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

Printed Page 3039 . . . . . Tuesday, May 27, 2003

Tuesday, May 27, 2003
(Statewide Session)

Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 12:00 Noon, the hour to which it stood adjourned, and was called to order by the PRESIDENT.

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

Beloved, as we celebrate Memorial Day, hear the words of Hebrews 12:1:

"Therefore, since we are surrounded by so great a cloud of witnesses, let us also lay aside every weight... and let us run with perseverance the race that is set before us... "
Let us pray.

Father, we do not want to forget the past, but by all that is holy, make us equal to the tasks of the present for which we are responsible.

As we look at the portraits and study the lives of great men and women of our history, they look so like the people we see each day... earnest... dreamers... determined!

Yes, Lord, we know what made them to be remembered! They had a vision of a better world... and they had the character to struggle to turn their dreams into reality!

May we follow in their train!
Amen!

RECESS

At 12:06 P.M., on motion of Senator McCONNELL, the Senate receded from business pending the presence of a quorum.

At 12:24 P.M., the Senate resumed.

Motion Adopted

On motion of Senator MARTIN, with unanimous consent, Senators HUTTO, RITCHIE and MARTIN were granted leave to attend a meeting of a Committee of Conference on S. 555, be notified of any roll call votes and be allowed to vote from the balcony.

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

Printed Page 3040 . . . . . Tuesday, May 27, 2003

MESSAGE FROM THE GOVERNOR

The following appointments were transmitted by the Honorable Mark C. Sanford:

Statewide Appointments

Initial Appointment, Board of Directors of the Jobs-Economic Development Authority, with term to commence July 27, 2003, and to expire July 27, 2006

2nd Congressional District

Peter M. Brown, Colite International, Ltd., P.O. Box 4005, West Columbia, S.C. 29171 VICE Thomas C. Barnwell, Jr.

Referred to the Committee on Labor, Commerce and Industry.

Initial Appointment, South Carolina Commission on Women, with term to commence October 18, 2003, and to expire October 18, 2007

At-Large

Michelle Thaxton Hardy, 1703 Evans Street, Newberry, S.C. 29108 VICE Johnnie D. Fulton

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina State Commission for Minority Affairs, with term to commence June 30, 2003, and to expire June 30, 2007

6th Congressional District

Eddie Clay Guess, 218 Prestley Drive, Columbia, S.C. 29203 VICE Albert A. Neal

Referred to the Committee on Judiciary.

Initial Appointment, South Carolina Board of Probation, Parole and Pardon Services, with term to commence March 15, 2003, and to expire March 15, 2009

3rd Congressional District

James H. Williams, 103 Mountainrock View, Easley, S.C. 29642 VICE Anne P. Elliott

Referred to the Committee on Corrections and Penology.

Printed Page 3041 . . . . . Tuesday, May 27, 2003

Initial Appointment, Governing Board of the Department of Natural Resources, with term to commence July 1, 2002, and to expire July 1, 2006

At-Large

Kemp D. Box, Carolina Helicopter Services, P. O. Box 6822, Columbia, S.C. VICE Danny Ford

Referred to the Committee on Fish, Game and Forestry.

Doctor of the Day

Senator McCONNELL introduced Dr. Louis Costa of Charleston, S.C., Doctor of the Day.

Leave of Absence

At 2:00 P.M., Senator PINCKNEY requested a leave of absence from 10:00 A.M. - 5:00 P.M. on Wednesday, May 28, 2003.

Leave of Absence

At 2:00 P.M., Senator FORD requested a leave of absence from 6:00 - 9:00 P.M. on Wednesday, May 28, 2003.

Expression of Personal Interest

Senator KUHN rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator DRUMMOND rose for an Expression of Personal Interest.

  Remarks by Senator DRUMMOND

Mr. PRESIDENT and fellow members of the Senate:

I would like to talk to you for a few minutes. I have been sitting here for the past two weeks watching things happen on this Senate Floor. I was honored yesterday to speak at Greenwood Square for Memorial Day. I reminded those people what a wonderful country we live in and how we are blessed and able to live in this free country, because a lot of people gave their lives for us. I saw some of those lives given. You can go back hundreds of years and we would retain the freedom that we have because of the sacrifice of many. I told you all right here at this podium that I saw a little French boy executed in front of me when I was captured. He gave his life because he was sabotaging behind the lines to support the troops in Normandy.

Printed Page 3042 . . . . . Tuesday, May 27, 2003

I haven't been pleased and I don't believe one person in here has been pleased by what has been happening. I picked up an old legislative manual and looked through it. I looked through some of them and found that there is a lot of history in those manuals. We ought to go back and look through them sometime. The first one I picked up was this one right here, the year 2000. When I thumbed back through it and I got to the section on the Senate, I started to count the D's and the R's, which come right after our names. You know what? The D's and the R's were almost evenly divided that year -- 24 D's and 21 R's. That was the year 2000. I flipped back a few more pages until I came to the committee chairs and I started counting the D's and the R's. It was almost even again. There were nine committee chairs with D's after the names and six with R's after the names. Well, that seemed fair enough and I think all of us will agree to that. We represented almost even -- the split membership in this Senate between the two parties. Well, I had a little bit more time and as all know I have the front row seat over there. I sat there for the last two weeks watching things happen. I picked up the legislative manual for the year 2001, the very next year after the election, and I started counting the D's and the R's, which came after the Senators' names. It was almost even again. This time there were 24 Senators with R's after their names and 22 Senators with D's after their names. There were a few more R's than there were D's the previous year. You all remember the election was 23 - 23 and one switched and that was why it switched to 24 - 22. Well, then I turned back to the section on committee chairs and every one of you know what I found. There were 15 committee chairs with R's after their names and there was not even one committee chair with a D -- not even a subcommittee. I don't believe we realize that. Did you know that in 2001 all the committee chairs with D's after their names were removed and replaced by Senators with R's after their names? Well, I was really disturbed when reading this, because I love this Senate just as much as anyone in here. When I got back to my room that night and began to look through the old files that I keep, I came across a speech that I made from this Floor in the year 2000. There were nine D committee chairs and six R's that year. It was the last day of the session and here are a couple of things I had to say. I'll read them back to you.

