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 St. Paul to the Romans (12:16ff):

"Live in harmony with one another. Take thought for what is noble in the sight of all. IF it is possible, so far as it depends on you, live peaceably with all."
Let us pray.

Father, those ARE tough and difficult words for us all in these days... at home and abroad.

St. Paul knew they were difficult words, so he qualified his admonitions with the words, "If it is possible, so far as it depends on you."

We are told that a Russian teacher once taught: "HOLD OUT YOUR HANDS IN FRIENDSHIP, OR STRETCH OUT YOUR LEGS IN YOUR COFFIN."

Father, help us find the "better way," in the Name of the God that loves us all.
Amen.

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

The Honorable André Bauer
President of the Senate
State House, 1st Floor, East Wing
Columbia, South Carolina 29202

I am hereby returning without my approval S. 731 (Word version), R-186, an Act:
TO AMEND SECTION 50-13-25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FISHING SEASON AND OTHER FISHING REGULATIONS ON SLADE LAKE IN EDGEFIELD COUNTY, SO AS TO FURTHER SPECIFY THESE REGULATIONS AND TO ALSO PROHIBIT THE USE OF NONGAME FISHING DEVICES AND THE POSSESSION OF FIREARMS, GLASS CONTAINERS, AND ALCOHOL AND TO PROHIBIT LITTERING AND THE IMPROPER OPERATION OR PARKING OF MOTOR VEHICLES.

This veto is based on my belief that this Bill is unconstitutional. S. 731, R-186 proposes to prohibit and regulate certain activities on Slade Lake and the recreational area of Slade Lake in Edgefield County which is owned and managed by the Town of Edgefield, not the South Carolina Department of Natural Resources. As such, S. 731, R-186 affects only Edgefield County and does not otherwise require state sanction by the Department of Natural Resources. Therefore, this Act is clearly an Act for a specific county in violation of Article VIII, Section 7 of the Constitution of the State of South Carolina, which provides that "[n]o laws for a specific county shall be enacted." Acts similar to S. 731, R-186 have been struck down by the South Carolina Supreme Court as violative of Article VIII, Section 7.

The General Assembly regulates local communities' use of many individual lakes in South Carolina on a lake-by-lake basis, including privately-owned lakes and lakes owned by local governments. I believe such regulation is not only unconstitutional, but also encroaches upon a local government's authority to regulate its own community's activities and enforce its own laws. It is my belief that local governments can best address the specific needs and interests of its communities. Because Slade Lake is owned and managed by the Town of Edgefield, the Town or County of Edgefield has the authority and expertise to regulate the Edgefield community's use of Slade Lake and the recreational area of Slade Lake.

For these reasons, I am returning S. 731, R-186 to you without my signature.

Sincerely,
Mark Sanford
Governor

(R186, S731 (Word version)) -- Senator Moore: AN ACT TO AMEND SECTION 50-13-25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FISHING SEASON AND OTHER FISHING REGULATIONS ON SLADE LAKE IN EDGEFIELD COUNTY, SO AS TO FURTHER SPECIFY THESE REGULATIONS AND TO ALSO PROHIBIT THE USE OF NONGAME FISHING DEVICES AND THE POSSESSION OF FIREARMS, GLASS CONTAINERS, AND ALCOHOL AND TO PROHIBIT LITTERING AND THE IMPROPER OPERATION OR PARKING OF MOTOR VEHICLES.

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

Senator MOORE moved that the veto of the Governor be overridden.

The question was put, "Shall the Act become law, the veto of the Governor to the contrary notwithstanding?"

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

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

The necessary two-thirds vote having been received, the veto of the Governor was overridden, and a message was sent to the House accordingly.

Columbia, S.C., February 19, 2004

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has overridden the veto by the Governor on R186, S. 731 by a vote of 2 to 0:

(R186, S731 (Word version)) -- Senator Moore: AN ACT TO AMEND SECTION 50-13-25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE FISHING SEASON AND OTHER FISHING REGULATIONS ON SLADE LAKE IN EDGEFIELD COUNTY, SO AS TO FURTHER SPECIFY THESE REGULATIONS AND TO ALSO PROHIBIT THE USE OF NONGAME FISHING DEVICES AND THE POSSESSION OF FIREARMS, GLASS CONTAINERS, AND ALCOHOL AND TO PROHIBIT LITTERING AND THE IMPROPER OPERATION OR PARKING OF MOTOR VEHICLES.
Very respectfully,
Speaker of the House

Received as information.

