SENATE JOURNAL for Mar. 9, 2004 - South Carolina Legislature Online

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

Tuesday, March 9, 2004
(Statewide Session)

~~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 again St. Peter (First Epistle 2:16): "Live as free men... But live as servants of God."
Let us pray.

Father, we understand that at that period of the Roman Empire a third to a half of the population were slaves; but in our day, "freedom" can be frightening without the restraints of respect and love.

Help us to realize that there is nothing so useless as an instrument that fails in its purpose, like a clock that cannot keep time, or a car that will not run, or a person without a purpose.

How wonderful in life is a true SERVANT OF GOD.

Help us to strive!
Amen.

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

MESSAGE FROM THE GOVERNOR

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

Local Appointments

Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2004, and to expire March 15, 2006

Elizabeth Cromer Epps, 2119 Dalloz Road, Columbia, S.C. 29204

Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2004, and to expire March 15, 2006

Lillian A. McBride, 545 Trader Mill Rd., Columbia, S.C. 29223

Statewide Appointments

Initial Appointment, South Carolina State Commission on Higher Education, with term to commence July 1, 2004, and to expire July 1, 2008

At-Large

Cynthia C. Mosteller, 113 Ponsbury Road, Mt. Pleasant, S.C. 29464 VICE Susan R. Cole

Referred to the Committee on Education.

Initial Appointment, South Carolina Mental Health Commission, with term to commence July 31, 2003, and to expire July 31, 2008

5th Congressional District

Alison Y. Evans, 612 West Carolina Ave., Hartsville, S.C. 29551 VICE Douglas F. Gay

Referred to the Committee on Medical Affairs.

MESSAGE FROM THE GOVERNOR
State of South Carolina
Office of the Governor
P. O. Box 11369
Columbia, SC 29211
March 8, 2004

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

Mr. President and Members of the Senate:

I am hereby returning without my approval S. 481 (Word version), R-199, an Act:
TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT 1 OF CLARENDON COUNTY TO EXPEND FUNDS IN ITS SCHOOL BUILDING FUND TO MEET ITS COSTS OF OPERATIONS AND MAINTENANCE AND TO REPLACE FUNDS LOST AS A CONSEQUENCE OF REDUCTIONS IN STATE APPROPRIATIONS FOR FISCAL YEAR 2002-2003.

This Bill was introduced to address the budget shortfall of Clarendon School District One in fiscal year 2002-2003. I am vetoing this Bill because fiscal year 2002-2003 has ended and this legislation is no longer relevant.

I also have concerns with the policy of this Bill, specifically that it would allow the district to expend money from bonded indebtedness to fund operating expenses. In a transmittal letter accompanying H. 3945, R-105 last year, I indicated very clearly that I would veto any legislation that continued this practice. As I stated then, I believe funding short-term operating needs with long-term bonded indebtedness is not the fiscally-responsible way to address budget shortfalls and will actually add further stress on the school district's financial condition.

For these reasons, I am returning S. 481, R-199 to you without my signature.

Sincerely,
/s/Mark Sanford

VETO OVERRIDDEN

(R199, S481 (Word version)) -- Senator Land: AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES FOR SCHOOL DISTRICT 1 OF CLARENDON COUNTY TO EXPEND FUNDS IN ITS SCHOOL BUILDING FUND TO MEET ITS COSTS OF OPERATIONS AND MAINTENANCE AND TO REPLACE FUNDS LOST AS A CONSEQUENCE OF REDUCTIONS IN STATE APPROPRIATIONS.

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

Senator LAND 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:

Ayes 46; Nays 0

AYES

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

Total--46

NAYS

Total--0

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

REGULATION WITHDRAWN AND RESUBMITTED

The following was received:

Document No. 2889
Agency: Department of Labor, Licensing and Regulation, Building Codes Council
SUBJECT: Barrier Free Design, Building Codes Council
Received by Lieutenant Governor February 10, 2004
Referred to Labor, Commerce and Industry Committee
Legislative Review Expiration June 9, 2004
Revised: June 10, 2004 (Subject to Sine Die Revision)
Withdrawn and Resubmitted March 4, 2004

Doctor of the Day

Senator DRUMMOND introduced Dr. Angus McBryde of Columbia, S.C., Doctor of the Day.

Leave of Absence

At 1:30 P.M., Senator GIESE requested a leave of absence for Wednesday, March 10.

CO-SPONSOR REMOVED

S. 1036 (Word version) -- Senators Sheheen, Waldrep, Glover, Mescher, Richardson, Leventis, Reese, Drummond, Ritchie, Pinckney, Gregory, Branton, O'Dell, Grooms, Short, Malloy, Knotts, Ford, Peeler, Verdin, Setzler, Land, Hutto, Ravenel, Matthews, Jackson, Moore, Cromer, Thomas, Patterson, Fair, Alexander, McGill, Martin, Hawkins and Ryberg: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 23 TO TITLE 13 SO AS TO ENACT THE "SOUTH CAROLINA RURAL INFRASTRUCTURE BANK ACT"; TO ESTABLISH THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK FOR THE PURPOSE OF MAKING GRANTS TO ELIGIBLE RECIPIENTS IN RURAL AREAS; TO PROVIDE FOR THE GOVERNANCE OF THE BANK; TO PROVIDE FOR THE POWERS, DUTIES, AND RESPONSIBILITIES OF THE BOARD; TO PROVIDE CRITERIA FOR THOSE ENTITIES ELIGIBLE TO RECEIVE BANK GRANTS; TO ESTABLISH THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK TRUST FUND TO RECEIVE CERTAIN BANK REVENUES; TO PROVIDE THE CRITERIA WHICH THE BANK SHALL USE IN JUDGING APPLICATIONS FOR GRANTS; TO PROVIDE THAT CERTAIN FUNDS ARE TRANSFERRED TO THE TRUST FUND TO IMPLEMENT THE PROVISIONS OF THIS ACT; TO AUTHORIZE THE BOARD TO ESTABLISH FEES AND PROVIDE THAT CERTAIN FEES MUST BE CREDITED TO THE TRUST FUND ESTABLISHED BY THIS ACT; TO TRANSFER ALL ALLIED, ADVISORY, AFFILIATED, OR RELATED ENTITIES AS WELL AS THE EMPLOYEES, FUNDS, PROPERTY, AND ALL CONTRACT RIGHTS AND OBLIGATIONS ASSOCIATED WITH THE DIVISION OF LOCAL GOVERNMENT AND THE GRANT PROGRAM IT ADMINISTERS, THE SOUTH CAROLINA COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT, THE STATE RURAL INFRASTRUCTURE FUND, THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE SOUTH CAROLINA WATER QUALITY REVOLVING FUND AUTHORITY, AND THE SOUTH CAROLINA INFRASTRUCTURE FACILITIES AUTHORITY TO AND UNDER THE EXCLUSIVE CONTROL OF THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK; BY ADDING SECTION 12-24-93 SO AS TO PROVIDE THAT REVENUES OF THE STATE PORTION OF THE DEED RECORDING FEE CREDITED TO THE GENERAL FUND OF THE STATE IS CREDITED INSTEAD TO THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK TRUST FUND; TO AMEND SECTION 11-11-170, AS AMENDED, RELATING TO THE REVENUES PAYABLE FROM THE TOBACCO SETTLEMENT LOCAL GOVERNMENT FUND, SO AS TO PROVIDE THAT GRANTS FROM THE FUND MUST BE TO FUND GRANTS DISTRIBUTED BY THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK INSTEAD OF THE OFFICE OF LOCAL GOVERNMENT OF THE DIVISION OF REGIONAL DEVELOPMENT OF THE BUDGET AND CONTROL BOARD; TO AMEND SECTION 11-40-20, RELATING TO THE CREATION OF THE SOUTH CAROLINA INFRASTRUCTURE FACILITIES AUTHORITY, SO AS TO PROVIDE THAT THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK SHALL COMPRISE THE AUTHORITY INSTEAD OF THE STATE BUDGET AND CONTROL BOARD; TO AMEND SECTION 11-40-250, RELATING TO THE REQUIREMENT THAT THE DIVISION OF LOCAL GOVERNMENT OF THE STATE BUDGET AND CONTROL BOARD PROVIDE STAFF AND ASSIST THE SOUTH CAROLINA INFRASTRUCTURE FACILITIES AUTHORITY, SO AS TO PROVIDE THAT THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK PERFORM THESE DUTIES AND RESPONSIBILITIES INSTEAD OF THE DIVISION OF LOCAL GOVERNMENT; TO AMEND SECTIONS 12-10-80, 12-10-85, AND 12-28-2910, ALL AS AMENDED, RELATING TO FUNDS PAYABLE TO THE STATE RURAL INFRASTRUCTURE FUND AND FUNDS GENERATED FROM A PORTION OF THE GASOLINE AND FUEL USER FEES, SO AS TO PROVIDE THAT THESE MONIES MUST BE DISTRIBUTED TO THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK AND DEPOSITED IN THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK TRUST FUND AND USED TO PROVIDE GRANTS FOR ELIGIBLE RECIPIENTS; TO AMEND SECTION 48-1-350, AS AMENDED, RELATING TO PENALTIES IMPOSED UNDER THE POLLUTION CONTROL ACT, SO AS TO PROVIDE THAT THE STATE PORTION OF THE CIVIL PENALTIES CREDITED TO THE GENERAL FUND IS CREDITED INSTEAD TO THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK TRUST FUND; TO AMEND SECTION 48-5-30, RELATING TO THE CREATION OF THE SOUTH CAROLINA WATER QUALITY REVOLVING FUND AUTHORITY, SO AS TO PROVIDE THAT THE MEMBERS OF THE SOUTH CAROLINA RURAL INFRASTRUCTURE BANK COMPRISE THE AUTHORITY INSTEAD OF THE STATE BUDGET AND CONTROL BOARD; TO REPEAL SECTION 1-11-25 RELATING TO THE CREATION OF THE OFFICE OF LOCAL GOVERNMENT OF THE BUDGET AND CONTROL BOARD; AND TO PROVIDE FOR AN INTERIM EXECUTIVE DIRECTOR OF THE RURAL INFRASTRUCTURE BANK.

On motion of Senator RITCHIE, the name of Senator RITCHIE was removed as a co-sponsor of S. 1036.

CARRIED OVER

S. 356 (Word version) -- Senator Hutto: A BILL TO AMEND CHAPTER 1 OF TITLE 56 OF THE 1976 CODE BY ADDING SECTION 56-1-205 TO PROVIDE THAT THE DEPARTMENT, UPON REQUEST, MUST PLACE A NOTATION ON AN APPLICANT'S DRIVER'S LICENSE THAT THE APPLICANT IS HEARING IMPAIRED AND IF THE APPLICANT SUFFERS HEARING LOSS OF FORTY DECIBELS OR MORE; AND TO AMEND CHAPTER 3 OF TITLE 56 BY ADDING SECTION 56-3-1930 TO PROVIDE FOR IDENTIFICATION PLACARDS FOR HEARING IMPAIRED DRIVERS.

The House returned the Bill with amendments.

The question then was concurrence in the House amendments.

Senator McCONNELL was recognized.

With Senator McCONNELL retaining the floor, Senator MARTIN asked unanimous consent to make a motion to carry over the Bill until Wednesday, March 17, 2004, immediately following the completion of the Call of the Uncontested Calendar.

There was no objection and the Bill was carried over.

INTRODUCTION OF BILLS AND RESOLUTIONS

The following were introduced:

S. 1038 (Word version) -- Senator J. Verne Smith: A CONCURRENT RESOLUTION TO HONOR AND RECOGNIZE SUZANNE CULP OF THE SOUTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES UPON HER RETIREMENT ON MARCH 31, 2004, AND TO EXTEND BEST WISHES TO HER IN ALL OF HER FUTURE ENDEAVORS.
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Senator J. VERNE SMITH spoke on the Resolution.

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

S. 1039 (Word version) -- Senators Reese, Knotts, Drummond, Kuhn and Ravenel: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-30 SO AS TO PROVIDE THAT IT IS THE PUBLIC POLICY OF THIS STATE THAT STATE AGENCIES DO NOT PROVIDE GOODS AND SERVICES IN COMPETITION WITH PRIVATE BUSINESS, TO PROVIDE DEFINITIONS WITH RESPECT TO THIS POLICY, AND TO PROVIDE THOSE REQUIREMENTS NECESSARY FOR CONTRAVENING THIS POLICY.
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Read the first time and referred to the Committee on Finance.

S. 1040 (Word version) -- Senators Cromer and Grooms: A BILL TO AMEND SECTION 50-11-355, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE OFFENSE OF HUNTING DEER WITHIN THREE HUNDRED YARDS OF A RESIDENCE WITHOUT PERMISSION OF THE OWNER AND OCCUPANT, SO AS TO LIMIT THIS OFFENSE TO HUNTING DEER WITH A FIREARM.
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Read the first time and referred to the Committee on Fish, Game and Forestry.

S. 1041 (Word version) -- Senators Martin and Ritchie: A BILL TO AMEND SECTION 7-13-190, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO SPECIAL ELECTIONS TO FILL VACANCIES IN OFFICE, SO AS TO REPEAL A PROVISION WHICH PROHIBITS WRITE-IN VOTES IN SPECIAL ELECTIONS AND MUNICIPAL GENERAL ELECTIONS.
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Read the first time and referred to the Committee on Judiciary.

S. 1042 (Word version) -- Senator O'Dell: A BILL TO AMEND SECTION 15-78-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO DEFINITIONS OF TERMS IN THE TORT CLAIMS ACT, SO AS TO INCLUDE IN THE DEFINITION OF "GOVERNMENTAL HEALTH CARE FACILITY" A NURSING HOME THAT PROVIDES SERVICES THROUGH MEDICAID, MEDICARE, OR BY CONTRACT WITH THE VETERANS ADMINISTRATION AND THOSE SERVICES CONSTITUTE AT LEAST TWENTY-FIVE PERCENT OF THE GROSS REVENUE.
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Read the first time and referred to the Committee on Judiciary.

S. 1043 (Word version) -- Senator McConnell: A BILL TO AMEND SECTION 31-12-100, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISSOLUTION OF A MILITARY FACILITIES REDEVELOPMENT AUTHORITY, SO AS TO PROVIDE THAT AN ADOPTED REDEVELOPMENT PLAN AND TAX INCREMENT FINANCE OBLIGATIONS ADOPTED PURSUANT TO THE PLAN REMAIN IN PLACE UPON THE DISSOLUTION OF THE AUTHORITY UNTIL ADOPTION OF A MUNICIPAL ORDINANCE FINALLY DISSOLVING THE TAX ALLOCATION FUND AND TERMINATING THE REDEVELOPMENT PROJECT AREA; TO AMEND SECTION 31-12-210, AS AMENDED, RELATING TO THE ISSUANCE OF OBLIGATIONS FOR A MILITARY FACILITIES REDEVELOPMENT PROJECT BY A MUNICIPALITY, SO AS TO PROVIDE THAT THE OBLIGATIONS MAY BE ISSUED WITHIN FIFTEEN YEARS OF THE MUNICIPALITY'S CONCURRENCE IN THE REDEVELOPMENT PLAN; TO AMEND SECTION 31-12-270, AS AMENDED, RELATING TO THE ADOPTION OF AN ORDINANCE BY A MUNICIPALITY CONCURRING IN THE MILITARY FACILITIES REDEVELOPMENT PLAN, SO AS TO PROVIDE FOR THE TIME PERIOD BY WHICH AN ORDINANCE MUST BE ADOPTED IN WHICH THE TAX ALLOCATION FUND IS DISSOLVED AND THE REDEVELOPMENT PROJECT AREA'S DESIGNATION IS TERMINATED; TO AMEND SECTION 31-12-290, AS AMENDED, RELATING TO THE TAX ALLOCATION FUND AND THE CARRY FORWARD OF UNEXPENDED FUNDS, SO AS TO PROVIDE THAT FUNDS CARRIED FORWARD MAY BE USED ON MILITARY FACILITIES REDEVELOPMENT PROJECT COSTS; AND TO AMEND SECTION 31-12-300, AS AMENDED, RELATING TO THE CERTIFICATION OF THE TOTAL INITIAL EQUALIZED ASSESSED VALUE OF TAXABLE PROPERTY WITHIN A MILITARY FACILITIES REDEVELOPMENT PROJECT AREA, SO AS TO PROVIDE FOR TIME PERIODS BY WHICH THE VALUE MUST BE DETERMINED AND TO REQUIRE COOPERATION AMONG OFFICIALS IN MAKING THAT DETERMINATION.
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Read the first time and referred to the Committee on Labor, Commerce and Industry.