I said, from this podium, to all of you, "Our way of doing things was never intended to be a winner-take-all proposition. It was never designed to reward the few at the expense of all others. It wasn't meant to be a process by which anyone could make things happen exactly

Printed Page 3043 . . . . . Tuesday, May 27, 2003
right. It's a system -- now I'm quoting exactly what I said in year 2000 -- "It's a system, which brings together the DARRELL JACKSONs and the Glen McCONNELLs to work things out. It forces the JOHN DRUMMONDs and the JOHN COURSONs to find areas of different political and philosophical differences. It requires that we do one thing -- COMPROMISE. Then I told all of you in the Senate, and most of you were here at that time and probably were paying as close attention as you are today, I appreciate the way you treat me when I come to this podium. I told you not to worry, because things may have worked out better for each of you. I told you to worry instead about whether the work of this body would be an honored and collective will and wisdom of all 46 Senators. Well, you can imagine my embarrassment. I was wrong. As it turns out, the work of this body now represents -- and I'm not criticizing you -- I'm just telling you the truth -- the work of this body now represents the collective will and wisdom of the 24 Senators with R's after their names -- not 46 Senators. How could I have been so wrong in the year 2000? It really is a "winner-take-all" sweepstakes after all. I'm a little confused here. I guess I could apologize and retract my statement three years ago suggesting that all Senators should work together, because that turned out to be a little naive and I think all of you realize that. I'm not going to do that now. Maybe I'll just say instead that I was not wrong on that day in May of 2000 when I said that this Senate worked better when all 46 Senators are engaged in the process, and maybe I'll stand by those words that we should bring all philosophies and points of view to work for a compromise. Isn't it interesting in fact that after all these years of complaining how Washington does this or that -- we've turned right around and created a government in which partisanship controls almost everything. All of you have heard me say this and you'll hear me say it again. Partisanship is absolutely injuring government, not only in South Carolina, but also in this whole nation. I talked to people in North Carolina recently and also in Georgia and I talked to a Congressman that we just elected from this State no later than Saturday; he was speaking to the Historical Society in Abbeville. He agreed with me. He said, "Senator, in Washington now we don't even talk to each other. We're enemies across the aisle." That's no way for that great free America that I was praising and which so many people gave their lives for. It was never intended that we would act this way. Never. Partisanship controls everything. It's just like Washington, isn't it. I plead with you. We can do better than that. We can all do better than that. The people outside are listening. They are embarrassed about the
Printed Page 3044 . . . . . Tuesday, May 27, 2003
way we are acting, but really I'm going to be honest with you, Senators and Mr. PRESIDENT. You don't really need that side of the aisle. You have the majority. You have every one of the committees and you can pass anything you want to pass. I know you don't want to do that. We want to work together. So don't try to blame this side for not being able to pass the cigarette tax and don't blame this side about doing something else. We're all guilty because we're not working together and I'm going to tell you something. If we don't start working together, this State is going to absolutely collapse. I want to thank you for listening to me. I know you've watched me. I've been nervous for two weeks. I wanted to say this and say it to the public out there and say it to every one of us -- SHAME ON US ALL.
I thank every one of you.

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

Expression of Personal Interest

Senator J. VERNE SMITH rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator LEVENTIS rose for an Expression of Personal Interest.

Expression of Personal Interest

Senator MOORE rose for an Expression of Personal Interest.

Message from the House

Columbia, S.C., May 21, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R.76, H. 3218 by a vote of 89 to 21:

(R76, H3218 (Word version)) -- Reps. Hinson, Altman, Bailey, Umphlett, Simrill,   Viers, Richardson and Ceips: A JOINT RESOLUTION   DIRECTING THE STATE BUDGET AND CONTROL BOARD,   AFTER OBTAINING THE APPROVAL OF THE STATE   HOUSE COMMITTEE AS TO DESIGN AND LOCATION, TO   PROCEED WITH CONSTRUCTION OF THE SOUTH   CAROLINA LAW ENFORCEMENT OFFICERS MEMORIAL

Printed Page 3045 . . . . . Tuesday, May 27, 2003

ON THE GROUNDS OF THE CAPITOL COMPLEX USING   STATE FUNDS PROVIDED FOR THE PURPOSE AND   PRIVATE CONTRIBUTIONS.
Very respectfully,
Speaker of the House

Received as information.

DEBATE ADJOURNED ON THE VETO
BY THE GOVERNOR

(R76, H3218 (Word version)) -- Reps. Hinson, Altman, Bailey, Umphlett, Simrill, Viers, Richardson and Ceips: A JOINT RESOLUTION DIRECTING THE STATE BUDGET AND CONTROL BOARD, AFTER OBTAINING THE APPROVAL OF THE STATE HOUSE COMMITTEE AS TO DESIGN AND LOCATION, TO PROCEED WITH CONSTRUCTION OF THE SOUTH CAROLINA LAW ENFORCEMENT OFFICERS MEMORIAL ON THE GROUNDS OF THE CAPITOL COMPLEX USING STATE FUNDS PROVIDED FOR THE PURPOSE AND PRIVATE CONTRIBUTIONS.

The veto by the Governor was taken up for immediate consideration.

Senator RICHARDSON moved to carry over the veto by the Governor.

The veto was not carried over.

Senator FORD spoke on the veto.

Senator JACKSON spoke on the veto.

Senator KUHN spoke on the veto.

Remarks by Senator KUHN

I just want to speak for a moment on this issue. This is probably the Governor's best veto so far. This Governor ran on a fiscally conservative platform. It was very popular in the State of South Carolina. He understands his platform, and he understands his goals for the State.

All of us in this Chamber would like to be putting more money into education. We all really would. A lot of you in this Chamber want to put some more money into Medicaid. I would like to see us put more money into employees' salaries for the State. They're

Printed Page 3046 . . . . . Tuesday, May 27, 2003
abysmally low. This Governor said that one of his goals was to get our income levels in South Carolina up to the national average. It's going to take years of work. But, a good place to start is at this monument. It is a great example of where we need to quit using our taxpayers' money for things that we really can't afford.

Now, this doesn't mean that I'm not for law enforcement. I just spent 15 minutes on the radio this morning in Charleston defending our city police department on law enforcement issues. They're under attack right now - particularly the chief. I've been spending quite a bit of time defending them. I am all for our law enforcement personnel. And I'm all for a monument on the State House grounds for those who've fallen in service to us. Our defenders should be memorialized. But, when it comes to the tax dollar, we have to understand where that tax dollar comes from.