Senator DRUMMOND introduced Dr. Walter Clark of Greenwood, S.C., Doctor of the Day.

The following were introduced:

S. 982 (Word version) -- Senator Courson: A SENATE RESOLUTION TO CONGRATULATE GORDON CASE STIGLBAUER OF HAND MIDDLE SCHOOL IN COLUMBIA AS A RECIPIENT OF A 2004 PRUDENTIAL SPIRIT OF COMMUNITY AWARD, TO RECOGNIZE HIS OUTSTANDING RECORD OF VOLUNTEER SERVICE, PEER LEADERSHIP, AND COMMUNITY SPIRIT, AND

The Senate Resolution was adopted.

S. 983 (Word version) -- Senators Thomas, Kuhn, Ravenel, Cromer, Knotts, Hawkins, Grooms, O'Dell, Fair and Mescher: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 11 IN CHAPTER 36 OF TITLE 12 SO AS TO IMPOSE AN ADDITIONAL STATE SALES AND USE TAX EQUAL TO TWO PERCENT AND TO REIMBURSE PROPERTY TAXING ENTITIES FOR PROPERTY TAX CREDITS ALLOWED AGAINST PROPERTY TAXES ON MOTOR VEHICLES AND MOTORCYCLES AND OWNER-OCCUPIED RESIDENTIAL PROPERTY; TO AMEND CHAPTER 37, TITLE 12 BY ADDING ARTICLE 25 SO AS TO PROVIDE A PROPERTY TAX CREDIT AGAINST PROPERTY TAX FOR OPERATING PURPOSES OTHERWISE DUE ON PRIVATE PASSENGER MOTOR VEHICLES AND MOTORCYCLES AND OWNER-OCCUPIED RESIDENTIAL PROPERTY AND PROVIDE THE METHOD OF CALCULATING THE CREDITS AND THE REIMBURSING OF PROPERTY TAXING ENTITIES FOR THE PROPERTY TAX NOT COLLECTED BECAUSE OF THE CREDITS; TO AMEND SECTION 6-1-320, RELATING TO THE LIMITS ON ANNUAL INCREASES IN LOCAL GOVERNMENT AND SCHOOL DISTRICT PROPERTY TAX MILLAGE, SO AS TO REQUIRE ALL INCREASES, INCLUDING ADJUSTMENTS FOR INFLATION, TO BE APPROVED IN A REFERENDUM HELD AT THE TIME OF THE GENERAL ELECTION, AND TO PROVIDE TRANSITIONAL PROVISIONS AND EFFECTIVE DATES.
l:\council\bills\ggs\22380htc04.doc

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

S. 984 (Word version) -- Senators Knotts and Cromer: A BILL TO AMEND SECTION 16-11-760, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO A PERSON PARKING ON PRIVATE PROPERTY WITHOUT THE OWNER'S CONSENT AND THE REMOVAL OF THE VEHICLE, SO AS TO DELETE THE PROVISION THAT REQUIRES THE OWNER OF COMMERCIAL PROPERTY TO POST A NOTICE ON HIS PROPERTY THAT PROHIBITS PARKING, AND TO DELETE A CODE REFERENCE;

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

S. 985 (Word version) -- Senator Alexander: A BILL TO AMEND SECTION 23-3-440, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOTIFICATION OF THE SHERIFF AND SLED OF THE RELEASE OF A PERSON LISTED ON THE SEX OFFENDER REGISTRY, SO AS TO ADD THAT LOCAL LAW ENFORCEMENT ALSO MUST BE NOTIFIED OF THE RELEASE.
l:\council\bills\ms\7104ahb04.doc

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

S. 986 (Word version) -- Senators Moore and Giese: A BILL TO AMEND CHAPTER 47, TITLE 40, CODE OF LAWS OF SOUTH

Read the first time and referred to the Committee on Medical Affairs.

