, licensed by the State and serving children who are clients of the State's public agencies are eligible to participate in the State Health and Dental Insurance Plans./   //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator KNOTTS explained the amendment.

Senators RICHARDSON and LEATHERMAN spoke on the amendment.

Senator LEATHERMAN moved to lay the amendment on the table.

The amendment was laid on the table.

Senator KNOTTS proposed the following amendment (DC PROHIBIT AGENCY HEAD INCREASES.DOC), which was not adopted:

Amend the committee amendment, as and if amended, page [3749-55] by deleting that part of the amendment that amends Section 63, BUDGET AND CONTROL BOARD, page 457, Proviso 63.15, by striking lines 31-32.

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator KNOTTS explained the amendment.

Senator LEATHERMAN spoke on the amendment.

The amendment was not adopted.

Senators PEELER, SHORT, LEVENTIS, KNOTTS, RICHARDSON, ALEXANDER, GIESE, ANDERSON, MATTHEWS and BRANTON proposed the following Amendment No. 61 (RW-PA-REQUIRE REPAYMENT OF LOAN.DOC), which was adopted (#21):

Amend the committee amendment, as and if amended, page [3749-56], Proviso 63.58, by deleting:

//     In addition, the board shall forgive the repayment of $3,000,000 pursuant to the same loan agreement. //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator PEELER explained the amendment.

The amendment was adopted.

Senator SHORT raised a Point of Order that Proviso 13.27 as contained in H. 3748 as passed by the House is out of order inasmuch as it was violative of Rule 24.

13.27. (DSS: Integrated Children's Services Program-ICSP) There is established within the Department of Social Services a division titled the "Integrated Children's Services Program (ICSP)." The purpose of this program is to improve children's access to appropriate services, including those with emotional, developmental and physical disabilities while providing better statewide oversight, and prudent use of resources. The board shall consider the best practice standards for services to children in state custody or whom this division otherwise serves. The director is authorized to realign appropriated funds within the agency to accomplish the purposes of this new program.

The ICSP shall be comprised of the following entities: 1) Continuum of Care, 2) Case Resolution System, 3) Managed Treatment Services, 4) the Interagency System of Caring for Emotionally Disturbed Children, and other offices as designated by the director. The state office must centrally administer programs provided under the current Continuum of Care Division and Managed Treatment Services Division.

There is also created within the Department of Social Services the "Integrated Children's Services Program Board" for the purpose of facilitating, monitoring, and evaluating the delivery of services to children by these designated entities. The board shall be comprised of the following members: 1) one appointed by the Chairman of the House Ways and Means Committee; 2) one appointed by the Chairman of the Senate Finance Committee; 3) one appointed by the Speaker of the House; 4) one appointed by the President Pro Tempore of the Senate; and 5) one appointed by the Governor. The State Director of the Department of Social Services shall also serve as a member and shall serve as Chairman. In addition, the board shall annually elect, by majority vote, two additional members to the board to represent non-state entities or organizations that serve or advocate for children. The department shall provide staff support to this board and members shall serve without pay. The duties and responsibilities of the Children's Case Resolution System are devolved upon the ICSP Board.

The board shall emphasize the placement of agency resources in the field and to focus on in-home services for children. When services are being provided to emotionally disturbed children, the Interagency System of Caring for Emotionally Disturbed Children guidelines must be followed. Programs for emotionally disturbed children must be centrally administered by the state.

The duties and responsibilities include, but are not limited to the following: 1)The board shall have final authority to mandate necessary coordination of care and cost sharing by state agencies providing services to children with special needs subject to the restrictions based upon substantial impact of funding set forth in Section 20-7-5245. The board shall submit the plan for coordination of care and cost sharing by state agencies to the State Budget and Control Board for review prior to implementation of the plan. 2) No children considered for placement in a substitute care setting outside South Carolina may be placed out-of-state without approval of the board after compliance with the requirements of Section 20-7-5245. Every year the board shall provide to the General Assembly and Governor a report outlining programmatic outcomes for children's services and fiscal data for each child-serving agency. This report shall be prepared by an independent professional who participates in the design of data collection. The report shall include an evaluation of the current system of children's services in South Carolina, and identification of any breaks in the delivery of service to children, either because of restrictions by law or substantial lack of services or funding. The report shall make recommendations to the General Assembly for changes in state laws, regulations, procedures, protocols or funding to ensure appropriate, efficient services for children with special needs.