S. 1044 (Word version) -- Senator Leatherman: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-53-740 SO AS TO AUTHORIZE THE AREA COMMISSION OF FLORENCE-DARLINGTON TECHNICAL COLLEGE TO ENTER INTO GROUND LEASE AGREEMENTS WITH A PRIVATE ENTITY FOR THE CREATION AND OPERATION OF AN ON-CAMPUS FACILITY, THE PURPOSE OF WHICH SHALL BE DETERMINED BY THE COMMISSION, TO PROVIDE FOR THE APPROVALS NECESSARY TO ENTER INTO SUCH AN AGREEMENT AND FOR SPECIFIC TERMS AND CONDITIONS WHICH MUST BE A PART OF SUCH AN AGREEMENT, TO PROVIDE THAT THE AREA COMMISSION OF THE COLLEGE MAY ENTER INTO A LEASE OR LEASE PURCHASE AGREEMENT WITH A PRIVATE ENTITY FOR IT TO OCCUPY A COLLEGE FACILITY OR A FACILITY TO BE BUILT BY THE COLLEGE ON COLLEGE PROPERTY FOR THE PURPOSE OF CONDUCTING AN ENTREPRENEUR OR COMMERCIAL ACTIVITY, AND TO PROVIDE THAT THE AREA COMMISSION OF THE COLLEGE MAY ENTER INTO A GROUND LEASE WITH A PRIVATE ENTITY FOR THE PRIVATE ENTITY TO BUILD A FACILITY ON PROPERTY OF THE COLLEGE IN WHICH IT WILL CONDUCT ENTREPRENEURIAL OR COMMERCIAL ACTIVITY CONSISTENT WITH THE SCOPE AND MISSION OF THE COLLEGE.
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Read the first time and, on motion of Senator LEATHERMAN, with unanimous consent, S. 1044 was ordered placed on the Calendar without reference.

S. 1045 (Word version) -- Senators Branton, Ford, Grooms, Elliott, Cromer, Knotts, Ravenel, Giese, Anderson, Verdin, Mescher, O'Dell, McGill, Richardson, Ryberg and Leventis: 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 REDUCE AT THE RATE OF ONE PERCENTAGE POINT A YEAR THE FIVE PERCENT STATE SALES TAX ON FOOD ITEMS WHICH LAWFULLY MAY BE PURCHASED WITH UNITED STATES DEPARTMENT OF AGRICULTURE FOOD COUPONS, TO EXEMPT COMPLETELY FROM THE STATE PORTION OF THE TAX ALL SUCH FOOD EFFECTIVE JULY 1, 2009, AND TO PROVIDE FOR THE USE OF THE REVENUE FROM THE REDUCED RATES OF TAX DURING THE PHASE-IN PERIOD.
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Senator BRANTON spoke on the Bill.

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

S. 1046 (Word version) -- Senators Branton, Grooms, Elliott, Cromer, Knotts, Ravenel, Mescher, O'Dell, McGill, Richardson, Verdin and Ryberg: A JOINT RESOLUTION TO DIRECT THE STATE ELECTION COMMISSION TO HOLD A REFERENDUM AT THE TIME OF THE 2004 GENERAL ELECTION FOR REPRESENTATIVES TO ASCERTAIN WHETHER THE SOUTH CAROLINA ELECTORS FAVOR ELIMINATING THE FIVE PERCENT STATE SALES TAX ON FOOD BY PHASING OUT THE TAX OVER FIVE YEARS AND TO EXPRESS THE INTENT OF THE GENERAL ASSEMBLY TO ACT IN ITS NEXT SESSION TO PROCEED TO ELIMINATE THE SALES TAX ON FOOD IF A MAJORITY OF THOSE VOTING IN THE REFERENDUM FAVOR SUCH ELIMINATION.
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Read the first time and referred to the Committee on Finance.

S. 1047 (Word version) -- Senators Alexander, Mescher, Moore, Martin, Hayes, O'Dell and Waldrep: A CONCURRENT RESOLUTION TO URGE PRESIDENT GEORGE W. BUSH AND HIS ADMINISTRATION TO TAKE CERTAIN ACTIONS TO PROHIBIT OR REDUCE THE PRACTICE OF INTERNATIONAL CURRENCY MANIPULATION.
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The Concurrent Resolution was introduced and referred to the General Committee.

H. 3813 (Word version) -- Reps. M. A. Pitts, Duncan, Mahaffey and Sandifer: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-3-415 SO AS TO PROVIDE THAT AN AGENCY ENFORCING NATURAL RESOURCES, GAME, FISH, OR BOATING LAWS MUST REPORT CRIMINAL CHARGES MADE AND THEIR DISPOSITION TO THE DEPARTMENT OF NATURAL RESOURCES, AND FURTHER PROVIDE FOR USE OF THE REPORTS BY THE DEPARTMENT.

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

H. 4399 (Word version) -- Rep. McLeod: A BILL TO AMEND ARTICLE 13, CHAPTER 53, TITLE 44 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEAD POISONING PREVENTION AND CONTROL SO AS TO RENAME THIS ARTICLE THE "CHILDHOOD LEAD POISONING PREVENTION AND CONTROL ACT", TO CLARIFY THAT THE ARTICLE ADDRESSES CIRCUMSTANCES RELATING TO CHILDREN AND LEAD POISONING, TO FURTHER SPECIFY SURFACES IN A DWELLING OR FACILITY THAT MAY CONTAIN A LEAD-BASED HAZARD, TO UPDATE REQUIREMENTS FOR EDUCATION AND PUBLIC AWARENESS PROGRAMS, INVESTIGATIONS, AND RECORDKEEPING, TO REVISE PROCEDURES FOR THE ISSUANCE AND EXECUTION OF AN ADMINISTRATIVE WARRANT TO INVESTIGATE LEAD-BASED HAZARDS, TO REQUIRE LABORATORIES TO REPORT TO THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL RESULTS OF ANY BLOOD LEAD ANALYSES CONDUCTED ON CHILDREN UNDER THE AGE OF SIX, TO DELETE OBSOLETE PROVISIONS, TO REVISE CRIMINAL PENALTIES, TO PROVIDE FOR CIVIL FINES, AND TO PROVIDE THAT THE PROVISIONS OF THIS ARTICLE ARE CONTINGENT UPON THE APPROPRIATION OR AVAILABILITY OF FUNDS.

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

H. 4406 (Word version) -- Reps. Ott, Lucas, Hayes, McLeod, Hosey, Barfield, Coates, Allen, Anthony, Bales, Battle, Bingham, Bowers, Breeland, G. Brown, R. Brown, Ceips, Clark, Clyburn, Cooper, Delleney, Duncan, Edge, Emory, Freeman, Frye, Gilham, Gourdine, Hagood, Harrell, J. Hines, Hinson, Jennings, Keegan, Kennedy, Koon, Leach, Lee, Littlejohn, Lloyd, Mahaffey, Martin, McCraw, McGee, Merrill, Moody-Lawrence, J. M. Neal, Neilson, Owens, Parks, Pinson, E. H. Pitts, Quinn, Rice, Rivers, Sheheen, Sinclair, Skelton, G. R. Smith, J. E. Smith, J. R. Smith, W. D. Smith, Snow, Stille, Taylor, Toole, Townsend, Tripp, Trotter, Walker, Weeks, Whitmire, Witherspoon and Young: A BILL TO AMEND SECTIONS 2-17-10 AND 8-13-1300, BOTH AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING, RESPECTIVELY, TO DEFINITIONS CONCERNING LOBBYISTS AND LOBBYING AND CAMPAIGN PRACTICES, BOTH SO AS TO REVISE THE DEFINITION OF "LEGISLATIVE CAUCUS" TO INCLUDE A CAUCUS BASED ON REPRESENTATION OF PERSONS RESIDING OUTSIDE OF A MAJOR METROPOLITAN AREA.

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

H. 4420 (Word version) -- Rep. Kirsh: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-31-125 SO AS TO PROVIDE THAT FOR PURPOSES OF THE SOUTH CAROLINA EMPLOYMENT SECURITY LAW, A NEW EMPLOYING UNIT MUST NOT BE ASSIGNED A DISCRETE EMPLOYER NUMBER WHEN THERE IS AN ACQUISITION OR CHANGE IN THE FORM OF THE ORGANIZATION OF AN EXISTING BUSINESS ENTERPRISE WITH CONTINUITY OF CONTROL, AND TO PROVIDE DEFINITIONS.

Read the first time and referred to the Committee on Labor, Commerce and Industry.

H. 4475 (Word version) -- Reps. Harrell, W. D. Smith, Wilkins, Altman, Bingham, Ceips, Chellis, Clark, Cotty, Davenport, Edge, Frye, Gilham, Hagood, Hamilton, Harrison, Haskins, Hinson, Huggins, Koon, Leach, Limehouse, Littlejohn, Mahaffey, Martin, Merrill, E. H. Pitts, Quinn, Rice, Richardson, Simrill, D. C. Smith, G. M. Smith, G. R. Smith, J. R. Smith, Stewart, Stille, Taylor, Toole, Townsend, Tripp, Umphlett, Vaughn, Walker, White, Witherspoon, Young, Sandifer, Kirsh, Owens, Whitmire, Cato, Coates, Ott, Sinclair, Keegan, McGee, Perry, J. M. Neal, Emory, Pinson, Barfield, R. Brown, Weeks, Branham, Bailey, Battle, Neilson, Clemmons, Viers and Harvin: A BILL TO ENACT THE FISCAL DISCIPLINE PLAN OF 2004 BY DESIGNATING SECTION 6 OF ACT 356 OF 2002, RELATING TO ACTIONS NECESSARY FOR THE STATE BUDGET AND CONTROL BOARD TO COVER AN OPERATING DEFICIT, AS SECTION 11-11-180, CODE OF LAWS OF SOUTH CAROLINA, 1976, AND AMENDING IT TO REQUIRE AN OPERATING DEFICIT TO BE PLACED FIRST ON THE AGENDA OF THE STATE BUDGET AND CONTROL BOARD AT THE FIRST BOARD MEETING FOLLOWING THE COMPTROLLER GENERAL'S REPORT OF THE DEFICIT TO THE BOARD, BY PROVIDING FOR THE REPAYMENT OF THE ACCUMULATED STATE OPERATING DEFICIT AND LIMITING GENERAL FUND APPROPRIATIONS GROWTH TO THREE PERCENT IN FISCAL YEARS 2003-2004 THROUGH 2008-2009 AND PROVIDING FOR THE USE OF SURPLUS REVENUES, AND TO PROVIDE THAT DURING THE SAME PERIOD ANNUALLY REQUIRED TRANSFERS TO THE GENERAL RESERVE FUND MUST BE CONSIDERED RECURRING GENERAL FUND APPROPRIATIONS.

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

H. 4572 (Word version) -- Reps. Battle, M. Hines, Richardson and Martin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-1-694 SO AS TO DESIGNATE THE SOUTH CAROLINA TOBACCO MUSEUM IN THE CITY OF MULLINS AS THE OFFICIAL TOBACCO MUSEUM OF THE STATE.

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

H. 4642 (Word version) -- Reps. Skelton, Cotty, Loftis, Sinclair, Cato, Simrill, Hayes, Barfield, Limehouse, Whipper, Altman, Anthony, Bailey, Battle, Bingham, Bowers, G. Brown, Ceips, Clark, Davenport, Duncan, Emory, Freeman, Hamilton, Harrell, Harrison, Herbkersman, J. Hines, M. Hines, Keegan, Kirsh, Leach, Mahaffey, Martin, Owens, Perry, Pinson, E. H. Pitts, Rice, Richardson, Scarborough, D. C. Smith, G. M. Smith, G. R. Smith, Stewart, Taylor, Toole, Trotter, Viers, White, Whitmire, Witherspoon, Young, Clemmons and Coates: 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".

Read the first time and, on motion of Senator MARTIN, with unanimous consent, H. 4642 was ordered placed on the Calendar without reference.

H. 4649 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 56-5-765, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INVESTIGATIONS OF TRAFFIC COLLISIONS INVOLVING A MOTOR VEHICLE OR MOTORCYCLE OF A LAW ENFORCEMENT AGENCY, SO AS TO DEFINE THE TERM "INVOLVED IN A TRAFFIC COLLISION", AND TO PROVIDE THAT ANY INVESTIGATION THAT OCCURS AS A RESULT OF A COLLISION INVOLVING A POLICE VEHICLE MUST INCLUDE A FIELD INVESTIGATION TO IDENTIFY POSSIBLE WITNESSES.

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

H. 4720 (Word version) -- Rep. Harrison: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 6 TO TITLE 26, SO AS TO ENACT THE UNIFORM ELECTRONIC TRANSACTIONS ACT, PROVIDING FOR DEFINITIONS, LEGAL EFFECT AND ENFORCEABILITY OF AN ELECTRONIC RECORD AND SIGNATURE, CHANGES OR ERRORS IN TRANSMISSION OF AN ELECTRONIC RECORD, COMPLIANCE OF AN ELECTRONIC RECORD OR SIGNATURE WITH OTHER LAWS AFFECTING VALIDITY OR RETENTION OR RECEIPT OF A RECORD OR SIGNATURE, USE OF ELECTRONIC RECORDS BY GOVERNMENTAL AGENCIES, PROMULGATION OF REGULATIONS BY THE BUDGET AND CONTROL BOARD TO ENHANCE THE UTILIZATION OF ELECTRONIC RECORDS AND SIGNATURES, AND DEVELOPMENT BY THE SECRETARY OF STATE OF MODEL PROCEDURES AND PROMULGATION OF REGULATIONS FOR SECURE ELECTRONIC TRANSACTIONS, INCLUDING LICENSING OF THIRD PARTIES; TO MAKE THE COMPUTER CRIME ACT APPLICABLE TO THE UNIFORM ELECTRONIC TRANSACTIONS ACT; AND TO REPEAL CHAPTER 5 OF TITLE 26, THE SOUTH CAROLINA ELECTRONIC COMMERCE ACT.