S. 987 (Word version) -- Senators Jackson, Glover, Ford and Pinckney: A JOINT RESOLUTION TO DIRECT THE SOUTH CAROLINA STATE HOUSE COMMITTEE TO ERECT A MARKER ON THE GROUNDS OF THE CAPITOL COMPLEX TO RECOGNIZE THE LIFE AND MANY ACCOMPLISHMENTS OF THE LATE UNITED STATES CONGRESSMAN ROBERT SMALLS.
l:\council\bills\swb\5841cm04.doc

Read the first time and referred to the General Committee.

S. 988 (Word version) -- Senate Transportation Committee: A BILL TO AMEND SECTION 56-1-176, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SCHOOL ATTENDANCE CONDITIONS ASSOCIATED WITH THE ISSUANCE OF CONDITIONAL AND SPECIAL RESTRICTED DRIVER'S LICENSES, SO AS TO

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

H. 4780 (Word version) -- Rep. Harrison: A CONCURRENT RESOLUTION TO FIX WEDNESDAY, MARCH 3, 2004, IMMEDIATELY FOLLOWING THE ELECTION OF MEMBERS OF THE PUBLIC SERVICE COMMISSION, AS THE TIME FOR THE HOUSE OF REPRESENTATIVES AND THE SENATE TO MEET IN JOINT ASSEMBLY IN THE HALL OF THE HOUSE OF REPRESENTATIVES TO ELECT A MEMBER OF THE LEGISLATIVE AUDIT COUNCIL TO SUCCEED THE HONORABLE DILL BLACKWELL WHOSE TERM HAS EXPIRED.

On motion of Senator MARTIN, with unanimous consent, the Concurrent Resolution was introduced and ordered placed on the Calendar without reference.

H. 4808 (Word version) -- Rep. Neilson: A CONCURRENT RESOLUTION TO RECOGNIZE AND COMMEND DR. C. MORRISON FARISH OF DARLINGTON COUNTY FOR OVER TWENTY YEARS OF DEDICATION TO PEDIATRIC MEDICINE IN THE STATE OF SOUTH CAROLINA AND TO WISH HIM MUCH SUCCESS AND HAPPINESS AS HE CONTINUES TO PROVIDE MEDICAL CARE TO CHILDREN IN THE PEE DEE AREA.

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

Senator WALDREP from the Committee on Agriculture and Natural Resources submitted a favorable report on:

S. 496 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 47-5-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RABIES INOCULATIONS, CERTIFICATES, TAGS, AND FEES, SO AS TO INCREASE THE FEE FROM THREE DOLLARS TO FIVE DOLLARS FOR A RABIES INOCULATION AT A RABIES CLINIC PROMOTED BY THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL AND LICENSED VETERINARIANS.

Ordered for consideration tomorrow.

Senator WALDREP from the Committee on Agriculture and Natural Resources submitted a favorable report on:

S. 847 (Word version) -- Senators Waldrep and Kuhn: A BILL TO AMEND SECTION 46-17-200, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO QUALIFICATIONS OF MEMBERS OF THE AGRICULTURAL COMMODITY BOARDS, SO AS TO REVISE THESE QUALIFICATIONS.

Ordered for consideration tomorrow.

Senator RYBERG from the Committee on Transportation submitted a favorable with amendment report on:

S. 860 (Word version) -- Senators Peeler, Ryberg, Knotts, Cromer, Martin, Kuhn and Alexander: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 56-5-1885 SO AS TO PROVIDE THE CIRCUMSTANCES WHEN IT IS LAWFUL TO DRIVE A VEHICLE IN THE LEFT LANE OF AN INTERSTATE HIGHWAY.

Ordered for consideration tomorrow.