The PRESIDENT took the Point of Order under advisement.

Senator SHORT raised a Point of Order that Proviso 13.28 as contained in H. 3748 as passed by the House is out of order inasmuch as it was violative of Rule 24.

13.28. (DSS: Day Care Licensing) Funding for Day Care Licensing in Part IA, Section 13, Department of Social Services, must be transferred to the Department of Health and Environmental Control by September 1, 2003. The amount to be transferred must be $2,458,618 in total funds and $55,204 in general funds. The number of FTE's to be transferred must be 13.00 total funds and 1.17 general funds. The Director of the Office of State Budget must provide for this transfer after conferring with the directors of state agencies affected by this provision. The Department of Health and Environmental Control must consider employees of the Department of Social Services working in Day Care Licensing for employment with the Department of Health and Environmental Control in a similar capacity.

The PRESIDENT took the Point of Order under advisement.

On motion of Senator LEATHERMAN, with unanimous consent, debate was interrupted by the recess.

At 12:59 P.M., on motion of Senator LEATHERMAN, the Senate receded from business until 1:30 P.M.

The Senate reassembled at 1:38 P.M. and was called to order by the ACTING PRESIDENT, Senator MARTIN.

At 1:38 P.M., Senator LEATHERMAN made the point that a quorum was not present. It was ascertained that a quorum was present. The Senate resumed.

The Senate proceeded to a consideration of the Bill, the question being the adoption of the amendment proposed by the Committee on Finance.

Senator KNOTTS, asked unanimous consent to take up amendment No. 212 for immediate consideration.

Senator RITCHIE objected.

Senator MOORE proposed the following Amendment No. 192 (AMD3749TLMFC31), which was adopted (#22):

Amend the Finance Committee Amendment, as and if amended, page 3749-56 of the amendment, the fifth amendment on the page pertaining to Proviso 64.18 by striking the amendment in its entirety.

Amend title, totals, part, section and other necessary references to conform

Senator MOORE explained the amendment.

Senator LEATHERMAN spoke on the amendment.

The amendment was adopted.

Senator SHORT raised a Point of Order that Proviso 8.17 as contained in H. 3748 as passed by the House is out of order inasmuch as it was violative of Rule 24.

8.17. (DHHS: Division on Aging Transfer) Notwithstanding any other provision of law, the duties, functions and responsibilities of the Division on Aging in the Office of the Governor are transferred to the Department of Health and Human Services as the Office on Aging. The director of the department must employ a deputy director to be the administrator for the office.

The PRESIDENT took the Point of Order under advisement.

Senator RICHARDSON asked unanimous consent to take up Amendment #220A for immediate consideration.

There was no objection.

Senator RICHARDSON proposed the following Amendment No. 220A (20605SD03.DOC):

Amend the Senate Finance Committee amendment, as and if amended, page 3749-64, by adding an appropriately numbered section to read:

// Section   _____.   (A)   The 1976 Code is amended by adding Section 12-36-1115:

"Section 12-36-1115.   For fiscal year 2003-2004 only, the State shall impose a new sales tax, equal to one percent of the gross proceeds of sale on every person engaged or continuing within this State in the business of selling tangible personal property at retail. The new one percent sales tax imposed for fiscal year 2003-2004 only does not apply to food or foodstuffs sold at retail.

(B)   The 1976 Code is amended by adding Section 12-21-625:

Section 12-21-625.   Effective for fiscal year 2003-2004 only, and in addition to any tax imposed on all cigarettes made of tobacco or any substitute for tobacco, an additional license tax equal to 2.65 cents on each cigarette made of tobacco or any substitute for tobacco shall be levied and collected. The amount imposed pursuant to this subsection must be reported, paid, collected, and enforced in a manner determined by the Department of Revenue. There is created in the State Treasury the Medicaid Match Fund. The revenue of the tax imposed pursuant to this subsection must be credited to the Medicaid Match Fund. This fund must be separate and distinct from the general fund of the State. Monies in the fund must be used by the Department of Health and Human Services solely as the state match for federal Medicaid funding.

(C)(1)   This subsection may be cited as the Economic Recovery Tax Relief Act.