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

H. 4723 (Word version) -- Reps. Loftis, Vaughn, Cato, Allen, Altman, Bales, Barfield, Battle, Branham, J. Brown, Davenport, Hamilton, Haskins, M. Hines, Hosey, Jennings, Leach, McCraw, Owens, Perry, Rice, D. C. Smith, F. N. Smith, G. R. Smith, J. R. Smith, Tripp, Wilkins and Mahaffey: A BILL TO AMEND SECTION 12-28-2740, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DISTRIBUTION OF THE GASOLINE USER FEES AMONG THE VARIOUS COUNTIES AND COUNTY TRANSPORTATION COMMITTEES ENTITLED TO EXPEND 'C' FUNDS, SO AS TO CHANGE THE NAME OF A COUNTY TRANSPORTATION COMMITTEE TO THE LEGISLATIVE DELEGATION TRANSPORTATION COMMITTEE OF THE PARTICULAR COUNTY.

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

H. 4823 (Word version) -- Reps. Harrison, Merrill, Altman, Clemmons, Hagood, Haskins, Jennings, Rutherford, Scott, Simrill, Sinclair, J. E. Smith, Talley, Taylor and Delleney: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 11-47-40 SO AS TO PROVIDE FOR AN AUTOMATIC STAY OF EXECUTION DURING APPELLATE REVIEW OF A JUDGMENT IN A CIVIL ACTION INVOLVING A PARTY TO THE MASTER SETTLEMENT AGREEMENT ENTERED INTO IN CONNECTION WITH THE TOBACCO ESCROW FUND ACT AND TO AMEND SECTION 18-9-130, RELATING TO THE EFFECT OF NOTICE OF APPEAL ON EXECUTION OF JUDGMENT, SO AS TO REFLECT THE AUTOMATIC STAY OF EXECUTION IN THOSE CIRCUMSTANCES.

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

H. 4830 (Word version) -- Reps. Littlejohn, Talley, Sinclair and W. D. Smith: A CONCURRENT RESOLUTION TO REQUEST THAT THE DEPARTMENT OF TRANSPORTATION NAME THE PORTION OF SOUTH CAROLINA HIGHWAY 176 IN SPARTANBURG COUNTY FROM ITS INTERSECTION WITH COUNTRY CLUB ROAD TO THE SPARTANBURG COUNTY-UNION COUNTY LINE IN HONOR OF RETIRED SOUTH CAROLINA SUPREME COURT CHIEF JUSTICE CAMERON BRUCE LITTLEJOHN, AND TO ERECT APPROPRIATE MARKERS OR SIGNS ALONG THIS STRETCH OF HIGHWAY CONTAINING THE WORDS "BRUCE LITTLEJOHN BOULEVARD".

The Concurrent Resolution was introduced and referred to the Committee on Transportation.

H. 4844 (Word version) -- Reps. Richardson, Delleney, Emory, Kirsh, McCraw, Moody-Lawrence and Simrill: A BILL TO AMEND SECTION 7-7-530, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN YORK COUNTY, SO AS TO ADD AND REVISE CERTAIN VOTING PRECINCTS IN YORK COUNTY AND 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.

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

H. 4851 (Word version) -- Medical, Military, Public and Municipal Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO STANDARDS FOR LICENSING FREESTANDING OR MOBILE TECHNOLOGY, DESIGNATED AS REGULATION DOCUMENT NUMBER 2859, 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 Medical Affairs.

H. 4871 (Word version) -- Reps. Witherspoon, Viers, Barfield, Clemmons and Keegan: A BILL TO AMEND SECTION 7-7-320, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DESIGNATION OF VOTING PRECINCTS IN HORRY COUNTY, SO AS TO REVISE A CERTAIN VOTING PRECINCT IN HORRY COUNTY AND 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.

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

H. 4883 (Word version) -- Reps. Neilson, J. Hines and Lucas: A JOINT RESOLUTION TO PROVIDE THAT SCHOOL DAYS MISSED ON FEBRUARY 25 AND 26, 2004, BY THE STUDENTS OF A SCHOOL IN THE DARLINGTON COUNTY SCHOOL DISTRICT WHEN THE SCHOOL WAS CLOSED DUE TO ICE OR INCLEMENT WEATHER CONDITIONS ARE EXEMPTED FROM THE MAKE-UP REQUIREMENT THAT FULL SCHOOL DAYS MISSED DUE TO EXTREME WEATHER OR OTHER CIRCUMSTANCES BE MADE UP.

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

REPORT OF STANDING COMMITTEE

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

S. 975 (Word version) -- Senators Waldrep, Hutto, Cromer, Knotts and Verdin: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 34 TO TITLE 39 SO AS TO ENACT THE "SOUTH CAROLINA DAIRY FAIRNESS ACT", TO ESTABLISH THE SOUTH CAROLINA MILK BOARD, TO PROVIDE FOR ITS MEMBERS, PROCEDURES FOR THEIR APPOINTMENT AND FOR THEIR POWERS AND DUTIES; TO PROVIDE THAT THE BOARD'S PRIMARY DUTY IS TO ESTABLISH A FAIR MARKET BREAKEVEN PRICE FOR PRODUCERS OF MILK AND EXERCISE GENERAL SUPERVISION OVER THE MILK INDUSTRY IN THIS STATE; TO PROVIDE THAT THE BOARD MUST BE LOCATED IN THE SOUTH CAROLINA DEPARTMENT OF AGRICULTURE; TO AUTHORIZE THE BOARD TO ENTER INTO COMPACTS FOR A UNIFORM SYSTEM OF MILK CONTROL, TO CONDUCT INVESTIGATIONS AND MEDIATE AND ARBITRATE MILK DISPUTES, TO ISSUE RULES, ORDERS, AND FAIR MARKET BREAKEVEN MILK PRICES, TO SPECIFY CONDITIONS UNDER WHICH FEES MAY BE COLLECTED WHEN MILK DROPS BELOW THE FAIR MARKET BREAKEVEN PRICE SET BY THE BOARD, AND TO PROVIDE FOR THE COLLECTION AND DISBURSAL OF THESE FEES; TO REQUIRE LICENSURE IN ORDER TO OPERATE AS A MILK BUYER; TO AUTHORIZE THE BOARD TO DEVELOP A SYSTEM OF ACCOUNTING FOR BUYERS OF MILK AND TO SANCTION THOSE BUYERS WHO DO NOT USE THE SYSTEM; AND TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS CHAPTER.

Ordered for consideration tomorrow.

CONCURRENCE

S. 390 (Word version) -- Senator Hayes: A BILL TO AMEND SECTION 20-7-5010, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ESTABLISHMENT OF CHILDREN'S TRUST FUND, SO AS TO ALLOW THE FUND'S BOARD TO AWARD GRANTS TO PROGRAMS THAT ENHANCE OR PROMOTE THE ADOPTION OF SPECIAL NEEDS CHILDREN IN STATE CUSTODY; SECTION 20-7-5030, RELATING TO THE POWERS AND DUTIES OF THE FUND'S BOARD OF TRUSTEES, SO AS TO ALLOW THE FUND'S BOARD TO ASSESS NEEDS, SOLICIT PROPOSALS, AND AWARD GRANTS TO PROGRAMS THAT ENHANCE OR PROMOTE THE ADOPTION OF SPECIAL NEEDS CHILDREN IN STATE CUSTODY; AND SECTION 20-7-5050, RELATING TO THE LIMITATION ON THE AMOUNT OF CHILDREN'S TRUST FUND REVENUES WHICH MAY BE DISBURSED, SO AS TO REMOVE THIS LIMITATION.

The House returned the Bill with amendments.

On motion of Senator HAYES, the Senate concurred in the House amendments and a message was sent to the House accordingly. Ordered that the title be changed to that of an Act and the Act enrolled for Ratification.

Message from the House

Columbia, S.C., March 4, 2004

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has requested and was granted Free Conference Powers and has appointed Reps. Harrell, McGee and Battle to the Committee of Free Conference on the part of the House on:

H. 3900 (Word version) -- Reps. Harrell, Wilkins, Cato, Keegan, Cooper, Loftis, Altman, Ceips, Clark, Clemmons, Dantzler, Duncan, Haskins, Herbkersman, Hinson, Huggins, Limehouse, Littlejohn, Cobb-Hunter, Mahaffey, Perry, E.H. Pitts, Mack, M.A. Pitts, Richardson, J.H. Neal, Howard, Sandifer, Bales, Simrill, Neilson, Skelton, Owens, J.R. Smith, Snow, Talley, Bailey, Trotter, Umphlett, White, Thompson, Whitmire, Whipper, Witherspoon and Young: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 45 TO TITLE 11 SO AS TO ENACT THE "VENTURE CAPITAL INVESTMENT ACT OF SOUTH CAROLINA" TO PROVIDE FOR THE ESTABLISHMENT OF A FUND SEPARATE AND DISTINCT FROM THE STATE GENERAL FUND IN THE DEPARTMENT OF COMMERCE KNOWN AS THE VENTURE CAPITAL FUND, TO PROVIDE FOR THE MANAGEMENT OF THIS SPECIAL FUND, TO PROVIDE FOR MONIES TO BE OBTAINED BY THE FUND FOR ITS STATED PURPOSES THROUGH LOANS MADE BY CERTAIN LENDERS, TO PROVIDE FOR REPAYMENTS TO LENDERS, AND TO PROVIDE THAT LENDERS SHALL RECEIVE TAX CREDITS WHICH MAY BE USED AS A CONTINGENT RESOURCE TO MEET PRINCIPAL AND INTEREST PAYMENTS WHEN DUE, TO PROVIDE FOR THE MANNER IN WHICH AND CONDITIONS UNDER WHICH INVESTMENTS FROM THE FUND MAY BE MADE IN VENTURE CAPITAL INVESTMENTS FOR THE BENEFIT OF THIS STATE; TO ESTABLISH THE SOUTH CAROLINA TECHNOLOGY INNOVATION FUND UNDER THE ADMINISTRATION OF THE BOARD OF DIRECTORS OF THE VENTURE CAPITAL FUND AND PROVIDE FOR ITS USES, AND TO PROVIDE THAT ON THE EFFECTIVE DATE OF THIS ACT, THE ASSETS AND LIABILITIES OF THE PALMETTO SEED CAPITAL FUND LIMITED PARTNERSHIP, AS ESTABLISHED IN CHAPTER 44, TITLE 41 OF THE 1976 CODE, ARE TRANSFERRED TO THE SOUTH CAROLINA TECHNOLOGY INNOVATION FUND WITHIN THE SOUTH CAROLINA VENTURE CAPITAL FUND; AND TO REPEAL CHAPTER 44, TITLE 41 RELATING TO THE PALMETTO SEED CAPITAL FUND LIMITED PARTNERSHIP.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., March 4, 2004

Mr. President and Senators:

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

Received as information.

H. 3900--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

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

Senator LEATHERMAN spoke on the report.

On motion of Senator LEATHERMAN, with unanimous consent, Free Conference Powers were granted.

Whereupon, Senators LEATHERMAN, LEVENTIS and O'DELL were appointed to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

On motion of Senator LEATHERMAN, the Report of the Committee of Free Conference to H. 3900 was adopted as follows:

H. 3900--Free Conference Report

The General Assembly, Columbia, S.C., March 4, 2004

The COMMITTEE OF CONFERENCE, to whom was referred:

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

That the same do pass with the following amendments:

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

/ SECTION 1. (A) The proceeds of bonds authorized pursuant to the 'South Carolina Research University Infrastructure Act', codified as Chapter 51 of Title 11 of the 1976 Code are hereby appropriated and authorized to be expended for the purposes and in the manner set forth in that act, including the costs of issuance of such bonds.

(B)The proceeds of bonds authorized pursuant to the amendments to the State General Obligation Economic Development Bond Act, codified as Chapter 41 of Title 11 of the 1976 Code and contained in S.560 of 2004 (ratification number ___) are hereby appropriated and authorized to be expended for the purposes and in the manner set forth in that act, including the costs of issuance of such bonds."

SECTION 2. This act takes effect upon approval by the Governor. /

Amend title to conform.

/s/ Sen. Hugh K. Leatherman       /s/ Rep. Robert W. Harrell, Jr.
/s/ Sen. Phil P. Leventis         /s/ Rep. James G. McGee III
/s/ Sen. William H. O'Dell        /s/ Rep. James A. Battle, Jr.
On Part of the Senate.            On Part of the House.

, and a message was sent to the House accordingly.

Message from the House

Columbia, S.C., March 4, 2004

Mr. President and Senators:

The House respectfully informs your Honorable Body that it has requested and was granted Free Conference Powers and has appointed Reps. McGee, Harrell and Battle to the Committee of Free Conference on the part of the House on:

S. 560 (Word version) -- Senators Leatherman, Ritchie, Knotts, Grooms, Verdin, Giese, Branton, Mescher, McConnell, McGill, J. Verne Smith, Alexander, Martin, Short, Moore, Ravenel, O'Dell, Drummond, Hayes, Setzler and Ford: A BILL TO ENACT THE SOUTH CAROLINA LIFE SCIENCES ACT, BY DEFINING A LIFE SCIENCES FACILITY AND PROVIDING THAT A LIFE SCIENCES FACILITY PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH ANNUAL CASH COMPENSATION AT LEAST ONE HUNDRED FIFTY PERCENT OF AVERAGE PER CAPITA INCOME IN THIS STATE IS ELIGIBLE FOR EMPLOYEE RELOCATION EXPENSE REIMBURSEMENT AND THE WAIVER ALLOWED ON THE LIMIT FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, TO ALLOW A TAXPAYER OPERATING A LIFE SCIENCES FACILITY TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF REVENUE NOT TO EXCEED FIFTEEN YEARS DURATION FOR ALLOCATION AND APPORTIONMENT FOR PURPOSES OF CORPORATE INCOME TAX, TO AMEND SECTION 12-37-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPRECIATION ALLOWANCE FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCREASE THE ANNUAL DEPRECIATION ALLOWANCE FOR USE OF CLEAN ROOMS FROM TEN TO FIFTEEN PERCENT AND TO PROVIDE A TWENTY PERCENT ANNUAL DEPRECIATION ALLOWANCE FOR MACHINERY AND EQUIPMENT USED FOR MANUFACTURING IN A LIFE SCIENCES FACILITY AND TO DEFINE "LIFE SCIENCES FACILITY", TO AMEND SECTIONS 11-41-20, 11-41-30, AND 11-41-70, RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE ITS FINDINGS, DEFINITIONS, AND NOTICE REQUIREMENTS TO ALLOW SUCH BONDS TO BE USED FOR INFRASTRUCTURE FOR A LIFE SCIENCES FACILITY IN A PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH AN ANNUAL CASH COMPENSATION AT LEAST TWICE PER CAPITA INCOME IN THE STATE AND PROVIDE THAT, WHILE INFRASTRUCTURE PROVIDED BY THESE BONDS MUST RELATE SPECIFICALLY TO THE PROJECT, SUCH INFRASTRUCTURE IS NOT REQUIRED TO BE LOCATED AT THE PROJECT, AND TO AMEND SECTION 11-41-120, RELATING TO FORMALITIES IN THE ISSUING OF THESE BONDS, SO AS TO REVISE THESE REQUIREMENTS.
Very respectfully,
Speaker of the House

Received as information.

Message from the House

Columbia, S.C., March 4, 2004

Mr. President and Senators:

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

Received as information.

S. 560--FREE CONFERENCE POWERS GRANTED
FREE CONFERENCE COMMITTEE APPOINTED
REPORT OF THE COMMITTEE
OF FREE CONFERENCE ADOPTED

Senator LEATHERMAN was recognized to give a status report regarding the work of the Committee of Conference.