S. 256 (Word version) -- Senators Grooms, Pinckney and Matthews: A CONCURRENT RESOLUTION TO REQUEST THAT THE SOUTH CAROLINA DEPARTMENT OF TRANSPORTATION ERECT DIRECTIONAL AND HISTORICAL SIGNS AT LOCATIONS WHICH ARE VISIBLE TO THE MOTORING PUBLIC READING "HISTORICAL TUSKEGEE AIRMEN MEMORIAL" AND THAT THESE SIGNS MUST BE PLACED AT APPROPRIATE LOCATIONS ON INTERSTATE 95 NEAR EXITS 53 AND 57,

Returned with concurrence.

Received as information.

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

H. 4673 (Word version) -- Reps. Young, Chellis, Bailey and Harrell: A BILL TO AMEND SECTION 7-7-230, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN DORCHESTER COUNTY, SO AS TO REVISE AND RENAME CERTAIN VOTING PRECINCTS IN DORCHESTER COUNTY, REDESIGNATE A MAP NUMBER FOR THE MAP ON WHICH LINES OF THESE PRECINCTS ARE DELINEATED AND MAINTAINED BY THE OFFICE OF RESEARCH AND STATISTICS OF THE STATE BUDGET AND CONTROL BOARD, AND CORRECT CERTAIN REFERENCES.

Senator BRANTON 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 BRANTON proposed the following amendment (SWB\ 5847SD04), which was adopted:

Amend the bill, as and if amended, by striking SECTION 2 and inserting:

/   SECTION   2.   This act takes effect July 1, 2004. /

Renumber sections to conform.

Amend title to conform.

Senator BRANTON explained the amendment.

The amendment was adopted.

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

The following Bill was read the third time and ordered sent to the House of Representatives:

S. 764 (Word version) -- Senator Ryberg: A BILL TO AMEND SECTION 56-3-1010, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS CONCERNING CORPORATE-OWNED FLEET MOTOR VEHICLES, SO AS TO REVISE THE DEFINITION OF THE TERM "FLEET".

The following Joint Resolution, having been read the second time with notice of general amendments, was ordered placed on the Third Reading Calendar:

H. 4687 (Word version) -- Rep. Cooper: A JOINT RESOLUTION TO ALLOW AN ENTITY THAT BEGAN PARTICIPATION IN THE STATE HEALTH INSURANCE PLAN BEFORE APRIL 1, 2004, TO DISCONTINUE PARTICIPATION IN THE PLAN REGARDLESS OF THE FOUR-YEAR MINIMUM PARTICIPATION REQUIREMENT IF THE ENTITY IS ADVERSELY AFFECTED BY THE IMPLEMENTATION OF EXPERIENCE RATING IN JULY 1, 2004, AND TO PROVIDE THE REQUIREMENTS FOR DISCONTINUING SUCH PARTICIPATION.

Senator RICHARDSON explained the Resolution.

Senator LEVENTIS spoke on the Resolution.

S. 979 (Word version) -- Senators Ravenel, Kuhn, McConnell, Branton, Mescher and Grooms: A BILL TO AMEND ACT 722 OF 1976, AS AMENDED, RELATING TO THE WASHINGTON LIGHT INFANTRY AND SUMTER GUARDS BOARD OF OFFICERS, SO AS TO REVISE THE MANNER IN WHICH THE BOARD IS APPOINTED AND TO DESIGNATE ONE MEMBER TO SERVE AS SECRETARY/TREASURER OF THE BOARD.

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

Senators BRANTON, RAVENEL and MESCHER proposed the following amendment (WASHINGTON LIGHT INFANTRY), which was adopted:

Amend the bill, as and if amended, page 1, line 32, by striking the word /   Chairman   /   and inserting the word /   Commander   /.

Amend title to conform.

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

H. 3223 (Word version) -- Reps. Lourie, Altman, Bailey, Bales and Richardson: A BILL TO AMEND SECTION 61-4-520, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPLICATIONS FOR PERMITS AUTHORIZING THE SALE OF BEER OR WINE AND SECTION 61-6-180, AS AMENDED, RELATING TO APPLICATIONS FOR LICENSES TO SELL ALCOHOLIC LIQUORS AND OTHER BEVERAGES, SO AS TO PROVIDE THAT THE NOTICES REQUIRED TO BE PUBLISHED IN CONNECTION WITH THESE APPLICATIONS MUST BE PUBLISHED IN THE NEWSPAPER OF GREATEST CIRCULATION IN THE AREA WHERE THE ESTABLISHMENT IS TO BE LOCATED.