When we raise taxes, or when we simply tax the people of South Carolina, we ask the people of South Carolina to give us money to spend on their behalf. The catch is that we don't really ask them. We tell them. And does anyone in this Chamber know what happens if you don't pay your taxes in South Carolina? You go to jail. That's exactly right. So, we're asking the taxpayers of South Carolina to fork over their hard-earned dollars. We recognize we need more streets and better streets, and we recognize we need more education and more teachers in the classroom; but we want to fund a monument? At the very time we are having the tightest budget crisis in the history of this State? The Governor is right on with his veto.

I'm all for law enforcement. I'm all for this monument but not at my taxpayers' expense. Let's get that money where my taxpayer really wants it, and that's to education, that's to lower property taxes and that is to support our State employees, and so forth. So, this is definitely the best veto we've seen the Governor make so far. I ask you to support the program of making South Carolina fiscally responsible to its taxpayers and support the program of getting the money channeled where we need it. Thus, I ask you not to override the Governor's veto but to sustain the veto.

Thank you.

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

Senator COURSON spoke on the veto.

Senator RICHARDSON spoke on the veto.

Printed Page 3047 . . . . . Tuesday, May 27, 2003

Senator KNOTTS spoke on the veto.

Senator LEATHERMAN spoke on the veto.

Senator RICHARDSON spoke on the veto.

Senator RICHARDSON moved to adjourn debate on the veto until Tuesday, June 3, 2003, at 1:00 P.M.

Senator LEATHERMAN moved to table the motion.

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

Ayes 13; Nays 23

AYES

Branton                   Courson                   Cromer
Fair                      Giese                     Grooms
Hayes                     Knotts                    Leatherman
Martin                    McConnell                 Mescher
Peeler                    Ravenel                   Setzler
Smith, J. Verne           Thomas                    Verdin

Total--18

NAYS

Alexander                 Anderson                  Drummond
Ford                      Glover                    Gregory
Hawkins                   Holland                   Hutto
Jackson                   Kuhn                      Land
Leventis                  Malloy                    Matthews
McGill                    Moore                     Patterson
Reese                     Richardson                Ritchie
Short                     Waldrep

Total--23

The Senate refused to table the motion. The question then was the motion to adjourn debate on the veto until Tuesday, June 3, 2003, at 1:00 P.M.

The motion was adopted and debate was adjourned until Tuesday, June 3, 2003, at 1:00 P.M.

Printed Page 3048 . . . . . Tuesday, May 27, 2003

RECALLED

H. 3257 (Word version) -- Reps. Lourie, J.E. Smith, J. Brown, Bales, Cotty, Scott, Howard, J.H. Neal and Rutherford: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF RICHLAND COUNTY SCHOOL DISTRICT ONE AND RICHLAND COUNTY SCHOOL DISTRICT TWO MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

Senator GIESE asked unanimous consent to make a motion to recall the Bill from the Committee on Education.

There was no objection.

The Bill was recalled from the committee.

On motion of Senator GIESE, with unanimous consent, the Bill was ordered placed on the Calendar for consideration tomorrow.

RECALLED

S. 293 (Word version) -- Senators Hawkins, Ritchie and Reese: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF SPARTANBURG COUNTY SCHOOL DISTRICTS ONE THROUGH SEVEN MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION, PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

Senator HAWKINS asked unanimous consent to make a motion to recall the Bill from the Committee on Education.

There was no objection.

The Bill was recalled from the committee.

Printed Page 3049 . . . . . Tuesday, May 27, 2003

Senator HAWKINS asked unanimous consent to place the Bill on the Calendar for consideration tomorrow.

There was no objection.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 717 (Word version) -- Senator Moore: A SENATE RESOLUTION TO CONGRATULATE THE HONORABLE MAX ANDRES MEEK, SR. OF AIKEN COUNTY UPON HIS RETIREMENT AFTER SERVING AS A MAGISTRATE JUDGE FOR AIKEN COUNTY FOR TWENTY-FIVE YEARS, TO COMMEND HIM FOR HIS DEDICATION AND HARD WORK, AND TO WISH HIM MUCH SUCCESS AND HAPPINESS IN ALL OF HIS FUTURE ENDEAVORS.
l:\council\bills\dka\3603dw03.doc

The Senate Resolution was adopted.

S. 718 (Word version) -- Senator Grooms: A BILL TO AMEND SECTION 50-11-2200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF WILDLIFE MANAGEMENT AREAS, SO AS TO MAKE A TECHNICAL CHANGE, AND TO PROVIDE THAT THE DEPARTMENT OF NATURAL RESOURCES MAY PROMULGATE REGULATIONS FOR THE PROTECTION, PRESERVATION, OPERATION, MAINTENANCE, AND USE OF LAND LEASED OR ESTABLISHED AS WILDLIFE MANAGEMENT AREAS.
l:\council\bills\swb\5509cm03.doc

Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 719 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 5-1-30, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PREREQUISITES TO THE ISSUANCE OF CORPORATE CERTIFICATE FOR A PROPOSED MUNICIPALITY, SO AS TO DELETE THE REQUIREMENT THAT NO PART OF THE PROPOSED MUNICIPALITY IS WITHIN FIVE MILES OF THE BOUNDARY OF AN ACTIVE INCORPORATED MUNICIPALITY.
l:\council\bills\dka\3602dw03.doc

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

Printed Page 3050 . . . . . Tuesday, May 27, 2003

S. 720 (Word version) -- Senator Hayes: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 59 TO TITLE 44 SO AS TO ESTABLISH THE CATAWBA RIVER BASIN ADVISORY COMMITTEE AND THE CATAWBA RIVER BASIN BI-STATE COMMISSION, AND PROVIDE FOR THEIR DUTIES, POWERS, AND FUNCTIONS.
l:\council\bills\gjk\20623sd03.doc

Senator HAYES spoke on the Bill.

Read the first time and, on motion of Senator HAYES, with unanimous consent, S. 720 was ordered placed on the Calendar without reference.

S. 721 (Word version) -- Transportation Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF PUBLIC SAFETY, RELATING TO MOTORIST INSURANCE IDENTIFICATION DATABASE PROGRAM, DESIGNATED AS REGULATION DOCUMENT NUMBER 2820, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.
l:\council\bills\nbd\11822ac03.doc

Read the first time and ordered placed on the Calendar without reference.