Senator RYBERG was recognized.

Senator LEATHERMAN moved that Free Conference Powers be granted.

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

Ayes 40; Nays 5

AYES

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

Total--40

NAYS

Giese                     Gregory                   Kuhn
Ryberg                    Sheheen

Total--5

*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 necessary two-thirds vote having been received, Free Conference Powers were granted.

Whereupon, Senators LEATHERMAN, LEVENTIS and O'DELL were appointed to the Committee of Free Conference on the part of the Senate and a message was sent to the House accordingly.

Senator LEATHERMAN moved that the Report of the Committee of Free Conference be adopted as follows:

S. 560--Free Conference Report

The General Assembly, Columbia, S.C., March 4, 2004

The COMMITTEE OF CONFERENCE, to whom was referred:

S. 560 (Word version) -- Senators Leatherman, Ritchie, Knotts, Grooms, Verdin, Giese, Branton, Mescher, McConnell, McGill, J. Verne Smith, Alexander, Martin, Short, Moore, Ravenel, O'Dell, Drummond, Hayes, Setzler and Ford: A BILL TO ENACT THE SOUTH CAROLINA LIFE SCIENCES ACT, BY DEFINING A LIFE SCIENCES FACILITY AND PROVIDING THAT A LIFE SCIENCES FACILITY PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH ANNUAL CASH COMPENSATION AT LEAST ONE HUNDRED FIFTY PERCENT OF AVERAGE PER CAPITA INCOME IN THIS STATE IS ELIGIBLE FOR EMPLOYEE RELOCATION EXPENSE REIMBURSEMENT AND THE WAIVER ALLOWED ON THE LIMIT FOR JOB DEVELOPMENT CREDITS FOR PURPOSES OF THE ENTERPRISE ZONE ACT OF 1995, TO ALLOW A TAXPAYER OPERATING A LIFE SCIENCES FACILITY TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF REVENUE NOT TO EXCEED FIFTEEN YEARS DURATION FOR ALLOCATION AND APPORTIONMENT FOR PURPOSES OF CORPORATE INCOME TAX; TO AMEND SECTION 12-37-930, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEPRECIATION ALLOWANCE FOR PURPOSES OF THE PROPERTY TAX, SO AS TO INCREASE THE ANNUAL DEPRECIATION ALLOWANCE FOR USE OF CLEAN ROOMS FROM TEN TO FIFTEEN PERCENT AND TO PROVIDE A TWENTY PERCENT ANNUAL DEPRECIATION ALLOWANCE FOR MACHINERY AND EQUIPMENT USED FOR MANUFACTURING IN A LIFE SCIENCES FACILITY AND TO DEFINE "LIFE SCIENCES FACILITY"; TO AMEND SECTIONS 11-41-20, 11-41-30, AND 11-41-70, RELATING TO THE STATE GENERAL OBLIGATION ECONOMIC DEVELOPMENT BOND ACT, SO AS TO REVISE ITS FINDINGS, DEFINITIONS, AND NOTICE REQUIREMENTS TO ALLOW SUCH BONDS TO BE USED FOR INFRASTRUCTURE FOR A LIFE SCIENCES FACILITY IN A PROJECT IN WHICH IS INVESTED AT LEAST ONE HUNDRED MILLION DOLLARS AND AT WHICH AT LEAST TWO HUNDRED NEW JOBS ARE CREATED WITH AN ANNUAL CASH COMPENSATION AT LEAST TWICE PER CAPITA INCOME IN THE STATE AND PROVIDE THAT, WHILE INFRASTRUCTURE PROVIDED BY THESE BONDS MUST RELATE SPECIFICALLY TO THE PROJECT, SUCH INFRASTRUCTURE IS NOT REQUIRED TO BE LOCATED AT THE PROJECT; AND TO AMEND SECTION 11-41-120, RELATING TO FORMALITIES IN THE ISSUING OF THESE BONDS, SO AS TO REVISE THESE REQUIREMENTS.

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

That the same do pass with the following amendments:

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

/ SECTION 1. (A) This section may be cited as the South Carolina Life Sciences Act.

(B) For purposes of this section, a "life sciences facility" means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(1) 3254 Pharmaceutical and Medical Manufacturing;

(2) 334516 Analytical Laboratory Instrument Manufacturing.

(C)(1) For all purposes of Chapter 10, Title 12 of the 1976 Code, the Enterprise Zone Act of 1995, including all definitions applicable to that chapter:

(a) Employee relocation expenses that qualify for reimbursement pursuant to Section 12-10-80(C)(3)(f) of the 1976 Code include such expenses associated with a new or expanded life sciences facility investing a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8) of the 1976 Code, and creating at least two hundred new full-time jobs at the project with an average annual cash compensation of at least one hundred fifty percent of annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled.

(b) The waiver that may be approved by the Coordinating Council for Economic Development pursuant to Section 12-10-80(D)(2) of the 1976 Code on maximum job development credits that may be claimed also may be approved for a life sciences facility meeting the requirements of subitem (a) of this subsection. In determining whether to approve a waiver for such a facility, the Coordinating Council for Economic Development shall consider the creditworthiness of the business and economic viability of the project, as defined in Section 12-10-30(8) of the 1976 Code.

(2) The provisions of item (1) of this subsection apply with respect to capital investment made and new jobs created after June 30, 2004, and before July 1, 2008.

(D) In the case of a taxpayer establishing a life sciences facility meeting the requirements of subsection (C)(1)(a) of this section, the South Carolina Department of Revenue, in its discretion, may enter into an agreement with the taxpayer pursuant to Section 12-6-2320 of the 1976 Code for a period not to exceed fifteen years if the facility otherwise meets the requirements of that section.

SECTION 2. A. Section 12-37-930 34. of the 1976 Code, as last amended by Section 3(Q)2, Act 399 of 2000, is further amended to read:

"34. Use of Clean Rooms ......................................... ~~10%~~ 15%

A manufacturer who uses a Class 100 or better clean room, as that term is defined in Federal Standard 209E, in manufacturing its product may elect an annual allowance for depreciation for property tax purposes of ~~ten~~ fifteen percent on clean room modules and associated mechanical systems, and on process piping, wiring environmental systems, and water purification systems associated with the clean room instead of a depreciation allowance for which the manufacturer otherwise is entitled. Included are waffle flooring, wall and ceiling panels, foundation improvements that isolate the clean room to control vibrations, clean air handling and filtration systems, piping systems for fluids and gases used in the manufacturing process and in the clean room that touch the product during the process, flat panel displays, and liquid crystal displays, process equipment energy control systems, ultra pure water processing and wastewater recycling systems, and safety alarm and monitoring systems.

35. Life sciences.................................................. 20%

Includes machinery and equipment used directly in the manufacturing process by a life sciences facility. For purposes of this item, life sciences facility means a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development that invests a minimum of one hundred million dollars in the project, as defined in Section 12-10-30(8), and creates at least two hundred new full-time jobs at the project with an average cash compensation level of at least one hundred and fifty percent of the annual per capita income in this State or the county in which the facility is located, whichever is less. Per capita income must be determined using the most recent per capita income data available as of the end of the taxable year in which the jobs are filled. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i) 3254 Pharmaceutical and Medical Manufacturing;

(ii) 334516 Analytical Laboratory Instrument Manufacturing."
B. In the case of machinery and equipment otherwise eligible for the depreciation allowed pursuant to Section 12-37-930 of the 1976 Code, as amended in subsection A of this section, if the project with which the machinery and equipment is associated is the subject of an inducement agreement between the project sponsor and the county, the initial inducement agreement must have been entered into between these parties after September 1, 2003.

SECTION 3. A. Section 11-41-20(3) of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"(3) In order to foster economic development and to encourage the creation of high-paying jobs in the life sciences industry within the State, it is in the best interests of the State that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to five and one-half percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure required for significant economic development projects within the State, including those related to the life sciences industry that create high-paying jobs and meet certain investment criteria."
B. Items (2) and (3) of Section 11-41-30 of the 1976 Code, as added by Act 254 of 2002, are amended to read:

"(2)(a) 'Economic development project' or 'project' means a project in this State as defined in Section 12-44-30(16) in which a total of at least four hundred million dollars is invested in the project by the sponsor and at least four hundred new jobs are created at the project by the sponsor. To qualify as an economic development project for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(b) 'Project' also includes a life sciences facility in this State defined as a business engaged in pharmaceutical, medicine, and related laboratory instrument manufacturing, processing, or research and development. Included in this definition are the following North American Industrial Classification Systems, NAICS Codes published by the Office of Management and Budget of the federal government:

(i) 3254 Pharmaceutical and Medical Manufacturing;

(ii) 334516 Analytical Laboratory Instrument Manufacturing.

With respect to a life sciences facility, the sponsor must invest in the project at least one hundred million dollars and create at the project at least two hundred new jobs with an average annual cash compensation level of at least twice the annual per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter.

(c) To qualify as an economic development project as defined in subsections (a) and (b) above for purposes of this chapter, the investment and job creation requirements must be attained no later than the eighth year after the project first begins operations.

(d) 'Economic development project' or 'project' also includes training and research facilities and the necessary equipment therefor, owned by the State or any agency, instrumentality, or political subdivision thereof, for a program established pursuant to Section 59-53-425, for purposes of providing the necessary trained personnel to support the state's economically vital tourism industry. A project as defined in this subsection is also referred to herein as a 'tourism training infrastructure project'. A tourism training infrastructure project is not subject to the job creation and capital investment requirements imposed on projects as defined in subsections (a) and (b) above.

(e) 'Economic development project' or 'project' also includes a national and international convention and trade show center in this State, owned by the State or any agency, instrumentality, or political subdivision thereof. A 'national and international convention and trade show center' means a not less than two hundred thousand square foot facility consisting of meeting and exhibit space at which are held major conventions, trade shows, and special events that bring delegates into the State and community including, but not limited to, consumer shows, sporting events, and other meetings. A national and international convention and trade show center is not subject to the job creation and capital investment requirements imposed on projects as defined in subsections (a) and (b) above.

(3) 'Infrastructure' must relate specifically to, but is not required to be located at, the economic development project and means:

(a) land acquisition;

(b) site preparation;

(d) rail spur construction;

(e) water service;

(f) wastewater treatment;

(g) employee training which may include equipment used for such purpose;

(h) environmental mitigation; ~~and~~

(i) training and research facilities and the necessary equipment therefor."
C. Section 11-41-70 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-70. Before issuing economic development bonds, the department or in the case of a tourism training infrastructure project or a national and international convention and trade show center, the state agency or political subdivision that will own such project shall notify the Joint Bond Review Committee and the State Budget and Control Board of the following:

(1) the amount then required for allocation to the department or to such state agency or political subdivision to defray the costs of the proposed infrastructure;

(2) a description of the infrastructure for which the bonds are to be issued, including a certification by the secretary of the department that ~~each~~ the economic development project to benefit from the expenditure of the proceeds of the bonds consists of the following:

(a) in the case of an economic development project as defined in Section 11-41-30(2)(a), an investment ~~in the State~~ at the project of not less than four hundred million dollars and ~~creates~~ creation at the project of no fewer than four hundred new jobs; or

(b) in the case of a life sciences facility, an investment in the project of not less than one hundred million dollars and creation at the project of no fewer than two hundred new jobs with an average cash compensation of at least twice the per capita income in this State. Per capita income must be determined by using the most recent per capita income data available at the time the request for funding is made pursuant to this chapter; or

(c) in the case of a tourism training infrastructure project, training and research facilities including the necessary equipment therefor, owned by the State or any agency, instrumentality, or political subdivision thereof, for a program established pursuant to Section 59-53-425, for which project there has been executed an agreement between the State and the state agency owning such facilities providing that, upon the termination of the program established pursuant to Section 59-53-425, the proceeds of the sale of any facilities financed with the proceeds of bonds issued pursuant to this chapter will be reimbursed by such state agency to the general fund of the State; or

(d) in the case of a national and international convention and trade show center, partial payment of land acquisition costs for a meeting and exhibit space as defined in Section 11-41-30(2)(e), owned by the State or any agency, instrumentality, or political subdivision thereof for which project there has been executed an agreement between the State and the state agency or political subdivision owning such land providing that, upon either the sale of the land acquired with proceeds of bonds issued pursuant to this chapter or the failure of the state agency or political subdivision to (1) purchase land within eighteen months of the effective date of this item (d), (2) begin construction within five years of the effective date of this item (d) a meeting and exhibit space as defined in Section 11-41-30(2)(e), or (3) complete the project within ten years of the effective date of this item (d), the state agency or political subdivision owning such land will reimburse the amount of bond proceeds to the general fund of the State, plus interest thereon from the date of expenditure to the date of such reimbursement at a rate equal to the total interest cost rate on the issuance of bonds used to make such expenditure. The state agency or political subdivision must notify the State Treasurer immediately upon the sale of any land acquired with proceeds of bonds issued pursuant to this chapter. The state agency or political subdivision must also provide sufficient proof to the State Treasurer that the deadlines to purchase land, begin construction, and complete the project imposed pursuant to this item have been met. If the state agency or political subdivision sells the land or fails to meet any of these deadlines, then the State Treasurer shall take the appropriate action necessary to recover all bond proceeds and interest disbursed to the state agency or political subdivision to finance the project.

(3) a tentative time schedule setting forth the period of time during which the sum requested is to be expended;

(4) a debt service table showing the annual principal and interest requirements for all bonds then outstanding; and

(5) the total amount of all bonds issued."
D. Section 11-41-120 of the 1976 Code, as added by Act 254 of 2002, is amended to read:

"Section 11-41-120. All bonds issued under this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, ~~and~~ State Treasurer, and Secretary of State may sign these obligations by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon each of them ~~and each must be attested by the Secretary of State~~. The delivery of the bonds executed and authenticated, as provided in the resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication."
E. Chapter 41, Title 11 of the 1976 Code is amended by adding:

"Section 11-41-180. All procurements of infrastructure, as defined in Section 11-41-30 and owned by a research university, as defined in Section 11-51-30(5), shall be exempt from Title 11, Chapter 35, except that such research university must work in conjunction with the Budget and Control Board's Chief Procurement Officer to establish alternative procurement procedures. The research university shall submit its alternative procurement procedures to the State Budget and Control Board for approval. Such procurement process shall include provisions for audit and recertification."

SECTION 4. Beginning January 1, 2005, the Department of Revenue annually shall report to the Joint Committee on Taxation the revenue impact of this act, and the Department of Commerce annually shall report the cost and benefit of this act, together with the job creation and capital investment made by qualifying businesses.

SECTION 5. Title 11 of the 1976 Code is amended by adding:

"CHAPTER 45
Venture Capital Investment Act of South Carolina

Section 11-45-10. This chapter may be cited as the 'Venture Capital Investment Act of South Carolina'.

Section 11-45-20. The General Assembly desires to increase the availability of equity, near-equity, or seed capital in amounts of one hundred million dollars or more for emerging, expanding, relocating, and restructuring enterprises in the State, so as to help strengthen the state's economic base, and to support the economic development goals of this State as described in the strategic plan of the Department of Commerce to be published annually beginning in 2003. The General Assembly also desires to address the long-term capital needs of small-sized and medium-sized firms, to address the needs of micro enterprises, to expand availability of venture capital, and to increase international trade and export finance opportunities for South Carolina based companies.

Section 11-45-30. For purposes of this chapter:

(1) 'Authority' means the South Carolina Department of Commerce.