(2)   For purposes of this subsection:

(a)   "Board of Economic Advisors" means the Board of Economic Advisors of the State Budget and Control Board established pursuant to Section 11-9-820 of the 1976 Code.

(b)   "Board of Economic Advisors revenue estimate" means a Board of Economic Advisors estimate of revenues made by October tenth of each year as required by this subsection.

(c)   "Individual income tax revenue" means total state individual income tax revenue for a fiscal year.

(d)   "Individual income tax general fund revenue" means individual income tax revenue reduced by amounts required to be deducted and credited to the Trust Fund for Tax Relief pursuant to Section 11-11-150. In determining individual income tax general fund revenue, the amount deducted from individual income tax revenue for credit to the Trust Fund for Tax Relief must be an amount which bears the same ratio to the total Trust Fund for Tax Relief amount for a fiscal year as individual income tax revenue bears to the sum of individual income tax revenue and corporate income tax revenue for the fiscal year.

(e)   "Base revenue" means $2,092,691,000 adjusted upward by one and one-half percent a fiscal year beginning with the fiscal year immediately succeeding the fiscal year in which individual income tax general fund revenue first equals or exceeds $2,092,691,000.

(f)   "Economic recovery revenue" means the amount by which the Board of Economic Advisors revenue estimate for individual income tax general fund revenue exceeds base revenue.

(g)   "Cigarette tax increase" means a state tax on cigarettes in excess three and one-half mills a cigarette.

(h)   "Cumulative cigarette tax increase" means the sum of state revenues derived from a cigarette tax increase for each completed fiscal year since inception.

(3)   Effective for fiscal year 2003-2004, the Comptroller General shall certify to the Board of Economic Advisors by October first following the close of the fiscal year base revenue, individual income tax revenue for the fiscal year that just ended, individual income tax general fund revenue for the fiscal year that just ended, and the cumulative cigarette tax increase.

(4)   The individual income tax liability for the taxable year beginning after December 31,2003, there is allowed an Economic Recovery Tax Credit allocated among the individual income taxpayers of South Carolina as provided in item (5) of this subsection. The Economic Recovery Tax Credit is nonrefundable for individual income taxpayers. The total Economic Recovery Tax Credit allowed is an amount equal to eighty percent of the economic recovery revenue for fiscal year 2003-2004.

(5)   The Board of Economic Advisors shall calculate and certify the total amount of the Economic Recovery Tax Credit to the Department of Revenue by October tenth of fiscal year 2003-2004. The Department of Revenue shall establish a method to apply the Economic Recovery Tax Credit to individual income tax returns that meets each of the following criteria:

(a)   the amount of the Economic Recovery Tax Credit realized by an individual taxpayer must be an amount which bears the same ratio to the total amount of the Economic Recovery Tax Credit as the income tax due as shown on the taxpayer's income tax return before taking the Economic Recovery Tax Credit bears to the individual income tax revenue for the fiscal year;

(b)   the Economic Recovery Tax Credit realized by individual taxpayers must be determined by a formula that calculates the Economic Recovery Tax Credit in terms of a percentage reduction to the state income tax liability of each individual; and,

(c)   the Economic Recovery Tax Credit does not produce a negative income tax liability for individual income taxpayers.

(6)   The Economic Recovery Tax Credit provided by this subsection terminates effective June 30, 2004.

(7)   The Department of Revenue shall apply the income tax rate reductions to the applicable rates, and these rates as reduced, apply in lieu of the former rates. After the income tax rate reductions.

(D)     Revenues raised as result of the provisions of this section must be deposited in the general fund of the State and allocated to the following areas as provided in Part 1A of the general appropriations act:

Base Student Cost; State Employee Insurance and Salary Increase; Departments of Corrections, Juvenile Justice, and Public Safety, Prosecution, SLED, Judicial; Departments of Health and Human Services, DHEC, DSS, Department of Mental Health, and Disabilities and Special Needs; ESOL (English as a Second Language) - per student funding; Medical University of South Carolina Nursing School Expansion and Islet Diabetes Research Program; Charleston Harbour; Higher Education Equalization Program; Trident Technical Culinary Program; Technical College of the Low Country Nursing School Expansion Program; and USC - Beaufort Teacher Quality Training Institute; or other areas as provided by the General Assembly." //

Renumber sections to conform.

Amend sections, totals and title to conform.