H. 3256 (Word version) -- Reps. Kirsh, Simrill and Richardson: A BILL TO PROVIDE THAT BEGINNING WITH SCHOOL YEAR 2003-2004, THE STARTING DATE AND ENDING DATE FOR THE ANNUAL SCHOOL TERM OF YORK COUNTY SCHOOL DISTRICTS ONE THROUGH FOUR MUST BE SET BY THE BOARD OF TRUSTEES OF EACH RESPECTIVE DISTRICT IN THEIR SOLE DISCRETION PROVIDED THAT THE ANNUAL SCHOOL TERM MUST COMPLY WITH ALL REQUIREMENTS OF SECTION 59-1-420 RELATING TO LENGTH OF THE SCHOOL TERM.

Senator HAYES spoke on the Bill.

Read the first time and, on motion of Senator HAYES, with unanimous consent, H. 3256 was ordered placed on the Calendar without reference.

Printed Page 3051 . . . . . Tuesday, May 27, 2003

H. 3617 (Word version) -- Reps. Sandifer, Bailey, Frye, Cato, E. H. Pitts, Cotty, J. H. Neal, J. Brown, Anthony, Ceips, Duncan, Freeman, Mahaffey, McCraw, Ott, Phillips, M. A. Pitts, Stille, White and Whitmire: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 32-7-60 SO AS TO CREATE THE PRENEED FUNERAL LOSS REIMBURSEMENT FUND AND TO PROVIDE FOR THE PURPOSE AND USES OF MONIES IN THE FUND; TO AMEND SECTION 32-7-45, RELATING TO THE TRANSFER PROCEDURES FOR TRUST FUNDS HELD PURSUANT TO PRENEED BURIAL CONTRACTS, SO AS TO REVISE THESE PROCEDURES; AND TO AMEND SECTION 32-7-50, RELATING TO LICENSURE REQUIREMENTS TO OFFER AND ENTER INTO PRENEED BURIAL CONTRACTS, SO AS TO PROVIDE A PENALTY FOR ENTERING INTO SUCH CONTRACTS WITHOUT BEING LICENSED.

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

H. 4025 (Word version) -- Rep. Harrell: A BILL TO AMEND SECTION 12-36-910, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SALES AND USE TAXATION, SO AS TO TAX ONLY THE TAXABLE PORTION OF THE GROSS PROCEEDS FROM A TELECOMMUNICATIONS BUNDLED TRANSACTION.

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

H. 4037 (Word version) -- Rep. G. Brown: A BILL TO AMEND SECTION 24-3-27, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF LOCAL REGIONAL CORRECTIONAL FACILITIES FOR THE CONFINEMENT OF CERTAIN PERSONS, SO AS TO PROVIDE THAT AN INMATE CONFINED IN A REGIONAL CORRECTIONAL FACILITY MAY BE SERVED A WARRANT BY A LAW ENFORCEMENT OFFICER OF A COUNTY WHICH PARTICIPATES IN THE FUNDING OF THE FACILITY WITHOUT IT BEING COUNTERSIGNED BY OFFICIALS OF THE COUNTY IF ITS LOCATION IS DIFFERENT.

Read the first time and referred to the Committee on Corrections and Penology.

H. 4048 (Word version) -- Reps. J. R. Smith, Scarborough, Neilson, Cotty, Anthony, Bailey, Barfield, Cato, Ceips, Clark, Clemmons, Coates, Cooper,

Printed Page 3052 . . . . . Tuesday, May 27, 2003
Davenport, Duncan, Edge, Hagood, Hamilton, Harrell, Harrison, Harvin, Haskins, Hinson, Huggins, Keegan, Leach, Limehouse, Loftis, Lucas, McGee, Owens, Perry, Pinson, E. H. Pitts, Quinn, Rice, Sandifer, Simrill, Sinclair, Skelton, D. C. Smith, W. D. Smith, Stewart, Talley, Thompson, Townsend, Tripp, Trotter, Umphlett, Vaughn, Viers, Walker, Wilkins, Witherspoon, Young, Merrill, G. M. Smith, Chellis, Bingham, Bowers, Herbkersman, Littlejohn and White: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 155 TO TITLE 59 SO AS TO ENACT THE "S.M.A.R.T. (STREAMLINED MANAGEMENT AND ACCOUNTABLE RESOURCES FOR TEACHING) FUNDING IN EDUCATION ACT", TO PROVIDE FOR THE CONSOLIDATION OF STATE SOURCES OF FUNDING FOR K-12 INTO A SINGLE SOURCE FOR ALLOCATION BY EACH LOCAL SCHOOL DISTRICT INTO AREAS IT DETERMINES BEST ACHIEVE ITS OBJECTIVES AND ENHANCE ITS ACCOUNTABILITY, TO PROVIDE THAT THE FUNDING BE MADE BASED ON SIX GENERAL CATEGORIES FOR WHICH THE FUNDS MUST BE USED, AND TO DESCRIBE THAT THE MONIES WHICH FORM THE POOL OF MONIES IN EACH GENERAL CATEGORY MAY BE TRANSFERRED WITH ONE HUNDRED PERCENT FLEXIBILITY AMONG PROGRAMS WITHIN THAT CATEGORY, TO PROVIDE FOR SOME FLEXIBILITY IN DISTRIBUTION OF FUNDING ACROSS CATEGORIES, AND TO PROVIDE THAT THE S.M.A.R.T. FUNDING PROGRAM WILL BE FUNDED BEGINNING JULY 1, 2004.

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

H. 4248 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO CHARTER SCHOOL APPEALS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2793, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

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

REPORTS OF STANDING COMMITTEES

Senator COURSON from the Committee on Invitations polled out S. 695 favorable:

S. 695 (Word version) -- Senator J. Verne Smith: A SENATE RESOLUTION TO AUTHORIZE THE GREENVILLE YOUNG MEN'S CHRISTIAN

Printed Page 3053 . . . . . Tuesday, May 27, 2003
ASSOCIATION TO USE THE SENATE CHAMBER AND ANY AVAILABLE COMMITTEE HEARING ROOMS IN THE GRESSETTE SENATE OFFICE BUILDING ON THURSDAY, DECEMBER 4, 2003, AND FRIDAY, DECEMBER 5, 2003, TO CONDUCT A YOUTH IN GOVERNMENT PROGRAM.

Poll of the Invitations Committee
Polled 11; Ayes 11; Nays 0; Not Voting 0

AYES

Courson                   Matthews                  Patterson
O'Dell                    McGill                    Alexander
Peeler                    Kuhn                      Reese
Knotts                    Waldrep

TOTAL--11

NAYS

TOTAL--0

Ordered for consideration tomorrow.