Senator PATTERSON 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 adoption of the amendment proposed by the Committee on Judiciary.

Senator RYBERG proposed the following amendment (DKA\3657DW03):

Amend the Report of the Committee on Judiciary, as and if amended, page [3223-2], by deleting SECTION 4 in its entirety.

Renumber sections to conform.

Amend title to conform.

Senator RYBERG objected to further consideration of the Bill.

S. 893 (Word version) -- Senator Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 53-3-165 SO AS TO PROVIDE THAT THE THIRD FRIDAY IN SEPTEMBER OF EACH YEAR IS DECLARED TO BE "POW/MIA RECOGNITION DAY" IN SOUTH CAROLINA, TO PROVIDE THAT THE GOVERNOR SHALL ISSUE A PROCLAMATION EACH YEAR CALLING UPON THE PEOPLE OF SOUTH CAROLINA TO OBSERVE "POW/MIA DAY" WITH APPROPRIATE CEREMONIES AND ACTIVITIES, AND TO PROVIDE THAT THE FLAGS ATOP STATE AND LOCAL PUBLIC BUILDINGS, INCLUDING THE STATE CAPITOL BUILDING, SHALL BE FLOWN AT HALF-STAFF UNTIL NOON ON "POW/MIA RECOGNITION DAY".

On motion of Senator MARTIN, with unanimous consent, the Bill was carried over.

H. 3080 (Word version) -- Reps. Easterday and Hinson: A BILL TO AMEND TITLE 58, CHAPTER 3, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PUBLIC SERVICE COMMISSION, BY ADDING SECTION 58-3-230 SO AS TO PROHIBIT THE UNAUTHORIZED CHANGE OF A CUSTOMER'S UTILITY SERVICE PROVIDER, TO REQUIRE THAT THE AUTHORIZATION BE OBTAINED PURSUANT TO APPROPRIATE STATE AND FEDERAL REGULATIONS, TO PROVIDE THAT THE AUTHORIZATION FOLLOWS THE CUSTOMER, AND TO ESTABLISH PENALTIES.

Senator MOORE proposed the following amendment (BBM\9923SL03:

Amend the bill, as and if amended, by adding appropriately numbered SECTIONS to read:

/ SECTION   __.A.   Section 58-9-2200(6) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

"(6)   'Service address' means the location of the telecommunications equipment from which telecommunications services are originated or at which telecommunications services are received by a retail customer. If this location is not a defined location, as in the case of mobile phones, paging systems, maritime systems, and the like, 'service address' means the location of the retail customer's primary use of the

B.   Section 58-9-2200 of the 1976 Code, as added by Act 112 of 1999, is amended by adding an appropriately numbered item at the end to read:

( )   'Postpaid calling service' means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number that is not associated with the origination or termination of the telecommunications service.

C.   Section 58-9-2220 (2) of the 1976 Code, as added by Act 112 of 1999, is amended to read:

(2)(a)   The maximum business license tax that may be levied by a municipality on the gross income derived from the sale of retail telecommunications services for the preceding calendar or fiscal year which either originate or terminate in the municipality and which are charged to a service address within the municipality regardless of where these amounts are billed or paid and on which a business license tax has not been paid to another municipality for a business license tax year beginning after 2003 is the lesser of seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services or the maximum business license tax rate as calculated by the Board of Economic Advisors pursuant to subsection (b). For a business in operation for less than one year, the amount of business license tax authorized by this section must be computed based on a twelve-month projected income.