Senator RICHARDSON requested under Rule 18 to divide the amendment.

Senator RICHARDSON explained the amendment.

Senator SETZLER made a Parliamentary Inquiry as to whether the amendment could be divided.

Senator LEATHERMAN spoke on the inquiry.

The ACTING PRESIDENT stated that the amendment was divisible.

Senator SETZLER raised a Point of Order that the amendment was not divisible.

The ACTING PRESIDENT stated that the Point of Order came too late.

Senator RICHARDSON explained the amendment.

Amend the Senate Finance Committee amendment, as and if amended, page 3749-64, by adding an appropriately numbered section to read:

// Section   _____.   (A)   The 1976 Code is amended by adding Section 12-36-1115:

"Section 12-36-1115.   For fiscal year 2003-2004 only, the State shall impose a new sales tax, equal to one percent of the gross proceeds of sale on every person engaged or continuing within this State in the business of selling tangible personal property at retail. The new one percent sales tax imposed for fiscal year 2003-2004 only does not apply to food or foodstuffs sold at retail.

Senator RICHARDSON explained the amendment.

Senator LEATHERMAN raised a Point of Order that Part A of Amendment 220A was out of order inasmuch as it was violative of Rule 24.

Senators RICHARDSON, LEATHERMAN, THOMAS and McCONNELL spoke on the Point of Order.

Senator LEATHERMAN raised a Point of Order that Part A of Amendment 220A was out of order inasmuch as it was violative of Section 11-11-440, S. C. Code of Laws, 1976, as amended.

The ACTING PRESIDENT sustained the Point of Order raised under Rule 24.

Senator RICHARDSON appealed the decision of the PRESIDENT.

At 2:43 P.M., Senator THOMAS assumed the Chair.

The question then was "Shall the Ruling of the PRESIDENT be overridden?"

Senator McCONNELL spoke on the appeal.

Senator RICHARDSON spoke on the appeal.

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

Anderson                  Glover                    Gregory
Holland                   Jackson                   Land
Leventis                  Malloy                    Matthews
Moore                     Patterson                 Reese
Richardson                Ritchie                   Short
Verdin                    Waldrep

Alexander                 Branton                   Courson
Cromer                    Elliott                   Fair
Ford                      Giese                     Grooms
Hawkins                   Hayes                     Knotts
Kuhn                      Leatherman                McConnell
McGill                    Mescher                   O'Dell
Peeler                    Rankin                    Ravenel
Ryberg                    Setzler                   Smith, J. Verne
Thomas

Having failed to receive the requisite number of votes, the appeal of the decision of the ACTING PRESIDENT whereby Part A of Amendment No. 220A was out of order was not overridden.

Part A of Amendment No. 220A was ruled out of order.

At 3:23 P.M., on motion of Senator LEATHERMAN, the Senate receded from business not to exceed fifteen minutes.

At 6:22 P.M., the Senate resumed.

At 6:22 P.M., Senator MARTIN assumed the Chair.

The question then was the adoption of Part B of Amendment No. 220A.

On motion of Senator RICHARDSON, with unanimous consent, Amendment No. 220A was withdrawn.

Senator McCONNELL asked unanimous consent to make a motion to give H. 3749, the General Appropriation Bill, a second reading with notice of general amendments on third reading, carrying over all amendments to third reading, each member reserving their rights;

the Report of the Senate Finance Committee would be adopted, as amended; provided, however, that no member shall be prohibited from offering any amendment on third reading and provided, further, that all Points of Order are preserved under Rule 24A and Rule 24B as agreed by unanimous consent on second reading to apply to all of the Bill, and no member shall lose any rights to raise Points of Order in a timely fashion on third reading, or to be prejudiced regarding amendments to the third degree;

the Senate would proceed to a consideration of H. 3598, and take up for immediate consideration Amendment No. 1B;

consideration of Amendment No. 1B would continue for 1 hour, allowing equal time for discussion for proponents and opponents, and at the conclusion of the hour, the amendment would be subjected to a motion to table;

after the disposition of the motion to table Amendment No. 1B, H. 3598 would be given a second reading with notice of general amendments on third reading, carrying over all amendments to third reading, with the Bill taking its normal place on the Calendar; that no member shall be prohibited from offering any amendment on third reading; and provided, further, that all Points of Order are preserved under Rule 24 and no member shall lose any rights to raise Points of Order in a timely fashion on third reading;

the Senate would agree to go into Executive Session prior to adjournment for appointments and thereafter consider in open session any uncontested appointments;

the Senate would stand adjourned to meet in statewide session on Monday, April 19, 2003, at 1:30 P.M., at which time the Senate would proceed under the routine Order of Business; and, further,

H. 3749 would be subject to a motion to reconsider after third reading which would be carried over for no more than three days.