Senator RYBERG from the Committee on Transportation submitted a majority favorable and Senator KUHN a minority unfavorable report on:

H. 3128 (Word version) -- Reps. Lourie, J. Brown, Clark, Cotty, J.H. Neal, Harrison, Govan, Gilham, Martin, Stille, Sinclair, J.E. Smith, W.D. Smith, Huggins, E.H. Pitts, Jennings, Emory, Skelton, Owens and Scott: A BILL TO AMEND SECTION 56-5-6540, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PENALTIES FOR VIOLATIONS AND ENFORCEMENT OF THE STATE'S MANDATORY USE OF SEAT BELTS AND CHILD RESTRAINT SYSTEM REQUIREMENTS, SO AS TO PROVIDE THAT A LAW ENFORCEMENT OFFICER MAY STOP A DRIVER OF A MOTOR VEHICLE FOR ANY PRIMARY VIOLATION OF A PROVISION THAT REQUIRES A DRIVER OR PASSENGER TO WEAR A SEAT BELT OR A CHILD RESTRAINT SYSTEM.

Ordered for consideration tomorrow.

Printed Page 3054 . . . . . Tuesday, May 27, 2003

Senator MARTIN from the Committee on Judiciary submitted a favorable with amendment report on:

H. 3231 (Word version) -- Reps. Gilham, Stille, Wilkins, Walker, Bales, M.A. Pitts, Cobb-Hunter, Richardson, Ceips, Cotty, Skelton, Owens, Haskins, Martin, Toole, Lourie, Huggins, E.H. Pitts, Talley, Mahaffey, Leach, Hamilton, Loftis, D.C. Smith, McLeod, Thompson and J.E. Smith: A BILL TO AMEND SECTION 56-5-2950, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A MOTOR VEHICLE DRIVER'S IMPLIED CONSENT TO CHEMICAL TESTS OF HIS BREATH, BLOOD, OR URINE FOR THE PURPOSE OF DETERMINING THE PRESENCE OF ALCOHOL OR DRUGS OR THE COMBINATION OF ALCOHOL AND DRUGS IN HIS SYSTEM, SO AS TO PROVIDE THAT A DRIVER WHO REGISTERS AN ALCOHOL CONCENTRATION OF EIGHT ONE-HUNDREDTHS OF ONE PERCENT OR MORE IS GUILTY OF DRIVING UNDER THE INFLUENCE OF ALCOHOL OR DRUGS, OR A COMBINATION OF ALCOHOL AND DRUGS.

Ordered for consideration tomorrow.

By prior motion of Senator McCONNELL of April 9, 2003, the Bill was ordered placed on the third reading Calendar.

Senator THOMAS from the Committee on Banking and Insurance submitted a favorable report on:

H. 3641 (Word version) -- Rep. J.R. Smith: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 34-43-60 SO AS TO PROVIDE THAT THE PROVISIONS OF THE SOUTH CAROLINA COMMUNITY ECONOMIC DEVELOPMENT ACT MUST TERMINATE AFTER THE FIFTH YEAR OF GRANTS AND LOANS ARE RECEIVED AND AT LEAST FIVE MILLION DOLLARS IN TAX CREDITS ARE USED; AND TO REPEAL SECTION 4 OF ACT 314 OF 2000, RELATING TO SUNSET PROVISIONS FOR THE ACT.

Ordered for consideration tomorrow.

Senator GIESE from the Committee on Education submitted a favorable report on:

H. 3677 (Word version) -- Rep. Talley: A BILL TO AMEND SECTIONS 59-1-390, 59-1-448, 59-1-452, AS AMENDED, 59-5-61, 59-5-65, AS AMENDED, 59-5-140, 59-18-920, 59-20-40, AS AMENDED, 59-24-10, AS AMENDED, 59-24-130, 59-39-100, AS AMENDED,

Printed Page 3055 . . . . . Tuesday, May 27, 2003
59-54-20, AS AMENDED, 59-54-40, AS AMENDED, 59-54-50, 59-54-60, AND ARTICLE 21, CHAPTER 53, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO VOCATIONAL EDUCATION, SO AS TO CHANGE REFERENCES FROM "VOCATIONAL EDUCATION", "VOCATIONAL TRAINING", "VOCATIONAL PROGRAMS", AND OTHERS TO "CAREER AND TECHNOLOGY EDUCATION", "CAREER AND TECHNOLOGY TRAINING", "CAREER AND TECHNOLOGY PROGRAMS", TO MAKE OTHER CORRESPONDING CHANGES, AND TO MAKE TECHNICAL CORRECTIONS.

Ordered for consideration tomorrow.

Senator GIESE from the Committee on Education submitted a favorable report on:

H. 3871 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO MINIMUM STANDARDS FOR THE DETERMINATION OF READINESS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2748, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Senator GIESE from the Committee on Education submitted a favorable report on:

H. 3875 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO BASIC SKILLS ASSESSMENT PROGRAM-WRITING TEXT: MINIMUM STANDARDS OF STUDENT ACHIEVEMENT; SCORING CRITERIA, DESIGNATED AS REGULATION DOCUMENT NUMBER 2749, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Senator GIESE from the Committee on Education submitted a favorable report on:

H. 3877 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO REQUIREMENTS FOR CERTIFICATION, DESIGNATED AS REGULATION DOCUMENT

Printed Page 3056 . . . . . Tuesday, May 27, 2003
NUMBER 2768, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Senator GIESE from the Committee on Education submitted a favorable report on:

H. 3994 (Word version) -- Education and Public Works Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE BOARD OF EDUCATION, RELATING TO CREATING MORE EFFECTIVE PARTNERSHIPS AMONG THE SCHOOLS, PARENTS, COMMUNITY AND BUSINESS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2750, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Ordered for consideration tomorrow.