(b)   The Board of Economic Advisors from the appropriate municipal records shall determine actual total municipal revenues from business license taxes, franchise fees, and other fees contractually imposed on the sale of telecommunications services and received from telecommunications companies in 1998, and actual total revenues received by municipalities in 1999, 2000, 2001, 2002, and 2003 from such taxes and fees imposed on the gross income derived from the sale of retail telecommunications services. The board shall determine an

(c)   If the maximum business license tax rate that may be levied by a municipality on retail telecommunications services, as determined by the Board of Economic Advisors, is calculated or determined to exceed seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunication services a joint telecommunications study committee shall review the maximum business license tax calculation, as determined by the Board of Economic Advisors, and verify the maximum business license tax calculation. Upon verification of the maximum business license tax calculation, the joint telecommunications study committee must sponsor a joint resolution to allow a municipality to levy the maximum business license tax rate greater than seventy-five one hundredths of one percent of gross income derived from the sale of retail telecommunications services.

(d)   The joint telecommunications study committee shall consist of six members of the General Assembly: three Senators appointed by the President Pro Tempore of the Senate and three Representatives appointed by the Speaker of the House. The joint telecommunications study committee shall utilize the staff and resources of the Labor, Commerce and Industry Committee of the House of Representatives and the Judiciary Committee of the Senate. The joint telecommunications study committee is authorized to verify the maximum business license tax rate determined by the Board of Economic Advisors.

(3)   A business license tax levied by a municipality upon the retail telecommunications services provided by a telecommunications company must be levied in a competitively neutral and nondiscriminatory manner upon all providers of retail telecommunications services.

(4)   The measurement of the amounts derived from the retail sale of telecommunications services does not include:

(a)   an excise tax, sales tax, or similar tax, fee, or assessment levied by the United States or any state or local government including, but not limited to, emergency telephone surcharges, upon the purchase, sale, use, or consumption of a telecommunications service, which is permitted or required to be added to the purchase price of the service; and

(b)   bad debts.

(5)   A business license tax levied by a municipality upon a telecommunications company must be reported and remitted on an annual basis. The municipality may inspect the records of the telecommunications company as they relate to payments under this article.

(6)   The measurement of the amounts derived from the retail sale of mobile telecommunications services shall include only revenues from the fixed monthly recurring charge of customers whose service address is within the boundaries of the municipality.

SECTION   __.   Section 58-27-865 of the 1976 Code, as last amended by Act 348 of 1996, is further amended to read:

"Section 58-27-865.   (A)   The words 'fuel cost' as used in this section shall include the cost of fuel, fuel costs related to purchased power, and the cost of SO2 emission allowances as used and shall be reduced by the net proceeds of any sales of SO2 emission allowances by the utility.

(B)   In order to clarify the intent of this statue, 'fuel costs related to purchased power', as used in Section (A) shall include:

(1)   costs of firm generation capacity purchases, which are defined as purchases made to cure a capacity deficiency or to maintain adequate reserve levels. 'Costs of firm generation capacity purchases' shall include either:

(a)   the actual cost of fuel for energy delivered under firm generation capacity purchases, if identifiable by the seller; otherwise,

(b)   the total delivered costs of firm generation capacity purchased excluding only generation capacity reservation charges and generation capacity option charges.

(2)   the total delivered cost of economy purchases of electric power, including without limitation, transmission charges. 'Economy purchases' are defined as purchases made to displace higher cost generation, at a price which is less than the purchasing utility's avoided variable costs for the generation of an equivalent quantity of electric power.

(C)   The commission shall direct each electrical utility which incurs fuel cost for the sale of electricity to submit to the commission, within such time and in such form as the commission may designate, its estimates of fuel costs for the next twelve months. The commission may hold a public hearing at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel cost should be granted. Upon investigation of the estimate and conducting public hearings in accordance with law, the commission shall direct each company to place in effect in its base rate an amount designed to recover, during the succeeding twelve months, the fuel costs determined by the commission to be appropriate for that period, adjusted for the over-recovery or under-recovery from the preceding twelve-month period. The commission shall direct the electrical utilities to send notice to the utility customers with the antecedent billing of the time and place of the public hearings to be held every twelve months, and the commission shall again direct the electrical utilities to send notice to the utility customers with the next billing if the utility is granted a rate increase by the commission.