There was no objection and the motion was adopted.

On motion of Senator McCONNELL, with unanimous consent, the Report of the Committee on Finance was adopted, as amended, and H. 3749 was read the second time with notice of general amendments, carrying over all amendments to third reading.

On motion of Senator McCONNELL, with unanimous consent, the Senate agreed to go into Executive Session prior to adjournment.

PURSUANT TO THE MOTION, THE SENATE PROCEEDED TO A CONSIDERATION OF H. 3598.

H. 3598 (Word version) -- Reps. Richardson, Bailey, Bowers, Clark, Clyburn, Edge, Hamilton, Herbkersman, Hosey, Kirsh, Limehouse, Mahaffey, Neilson, Owens, Quinn, Rivers, Sandifer, Simrill, Snow, Vaughn and Whipper: A BILL TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAX EXEMPTIONS, SO AS TO PROVIDE THAT READING GLASSES ARE EXEMPT ITEMS DURING THE AUGUST SALES TAX HOLIDAY.

The Senate proceeded to a consideration of the Bill, the question being the second reading of the Bill.

Senator J. VERNE SMITH proposed the following Amendment No. 1B (GGS\22188HTC03), which was tabled:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/ SECTION   1.   A.   Article 25, Chapter 3, Title 12 of the 1976 Code, as amended by adding:

"Section 12-36-2647.   (A)   In addition to all other taxes imposed on cigarettes made of tobacco or substitutes for tobacco, there is imposed a special sales tax measured by the cigarette equal to 2.65 cents on each cigarette. This special sales tax on cigarettes is imposed; and must be reported, paid, collected, and enforced in the same manner that the license tax on cigarettes is imposed, reported, paid, enforced, and collected.

(B)   There is created in the state treasury the Medicaid Match Fund. Monies collected pursuant to this section must be credited to the Medicaid Match Fund. This fund must be separate and distinct from the general fund of the State. Monies in the fund must be used by the Department of Health and Human Services solely as the state match for federal Medicaid funding. Monies in the fund are supplementary and may not be used to replace recurring monies appropriated from the general fund of the State or from other funds for the support of the Medicaid program. The fund is exempt from any budgetary cuts or reductions caused by the lack of general fund revenues. Earnings on investments of monies in the fund must be credited to the fund and used for the same purposes as other monies in the fund. Any monies in the fund not expended during a fiscal year must be carried forward to the succeeding fiscal year and used for the same purposes."

B.   Article 25, Chapter 36, Title 12 of the 1976 Code is amended by adding:

"Section 12-36-2648.   (A)   The license taxes imposed on cigarettes by Section 12-36-2647 and by the tax imposed pursuant to Section 12-21-620 must be paid by affixing stamps to each individual package in the manner and at the time set forth in this section. A stamp evidencing the taxes levied in Sections 12-36-2647 and 12-6-620 may not be of a denomination of less than one cent and whenever the tax computed at the rate prescribed in this section is a specified amount plus a fractional part of one cent, the package must be stamped for the next full cent.

(B)   The department may authorize wholesale dealers in cigarettes to store cigarettes intended to be sold and shipped out of this State in separate compartments of their business without affixing revenue stamps. However, a wholesale dealer making shipments of cigarettes to locations out of this State shall apply to the department for a license that allows the wholesale dealer to maintain the separate compartments authorized by this subsection. A wholesale dealer in cigarettes violating the rules and regulations permitting the storage of cigarettes without affixing the stamps is liable for the penalties contained in this title.

(C)   The stamps must be affixed to each individual package by wholesalers within seventy-two hours after the products are received by them and by retailers within twenty-four hours of receipt by them of these products. In any event, these goods must be stamped before being sold. If cigarettes are manufactured within the State and sold directly to consumers, they must be stamped by the manufacturer when and as sold.