Message from the House

Columbia, S.C., May 22, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it concurs in the amendments proposed by the Senate to:
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.
and has ordered the Bill enrolled for Ratification.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., May 22, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Townsend, J. M. Neal and Gilham to the Committee of Conference on the part of the House on:
S. 342 (Word version) -- Senator McConnell: A BILL TO AMEND CHAPTER 3, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MOTOR VEHICLE REGISTRATION AND

Printed Page 3057 . . . . . Tuesday, May 27, 2003
LICENSING, BY ADDING ARTICLE 41 SO AS TO PROVIDE THAT THE DEPARTMENT OF PUBLIC SAFETY SHALL ISSUE "SOUTH CAROLINA ELKS ASSOCIATION" SPECIAL LICENSE PLATES, AND TO PROVIDE FOR THE DISTRIBUTION OF FEES COLLECTED FOR THESE SPECIAL LICENSE PLATES.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., May 22, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has appointed Reps. Harrison, Coleman and G. M. Smith to the Committee of Conference on the part of the House on:
S. 555 (Word version) -- Senators Martin, Anderson, McConnell, Waldrep, Alexander, Leventis, Ravenel and Thomas: A BILL TO AMEND SECTION 14-7-1630, AS AMENDED, RELATING TO JURISDICTION OF THE GRAND JURY, SO AS TO ADD CRIMES INVOLVING ANY VIOLATION OF CHAPTER 1, TITLE 35 OF THE UNIFORM SECURITIES ACT, OR ANY CRIME RELATED TO SECURITIES FRAUD OR A VIOLATION OF THE SECURITIES LAWS, AND TO AMEND SECTION 35-1-1500, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS JOINTLY AND SEVERALLY LIABLE WITH SELLER AND THEIR CONTRIBUTION, SO AS TO PROVIDE THAT EVERY PERSON WHO KNOWINGLY AND SUBSTANTIALLY ASSISTS A SELLER OR OTHER PERSON WHO ENGAGES IN FRAUDULENT ACTS IN VIOLATION OF THE SOUTH CAROLINA SECURITIES ACT WILL BE JOINTLY AND SEVERALLY LIABLE TO THE SAME EXTENT AS THE ASSISTED PERSON WHO ENGAGED IN THE FRAUDULENT ACTIVITY; AND TO AMEND SECTION 35-1-1530, AS AMENDED, RELATING TO LIMITATIONS OF ACTIONS AND THE EFFECT OF OFFER TO REFUND CONSIDERATION WITH INTEREST, SO AS TO REQUIRE THAT IN CASES INVOLVING DECEPTION TO INVESTORS THE LIMITATIONS PERIOD IS EXTENDED TO THREE YEARS AFTER DISCOVERY OF THE

Printed Page 3058 . . . . . Tuesday, May 27, 2003
UNTRUE STATEMENT OR OMISSION, OR AFTER THE DISCOVERY SHOULD HAVE BEEN MADE BY REASONABLE DILIGENCE.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., May 27, 2003

Mr. President and Senators:

The House respectfully informs your Honorable Body that it insists upon the amendments proposed by the House to:
H. 3713 (Word version) -- Reps. Wilkins, W.D. Smith, Harrell, Harrison, Cato, Witherspoon, Chellis, Townsend, J. Brown and Keegan: A BILL TO AMEND SECTION 23-3-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXCLUSIVE JURISDICTION AND STATEWIDE AUTHORITY OF THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION, SO AS TO PROVIDE THAT THIS JURISDICTION AND AUTHORITY INCLUDES ESTABLISHING AND OPERATING TACTICAL RESPONSE LAW ENFORCEMENT UNITS, COORDINATING COUNTER TERRORISM EFFORTS IN OR AFFECTING THIS STATE, COORDINATING FEDERAL GRANTS ASSOCIATED WITH HOMELAND SECURITY, CREATING COUNCILS ASSOCIATED WITH ITS MISSION, AND SERVING AS THE GOVERNOR'S REPRESENTATIVE TO THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY.
asks for a Committee of Conference, and has appointed Reps. McLeod, Coates and Harrison to the committee on the part of the House.
Very respectfully,
Speaker of the House

Received as information.

H. 3713 -- CONFERENCE COMMITTEE APPOINTED

H. 3713 (Word version) -- Reps. Wilkins, W.D. Smith, Harrell, Harrison, Cato, Witherspoon, Chellis, Townsend, J. Brown and Keegan: A BILL TO AMEND SECTION 23-3-15, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE EXCLUSIVE JURISDICTION AND STATEWIDE AUTHORITY OF THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION, SO AS TO

Printed Page 3059 . . . . . Tuesday, May 27, 2003
PROVIDE THAT THIS JURISDICTION AND AUTHORITY INCLUDES ESTABLISHING AND OPERATING TACTICAL RESPONSE LAW ENFORCEMENT UNITS, COORDINATING COUNTER TERRORISM EFFORTS IN OR AFFECTING THIS STATE, COORDINATING FEDERAL GRANTS ASSOCIATED WITH HOMELAND SECURITY, CREATING COUNCILS ASSOCIATED WITH ITS MISSION, AND SERVING AS THE GOVERNOR'S REPRESENTATIVE TO THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY.

Whereupon, Senators McCONNELL, DRUMMOND and KUHN were appointed to the Committee of Conference on the part of the Senate and a message was sent to the House accordingly.

HOUSE AMENDMENTS AMENDED
RETURNED TO THE HOUSE WITH AMENDMENTS

S. 516 (Word version) -- Senator McGill: A BILL TO AMEND SECTION 12-6-3360, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TARGETED JOBS TAX CREDIT, SO AS TO EXTEND THE DEFINITION OF "NEW JOB" TO INCLUDE JOBS MAINTAINED WHEN AN UNRELATED ENTITY ACQUIRES SUBSTANTIALLY ALL OF THE ASSETS OF A COMPANY OPERATING UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE, MORE THAN FIVE HUNDRED INDIVIDUALS ARE HIRED WHO WERE LAST EMPLOYED BY THE BANKRUPT TAXPAYER, AND THE JOBS ARE IN A MANUFACTURING FACILITY LOCATED IN A COUNTY CLASSIFIED AS DISTRESSED OR LEAST DEVELOPED.

The House returned the Bill with amendments.

The Senate proceeded to a consideration of the Bill, the question being concurrence in the House amendments.

Senator LEATHERMAN proposed the following amendment (516R001.HKL), which was adopted:

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

/ SECTION   1.   Section 12-6-3360(M)(3) of the 1976 Code is amended to read:

"(3)   'New job' means a job created in this State at the time a new facility or an expansion is initially staffed. Except as otherwise

Printed Page 3060 . . . . . Tuesday, May 27, 2003
provided in this item, the term does not include a job created when an employee is shifted from an existing location in this State to a new or expanded facility whether the transferred job is from, or to, a facility of the taxpayer or a related person. A related person includes any entity or person that bears a relationship to the taxpayer as described in Section 267 of the Internal Revenue Code. However, this exclusion of a new job created by employee shifting does not extend to a job created at a new or expanded facility located in a county in which is located an 'applicable federal facility' as defined in Section 12-6-3450(A)(1)(b). The term 'new job' also includes an existing job at a facility of an employer which is reinstated after the employer has rebuilt the facility due to:

(a)   its destruction by accidental fire, natural disaster, or act of God;

(b)   involuntary conversion as a result of condemnation or exercise of eminent domain by the State or any of its political subdivisions or by the federal government.