(C)(D)   The commission shall direct the electrical utilities to account monthly for the differences between the recovery of fuel costs through base rates and the actual fuel costs experienced, by booking the difference to unbilled revenues with a corresponding deferred debit or credit, the balance of which will be included in the projected fuel cost component of the base rates for the succeeding period. The commission shall direct the electrical utilities to submit monthly reports of fuel costs and monthly reports of all scheduled and unscheduled outages of generating units with a capacity of one hundred megawatts or greater.

(D)(E)   Upon request by the commission staff, the electrical utilities, or the Consumer Advocate, a public hearing must be held by the commission at any time between the twelve-month reviews to determine whether an increase or decrease in the base rate amount designed to recover fuel costs should be granted. If the request is by an electrical utility for a rate increase, the commission shall direct the utility to send notice of the request and hearing to all customers with the next billing, and if the commission grants the rate request subsequent to the request and hearing, the commission shall direct the utility to send notice of the amount of the increase or decrease to all customers with the next billing.

(E)(F)   The commission may offset, to the extent considered appropriate, the cost of fuel recovered through sales of power pursuant to interconnection agreements with neighboring electrical utilities against fuel costs to be recovered.

(F)(G)   The commission shall disallow recovery of any fuel costs that it finds without just cause to be the result of failure of the utility to make every reasonable effort to minimize fuel costs or any decision of the utility resulting in unreasonable fuel costs, giving due regard to reliability of service, economical generation mix, generating experience of comparable facilities, and minimization of the total cost of providing service. There shall be a rebuttable presumption that an electrical utility made every reasonable effort to minimize cost associated with the operation of its nuclear generation facility or system, as applicable, if the utility achieved a net capacity factor of ninety-two and one-half percent or higher during the period under review. The calculation of the net capacity factor shall exclude reasonable outage time associated with reasonable refueling, reasonable maintenance, reasonable repair, and reasonable equipment replacement outages; the reasonable reduced power generation experienced by nuclear units as they approach a refueling outage; the reasonable reduced power generation experienced by nuclear units associated with bringing a unit back to full power after an outage; Nuclear Regulatory Commission required testing outages unless due to the unreasonable acts of the utility; outages found by the commission not to be within the reasonable control of the utility; and acts of God. The calculation also shall exclude reasonable reduced power operations resulting from the demand for electricity being less than the full power output of the utility's nuclear generation system. If the net capacity factor is below ninety-two and one-half percent after reflecting the above specified outage time, then the utility shall have the burden of demonstrating the reasonableness of its nuclear operations during the period under review.

(G)(H)   The commission is authorized to promulgate, in accordance with the provisions of this section, all regulations necessary to allow the recovery by electrical utilities of all their prudently incurred fuel costs as precisely and promptly as possible, in a manner that tends to assure public confidence and minimize abrupt changes in charges to consumers.

SECTION   __.   Section 58-9-5786(A) of the 1976 Code, as added by Act 354 of 1996 is amended to read:

"(A)   Any LEC may elect to have rates, terms, and conditions determined pursuant to the plan described in subsection (B), provided

Renumber sections to conform.

Amend title to conform.

Senator MOORE explained the amendment.

On motion of Senator RICHARDSON, with unanimous consent, the Bill was carried over.

PURSUANT TO THE MOTION OF WEDNESDAY, FEBRUARY 18, 2004, THE SENATE PROCEEDED TO THE SPECIAL ORDER.

S. 531 (Word version) -- Judiciary Committee: A BILL TO AMEND SECTION 12-33-245, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MINIBOTTLE TAX, AND TO AMEND VARIOUS SECTIONS OF TITLE 61, CHAPTER 6, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE "ALCOHOLIC BEVERAGE CONTROL ACT". (ABBREVIATED TITLE)

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

Senator LEVENTIS argued contra to the second reading of the Bill.

On motion of Senator LEVENTIS,   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 motion of Senator MATTHEWS, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. L. H. Brown of Harleyville, S.C.

Senator McCONNELL moved that, when the Senate adjourns on Friday, February 20, 2004, it stand adjourned to meet next Tuesday, February 24, 2004, at 12:00 Noon, which motion was adopted.

At 12:48 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.

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