(D)   Each person or distributor of cigarettes taxable under Sections 12-36-2647 and 12-21-620, first receiving untaxed cigarettes for sale or distribution in this State, is subject to the taxes imposed in Sections 12-36-2647 and 12-21-620. Each person or distributor required to pay the taxes by affixing stamps must also make a report to the department, in the form the department prescribes, of all cigarettes and cigarette tax stamps in inventory at the beginning and end of the month, all cigarettes and cigarette tax stamps purchased during the month, all cigarettes disposed of in this State during the month, and other information required by law or considered necessary by the department. If the report indicates that the person or distributor did not stamp all cigarettes disposed of, the person or distributor shall pay the additional taxes with the report. The report and taxes, if any additional taxes are due with the report, are due no later than the twentieth day of the month next succeeding the month of the purchase or disposition."

C.     Cigarettes held in inventory on January 1, 2004, by the person or distributor who first received the cigarettes into this State must be stamped as provided in Section 12-36-2648 of the 1976 Code as added by this section. Credit must be allowed for any taxes previously paid on the cigarettes.

D.   Section 12-21-735 of the 1976 Code is repealed.

E.   Notwithstanding the general effective date of this act, subsection A of this section takes effect on the first day of the second month following approval of this act by the Governor. Subsections B, C, and D take effect January 1, 2004.

SECTION   2.   Article 5, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-517.   (A)   This section may be cited as the Economic Recovery Tax Relief Act.

(B)   For purposes of this section:

(1)   'Board of Economic Advisors' means the Board of Economic Advisors of the State Budget and Control Board established pursuant to Section 11-9-820.

(2)   'Board of Economic Advisors revenue estimate' means a Board of Economic Advisors estimate of revenues made by October tenth of each year as required by this section.

(3)   'Individual income tax revenue' means total state individual income tax revenue for a fiscal year.

(4)     'Individual income tax general fund revenue' means individual income tax revenue reduced by amounts required to be deducted and credited to the Trust Fund for Tax Relief pursuant to Section 11-11-150. In determining individual income tax general fund revenue, the amount deducted from individual income tax revenue for credit to the Trust Fund for Tax Relief must be an amount which bears the same ratio to the total Trust Fund for Tax Relief amount for a fiscal year as individual income tax revenue bears to the sum of individual income tax revenue and corporate income tax revenue for the fiscal year.

(5)   'Base revenue' means $2,092,691,000 adjusted upward by one and one-half percent a fiscal year beginning with the fiscal year immediately succeeding the fiscal year in which individual income tax general fund revenue first equals or exceeds $2,092,691,000.

(6)   'Economic recovery revenue' means the amount by which the Board of Economic Advisors revenue estimate for individual income tax general fund revenue exceeds base revenue.

(7)   'Cigarette tax increase' means a state tax on cigarettes in excess three and one-half mills a cigarette.

(8)   'Cumulative cigarette tax increase' means the sum of state revenues derived from a cigarette tax increase for each completed fiscal year since inception.

(C)   Beginning with fiscal year 2003-2004, the Comptroller General shall certify to the Board of Economic Advisors by October first following the close of the fiscal year:

(1)   base revenue;

(2)   individual income tax revenue for the fiscal year that just ended;

(3)   individual income tax general fund revenue for the fiscal year that just ended; and

(4)   the cumulative cigarette tax increase.

(D)   Beginning with individual income tax liability for taxable years beginning after December 31,2003, and each taxable year thereafter and continuing until the date provided in subsection (I), there is allowed an Economic Recovery Tax Credit allocated among the individual income taxpayers of South Carolina as provided in subsection (E) of this section. The Economic Recovery Tax Credit is nonrefundable for individual income taxpayers. Except as provided in subsection (G), the total Economic Recovery Tax Credit allowed is an amount equal to eighty percent of the economic recovery revenue for the current fiscal year. There is no Economic Recovery Tax Credit allowed in a fiscal year in which there is no economic recovery revenue. The amount of the Economic Recovery Tax Credit allowed for a specific fiscal year is realized by an individual taxpayer for a taxable year ending on or after December thirty-first during that specific fiscal year.