(2) 'Certificate' means a document executed by the fund verifying a tax credit for any year to which a lender is entitled.

(3) 'Equity, near-equity, or seed capital' means capital invested in common or preferred stock, debt with equity conversion rights, royalty rights, limited partnership interests, limited liability company interests, and any other securities or rights that evidence ownership in private business.

(4) 'Fund' means the South Carolina Venture Capital Fund.

(5) 'Investor' means any corporation, limited liability company, community development corporation, or unincorporated business entity, including a general or limited partnership, that is selected by the fund to receive investments from the fund and then make venture capital investments therewith that meet the requirements of this chapter. An investor or a senior member of its management team must be a legal resident of this State and have a minimum of five years' experience in venture capital investing. In addition, substantially all of an investor's business activity shall be venture capital investing.

(6) 'Innovation fund' means the South Carolina Technology Innovation Fund.

(7) 'Person' means any individual, corporation, partnership, or other lawfully organized entity.

(8) 'Research and development' means laboratory, scientific, or experimental testing and development related to new products, new uses for existing products, or improvements to existing products. Research and development also includes intellectual property, information technology, or technology transfer endeavors. The term does not include efficiency surveys, management studies, consumer surveys, economic surveys, advertising, or promotion, or research in connection with literary, historical, or similar projects.

(9) 'Tax credit' means a credit against a lender's bank tax liability pursuant to Chapter 11, Title 12, or insurance premium tax liability pursuant to Chapter 7, Title 38 or other tax liability under Title 38, as the case may be, or in the case of a repeal or reduction by the State of the tax liability imposed by these sections, any other tax imposed upon such a lender by this State.

(10) 'Venture capital' means equity, near-equity, and seed capital financing including, without limitation, early stage research and development capital for startup enterprises, and other equity, near-equity, or seed capital for growth and expansion of entrepreneurial enterprises.

(11) 'Lender' means a banking institution subject to the income tax on banks under Chapter 11 of Title 12, insurance and insurance companies subject to a state premium tax liability under Chapter 7 of Title 38, and a captive insurance company regulated under Chapter 90 of Title 38.

(12) 'Capital commitment' means the amount of money committed by the fund to an investor for a term of up to ten years, which term may be extended to provide for an orderly liquidation of the investor's portfolio investments.

(13) 'Community development corporation' is as defined in Section 34-43-20(2).

Section 11-45-40. (A) There is created, within the authority, a separate and distinct fund to be an independent instrumentality exercising essential public functions, and to be known as the 'fund' as defined in Section 11-45-30(4).

(B)(1) The fund must be governed by a board composed of seven directors one of whom must be appointed by the Speaker of the House of Representatives, one of whom must be appointed by the Chairman of the House Ways and Means Committee, one of whom must be appointed by the President Pro Tempore of the Senate, one of whom must be appointed by the Chairman of the Senate Finance Committee, and three of whom must be appointed by the Governor, one of whom shall serve as chairman. No sitting member of the General Assembly may be appointed to serve on the board in any capacity including an ex officio capacity. Directors must be selected based upon outstanding knowledge and leadership, must be knowledgeable in the management of money and finance, and must possess experience in the management of investments similar in nature and in value to those of the fund. Directors serve for a term of office of four years and until their successors are appointed and qualify, except that of the initial directors appointed, the member appointed by the Speaker of the House of Representatives shall serve for an initial term of two years, the members appointed by the President Pro Tempore of the Senate shall serve for an initial term of two years, and one member appointed by the Governor shall serve for an initial term of two years so as to allow the terms of the directors to be staggered.

(2) The directors have the authority to govern the fund in accordance with the requirements of this chapter.

(3) A conflict of interest is considered to exist if a director of the fund, an officer, agent, or employee thereof, or any for-profit firm or corporation in which a director, officer, agent, or employee of the fund, or any member of his immediate family, as defined in Section 2-17-10(7), is an officer, partner, or principal stockholder engages in business activity with the fund either directly or indirectly in which the director, officer, agent, employee, or firm would personally benefit. In this case, the director, officer, agent, or employee shall refrain from any involvement of any type in regard to the activity including, but not limited to, discussing the proposed activity with another person associated with the entity desiring to engage in the activity with the fund, negotiating any aspects of the proposed activity with the fund, voting on any matter pertaining to the activity, and communicating with other board members, officers, agents, or employees of the fund concerning the activity. When a conflict arises, the director, officer, agent, or employee involved in the conflict, at the discretion of the board, shall resolve the conflict or resign from the position creating the conflict. Directors, officers, agents, and employees of the fund are subject to all provisions of Chapter 17, Title 2 and Chapter 13, Title 8, and the provisions of this item are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

(C) The fund must be located within the Department of Commerce and is separate and distinct from the state general fund. The monies deposited in the accounts of the fund must be managed and invested by the directors with the assistance, if necessary, of professionals in the area of financial management and selected by a process as determined by the board of directors.

Section 11-45-50. (A) The fund must seek capital commitments to the fund in accordance with procedures approved by the State Budget and Control Board. The fund may retain an amount annually not to exceed one percent of the capital commitments received for expenses incurred by the fund. Capital contributions received by the fund must be in cash or in immediately available funds and are to be used only as provided by this chapter.

(B) The fund shall retain any fees earned after repayment to lenders to use as a contingency fund for future obligations to lenders and to fulfill additional capital commitments. If at any time a principal or interest payment is due and the fund has insufficient monies to repay same, the fund shall issue tax credit certificates in an amount to meet the obligation as provided for below, and tax credits as stipulated in subsection (C) are hereby established in these required amounts.

(C) These tax credits may be used to offset the lenders' state bank tax or premium tax liability in the event the fund does not meet its obligation to repay the lenders' cash investment together with required interest at the date and time the payment is due. These tax credits may be carried forward without limitation but are not refundable.

(D) The tax credits may also be transferred among bank or insurance company lenders for consideration, and then used by the subsequent holder. These tax credits shall take the form of a certificate issued by the board of the fund stating the amounts, year, and conditions of the tax credits reflected on the certificate.

(E) The board in accepting loans to the fund giving rise to these tax credits shall ensure that no more than fifty million dollars in total tax credit certificates are issued and outstanding at any one time with no more than twenty million dollars in tax credit certificates being redeemable for any one year. Any tax credit certificates issued in one year but carried forward and redeemed in a subsequent year do not count against the twenty million dollar limitation on the total amount of tax credit certificates which may be redeemed in that subsequent year.

(F) The fund is authorized to use the proceeds of loans received from lenders, together with other available monies, for making investments with venture capital investors and for paying and funding services as necessary.

(G) No part of the fund may inure to the benefit of or be distributed to its employees, officers, or board of directors, or to members of their immediate families as this term is defined in Section 2-17-10(7), except that the fund is authorized to pay reasonable compensation for services provided by employees of the fund and out-of-pocket expenses incurred by its employees, officers, or board members, as long as such compensation does not create a conflict of interest pursuant to Section 11-45-40. The provisions of this subsection are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.

Section 11-45-60. The fund shall solicit from investors plans for the investing of capital in the fund in accordance with the requirements of this chapter. The fund shall consider and select the investment plans and shall select investors qualified to:

(1) make the most effective and efficient utilization of the investment; and

(2) invest in venture capital investments, requiring equity, near-equity, or seed capital which promote the economic development goals of this State as described in the strategic plan of the Department of Commerce adopted and published as of that date.

Section 11-45-70. In order for the board of directors of the fund to place monies of the fund with an investor for the purpose of making a venture capital investment, the following requirements must be met:

(1) No investment by an investor in any one investment may exceed five million dollars or fifteen percent of the committed capital of the investor, whichever is less. In addition, an investor must agree to invest at least an amount equal to the fund's capital commitment to such investor in South Carolina based companies.

(2)(a) While the board of directors of the fund shall give preference to investors, otherwise qualified, that maintain either a headquarters or an office staffed by an investment professional in South Carolina, investments may be made with investors not principally located in South Carolina; provided, that the investors are otherwise qualified under this chapter and have other venture capital investments in South Carolina or in South Carolina based companies at least equal to the total amount of monies placed with that investor by the fund.

(b) 'South Carolina based companies' for purposes of this section means any corporation, limited liability company, community development corporation or unincorporated business organization, including a general or limited partnership, that has its principal place of business located in this State and has at least fifty percent of its gross assets and fifty percent of its employees located in this State at the time of the initial investment. If a corporation, limited liability company, or unincorporated business organization is a member of an affiliated group, the gross assets and the number of employees of all of the members of the affiliated group, wherever those assets and employees are located, shall be included for the purpose of determining the percentage of the corporation's, company's, or organization's gross assets and employees located in this State.

(3) When selecting investors with which to place the fund's venture capital investments, the board of directors shall give preference to investors that have on or before the date of the fund's capital commitment, aggregate capital commitments of at least three times the amount of the fund's capital commitment. An investor's capital commitments for purposes of this requirement include private, federal, or other nonstate funds secured by the investor.

(4) Investors must develop a repayment plan based on expected liquidity events of its portfolio investments. All repayments must occur within ten years, subject to extension as described in Section 11-45-30(12).

(5) No investment may violate the provisions of Section 11, Article X of the Constitution of this State.

Section 11-45-80. In addition to and apart from the other duties and functions of the fund, there is created under the administration of the board of directors of the fund, another fund entitled the South Carolina Technology Innovation Fund which shall receive that funding as may be provided by law. The board shall contract with a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, for administration of the Innovation Fund.

The Innovation Fund must be used by the board to:

(1) award small grants for the best and most creative ideas from South Carolina research universities' technology incubators with the awards to be available for eligible students and innovative knowledge-based enterprises that are located in a research university incubator. These grants are to be awarded to inspire and encourage knowledge-based technology and intellectual property transfers from research university faculty and students to the marketplace;

(2) design a major education, marketing, and public relations program to ensure that residents of South Carolina, members of the General Assembly, and potential venture capital investors understand and support the requirements for participation in the fund, the strategic need for venture capital funding, and for grant support for deserving entrepreneurs.

Section 11-45-90. (A) The board shall provide loan, investment, tax credit, and expense reports at least quarterly during the fiscal year to the Governor, the General Assembly, and other appropriate officials and entities.

(B) In addition to the quarterly reports provided in subsection (A), the board shall provide an annual report to the Governor, the General Assembly, and other appropriate officials and entities containing at a minimum the following information:

(1) monies from the fund placed in venture capital investments with approved investors cumulatively and during that fiscal year;

(2) the extent of current loan obligations including principal and interest requirements;

(3) the amount and time lines of tax credit certificates issued both cumulatively and during that fiscal year;

(4) a description of a material interest held by a director, officer, or employee of the fund with respect to the investments or assets of the fund;

(5) a schedule of the rates of return, net of total investment expense, on assets of the fund overall and on assets aggregated by category over the most recent one-year, three-year, five-year, and ten-year periods, to the extent available; and

(6) a schedule of the sum of total investment expense and total general administrative expense for the fiscal year expressed as a percentage of the fair value of assets of the fund on the last day of the fiscal year, and an equivalent percentage for the preceding five fiscal years, if applicable.

Section 11-45-100. The fund has the power to promulgate regulations and make a contract, execute a document, perform an act, or enter into a financial or other transaction necessary to implement this chapter."

SECTION 6. Upon certification to the Secretary of State by the President of the Palmetto Seed Capital Corporation that the remaining investments of the private sector limited partners of the Palmetto Seed Capital Fund Limited Partnership have been liquidated, Chapter 44 of Title 41 of the 1976 Code is repealed, and any remaining public assets and liabilities of the Palmetto Seed Capital Corporation shall be transferred to the South Carolina Venture Capital Fund herein created.

SECTION 7. Sections 59-101-10 through 59-101-410 of the 1976 Code are designated as Article 1, General Provisions.

SECTION 8. Chapter 101, Title 59 of the 1976 Code is amended by adding:

"Article 3
Public Institutions of Higher Learning

"Section 59-101-710. A public institution of higher learning may spend federal and other nonstate appropriated sources of revenue to provide lump-sum bonuses at levels outlined in a plan approved by the governing body of the respective public institution of higher learning and according to guidelines established in the plan. The public institution of higher learning must maintain documentation to show that the use of federal funds for this purpose is in compliance with federal law. This payment is not a part of the employee's base salary and is not earnable compensation for purposes of employee and employer contributions to the respective retirement systems.

Section 59-101-720. A public institution of higher learning may offer educational fee waivers to no more than four percent of the total student body.

Section 59-101-730. Notwithstanding any other provision of law, and in recognition and support of the opportunities for economic development presented through the expansion of research activities, a public institution of higher learning may establish research grant positions funded by federal grants, public charity grants, private foundation grants, research grants, medical school practice plans, individual private gifts, externally generated revenue for service or testing activities, and grant generated revenue or a combination of these, without regard to the authorized number of full-time equivalency (FTE) positions allocated to the public institution of higher learning, provided that:

(1) state funds must not be used to fund any portion of research grant positions. FTE positions funded solely or partially by state or other funding sources shall remain subject to the number of FTE positions authorized for each public institution of higher learning;

(2) research grant positions shall not occupy FTE positions;

(3) research grant positions may be established using other funds during the proposal development or pre-award stages of grant funding in anticipation of specific grant or project funding;

(4) research grant positions may be established for multiple years; however, research grant positions are limited to and may not exist beyond the duration of the funding for the project or grant or any subsequent renewal. At the discretion of the public institution of higher learning other funds may be used to fund continued employment between the expiration of one grant and the subsequent renewal of the same or similar grant or the award of an additional grant. When funding for the project or grant ends or is insufficient to continue payments under the conditions of the project or grant, research grant employees must be terminated and these positions must cease to exist. Research grant employees are exempt from the provisions of Sections 8-17-310 through 8-17-380;

(5) persons occupying research grant positions may be eligible for all benefits, not to exceed those benefits available to covered state employees, provided that funds are available within the grant or project or by use of grant-generated revenue;

(6) persons occupying research grant positions are employed at-will and do not have grievance rights afforded to covered state employees or faculty of the respective public institution of higher learning. Research grant employees are not entitled to compensation beyond the date of termination, other than for the part of the project or grant that has been performed; and

(7) discretionary determinations by a public institution of higher learning as to whether to hire an employee pursuant to this section are final and not subject to administrative or judicial appeal.

Section 59-101-740. A public institution of higher learning may offer and fund, from any source of revenue, health insurance to full-time graduate assistants according to a plan approved by the governing body of the respective public institution of higher learning.

Section 59-101-750. The board of trustees of a public institution of higher learning is vested with the power of eminent domain. The authority granted in this section applies only to private lands. The lands condemned must be used by the public institution of higher learning in the performance of its functions in the acquisition, construction, and operation of facilities for the public institution of higher learning, and is subject to the approval of the State Budget and Control Board.

Section 59-101-760. A public institution of higher learning may negotiate for its annual audit and quality review process with reputable certified public accountant firms selected from a list preapproved by the State Auditor's office."

SECTION 9. Title 11 of the 1976 Code is amended by adding:

"CHAPTER 51
South Carolina Research University Infrastructure Act

Section 11-51-10. This chapter may be cited as the 'South Carolina Research University Infrastructure Act'.

Section 11-51-20. The General Assembly finds:

(1) That by Section 4, Act 10 of 1985, the General Assembly ratified an amendment to Article X, Section 13(6)(c), of the Constitution of this State, 1895. As amended, Article X, Section 13(6)(c) limits the issuance of certain general obligation debt of the State such that the maximum annual debt service on general obligation bonds of the State, excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, may not exceed five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.