Destruction for purposes of this provision means that more than fifty percent of the facility was destroyed. For purposes of this section, involuntary conversion as a result of condemnation or exercise of eminent domain includes a legally binding agreement for the purchase of a facility of an employer entered into between an employer and the State of South Carolina or a political subdivision of the State under threat of exercise of eminent domain by the State or its political subdivision.

The year of reinstatement is the year of creation of the job. All reinstated jobs qualify for the credit pursuant to this section, and a comparison is not required to be made between the number of full-time jobs of the employer in the taxable year and the number of full-time jobs of the employer with the corresponding period of the prior taxable year.

Notwithstanding any other provision of law, 'new job' includes jobs created by a taxpayer when the taxpayer hires more than five hundred full-time individuals:

(a)   at a manufacturing facility located in a county classified either as distressed or least developed;

(b)   immediately before their employment by the taxpayer, the individuals were employed by a company operating under Chapter 11 of the United States Bankruptcy Code; and

Printed Page 3061 . . . . . Tuesday, May 27, 2003

(c)   the taxpayer, as an unrelated entity, acquires substantially all of the assets of the company operating under Chapter 11 of the United States Bankruptcy Code."

SECTION   2.   This act is effective for taxable years beginning after 2002 where the job tax credit pursuant to Section 12-6-3360 of the 1976 Code, as amended by this act, was earned after June 1, 2002.   /

Renumber sections to conform.

Amend title to conform.

Senator McGILL explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was ordered returned to the House with amendments.

THIRD READING RECONSIDERED, AMENDED
READ THE THIRD TIME, SENT TO THE HOUSE

S. 716 (Word version) -- Senators Matthews and Hutto: A BILL TO AMEND ACT 526 OF 1996, AS AMENDED, RELATING TO THE ORANGEBURG COUNTY CONSOLIDATED SCHOOL DISTRICTS, THE ELECTIONS OF BOARDS OF TRUSTEES OF THESE DISTRICTS AND OF THE COUNTY BOARD OF EDUCATION AND THE POWERS AND DUTIES OF THESE BOARDS, SO AS TO AUTHORIZE THE COUNTY BOARD OF EDUCATION TO MEET MORE FREQUENTLY THAN QUARTERLY AND FOR EACH BOARD MEMBER TO RECEIVE COMPENSATION FOR ALL BOARD MEETINGS ATTENDED DURING A FISCAL YEAR, NOT TO EXCEED A TOTAL OF EIGHT HUNDRED DOLLARS; TO PROVIDE THAT THE ANNUAL OPERATING BUDGET OF THE COUNTY BOARD OF EDUCATION MAY NOT EXCEED THE DOLLAR VALUE OF ONE-TENTH MILL; TO REQUIRE THAT FUNDS REMAINING ON THIS ACT'S EFFECTIVE DATE UNDER THE CONTROL OR USE OF THE COUNTY BOARD OF EDUCATION FOR OPERATIONS BE DISTRIBUTED AMONG THE THREE CONSOLIDATED SCHOOL DISTRICTS IN ACCORDANCE WITH THE AVERAGE DAILY MEMBERSHIP FORMULA; AND TO AUTHORIZE THE BOARD TO RETAIN TEN THOUSAND DOLLARS FOR OPERATIONS; TO REVISE THE FORMULA EQUALIZING WEALTH PER STUDENT AMONG

Printed Page 3062 . . . . . Tuesday, May 27, 2003
THE DISTRICTS BY USING FIVE MILLS RATHER THAN TWENTY-FIVE MILLS AS THE MULTIPLIER IN THIS FORMULA, AND TO REVISE AN ADJUSTMENT IF THE REMIT IS ZERO OR LESS; AND TO DELETE OUTDATED PROVISIONS RELATING TO INITIAL ELECTION OF MEMBERS TO THE CONSOLIDATED SCHOOL DISTRICTS.

Having voted on the prevailing side, Senator HUTTO asked unanimous consent to make a motion to reconsider the vote whereby the Bill was given third reading by prior motion of Senator MATTHEWS.

There was no objection.

Senator HUTTO 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 third reading of the Bill.

Senator HUTTO proposed the following amendment (NBD\11842AC03), which was adopted:

Amend the bill, as and if amended, SECTION 2, page 2, line 19 by deleting /one-tenth/ and inserting /two-tenths/.

Renumber sections to conform.

Amend title to conform.

Senator HUTTO explained the amendment.

The amendment was adopted.

There being no further amendments, the Bill was read the third time and ordered sent to the House of Representatives.

RETURNED FROM THE HOUSE WITH AMENDMENTS
AMENDMENT PROPOSED, CONSIDERATION INTERRUPTED BY ADJOURNMENT

S. 28 (Word version) -- Senators Knotts and Reese: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-6-5090 SO AS TO PROVIDE A DESIGNATION ON THE STATE INDIVIDUAL INCOME TAX RETURN ALLOWING A TAXPAYER TO MAKE A CONTRIBUTION TO THE SOUTH

Printed Page 3063 . . . . . Tuesday, May 27, 2003
CAROLINA LAW ENFORCEMENT ASSISTANCE PROGRAM AND TO PROVIDE FOR THE USE OF THE CONTRIBUTIONS MADE PURSUANT TO THIS DESIGNATION.

The House returned the Bill with amendments.

Senator MOORE explained the amendments.

Amendment No. 1

Senators MOORE, DRUMMOND, LAND, J. VERNE SMITH, SHORT, LEVENTIS, HUTTO, ANDERSON, MARTIN, MALLOY, JACKSON, GLOVER and RICHARDSON proposed the following Amendment No. 1 (TLMCIGTAX.28):

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

/ SECTION   1.   Article 37, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-5085.   (A)   Beginning with individual income tax returns filed for taxable year 2003, each taxpayer required to file a state individual income tax return may contribute to the South Carolina Litter Control Enforcement Program (SCLCEP) by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated. These contributions must be credited to a separate fund in the State Treasury styled the South Carolina Litter Control Enforcement Program Fund and used by the Governor's Task Force on Litter only for the SCLCEP program. Revenues in the fund carry forward into succeeding fiscal years and earnings of the fund must be credited to it.