(E)   The Board of Economic Advisors shall calculate and certify the total amount of the Economic Recovery Tax Credit to the Department of Revenue by October tenth of each year. The Department of Revenue shall establish a method to apply the Economic Recovery Tax Credit to individual income tax returns that meets each of the following criteria:

(1)   the amount of the Economic Recovery Tax Credit realized by an individual taxpayer must be an amount which bears the same ratio to the total amount of the Economic Recovery Tax Credit as the income tax due as shown on the taxpayer's income tax return before taking the Economic Recovery Tax Credit bears to the individual income tax revenue for the fiscal year;

(2)   the Economic Recovery Tax Credit realized by individual taxpayers must be determined by a formula that calculates the Economic Recovery Tax Credit in terms of a percentage reduction to the state income tax liability of each individual; and,

(3)   the Economic Recovery Tax Credit does not produce a negative income tax liability for individual income taxpayers.

(F)   The individual income tax rates imposed for each income bracket pursuant to Section 12-6-510 are reduced by one-half of a percentage point effective for taxable years beginning on or after the first day of January immediately following the close of the fiscal year in which a Board of Economic Advisors revenue estimate provides that the following conditions are met:

(1)   the sum of the cumulative amount of Economic Recovery Tax Credit allowed pursuant to this section since enactment for completed fiscal years and the Economic Recovery Tax Credit established in October of the current fiscal year, equals or exceeds the sum of the cumulative cigarette tax increase and the Board of Economic Advisors revenue estimate of the cigarette tax increase through December thirty-first of the current fiscal year; and

(2)   the total Economic Recovery Tax Credit for the current fiscal year is sufficient to offset a one-half percentage point reduction in individual income tax rates for each income bracket during the current calendar year.

(G)   Effective at the beginning of the fiscal year following the income tax rate reductions provided for in section (F), and continuing for succeeding fiscal years until the Economic Recovery Tax Credit is terminated pursuant to subsection (I), the Economic Recovery Tax Credit amount defined in subsection (D) is an amount equal to fifty percent of each fiscal year's economic recovery revenue.

(H)   After the income tax rate reductions and adjustment of the Economic Recovery Tax Credit amount provided in subsections (F) and (G) are implemented, the rates for each income bracket are permanently reduced by one and one-half of a percentage point effective for taxable years beginning on or after the first day of January immediately following the close of the fiscal year in which each of the following conditions are met:

(1)   the current fiscal year Board of Economic Advisors revenue estimate provides that the total Economic Recovery Tax Credit for the current fiscal year is sufficient to offset a one and one-half percentage point reduction in individual income tax rates for each income bracket during the current calendar year; and

(2)   in each of the two fiscal years immediately preceding the current fiscal year, the Economic Recovery Tax Credit was sufficient to offset a one and one-half percentage point reduction in state individual income tax rates for each income bracket based upon actual individual income tax revenue as certified by the Comptroller General.

(I)   The Economic Recovery Tax Credit provided by this section terminates effective the first taxable year in which the permanent reduction to individual income tax rates provided by subsection (H) takes effect.

(J)(1)   The Department of Revenue shall apply the income tax rate reductions provided in subsections (F) and (H) to the then applicable rates, and these rates as reduced, apply in lieu of the former rates.

(2)   After the income tax rate reductions provided for in subsection (F) take effect, the Department of Revenue shall calculate the effective tax rates for each income bracket resulting from the application of the Economic Recovery Tax Credit for each taxable year that the Economic Recovery Tax Credit is allowed. These effective rates must be printed with tax tables and posted on the department's web site."

SECTION   3.   Except where otherwise provided, this act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator J. VERNE SMITH explained the amendment.

Senator KNOTTS argued contra to the adoption of the amendment.

Senator PEELER moved to lay the amendment on the table.

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

Branton                   Courson                   Drummond
Elliott                   Ford                      Glover
Grooms                    Hawkins                   Holland
Hutto *                   Jackson                   Knotts
Kuhn                      Land                      Leventis *
Malloy                    Matthews                  McConnell
McGill                    Mescher                   Moore
Patterson                 Peeler                    Pinckney
Rankin                    Setzler                   Verdin

Alexander                 Cromer                    Fair
Giese                     Gregory                   Hayes
Leatherman                Martin                    O'Dell
Ravenel *                 Reese                     Richardson
Ritchie                   Ryberg                    Short
Smith, J. Verne           Thomas                    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 laid on the table.

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, carrying over all amendments to third reading.