(2) Article X, Section 13(6)(c), as amended, further provides that the percentage rate of general revenues of the State by which general obligation bond debt service is limited may be reduced to four or increased to seven percent by legislative enactment passed by two-thirds vote of the total membership of the Senate and a two-thirds vote of the total membership of the House of Representatives.

(3) That pursuant to Article X, Section 13(6)(c), the General Assembly, in Act 254 of 2002, increased to five and one-half percent the percentage rate of the general revenues of the State by which general obligation bond debt service is limited with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation bonds issued to provide infrastructure for economic development within the State.

(4) Facility and infrastructure constraints prevent the advancement of research projects as well as restrict the ability of the research universities, as defined in Section 11-51-30, to retain faculty and generate research dollars. A dedicated source of funds to repay general obligation debt authorized pursuant to this chapter would provide a consistent funding stream for capital improvements at the research universities and allow for improved planning of capital expenditures to meet the mission of the research universities.

(5) In order to advance economic development and create a knowledge based economy, thereby increasing job opportunities, and to facilitate and increase research within the State at the research universities, it is in the interest of the State that, pursuant to Article X, Section 13(6)(c), that the limitation on general obligation debt imposed by Article X, Section 13(6)(c) be increased to six percent with the additional debt service capacity available at any time as a consequence of the increase available only for the repayment of general obligation debt issued pursuant to the provisions of this chapter.

(6) That Article X, Section 13(5) of the Constitution of this State, 1895, authorizes the General Assembly to authorize general obligation debt by two-thirds vote of the members of each House of the General Assembly, subject to such conditions or restrictions limiting the incurring of such indebtedness contained in the authorization to incur such indebtedness, and the provisions of Article X, Section 13(3) of the Constitution of this State.

(7) That Article X, Section 13(5) provides additional constitutional authority for the bonds authorized by this chapter and the designated principal amount of general obligation bonds to be issued pursuant to the debt limit as it existed prior to this chapter.

Section 11-51-30. As used in this chapter:

(1) 'Facilities and administration costs' means depreciation and use allowances, interest on debt associated with buildings, equipment and capital improvements, operation and maintenance expenses, library expenses, general administration expenses, departmental administration, sponsored projects administration, and student administration and services.

(2) 'General obligation debt' means any indebtedness of the State which must be secured in whole or in part by a pledge of the full faith, credit and taxing power of the State, including, but not limited to, bonds, notes and other evidences of indebtedness, and issued pursuant to the provisions of this chapter.

(3) 'Research Centers of Excellence Review Board' means the board created pursuant to Section 2-75-10.

(4) 'Research infrastructure project' or 'project' means a project that would advance economic development and create a knowledge based economy, thereby increasing job opportunities, or facilitate and increase externally funded research at the research universities, including, but not limited to, land acquisition, acquisition or construction of buildings, equipment, furnishings, site preparation, road and highway improvements, water and sewer infrastructure, and other things necessary or convenient to advance economic development or to facilitate and increase research at the research universities.

(5) 'Research universities' means Clemson University, The Medical University of South Carolina, and the University of South Carolina - Columbia.

(6) 'State Board' means the South Carolina State Budget and Control Board.

Section 11-51-40. To obtain funds for allocation to the research universities for the financing of research infrastructure projects, and for the other purposes set forth in Section 11-51-125, there may be issued general obligation debt pursuant to the conditions prescribed by this chapter; provided, however, that the amount of the general obligation debt issued pursuant to this chapter that may be outstanding at any one time shall not exceed two hundred fifty million dollars.

Section 11-51-50. (A) Pursuant to the provisions of Article X, Section 13(6)(c) of the Constitution of this State, 1895, as amended, and by enactment of this chapter, the General Assembly provides that general obligation debt may be issued pursuant to this chapter only at such times as the maximum annual debt service on all general obligation bonds of the State, including economic development bonds and bonds issued pursuant to this chapter, outstanding and being issued, but excluding highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, will not exceed six percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds. The State may not issue general obligation bonds, excluding economic development bonds and bonds authorized pursuant to this chapter, highway bonds, state institution bonds, tax anticipation notes, and bond anticipation notes, if at the time of issuance the maximum annual debt service on these general obligation bonds, outstanding and being issued, exceeds five percent of the general revenues of the State for the fiscal year next preceding, excluding revenues that are authorized to be pledged for state highway bonds and state institution bonds.

(B) At the time of issuance of general obligation debt pursuant to this chapter, the maximum annual debt service on such general obligation debt outstanding or being issued must not exceed one-half of one percent of the general revenues of this State for the fiscal year next preceding, excluding revenues which are authorized to be pledged for state highway bonds and state institution bonds.

(C) With respect to the first eight hundred fifty million dollars in principal amount of general obligation bonds issued after the effective date of this chapter within the debt service constraints set forth in subsections (A) and (B) of this section, the General Assembly provides additional constitutional authorization for such bonds pursuant to Article X, Section 13(5) of the Constitution of this State, 1895.

Section 11-51-60. In the event a research infrastructure project is used for a purpose other than as approved by the Research Centers of Excellence Review Board pursuant to Section 11-51-80(2), the research university for which the research infrastructure project was originally established shall reimburse the State a percentage of debt service on the general obligation debt issued to finance the debt, the percentage to be equal to the percentage of the research infrastructure project which is used for an unapproved purpose. Amounts reimbursed to the State pursuant to this section must be applied, as directed by the State Board, to the debt service on the applicable general obligation debt, either currently or by way of defeasance, or to the general fund of the State.

Section 11-51-70. As a condition precedent to the issuance of general obligation debt pursuant to the provisions of this chapter, the Research Centers of Excellence Review Board shall certify to the State Board that at least fifty percent of the cost of each research infrastructure project is being provided by private, federal, municipal, county or other local government sources. This portion of the cost, in the discretion of the Research Centers of Excellence Review Board, may be in the form of cash; cash equivalent; buildings including sale-lease back; gifts in kind including, but not limited to, land, roads, water and sewer, and maintenance of infrastructure; facilities and administration costs; equipment; or furnishings.

Section 11-51-80. Before the issuance of general obligation debt, the Research Centers of Excellence Review Board shall provide the Joint Bond Review Committee and the State Board the following:

(1) a description of each research infrastructure project for which general obligation debt is requested to be issued;

(2) a certification by the Research Centers of Excellence Review Board that the provisions of Section 11-51-70 have been met, that the source of funding has been identified, and that each research infrastructure project complies with the provisions of this chapter ;

(3) the total cost of each research infrastructure project and the principal amount of general obligation debt requested to be issued;

(4) a tentative time schedule setting forth the period of time during which the proceeds of the general obligation debt requested to be issued will be expended;

(5) a debt service schedule showing the annual principal and interest requirements, at a projected current rate of interest, on the requested general obligation debt;

(6) the total amount of the general obligation debt issued pursuant to this chapter; and

(7) a debt service schedule showing the principal and interest requirements for the general obligation debt outstanding and the proposed general obligation debt at a projected current rate of interest.

Section 11-51-90. The principal amount of the general obligation debt allocated to research universities pursuant to Section 11-51-125 must be provided to each of the research universities on a competitive basis by the Research Centers of Excellence Review Board.

Section 11-51-100. Following the receipt of the information presented pursuant to Section 11-51-80, and after approval by the Joint Bond Review Committee, the State Board, by resolution duly adopted, shall effect the issuance of general obligation debt, or pending the issuance of the general obligation debt, effect the issuance of general obligation debt anticipation notes pursuant to Chapter 17 of this title.

Section 11-51-110. To effect the issuance of general obligation debt, the State Board shall adopt a resolution providing for the issuance of general obligation debt pursuant to the provisions of this chapter. The authorizing resolution must include:

(1) a schedule showing the aggregate principal amount of general obligation debt issued, the annual principal payments required to retire the general obligation debt, and the interest on the general obligation debt;

(2) the amount of general obligation debt proposed to be issued;

(3) a schedule showing future annual principal requirements and estimated annual interest requirements on the general obligation debt to be issued;

(4) a certificate evidencing that the provisions of Section 11-51-70 of this chapter have been or will be met; and

(5) a certificate of the State Auditor as to the general fund revenues of the State for the fiscal year next preceding, excluding revenues pledged to the payment of State Highway Bonds and State Institution Bonds.

Section 11-51-120. The general obligation debt must bear the date and mature at the time that the State Board resolution provides, except that the general obligation debt may not mature more than thirty years from its date of issue. The general obligation debt may be in the denominations, be payable in the medium of payment, be payable at the place and at the time, and be subject to redemption or repurchase and contain other provisions determined by the State Board before its issue. The general obligation debt may bear interest payable at the times and at the rates determined by the state board.

Section 11-51-125. (A) Of the funds authorized pursuant to this act, public institutions of higher learning as defined in Section 59-103-5, not including research universities, are authorized twelve percent of the total amount authorized under Section 11-51-40. The eligible institutions may only use the funds authorized under this subsection for deferred maintenance projects. The twelve percent authorized for the institutions, not including research universities, must be allocated by the Commission of Higher Education to eligible institutions as follows:

(1) Sixty five percent of the total twelve percent must allocated based on a reported deferred maintenance needs list from each eligible institutions; and

(2) Thirty five percent of the total twelve percent must be allocated by FTE student enrollment from the prior academic year at each eligible institution.

The Research Centers of Excellence Review Board has no jurisdiction over these projects and no matching requirement is imposed for these projects. The Joint Bond Review Committee and the State Budget and Control Board must approve all projects.

(B)(1) After the aggregate total of bonds issued pursuant to this chapter equals two hundred and fifty million dollars, all further proceeds of bonds authorized pursuant to this chapter must be authorized as follows:

(a) Eighty eight percent for the research universities in the manner and for the purposes provided pursuant to this chapter;

(b) Twelve percent to public institutions of higher learning as defined in Section 59-103-5, not including the research universities, for deferred maintenance projects allocated as follows:

(i) one-half for the state's ten comprehensive teaching universities distributed among them as provided in item (2) of this subsection; and

(ii) one-half for the state's two year and technical colleges distributed among them as provided in item (2) of this subsection.

(2) The Commission on Higher Education shall distribute amounts allocated pursuant to item (1)(b)(i) and (ii) of this subsection among the two categories of eligible institutions as follows:

(a) thirty five percent in equal shares to each eligible institution; and

(b) sixty-five percent based on FTE student enrollment from the prior academic year at eligible institutions.

(3) The Research Centers of Excellence Review board has no jurisdiction over projects funded by bonds issued pursuant to item (1)(b) of this subsection and no matching requirement is imposed for these projects. All projects must be approved by the Joint Bond Review Committee and the State Budget and Control Board.

Section 11-51-130. General obligation debt issued pursuant to this chapter is exempt from taxation as provided in Section 12-2-50.

Section 11-51-140. General obligation debt issued pursuant to this chapter must be signed by the Governor and the State Treasurer and attested by the Secretary of State. The Governor, State Treasurer, and Secretary of State may sign the general obligation debt by a facsimile of their signatures. The Great Seal of the State must be affixed to, impressed on, or reproduced upon the general obligation debt. The delivery of the general obligation debt executed and authenticated, as provided in the State Board resolution, is valid notwithstanding changes in officers or seal occurring after the execution or authentication.

Section 11-51-150. For the payment of the principal of and interest on the general obligation debt issued and outstanding pursuant to this chapter there is pledged the full faith, credit, and taxing power of this State, and in accordance with the provisions of Section 13(4), Article X of the Constitution of this State, 1895, the General Assembly allocates on an annual basis sufficient tax revenues to provide for the punctual payment of the principal of and interest on the general obligation debt authorized by this chapter.

Section 11-51-160. General obligation debt must be sold by the Governor and the State Treasurer upon sealed proposals, after publication of a summary notice of the sale one or more times at least seven days before the sale, in a financial paper published in New York City which regularly publishes notices of sale of state or municipal bonds. The general obligation debt may be awarded upon the terms and in the manner as prescribed by the State Treasurer. The right is reserved to reject bids and to re-advertise the general obligation debt for sale. For the purpose of bringing about successful sales of the general obligation debt, the State Treasurer may do all things ordinarily and customarily done in connection with the sale of state or municipal bonds. Expenses incident to the sale of the general obligation debt must be paid from the proceeds of the sale of the general obligation debt.

Section 11-51-170. The proceeds of the sale of general obligation debt must be received by the State Treasurer and applied by him to the purposes for which issued, but the purchasers of the general obligation debt are in no way liable for the proper application of the proceeds to the purposes for which they are intended.

Section 11-51-180. It is lawful for executors, administrators, guardians, and other fiduciaries to invest monies in their hands in general obligation debt issued pursuant to this chapter.

Section 11-51-190. The research universities while engaging in projects related to this act shall be exempt from the state procurement process, except such research universities must work in conjunction with the Budget and Control Board's Chief Procurement Officer to establish alternate procurement procedures, and must submit a procurement process to the State Commission on Higher Education to be forwarded to the State Budget and Control Board for approval. These processes shall include provisions for audit and recertification.

Section 11-51-200 No provision of this act is intended nor shall any provision of this act be construed to appropriate funds. The intent of the General Assembly is authorizing bonds according to the terms pursuant to this act only."

SECTION 10. (A) Section 2-47-50 of the 1976 Code, as last amended by Act 178 of 1993, is further amended to read:

"Section 2-47-50. The board shall establish formally each permanent improvement project before actions of any sort which implement the project in any way may be undertaken and no expenditure of any funds for any services or for any other project purpose contracted for, delivered, or otherwise provided prior to the date of the formal action of the board to establish the project shall be approved. State agencies and institutions may advertise and interview for project architectural and engineering services for a pending project so long as the architectural and engineering contract is not awarded until after a state project number is assigned. After the committee has reviewed the form to be used to request the establishment of permanent improvement projects and has reviewed the time schedule for considering such requests as proposed by the board, requests to establish permanent improvement projects shall be made in such form and at such times as the board may require.

Any proposal to finance all or any part of any project using any funds not previously authorized specifically for the project by the General Assembly or using any funds not previously approved for the project by the board and reviewed by the committee shall be referred to the committee for review prior to approval by the board.

Any proposed revision of the scope or of the budget of an established permanent improvement project deemed by the board to be substantial shall be referred to the committee for its review prior to any final action by the board. In making their determinations regarding changes in project scope, the board and the committee shall utilize the permanent improvement project proposal and justification statements, together with any supporting documentation, considered at the time the project was authorized or established originally. Any proposal to increase the budget of a previously approved project using any funds not previously approved for the project by the board and reviewed by the committee shall in all cases be deemed to be a substantial revision of a project budget which shall be referred to the committee for review. The committee shall be advised promptly of all actions taken by the board which approve revisions in the scope of or the budget of any previously established permanent improvement project not deemed substantial by the board.

For purposes of this chapter, with regard to all institutions of higher learning, permanent improvement project is defined as:

(1) acquisition of land, regardless of cost;

(2) acquisition, as opposed to the construction, of buildings or other structures, regardless of cost;

(3) construction of additional facilities and work on existing facilities for any given project including their renovation, repair, maintenance, alteration, or demolition in those instances in which the total cost of all work involved is five hundred thousand dollars or more;

(4) architectural and engineering and other types of planning, and design work, regardless of cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and are not to be included;

(5) capital lease purchase of a facility acquisition or construction; and

(6) equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract shall be included as a part of a project.