(B)   All South Carolina individual income tax return forms must contain a designation for the above contribution. The instructions accompanying the income tax form must contain a description of the purposes for which the SCLCEP Fund is established and the use of the monies from the contributions.

(C)   The department shall determine and report annually to the fund the total amount of contributions designated. The department shall transfer the appropriate amount to the fund at the earliest possible time. The incremental cost of administration of the contribution must be paid out of the contributions before any fund revenues are expended as provided in this section.

Printed Page 3064 . . . . . Tuesday, May 27, 2003

(D)   For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

SECTION 2.   Article 37, Chapter 6, Title 12 of the 1976 Code is amended by adding:

"Section 12-6-5090.   (A)   Beginning with individual income tax returns filed for taxable year 2003, each taxpayer required to file a state individual income tax return may contribute to the South Carolina Law Enforcement Assistance Program (SCLEAP) by designating the contribution on the return. The contribution may be made by reducing the income tax refund or by remitting additional payment by the amount designated. These contributions must be credited to a separate fund in the State Treasury styled the South Carolina Law Enforcement Assistance Program Fund and used by the State Law Enforcement Division only for the SCLEAP program as provided in Section 23-3-65. Revenues in the fund carry forward into succeeding fiscal years and earnings of the fund must be credited to it.

(B)   All South Carolina individual income tax return forms must contain a designation for the above contribution. The instructions accompanying the income tax form must contain a description of the purposes for which the SCLEAP Fund is established and the use of the monies from the contributions.

(C)   The department shall determine and report annually to the fund the total amount of contributions designated. The department shall transfer the appropriate amount to the fund at the earliest possible time. The incremental cost of administration of the contribution must be paid out of the contributions before any fund revenues are expended as provided in this section.

(D)   For purposes of this section, the South Carolina Department of Revenue is not subject to provisions of the South Carolina Solicitation of Charitable Funds Act as contained in Chapter 56, Title 33."

SECTION   3.     Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-625.   (A) Effective July 1, 2003, in addition to the tax imposed pursuant to Section 12-21-620(1), there is levied, assessed, collected, and paid upon 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. The amount imposed pursuant to this section must be reported, paid, collected, and enforced in the same manner as the tax imposed pursuant to Section 12-21-620(1).

Printed Page 3065 . . . . . Tuesday, May 27, 2003

(B)There is created in the state treasury the Medicaid Match Fund. The revenue of the tax imposed 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 annually be appropriated to the Department of Health and Human Services or its successor agency and used for the sole and exclusive purpose of state match for federal Medicaid funding. The fund is exempt from any budgetary cuts or reductions which are required or triggered by statute when there is a decrease or shortfall in estimated general fund revenues and may only be reduced by affirmative action of the General Assembly during the annual appropriation of the Medicaid Match Fund. 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 appropriated and used for the same purposes."

SECTION   4. Article 5, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-630.   Effective January 1, 2004, the license taxes imposed on cigarettes by this Article 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 imposed may not be of a denomination of less than one cent and whenever the tax computed at the rate prescribed is a specified amount plus a fractional part of one cent, the package must be stamped for the next full cent. The Department of Revenue 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 item. 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 Title 12 of the 1976 Code. 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 all cases, these goods must be stamped before being sold. Cigarettes manufactured within the State and sold directly to consumers must be stamped by the manufacturer when and as sold. Each person or distributor of taxable cigarettes first receiving untaxed

Printed Page 3066 . . . . . Tuesday, May 27, 2003
cigarettes for sale or distribution in this State is subject to the taxes imposed by Article 5, Chapter 21, Title 12 of the 1976 Code. Each person or distributor required to pay the taxes by affixing stamps must also make a report to the department, in the form and manner prescribed by the department, 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. 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 by this section. Credit must be allowed for any taxes previously paid on the cigarettes. The Department may retain a portion of the collections resulting from the administration of the tax stamp, not to exceed three hundred thousand dollars, to defray the cost of material and supplies."

SECTION   5.   Chapter 21 of Title 12 of the 1976 Code is amended by adding:

"Section 12-21-2725.   Beginning July 1, 2003, the Department of Revenue is authorized to assess an additional fee of fifty dollars on each Class Two coin operated machine license authorized in Section 12-21-2720. The funds shall be collected by the Department of Revenue and sent to the State Law Enforcement Division to offset the cost of video gaming enforcement. The State Law Enforcement Division is authorized to retain, expend, and carry forward these funds."

SECTION 6.   Section 12-21-735 is repealed effective January 1, 2004.

SECTION   7.   This act takes effect upon approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

Printed Page 3067 . . . . . Tuesday, May 27, 2003

Objection

Senator LAND asked unanimous consent to make a motion to perfect the amendment.

Senator KNOTTS objected.

Senator MOORE continued explaining the amendment.

Senator MOORE moved that the amendment be adopted.

Senator KNOTTS moved to lay the amendment on the table.

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

Ayes 13; Nays 33

AYES

Branton                   Courson                   Grooms
Hawkins                   Knotts                    Kuhn *
McConnell                 McGill                    Mescher
Peeler                    Setzler                   Thomas
Verdin

Total--13

NAYS

Alexander                 Anderson                  Cromer
Drummond                  Elliott                   Fair
Ford                      Giese                     Glover
Gregory                   Hayes                     Holland
Hutto                     Jackson                   Land
Leatherman                Leventis                  Malloy
Martin                    Matthews                  Moore
O'Dell *                  Patterson                 Pinckney
Rankin                    Ravenel                   Reese
Richardson                Ritchie                   Ryberg
Short                     Smith, J. Verne           Waldrep

Total--33

*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.

Printed Page 3068 . . . . . Tuesday, May 27, 2003

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

Senator KNOTTS argued contra to the adoption of the amendment.

Point of Quorum

At 2:36 P.M., Senator PEELER made the point that a quorum was not present. It was ascertained that a quorum was not present.

With Senator KNOTTS retaining the floor, on motion of Senator PEELER, with unanimous consent, consideration was interrupted by adjournment.

MOTION ADOPTED

On motion of Senator MOORE, with unanimous consent, the Senate stood adjourned in memory of Mr. Edward Duncan of Langley, S.C.

ADJOURNMENT

At 2:37 P.M., on motion of Senator PEELER, the Senate adjourned to meet tomorrow at 11:50 A.M.

* * *

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