On Wednesday May 14, 2003, Senator MOORE placed an amendment before the Senate that, among other things, contained a provision to raise the tax on cigarettes by $.53 per pack for an estimated increase of $171 million in new revenue. The provision further created a special Medicaid Match Fund in the State Treasury and dedicated every dollar of this revenue to this new fund. In addition, the amendment added another $61 million to Medicaid match to fund Medicaid services at a total of $232 million.

The amendment by Senator J. VERNE SMITH also raises the tax on cigarettes by $.53 but ties the increase in revenue to an income tax reduction plan. This plan purports to have tax neutrality. With income tax being $1.2 billion of our current general fund revenue, it is our belief that there is no scenario where $171 million in new revenue neutralizes the loss of this $1.2 billion - regardless of the time frame provided for the phase out of the income tax.

The amendment offered by Senator MOORE raised $171 million and more then directly dedicated it to match federal Medicaid funds. It is the only amendment that provided necessary Medicaid services without an offsetting reduction in state revenue.

In a 5.1 million dollar budget, the question we faced was one of priorities of how our government could meet our obligations while living within our means. If Medicaid is a priority, it should have been addressed in the allocation of the 5.1 billion dollars available. We could not in good conscience burden our citizens with a massive tax increase with no assurance of an income tax reduction in the years ahead. If we had been allowed to vote separately on an income tax reduction, we would have done so. Our concern was for the taxpayers across the State and for the vitality of our economy.

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

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

Martinez Masterson, P.O. Box 481, Ridgeland, S.C. 29936 VICE Judge Lavell (resigned)

On motion of Senator McCONNELL, the seal of secrecy was removed, so far as the same relates to appointments made by the Governor and the following names were reported to the Senate in open session:

Having received a favorable report from the Committee on Medical Affairs, the following appointments were confirmed in open session:

Initial Appointment, Board of the South Carolina Department of Health and Environmental Control, with term to commence June 30, 2003, and to expire June 30, 2007

6th Congressional District

Coleman F. Buckhouse, M.D. 2008 Highland Avenue, Florence, S.C. 29501 VICE Lawrence R. Chewning

Initial Appointment, Board of the South Carolina Department of Health and Environmental Control, with term to commence June 30, 2001, and to expire June 30, 2005

At-Large - Chairman

Elizabeth Hagood, 46 South Battery, Charleston, S.C. 29401 VICE Brad Wyche

Having received a favorable report from the Committee on Corrections and Penology, the following appointment was confirmed in open session:

Reappointment, South Carolina Board of Probation, Parole and Pardon Services, with term to commence March 17, 2003, and to expire March 17, 2009

5th Congressional District

Joseph P. Hodges, 131 Jordan Street, Bennettsville, S.C. 29512

Under the provisions of Section 8-13-700, S. C. Code of Laws, I wish the Journal to reflect that I abstained from consideration of and voting on matters pertaining to the appointment of Mr. Joseph P. Hodges to the S. C. Board of Probation, Parole and Pardon Services.

Having received a favorable report from the Committee on Judiciary, the following appointments were confirmed in open session:

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 19, 2002, and to expire May 19, 2009

Horry

Vernie E. Dove, Sr., 1303 Azalea Court, Myrtle Beach, S.C. 29572 VICE William H. Alford (resigned)

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 19, 1998, and to expire May 19, 2005

3rd Congressional District

G. Dial Dubose, P. O. Box 1929, Easley, S.C. 29641 VICE Joseph Jackson Turner (resigned)

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 19, 2001, and to expire May 19, 2008

Georgetown County

Guerry E. Green, 8 Lachicotte Drive, Pawleys Island, S.C. 29585 VICE James M. Wooten

Initial Appointment, Board of Directors of the South Carolina Public Service Authority, with term to commence May 19, 2000, and to expire May 19, 2007

4th Congressional District

Keith D. Munson, 112 Cliffwood Court, Greer, S.C. 29650 VICE Merl F. Code (resigned)

Senator McCONNELL moved that, when the Senate adjourns on Friday, May 16, 2003, it stand adjourned to meet next Monday, May 16, 2003, at 1:30 P.M., which motion was adopted.

At 7:49 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 11:00 A.M. under the provisions of Rule 1 for the purpose of taking up local matters and uncontested matters which have previously received unanimous consent to be taken up.

This web page was last updated on Wednesday, June 24, 2009 at 3:44 P.M.