Any permanent improvement project that meets the above definition must become a project, regardless of the source of funds. However, an institution of higher learning that has been authorized or appropriated capital improvement bond funds, capital reserve fund or state appropriated funds, or state infrastructure bond funds by the General Assembly for capital improvements shall process a permanent improvement project, regardless of the amount."

SECTION 11. Chapter 75, Title 2 of the 1976 Code is amended by adding:

"Section 2-75-90. (A) Notwithstanding the provisions of Sections 2-75-05(B)(4) and (6) and 2-75-50, to meet the endowed professorships matching requirement of those provisions, a research university may use funds specifically provided for use in the areas provided in subsection (B) that are derived from private or federal government sources, excluding state appropriations to the institution, tuition, or fees. Subject to the restrictions in subsection (B), only federal dollars received after July 1, 2003, may be used to meet the endowed professorships matching requirement.

(B) The matching funds in subsection (A) may be used only in the areas of Engineering, Nanotechnology, Biomedical Sciences, Energy Sciences, Environmental Sciences, Information and Management Sciences, and for other sciences and research that create well-paying jobs and enhanced economic opportunities for the people of South Carolina and that are approved by the Research Centers of Excellence Review Board."

SECTION 12. Article 5, Chapter 53, Title 59 of the 1976 Code is amended by adding:

"Section 59-53-425. Notwithstanding any other provision of law, the governing commission of Trident Technical College may establish a four-year culinary curriculum program and award baccalaureate degrees in culinary arts for students graduating from this program. This program must be established pursuant to guidelines established by the State Board for Technical and Comprehensive Education in conjunction with the Commission on Higher Education. However, prior approval of either the State Board for Technical and Comprehensive Education or the Commission on Higher Education to establish this program is not required.

In Fiscal Year 2003-2004 funding for this program shall be provided by the State Board for Technical and Comprehensive Education from existing appropriations for instructional programs or from other sources as determined by the state board, only if any funds are available.

Beginning in Fiscal Year 2004-2005 and thereafter, formula funding for this program shall be provided by the State Board for Technical and Comprehensive Education from appropriations to be determined by the General Assembly in a manner consistent with funding for other similar third and fourth years of baccalaureate degrees."

SECTION 13. Notwithstanding any other provision of law, the University of South Carolina Sumter is authorized to offer four-year degrees at the Sumter campus. The provisions of this section are contingent upon the local governments in USC Sumter's service area providing additional funding for USC Sumter of two hundred-fifty thousand dollars per year. The degree programs as well as a schedule for their implementation must be established by USC Sumter in conjunction with the Commission on Higher Education. Baccalaureate programs available in the Sumter community, through the cooperative agreements with other public higher education institutions, during the 2004-2005 academic year may be developed as USC Sumter academic degree programs without Commission on Higher Education approval.

SECTION 14. No campus of the University of South Carolina shall be closed without prior authorization of the General Assembly by act or joint resolution.

SECTION 15. Any public institution of higher education is required to annually report the number of out-of-state undergraduate students in attendance at the respective University for the fall and spring semester. Each University will also be required to report an out-of-state undergraduate student policy and how that policy was enacted by each University. The report will be required to be submitted to the Governor and each member of the General Assembly no later than September 15 of each year for the latest completed school year.

SECTION 16. Section 59-149-50(A) of the 1976 Code is amended to read:

"(A) To be eligible for a LIFE Scholarship, a student must be either ~~a member of a class graduating~~ a student who has graduated from a high school located in this State, a student who has completed at least three of the final four years of high school within this State, a home school student who has successfully completed a high school home school program in this State in the manner required by law, or a student ~~graduating~~ who has graduated from a preparatory high school outside this State, while a dependent of a parent or guardian who is a legal resident of this State and has custody of the dependent~~, and these~~. These students must also meet the requirements of subsection (B) and be eligible for in-state tuition and fees as determined pursuant to Chapter 112 of Title 59 and applicable regulations. In addition, beginning with the 1998-99 school year for those students who graduate from high school on or after May 1998 the student must have graduated from high school with a minimum of a 3.0 cumulative grade average on a 4.0 scale and have scored 1000 or better on the Scholastic Aptitude Test (SAT) or have the equivalent ACT score, 1050 or better, beginning with school year 2000-2001, and 1100 or better, beginning with school year 2002-2003; provided that, if the student is to attend such a public or independent two-year college or university in this State, including a technical college, the SAT requirement does not apply. If a student chooses to attend such a public or independent institution of this State and does not make the required SAT score or the required high school grade point average, as applicable, the student may earn a LIFE Scholarship after his freshman year if he meets the grade point average and semester credit hour requirements of subsection (B)."

SECTION 17. A. Section 59-149-10(B)(2) of the 1976 Code is amended to read:

"(2) a public or independent bachelor's level institution chartered before 1962 whose major campus and headquarters are located within South Carolina; or an independent bachelor's level institution which ~~has attained 501(c)(3) tax status and~~ is accredited by the Southern Association of Colleges and Secondary Schools or the New England Association of Colleges and Schools; or a public or independent two-year institution which has attained 501(c)(3) tax status. Institutions whose sole purpose is religious or theological training, or the granting of professional degrees do not meet the definition of 'public or independent institution' for purposes of this chapter."
B. The amendments to Section 59-149-10(B)(2) as contained in this section apply only to institutions that meet the criteria contained therein as of the effective date of this subsection.

SECTION 18. Section 59-149-50(B) of the 1976 Code is amended to read:

"(B) Students receiving a LIFE Scholarship to retain it and students currently enrolled in an eligible institution to receive such a scholarship must earn a 3.0 cumulative grade point average on a 4.0 scale ~~each year~~ and earn at least thirty credit hours each year for the maximum of semesters permitted at that institution by Section 59-149-60. The cumulative grade point average calculation, for purposes of LIFE scholarship eligibility, must be inclusive of the student's grade point average at all public or independent institutions, as defined in Section 59-149-10(B), attended by the student."

SECTION 19. Chapter 127, Title 59 of the 1976 Code is amended by adding:

"Section 59-127-470. There is established a committee to study the feasibility and need for a School of Law at the South Carolina State University in Orangeburg. This committee shall consist of nine members as follows:

(1) three to be appointed by the Senate Pro Tempore;

(2) three to be appointed by the Speaker of the House

(3) three to be appointed by the Legislative Black Caucus.

These members are to be appointed no later than July 1,2004. The senior member of the Legislative Black Caucus is to call the first meeting of the committee no later than July 15, 2004, and is to serve as chairman until such time as the committee elects a chairman. This committee is to produce a report to be provided to the members of the General Assembly and the Governor no later than December 31, 2004. The report is to address the following:

(1) feasibility of having a law school at South Carolina State University;

(2) need for additional attorneys in the State of South Carolina;

(3) cost of implementation; and

(4) impact to the economy."

SECTION 20. No provision of this act shall be construed to appropriate funds. The intent of the General Assembly is to authorize bonds only according to the terms of this act.

SECTION 21. 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 act, 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 22. This act takes effect upon approval by the Governor. /

Amend title to conform.

/s/ Sen. Hugh K. Leatherman       /s/ Rep. Robert W. Harrell, Jr.
/s/ Sen. Phil P. Leventis         /s/ Rep. James G. McGee III
/s/ Sen. William H. O'Dell        /s/ Rep. James A. Battle, Jr.
On Part of the Senate.            On Part of the House.

The question was the adoption of the Report of the Committee of Free Conference.

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

Ayes 40; Nays 5

AYES

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

Total--40

NAYS

Giese                     Gregory                   Kuhn
Ryberg                    Sheheen

Total--5

*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 necessary two-thirds vote having been received, the Report of the Committee of Free Conference was adopted, and a message was sent to the House accordingly.

Senator ELLIOTT spoke on the Report of the Committee of Free Conference.

Remarks by Senator ELLIOTT

Ladies and gentlemen of the Senate, my remarks will be brief.

I want to thank my colleagues in the Senate. Over the years, you have helped a lot of areas throughout South Carolina and the Senator from Florence and I appreciate your consideration. As we look at South Carolina, the strength of this State is represented by the sum total of the economic strength of individual communities throughout the State and its individual industries collectively. I recall three years ago when the Senator from Pickens stood at this podium and stated that his company and the textile industry were suffering greatly in South Carolina. I also recall his passionate plea regarding the difficulty that particular industry faced in this State. I asked him if he knew of anything we could do in this Senate to assist his company and other textile industries in South Carolina. He could not think of anything at the moment, and I asked that if and when he did think of something we could do to help, he bring that report back to the Senate so we could assist. With the outsourcing of jobs, there really is very little any of us can do. We do regret the faltering of that industry in South Carolina.

Let me say that in order to help any of these industries -- tourism, manufacturing, or any of the others in South Carolina -- is to help all of us here in South Carolina. You will recall how the tourism industry desperately needed roads in Horry County. At the time, there was no help from the State. Horry County stepped up to the plate alone and committed $680 million to build two highways. I do not know of any other region in our State that has made that kind of commitment to safeguard its industry. Horry County is primarily a tourism county, and a lot of the neighboring counties in the Pee Dee region also depend upon the tourism jobs created in Horry County for their livelihood. We are delighted to be able to assist our neighbor counties in this regard. I recall a few years back when the cry went out from some of the Senators from the upstate in an effort to help locate the BMW plant in South Carolina. Those of us from other counties did not back up -- we stood up to the plate to help. I also recall the move we made for Mack Trucks to be located in Fairfield County. I recall when we were asked to put about $10 million into Richland Memorial Hospital to assist some 12 years ago. We as a body have always stood ready to help across the State.

If you will look across South Carolina, you will see that we have made those investments. There is not a Senator in this building today who will not tell you on the stump that we are going to talk about creating jobs and enhancing the state's economy. That's what we are about in many areas, including enhancing education. But let me tell you further that in the lower Pee Dee region we have the lowest employment rate in the State. It is in the double digits and has been so almost constantly for the past few years. We have the lowest per capita income and the lowest life expectancy in the State. The only source of income for a lot of the counties in the Pee Dee region of our State is the tourism industry. Approximately 240,000 people go to work every day in the tourism industry. This industry generates some $14.7 billion annually in South Carolina. Just from Horry County alone, we have $121 million generated in State taxes from the tourism industry. It is third in South Carolina as a private capital investment, with $461 million in payroll dollars from Horry County going to those several lower Pee Dee area counties. There are people driving more than 1.5 hours each day into Horry County because it is the only source of employment they can find.

Years ago in the lower part of the State, rice was the king. Eventually, rice faltered. Then cotton was king in this region. It also faltered, and tobacco became king. However, tobacco's quota has been cut more than 50% in the last four years. There is no king in the lower Pee Dee area today, folks. Unless we can make the transition from agri-business to tourism to manufacturing or to something else, we will have a very sad state of affairs in this region of our State, including the vast rural areas of my home county of Horry. Therefore, tourism is definitely not a bad word. I hope our Senate will recognize that tourism is more than a bathing suit, a pair of sunglasses, a set of golf clubs, a stroll along the beach or a walk in the mountains of our beloved State. Tourism is an area in which 240,000 citizens each day go to work in order to feed their families and pay their bills. If you came to this Senate and asked any of us in the tourism industry for help in your area, we would help -- whether it was for Michelin in the upstate, the Hunley in Charleston, or any other need in another region of South Carolina. Tourism is leading the way for South Carolina to regain our economic strength. I hope you will recognize that tourism is an essential part of this state's economy, and this Bill gives us just a few grains of corn for the goose laying the golden egg in helping all of South Carolina.

Let me close by saying thank you to my colleagues.

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

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

ORDERED ENROLLED FOR RATIFICATION

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

H. 4415 (Word version) -- Reps. J. Brown, Bales, Cotty, Harrison, Howard, Lourie, J.H. Neal, Quinn, Rutherford, Scott and J.E. Smith: A BILL TO AMEND SECTION 59-53-1710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE MIDLANDS TECHNICAL COLLEGE COMMISSION, SO AS TO REMOVE THE TERM LIMITATION FOR THE MEMBERS OF THE COMMISSION.

THIRD READING BILLS

The following Joint Resolutions were read the third time and ordered sent to the House of Representatives:

S. 799 (Word version) -- Senator Thomas: A JOINT RESOLUTION TO PROVIDE THAT FORK SHOALS ROAD IN GREENVILLE AT ITS CONJUNCTION WITH THE DONALDSON CENTER IS NAMED THE "JAMES R. AND AIDA HATLEY MEMORIAL HIGHWAY" AND TO FURTHER PROVIDE THAT THE DEPARTMENT OF TRANSPORTATION IS DIRECTED TO PLACE APPROPRIATE SIGNS ON FORK SHOALS ROAD IN GREENVILLE AT ITS CONJUNCTION WITH THE DONALDSON CENTER THAT READ: "JAMES R. AND AIDA HATLEY MEMORIAL HIGHWAY".

S. 1027 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO STANDARDS FOR LICENSING FREESTANDING OR MOBILE TECHNOLOGY, DESIGNATED AS REGULATION DOCUMENT NUMBER 2859, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

S. 1028 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO MANUFACTURE, DISTRIBUTION AND SALE OF FROZEN DAIRY FOODS AND FROZEN DESSERTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2857, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

THIRD READING RECONSIDERED
NOTICE OF GENERAL AMENDMENTS ADDED
CARRIED OVER

H. 4709 (Word version) -- Reps. Bailey and Chellis: A BILL TO AMEND SECTION 12-21-4070, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT THAT FOR ANY BINGO LICENSE TO BE ISSUED THE ORGANIZATION, PROMOTER, OR INDIVIDUAL MUST HAVE BEEN DOMICILED IN THIS STATE FOR AT LEAST THREE YEARS OR, IN THE CASE OF AN ORGANIZATION, TO HAVE BEEN ACTIVE IN THIS STATE FOR AT LEAST THREE YEARS, SO AS TO REDUCE THE MINIMUM TIME FOR AN ORGANIZATION TO HAVE BEEN ACTIVE IN THIS STATE FROM AT LEAST THREE TO AT LEAST TWO YEARS.

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

There was no objection.

Senator BRANTON asked unanimous consent to add notice of general amendments to the Bill.

There was no objection.

The Bill was carried over with notice of general amendments.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 857 (Word version) -- Senator Knotts: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-117-110 SO AS TO PROVIDE THAT THE REMAINS OF ANY PERSON WHO DONATED HIS OR HER BODY TO THE UNIVERSITY OF SOUTH CAROLINA MEDICAL SCHOOL FOR SCIENTIFIC RESEARCH PURPOSES MUST BE INTERRED BY THE MEDICAL SCHOOL AT ITS EXPENSE IN A MARKED CEMETERY GRAVESITE IF THE REMAINS WERE BURIED OR IF THE REMAINS WERE CREMATED IN A MEMORIAL GARDEN CRYPT WHICH IDENTIFIES THE DECEDENT'S ASHES.

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

The Committee on Education proposed the following amendment (GJK\21038SD04), which was adopted:

Amend the bill, as and if amended, by striking Section 59-117-110 of the 1976 Code, as contained in SECTION 1, and inserting:

/ Section 59-117-110. The University of South Carolina School of Medicine may remove and relocate, at its expense, the cremains of a person, whose body was donated to and the cremains interred by the school of medicine from a grave or cemetery in the State to a memorial garden maintained at the school of medicine. Before the removal and relocation, the school of medicine shall notify the Department of Health and Environmental Control but is not required to obtain a permit as may otherwise be required by law or regulation. /

Renumber sections to conform.

Amend title to conform.

Senator J. VERNE SMITH 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 with notice of general amendments.

COMMITTEE AMENDMENT ADOPTED
READ THE SECOND TIME
WITH NOTICE OF GENERAL AMENDMENTS

S. 946 (Word version) -- Senator Patterson: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY DESIGNATING SECTIONS 59-53-1710 THROUGH 59-53-1760 AS SUBARTICLE 1 AND ENTITLED "GENERAL PROVISIONS" OF ARTICLE 20, CHAPTER 53, TITLE 59; AND BY ADDING SUBARTICLE 3 TO ARTICLE 20, CHAPTER 53, TITLE 59, RELATING TO THE MIDLANDS TECHNICAL COLLEGE, SO AS TO PROVIDE FOR THE POWERS AND DUTIES OF THE COMMISSION FOR PURPOSES OF THE DEVELOPMENT OF THE NORTHEAST CAMPUS, TO PROVIDE FOR THE CREATION OF THE MIDLANDS TECHNICAL COLLEGE ENTERPRISE CAMPUS AUTHORITY, AND TO PROVIDE FOR ITS POWERS AND DUTIES.

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

The Committee on Education proposed the following amendment (GJK\21039SD04), which was adopted:

Amend the bill, as and if amended, in Section 59-53-1725 of the 1976 Code, as contained in SECTION 3, by striking subsection (D) and inserting:

/ (D) In the fulfillment of the power contained in this section, the commission is authorized to sell, convey, lease, exchange, transfer, or give all or any part of its real and personal property and other assets constituting the Northeast Campus to the Midlands Technical College Enterprise Campus Authority upon such terms and conditions as the commission determines. The commission may sell, convey, lease, exchange, transfer, or give all or any part of its real and personal property and other assets constituting the Enterprise Campus, other than the Northeast Campus, to the Midlands Technical College Enterprise Campus Authority only upon approval by the State Board for Technical and Comprehensive Education. The commission may buy, purchase, or otherwise acquire and accept real and personal property and other assets from the Midlands Technical College Enterprise Campus Authority only in accordance with all regulations and general laws applicable to state-supported technical institutions in the acquisition and acceptance of real and personal property and other assets. /

Amend further, as and if amended, in Section 59-53-1783 of the 1976 Code, as contained in SECTION 4, by striking the last sentence of subsection (B) which begins on line 35, page 5.

Renumber sections to conform.

Amend title to conform.

Senator PATTERSON 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 with notice of general amendments.

SECOND READING BILLS

The following Bill and Joint Resolution, having been read the second time, were ordered placed on the Third Reading Calendar:

S. 1029 (Word version) -- Medical Affairs Committee: A JOINT RESOLUTION TO APPROVE REGULATIONS OF THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL, RELATING TO SOFT DRINK BOTTLING PLANTS, DESIGNATED AS REGULATION DOCUMENT NUMBER 2856, PURSUANT TO THE PROVISIONS OF ARTICLE 1, CHAPTER 23, TITLE 1 OF THE 1976 CODE.

Senator PEELER explained the Joint Resolution.

H. 4696 (Word version) -- Reps. Witherspoon, Bailey, Battle, Clemmons, Coates, Davenport, Duncan, Edge, Keegan, Leach, Limehouse, Loftis, McCraw, Owens and Rhoad: 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.

AMENDMENT PROPOSED, OBJECTION

H. 3762 (Word version) -- Rep. Harrison: A BILL TO AMEND SECTION 24-3-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS CONVICTED OF AN OFFENSE WHO ARE IN THE CUSTODY OF THE SOUTH CAROLINA DEPARTMENT OF CORRECTIONS, SO AS TO PROVIDE THAT A TRIAL JUDGE MAY CHOOSE TO NOT RECEIVE NOTIFICATION OF THE PENDING RELEASE OF CERTAIN INMATES ON WORK RELEASE.

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

Senator RICHARDSON proposed the following amendment (3762R001.SHR):

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

/ SECTION ____. Chapter 1, Title 24 of the 1976 Code is amended by adding:

"Section 24-1-290. The Director of the Department of Corrections may enter into contracts with private sector entities that allow for inmate labor to be provided for prison industry service work and export work that involves exportation of products. The use of this inmate labor may not result in the displacement of employed workers within the local region in which the work is being performed. Service work is defined as any work such as repair or replacement of original manufactured items, packaging, sorting, recycling, labeling, or similar work that is not original manufacturing. Export work is defined as any work which results in a product that is exported for sale outside the United States which is not involved in interstate commerce. The department may negotiate the wage to be paid for inmate labor provided under prison industry service work contracts, and these wages may be less than the prevailing wage for work of a similar nature in the private sector. However, the Director of the Department of Corrections shall deduct the following from the gross earnings of the inmates engaged in prison industry service work in addition to any other required deductions:

(1) if restitution to a particular victim or victims has been ordered by a court of appropriate jurisdiction, then twenty percent must be used to fulfill the restitution obligation;

(2) if restitution to a particular victim or victims has not been ordered by a court of appropriate jurisdiction, or if court-ordered restitution to a particular victim or victims has been satisfied, then twenty percent must be applied to the South Carolina Victim's Compensation Fund;

(3) ten percent must be retained by the Department of Corrections to defray the cost of the inmate's room and board."

SECTION ____. Chapter 1, Title 24 of the 1976 Code is amended by adding:

"Section 24-1-285. The Department of Corrections, in conjunction with the Materials Management Office of the Budget and Control Board, shall develop and maintain a marketing plan to attract private sector businesses for the employment of inmates through the prison industries program. The negotiation of new contracts and renewal of existing contracts with private sector entities must be consummated in accordance with procedures established jointly by the Materials Management Office of the Budget and Control Board and the Department of Corrections. Regulations must be promulgated to ensure equity and fairness in the recruiting of businesses whenever the wage to be paid is less than the federally established minimum wage."

SECTION ____. Chapter 13, Title 24 of the 1976 Code is amended to read:

"Section 24-13-225. Prisoners working in prison industry programs shall be given the maximum earned work credits allowed by law for such work."

SECTION ____. Section 9-1-1790(A) of the 1976 Code, as last amended by Act 25 of 2001, is further amended to read:

"(A) A retired member of the system who has been retired for at least ~~sixty~~ fifteen consecutive calendar days may return to employment covered by the system and earn up to fifty thousand dollars a fiscal year without affecting the monthly retirement allowance he is receiving from the system. If the retired member continues in service after having earned fifty thousand dollars in a fiscal year, his retirement allowance must be discontinued during his period of service in the remainder of the fiscal year. If the employment continues for at least forty-eight consecutive months, the provisions of Section 9-1-1590 apply. If a retired member of the system returns to employment covered by the system sooner than ~~sixty~~ fifteen consecutive calendar days after retirement, the member's retirement allowance is suspended while the member remains employed by the participating employer. If an employer fails to notify the system of the engagement of a retired member to perform services, the employer shall reimburse the system for all benefits wrongly paid to the retired member." /

Renumber sections to conform.

Amend title to conform.

Senator RICHARDSON explained the amendment.

Senator KNOTTS objected to further consideration of the Bill.

ADOPTED

H. 4849 (Word version) -- Reps. E.H. Pitts, Huggins, 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, 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, M.A. Pitts, Quinn, Rhoad, Rice, Richardson, Rivers, Rutherford, Sandifer, Scarborough, Scott, Simrill, Sinclair, Skelton, D.C. Smith, F.N. Smith, G.M. Smith, G.R. 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 DECLARE WEDNESDAY, MARCH 10, 2004, AS "SOUTH CAROLINA REALTOR DAY" IN ORDER TO RECOGNIZE AND HONOR THE MANY OUTSTANDING REALTORS AND REAL ESTATE PROFESSIONALS IN OUR STATE.

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

CARRIED OVER

S. 883 (Word version) -- Senators Fair, Ryberg, Waldrep, Short, Thomas, Mescher, Verdin and Cromer: A BILL TO AMEND SECTION 24-13-210 AND 24-13-230, BOTH AS AMENDED, RELATING TO GOOD BEHAVIOR, WORK, AND ACADEMIC CREDITS, SO AS TO REQUIRE THE DEPARTMENT OF CORRECTIONS TO DEVELOP POLICIES, PROCEDURES, AND GUIDELINES TO ALLOW CERTAIN PRISONERS TO RECEIVE A REDUCTION IN THEIR SENTENCES AND TO REVISE THE MAXIMUM AMOUNT OF TIME THAT MAY BE REDUCED FROM A SENTENCE; TO AMEND SECTION 24-27-200, RELATING TO THE FORFEITURE OF WORK, EDUCATION, OR GOOD CONDUCT CREDITS, SO AS TO PROVIDE THAT A REDUCTION IN THESE CREDITS MAY BE IMPLEMENTED PURSUANT TO AN ADMINISTRATIVE LAW JUDGE'S RECOMMENDATION, AND TO ALLOW A COURT TO LIMIT THE NUMBER OF LAWSUITS FILED AGAINST A PERSON, AGENCY, OR ENTITY UNDER CERTAIN CIRCUMSTANCES; AND TO AMEND SECTION 30-4-40, AS AMENDED, RELATING TO MATTERS EXEMPT FROM DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, SO AS TO PROVIDE THAT CERTAIN ARCHITECTURAL PLANS, DRAWINGS, OR SCHEMATICS OR LAW ENFORCEMENT POLICIES WHOSE DISCLOSURE WOULD REASONABLY BE USED TO FACILITATE AN ESCAPE FROM LAWFUL CUSTODY MAY BE EXEMPT FROM DISCLOSURE.

On motion of Senator FAIR, with unanimous consent, the Bill was carried over, not to be taken up for consideration before Tuesday, March 16, 2004.

H. 3137 (Word version) -- Reps. Sinclair, Littlejohn, W.D. Smith, Weeks, J.E. Smith, Edge and McLeod: A BILL TO AMEND SECTION 14-23-1040, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO QUALIFICATIONS FOR A JUDGE OF PROBATE, SO AS TO CHANGE THE QUALIFICATIONS FOR THIS OFFICE.

Senator BRANTON spoke on the Bill.

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

AMENDED, CARRIED OVER

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.

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

Senator KNOTTS proposed the following amendment (GJK\20743SD03), which was carried over:

Amend the bill, as and if amended, by adding a new SECTION to be appropriately numbered to read:

/SECTION _____. (A) Section 61-4-520 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding an appropriately numbered item at the end to read:

"( ) Before the issuance of a new license or permit, the applicant provides certification from the municipality or county in which it is located that the proposed place of business of the applicant complies with all zoning and land use ordinances and regulations. Applicants are not required to provide certification upon renewal of a license or permit."

(B) Section 61-6-110 of the 1976 Code, as added by Act 415 of 1996, is amended by adding an appropriately numbered item at the end to read:

"( ) does not provide certification from the municipality or county in which it is located that the proposed place of business of the applicant complies with all zoning and land use ordinances and regulations before the issuance of a new license or permit. Applicants are not required to provide certification upon renewal of a license or permit."

(C) Section 61-6-1820 of the 1976 Code, as last amended by Act 89 of 2001, is further amended by adding an appropriately numbered item at the end to read:

(D) Notwithstanding the general effect date of this act, this section takes effect on the first day of the third month after approval by the Governor. /

Renumber sections to conform.

Amend title to conform.

Senator KNOTTS explained the amendment.

On motion of Senator KNOTTS, the amendment was carried over.

Senator RITCHIE proposed the following amendment (JUD3223.020), which was adopted:

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

/ SECTION ___. Section 61-6-2010(C)(1) of the 1976 Code is amended to read:

"(C)(1) Permits authorized by this section may be issued only in those counties or municipalities where a majority of the qualified electors voting in a referendum vote in favor of the issuance of the permits. The county or municipal election commission, as the case may be, shall conduct a referendum upon petition of at least ten percent but not more than seven thousand five hundred qualified electors of the county or municipality, as the case may be. The petition form must be submitted to the election commission not less than one hundred twenty days before the date of the referendum. The names on the petition must be on the petition form provided to county election officials by the State Election Commission. The names on the petition must be certified by the election commission within sixty days after receiving the petition form. The referendum must be conducted at the next general election. The election commission shall cause a notice to be published in a newspaper circulated in the county or municipality, as the case may be, at least seven days before the referendum. The state election laws shall apply to the referendum, mutatis mutandis. The election commission shall publish the results of the referendum and certify them to the South Carolina Department of Revenue. The question on the ballot shall be one of the following:

(a) 'Shall the South Carolina Department of Revenue be authorized to issue temporary permits in this (county) (municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments otherwise authorized to be licensed for consumption-on-premises sales?' or

(b) 'Shall the South Carolina Department of Revenue be authorized to issue temporary permits in this (county) (municipality) for a period not to exceed twenty-four hours to allow the possession, sale, and consumption of alcoholic liquors in sealed containers of two ounces or less to bona fide nonprofit organizations and business establishments authorized to be licensed for consumption-on-premises sales and to allow the sale of beer and wine at permitted off-premises locations without regard to the days or hours of sales?' or

(c) in the case of a county or municipality where temporary permits are authorized to be issued pursuant to Section 61-6-2010 as of June 21, 1993, the question may be 'Shall the Department of Revenue be authorized to issue temporary permits in this (county) (municipality) for a period not to exceed twenty-four hours to allow the sale of beer and wine at permitted off-premises locations without regard to the days or hours of sales?' " /

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Senator RITCHIE proposed the following amendment (JUD3223.016), which was adopted:

Amend the bill, as and if amended, by striking Section 61-4-520(9), as contained in SECTION 1, and Section 61-6-180(B), as contained in SECTION 2, from the bill in their entirety.

Renumber sections to conform.

Amend title to conform.

Senator RITCHIE explained the amendment.

The amendment was adopted.

Senator LEATHERMAN proposed the following amendment (3223R001.HKL), which was adopted:

Amend the bill, as and if amended, by adding an appropriately numbered new SECTION:

/ SECTION___. Article 7, Chapter 21, Title 12 of the 1976 Code is amended by adding:

"Section 12-21-1085. Except as provided in Section 12-21-1035 and Sections 12-21-1320 to 12-21-1350, the taxes provided for in this article are in lieu of all other taxes and licenses on beer and wine of the State, the county, or the municipality, except the sales and use tax, or Sections 6-1-700 through 6-1-770, and include licenses for its delivery by the wholesaler." /

Renumber sections to conform.

Amend title to conform.

Senator LEATHERMAN explained the amendment.

The amendment was adopted.

On motion of Senator RITCHIE, the Bill was carried over, as amended.

LOCAL APPOINTMENTS
Confirmations

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

Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2004, and to expire March 15, 2006

Elizabeth Cromer Epps, 2119 Dalloz Road, Columbia, S.C. 29204

Reappointment, Richland County Board of Voter Registration, with term to commence March 15, 2004, and to expire March 15, 2006

Lillian A. McBride, 545 Trader Mill Rd., Columbia, S.C. 29223

MOTION ADOPTED

On motion of Senator MESCHER, with unanimous consent, the Senate stood adjourned out of respect to the memory of Mr. James B. Ware of Moncks Corner, S.C.

ADJOURNMENT

At 1:35 P.M., on motion of Senator McCONNELL, the Senate adjourned to meet tomorrow at 2:00 P.M.

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